Coal India Share Price Hits 52-Week High as SWMA E-Auctions Open to Foreign Buyers

Coal India share price surged to a fresh 52-week high on Thursday after a major development in the company’s coal e-auction process. The country’s largest coal producer has now allowed coal consumers from neighbouring countries, including Bangladesh, Bhutan, and Nepal, to participate directly in the Single Window Mode Agnostic (SWMA) auctions.

Coal India Share Price Movement

Following the announcement, Coal India share price jumped nearly 7% to ₹427.85, up from the previous close of ₹400.35. The company’s market capitalisation rose to ₹2.63 lakh crore. A total of 20.12 lakh shares were traded, resulting in a turnover of ₹84.62 crore.

What This Means for Coal Exports

Previously, foreign buyers could only access Indian coal through domestic traders, who were allowed to buy and resell coal without any end-use restrictions. The revised SWMA auction framework now permits these foreign consumers to participate directly alongside domestic buyers. This move is expected to enhance transparency, competition, and integration with global coal markets while safeguarding domestic coal requirements.

Impact on Market and Investors

Opening SWMA auctions to foreign buyers is a strategic step towards market expansion. For investors, this development signals potential growth in CIL’s revenue streams through exports, which could support future earnings. The surge in Coal India share price reflects investor optimism about these long-term prospects and the company’s proactive approach to market reforms.

Conclusion

The direct participation of foreign coal consumers in SWMA auctions marks a significant policy shift for Coal India Ltd, strengthening its position in the global coal market. Investors may view this as a positive catalyst for the company’s growth, contributing to higher market confidence and potentially sustaining the upward momentum in Coal India share price.

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