Cos with exposure to Chennai hit; stocks down up to 6.4%

Cos with exposure to Chennai hit; stocks down up to 6.4%
Shares of companies with exposure to Chennai came under selling pressure, falling as much as 6.4 per cent today, as incessant heavy rains there and other parts of Tamil Nadu hit their operations. A large number of companies across sectors such as Infosys, TVS Motor, Madras Fertilizers and Natco saw their stocks decline by as much as 6 per cent.

Shares of TVS Motor Company plunged 4.87 per cent to Rs 289.20 on BSE. "Incessant rains for the past three weeks in Chennai have had an adverse effect on company's production during this period. The company suffered sales loss of approximately 15,000 units due to inclement weather," TVS Motor said yesterday.

The stock of Natco Pharma fell by 1.41 per cent to Rs 516.85. Natco Pharma today said its active pharmaceuticals ingredient (API) plant at Chennai has suspended operations due to flooding caused by rains.

Heavy downpour has hit operations of IT companies in Chennai -- one of the leading IT destination in the country.

Most of the offices in the city, including that of IT companies, remained closed today due to heavy rains with leading Indian firm Infosys deciding to remain closed tomorrow as well due to flooding at its premise.

"In light of the rains and flooding in Chennai, Infosys campuses in the city were closed on December 2 and we have also declared a holiday on December 3. Our teams in Chennai have been working with local authorities to get employees stranded across the city to return home safely," Infosys spokesperson said.

Infosys stock was down 1.53 per cent to Rs 1,060.20. Others such as Madras Fertilizers tumbled 6.35 per cent to Rs 16.95, India Cements declined by 2.43 per cent to Rs 88.45 and Chennai Petroleum Corporation were down 0.93 per cent to Rs 201.45.

"Shares of companies based in Chennai took a sharp hit as heavy flooding in the region paralysed operations across many sectors. Chennai is a major auto manufacturing and IT outsourcing hub for companies," an expert said.

Chennai and several coastal areas of Tamil Nadu were today marooned in flood waters following incessant heavy rains that pounded the city and the neighbouring districts cutting the state capital from rail and road links even as the airport was shutdown for the day.

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