Positives add up for BHEL

DALAL STREET SPIKES

Strong positive sentiment for the future helped propel BHEL to an all-time high of Rs 539.05 before closing on Rs 536.10, up by 3.89 per cent. More than 2.50 lakh shares were traded on the BSE.

The power equipment major saw hectic buying activity helping the counter hit an-all time high in intra-day trades. According to market sources, a number of domestic brokerages have given a 'buy' recommendation on the counter.

Analysts point out to a strong order book and expectations of new orders following the reforms in the power sector as the main reasons for the strong positive sentiment.

The company recently bagged major contracts aggregating Rs 2,700 crore from NTPC. The company is set to benefit from the recently enacted Electricity Bill.

Players say that the new Act will help BHEL improve its financials, as it receives a huge chunk of its revenues from SEBs, who will benefit directly from the Act.