President of India Portfolio Stock Delivers More Returns Post Ex-Bonus: Will the Rally Continue?
Technically, the stock is on verge of a five-month long consolidation range
The Indian stock markets reached a historic milestone on Monday, with the Nifty50 index nearing the 25,000 mark for the first time. The euphoria was palpable as the index came within striking distance of this significant threshold. However, the afternoon session brought with it a wave of volatility, causing the Nifty50 to trade below 24,900, with modest gains of just 33 points.
Amidst this market turbulence, one stock stood out by reaching a fresh 52-week high. Bharat Petroleum Corporation Limited (BPCL), a prominent Public Sector Undertaking (PSU) in the petroleum industry, has shown remarkable resilience and growth. BPCL, engaged in the refining of crude oil and the marketing of petroleum products, has been on an upward trajectory.
BPCL shares surged to near its 52-week high on Monday. This impressive climb comes after the stock traded at its ex-bonus price last month. Since the ex-date of the bonus shares, BPCL has appreciated nearly 10 per cent, showcasing its strong performance.
On May 9, 2024, BPCL's board recommended the issuance of bonus shares. From the recommendation date to the ex-date, the stock moved from Rs 290.85 to Rs 307.60, translating to a gain of 6 per cent. Interestingly, the stock delivered more robust returns post-ex-bonus.
In 2024, BPCL has risen by an impressive 52.27 per cent, with July alone accounting for an 11 per cent increase. President of India holds 52.98 per cent stake in the company.
Technically, the stock of BPCL is on verge of a five-month long consolidation range. The stock sustaining above the level of Rs 340-344 would result into a breakout.
Disclaimer: The article is for informational purposes only and not investment advice.