Shares of Central Public Sector Enterprises (CPSEs) were on roll on Tuesday, with the S&P BSE CPSE index hitting a new high of 4,155.48 as it surged over 2 per cent on the BSE the intraday trade.
Rail Vikas Nigam (RVNL), Housing & Urban Development Corporation (Hudco), Cochin Shipyard, SJVN, Ircon International, Bharat Electronics (BEL), Bharat Dynamics (BDL), and NHPC rallied up to 15 per cent amid heavy volumes.
At 02:08 PM, the CPSE index, the top gainer among broader indices, was up 2.5 per cent as compared to 0.06 per cent rise in the S&P BSE Sensex. In the past one month, the index has rallied 12.6 per cent as against less than 1 per cent gain in the benchmark index. Further, in the past six months, the CPSE index has zoomed 68 per cent, as compared to the 12.3 per cent rise in the Sensex.
The S&P BSE CPSE index is designed to measure the performance of CPSEs listed on BSE. CPSEs are companies for which 51 per cent or more of the direct shareholding belongs to the Central Government of India.
The strong surge in state-owned stocks are in hopes that the Incumbent party may surpass its 2019 tally.
Based on Antique Stock Broking analysis of voter turnout data, the incumbent ruling party -- Bharatiya Janata Party (BJP) -- may improve its 2019 tally but fall short of the opinion polls' expectation of the NDA winning 370-410 seats. Analysis of voter turnout mapped against the winning margin suggests that BJP is better placed, according to the broking firm.
Among individual stocks, RVNL hit a new high of Rs 345.70, soaring 15 per cent on the back of nearly four-fold jump in average trading volumes after the company won an order worth Rs 148 crore.
The company said it has received Letter of Acceptance from SER HQ Electrical/South Eastern Railway for design, supply, erection, testing and Commissioning for upgradation of Electric traction system from 1 x 25 KV to 2 x 25 KV traction systems for Kharagpur (Excl.) - Bhadrak (Excl.) section of Kharagpur division of South Eastern Railway to meet 3000 MT loading target.
Shares of Hudco, meanwhile, also hit a new high of Rs 273.95, rallying 12 per cent in the intraday trade today. In the past one month, the stock of the state-owned financial institution has zoomed 40 per cent.
Hudco is the premier techno-financial institution that assists the Ministry of Housing and Urban Affairs (MoHUA) in scrutiny and inspection of sample projects / DPRs under Pradhan Mantri Awas Yojana (Urban) - Housing for All (PMAY-U) Mission prior to their consideration by the Ministry for sanction of central assistance.
Shares of Cochin Shipyard also surged 12 per cent to Rs 1,656.95 on the back of nearly two-fold jump in average trading volumes. In the past six trading days, it has zoomed 39 per cent after the company said it has bagged a large order from a European Client, for the design and construction of a Hybrid Service Operation Vessel (Hybrid SOV) with an option for two more such vessels. As per CSL's classification, orders in the Rs 500 crore to Rs 1,000 crore are termed as 'large' orders.
The defence shipbuilding segment continues to look promising on account of the ambitious acquisition plan of the Indian Navy and Indian Coast Guard which is quite encouraging for the Indian Shipbuilders and the entire ecosystem. A number of RFPs for various shipbuilding projects have been floated by the Ministry of Defence (MoD) during the last one year and some more are expected to come out in the near future, according to analysts.
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