Stake dilution in PSUs to create more liquidity

CNBC-TV18’s Executive Editor, Udayan Mukherjee - The government has more important things on its minds now over the next few months. If it happens, I think it might create more liquidity in stocks like MMTC, Concor (Container Corporation of India) and may even in STC (State Trading Corporation). I don’t think it is particularly material for Shipping Corporation of India, which has got a reasonable float.

But in some of these cases there might be little more liquidity, which will aid institutional buying into these counters. From a fiscal deficit perspective it’s good news that some more money is coming into pay for some of the recent largest that the government has rolled out but otherwise for the stock market, as such not hugely impact for anything.