The New India Assurance Co. shares came under heavy selling pressure on Tuesday, falling as much as 13.71% to Rs 199.50 per share on the BSE. At the closing bell, the stock settled 11.22% lower at Rs 205.25.
The stock's sharp decline was accompanied by heavy trading activity on both the BSE and NSE.
On the volume front, around 14.11 lakh shares worth Rs 29.34 crore had changed hands on the BSE, while 254.40 lakh shares worth Rs 527.84 crore were traded on the NSE.
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Profit Booking?
The decline in shares is likely a case of profit-booking, as the scrip edged sharply higher over the past couple of sessions. The recent gain, according to reports, was linked to the upcoming initial public offering of the National Stock Exchange (NSE). The insurer reportedly holds a direct 1.42% ownership stake in the NSE, and if the IPO turns out to be a blockbuster, then the value of its investment portfolio will significantly go up.
Notably, New India Assurance is India's largest public sector general insurance company, owned by the Government of India. Founded in Mumbai on July 23, 1919, by Sir Dorabji Tata, the insurer was nationalised in 1973 and remains a market leader in India's non-life insurance sector.
Headquartered in Mumbai, the insurer has a wide domestic network and an international presence across more than 25 countries.
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