BPCL shrugs off the "mood"

Yesterday, Moody’s announced that it is putting BPCL under a watch for a rating downgrade on government's decision to sell its entire 53.29% stake in BPCL and transferring the management control to a strategic buyer.

The report stated, “Post the government's stake sale, we will not include the two-notch uplift from government support in BPCL's rating. This could result in a downgrade of BPCL's ratings to Ba1, assuming there are no changes to its fundamental credit profile, including our assessment of liquidity and refinancing risk which could impact the BCA.”

Yesterday, the stock closed in the red at Rs.496.30 but today, it seems to have shrugged of the “mood” and went on to the days high point at Rs.502.30; it has slipped from there and is now trading at Rs.499 levels, nevertheless in the positive.