Stock of power producer NTPC on Friday fell amid concerns over central power regulator's new tariff order for FY15-FY19 which is likely to severely hurt state-run power generator.
On Thursday, Fitch Ratings said the order is likely to take a hit of 350 basis points on its pre-tax return on equity.
The stock hit Rs 112.50 levels on the BSE, its 52 week low, after opening at Rs 115.80 on Friday.
As per the Central Electricity Regulatory Commission (CERC)'s new norms, to be in force for five years (April 2014 to March 2019), there will be key changes with regard to tax and calculation of incentives for thermal power plants. The rules were notified on February 21.
"NTPC would be the most hurt among the country's rated state-linked electricity utilities by the regulator's final tariff order for the upcoming five-year regulatory period. It will bring down NTPC's pre-tax return on equity (RoE) by around 350 basis points," Fitch said in a statement.
With PTI inputs