Shares of Anil Dhirubhai Ambani Group’s (ADAG) flagship companies declined on Wednesday after rating agency Crisil downgraded the group’s flagship firm, Reliance Infrastructure to ‘default’.
The cascading impact of rating downgrade was visible on other group companies with shares of Reliance Capital and Reliance Power also hit after the development.
Shares of Reliance Capital, the flagship company of the ADAG Group, were trading lower at Rs 405.15, down by 3.90 percent, or by Rs 16.45, after opening at Rs 421 on the BSE.
The stock has so far traded between a high of Rs 422.40 and a low of Rs 399.40.
Reliance Infrastructure shares plunged after the global rating firm Crisil downgraded the company to 'default', ET reported.
The stock dipped by 4.42 percent to Rs 381.75. The stock has swung between a high of Rs 401 and a low of Rs 371.35, after opening at Rs 400.95.
Likewise, shares of Reliance Power declined by 3.43 percent to Rs 32.35, or by Rs 1.15. The stock has swung between Rs 33.95 and Rs 31.90 after opening at Rs 33.60.
Benchmark indexes have erased gains from the initial hours of trade, with investors awaiting the outcome of the Reserve Bank of India’s decision on key policy rates and monetary policy guidance.
The BSE Sensex traded lower by 59 points to 37,547.67, or down by 0.16 percent, while the NSE Nifty 50 declined by 11 points to 11,346.10, or 0.09 percent at 11:35 AM.