The BSE-PSU index, during the same period, has declined by 358.56 points to 2728.17 on Wednesday from the level of 3086.73 on September 11, 2003, while the benchmark BSE-30 share Sensex fell by 157.78 points during the same period.
There is some uncertainty with regard to disinvestment of other public sector units (PSUs). PSUs were riding high on the wave of the disinvestment story and as the process for HPCL and BPCL has been stalled now, investors have pulled down the PSU stocks across the board. In the short term, there would be unwinding of positions, but in the longer term, banking and refinery stocks look good. There is also a fear that there would be no disinvestment till the elections are held next year, said Motilal Oswal, managing director, Motilal Oswal Securities.
According to broker Jagdish Malkani, The PSU stocks shed gains led by HPCL and BPCL, where the impact of Supreme Court judgement was felt even on Wednesday. Wherever there is a disinvestment story, those stocks have gone down on the bourses. Oil and gas stocks, in particular, were weak as global oil prices have fallen recently. However, I do feel that the divestment process started in some of the PSUs will be carried forward as planned earlier.
Among the most actively traded PSU stocks, HPCL showed a significant decline on Wednesday as its share price declined to Rs 328.30 from Rs 425.30 on September 11, 2003, a loss of Rs 97.00 on The Stock Exchange, Mumbai (BSE), while its M-Cap decreased by 22.81 to Rs 11,124 crore from Rs 14,410 crore on September 11, 2003.
Though not among the top ten losers, BPCL lost 11.94 per cent in market capitalisation, to Rs 9,478.50 crore from Rs 10,764 crore on September 11.
Similarly, National Fertilizers has been losing steadily. Its price decreased from Rs 60.05 to Rs 37.70 during the same period and its M-Cap also showed a significant decline of 37.22 per cent to Rs 1,849.48 crore from Rs 2,945.92 crore.
PSU majors like HPCL, BPCL, NFL, Rashtriya Chemicals & Fert (RCF), MTNL, ONGC and Indian Oil (IOC) contributed significantly in the erosion in M-Cap of these state run companies.
Among others, where negative change of less than 10 per cent in M-Cap was seen were Mangalore Refinery (M-cap down by 9.72 per cent), Maruti Udyog (M-cap down by 4.24 per cent), Balmer Lawrie (M-cap down by 7.76 per cent) and Dredging Corporation (M-cap down by 8.77 per cent).
However, there are some PSUs whose M-cap has actually risen during this period. These are Bharat Earth Movers Ltd (Beml), IBP, Hindustan Zinc Ltd (HZL) and Bharat Heavy Electricals (BHEL). Among these, the highest increase was seen in the case of Beml. The M-Cap of Beml increased by 13.55 per cent to Rs 512.71 crore on September 17 from the level of Rs 451.53 crore on September 11, 2003.