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The Indian share markets continue to trade weak during the noon trading session over the economic growth concerns in the US and Europe besides rising oil and gold prices. Barring power stocks, all sectoral indices are trading in the red with FMCG and consumer durables stocks witnessing maximum selling pressure.
The BSE Sensex is trading lower by 168 points while the NSE Nifty is trading lower by 52 points. The BSE Mid Cap index is trading down by 0.5% and BSE Small Cap index is trading down by 0.7%. Gold prices, per 10 grams, are trading at Rs 28,235 levels. Silver price, per kilogram is trading at Rs 40,050 levels. Crude oil is trading at Rs 3,469 per barrel. The rupee is trading at 68.37 to the US$.
According to a leading financial daily, ITC will set up an integrated consumer goods facility and a five-star hotel in Odisha at an investment of Rs 8 billion.
Reportedly, the integrated consumer goods manufacturing facility is being built over 700,000 sqft. It will manufacture ITC's food brands such as Aashirvaad, Bingo, Sunfeast, YiPPee!. These products which will be produced in the State will make a meaningful contribution to the food processing sector in Odisha.
Besides, the group is also setting up a 110 room five-star hotel in Bhubaneswar under its WelcomHotel brand.
Moreover, ITC's investment in the processed foods sector in Odisha will add significant value to the state's agricultural potential. ITC believes that food processing sector can make a multi-dimensional contribution to the state. This can be done by enhancing competitiveness of food value chain, encouraging sustainable agriculture, reducing agri-wastages and helping create livelihoods along the entire value chain.
Notably, ITC, which has a diversified business portfolio, is growing presence in Odisha. ITC's FMCG businesses support livelihoods for over 0.7 million people in the state and also has been engaged deeply with farmers in Odisha.
Going forward, whether ITC's investment in the processed foods sector in Odisha add significant value to the state's agricultural potential will be the key thing to watch out for.
ITC's share price was trading down by 1.7% while writing.
Moving on to the news from
The proposal to break up CIL comes from one of these groups, including the ministries of coal, power, oil and mines. They were asked by Prime Minister Narendra Modi to come up with policy proposals to promote energy security and the environment.
Coal India, which has a stock market capitalization of US$28 billion, enjoys a monopoly but critics say it is bloated and inefficient, the reports noted.
However, attempts to break up the company would be met with strong resistance from powerful unions representing the company's employees of more than 3,50,000. The government backed down from a similar proposal in the face of union protests in 2014.
About 70% of India's power generation is coal-based. The country is the world's third-largest producer and its third-biggest importer of coal, which the government wants to change by boosting local coal production.
Meanwhile, CIL has dramatically increased the target for selling coal through auction to 120 million tonnes (mt) this financial year. CIL hopes that it will help in import substitution and meet electricity needs. Last year, the company had sold 66 mt of coal through auction.
Coal India officials recently stated that power producers, both near and away from coal mines, are not lifting their full quota of coal each month because they are now assured of railway rakes and coal availability whenever required, unlike in the past when availability of both were uncertain for major part of the year. Stocks piled up with Coal India as 15 power plants did not lift any coal.
Coal India's share price was trading up by 0.9% at the time of writing.
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