Selloff Blues Chop 2.7% Off BPCL Stock

Mumbai, January 28: | Updated: Jan 29 2003, 05:30am hrs
The stock price of Bharat Petroleum Corporation Ltd (BPCL) witnessed a decline on Tuesday on sustained selling pressure.

The stock of the state-run oil refiner was down 2.7 per cent, closing at Rs 194.80 as against its previous close of Rs 200.40. A total number of 12,87,000 BPCL shares changed hands.

Dealers said there were concerns in the market regarding the timing of the disinvestment in BPCL, since its privatisation is proposed through the market route.

Dealers said the stock slipped even after the government cleared disinvestment in BPCL through the open market route. The scrip has declined sharply in the last few sessions. From a high of Rs 227.85 on January 16, the stock shed 14.4 per cent to its current price of Rs 194.90, dealers added.

However, analysts remain enthusiastic about outlook for the company, backed by its improved financial performance in the third quarter ended December 31, 2002. Analysts attribute the improvement in financials to the increase in the import parity prices of its products, which resulted in increased sales realisation. Analysts further said that over the past decade, BPCL had transformed itself from a mundane commodity firm into a savvy retail player. Despite being a public sector company, it has always been applauded for its proactive, first-off-the-block approach.