Epic Research Update : Adani EnterpriseEquity benchmarks continued to see downtrend in afternoon trade while the broader markets maintained outperformance with the BSE Midcap and Smallcap indices rising 0.2 percent.
The 30-share BSE Sensex slipped 125.28 points to 24775.35 and the 50-share NSE Nifty declined 33.70 points to 7580.65.
Tata Power and Adani Power fell 3 percent each after the Appellate Tribunal for Electricity (APTEL) today struck down a 2014 order by the Central Electricity Regulatory Commission (CERC) that granted compensatory for both companies, holding that the central regulator did not have the power to allow for it.
The CERC had in February 2014 ruled that Tata and Adani will be allowed to increase tariffs temporarily to compensate for additional fuel costs that they were incurring due to expensive coal imports in their plants in Mundra, Gujarat.
The news is a rude shock for both companies, says Murtuza Arsiwalla of Kotak Institutional Equities, adding that stocks were already pricing in the order. Benefit of Rs 15-20 per share was expected from CERC order, which now reversed, will weigh on the stock price. He expects Rs 50-60 crore loss for Tata Power post the decision.
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