Why Hindalco Shares Are Down 6% Today

Hindalco shares fell over 6 per cent to hit an intraday low of Rs 72.75 on Tuesday. The stock underperformed the metals sub-index on the Bombay Stock Exchange, which closed nearly 4.2 per cent lower.

Hindalco owned by the Aditya Birla group is likely to face an investigation for allegedly paying money to secure environmental clearance, sources told NDTV. (Click here for full report)

Sources say the CBI has, in a report to the Supreme Court, recommended a preliminary inquiry against Hindalco. The CBI is investigating alleged irregularities in the allotment of a coal field to Hindalco in 2005, when then prime minister Manmohan Singh was in charge of the coal ministry.  

Accused of manipulating the government, Hindalco had said in a statement that it made its case during its bid to get access to the coal field "in a transparent and lawful manner".

Shares of Hindalco ended 6.3 per cent lower at Rs 73.20.