The key benchmark indices edged lower, registering their fourth decline in five days, as a strong response to the mega initial public offer of Coal India indicated diversion of funds from the secondary market to primary market. High volatility was the hallmark of the day's trading session. The BSE Sensex and the 50-unit S&P CNX Nifty settled below the psychological 20,000 and 6,000 levels respectively. Inflows into the secondary equity market might be hit in the short-term due to a strong response to the mega initial public offer of Coal India which was subscribed 10.39 times by 16:00 IST on day three today, 20 October 2010. The institutional portion of the Coal India IPO closes today, 20 October 2010, while retail investors have one more day to bid for the issue. The government plans to raise about Rs 15000 crore from divestment of 10% stake in Coal India.
In overseas markets, Chinese shares ended slightly higher in choppy trade after Tuesday's (19 October 2010) surprise quarter-point Chinese rate hike and on fears of more rate actions in China in coming months.
Closer home, the BSE 30-share Sensex lost 110.98 points or 0.56% to 19,872.15, off 171.67 points from the day's high and up 49.49 points from the day's low. The Sensex had lost nearly 1% on Tuesday, 19 October 2010.
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