Stocks of cos affected by verdict rattled as benchmarks end flat
Despite losing over 200 points in intra-day trade following the Supreme Court verdict, the benchmark BSE Sensex rallied to end at 26,744.69 points, recording a fall of 31 points.india Updated: Sep 25, 2014 00:05 IST
Despite losing over 200 points in intra-day trade following the Supreme Court verdict, the benchmark BSE Sensex rallied to end at 26,744.69 points, recording a fall of 31 points.
Blue chip stocks such as Hindustan Unilever (up 2.87%) and Cipla (up 2.62%) contributed to the Sensex’s recovery. Buying was also seen in fast-moving consume goods healthcare, and oil & gas sectors. The mid-cap index lost 1.19% and the small-cap index dropped by 1.62%
Stocks that were adversely affected by the verdict include Jindal Steel and Power Ltd (down 9.99%), Bhusan Steel (4.96%), Tata Steel (2.63%), Monnet Ispat (8.16%) and Steel Authority of India (2.89%).
Lenders also bore the brunt of the ruling, with State Bank of India declining 2.68%.
However, Coal India gained 5.02% riding on the verdict, as did Reliance Power, (up 5.34%) whose ultra-mega power project in Sasan, Madhya Pradesh, was spared by the court. The verdict also spared an allocation to NTPC, whose stock also gained by 0.91%.
“The Supreme Court cancelled all allocations except government run non-JV operated blocks. Existing operational blocks can continue till March 2015 and would be transferred to Coal India till the coal blocks are auctioned,” said Amar Ambani, head of research at India Infoline.
The National Stock Exchange’s 50-share Nifty also closed flat at 8002.40 points, down 15.15 points by 0.19%.