Sesa Sterlite falls; Goa order upside limited: Deutsche Bank

Sesa Sterlite shares fell as much as 3.59 per cent, bucking postive broader indices. The Supreme Court gave the go-ahead on Monday for the auction of around 11.46 million tonnes of iron ore already mined in Goa state, potentially doubling the country's exports this year to top market China if overseas sales are allowed.

However, the Supreme Court has maintained a 14-month ban on iron ore mining in top producing state Goa. Sesa, India's top private-sector mining company, would be the biggest beneficiary if mining resumed in Goa, as it is the largest producer in the state.

Deutsche Bank said there is limited upside potential for the company from the apex court order as the decision reiterates concerns that mining resumption in Goa is likely to take time, and could be significantly lower than before ban.

The research house maintained its "hold" rating on the stock with a 12-month price target of Rs 175.

Sesa Sterlite was trading down 3.2 per cent to Rs 192 at 11.27 am.

Copyright: Thomson Reuters 2013