Cummins India is bleeding red, know why!

At one point in the day, it slipped below its important psychological mark of Rs 900.

The stock of Cummins India is down by nearly 9 per cent and at one point in the day, it slipped below its important psychological mark of Rs 900. The stock had opened at the levels of Rs 987.90 and made a low of Rs 878.15 on NSE.   

The major reason why the stock is bleeding red is due to the Draft Electricity (Rights of Consumers) Amendment Rules, 2021. In view of the increasing pollution level particularly in the metros and other large cities, the distribution licensee shall ensure 24x7 uninterrupted power supplies to all the consumers, so that there is no requirement of running the diesel generating sets.  

Further, it has been notified that consumers, who are using the diesel generating sets as essential backup power, shall endeavour to shift to cleaner technology such as RE with battery storage, etc in five years from the date of the publication of this amendment or as per the timelines given by the State Commission for such replacement based on the reliability of supply by the distribution company in that city.