Jaiprakash Associates has moved higher by 4% at Rs 105, its highest level since January 2011, in otherwise weak market on back of heavy volumes the Bombay Stock Exchange.
A combined 19.28 million shares have already changed hands on the counter till early noon deals against an average less than 25 million shares that were traded daily in past two weeks.
The stock has rallied over 8% in past four trading sessions after the company informed exchanges that it has received the second stage (final) forest clearance for its 2.5MTPA Amelia (North) coal block.
The approval is a key milestone for the commencement of the coal block and management expects to commence production by January 2013, according to analyst at Edelweiss Securities.
The 2.5MTPA coal block is expected to service 50% of Nigrie plant’s coal requirement and the balance will be sourced from the 2.9MTPA Dongri Tal coal block, where forest clearances are pending, said analyst.
The stock has outperformed the market by gaining almost 100% so far in current calendar year 2012 compared to around 25% rise in benchmark Sensex.
