Shares of paper stocks tanked up to 12 per cent on the BSE on Thursday, extending their Tuesday’s decline of 7 per cent on news that the government has no immediate plan to ban single-use plastic items.
Individually, Star Paper Mills were locked in the lower circuit band of 10 per cent at Rs 140 on the BSE, while Ruchira Papers slipped 12 per cent to Rs 86. Shares of Orient Paper & Industries (down 10 per cent to Rs 27.60), Seshasayee Paper & Boards (down 8 per cent at Rs 185) and International Paper APPM (down 7 per cent Rs 318) were other stocks on the downside.
Originally, Prime Minister Narendra Modi had to outline six items on Wednesday, the 150th birth anniversary of Mahatma Gandhi, as part of a broader campaign to rid India of single-use plastics by 2022. Two officials, however, told news agency Reuters, that there would be no immediate move to ban plastic bags, cups, plates, small bottles, straws and certain types of sachets and instead the government would try to curb their use. READ REPORT HERE
In September, paper stocks rallied by up to 84 per cent on expectation of ban on single-use plastic. In comparison, the S&P BSE Sensex had added 3.6 per cent during the period.
Star Paper Mills had zoomed 84 per cent, while Pudumjee Paper had surged 80 per cent in the previous month. Meanwhile, Ruchira Papers, JK Paper, Emami Paper, Orient Paper, SI Paper and NR Agarwal Inds had gained in the range of 30 to 50 per cent.