Sensex falls 477 pts under the weight of Reliance IPO

Sensex falls 477 pts under the weight of Reliance IPO
PTI
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First Published: Tue, Jan 15 2008. 11 18 PM IST
Updated: Tue, Jan 15 2008. 11 18 PM IST
Closing
Mumbai: The stock markets today plunged with the Sensex losing nearly 477 points as some market players and investors encashed their holdings to invest in Reliance Power’s public offer which opened for subscription today.
The Sensex closed the day lower by 476.96 points at 20,251.09, even as the Reliance Power’s IPO was subscribed nearly 10 times within four hours of its opening.
The Sensex touched the day’s low of 20,203.63 and a high of 20,872.93 points, a volatility of nearly 669 points.
Similarly, the wide-based National Stock Exchange index Nifty fell by 132.55 points to 6,074.25, after touching a low of 5,053.30 and a high of 6,260.45 points.
The Anil Ambani group’s IPO generated a demand of close to Rs1,00,000 crore within four hours of start of the book building process, and the IPO received bids for over 220 crore shares against 22.80 crore shares on offer at noon.
Brokers said market players as well as the general public opened new demat accounts to invest in the issue. They said most of the investors sold their existing holdings in the secondary market to apply for the public offer.
Late Afternoon
Mumbai: Sensex fell nearly 416 points in pre-close trading as some market players and investors encashed their holdings to invest in Reliance Power’s mega public issue that opened for subscription today.
The Sensex dropped 416.39 points at 20,311.66 at 1500 hours. Reliance Power’s initial public offer was subscribed nearly 10-times on the first day of its opening.
The Anil Ambani group’s IPO generated a demand of close to Rs100,000 crore within four hours of start of the book building process. According to the latest data available, the IPO received bids for over 220 crore shares as against 22.80 crore shares on offer.
Brokers said market players as well as the general public opened new demat accounts to invest in the issue. They said most of the investors sold their existing holdings in the secondary market to apply for the public offer.
Late Morning
Mumbai: The stock market surrendered its initial dominance and the benchmark Sensex was down by another 69 points due to weak Asian cues in morning deals on the opening day of mega IPO of Reliance Power.
In fairly volatile trade, the Bombay Stock Exchange (BSE) 30-share barometer touched a high of 20,872.93 immediately after resumption of trade but fell sharply to quote at 20,658.77 at 1030 hrs, a fall of 69.28 points over Monday’s close of 20,728.05.
The broader S&P CNX Nifty of the National Stock Exchange (NSE) also moved down by 16.65 points to quote at 6,190.15 at 1030 hrs from previous close of 6,206.80.
According to market participants, there might be some liquidity drain from secondary market to invest in mega IPO of Reliance Power of which subscriptions started today.
Small and mid-cap counters attracted good buying interest after last week’s heavy sell-off.
Besides Taiwan, most of the Asian markets were traded in the red this morning while the Dow Jones Industrial Average and the Nasdaq Composite Index recovered sharply last night.
As per provisional figures, Foreign Institutional Investors (FIIs) were net sellers worth Rs257.66 crore and also pulled out Rs1,103.20 crore from derivatives on Monday while domestic funds also sold shares to the tune of Rs193.55 crore on the same day
Opening
Mumbai: The Bombay Stock Exchange benchmark Sensex recovered by over 138 points at open on emergence of buying by funds in heavy-weight stocks at existing low levels.
The sensitive index, which had lost over 100 points in previous day trading, wiped the losses to trade higher by 138.12 points at 20,866.17 in first five minutes of trading.
ACC Ltd, Cipla, Grasim Industries, Mahindra & Mahindra and Reliance Industries were among the stocks which gained in the first five minutes of trade.
Similarly, the wide-based National Stock Exchange’s Nifty rose by 53.65 points at 6,260.45 as most of the heavy-weights stocks like Reliance Industries, Larsen and Toubro, BHEL and SBI.
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First Published: Tue, Jan 15 2008. 11 18 PM IST
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