PSU stocks in upbeat mood: ITI, BHEL, Coal India rally up to 20%

Shares of public sector undertaking (PSU) companies rallied up to 20 per cent on Thursday amid positive developments in coal, power, and telecom sectors. The S&P BSE CPSE Index, which measures the performance of Central Public Sector Enterprises (CPSEs) listed on the bourses, rose 2.36 per cent to 991 and the S&P BSE PSU index gained index 2.71 per cent to 4,811.82.

Shares of state-owned Coal India surged nearly 8 percent on the bourses after Prime Minister Narendra Modi launched the auction process for 41 coal blocks for commercial mining. Coal India share price rallied as much as 7.83 per cent to hit an intraday high of Rs 139.65 apiece, against previous closing price of Rs 129.50, on the Bombay Stock Exchange (BSE). On the volume front, over 24 lakh shares changed hands over the counter as compared to two-week average volume of 6.64 lakh shares at the time of writing this report. Total market cap of Coal India stood at Rs 85,041.51 crore.

Also Read: PM Modi launches auction of 41 coal mines, says India will turn COVID-19 crisis into opportunity

Bharat Heavy Electricals Limited (BHEL) shares jumped over 16 per cent to Rs 31.85 in intraday trade amid spurt in volume trade after Vedanta Resources Chairman Anil Agarwal said that state-controlled company was capable of producing the best power plants in the world if it is given greater autonomy.

"Most of the power plants in India are imported from China. BHEL, a PSU, is very capable to produce the best power plants in the world. If given full autonomy and either corporatised or privatised, without laying off any personnel, it can do wonders for #atmanirbharIndia," Anil Agarwal tweeted.

Shares of Oil India, Gail and Power Grid Corporation of India rose up to 4 per cent after the Central government told the Supreme Court that it has decided to withdraw 96 per cent of the Rs 4 lakh crore adjusted gross revenue (AGR) related dues pending against various PSUs. Amongst PSUs, Oil India's dues stand at Rs 48,489 crore, Power Grid Corporation of India at Rs 22,062.65 crore and GAIL at Rs 1.72 lakh crore.

Also Read: Rakesh Jhunjhunwala made Rs 42 crore with this stock in three months

Boosted by the development, shares of Oil India gained 2.89 per cent to Rs 99.70, Gail by 2.69 per cent to Rs 98.90 and Power Grid shares climbed 3.67 per cent to Rs 165.35.

Shares of Indian Telephone Industries Limited (ITI), a state-owned telecommunications equipment, hit an upper circuit of 20 per cent amid reports that the Department of Telecom (DoT) has asked Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam (MTNL) to not use Chinese equipment for 4G upgradation.

Among other PSU stocks, MSTC shares jumped 10 per cent on the BSE. Besides, Hindustan Copper, BEML, MMTC, Bharat Electronics, Ircon International, NLC India, Engineers India, STC India, NBCC, Mishra Dhatu Nigam and Container Corporation of India rose in the range of 4 per cent to 8 per cent on the BSE.