Scam effect: JSW dips 10%, Adani rises 9% | business | Hindustan Times
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Scam effect: JSW dips 10%, Adani rises 9%

JSW Steel and Adani Enterprises, two companies named by the Karnataka Lokayukta in the mining scam linked to former chief minister BS Yeddyurappa, had a completely contrasting day in the market on Monday. Shrenik Avlani reports.

business Updated: Aug 01, 2011 21:38 IST
Shrenik Avlani

JSW Steel and Adani Enterprises, two companies named by the Karnataka Lokayukta in the mining scam linked to former chief minister BS Yeddyurappa, had a completely contrasting day in the market on Monday.

While JSW Steel's stocks plunged over 12% to a 52-week low of Rs 672 during intra-day trading due to fears of the Bellary mining ban affecting it's production, Adani's stocks rose 11% to a high of R647 after the company denied any links with illegal mining and challenged the Lokayukta report.

JSW Steel recovered marginally to close at Rs 694.8 down 10% while Adani Enterprises ended the day at Rs 637.8, up 8.8%.

"In case of Adani Enterprises, has been accused of illegal export of iron ore, the issue is only a matter of corporate governance. In case of JSW Steel, the closure of mines directly affects production in their units. That explains the sharp drop in its share prices," said Bhavesh Chauhan, a research analyst at Angel Broking.