BHEL shares spurt on hopes for NTPC orders

Shares of BHEL rallied by as much as 14 per cent on the bourses on Friday, amid expectations that the company would get orders from NTPC after resolution of a long-running legal dispute of the PSU power generation major.

However, the shares of the state-run power equipment maker BHEL pared almost half of the intra-day gains and settled 6.53 per cent higher at Rs 303.45 on the BSE.

On the NSE, the scrip closed at Rs 303, up 6.48 per cent from the previous close.

The stock was the top gainer on both the benchmark indices, the BSE Sensex and the NSE's Nifty.

"Order inflow expectation and rally in power stocks may have triggered a strong buying or short covering in BHEL," Milan Bavishi Research Head Inventure Growth and Securities said.

Shares of NTPC also rallied 2.32 per cent to end the trade at Rs 187.65.

The Supreme Court on Thursday quashed the Delhi High Court verdict that allowed Italian boiler manufacturer Ansaldo Caldaie Boilers (ACB) to bid for providing super-critical power equipment to state-run power major NTPC.

A bench of justices Altamas Kabir and J Chelameswar allowed the petition filed by NTPC and upheld the PSU's decision disqualifying the Italian manufacturer and its Indian partner Gammon India from participating in the around Rs 16,000-crore tender for power equipments.

The BSE barometer Sensex closed the day at 18,289.35, up 135.36 points.