United Spirits shares fall; Credit Suisse downgrades

Shares in United Spirits Ltd fell 0.6 per cent after Credit Suisse downgraded the stock to "neutral" from "outperform", citing a lack of immediate triggers. Credit Suisse said the spirits maker has already agreed to sell Whyte & Mackay to Emperador Inc, while Diageo Pls has raised its share offer.

United Spirits' stock price fell 3.2 per cent so far this month as of Wednesday's close, underperforming a 6.2 per cent gain in the NSE index. Shares in the spirits maker had a strong run in the previous two years, surging 286 per cent in 2012 and 37 per cent in 2013, in a rally that peaked with a record high hit on April 15.

Credit Suisse said United Spirits now faces risks such as intensifying competition and state government price controls, as well as broader economic risks such as commodity inflation.