Jindal Steel and Power Ltd hits its 3 years low!

The after effects of CAG report are putting many stocks on rout. Jindal Steel and Power is one of them and its shares have hit a 3 years low today. The NSE shares touched a low of Rs.358.85/- and closed at Rs.359.15/-

Jindal Steel and Power Ltd NSE shares had fall 6.5% today hitting it's earlier lowest, of previous two sessions, since May 2009. It’s 3^rd day in a row that Jindal shares have slumped. It seems investors are holding to invest in companies who have been named in the Comptroller and Audit General report which was published earlier this month on August 17.

Not only Jindal, but the entire metal index got slashed today. Another reason for the dip accounts to the slowing demand due to low growth rate.

After-effects of CAG reports!

CAG reports are creating headlines and it would no wonder affect India’s already volatile stock market. The reports reveal losses amounting to billions of dollars being incurred. The government was accused for the losses.

These reports were on three sectors, viz. coal, power, and aviation. Coal blocks, Delhi's flagship airport, and power projects were allocated at a fraction of market prices, which cost the exchequer tens of billions of dollars in lost proceeds. Developers got the airport land at a tenth of its market value, thus gaining an undue profit of $4.3 billion. Had the allocation happened wisely, results would have been otherwise in the CAG report.

It is now the PM’s turn to receive a blow of negative criticism and the opposition is already seeking answer from the PM, even demanding his resignation, as he was linked to the coal allocation in favor of private companies. It is to wait and watch the effect of the CAG reports! But the effect on the India stock market was evident with the falling share price of those named by the CAG!