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After opening the day on a flattish note, the Indian Markets witnessed choppy trading and have remained near the dotted line. Sectoral indices are trading on a mixed note with stocks from the power and pharma sectors leading the gains. Consumer durables and banking stocks are trading in the red.
The BSE Sensex is trading up by 11 points (up 0.1%) and the NSE Nifty is trading up by 1 points (up 0.02%). The BSE Mid Cap index and the BSE Small Cap index are also trading positively, up by 0.2% and 0.5% respectively. The rupee is trading at 67.97 to the US$.
Stocks in the food and tobacco space are trading on a mixed note with Wadala Commodities and VST Industries witnessing maximum buying interest. As per an article in Economic Times, the coffee board has stated that coffee production is expected to increase by 25,000 tonnes during this financial year. By this the total production is said to reach 3,80,600 tonnes, of which 1,00,000 tonnes will be Robusta and the rest will be Arabica variety.
Further, the board stated that it will be working towards strengthening high-value export markets like the European Union, the US, Canada, Japan, Australia, New Zealand, South Korea and Scandinavian countries.
Commenting on the domestic markets, the board said that the domestic production is also growing by 5-6% annually since 2000. Most of this growth is due to coming up of large number of coffee bars and cafes in India. It is heartening to note that about 35% of the Indian coffee exports during the year 2014-15 came in by value added products.
All of the above developments can bring up many opportunities in the food sector. The board stated that this can also attract investments in the sector, adding that the 12th Plan has a comprehensive avenue, through which subsidies can also be availed for export of high-value green coffee and value-added coffee as India brand.
Stocks in the mining space are trading on a mixed note with Ashapura Minechem and Hindustan Zinc leading the gains. As per a leading financial daily, the government has asked Coal India to ensure that it meets the target of 550 MT (million tonnes) for the current fiscal. This comes as the company has cheered up sentiments by the output growth of 9% in the April-December period this year.
This output growth of the company has resulted in to enhanced energy production and has also made coal stock available for 24 days with power plants, from the earlier three to seven days.
The above developments come as a further driver for the company's target to achieve an output of one billion tonnes by 2020. Presently the stock of Coal India is trading down by 1.5%.
In another news, Vietnam has urged Indian pharmaceutical companies to set up units in that country as a part of the 'Make in Vietnam' initiative. The country's ambassador, Ton Sinh Thanh, said that pharmaceuticals is one of the major items that Vietnam imports from India and therefore Indian pharma companies should set up their base in Vietnam.
The ambassador also said that Indian could also help Vietnam in services sector. He noted that the services sector India is very developed and Vietnam has a pool of skilled manpower and there is lot of scope for cooperation between India and Vietnam in the field of services sector.
One shall note that, the Indian government had offered a credit line of US$300 million for trade diversification and strengthening of commercial ties between the two countries. The targeted bilateral trade between the two countries is said to be US$15 billion by 2020. In 2014, the bilateral trade was US$5.6 billion.
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