FII Data

Foreign Institutional Investors today sold off equities worth Rs 1,30.79 crore, amid the barometer index plunging over 670 points today. 

FIIs invested in shares worth Rs 1,887.99 crore, and sold stocks valued Rs 2,918.78 crore, resulting in a net selling of Rs 1,030.79crore, as per provisional data available on the Bombay Stock Exchange. 

According to information available on the Sebi website, FIIs offloaded equities worth Rs 189.10 crore yesterday. 

However, domestic institutional investors purchased equities valued Rs 669.96crore on the bourses. 

Among other categories brokers invested of shares worth Rs 44.77crore on behalf of their clients and retail investors and non-resident Indian entities bought stocks valued Rs 2.09 crore on the day's trade. 

However, proprietors shed shares valued Rs 1.43 crore. The Bombay Stock Exchange 30-share index settled at 10,809.12, up 674.28points or 5.87 per cent.

Goldman Sachs has given SELL on Reliance Power

Reliance Power 
cmp: Rs 137.55 
target price: Rs 115 

Goldman Sachs Global Investment Research has initiated coverage on the stock with a “sell” rating, saying the current market price does not fully reflect the risks entailed in the timely execution and profitability of the company’s 28.2GW capacity addition plan. 

“Back-ended capacity addition entails high risks on account of execution, fuel security, funding and realised tariffs — all of which can significantly alter forecast profitability and cash flows,” said Goldman Sacs in a note to its clients. According to the firm, the company’s projects aggregating 2,900 MW capacity (excluding hydro) has not achieved a single milestone. 

Therefore, the stock has a 25% potential downside from its current market price. However, the firm believes, as projects achieve various milestones, the target price for the stock would rise. “When commissioned, the company’s target capacity addition (including hydro) would have a healthy fuel mix and geographic spread to meet both base-load and peak-load power requirements across regions. 

However, over 10% of the 24.9GW target capacity addition (excluding hydro) is likely to come on stream by FY2011E (estimated). Moreover, timeline/profitability of planned gas-based capacity (10.3GW) depends upon the resolution of the long-drawn out dispute for gas supplies between RNRL and RIL,” the note added.