Zinc stocks have been consistently falling for the last three months and the key zinc producing companies have witnessed a drastic decline in the share prices.
The shares have fallen as much as 50 per cent since July. The stocks prices have co-related with the fall in zinc prices in the last three months on the London Metal exchange (LME). The LME zinc prices are important because the domestic zinc producers benchmark their prices on monthly LME average.
The Sterlite-managed Hindustan Zinc has lost more than 50 per cent during last three months from Rs 33.50 on July 1, to Rs 17.05 on the BSE today. In April 2002, the Centre sold the 26 per cent stake in HZL for Rs 445 crore (Rs 40.51 per share). The management control currently vests with the Sterlite group.
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Binani Zinc has fallen the most in the last three months. It ended the day on Bombay Stock Exchange (BSE) today at Rs 19.75 after falling 37.89 per cent in the last three months.
Zinc user companies such as Precision Wires ended the day today at Rs 17.85, down 30 per cent from its price three months ago on the BSE. Shivalik Bimetals Controls ended the day today unchanged from yesterday at Rs 30.05, down 19.22 per cent from its price three months ago.
SWIL closed 1.98 per cent lower from its three month price, at Rs 7.70 per cent while Tinplate Company closed at Rs 11.30, down 31.09 per cent from its three month closing.