Market Movers: IRCTC falls 4% on reports of govt selling stake; power stocks welcome summer in style
CNBC-TV18 reported that the government may raise Rs 3,000 crore by selling a 3.5% stake in the company. The government owns 67.40% of the railway ticket master. According to this report, the pricing of the sale could be around Rs 1,070 per share.
Apparently, the government has already appointed Axis Securities, Citi, Goldman Sachs and JM Financial as merchant bankers for the issue.
The stock ended the day at Rs 792.20, down 3.73%.
Power-ful summer
The power sector has been one of the most outstanding sectors as far as market performance in the last few weeks is concerned. And, you can thank the sizzling summer that has already broken a century-old record for that.
S Ranganathan, Head of Research at LKP Securities, pointed out that power stocks have been in demand ahead of the surge in summer demand, as investors believe this will shore up earnings. Moreover, some business updates from the companies operating in the sector have also been positive.
On Wednesday, the trend continued. Tata Power extended gains by rising another 6%. Jaiprakash Power, Reliance Power, Adani Power and Power Grid also jumped up to 6%.
PLI Boost
CEAT, which makes tyres, on Wednesday said the company will be one of the beneficiaries of the Production Linked Incentive (PLI) Scheme for the automobile and auto component industry.
“The application filed by the company under the said Component Champion incentive scheme of the PLI Scheme for automobile and auto component industry (PLI – Auto) has been approved, subject to certain conditions being met by the company,” said the firm in a regulatory filing.
The stock rose about 3% to Rs 1,024 on BSE. A consensus of 21 analysts believes you should buy the stock. They have a median target of Rs 1,255 on the counter, with the highest estimate being at Rs 1,725 and the lowest at Rs 840.
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