ALSO READSC stays compensatory tariff for Adani, Tata Coal fire - 6: Coal block rejection a blessing in disguise for Adani Power JSPL tanks 20% in two days after Supreme Court order on coal block allocation SC ruling on coal block allocation sees JSPL, Hindalco slip nearly 10% Adani to sign pact for 2,500 Mw power plant soon
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 coal block 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 Supreme Court on Monday stayed an order allowing Tata Power and the Adani group to charge higher electricity tariffs on account of a rise in the cost of coal.
Among the individual stocks, Adani Power was down 4.4% at Rs 50.50 and Tata Power 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.