PSU stocks in focus; Hindustan Copper, MMTC rally up to 20%

Shares of Oil and Natural Gas Corporation (ONGC) and Oil India were up 6 per cent and 5 per cent, respectively, today.
Shares of public sector undertaking (PSU) companies were in focus with the S&P BSE PSU index gaining 2 per cent on Monday, thus surging 17 per cent in the past one month on value buying. In comparison, the S&P BSE Sensex was up 6 per cent during the same period.

Hindustan Copper (HCL) soared 20 per cent to Rs 53.20 in intra-day today, on the back of heavy volumes. The trading volumes on the counter jumped over 10-fold with a combined 20.3 million equity shares changing hands on the NSE and BSE till 02:54 pm.

HCL is the only integrated copper producer in India with captive mines, smelter, refinery, and rod manufacturing facilities. It has access to large copper ore reserves. ICRA in October reaffirmed the credit ratings of term loan and fund-based facilities of Hindustan Copper with a stable outlook. The rating agency in rationale said that the stable outlook considers the buoyant trend in international copper prices in the recent months, which along with a decline in treatment and refining charges (Tc/Rc), would benefit integrated copper manufacturers such as HCL.

MMTC rallied 19 per cent to Rs 26.20 on the back of a four-fold jumped in trading volumes. In the past one month, the stock zoomed 50 per cent.

Indian Bank moved higher by 11 per cent to Rs 95.80, after the state-owned lender said that it made requisite accounting entries setting off accumulated losses of Rs 18,975.53 crore from the share premium account of the bank. In the past one week, the market price of Indian Bank risen 29 per cent after the bank raised Rs 1,048 crore by issuing bonds on a private placement basis. The bank has successfully raised tier I capital fund through private placement of Basel III compliant additional tier I perpetual bonds aggregating to Rs 1,048 crore, Indian Bank said in a regulatory filing.

Shares of Oil and Natural Gas Corporation (ONGC) and Oil India were up 6 per cent and 5 per cent, respectively, today, thus continuing their upward movement on rising crude oil prices.

Crude oil prices traded higher on demand growth prospects as vaccine rollouts begin in the UK while the US started vaccination campaign this week. The approval of vaccines from the UK, Canada and emergency use from the US has raised optimism for fuel demand recovery, Tapan Patel- Senior Analyst (Commodities), HDFC securities said. Meanwhile, Morgan Stanley has upgraded the ONGC stock, citing a higher probability of recovery in average selling prices and an improved outlook on domestic production.

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