BHEL scales a 12-year high as stock jumps 14%. Here’s what is triggering this counter
Bharat Heavy Electricals (BHEL) jumped over 14% on Monday to hit their 12-year high of Rs 269.45 on the NSE. With this rally, the state-run stock has extended its gains to over 20% in the last four trading sessions.
The stock generated tremendous buying interest among the investors with more than 16.52 crore shares trading on the NSE at 2:10 pm. The total traded value of the shares stood at Rs 4,305.48 crore.
The stock's lifetime high stands at Rs 390.66 hit in November 2007.
The gains have been on account of reports saying that BHEL could be a potential beneficiary from the Rs 17,195.3 crore investment approved by the latter's Board for the third phase of the Singrauli Super Thermal Power Project.
On Monday, the exchange sought clarification from BHEL concerning the news report.
The gains also come on the back of a joint venture agreement signed by BHEL with Coal India on February 28, Wednesday to undertake its coal-to-chemicals business by initially setting up a coal-to-2000 TPD Ammonium Nitrate Plant using BHEL’s in-house developed
pressurised fluidised bed gasification (PFBG) technology. The equity shareholding will be 51% with CIL and 49% with BHEL.
The multibagger PSU stock has delivered over 260% returns over the past 12 months, eclipsing returns by Nifty during this period. The latter's returns were to the tune of 27%. BHEL shares are currently trading above their 50-day and 200-day simple moving averages (SMAs).
With this rally, the stock has drifted to the overbought zone with MFI reported by
