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How Govt Policies Affect Stock Prices?

Govt policies plays a key rule in stock prices and case in point is the shares of power utilities which rose sharply after govt ordered state-run miner Coal India to sign 20-year guaranteed fuel supply contract with power producers for projects that would be ready for generation by March 2015.

This is a good order which will help to improve the fundamentals of Utilities sector and in turn review power sector capex (indirectly positive for Capital goods sector)

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