Money on the markets
A maturing market amid the mayhem
The index was launched on August 24 to track the value of stocks for two years after listing. It currently has 50 stocks and the maximum weighting for a stock is capped at 20 percent.
The base date of the index is May 3, 2004 and the base value was set at 1000 points. The index closed at 1,985 on Monday.
Stocks like Reliance Power, Mundra Port, Motilal Oswal and Gammon India are included in the index.
Oil India Ltd’s ads in newspapers and business glossies may help in building a much-needed tempo before its public offering of shares, but if the disappointing listing price of Adani Power and NHPC is any cue to go by, then the days ahead for costly IPOs may not be worry-free.
The energy explorer, which deferred an IPO last year amid the global financial crisis, has lined up a $500-$600 million public offering which will open on September 7 and close on September 10. The price band has been set at 950 to 1,050 rupees a share.
The UPA government’s deferred divestment programme seems to have had a smooth take-off. State utility NHPC’s IPO was subscribed 23.5 times at close.