Companies with Brazil exposure slide post S&P downgrade

Standard & Poor's downgraded Brazil to junk status

Shares of Indian companies with exposure to Brazil witnessed selling pressure today after Standard & Poor's (S&P) downgraded the Latin American country to junk status.

Companies with exports to Brazil saw heavy selling, led by Torrent Pharma, which settled for the day with losses of 4.83%.

During the day, the stock had slumped 5.29%.

Other losers included Glenmark (down 1.59%), Cadila Heathcare (down 0.31%), Shree Renuka Sugars (down 0.27%), UPL (down 4.53%) and Lupin (down 0.78%).

Other companies which have exposure to Brazil include KEC International (down 0.36%) and Havells India (down 2.66%).

S&P cut Brazil's sovereign credit rating to junk status on Wednesday.

According to the rating agency, extreme political challenges for President Dilma Rousseff "have continued to mount, weighing on the government's ability" to shore up its finances.

According to market analysts, the downgrade, though widely expected, came earlier than many forecast and would impact companies which have exposure to the Latin American country.

Meanwhile, two-wheeler major Hero MotoCorp has announced plans to set up manufacturing facilities in Mexico, Argentina and Brazil.

Shares of the company settled 0.16% down at Rs 2,343.95 apiece on the BSE.