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)
Trending On Reuters
Business in india
Thousands of people swarmed the weekend opening of "Make in India" drive to attract foreign direct investment, pitched by PM Modi as "the biggest brand that India has ever created". Full Article | Slideshow