MTNL, HMT hit fresh 52-week highs; zoom up to 78% in two weeks

Shares of two state-owned companies, Mahanagar Telephone Nigam Limited (MTNL) and HMT rallied up to 17 per cent on the BSE in intra-day trade on Wednesday, hitting their respective fresh 52-week highs, amid heavy volumes. In the past two weeks, these stocks have zoomed up to 78 per cent, against less than 1 per cent gain in the S&P BSE Sensex.

MTNL’s stock surged 17 per cent to Rs 21.25 on the back of three-fold jumped in trading volumes. A combined 41 million equity shares of the telecom services provider changing hands on the counter on the NSE and BSE, till 01:06 pm.

In the past two weeks, the has stock soared 78 per cent from the level of Rs 11.92 on February 24, on reports that the Centre has identified real estate and land assets of state-owned telecom services provider to kick off the ambitious PSU asset monetisation programme.

The Economic Times said in a report, citing a senior official, mentioned in a report that MTNL’s assets identified for sale will be auctioned through the online e-bidding platform set up by MSTC. “Bidding for assets will take place through MSTC, this will be the first one,” the official said.

had identified assets including 36 acres in areas like Vasai Hill, Mulund and Simpholi in Mumbai, shop-cum-office complexes in Delhi and residential quarters in Noida, which will be monetised in the first phase, the report suggests.

Meanwhile, the Department of Telecom (DoT) in January said the comprehensive revival plan drawn up for the two ailing telecom corporations Bharat Sanchar Nigam Ltd (BSNL) and included multiple measures including reduction of staff cost through Voluntary Retirement Scheme (VRS), allotment of spectrum for 4G services, monetisation of land/building, tower and fiber assets of BSNL and MTNL, debt restructuring through sovereign guarantee bond and in-principle approval of merger of BSNL and MTNL.

Shares of HMT were locked in upper circuit for the fifth straight day, up 5 per cent at Rs 34.95 on the BSE. A combined around 12,000 equity shares have changed hands and there were pending buy orders for 50,000 shares on the NSE and BSE. In the past two weeks, the stock of the commercial vehicles company has rallied 54 per cent from level of Rs 22.75.

The growth of food processing industry is fueling the demand for equipment in the sector. The machine tool market depends on capex plans and investments of its customers. In view of thrust given by the Government for the Make in India program and monetary stimulus with the aim for ease of doing business increased demand is expected for machine tools by the fourth quarter of 2020-21, HMT said in 2019-20 annual report.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link