JSPL down in the red

Jindal Steel & Power (JSPL) is down in the red. The stock price has slipped almost 9% at Rs.199.50. The stock’s high and low stands at Rs.294.15 and Rs.112 respectively.

The stock price has slumped today after special court has ordered framing of an additional charge of abetment of bribery against Chairman, Naveen Jindal and others in a case pertaining to irregularities in the allocation of the Gare Palma IV/1 coal block in Jharkhand. The CBI had earlier questioned Jindal on allegations of cheating and corruption.

Thus Naveen Jindal is now facing an additional charge for abetment of bribery in the coal scam case.

Analysts are of the opinion that there would be no impact of this case directly on the workings of the company but indirectly, the negative sentiments on account of this name shaming of Naveen Jindal will lead to a slump in the price. Added to this woe is the poor show put up by metal stocks on account of the trade war.