JSPL rises on commissioning 4th coke oven battery

Jindal Steel & Power (JSPL) rose 1.67% to Rs 143.40 after the company said it commissioned its fourth coke oven battery at Angul steel plant in Odisha.

JSPL said it has commissioned its fourth coke oven battery at Angul plant making it self-sufficient in coke requirement. The coke oven consists of four batteries of 45,000 tons each per month will be producing a total coke of 2.0 MTPA. This plant is feeding coke to India's largest blast furnace having 4554 cubic meter volume which is already in operation at Angul and 2 blast furnaces at Raigarh in Chattisgarh.

JSPL conceived and commissioned the world's first Syn. Gas-based DRI plant at Angul. The plant is based on a concept of making steel through coal gas based direct reduced iron (DRI) and electric arc furnace route (EAF) route using high ash Indian coal to produce Syn. Gas for DRI.

Just before the commissioning of the plant, the coal mines allocated to JSPL to run its gasification plant were cancelled by the Supreme Court. This setback compelled JSPL to install a conventional steel making facility through Blast Furnace (BF)/basic oxygen furnace (BOF) route. The announcement was made during market hours today, 11 December 2019.

Meanwhile, the S&P BSE Sensex was up 159 points or 0.39% to 40,398.45.

In the past one month, shares of JSPL declined 4.90% to its current market price of Rs 143.40, underperforming the Nifty Metal index's 3.42% fall in the same period.

On the technical front, the stock's RSI (relative strength index) stood at 51.805. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was currently trading above its 50-day moving average (DMA) placed at Rs 126.61, as well as above its 200 DMA placed at Rs 140.73.

On a consolidated basis, JSPL reported a net loss of Rs 300.50 crore in Q2 September 2019 compared with net profit of Rs 137.88 crore in Q2 September 2018. Net sales fell 10.4% to Rs 8,939.47 crore in Q2 September 2019 over Q2 September 2018.

JSPL's segments include iron & steel, power and other.

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