With effect from today, Coal India booked its berth in exclusive Nifty benchmark index, toppling ADAG firm Reliance Capital for the coveted entry in the list of country’s 50 largest companies by market capitalization.
Coal India opened on bullish tone to record a high of Rs.344.40 on NSE Nifty. However, during mid-afternoon trading the share price of India’s largest coal producer lost all its momentum, giving up all the morning gains and now trading flat at Rs.338/-.
During mid-August, the state-run mining major had become India’s most valuable company by market capitalization, piping oil and gas big-wigs Reliance Industries and Maharatna-tagged ONGC.
However, the stock lost all the limelight dragged by the newly proposed Mining Bill 2011, which mandates give away of 26% profit pie of coal miners towards the welfare of the tribes and displaced population in the region. This has proved negative for the Coal India share price, which corrected sharply from a 52 week high of 422 on BSE Sensex.