 "L&T falls 2% on brokerage downgrades")
Larsen & Toubro shares were down 1.7 percent after Citigroup and Barclays downgraded the engineering conglomerate on concerns over order cancellations and weak investment cycle.
Citi downgraded L&T to ’neutral’ from ‘buy’ and cut its target price to Rs 1,732 from Rs 1,855 , citing cancellations in the second quarter of fiscal 2013, slow-moving orders, as well as weaker domestic economic growth.
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Reuters[/caption]
Barclays downgraded L&T to ’equal-weight’ from ‘overweight’ and cut target price to Rs 1,750 from Rs 1,851.
The bank said that it expects L&T to meet its fiscal 2013 guidance but cautions that weakness in the investment cycle in fiscal 2014 will post a risk to order estimates.
Reuters