Search the Internet          Tips  Sites: Finance, Investment

State-run firms rally ahead of divestment meet

Shares of leading state-run companies outpaced the market on Monday, riding on expectations a Cabinet meeting on January 30 to discuss privatisation may push through key divestment plans, dealers said.

India's privatisation programme, begun in 1991, has met with little success because of opposition from trade unions and differences within the ruling coalition.

Shares of fixed line telecom service provider Mahanagar Telephone Nigam, power generation equipment-maker Bharat Heavy Electricals Ltd, and refiners Hindustan Petroleum and Bharat Petroleum beat the Sensex, which was 1.51 per cent higher.

"I am pretty positive and I think there will be a phased privatisation announced this time around," said Bimal Parekh, director at Sunidhi Consultancy.

"Some hard decisions are likely to be taken," he said. Earlier this month Finance Minister Yashwant Sinha said the federal government will fall short of reaching its divestment target of Rs 100 billion for the financial year ending March.

Tell us what you think of this report