NCC records sharpest intra-day fall in 30 months; stock tanks 17%

NCC shares tumbled 17 per cent at Rs 97 on BSE on Friday to record their sharpest intra-day fall in the past 30 months, on report that the YS Jaganmohan Reddy government had decided to cancel projects sanctioned by Chandrababu Naidu in Andhra Pradesh.

The stock reported its biggest intra-day decline since November 9, 2016. The counter has seen huge trading volumes with a combined 71 million shares, representing 12 per cent of total equity of NCC, changing hands on the NSE and BSE till 12:49 pm.

According to a PTI report, hours after it assumed office, the Y S Jaganmohan Reddy government in Andhra Pradesh Thursday decided to cancel all projects sanctioned prior to April 1, 2019, by the previous N Chandrababu Naidu government but work on which was yet to take-off.

It is noted that a number of engineering works were sanctioned earlier even by relaxing the Fiscal Responsibility and Budget Management Act norms, resulting in huge burden on the state exchequer. There is also a case for thorough review of ongoing projects as priorities have not been followed, added report. CLICK HERE TO READ FULL REPORT

NCC’s business divisions include buildings and housing, roads, electrical, water and environment, irrigation, railways, power, metals, mining.

The Hyderabad-based company had received new orders totaling to Rs 8,707 crore (exclusive of GST) during February and March 2019. These orders were received from Central/State government agencies and do not include any internal orders, the construction company informed BSE.

In the past seven months, the stock has outperformed the market by surging 57 per cent, as compared to 18 per cent rise in the S&P BSE Sensex till Thursday.