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MARKET EYE-India's L&T falls on brokerage downgrades
January 8, 2013 / 5:47 AM / 5 years ago

MARKET EYE-India's L&T falls on brokerage downgrades

* Larsen & Toubro Ltd shares are 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 1,732 rupees from 1,855 rupees, citing cancellations in
the second quarter of fiscal 2013, slow-moving orders, as well
as weaker domestic economic growth. 
* Barclays downgraded L&T to 'equal-weight' from 'overweight'
and cut target price to 1,750 rupees from 1,851 rupees.
* The bank says 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.

 (manoj.dharra@thomsonreuters.com;
manoj.dharra.reuters.com@reuters.net)

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