Re-allocation of coal blocks a temporary setback for JSPL, Usha Martin: P Phani Shekhar

In a chat with ET Now, P Phani Sekhar, Fund Manager - PMS, Karvy Stock Broking, shares his view on the likely impact of coal-reallocation on stocks like JSPL and Usha Martin.

ET Now: Would you be able to comment on the companies which have been impacted because of the reallocation of coal blocks? I would probably think of two. I do not know whether you cover Usha Martin, but certainly you have a thought on Jindal Steel. Am I right?

P Phani Sekhar: There was aberration in the trend, considering the prices at which a couple of these coal blocks were bought. I would not have been surprised, if there were some public interest litigations regarding the same.

Some action would have surely happened. To that extent, considering the larger environment we are in, I guess the government played safe and moved pro-actively. Since, this case is likely to receive judicious scrutiny, I guess whatever happens from hereon will be dependent on what the honourable court says. But. other than that, it is a temporary setback for these companies because they got very good deals. Let us see what happens from now on.