PSU stocks including MMTC and Hindustan Copper rally in sluggish market

MUMBAI: Shares of select PSUs, including MMTC and Hindustan Copper, today rallied on the bourses, enthused by the market regulator Sebi's relaxed norms for stake sale and buyback of shares by the company promoters.

Bucking the sluggish broader market trend, shares of MMTC closed 17.76 per cent higher at Rs 729.80, while Hindustan Copper rallied 15.27 per cent to end the trade at Rs 253.25.

State Trading Corporation also closed with a gain of 14.13 per cent, while SAIL jumped 1.55 per cent.

Marketmen said the the Sebi's decision would help the government's divestment programme.

In order to fast-track the sale of promoters' equity in listed companies to meet minimum public shareholding norms, the SEBI has opened a new window for share sale and relaxed buyback rules.

The decision taken by the market regulator will pave the way for the top 100 companies, including blue-chip PSUs like ONGC, IOC, SAIL, BHEL and NTPC, to offload their equity expeditiously.

With regard to the buyback, the regulator said, "The timeline for various activities involved in the buyback process have been revised, which shall result in a substantial reduction of the time taken for completion of buyback."