Booming demand for Indian coal is driving up the shares of miner Coal India and power generator NTPC Ltd, state giants investors once dismissed as plodding dinosaurs, but which are now outperforming the wider market and global peers.
NTPC, which produces mostly coal-fired power, has surged 78%, far ahead of a gain of 17% in the broader Nifty Index, while shares of Coal India are up 55% for their best year in 2023.
Already the most coal-dependent major economy, India’s reliance on the fuel for power generation is set to rise for a third straight year as the addition of renewables slows, giving the two giants a boost.
