The world's biggest coal producer, Coal India Ltd (CIL), on Wednesday toppled Mukesh Ambani-led Reliance Industries Ltd (RIL) to become India's biggest company by market capitalisation, on a day when the benchmark Sensex snapped its losing spree and closed up 0.7%.
Shares of Coal India closed up 2.6% at Rs 397.9 on the Bombay Stock Exchange (BSE), taking its market capitalisation to Rs 2,51296.6 crore whereas RIL shares closed the day 0.6% lower at Rs 754.8, giving it a market capitalisation of Rs 2,47129.0 crore.
According to experts, CIL will maintain its lead in the near future. "The demand for coal will continue to increase and coal prices will remain firm," said Alex Mathew, research head, Geojit BNP Paribas Financial Services. "After the tsunami, Japan is meeting its energy needs from coal and Germany has said that it may shut down its nuclear plants, which may force other developed economy to switch to coal."Meanwhile, the benchmark Sensex, which had lost nearly 400 points in the last three trading sessions, on Wednesday rose by 110 points, or 0.7%, to close at 16840.8 on fresh buying in blue-chip funds.
The broadbased Nifty also rose 20.8 points, or 0.4%, to close at 5,056.6.