JSPL top loser on Nifty; stock slips nearly 15% in October

NEW DELHI: Jindal Steel & Power Ltd (JSPL) slipped nearly 4 per cent in trade on Tuesday and was also the top loser on Nifty index, after falling nearly 8 per cent in the previous session following reports that the CBI has started a fresh inquiry against unknown officials for alleged diversion of forest land in Jharkhand for mining purposes.

The probe is for alleged irregularities between 2007-13 in granting clearance to JSPL for diversion of Saranda forest land in Jharkhand for mining purposes, PTI reported.

Reacting to the news, JSPL continued its southward journey for second day in a row. The stock has fallen nearly 15 per cent (intraday) so far in the month of October.

At 09:30 a.m.; JSPL was trading 3.5 per cent lower at Rs 147.25. It hit a low of Rs 146.50 and a high of Rs 151 in trade today.

According to experts, investors and traders should stay away from stocks where there is cloud of uncertainty and look for stocks with a clean track record.

"When you have a cloud of uncertainty, always stay out whether it is JSPL or whether it is a DLF. These are stocks where the temptation is always going to come in the minds of traders and retail investors," says Mehraboon Irani, Principal & Head- Pvt Client Group Business, Nirmal Bang Securities.

"There are always decent stocks which do not have any sort of controversy behind them. Those can be picked into," he added. Despite the fact that I like the stock at 220-230, I do not think I am going to come out and recommend the stock, clarifies Irani.

Saranda, a sensitive area that was under Maoist control for a decade before paramilitary forces took over in 2011, is also home to elephants, giant squirrel, reptiles, sloth bear and barking bear and is in the core area of the elephant reserve, added the PTI report.

Meanwhile JSPL said in a statement on Monday that it will respond to queries by the investigating agencies.

"JSPL reiterates that we have always co-operated with the investigative agencies and will respond when we receive these queries from the investigative authorities," the statement said.

According to reports, nearly 512.43 hectares of ecologically sensitive Saranda forest in West Singhbhum district of Jharkhand was diverted for Ghatkuri iron ore mining lease project in favour of Jindal Steel and Power.