BPCL slumps after new high

BPCL is having a roller coaster ride today morning. In fact yesterday too, it had hit a new 52-week high at Rs.548 and today it opened at another new high at Rs.549.70 but from there, it slipped to Rs.527 levels, going down in the red and remains in the negative currently.

Once the Govt announced the strategic divestment plan, looks like profit booking came in, with traders preferring to now wait on the sidelines and watch where this goes.

The govt has announced it plans to divest its 53.29% stake in BPCL to a strategic buyer, along with management control. The new owner could even be a foreign company and that changes the entire dynamics of this sector.

This divestment though will exclude BPCL’s 61% stake in Numaligarh Refinery in Assam where the Govt will continue to retain control.

The Govt will raise Rs.53,000 crore by selling this stake in BPCL alone.