Defying the broader market trend, Coal India rallied by more than 2 per cent in morning trade today as workers at the state-run company withdrew their proposed three-day strike after reaching an agreement with the management over higher bonus.

The employees’ unions of Coal India Ltd had yesterday withdrew their proposed three-day strike after the management agreed to give them a higher bonus, along with Rs 1,000 as a Diwali gift.

The scrip opened on a bullish note and rallied by as much as 2.58 per cent on the BSE to an early high of Rs 329.70.

Similarly on the National Stock Exchange, the stock opened at Rs 321.70 and then jumped 2.66 per cent to a high of Rs 329.70.

The surge in the counter assumes significance as the broader market was trading in the negative territory, with the 30-share Sensex trading at 16,731.14 points, down by 293.95 points, and the broad-based Nifty trading at 5,026.60, down by 91.65 points.

However, the stock saw some of its initial gains pared in later trade and was trading 1.82 per cent higher at Rs 327.25 on the BSE and 1.82 per cent up at Rs 327 on the NSE.

CIL has reached an agreement with the workers’ unions to pay a higher Rs 20,000 bonus to each worker instead of the earlier announced Rs 17,000, besides a Diwali gift of Rs 1,000.

The unions were demanding a minimum bonus of Rs 23,500 per employee.

The workers had gone on a one-day strike on October 10, which resulted in a production loss of around one million tonnes, adding up to a revenue loss of about Rs 140 crore.

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