The broader markets too were under pressure with the BSE Midcap and Smallcap indices down nearly half a percent.
10:58 am Market Update: Equity benchmarks remained under pressure, snapping four-day gains. The Sensex declined 203.87 points or 0.86 percent to 23584.92 and the Nifty dropped 66.80 points or 0.92 percent to 7167.75.
About two shares declined for every share advancing on the BSE.
10:40 am Interview: ONGC will see positive impact of nearly Rs 5000-6000 crore on sales if the cess on crude is removed — from fixed quantum to ad valorem duty, says the company's director - finance AK Srinivasan. He says this translates to USD 5-6 per barrel.
The cess rate may be cut as a sharp drop in crude has impacted E&P companies. The government is reportedly considering ad valorem duty of 10 percent on crude oil.
The government is also looking to re-impose custom duty of 5 percent on imported crude oil. Srinivasan says this too will be positive and the company will see a positive impact of Rs 2,000 crore on EBITDA.
10:20 am NTPC OFS: Government will sell five percent stake in NTPC via offer-for-sale (OFS). It hopes to garner around Rs 5000 crore.
The stake sale would be spread over two days with institutional bidders getting the first chance to buy shares today. Retail investors, for whom 20 percent shares have been reserved, will get to bid on February 24. Recently the government had tweaked the OFS rules for retail investors.
NTPC is the first company to hit the markets under the revised offer for sale (OFS) guidelines of market regulator Sebi. The OFS route has now been spread over two days.
The floor price of Rs 122 is at a 3.8 percent discount to Monday's closing price of Rs 126.85.
10:00 am Market Check
The market extended losses in morning trade, dragged by FMCG, banking & financials and technology stocks. Metals and select auto stocks outperformed.
The 30-share BSE Sensex fell 144.73 points or 0.61 percent to 23644.06 and the 50-share NSE Nifty declined 49.15 points or 0.68 percent to 7185.40. The broader markets too were under pressure with the BSE Midcap and Smallcap indices down nearly half a percent.
The market breadth was weak as about two shares declined for every share advancing on the BSE.
Markets in Asia gave up early gains on Tuesday, trading mostly lower as the improved market sentiment which spurred a global rally Monday appeared to fade. Shanghai declined over a percent.
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