Metal & mining stocks drop after Supreme Court verdict

Ten stocks from metal and mining sector lost between 0.74% to 11.48% at 14:34 IST on BSE after the Supreme Court today, 24 September 2014 cancelled 214 of 218 coal blocks allocated by successive governments since 1993.

Among metal and mining stocks, Jindal Steel & Power (down 11.48%), Hindalco Industries (down 3.28%), Bhushan Steel (down 4.96%), Tata Steel (down 2.78%), Sesa Sterlite (down 0.98%), JSW Steel (down 1.03%), NMDC (down 1%), Steel Authority of India (Sail) (down 1.69%), Hindustan Copper (down 2.5%) and National Aluminium Company (down 0.74%) edged lower. Hindustan Zinc rose 0.28%.

The Supreme Court today, 24 September 2014 cancelled 214 of 218 coal blocks, which were allocated to companies illegally. The 4 coal blocks which are exempt from the verdict are run by the Central government with no joint venture with the private sector. The order will be operational after 6 months, the apex court said, adding that the government could hold auctions for these blocks post 31 March 2015.

A bench headed by Chief Justice R M Lodha last month had held that all coal blocks allocations since 1993 by various regimes at the Centre have been made illegally and arbitrarily. However, it had stopped short of cancelling them saying, what the consequences will be is the issue which remains to be tackled.

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