Shares of metal and mining companies such as Sesa Goa, Sterlite Industries, JSW Steel, Jindal Steel and Power and Kalyani Steels have rallied more than 5% each on reports that the government may lift ore mining ban in Karnataka this month.
"Some iron ore mines where no illegality has been found will be the first where mining will be allowed," according to orders by the Supreme Court, H.R. Srinivasa, the state's mines director and a member of a committee appointed by the court, the Bloomberg report suggests.
In April, the court ordered 45 mines to seek government approval to resume operations. Companies need an endorsement from the Ministry of Environment and Forests once their licenses have been checked, it said on April 20, added report.
Among individual stocks, Kalyani Steels has soared 20% to Rs 64.90 on back of over ten-fold jump in trading volumes. Sterlite Industries has surged 6%, followed by JSW Steel and Jindal Steel (up 5% each) on the Bombay Stock Exchange.