Shares of power sector firms on Friday rallied for the second consecutive day, as the government direction to Coal India for fuel supply to power utilities continued to boost the sentiments.
Shares of Lanco Infra zoomed 11.58 per cent to close at Rs 22.65 on the BSE, while Adani Power gained 4.23 per cent to close at Rs 85.
Tata Power soared 4.68 per cent, while JSW Energy gained 8.28 per cent. Shares of PFC and REC also gained 3.30 per cent and 2.86 per cent, respectively.
However, Neyveli Lignite shares declined by 3.12 per cent and Reliance Infra stock shed 2.27 per cent.
Earlier this week, the Prime Minister’s Office said that Coal India would sign Fuel Supply Agreements (FSAs) by March—end to power projects commissioned up to December 2011.
Coal India would sign FSAs with power plants that have entered into long-term Power Purchase Agreements (PPAs) and have been commissioned or would get commissioned on or before March 31, 2015.
If the supply is below 80 per cent, then Coal India would be penalised whereas in case the supply is above 90 per cent, the company would be provided incentive.
Coal India shares also bounced back today and settled 1.2 per cent higher at Rs 324.85 at the BSE.