Shares of the state-run and world’s largest coal miner Coal India were the top gainers on the S&P BSE Sensex on Tuesday after the PSU said its board has approved a hike in non-coking coal prices. With this revision in coal prices, the PSU company was in a win-win situation as the coal mining giant gained about Rs 13,000 crore in market capitalisation and an additional Rs 1,956 crore in revenue. The Kolkata-based coal explorer Coal India said that its board has approved a hike in non-coking coal price for both power and non-power consumers. The board of directors of Coal India in its meeting held on 8 January 2018 has approved the revision of non-coking coal prices w.e.f. 00:00 hours of 9 January 2018, Coal India said in an exchange filing. “This will be applicable to all subsidiaries of Coal India including NEC for regulated and non-regulated sectors,” Coal India added.
Due to this revision, CIL will earn an incremental revenue of Rs 1,956 crores for the balance period of the financial year 2017-18. The projected annual incremental revenue would be Rs 6,421 crores. Following the development, shares of Coal India surged as much as 8.19% to the day’s high of Rs 311 on NSE while the stock gained 7.69% to the day’s high of Rs 310 on BSE on Tuesday. In the opening trades, Coal India shares advanced 4.26% to Rs 299.7 on NSE. Due to a sharp spike in the share prices, Coal India’s added as much as 13,747.15 crore to Rs 1,92,398 crore in the market capitalisation at the day’s high price on BSE.
As per yesterday’s close of Rs 287.85, Coal India commanded a market capitalisation of Rs 1,78,650.9 crore. Coal India shares were trading up 6.14% at Rs 305.1 on NSE. A huge trading volume was observed in the shares of Coal India, as at 2:50 pm, more than 2.51 crore shares exchanged hands on both NSE and BSE with about 2.5 crore shares on NSE alone.
Meanwhile, the benchmark equity indices Sensex and Nifty kissed fresh peaks on Tuesday but quickly pared off the gains as investors turn cautious ahead of major Q3 earnings due tomorrow and the macroeconomic data scheduled for later this week. BSE Sensex rose as much as 134.73 points to hit an all-time high of 34,487.52 while NSE Nifty added 35.55 points to mark the record high of 10,659.15.