Coal India hits fresh two-year low

Coal India has dipped 3% to Rs 272, its lowest level since March 23, 2014 on the National Stock Exchange (NSE), after the company decided to give up performance incentive for supply of higher grades of coal and to improve lifting of coal.

“The company’s board on 11th February 2016, accorded its approval for giving up performance incentive for supply of higher grades of coal (G5 and above) in the Model Fuel Supply Agreement for power and non-power with immediate effect and to improve lifting of coal,” Coal India said in a statement.

This decision was taken due to fall in international coal prices, improved supply of coal by Coal India and there is sluggishness in coal demand in general and higher grade of coal in particular, it added.

In past one-month, the stock has underperforming the market by falling 15% from Rs 319 on March 11, as compared to 2.5% rise in the Nifty 50 index.

At -01:33 pm, the stock was down 2% at Rs 275 against 0.33% gain in the benchmark index. A combined 6.9 million shares changed hands on the counter on the BSE and NSE.

Coal India Ltd