Six metal stocks rose 0.62% to 3.01% at 12:11 IST on BSE, with these stocks reversing Monday's slide triggered by the Supreme Court terming the method of allotment of coal blocks between 1993 and 2011 as illegal.
The S&P BSE Metal index was up 58.04 points or 0.47% at 12,349.42. The index outperformed the Sensex, which was down 0.2% at 26,384.15.
Many metal and mining stocks reversed initial decline amid high intraday volatility. Among metal and mining stocks, Hindalco Industries (up 3.01%), Tata Steel (up 2.61%), JSW Steel (up 1.79%), Steel Authority of India (Sail) (up 1.48%), Hindustan Zinc (up 1.01%) and Sesa Sterlite (up 0.62%) edged higher.
Bhushan Steel (down 4.99%), Jindal Steel & Power (down 4.33%), Hindustan Copper (down 1.31%), NMDC (down 1.17%) and National Aluminium Company (down 0.93%) declined.
The S&P BSE Metal index had lost 4.34% to settle at 12,291.38 on Monday, 25 August 2014. Shares from the metal and mining sector dropped on Monday, 25 August 2014 after the Supreme Court on Monday, 25 August 2014 termed the method of allotment of coal blocks between 1993 and 2011 as illegal. The allocations had no "objective criteria" and "no fair and transparent procedure", the judges said, adding they were impermissible. The quashing of these allocations still remains to be decided in further hearings. The court suggested the appointment of a panel of retired apex court judges to help the court in this matter. The case will be heard on 1 September 2014. The Supreme Court further disallowed exploitation of captive mines by ultra mega power projects, adding that captive mines cannot be used for commercial purposes.
The S&P BSE Metal index had underperformed the market over the past one month till 25 August 2014, declining 6.88% compared with 1.19% rise in the Sensex. The index had also underperformed the market in past one quarter, falling 1.97% as against Sensex's 7.06% rise.
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