 "Coal India defies market trend, adds Rs 2,368 cr to its m-cap")
Mumbai: Defying the broader market down trend, Coal India Ltd (CIL) today recovered from morning losses and closed with gains of over 1 per cent, adding Rs 2,368 crore to its market capitalisation.
The stock shed nearly 3 percent intra-day as investors got concerned after the PSU said that its profits were likely to be eroded by about Rs 2,000 crore a year, post-enactment of a proposed mining Bill, cleared by the Cabinet on Friday.
CIL shares, which opened sluggish and dropped over 2.76 per cent on BSE, eventually closed 1.13 percent up at Rs 336.50 a share, adding Rs 2,368 crore to its market worth.
[caption id=“attachment_98334” align=“alignleft” width=“380” caption=“At the end of today’s trading session, the m-cap of the company stood at Rs 2,12,545 crore, up from Rs 2,10,177 crore on September 30. Reuters”]
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On the National Stock Exchange, it tanked more than 2.95 percent to a low of Rs 323.35 a piece. But, the stock made smart recovery and finally closed 1.20 percent up at Rs 337.20 a share.
At the end of today’s trading session, the m-cap of the company stood at Rs 2,12,545 crore, up from Rs 2,10,177 crore on September 30.
“The major reason behind the fall in the counter earlier during the day as this is fairly an over-valued company and secondly there are no clear guidelines by the government on mining bill. The uptrend in the later part was because of short covering,” Wellindia Group Senior Equity Analyst Vivek Negi said.
Meanwhile, the overall market sentiment was bearish. The 30-share BSE Sensex closed at 16,151.45 points, down 302.31 points from its previous close, while wide-based Nifty ended 93.75 points lower at 4,849.50.
Jha said that if the government wanted to maintain the profit of the state-run PSU, it would have to resort to a hike in coal prices.
Earlier this month, Jha had said the additional cost impact due to the new Bill will eventually be passed on to the consumers. The Federation of Indian Mineral Industries (FIMI), too, had said that prices of all minerals will go up if the new Mines Bill is implemented.
Current coal prices in the domestic market range from Rs 770 to Rs 1,700 a tonne.
PTI