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Informist, Wednesday, May 27, 2026                                      Tel +91 (22) 6985-4000

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Equity Alert: Morgan Stanley sees Coal India OFS price discount an overhang

 

MUMBAI--0744 IST--Morgan Stanley sees the floor price of Coal India's offer for sale to be at material discount to current market price, NDTVProfit said citing the firm in a post on X. Late Tuesday, the coal mining company informed exchanges that the government will sell up to 2% stake in the company at a floor price of INR 412 a piece. The floor price is at a discount of 10% to Tuesday's close of INR 458.15 on the NSE. The discounted floor price is seen acting as an overhang and Morgan Stanley expects the stock to remain volatile in the near term. 

 

Coal India's offer for sale includes a base issue of 1% and a greenshoe option of 1%. The government holds 63.13% stake in the mining company and if the government exercises green shoe option, the shareholding will reduce to 61.13% post the issue. At the floor price, the government will raise around INR 50.78 billion by selling 2% stake in Coal India. If the government reduces its stake by only 1%, it will raise INR 25.40 billion. (Gopika Balasubramanium)

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Equity Alert: Jefferies sees non-defence govt spend flat; cuts weight on RIL

 

MUMBAI--0740 IST--In an India strategy report, Jefferies said it expect the government's spend on non-defence sectors to be flat during 2026-27 (Apr-Mar), as the government will look to cut costs to offset rising expenses from higher petroleum and fertiliser subsidies and lower oil tax revenues, NDTV Profit said, citing the investment bank as saying in an X post. The overall fiscal impact due to these factors could be INR 1.25 trillion-INR 1.5 trillion, to be shared with states or oil companies, the investment bank said.

  

On current retail fuel prices, oil marketing companies will have breakeven at $85-$87 a barrel without specifying the time period, Jefferies said. So far in May, these companies have hiked prices four times, with the latest price in Delhi for petrol being INR 102.12 a litre and that for diesel INR 95.20 a litre. Jefferies expects fuel prices to rise further from current levels.

 

Other measures to manage the impact from the higher costs for the government are likely to be pushing divestment in state-owned enterprises. The latest is the government selling 2% stake in Coal India through an offer for sale at a floor price of INR 412 a piece, with the issue opening later in the day. The government is slated to raise up to INR 50.78 billion through this. 

 

On stocks, Jefferies said it added ABB India to its porfolio with a 3% allocation and Triveni Turbines with 2% allocation. Alongside, it removed Bharat Electronics and reduced capital in Reliance Industries by 1.5% and that in Thermax by 2%. It increased weights on Titan Co. by 1.5% and NTPC by 2%. (Gopika Balasubramanium)

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Equity Alert: Tech stocks drive US mkt Tue; S&P 500, NASDAQ hit fresh highs

 

MUMBAI--0738 IST--Wall Street reopened Tuesday after the Memorial Day break on Monday. While the S&P 500 and the NASDAQ Composite advanced, the Dow Jones Industrial Average closed in the red. The S&P 500 and the NASDAQ hit fresh all-time highs Tuesday, driven by technology stocks. Shares of Micron Technology soared almost 20% and the stock breached $1 trillion in market capitalisation for the first time.

 

"For those of us that have been working that long, the tech rallies we've been seeing this year are reminiscent of the boom at the end of the 1990s," Chris Zaccarelli, the chief investment officer for Northlight Asset Management, told Reuters. 

 

Among other technology stocks that advanced during the session were Advanced Micro Devices, Qualcomm, Intel Corp., Alphabet, Broadcom. Shares of these companies rose 2–8%. The Philadelphia Semiconductor Index gained over 5% to hit a record high and the S&P 500 Information Technology index was up almost 2%. 

 

Investors were also buoyed by prospects of a peace deal between the US and Iran. US President Donald Trump had indicated earlier that a peace deal was nearing finalisation. Despite the US military's recent attack against Iran, which the US Central Command said was done in "restraint", Brent Crude oil futures remained below $100 per barrel. Prices have been hovering between $95 and $99 per barrel for the past three days. The July contract of Brent crude oil futures fell almost 5% during this period. 

 

Following were the closing levels of major US indices on Tuesday:

 

US Indices	Levels	Change in %
Dow Jones Industrial Average	50461.68	(-)0.23
NASDAQ Composite	26656.181	1.19
S&P 500	7519.12	0.61

 

(Ruchira Kagita)

 

US$1 = INR 95.68

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Vandana Hingorani

 

All prices from National Stock Exchange, unless otherwise specified.

All percentage changes for share prices are rounded off to the nearest whole number; percentage changes for index values are rounded off to one decimal place.

All times are Indian Standard Time.

 

NSE: National Stock Exchange
NYSE: New York Stock Exchange
NYMEX: New York Mercantile Exchange
SEBI: Securities and Exchange Board of India
RBI: Reserve Bank of India

Internet links:
Securities and Exchange Board of India - http://www.sebi.gov.in
Bombay Stock Exchange - http://www.bseindia.com
National Stock Exchange of India - http://www.nseindia.com
Directory of Indian government websites - http://goidirectory.nic.in
Indian Ministry of Finance - http://www.finmin.nic.in
Reserve Bank of India - http://rbi.org.in
Controller General of Accounts, Government of India - http://www.cga.nic.in
Government's Press Information Bureau - http://www.pib.nic.in

 

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