Shares of state-run Coal India surged over 2 per cent in the opening trade on the bourses today, which analysts attributed to news of the stock’s forthcoming induction into the National Stock Exchange’s Nifty index on October 10.
Coal India Ltd (CIL) will replace Anil Dhirubhai Ambani Group firm Reliance Capital in the NSE index of the country’s 50 largest companies by market capitalisation from October 10.
Coal India opened on a bullish note on the bourses and then gained further momentum to touch a high of Rs 381.90 on the Bombay Stock Exchange, a jump of over 2 per cent vis-a-vis its previous closing price.
On the National Stock Exchange, the scrip rose to a high of Rs 381.90, up 1.90 per cent from its last close.
However, some of the initial gains were later pared and CIL was trading 1.31 per cent higher at Rs 379.25 on the BSE and up 1.28 per cent at Rs 379.55 on the NSE.
Over 1.42 lakh shares of the company changed hands on the BSE and more than 7.66 lakh shares were traded on the NSE in the morning session.
Earlier this month, Coal India had replaced another Anil Ambani Group firm, RInfra, in the BSE’s Sensex index of blue-chips.
Shares of Coal India have been doing well since the company was listed in November last year and it has become the country’s third-most valued firm after Reliance Industries and ONGC.
The Coal India scrip outperformed the broader market in the June quarter, gaining 13.05 per cent, in contrast to a 3.08 per cent decline in the Sensex.