Shares of Bharat Heavy Electricals Ltd (BHEL) rose 25% in the first hour of opening session today, accompanied by a 7% rise in National Mineral Development Corporation (NMDC) shares after media reports suggested that the government may bring down its stake in the state-owned enterprises.
BHEL shares opened with a gain of 9.99% today and later touched the intraday high of Rs 55.65, at a 24.92% hike. Similarly, NMDC stock opened 5.63% higher and rose 7.29% to the day's high of Rs 109.65 on the BSE.
BHEL stock has risen nearly 29.87% returns in the last 2 days. The growth in BHEL share value is in-line with the 'Electric Equipment' sector which has gained 6.17%. NMDC stock also outperformed the 'Mining' sector by 1.55%.
The stake in BHEL may be pared in tranches to 26% from the current 63.17%. Additionally, 4-5 non-manufacturing units of BHEL are reportedly marked for sale to private players this fiscal.
The government has a divestment target of Rs 1.05 lakh crore for the current financial year FY20. The divestment proceeds exceeded the target of Rs 1 lakh crore and Rs 80,000 crore in FY19 and FY18, respectively.
By Rupa Burman Roy