Energy Stocks Rise As ONGC, HPCL Declare Dividends

New Delhi, September 29: | Updated: Sep 30 2003, 05:30am hrs
Public sector energy stocks flared up on Monday with ONGC and HPCL declaring huge dividend payouts. ONGC, which is also being inducted into the BSE Sensex, surged 5.76 per cent, HPCL spurted 5.26 per cent while other public sector oil and gas stocks spurted up to 7 per cent during the day.

Mondays sharp gains are despite the setback to the disinvestment process earlier during the month when the Supreme court asked the Government to get Parliamentary approval before going ahead with the sale of the oil PSUs, HPCL and BPCL. This had sent almost all the PSU stocks on a southward journey.

Hefty dividend declaration caught market attention and buying interest during the day saw the BSE PSU index gaining over 3.94 per cent, much higher than the other sectoral indices.

The days gains saw the market capitalisation of five PSU oil majors, namely ONGC, Indian Oil, BPCL, HPCL and Gail India, balloon by over Rs 8,800 crore.

Earlier in the day oil and gas major, ONGC approved a staggering total dividend of Rs 4,277 crore for fiscal 2003, which was 300 per cent of the face value of its shares.