Adani Ports, Lanco Infra, Punj Lloyd hit by port report

INFRASTRUCTURE-STOCKS-HIT-BY-PORT-REPORT:Adani Ports, Lanco Infra, Punj Lloyd hit by port report

 

Reuters Market Eye - Shares in Adani Ports and Special Economic Zone, Lanco Infratech and Punj Lloyd fall after The Economic Times reports home ministry has barred them from participating in two major port projects because of security concerns.

The business newspaper reported in its Monday edition that Adani Ports and Punj Lloyd have been denied security clearance for the coal import terminal at Mormugao Port in Goa, while Lanco has been denied permission for the cargo berth facility at Tuticorin Port in Tamil Nadu.

Lanco Infratech declined to comment, Punj Lloyd was not immediately available for comment, while Adani Ports referred to its comments to the newspaper, when contacted by Reuters.

 

Economic Times quoted Rajeeva Sinha, a director at Adani Ports, as saying: "We are not aware that the ministry of home affairs has denied national security clearance to APSEZ to participate in the terminal development projects in Mormugao and Tuticorin Ports."

The news is not likely to impact the valuation of the stocks as these projects are not yet awarded to these firms, an analyst at a domestic brokerage says, but the news hits sentiment.

Adani Port is down 3.2 percent, Punj Lloyd falls 1.5 percent while Lanco Infra is also down 2.5 percent.