The Hindu Business Line : PSU stocks in limelight

AFTER remaining depressed for a few days due to the Supreme Court order on HPCL and BPCL disinvestment, the stocks of government-owned companies are back on the buy-list of most of the investors over the last few trading session.

The revised interest is mainly due to a clarification made to foreign investors at a meeting held early this week in Hong Kong by the Commerce Minister, Mr Arun Jaitley.

According to market players, Mr Jaitley had told foreign investors that the Supreme Court ruling is limited to HPCL and BPCL and privatisation of other companies is on track.

Interest in the PSU stock is also due to reports that the Government is planning to file a review petition on the Supreme Court ruling. A meeting of the CCD is scheduled on October 3 to discuss the course of action on the HPCL and BPCL.

The interest in PSU stock is seen from the rise in the BSE PSU Index by 8 per cent since Monday. In comparison, the BSE Sensex has gained 3.5 per cent, BSE 200 index by 5 per cent and BSE 500 index by 4.85 per cent. Except for BSE PSU Index, all other indices closed lower today.

According to Mr Vipul P. Dalal, COO (Institutional Equity), IL&FS Investsmart, "There has been uncertainty in the PSU stocks due to Supreme Court ruling, but the fundamentals of most of the PSU are very good".

Some of the PSU stocks that had seen renewed interest include - ONGC, BPCL, HPCL, SAIL, RCF, EIL and several PSU banks.

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