Tata Power gains on Dabhol Power push

DALAL STREET SPIKES

Tata Power was electrified yesterday gaining 3.86 per cent and was the among the big gainers among the Sensex stocks.

The stock touched an intra-day high of Rs 363 before closing at Rs 359.55 following reports that Tata Power along with GAIL and British Petroleum Global Investments would jointly bid for Dabhol Power Company.

The counter witnessed huge volumes of 10.04 lakh shares at the BSE. Market analysts said today's gain in Tata Power was purely news-driven and it needs to be seen how the company plans to fund this acquisition and at what price they will buy Dabhol Power Company.

Sources said, the counter is witnessing buying interest as the valuation has turned attractive after the recent fall in the stock price.

The stock from its high of Rs 410 two weeks ago has now come down to Rs 359 level. The company at the beginning of the month had announced its keen interest to develop a state-of-the-art generating plant of 1,000 mw in Uttar Pradesh.