Shares of Bharat Petroleum Corporation (BPCL) surged 10 per cent to Rs 480.80 in intraday trade on Tuesday amid the report that global oil majors are showing interest in buying a stake in the state-owned oil marketing company. The stock has rallied over 29 per cent in the last five sessions from Rs 377.7 on July 14.
On Tuesday, BPCL shares opened higher at Rs 439.90 apiece against previous closing price of Rs 437.10 on the Bombay Stock Exchange (BSE). The stock gained as much as 9.99 per cent to hit an intraday high of Rs 480.80. Paring some of early gains, the stock settled 6.09 per cent higher at Rs 463.70.
On the volume front, there was surge in volume trade as 17.51 lakh shares changed hands over the counter as compared to two-week average volume of 5.45 lakh shares.
In a similar fashion, share price of BPCL ended at Rs 461.05 apiece, up 5.43 per cent, on the National Stock Exchange (NSE). During the day's trade, the stock hit an intraday high and low of Rs 481 and Rs 435.40, respectively.
BPCL stock has gained 90.79 per cent as compared to its 52-week low of Rs 252 touched on March 24, 2020. The stock is quoting 12.53 per cent lower than 52-week high of Rs 549.70 touched on November 21, 2019.
Meanwhile, the BSE oil & gas index jumped 2.71 per cent to settle at 13,686.70, led by gains strong gains in BPCL, which was also the top index gainer. Among others, Reliance Industries, ONGC, Hindustan Petroleum, Indian Oil Corporation gained over 2 per cent each.
There are reports that Saudi Aramco, Rosneft, Exxon Mobil, Abu Dhabi National Oil Co (ADNOC) and one Indian private player will be participating in the bidding process for BPCL. The central government had in November last year decided to offload its 52.98 per cent shares in BPCL.
On March 7, the government had invited initial bids for sale of its entire stake in BPCL, asking bidders to submit their expressions of interest (EoI) by July 31. The interested parties need to have a net worth of $10 billion to qualify as a bidder.
Meanwhile, Indian benchmark indices, Sensex and Nifty, closed higher on Tuesday amid positive global trends as hopes of COVID-19 vaccine and economic stilmulus kept investors upbeat. Extending gains for the fifth straight session, Sensex ended 511 points higher at 37,930 and Nifty closed 140 points higher at 11,162.