Defying the broader market trend, Coal India rallied by more than 2% in morning trade today as workers at the state-run company withdrew their proposed three-day strike after reaching an agreement with the management over higher bonuses.
The employees' unions of Coal India Ltd yesterday withdrew their proposed three-day strike after the management agreed to give them a higher bonus, along with Rs 1,000 as a Diwali gift.
Shares of Coal India opened on a bullish note and rallied by as much as 2.58% on the BSE to an early high of Rs 329.70.
The stock witnessed a similar trend on the National Stock Exchange, opening at Rs 321.70 and then jumping by 2.66% to a high of Rs 329.70 on the NSE.
The surge in the counter assumes significance as the broader market was trading in the negative territory, with the 30-share Sensex trading at 16,731.14 points, down by 293.95 points, and the wide-based Nifty quoted at 5,026.60, down by 91.65 points.
However, the stock saw some of its initial gains pared in later trade and was trading 1.82% higher at Rs 327.25 on the BSE and 1.82% up at Rs 327 on the NSE at 1139 hours.
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CIL has reached an agreement with the workers' unions to pay a higher Rs 20,000 bonus to each worker instead of the earlier announced Rs 17,000, besides a Rs 1,000 Diwali gift.
The unions were demanding a minimum bonus of Rs 23,500 per employee.
The workers had gone on a one-day strike on October 10, which resulted in a production loss of around one million tonnes for CIL, adding up to a revenue loss of about Rs 140 crore.