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Maruti IPO push PSU stocks up
June 12, 2003 16:31 IST
PSU stocks were in the thick of the action today on the reckoning that a successful IPO from Maruti would reinfuse vigour in the Centre's disinvestment agenda. The current euphoria pressed the BSE PSU Index upwards 2.30% or 49.13 points to 2,188.95 in early afternoon trades. Over the last one-and-a-half months, the BSE PSU Index has risen 34.5% or 561.75 points from 1,627.20 on 25 April 2003. But the recent run in the sectoral index was largely out of the strong current in state-run banking stocks. A major issue for these stocks recently has been how the government will price returned equity by these banks. The government has yet to make a decision.
Today, there was buying in Hind Organic Chemicals (up 7.62% to Rs 24), RCF (up 6.14% to Rs 35.45), FACT (up 4.39% to Rs 33.30), Gail (up 5.76% to Rs 106.50), Sail (up 4.11% to Rs 13.94), Bharat Earth Movers (up 3.64% to Rs 83.90), Bongaigaon Refinery (up 4.04% to Rs 33.50), ITI (up 2.52% to Rs 22.35), National Fertilizers (up 3.40% to Rs 41.10) and ONGC (up 3.27% to Rs 482.55).
The major trigger has been the solid initial repsonse to the Maruti Udyog IPO, which opened today. However, some dealers feel that PSU stocks may not hold ground at higher levels.
Another possible reason for the uptrend in PSU stocks today is hope that huge dividend pay-outs for FY 2002-03 may be forthcoming from these companies. PSUs are traditionally known to be high dividend-yield paying companies.
Other PSU stocks that did well today were Nalco (up 1.66% to Rs 100.80), Indian Oil (up 2.18% to Rs 372.65), Hindustan Copper (up 2.92% to Rs 35.25), Engineers India (up 1.79% to Rs 296), IBP (up 1.34% to Rs 507), MTNL (up 1.17% to Rs 99.75) and Dredging Corporation (up 1.86% to Rs 320).
Source: www.capitalmarket.com
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