Ban effect: packaging cos stocks tank

They were hit by the govt's ban on the use of plastic for packaging gutka and tobacco products.

Hit by the government’s ban on the use of plastic for packaging gutka and other tobacco products,shares of plastic packaging firms nosedived by up to 10.04 per cent on the Bombay Stock Exchange today.

The Environment Ministry had yesterday issued a notification banning the use of plastic for packaging gutka and other tobacco products after it was pulled up by the Supreme Court for not implementing the law.

In a sharp reaction to the move,shares of Cosmo Films stock tumbled by 9.63 per cent to close at Rs 99 on the BSE. In intra-day trade,the stock tanked by 10.45 per cent to a 52-week low of Rs 98.10.

Story continues below this ad

Besides,profit-taking pulled down shares of container and packaging firm Uflex stock which dropped by 9.59 per cent.

Similarly,Polyplex Corporation shares slumped by 10.04 per cent and Jindal Poly Films shares went down by 2.71 per cent.

The Plastic Waste (Management and Handling) Rules,2011 also bans the packaging of foodstuffs in recycled plastic or compostable plastic.

Meanwhile,the BSE benchmark Sensex closed the day with a loss of 261.49 points at 17,775.70.