Jindal Steel & Power declined 1.12% to Rs 137.20 on reports the Coal Ministry has rejected the company's bid for a captive coal block in Chhattisgarh.
According to reports, the allotment of the Gare Palma IV/I to Jindal Steel & Power (JSPL) has been rejected in public interest due to low valuation. JSPL had emerged as the highest bidder for the coal block with a bid price of Rs 230 per tonne, a premium of 53% over reserve price of Rs 150/tonne.
The coal block would have helped JSPL's EBIDTA to rise by about Rs 500-900 crore, reports suggested.
Shares of JSPL declined 5.05% in three trading sessions to its current market price of Rs 137.20 from its recent closing high of Rs 144.50 on Wednesday, 11 December 2019.
The S&P BSE Sensex was up 48.35 points or 0.12% at 41,058.06.
In the past one month, shares of JSPL fell 5.63% to its current market price of Rs 137.20, underperforming the Nifty Metal index's 2.71% rise in the same period.
On the technical front, the stock's RSI (relative strength index) stood at 45.924. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock was trading marginally below to its 200-day moving average (DMA) placed at Rs 140.71, which acts as its resistance level for the near term. The 50-day moving average, on the other hand, was trading well below its current stock market price placed at Rs 128.91, acting as its closest support level.
On a consolidated basis, JSPL reported a net loss of Rs 300.50 crore in Q2 September 2019 as compared to 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. The other segment consists of aviation services and machinery division. The firm's product portfolio consists of steel product mix, construction solutions, and construction material and solutions.
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