ONGC FPO is likely to come around 20 Sep for a total of Rs 12000 Crore and thus it may have a substantial effect on Indian stock market as it may suck liquidity from the market for a short term and thus the short term trend which is trying to become bullish may get mowed down. Bank of America Merrill Lynch, Citi, HSBC, JM Financial, Morgan Stanley and Nomura are the managers on the issue.
Thus keeping timing of FPO of ONGC and its mega size may see Nifty under pressure during the month of Sep 2011. If you have been considering an investment in ONGC FPO, than avoid the same as Only foreign institutional investors will make money as theycan digest near-term losses from these follow on public offers.
