Bharat Petroleum Corporation (BPCL) rose 1.40% to Rs 489.45 after the state-run oil marketing company announced the rating actions by various rating agencies.
Credit ratings agency, Moody's with the change in the sovereign rating of India, have changed the outlook from Baa2 (Stable) to Baa2 (Negative) in respect of BPCL's senior unsecured debts-Foreign Currency.Further Moody's while retaining the rating as Baa2 (Negative) have put the company's rating on 'Review for Downgrade considering the disinvestment plan.
CRISIL has placed long term rating of AAA (Stable) in respect of non-convertible debenture and bank facilities-long term on 'Rating Watch with Developing Implications' considering the disinvestment plan.
CARE has placed long term rating of AAA (Stable) in respect of non-convertible debenture on 'Rating Watch with Developing Implications' considering the disinvestment plan.
Further, FITCH is also continuously monitoring the further developments with regard to sale of Government of lndia's stake in BPCL alongwith transfer of management control to strategic partner.
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As per the disinvestment plan, the government has decided to sell majority stake along with management control in various PSU companies. The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi last month approved sale of government's 53.29% stake in BPCL.
Shares of BPCL fell 3.37% in the past two trading sessions to settle at Rs 482.70 yesterday, 11 December 2019, from its close of Rs 499.55 on 9 December 2019.
Meanwhile, the S&P BSE Sensex was up 108 points or 0.27% to 40,520.89.
On the technical front, the stock's RSI (relative strength index) stood at 44.868. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock was currently trading below its 50-day moving average (DMA) placed at Rs 508.32, but still above its 200 DMA placed at Rs 405.14.
On a consolidated basis, BPCL reported 2.7% rise in net profit to Rs 1,502.63 crore on 11.3% fall in net sales to Rs 64,289.50 crore in Q2 September 2019 over Q2 September 2018.
BPCL operates in refinery and marketing activities, which includes downstream petroleum sector.
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