MUMBAI: Shares of Dredging Corporation of India hit an upper circuit (10 percent) of Rs 383.15 on Friday as the Cabinet on Thursday approved selling entire government stake in the company to four ports on the east as well as the west coast of the country. Another public sector company, NHPC too moved up by close to 5 per cent to Rs 26.30 on the news of board meet to consider buy back of shares.
The overall sentiment was positive for public sector that is seeing slow and small pockets of disinvestment plans chugging along. Benchmark indices, however, fell marginally on fears over the overnight Federal Reserve’s hawkish stance, though it did not raise rates.
The BSE Sensex closed down 0.22 per cent or 79 points to close at 35,158, and NSE Nifty by 13.20 points at 10,585. Among the Sensex stocks, Bharti Airtel fell Rs7.50 a share to Rs 298 on the news of ratings watch.
“With the earnings season in its last leg, focus would return to the other factors viz. macroeconomic scenario and global markets.
After the turmoil in financial space, we feel banking and NBFCs hold the key for further upward movement and boost market sentiment else profit taking would resume. We suggest keeping limited exposure and waiting for further clarity,” said Jayant Manglik, president, Religare Broking.
Crude prices trending down and dipping below $70 a barrel brought cheer to the refining stocks as Indian Oil, Bharat Petroleum and Hindustan Petroleum recorded from two to four per cent gains.
Any stability in crude prices at current levels would be positive not only for OMC stocks, but to the overall market sentiment which was hit hard when Indian currency started depreciating and crude price started hitting new highs in the last two months.