Adani up 11%, JSW Steel continues to trade lower on bourses

Shares of Adani Enterprises made a smart comeback on the bourses today after the company contested the Karnataka Lokayuta report linking its name to illegal mining as "imaginary" and said it was intended to defame the firm.

The stock zoomed up by 10.39% to touch an early high of Rs 647 on the BSE. In the last trading session, the stock witnessed a sharp fall of 20.97%.

On the NSE, Adani's shares went up by 10.84% to touch a high of Rs 649.

"AEL or any entity in the Adani Group did not own and does not own or operate any iron ore mine in Karnataka or any part of the country... Linking AEL's name to any illegal iron ore mining is purely imaginary and intended to defame our name and drag us into an avoidable controversy," Adani said on Saturday.

Any illegal gratification or pay-off cannot be attributed to AEL as it has been a mere port operator, while cargo interest remained either with the miners or other parties, the flagship firm of infrastructure conglomerate Adani Group said.

Charging AEL of paying bribes and permitting illegal iron ore exports through the Belekere port in Karnataka, the Lokayukta in its report said the company "should be black-listed and barred from participating in any future contract, grant or lease, etc, by the government."

Meanwhile, shares of JSW Steel, which was also accused of adopting unethical practices in various deals, continued to trade under pressure.

JSW Steel was trading lower by 12.36% at Rs 678.50. The scrip touched a 52-week low of Rs 672 during intra-day trade.

In response to the Karnataka Lokayukta report, JSW Steel said all transactions related to iron ore in Karnataka were done in a "legally compliant" manner.