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Shares of Reliance Communications recovered after hitting two-month low earlier in the day.
The stock fell as Moody’s has cut the rating to ‘negative’.
AAt 3.20 pm local time, the shares were up 0.8 per cent at Rs 50.60 on the BSE. On the NSE, the RCom stock was up 0.5 per cent at Rs 50.45.
Earlier, the telecom company stock fell as much as 3 per cent to a near two-month low.
Moody’s has downgraded Reliance Communications’ ratings to “negative” from “stable’’, citing persistent delays in the company’s sale of non-core assets.
Moody’s says upon completion of the share swap transaction with Sistema Shyam Teleservices, Reliance will have adequate spectrum.
Its leverage metrics will be further pressured if the telecom company participates in the upcoming spectrum auctions, it says.
Last year, the debt-burdened company had bought Russian conglomerate Sistema’s Indian mobile phone business in a share-swap deal.
Ipca Labs' shares slump
Shares of Ipca Laboratories were trading down by over 10 per cent at the pre-close session.
On the BSE, the stock was down 10.52 per cent at Rs 499.70. Similarly, on the NSE the shares were trading down by 10.25 per cent at Rs 501.20.
Earlier, the stock slumped over 14 per cent as Switzerland-based Global Fund, which financially supports various disease eradication programmes, will not source malaria drug from the company.
The stock plunged 14 per cent to Rs 480 — its 52-week low — on the BSE.
On the NSE, the stock tanked 14.29 per cent to hit its one-year low of Rs 478.60.
Switzerland-based Global Fund will not source malaria drug from Ipca Laboratories as the company has received a warning letter from the US health regulator for lapses in manufacturing norms at three of its facilities.
In a regulatory filing, Ipca Laboratories had yesterday said the Geneva-based organisation that provides financial aid against AIDS, tuberculosis and malaria, has informed the company about its decision on Wednesday via a letter.
“In the light of the warning letter issued to the company by the USFDA on January 29, 2016, they (The Global Fund) have re-assessed the situation and following a risk consideration exercise, will not allocate any volume of Artemisinin based Combination Therapy (ACTs) to the company,” Ipca Laboratories said.
NBCC shares jump on new orders
Shares of National Buildings Construction Corporation (NBCC) were up 1.35 per cent at Rs 952.60 on the BSE at 3.25 pm local time.
Earlier, the stock rose 2.5 per cent as the company secured orders worth Rs 17,516 crore in the last fiscal.
The stock moved up by 2.55 per cent to Rs 963.95 on the BSE.
On the NSE, shares of the state-run firm gained 2.26 per cent to Rs 963.80.
NBCC has secured some big ticket orders, including Rs 2,149-crore order from the Indian Trade Promotion Organisation (ITPO) for redevelopment of exhibition venue at Pragati Maidan and Rs 5,828-crore redevelopment project from AIIMS.
“NBCC has secured a total business of Rs 226.96 crore in March 2016 under the Project Management Consultancy (PMC) segment and the total work secured during 2015-16 amounts to Rs 17,516.53 crore,” it had said in a regulatory filing yesterday.
Simplex Projects surges on stake sale
Shares of Simplex Projects surged nearly 20 per cent today after the company sold 51.21 per cent stake in its arm Simpark Infrastructure, proceeds of which will be utilised for business purposes.
The stock zoomed 19.96 per cent to Rs 28.85 on the BSE.
On the NSE, shares of the company jumped 19.96 per cent to Rs 28.85. the BSE.
The company, however, did not give any financial details of the deal.
“The board of directors of the company at its meeting held on March 28, 2016, had decided to sell its investment in the wholly-owned subsidiary, Simpark Infrastructure...Accordingly, 16,31,400 shares (51.21 per cent) have been sold,” the company had said in a BSE filing yesterday.
Simpark Infrastructure is a wholly-owned subsidiary of Simplex Projects.
Earlier, the board of directors had resolved that “investment up to 75 per cent only in the wholly-owned subsidiary of the company, Simpark Infrastructure, be sold and the sale proceeds be utilised for business purposes.”
Tata Power, Adani Power bounce back
Shares of Tata Power and Adani Power bounced back after Thursday’s losses.
Earlier in the day, Tata Power gained as much as 2.8 per cent after a loss of 3.9 per cent on Thursday.
Adani Power rose up to 1 per cent after Thursday’s 2.9 per cent loss.
Tata Power shares ended the session higher by 2.18 per cent at Rs 65.50 on the BSE. Adani Power shares were up 0.9 per cent at Rs 33.50.
According to local media reports, a tribunal had said on Thursday that the price these companies agreed on to sell power would not be binding on them, if there is a significant increase in coal prices.
Macquarie believes the judgment is positive, but says it gives no clarity on the extent of pass-through of currency depreciation and coal price increases.
Tata Power and Adani Power shares tanked on Thursday following the tribunal’s rejection of a regulatory body order on the companies’ Mundra plants.
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