Monday, 22 February 2016

Nifty struggles below 7200; FMCG & banks drag, metals shine

Government will sell five percent stake in NTPC via offer-for-sale (OFS). It hopes to garner around Rs 5000 crore.
The stake sale would be spread over two days with institutional bidders getting the first chance to buy shares today. Retail investors, for whom 20 percent shares have been reserved, will get to bid on February 24. Recently the government had tweaked the OFS rules for retail investors.
NTPC is the first company to hit the markets under the revised offer for sale (OFS) guidelines of market regulator Sebi. The OFS route has now been spread over two days.
The floor price of Rs 122 is at a 3.8 percent discount to Monday's closing price of Rs 126.85.
The market extended losses in morning trade, dragged by FMCG, banking & financials and technology stocks. Metals and select auto stocks outperformed.
The 30-share BSE Sensex fell 144.73 points or 0.61 percent to 23644.06 and the 50-share NSE Nifty declined 49.15 points or 0.68 percent to 7185.40. The broader markets too were under pressure with the BSE Midcap and Smallcap indices down nearly half a percent.
The market breadth was weak as about two shares declined for every share advancing on the BSE.

 Markets in Asia gave up early gains on Tuesday, trading mostly lower as the improved market sentiment which spurred a global rally Monday appeared to fade. Shanghai declined over a percent.

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