Relief rally in JSPL, Hindalco as Supreme Court's comments on coal blocks

MUMBAI: Shares of Jindal Steel and Hindalco surged in trade following media reports on Supreme Court's comments on coal block allocations.

According to reports, the Supreme Court while hearing arguments on coal block allocation has said there is no controversy on scrapping coal block award where no work done.

This indicates that the already operational coal blocks will not be de-allocated, say analysts.

JSPL and Hindalco had plunged last week after the Supreme Court ruled that all coal block allocations post 1992 were illegal.

An analyst tracking the sector said these stocks have already fallen as the market factored in worst case. This is relief rally as it seems operational coal blocks will not be taken away.

According to reports, Attorney General has told the apex court that at least 46 coal blocks are operational and cancellation of these blocks is inappropriate.

Power situation is critical so don't refer the matter to a committee as it delays decision, the AG has been quoted by agencies.

He told the court that the government is ready for auction of blocks that stands cancelled.

The final verdict from the Supreme Court is awaited.

At 03:00 p.m.; Jindal Steel was at Rs 251.30, up 7.74 per cent. It surged 8.4 per cent to touch intraday high of Rs 252.90.

Hindalco was at Rs 176.80, up 3.94 per cent. It rallied 5.20 per cent to touch intraday high of Rs 178.95.