PSU stocks gain on hopes of bagging orders from govt

Shares of public sector undertaking (PSUs) firms rose in intra-day trade on BSE in an otherwise weak market on Tuesday over expectations of bagging orders from the government. These included Bharat Electronics, Mishra Dhatu Nigam Ltd, Hindustan Aeronautics Ltd, Bharat Earth Movers Ltd and Bharat Dynamics.

HUDCO, HAL, SAIL India and Mishra Dhatu were the major gainers from the S&P BSE PSU index and were up in the range of 2 per cent to 8 per cent on BSE. S&P PSU index on BSE was trading higher at 5,071.71.

While Hindustan Aeronautics stock rose 4.6%, Mishra Dhatu Nigam was up 3.3%. Bharat Dynamics gained 0.8%, followed by Bharat Electronics that was up 0.7%.

Bharat Dynamics share has rallied 50% in the last one week after the company's net profit more-than-doubled to Rs 309.72 crore in the March quarter (Q4FY20) on the back of strong operational income.

Hindustan Aeronautics has clocked 35% gains over the last week's after the Ministry of Defence approved the purchase of weapons and equipment worth Rs 38,900 crore.

In May, the Narendra Modi government had raised foreign direct investment via the automatic route to 74% from 49% as part of defence sector reforms and to boost the government's Make in India campaign.

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