SKS Microfinance removed from BSE A group

SKS Microfinance has hit yet another lower circuit of 5% on the fourth consecutive day.

The stock, which is currently trading at Rs 222 was, shifted from the elite A group to B group by the Bombay Stock Exchange (BSE) with effect from October 10, 2011. According to media reports, the microfinance sector in the country has shrunk by about 40% in past one year after the crisis began to unfold in Andhra Pradesh.

JP Morgan downgrades SKS Microfinance

JP Morgan has cut the price target of SKS Microfinance from Rs 550 to Rs 200 due to its poor business outlook.

JP Morgan expects that the company will report a loss of close to 700 crores in the current fiscal year.

The SKS microfinance stock has reacted to this downgrade and the stock has corrected more than 16% to Rs 345 this morning.