Public sector stocks in refinery, power and telecom remained subdued on the Bombay Stock Exchange (BSE) Friday, in the wake of the postponement of the meeting of the Cabinet Committee on Disinvestment (CCD).
The committee was scheduled to meet today to consider the divestment of government's stake in Maruti Udyog. There were expectations that a decision may be taken on other public sector units in the refinery and telecom sectors.
The committee meeting is put off till the return of Union communications minister Ram Vilas Paswan from his European tour.
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As a result of soaring expectations on disinvestment, blue chip public sector stocks had attracted substantial interest in the last few trading sessions. Ramesh Damani, a Mumbai-based broker, said, "Each time there are talks of disinvestment, these shares surge... but, only to disappointed later."
Another industry analyst say, "There was a talk that the government is serious this time as it expects to bail out the economy which has slowed down in the current fiscal. As a result, public sector stocks were in the limelight in the last few days. But with the meeting being postponed, the market is upset now and these stocks could dip further in the coming days."
Refinery stocks such as Hindustan Petroleum, after rising from Rs 100.65 on October 24 to Rs 126.50 on November 6, dipped today to settle at Rs 118.15. Indian Oil Corporation climbed from Rs 117 (October 24) to Rs 136.90 (November 9) before slipping to 127.70.
Similarly, telecom major MTNL's scrip zoomed from Rs 109.70 on September 29 to Rs 171.40 in intra-day trade today, before settling at Rs 170.35. The scrip closed weak (at 166.65) on the National Stock Exchange today.