Indian benchmark indices experienced a decline in the initial trades of the trading session, primarily due to notable declines in the banking, financial services, and oil & gas sectors. However, the indices managed to recover from their initial losses and traded flat, thanks to the resilience exhibited by healthcare, telecommunications, and IT stocks.
The broader indices have shown remarkable outperformance compared to the main indices, with a significant gain of nearly half a percent. REC Ltd, among the top gainers in the BSE Midcap segment, experienced significant buying interest following the announcement of a memorandum of understanding (MoU) with Punjab National Bank (PNB).
This MoU signifies their intention to collaboratively explore funding opportunities for projects in the power, infrastructure and logistics sectors through a consortium arrangement. According to a statement from REC, they are set to co-finance loans amounting to Rs 55,000 crore over the next three years in partnership with PNB.
On an intraday basis on Wednesday, shares of REC Ltd soared more than 6%, reaching a 52-week high of Rs 285 per share on the BSE. The shares have displayed a remarkable performance, surging by over 75% in just three months, and delivering exceptional returns of approximately 194% in a span of one year.
REC Ltd is a ‘Maharatna’ company under the administrative control of the Ministry of Power, Government of India. It provides long-term loans and other financing products to state, central and private companies for the creation of infrastructure assets in the country. As of June 30, 2023, the company had a loan book of Rs 4,54,393 crore with 91% loans to the state sector. According to the Public Enterprises Survey for FY2021-22, the company is positioned at the 8th rank in terms of net profit among all profit-making CPSEs.
Keep a close eye on this stock for the upcoming trading sessions!
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.