NHPC tanks nearly 30%, hits five-month low on heavy volumes

MUMBAI: Heavy selling pressure was seen in the shares of NHPC in early trade on Monday on reports that some of the institutional investors (both FIIs and DIIs) sold their stake in the company.

NHPC slipped nearly 30 per cent in trade to a five-month low with heavy volumes. The volume in the stock was highest since the listing day on September 1, 2009. Over 6.60 crore shares were traded in the counter in the early trade.

At 12:45 pm, NHPC recouped some of its morning losses and was trading 17.18 per cent lower at Rs 20. It has hit a low of Rs 17.90 and a high of Rs 21.80 in trade today.

NHPC said in a statement to the stock exchanges that “there is no change which affects the major price movement” as to fundamentals for the company, and sees no adverse impact from India’s Finance Bill unveiled last week.

ABL Srivastava, Director Finance, NHPC, in an interview to ET Now told that the fundamentals of the company are as strong as before.

The change in price movement was a concern and the company is reporting the matter to SEBI, NSE and BSE officials. He told that around 3 crore shares were sold by institutional investors which led to a price correction on Friday and is being seen today as well.

The company has the list of institutions who have sold their stake. None of the investors had raised any concerns before the stock price fall.

Dealers are recommending staying away from these counters as more correction is anticipated in the coming sessions.