 "Coal India defies downtrend in market, closes 3% up")
Mumbai: Defying a broader downtrend in the stock market, shares of state-run Coal India Ltd (CIL) today closed with a gain of nearly 3 percent, ending its four-day losing streak on the bourses.
The marketmen said that the stock bounced back as workers at the coal major yesterday withdrew their proposed three-day strike after reaching an agreement with the management over higher bonuses.
Coal India shares today settled 2.71 percent higher at Rs 330.10 at the BSE. The surge in its share price took the company’s market value to Rs 2,08,503 crore, up from Rs 2,03,007 crore yesterday.
[caption id=“attachment_110764” align=“alignleft” width=“380” caption=“The surge in its share price took the company’s market value to Rs 2,08,503 crore, up from Rs 2,03,007 crore yesterday. Reuters”]
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On the National Stock Exchange, the stock opened at Rs 321.70, then jumped by as much as 3.17 percent to a high of Rs 331.35. The stock finally settled at Rs 330, registering a gain of 2.76 percent for the day.
The surge in the counter assumes significance as the broader market ended the day in the negative territory, with the 30-share benchmark Sensex settling at 16,748.29 points, down by 276.80 points.
CIL has reached an agreement with the workers’ unions to pay a higher Rs 20,000 bonus to each worker instead of the earlier announced Rs 17,000, besides a Rs 1,000 Diwali gift.
The unions were demanding a minimum bonus of Rs 23,500 per employee.
The workers had gone on a one-day strike on October 10, which resulted in a production loss of around one million tonnes for CIL, adding up to a revenue loss of about Rs 140 crore.
PTI