MUMBAI, June 20 NTPC Ltd, India's
largest power producer, scrapped its bond sale scheduled for
Thursday after a sell-off in government bonds caused worries
about the pricing of its debt, four sources with direct
knowledge of the bond sale said.
The firm was planning to raise up to 10 billion rupees
through an issue of dual tranche bonds.
Trading in Indian government bonds was halted earlier in the
day after yields hit their upper circuits on a global riskoff
following the Federal Reserve's comments on tapering of its
stimulus programme. The trading band has subsequently been
removed for the day.
The benchmark 10-year government bond rose as
much as 10 bps from its previous close. It was last trading at
7.33 percent. Corporate bonds in India are priced on the
government bond yield curve.
(Reporting by Archana Narayanan; Editing by Anupama Dwivedi)