Mining stocks are trading firm led by Gujarat NRE Coke and Sesa Sterlite. As per the announcement made by Coal India, the board of the company has announced a dividend of Rs 20.7 per share, which provides a dividend yield of a little over 5% at current stock price. This was a key reason for the stock to be in favour yesterday (up almost 3%). From its recent FPO price of Rs 340 (for retail investors), the stock has performed well as it is currently up by about 17% from those levels. Coal India has a strong financial track record and has been paying on an average about 45% of its profits (in years FY12 and FY13). However, the company paid out more than what it earned through profits in FY14 as it paid out a special dividend as well. The company paid out a total of Rs 29 per share in that year, which translated to about 120% of FY14's EPS. In the year before, the dividend per share stood at Rs 14 per share. The stock of Coal India is trading higher about 0.4% currently.
Power stocks were trading firm led by Lanco Infratech, Reliance Infra and Adani Power. As reported by a leading business daily, public sector power major Power Grid Corporation of India (PGCIL) has won the Rs 60 bn Gadarwara A & B projects in Madhya Pradesh. The company won his order amidst other bidders such as Adani Power and Sterlite Grid. It is believed that at the start of the tendering process, there were about 11 players who were interested in this project. However, only four ended up submitting their bids. PGCIL's bid is said to have been 25% lower than the average price bid by the rest. As reported, the project would evacuate power generated from NTPC's upcoming 1,600 MW thermal power project. As reported, PGCIL's order book stands at about 1.3 trillion at the moment. The stock is currently trading higher by 0.4%.