Coal India share price fell in early trade today after Narendra Modi government opened the coal mining sector to private players, ending the monopoly of the state run player.
Share price of Coal India lost 6.02% intra day to Rs 121.7 compared to the previous close of Rs 129.50 on BSE. Coal India stock is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The stock has fallen 47% during the last one year and declined 41% since the beginning of this year.
Total 5.58 lakh shares changed hands amounting to turnover of Rs 6.90 crore on BSE.
The stock hit 52-week low of Rs 119.25 hit on March 26, 2020 and 52 week high of Rs 270.90 on June 6, 2019 .
Announcing fourth tranche of the economic package, Finance Minister Nirmala Sitharaman on May 16 opened coal mining for private players which experts said would ensure better availability of coal and attract foreign investment in the sector. Commercial mining will be done on revenue sharing mechanism instead of the regime of fixed rupee/tonne.
"Commercial mining of coal on a revenue-sharing basis would help more coal availability at market prices. So this will be far more efficient. Liberalised entry to allow people to participate for a range of coal blocks and those who produce well before the deadlines incentive would also be given," the finance minister said.