Coal India share price jumps over 7% as arm set to overshoot production
Published On: Thursday, March 3, 2022 | By: Team KnowMyStock
Shares of Coal India (CIL) surged 7 percent to Rs 198 on the BSE in Thursday’s intra-day trade 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. The stock has been gaining for the last four days and has risen nearly 32 percent during the period on improved outlook amid rising commodity prices. 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 percent to a record as concerns about disruption to supplies from Russia turbocharged concerns over tight energy markets, Bloomberg reported. The miner had on Tuesday produced 5.67 lakh tonne of the dry fuel, the highest single-day count since its inception, and the total output in the 2021-22 financial year so far stood at 110.5 million tonnes (mt), up by six percent on a year-on-year.
Of the capital expenditure (Capex) target of Rs 1,640 crore in the current year, the company has already spent Rs 1,498 crore and the capex is being deployed towards mine infrastructure, equipment, and land acquisition, the official said to PTI.
“Technically, Coal India looks overbought with a maximum upside target of 206. Immediate support will be at 184.” AR Ramachandran, Co-founder & Trainer, Tips2Trades, told FinancialExpress.com.
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