Power Grid, NTPC, IOC, BPCL, OIL, GAIL trade mixed after Fitch revises outlook
Shares of Power Grid Corporation of India fell almost 2 percent while those of NTPC jumped over 2 percent in early trade on BSE
June 24, 2020 / 10:18 AM IST
Shares of Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), Oil India (OIL), GAIL India, Power Grid Corporation of India and NTPC traded mixed in the morning trade on BSE after Fitch Ratings revised the outlook on these company's ratings.
Shares of Power Grid Corporation of India fell almost 2 percent while those of NTPC jumped over 2 percent in early trade on BSE.
Shares of IOC, BPCL, OIL and GAIL traded with gains of about half-a-percent each.
"Fitch Ratings has revised the outlook on the long-term issuer default ratings (IDR) of six rated Indian government-related entities (GREs) to Negative from Stable. The entities' long-term IDRs are affirmed at 'BBB-'. The rating action follows the revision of the Outlook on India's 'BBB-' sovereign rating to Negative from Stable on June 18," it said in a statement.
Also, Fitch revised the outlook on Hindustan Petroleum Corp Ltd (HPCL), which is a subsidiary of state-owned Oil and Natural Gas Corp (ONGC), to negative from stable.
Fitch said while ratings of IOC and BPCL are equalised with those of the sovereign given the strong likelihood of support, the same of GAIL and Power Grid are stronger than that of the sovereign at 'BBB' and 'BBB+', respectively. However, their ratings are capped at the same level as that of the state, according to the criteria.Read more: Fitch revises outlook of IOC, NTPC among other state-owned firm to negative