Near-term outlook dull for BPCL, progress on divestment is crucial
The government has extended the deadline for the submission of expression of interest (EoI) for state-owned Bharat Petroleum Corp. Ltd’s (BPCL) privatization to 16 November. This is the fourth time that the deadline has been extended.
Additionally, last week, a Reuters news report citing sources said Rosneft and Saudi Aramco are unlikely to bid in BPCL’s privatization, as low oil prices and weak fuel demand curb their investment plans. This news flow took BPCL’s shares down by nearly 9% in a single day on NSE.
The government wants to sell its 53% stake in BPCL. The divestment news flow has been a driver for the stock for a while now. In July, the BPCL stock had rallied as much as 25% in four trading days as sentiments got a boost on reports that many global firms intend to bid for the stake.
