Steel stocks are trading mostly in the red led by Hindustan Zinc and Adhunik Metaliks. According to a leading daily, Tata Steel's European arm is looking at investing 2.3 m Euros to develop next-generation high-strength steel for the automobile sector. The investment will be made at Tata Steel's Ijmuiden facility in Netherlands. This steel would be lighter, stronger and would be able to withstand crashes in a better manner. The need for such steel was realized because of Tata Steels' association with 3 major European car manufacturers who indicated the requirements for gen-next models. We may note here that automobiles account for a substantial market of steel industry and steel companies these days are investing in technology to produce lighter and more environment friendly steel to be used in the industry.
Mining stocks are trading weak led by Coal India and Ashapura Minechem. As per a leading daily, Coal India has invited foreign consultancy firms to assist in its issues related to technology and modernization. The company is also looking at procuring inputs about technology requirements and infrastructure development from these consultants. This is with regards to the projected coal production targets plans for 12th, 13th and 14th Five Year plans. We may note here that the projected coal demand in 2016-17, the terminal year of 12th Five Year Plan, is about 980 m tonnes and the envisaged production to meet the projected demand is 795 m tonnes which implies a gap of 185 m tonnes. The consultant would be required to assess the present technology in relation to safety, production and productivity in the underground and opencast coal mines of various coalfields of Coal India. It would then chart a course for technology upgradation across various plan phases.