Indian stock markets tumble as Reliance IPO is oversubscribed

By IANS

Mumbai : A firm opening in the morning lasted only briefly on Indian bourses, which declined sharply on weak global cues. The overwhelming response to Reliance Power Ltd (RPL)’s initial public offer (IPO) also prompted selling pressure.


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The 30-share sensitive index of the Bombay Stock Exchange (BSE) opened at 20,836.47 points, up 0.59 percent and marked a high of 20,872.93, up 0.72 percent.

After witnessing the day’s low of 20,203.63 points, down 2.54 percent, the Sensex finally closed at 20,251.09 points, down 2.30 percent.

Reliance Industries gained first place in turnover toppers with Rs.2.86 billion following news of the company going for a synthetic fuel plan.

Reliance Energy emerged second with a turnover of Rs.2.42 billion. According to Nalin V. Shah of N.V. Shah Securities Pvt Ltd, over-subscription to RPL’s IPO fuelled the buying on this counter.

Reliance Petroleum achieved third position with a turnover of Rs.1.93 billion. Reliance Capital and NTPC followed with a turnover of Rs.1.85 billion and Rs.1.81 billion, respectively.

Top gainers in the overall market in the morning session were Aro Granite, up 19.97 percent at Rs.125.85, H B Portfolio, up 19.84 percent at Rs.143.75 and Aries Agro, up 13.82 percent at Rs.239.60. Total turnover figure for BSE stood at Rs.72.45 billion.

Market breadth was negative with 988 stocks advancing against 1,869 declining and 31 remaining unchanged.

The broader 50-share S&P CNX Nifty index of the National Stock Exchange mirrored similar sentiments and opened at 6,226.35, up 0.22 percent and marked a high of 6,260.45, up 0.29 percent.

After touching the low of 6,053.30, down 2.51 percent, Nifty finally ended at 6,074.25 points, down 2.14 percent.

Turnover toppers at NSE were Reliance Industries, Reliance Natural Resources, Bharti Airtel, ICICI Bank and Reliance Energy. Total turnover at NSE was pegged at Rs.177.88 billion.

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