PSU stocks in focus as Cabinet set to announce stake sale

Last Updated: Tue, Oct 18, 2016 12:12 hrs
Giant cranes are seen at the Hanjin Shipping container terminal at Incheon New Port in Incheon

PSU stocks are in focus as the Union Cabinet is set to make an announcement on stake sale in about twenty companies on Wednesday.

The list will contain both profit-making and loss-making PSUs. According to reports, the aim of these stake sales is to ensure that these firms are run professionally and to enhance the values so that the government can dilute larger stake, going forward.

It is very likely that the government will some stake in BEML, Container Corporation and SAIL, among others.

Out of the disinvestment target of around Rs 56,500 crore for the current financial year, the government has so far achieved just about 22,000 crore, through various modes, including a few buy-backs.

NHPC, the top gainer in the Nifty PSE index at present, is up 2.6%. REC, Engineers India and BHEL are trading higher by around 1.5%, SAIL and Nalco are up 1.4%, NMDC and GAIL India are gaining 1.2% each and Oil India is up 1%.

Power Finance Corporation, Container Corporation, Coal India, ONGC, IFCI and BPCL are up with modest gains, while NTPC, IOC, Hindustan Petroleum Corporation and Power Grid Corporation are up marginally. Bharat Electronics is little changed from its previous closing price.

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