Well I’m trying to head my head around a trading scenario I witnessed today. Which is coal india was down 1.24% whereas NTPC which utilizes 80% of coal from coal India for power generation went up 2.7%.
The above given that
70% coal production and distribution is hit due union strike
Strike will remain for the next few days or so.
I’m still not very clear about your query, however here is a thesis that may help -
CIL went down because there are talks about liberalizing the sector where private players can bid for coal blocks via e auctions. This is dab news for CIL because a lot of new private players would enter the sector and disrupt CIL’s strong hold.
At the same time this is good news to NTPC since they will no longer have supply side issues. Sourcing coal will become a lot more efficient for power generation companies such as NTPC.