The cabinet committee on economic affairs (CCEA) shall meet next week to
discuss pooling the price of imported coal with the domestic fuel. Moreover Group of Ministers (GoM) on draft coal
regulator Billl will also meet to take a view on price-pooling of coal to
address the fuel supply issue. The price
pooling is the averaging of prices of domestic and imported coal to get a
uniform feedstock price in the country.
On the directions of the CCEA, an inter ministerial panel was formed
under the chairmanship of coal secretary for looking into the price pooling and
coal linkages issue. This event shall
not only boost up power stock but will lead the stock market to a new
direction. The nifty future and niftyoption may see sharp increase in the premium. The intraday traders who use the intraday
trading software shall try to extract the maximum benefit in intraday
trades.
The cabinet has
reportedly asked the coal ministry to back on the issue within five weeks. The CCEA had in February approved in principle coal
price pooling but had asked coal and power ministries to come back with
specific plan with proposals. The Prime minister’s Office (PMO) had directed
Coal India ltd and Central electricity Authority in 2012 to work on price-pooling,
so as to ensure 80 per cent supplies to power plants. The final decision on the issue was pending
for long due to differences between the coal and power ministries on how the
impact of higher imported coal prices will be shared between CIL and power
companies. Those who are wary about the stock market may see it
differently now. The power stocks will
exhibit their live buy and sell signal in intraday trade
enthusiastically. Nifty will also
recover from its support level to moderate high.
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