Institutional investors saved the day for the government as the Indian Oil Corporation disinvestment sailed through amid a stock market crash. The issue, which will help the government raise Rs 9,300 crore, was subscribed 118%, although retail portion received bids for only 18% of the 4.8 crore shares reserved for this segment.

The government was looking to sell over 24 crore shares in the country's largest fuel retailer as part of its ambitious sell off programme that is targeting to raise Rs 69,000 crore during the current financial year. BSE data showed that institutional segment was subscribed 143%, more than making up for the lack of interest among retail investors Stock Market Trading Tips

Clearly, the fall in the stock market hit investor sentiment in the retail segment as the market price dipped far below the issue price. The government was looking to sell the shares for Rs 387 each, with a 5% discount to the retail investors. The price was a 2% discount to the closing price on Friday but the over 4% fall in the company's share price wiped out the gain. A majority of the bids were at the cut off price as the IndianOil scrip closed at Rs 378 on a day when the BSE sensex fell 6% Indian stock market astrology prediction

Several brokers advised retail investors to stay away from the government's offer for sale, arguing that it would be better to buy the stock after a few days. "There was a strong sell sentiment, which is why the retail investors stayed away," disinvestment secretary Aradhana Johri said after the issue closed. But she acknowledged that the task of meeting the sell-off target was challenging. "Yes, the market is getting more and more difficult. We do have to look for opportunity... You have to see the market and see a window. Sometimes you get your window right. Sometimes you don't get it so right," Johri said.

For several years the government has fallen short of the target and even this year there is no clarity on strategic sale or sale of residual shares in companies such as Balco or Hindistan Zinc, where the Atal Bihari Vajpayee government had opted for strategic sale. But with tax collections remaining healthy so far and the subsidy bill expected to shrink substantially due to falling crude prices, the pressure on disinvestment would ease a little Himanshu Tiwari Astrologer Blog