UBS downgrades Tata Power to 'sell' citing Mundra project

Reuters Market Eye - UBS downgrades Tata Power Company Ltd to "sell" from "buy" and reduces its target price on the stock to 70 rupees from 105 rupees, citing the drag on profits from its Mundra Ultra Mega Power Project.

India's electricity regulator allowed Tata Power, a unit of the Tata conglomerate, to raise tariffs for power generated at its Mundra plant in the state of Gujarat.

The company, however, must first agree on the increase with officials from the states it supplies electricity to.

(Reporting by Abhishek Vishnoi)