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JSPL hits 4-year low, stock plunges 8% in two days

Since April 25, the stock has declined 22% compared to 0.45% fall in Sensex after posting disappointing results for the March quarter and on weak demand concerns.

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SI Reporter Mumbai
Last Updated : Jun 11 2013 | 10:36 AM IST
Jindal Steel and Power Limited (JSPL) have dipped 4% to Rs 257 its lowest level since May 2009 on the Bombay Stock Exchange (BSE).

The stock has declined 8% in past two trading days on reports that the government has issued show cause notice to the company for not developing the mines allotted to them.

“The Coal Ministry on Friday issued show cause notices to 11 coal firms in the so-called coal scam case, including Jindal Steel and Power Ltd for not developing the mines allotted to them and sought an explanation for delays in production, failing which mines would be deallocated,” the PTI report suggests.

Meanwhile, the stock has underperformed the market by falling 22% from Rs 329 on April 25 after posting disappointing results for the March quarter and on weak demand concerns. The BSE benchmark index has declined a marginally by 0.45% during the same period.
 

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First Published: Jun 11 2013 | 10:34 AM IST

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