Sensex plummets over 180 points, NTPC stock sinks as government’s 5% offer for sale opens

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Updated: August 29, 2017 10:56:37 AM

Indian stock markets fell on Tuesday led by the slump in the shares of NTPC after the government announced that it will sell 5% stake.

Within minutes of trading markets extended losses with the 30-share barometer sliding as much as 0.58% or 182 points to 31,568.08 points. (Image: Reuters)

Indian stock markets fell on Tuesday led by the slump in the shares of NTPC after the government announced that it will sell 5% stake in the country’s largest power producer NTPC at Rs 168 per share to raise about Rs 7,000 crore. The sentiments were also brought down by the weaker Asian markets and US stock futures which tumbled in the early trade today after North Korea fired a missile over northern Japan, fuelling worries of fresh tension between Washington and Pyongyang. BSE Sensex opened marginally down at 31,724.84 points and NSE Nifty opened below 9,900 level at 9,886.4 points.

Within minutes of trading markets extended losses with the 30-share barometer sliding as much as 0.58% or 182 points to 31,568.08 points and the broader Nifty 50 falling 57 points or 0.58% to 9,855.2 points. Shares of heavyweight companies HDFC, HDFC Bank, NTPC, HUL, Kotak Mahindra Bank, Reliance Industries, L&T and State Bank of India were the major contributors in dragging the BSE Sensex.

Stocks of NTPC (down 3.03%), Sun Pharma (down 1.12%), HDFC (down 1.11%), HUL (down 0.96%), Bharti Airtel (down 0.91%) and ONFC (down 0.84%) were the biggest loser on the BSE Sensex. Out of 51 scrips on NSE Nifty only 7 were trading up, rest all were trading in the red.

Shares of NTPC plunged over 3% today on the benchmark Sensex after the government announced that it will sell a 5% stake in the country’s biggest power producer NTPC Ltd over two days to Wednesday. The share sale through an offer for sale (OFS) will happen over two days beginning today. The government will sell 5% through OFS, with an option to retain another 5% in case of over-subscription. The floor price of Rs 168 is at a discount of 3% over Monday’s closing stock price. The government has so far this fiscal raised over Rs 8,800 crore through disinvestment in six companies, including selling a stake in L&T through Specified Undertaking of Unit Trust of India (SUUTI), and one share buyback.

The S&P 500 and Dow ended little changed on Monday, with energy and bank shares lower as Tropical Storm Harvey crippled the US energy hub in Texas, while tech and healthcare gave a slight boost to the Nasdaq. The Dow Jones Industrial Average fell 0.02% to close at 21,808.4 points, the S&P 500 gained 0.05% to 2,444.24 points while Nasdaq Composite added 0.28% to 6,283.02 points, helped by rises in Apple and Gilead Sciences.

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