Shares of CG Power and Industrial Solutions Ltd. are down another 7% on Friday, November 6, extending their losses from the 4% fall that the stock had seen during Thursday’s trading session.
With this, CG Power shares are down 10% across Thursday and Friday.
Why Are CG Power Shares Down On Friday?
CG Power is known to be one of the contributors to the data center buildouts globally and with the unwinding seen across the globe for the stocks, the Indian entities have also borne the brunt.
The AI related shares are selling off across the globe after the Democrats swept the Congress during the US midterm polls, Fears of the Democrats bringing a halt to the data center build outs going forward has triggered the sell-off, across Thursday and Friday.
Why CG Power Shares Fell On Thursday?
CG Power shares, fell over 5% on Thursday, November 5, after the company disclosed that the Maharashtra Pollution Control Board (MPCB) had directed it to shut down manufacturing operations at its unit in Chhatrapati Sambhajinagar.
In an exchange filing, CG Power said it had received a direction from the MPCB ordering the closure of manufacturing operations at its MIDC unit in Chhatrapati Sambhajinagar. The directive has been issued under the Water (Prevention and Control of Pollution) Act, 1974 and/or the Air (Prevention and Control of Pollution) Act, 1981, along with the rules framed under these laws.
Responding to the development, the company said it was committed to complying with all applicable environmental laws and regulations. It added that it was reviewing the direction and would take appropriate action.
CG Power said the financial impact of the directive could not be ascertained at this stage.
Shares of CG Power are trading 7% lower on Friday at ₹753. The stock has trimmed its year-to-date gains now down to 18%, as a result of the 17% fall seen in the last one month.
CG Power share price falls 10% in two sessions – Here are the factors contributing to it