Friday, August 17, 2012

CAG REPORT : Reliance Power Plunged, Nifty on 21 August

Indian share market sank after the CAG Report. Comptroller and Auditor General (CAG) gave its report on coal scam. In a report, tabled in Parliament, CAG said 25 firms including Essar Power, Hindalco, Tata Steel, Tata Power and Jindal Steel and Power were benefited to the tune of Rs 1.86 lakh crore from coal blocks allocated to them on nomination basis, instead of competitive bidding. 

The explosive Comptroller and Auditor General (CAG) report on the alleged malpractices in the allocation of coal blocks was on Friday tabled in the Parliament. The report has pegged the loss caused due to irregularities in coal block allocations atRs. 1.86 lakh crore. The initial CAG draft report had estimated the loss at Rs. 10.7 lakh crore.

The major beneficiaries included Tata Group entities, Jindal Steel & Power, Anil Agarwal Group companies, Essar Group's power ventures, Adani Group, Arcelor Mittal and Lanco group. Reliance Power plunged 5.6% and Reliance Infrastructure was down 3% after the CAG said the Anil Ambani-led firm got undue benefit of Rs 29,033 crore when the government allowed use of surplus coal from blocks alloted to Sasan power plant for its other projects. 

Reports stated that the company is developing a 4000 MW project at Sasan in Madhya Pradesh and was allotted captive blocks to fuel this project. The stock is currently trading at Rs87, down Rs5. The stock has hit a high of Rs 94 and a low of Rs 86.

INDIAN SHARE MARKET TREND ON TUESDAY 21 AUG

Indian share market is expected to open lackluster after a long 3 days weekend followed by EID on Monday 20th August. CAG Report will show its effect on next week too. Shares which are efffected by this scam will trade down. Traders and investors are advised not to take any positions in these stocks. Keep a close eye on Reliance shares as this is the stocks which will show volatility on the index.

WHICH STOCKS TO BUY ON TUESDAY 21 Aug CLICK HERE


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