Indian stock markets firmed up in the last two trading hours. Majority of the sectoral indices are trading in the positive with realty and metal stocks leading the pack of gainers. IT and FMCG are amongst the few sectors trading in the red.
Majority of the food stocks are trading positive with United Spirits and Golden Tobacco trading the strongest. As per a leading financial daily, US-based coffee chain giant Starbucks is going ahead with the Memorandum of Understanding (MOU) signed with Tata Coffee in 2011. Starbucks had entered an agreement with Tata Coffee to form a strategic alliance for sourcing of coffee beans and to explore opportunities for opening coffee shops in the country. This development comes in the wake of the government allowing 100% FDI in single-brand retail in India thereby allowing full ownership control to multinational companies setting shop in the country. Tata Coffee stock is trading up 3.7%.
All of the mining stocks are in the green with Ashapura Minechem (up 9.5%) and Coal India (up 5.7%) leading the gainers. As per a leading financial daily, Coal India will sign a five-year agreement with workers' union to hike wages by 25% in the forthcoming National Coal Wage Agreement (NCWA)-IX. The agreement will come into effect from July 1 2011 and provide for a minimum of 3% increase in wages annually which coupled with increase in other allowances will push up the cost further. According to Coal India, the wage rise is as per their expectations for which adequate provisions have already been made.