Coal India shares gain 4% intraday on price hike

Shares of Coal India gained nearly 4 per cent intraday to the highest since February 29 and was all set to log biggest weekly percentage gain since May 2014.
 
The stock rose as much as 3.94 per cent on BSE and settled the day 3.20 per cent higher.

The stock was up about 6 per cent so far this week, but down 33 per cent from its all-time high hit in Aug 2015.

The compoany's board last week had approved the increase in coal prices by about 6.29 per cent over the current price.

The company said after price revision it would earn additional revenue of about Rs 32.34 billion in the May 30, 2016 to March 31, 2017 period.

"Price hike is a major sentiment booster for the stock as it will help top-line immediately", says analyst Rahul Modi of Antique Stockbroking

Antique Stockbroking has a "buy" rating on the stock with a target price of Rs 425.