Coal India’s shares skyrocketed as much as 7 per cent in early trade Thursday as the state-run mining giant said that its subsidiary Northern Coalfields Ltd is set to cross production target of 119 million tonnes for the current fiscal. Coal India rise 32% in 4 days, stock nears 52-wk high.
The Coal India rise price also received a boost after Coal India said that its aim of making capital expenditure of Rs 1,640 crore remains on track..At 10:30 am; the stock pared some of the gains, and traded 2.7 per cent higher at Rs 190 on back of heavy volumes.
In comparison, the S&P BSE Sensex was up 0.1 per cent at 55,515. The trading volumes at the counter jumped considerably with a combined 33 million equity shares changing hands on the NSE and BSE so far in trades. European coal surged to historic highs as sanctions against Russia for its assault on Ukraine tightened the global market supply.
Benchmark thermal coal in Asia, the largest market for the fuel, soared 46 per cent to a record as concerns about disruption to supplies from Russia turbocharged concerns over tight energy markets, Bloomberg reported. Futures for high-quality thermal coal loaded on ships at Newcastle port in Australia jumped to $446 a tonne on Wednesday, adding $140.55 in a single day and rising to the highest in data back to 2008, according to ICE Futures Europe.
For October-December quarter (Q3FY22), CIL delivered a strong performance despite facing hurdles such as heavy rainfall and the pandemic which affected physical performance. Coal prices are ruling very high globally, and this effect showed up in e-auctions, where prices were at 100 per cent premium to the agreed Fuel Supply Agreements (FSA).
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Motilal Oswal Financial Services (MOSL) expects profitability to recover further in January-March quarter (Q4FY22) led by strong e-auction premiums, which breached the 100 per cent mark after 12 quarters in Jan-Feb. The company is a key beneficiary of the ongoing supply shortage in the global coal market, which is impacting importers in India, the brokerage firm said in Q3 result update.
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