Mumbai: On 13th May, Shares of NTPC ended over two percent lower, while Indian Oil scrips erased early losses to end in positive territory as the government has decided to sell some of its stakes in both the companies.
NTPC's scrip ended 2.47 percent lower at Rs 138 on the BSE. During the day, it fell by 5 percent to Rs 134.30.
On the other hand, shares of IOC erased all its initial losses and settled 0.50 percent higher at Rs 334.45 . During the day, it had lost 2.62 percent to Rs 324.05.
"Markets remained volatile amidst mixed reactions from the markets towards the cabinet approval towards sale of stake in Indian Oil and NTPC," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Ltd.
The government will sell its 10 percent stake in Indian Oil Corporation (IOC) and 5 percent in NTPC to mop up about Rs 13,600 crore in this fiscal's first disinvestment approval.
The approvals are part of Rs 41,000 crore disinvestment target for the current financial year.
Buoyed by diesel price deregulation, the government is looking at selling stake in India's largest fuel retailer IOC for the second time in 13 months.
Sale of 24.27 crore shares, or 10 percent stake, in IOC would mop up close to Rs 8,000 crore at current market price.
A total of 41.22 crore shares, or 5 percent, in NTPC could fetch Rs 5,600 crore to the exchequer at current rates.
The government had last sold stake in NTPC in February 2013.
Stake sale in IOC and NTPC together would fetch Rs 13,600 crore.
