India shelves coal import plan as power stocks weaken
India shelved mandatory coal imports for power plants as high global prices and a weaker rupee increased costs. Coal India fell 1.3%, while OI Charts data showed long unwinding in its futures and short build-up in selected power stocks.
pre-market1 source ↓machine-written, see hownot a recommendation
- COALINDIA close
- ₹411.70
- On the day
- -1.32%
- Futures OI, long unwinding
- -0.7%
- Put-call ratio
- 0.45
- Max pain
- ₹415.00
India shelved a proposal to require power plants to blend imported coal with domestic supplies after elevated international prices and a weaker rupee raised the cost of overseas shipments. The decision came as coal inventories at Indian power plants fell to their lowest level in nearly five years, with stronger electricity demand and weaker hydropower generation adding pressure on domestic supplies. Nearly half of the country’s power plants had critically low coal inventories, according to the report.
Key Points:
• Policymakers instead asked Coal India to raise production and the railways to ensure timely movement of fuel to power stations. The approach shifts the immediate focus from costly imports to domestic output and logistics 🚂.
• Coal India closed at ₹411.70 on 19 Oct 2026, down 1.3%, with volume of 3,094,405 shares, according to OI Charts data. The stock remained up 1.7% over five sessions but was only 0.4% higher over 20 sessions, and traded within a 52-week range of ₹369.60 to ₹491.25.
• Its October futures showed long unwinding, with open interest down 0.7% to 84,681,450 shares and the contract trading at a 0.11% discount to the cash price. The put-call ratio was 0.45, with the largest put open interest at ₹415 and the largest call open interest at ₹430. Max pain stood at ₹415 for the 27 Oct 2026 expiry.
The policy raises the operational importance of domestic coal output and rail availability for electricity generators ⚡. Higher production could support fuel availability, while transport delays would continue to constrain plants even if mine supply improves. Avoiding imports also limits exposure to international coal prices and currency movements, but leaves power companies dependent on faster domestic replenishment.
OI Charts data showed a weaker derivatives setup across selected power names on 19 Oct. NTPC fell 1.9% to ₹309, with a 2.6% rise in futures open interest indicating short build-up. Tata Power declined 0.5% to ₹352.25, while its futures open interest rose 1.0%, also indicating short build-up. Traders will watch Coal India’s production updates, railway dispatches, plant inventory data and the 27 Oct derivatives expiry for evidence that domestic supply is easing the shortage.
Source: The Times of India, 19 Oct 2026
Not investment advice. For informational purposes only.