NHPC IPO; NMDC Stake Sale in India

123jump.com Staff
06 Aug, 2009
New York City

Rising mega IPO issues may soak liquidity from Indian market. NHPC Ltd, the largest hydroelectric company announced a plan to raise 6,000 crore rupees. The state controlled NMDC is preparing to sell 5% stake in the mining company.

[R]6:00 PM Mumbai, 8:30 AM New York – Rising mega IPO issues may soak liquidity from Indian market. NHPC Ltd, the largest hydroelectric company announced a plan to raise 6,000 crore rupees. The state controlled NMDC is preparing to sell 5% stake in the mining company.[/R]

Mumbai benchmark index dropped after hovering near 14-month high for a week. With the market momentum, new issues pipeline is full with mega issues. The government controlled NHPC Ltd is the latest announce a plan to raise 6,000 crore rupees ($1.3 billion).

Investors are growing cautious on the worries that a flood of mega issues will block funds and dry liquidity in daily trading.

The Sensex index in India decreased 389.80 or 2.45% to 15,514.03 and CNX Nifty index slid 108.65 or 2.31% to 4,585.50. Among the Sensex 30 stocks, 28 declined and 2 gained.

On BSE trading, 1,072 stocks advanced, 1,617 declined and 71 were unchanged.

Gainers & Losers

A weak monsoon may hamper economic growth as more than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

Allied Digital Services rose 2.90% to Rs 395.90 on reports it is evaluating acquisition deals in Europe and Australia worth $100 million by the next quarter.

Austral Coke & Projects rose 3.31% to Rs 445 after it acquired 182,000 square meters of land in Andhra Pradesh to set up a coke plant with capacity of 600,000 metric tons per annum.

Core Projects & Technologies rose 3.7% to Rs 175.10 after its board approved raising up to Rs. 1,250 crore through global depositary receipts convertible bonds or qualified institutional placements.

DLF lost 1.3% to Rs 386.20 it is looking to exit its life insurance joint venture in a bid to exit non-core businesses.

Development Credit Bank surged 13.7% to Rs 39.55 on reports the bank plans to raise at least Rs 75 crore through bonds sale.

Federal Bank declined 1.8% to Rs 231.50 after a block deal of 6.03 lakh shares was executed on BSE at Rs 230 a share.

ING Vysya Bank gained 3.7% to Rs 220.80 after the bank said its board approved fund raising plan by issuing up to 2.41 crore shares through various modes.

Jindal Poly Films jumped 8.3% to Rs 346 after the company announced the schedule for its Rs 73 crore share buyback plan.

NMDC jumped 2.7% to Rs 395.40 in addition to 5% increase yesterday on reports the steel ministry has approved divesting stake.

Sterlite Industries (India) fell 1.5% to Rs 670.30 as copper prices declined.

Tata Steel decreased 1.29% to Rs 467 after July sales increased 18% from a year ago.

Thermax was up 0.1% to Rs 426.50 after the company received an overseas order of $20 million.

HDFC Bank sank 2.3% or Rs.33.80 to Rs.1,413.75, ICICI Bank fell 0.9% or Rs.7.60 to Rs.765.75 and State Bank of India fell 2.5% or Rs. 47.50 to Rs.1,797.20.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 135.56 or 1.32% to 10,388.09, Hang Seng index in Hong Kong increased 404.47 or 1.97% to 20,899.24 and CSI 300 index in China dropped 77.82 or 2.08% to 3,663.12. ASX 200 index in Australia increased 61.80 or 1.45% to 4,326.30. The FTSE Bursa KL Composite index in Malaysia closed higher 4.48 or 0.38% to 1,183.97.

The Kospi Index in South Korea increased 5.57 or 0.36% to close at 1,565.04. SET index in Thailand closed higher 9.05 or 1.41% to 649.21 and JSE Index in Indonesia increased 42.91 or 1.85% to 2,359.98. The Sensex index in India decreased 389.80 or 2.45% to 15,514.03.