The Hindu Business Line : PSU stocks outperform other indices

Kolkata April 3 Today's recovery on Dalal Street saw the PSU pack outperforming other sectoral indices. The 42-stock BSE PSU index gained 2.16 per cent, slightly better than 2.02 per cent gain posted by the BSE IT index.

According to Mr Arun Kejriwal, a market analyst, it was largely a pull-back, and a weak one at that. The bank counters reacted positively after getting a thrashing yesterday on RBI's dear money policy. In percentage terms, Oriental Bank and Bank of India were the top gainers (up 5.81 per cent and 5.58 per cent respectively).

Though PSU banks helped the index to move up, BEML and Shipping Corporation were the two notable losers (down 5.15 per cent and 6 per cent respectively). According to market sources, a proposed follow-through equity issue (49 lakh shares at a premium to be decided via book-building) by BEML has caused negative sentiment for the stock.

This is despite the fact that the company, according to the provisional results, recorded an all-time high turnover of Rs 2,600 crore and a 10 per cent jump in PAT in 2006-07 over that in the previous financial year.

Shipping Corporation languished as it is going ex-dividend (interim dividend of Rs 8.5 or 85 per cent for 2006-07 and the record date is tomorrow).

On the other hand, BHEL finished 4.66 per cent up as it declared provisional results today with a better-than-expected improvement in the net profit. The 2006-07earning per share shot up to Rs 97.4 from Rs 68.6 in 2005-06.

Other notable PSU gainers were Balmer Lawrie, Dredging Corporation, SAIL and GAIL.