Stocks of public sector petroleum companies surged on the Bombay Stock Exchange (BSE) today, after the disinvestment minister announced that a meeting of the disinvestment committee would be held early September.
After retreating recently, the scrips of two oil refiners, Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL), advanced today.
BPCL rose 1.26 per cent to Rs 285.60, while and HPCL gained 0.21 per cent to settle at Rs 279.75 on the BSE.
Dealers said a lot of buying by funds had taken place on both these counters over the last few weeks, on the back of their imminent divestment.
As per reports, while the petroleum ministry is not in favour of an early divestment of the two PSUs, the divestment ministry favours their divestment as soon as possible.
Expectations are now being built around a meeting of the Cabinet Committee on Disinvestment scheduled on Thursday, where a final decision is expected.
Market participants said divestment has been the main trigger for movements in the stocks of BPCL and HPCL so far.
Earlier, the Department of Disinvestment (DoD) proposed a strategic sale in both HPCL and BPCL. The government has a 51 per cent stake in HPCL, and a 66 per cent holding in BPCL.
The DoD proposes to invite initial bids for BPCL in the month of September 2002, and complete the sale before March 31, 2003.
In the case of HPCL, initial bids would be invited by the end of the calendar year, while financial bids would be invited by March 15, 2003.
Meanwhile, the two oil companies are expected to hike prices of petrol and diesel, following the rise in global crude oil prices. Concerns over US action in Iraq have pushed up global oil prices in recent weeks.
