Coal India soars to record high of Rs 370.90 on BSE

Shares of Coal India rose up by nearly 4 per cent, touching a record high of Rs 370.90 on the Bombay Stock Exchange (BSE) on Tuesday, driven by heavy buying by investors.

After opening the day on a tepid note, the state-run firm reversed its initial losses and ended the day higher by 3.93 per cent at Rs 359.75 on the BSE.

In intra-day session, the stock gained 7.15 per cent touching a new high level of Rs 370.90, since the scrip was listed for trading on November 4, 2010.

"The company is once again likely to raise the prices of the commodity...the buzz is reflected in the stocks of the coal entity firm," Unicon Financial Solutions CEO Gajendra Nagpal said.

Buying lifted the shares of CIL on the National Stock Exchange as well, where it closed the day with a gain of 3.56 per cent at Rs 359.50.

"Recent price hikes by over 30 per cent for different customers will certainly bring higher realisations. It can go up likely by 12-14 per cent. I believe the Coal Minister on Tuesday said the coal prices may increase further in July-August post wage revision. So, this is another positive trigger for the company," Consortium Securities AVP Vishwesh Choudhary said.

He further added the company had said on February 28 that price increase would generate an additional revenue of Rs 650 crore in this fiscal and Rs 6,200 crore in FY12. So, things are going well for the company and price hike would definitely bring higher realisations.

Meanwhile, the BSE 30-share key index Sensex finished the day higher by 149.25 points at 17,988.30.