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Coal India down 6% as stock ex-dividend

Shares of Coal India were down nearly 6% as the stock is trading ex-dividend today.

Shares generally trade weak ex-dividend as the stock price falls by approximately the same amount as the dividend announced.

The company will pay an interim dividend of Rs16.50 per share for Apr-Mar (2017-18). It has set Monday as the record date for payment of dividend.

Coal India is currently trading at Rs278.20 down by Rs17.3 or 5.85% from its previous closing of Rs295.50 on the BSE. The scrip opened at Rs280.40 and has touched a high and low of Rs281.05 and Rs276.75 respectively. So far 42,53,325 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 50 DMA.

Coal India holds a dominant market share in coal mining and produces 84% of the nation’s coal output. The production for the company stood at 543mn tonnes in FY17 against a target of 599mn tonnes (91% of target). The YTD offtake for CIL stands at 383.9mn tonnes against a production target of 406.6mn tonnes. The production target for FY18 stands at 630mn tonnes, an increase of 5% over last year’s target. The Working Group on Coal and Lignite has stated that they plan to expand production of CIL to 908mn tonnes by FY20.