With Mundra incurring losses and resolution of higher costs not likely soon, stock could feel pressure

The Tata Power stock has underperformed broader markets in the current quarter, a trend likely to sustain, going ahead, due to concerns over its Mundra power project and stock valuations. Against a two per cent rise in the Sensex, Tata Power’s stock is down almost six per cent in the quarter so far. The 4,000 Mw Mundra ultra mega power project (UMPP) (set up under Coastal Gujarat Power Limited (CGPL) reported a net loss of Rs 165 crore in the June 2012 quarter, which was ahead of analysts’ estimates.