ABB shares down 3.8% on gloomy outlook

MUMBAI: Shares of ABB India were weak in Tuesday���s trading after peer Areva T&D India, one of the leading players in the power transmission and distribution segment in here, painted a gloomy outlook for the sector in a recent conference call.

"In the Areva T&D post results conference call the management clearly mentioned that orders are being cancelled, orders are being deferred, some players have started panicking and have started undercutting on prices as orders become harder to win and working capital situation is deteriorating system-wide, which will increase interest costs," Citigroup said in a report on ABB. The investment bank has rated ABB a sell, while cutting the price target to Rs332.

At 2:30 pm on Tuesday, ABB shares were down Rs15.05 or 3.76% at Rs400.35.