Sterlite Industries tumbled over 8 per cent in the early trade on the BSE today, on the back of Madras High Court ordering the company to close its copper smelter plant in Tuticorin on environmental grounds.
Reacting sharply to the move, shares of Sterlite, a subsidiary of UK-based Vedanta Group, went into a tailspin and plunged 8.21 per cent to hit an intra-day low of Rs. 162 per piece on the Bombay Stock Exchange.
Sterlite Industries was ordered by the Madras High Court to close its copper smelter plant in Tuticorin. The court held that the facility should be closed because of its proximity to an ecologically fragile area and has also faulted Sterlite for not developing a green belt around the plant in southern Tamil Nadu.
On the National Stock Exchange as well, the company suffered a loss of 6.50 per cent to trade at Rs. 164.80 per scrip.
However, other metal companies, like Tata Steel was quoting higher by 1.30 per cent at Rs. 660.25, Hindalco 0.66 per cent at Rs. 197.10, Jindal Steel 0.24 per cent at Rs. 710.60 a share.
But, surge in these stocks failed to lift the BSE metal index, which was trading lower by 79.11 points at 16,974.89, while the broader gauge Sensex was quoting at 20,089.73.