Spotlight On Public Sector Stocks As BHEL, PFC and REC Hit Record High Levels

Analysts attribute this renewed investor sentiment in state-owned companies to enhanced capital expenditure which will benefit these companies.

Shares of public sector companies are on the rise. Bharat Heavy Electricals (BHEL), Power Finance Corporation (PFC) and REC rose to their record high levels today in a market that otherwise ended flat. Last week, Ircon International and Indian Railway Finance Corporation hit their 52-week high levels.

Analysts said many more PSU( Public Sector Undertakings) stocks will set records in the coming days as the cyclical trend is in their favour. They further observed that PSU stocks will deliver good returns as prices are likely to double in the short- to medium term. The renewed investor sentiment in state-owned companies is also attributed to enhanced capital expenditure which will benefit these companies.

BHEL rose 10 per cent 52-week high of Rs 82.25 on hectic buying today. The stock pared some of the gains to end the day at Rs 81.95.

BHEL in the year-to-date period has risen 35.12 per cent against a 16.20 per cent jump in BSE Capital Goods index and a 5.26 per cent gain in broader index Sensex.