NTPC's weightage in MSCI India to rise post share sale: Citi

Thu Feb 7, 2013 3:47pm IST

1 of 2. A worker installs an electric power cable on a pylon at a newly constructed power station in Jammu February 5, 2011.

Credit: Reuters/Mukesh Gupta

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Reuters Market Eye - NTPC's (NTPC.NS) weight in MSCI India index would rise from 0.63 percent to 1.79 percent as the company's free float stock increases after its offer for sale, Citigroup said in a note, quoting MSCI.

The government will sell 783.26 million shares, or 9.5 percent stake, in NTPC through a single-day auction, as part of its drive to raise 270 billion rupees by selling shares in some state enterprises in the 2012/13 fiscal year.

Citigroup also adds that NTPC's weight would increase in FTSE and Nifty indexes as well in March and April/May respectively, which should lead to a lot of passive demand/flows in the stock.

The investment bank expects MSCI to implement changes at its quarterly rebalancing on Feb 28.

(Reporting by Abhishek Vishnoi)

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