PSU heavyweights dominate four of five gainers in Nifty today

The shares of PSU (public sector undertaking) companies have been surging the most, as four out of the top five gainers are state-owned index heavyweights, with each of them hitting a new 52-week high today.

The surge in these PSU stocks is due to multiple triggers, for that instance, the major drive is from REC (Rural Electrification Company), as the company gets shareholders’ approval to raise up to Rs 85,000 crore through bonds and debentures.

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Individually, Power Finance Corporation (PFC) shares surged most by around 7 per cent to Rs 188.9 per share, followed by NTPC, Coal India, and IOC each gained over 4 per cent to Rs 133.65, Rs 176.3, Rs 123.9 per share, respectively on the NSE intraday trade on Tuesday, in an otherwise weak market. Each of these stocks has hit its 52-week high on the NSE during Tuesday’s trading session.

NTPC surged mainly on the news that the company has won 1.9 GW solar projects under Central Public Sector Undertaking (CPSU) scheme.

Similarly, Other state-owned Nifty stocks such as ONGC and BPCL have also joined the gaining party with the other four stocks, both are up over 2 per cent on the NSE. In this, the former hit a new 52-week high of Rs 143.6 per share, while the latter touched a day’s high of Rs 430 per share on the NSE.

While the oil market companies such as IOC and BPCL have been surging on the higher crude oil and increase in Diesel price for the 4th straight day on Monday.

At 02:20 pm, the S&P BSE CPSE (Central Public Sector Enterprises) Index was up near 3 per cent, as compared to a 1.6 per cent fall in the benchmark Sensex. The CPSE index was trading at its highest level since June 2018.

The S&P CPSE index is designed to measure the performance of Central Public Sector Enterprises (CPSEs) listed at BSE. CPSEs are companies in which 51 per cent or more of the direct holding belongs to the Central Government of India.