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NCC share price falls 4.13% intra day after India Ratings puts ratings under negative watch

NCC share price fell up to 4.13% to Rs 47.50 compared to the previous close of Rs 49.95 on BSE. It closed 0.71% lower at Rs 49.20 on BSE.

twitter-logo BusinessToday.In        Last Updated: October 11, 2019  | 16:10 IST
NCC share price falls 4.13% intra day after India Ratings puts ratings under negative watch
NCC share price closed 0.71% lower at Rs 49.20 on BSE.

NCC share price ended lower in trade today after India Ratings put ratings of the infrastructure development firm on negative watch. NCC share price fell up to 4.13% to Rs 47.50 compared to the previous close of Rs 49.95 on BSE. It closed 0.71% lower at Rs 49.20 on BSE.

India Ratings and Research (Ind-Ra) has placed its long-term issuer rating of 'IND A', on rating watch negative (RWN). The outlook on the earlier rating was stable.

The small cap stock has lost 6.61% in last two days. The stock has lost 29.61% in one year and fallen 44.15% since the beginning of this year.

The firm's share price fell below Rs 100 in May this year amid reports that the newly formed YS Jaganmohan Reddy government had decided to cancel projects sanctioned by Chandrababu Naidu in Andhra Pradesh. Since then, the stock's value has remained in double digits.  

These projects running into thousands of crores of rupees were hurriedly sanctioned by Naidu-led TDP government just days before the schedule for the general elections was announced in March and the foundation stone laid by Naidu for them.

NCC was seen affected by the order.

ON May 31, NCC share price ended 16.33% or 19 points lower at 97.85 on BSE.

In a communication to the bourses, the firm said, "We understand that the new government is considering to cancel work orders issued prior to April 1 but not grounded (work not commenced). If this were to happen, work orders approximately worth Rs 6,100 crore issued to our company are likely to be cancelled."

The company further said it did not receive any communication from the government on the issue.

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