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Power shares under pressure; Tata Power, Adani Power down over 3%

Reliance Power, JP Power, CESC, Torrent Power, JSW Energy, NHPC, NTPC and JSW Energy down 1-5% on BSE.

SI Reporter  |  Mumbai 

Shares of power manufacturers are under pressure, falling by up to 5% on the Bombay Stock Exchange (BSE), after on Monday declared allocations between 1993 and 2010 as illegal.

Tata Power, Adani Power, Reliance Power and Jaiprakash Power Ventures are down 3-5%, while CESC, Torrent Power, JSW Energy, NHPC, NTPC, JSW Energy and Reliance Infrastructure are down between 1-2% on BSE.

S&P BSE Power index, the largest loser among sectoral indices, was down 1.5% compared to a marginal 0.03% gain in the benchmark S&P BSE Sensex at 1020 hours.

“The allocation scam’s verdict likely to hit profitability and margins of metals and mining companies who have been invested billions of dollars on steel and power plants based on the coal blocks”, says analyst at Equentis Capital.

Final verdict on the issue will come out on next hearing on 1 September 2014 in which court will decide whether to cancel the allocations or impose some penalty.

Meanwhile, the on Monday stayed an order allowing and the Adani group to charge higher electricity tariffs on account of a rise in the cost of coal.

Among the individual stocks, was down 4.4% at Rs 50.50 and by 3.5% at Rs 87.20 on BSE.

Reliance Power and JP Power (down 4.5% each at Rs 78.80 and Rs 15 respectively), Torrent Power (2% at Rs 128) and JSW Energy (1.7% at Rs 75) were the prominent losers among power sector.
 

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