- BSE Sensex, NSE Nifty hit record highs after Bharatiya Janata Party sweeps polls99 stocks hit 52-week high as Bharatiya Janata Party triumphs in Assembly polls, Axis Bank shares a hitNTPC to start work on Burdwan thermal power plantBSE Sensex down 49 points, NSE Nifty flat at 0.24 pct
Shares of NTPC today fell sharply by 12 per cent amid concerns that the proposed electricity tariff regulation would have a negative impact on the country's largest power producer.
NTPC's shares crashed 11.81 per cent to Rs 135.15 on the BSE.
At the NSE, the stock tumbled 12 per cent to Rs 135.
Weakness was seen in other power related stocks, including NHPC which was trading lower by 1.64 per cent, Power Grid slipped 3.40 per cent and SJVN was down 0.96 per cent at the BSE.
CERC has issued draft regulations for tariff determination during FY15-19 applicable for government companies.
"We see huge negative impact for NTPC. However, we see lower impact for PGCIL, NHPC and SJVN," brokerage firm Emkay Global said in a report.
"The final regulations could be different from the draft as has happened in the past. However, given the quantum of negative impact is high compared to previous draft regulations even if the norms are relaxed a bit it would still be negative," the report added.
"The draft CERC regulations have just come in public domain and we are studying the same. Prima facia we find positive changes. This paper is under discussion and we are going through with a fine comb before it is finalised. We would like to assure our investors our continued returns and thank them for their support," NTPC said in a statement.