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After opening the day on a bearish note, the Indian Markets registered some gains and are presently trading near the dotted line. Sectoral indices are trading on a mixed note with stocks from the banking and consumer durables sectors leading the gains. IT and energy stocks are trading in the red.
The BSE-Sensex is trading up by 16 points (up 0.1%) and the NSE-Nifty is trading up by 4 points (up 0.1%). The BSE Mid Cap index and the BSE Small Cap index are also trading positively, up by 0.1% and 0.2% respectively. The rupee is trading at 66.17 to the US$.
Food and Tobacco stocks are trading mixed with Wadala Commodities and Sterling Biotech leading the gains. As per an article in the Economic Times, India's food industry, according to a research report, is expected to grow 11% annually to reach US$ 65.4 billion by 2018. At present levels, the same is valued at US$ 39.71 billion.
As the report stated, food and grocery constitutes a substantial part of India's consumption, accounting for around 31% of the consumption basket. The country's retail market is expected to grow to US$ 865 billion by 2023, which is presently valued at US$ 490 billion. The share of modern retail is expected to rise to 24% of the total retail market from 8% currently.
The report also suggested that India might have benefitted from the presence of foreign businesses in the food supply chain. Among the many advantages from the presence of international businesses, some are the employment creation, waste management implementations, environment-friendly technologies, product innovation and increased exports from India.
Stocks in the mining space are also trading mixed with MMTC Ltd leading the gains and Hindustan Zinc leading the losses. According to an economic daily, Coal India Limited (CIL) has invited bids from international companies to set up a coal washery in Jharkhand. The move is undertaken in a bid to provide quality coal to its customers, including power plants.
Moreover, the company for the matter has also invited bids from consultants for preparing a study on a range of issues, including raising the output. In all, the company is looking at utilizing underground mines more efficiently and gearing up to meet its ambitious production target of 1 billion tonnes by 2020.
At present, there are 227 underground mines and 28 mixed mines under CIL. About Rs 7,620 million is likely to be invested in the underground coalmines in the ongoing fiscal.
As reported, the major constraints for the company in increasing coal production from underground mines include lack of appropriate technologies to mine coal from thick and steeply inclines and multiple seams, heavy pumping out of water and adverse roof conditions.
Coal India is the largest coal producing company in the world based on their raw coal production. In addition, it is the largest coal reserve holder in the world based on their reserve base. It presently accounts for over 80% of the domestic coal output. Currently the scrip of company is trading down by about 1.5%.
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