Metal stocks rebound; Hindalco up 3%

Metal shares which had lost ground post the SC verdict have rebounded on short covering and value buying at lower levels

Metal shares which had fallen sharply in the previous sessions following the Supreme Court verdict have rebounded on the back of short covering and value buying at lower levels.

The Supreme Court cancelled all coal block allocations except for government-run blocks that operate on a non-JV basis.

The government has cancelled coal blocks for companies like Jindal Steel and Power (JSPL), Hindalco, Usha Martin, Sarda Energy, Jayaswal Neco Industries, Monnet Ispat & Energy, GMR Infrastructure, Prakash Industries etc.

Hindalco is set to pay a Rs 500- crore fine after the Supreme Court cancelled the coal blocks, Talabira I and Mahan, allotted to the company and levied a Rs 295 a tonne penalty on all coal blocks in production till now.

Jindal Steel and Power had also dropped over 15% in the previous few sessions as the company is likely to pay a huge penalty.

Among individual stocks, Hindalco, SAIL, Tata Steel, Bhushan Steel, JSW Steel were up 2-3%  each. However, Jindal Steel was down 1%.