Jindal Steel jumps up

Jindal Steel & Power is up amongst the top newsmakers and gainers on the bourses. The stock which had closed yesterday at Rs.81.60, went on to an intra day high of Rs.94.10 and is currently at Rs.88 levels, up over 8%.

The market is thrilled that the Competition Commission of India (CCI) went on to give a clean chit to the company, bringing a closure to allegations of cartelization.

The CCI said that it has not found any evidence which support this allegation. This comes a little late as it was based on this allegation of cartelization during auctions that the Govt cancelled four coal mine bids for Jindal Steel and Balco.

But this CCI probe left a telling damage on its financial performance. The company had ended Q2FY16 with a net loss of Rs.618 crore, mainly on account of the high cost of purchased coal.