Coal India Limited (CIL) shares have zoomed 32 per cent over the past four trading session on the back of improved outlook amid rising commodity prices. On Thursday, share price jumped over 7 per cent to touch day’s high of Rs 198 on the BSE in the intraday trade. 

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Domestic brokerage house JM Financial suggests a Buy on Coal India shares with returns estimated around 10 per cent in the stock. The target price is placed at Rs 203 per share with a stop loss of Rs 185 per share.   

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At around 10:47 am, the counter was trading up almost 3 per cent from the Wednesday closing price at Rs 190.05 on back of heavy volumes, as compared to 0.15 per cent rise in the S&P BSE Sensex. 

With the ongoing Russia-Ukraine crisis, the overall commodity prices are witnessing spike, including crude oil and metals. In this regard, the European coal surged to historic highs as sanctions against Russia for its assault on Ukraine tightened the global market supply.  

Hence, the benchmark thermal coal in Asia, which is 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, as per the Bloomberg report. 

According to ICE Futures, Europe 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. 

During Q3FY22, Coal India had delivered a strong performance despite hurdles like heavy rainfall and the pandemic, impacting physical performance.