Critical metals have a significant role in clean energy transition as they are a key component of EV batteries and wind turbines.
The Black Money Bill may also be tabled before the recess. There is expectation that the Black Money Bill will be passed once the Parliament reconvenes.
Coal India’s second largest shareholder, The Children’s Investment Fund is miffed about the company not standing up for the rights of its minority shareholders. In January this year, Coal India had raised prices of select grades of its output by changing the pricing system to gross calorific value from the earlier useful heat value system.
Earlier this week, the company approved a proposal to change its benchmark pricing for non-coking coal to gross calorific value from the current useful heat value. Analysts are mixed about the impact of the new pricing policy, as other worries such as wage hikes, Mining Bill, and use of cash reserves, persist.
With 31 bills pending, the winter session of Parliament is very important and political analyst Yogendra Yadav is hopeful to see some important reforms being cleared.
Ambareesh Baliga, chief operating officer at Way2Wealth joins CNBC-TV18 to give his perspective on the trades today.
Enactment of the new Mining Bill is likely to have a negative impact on existing pure-play mining companies, with their profits impacted by as much as 12%, global research firm Macquarie says.
Sailav Kaji, chief strategist at Padmakshi Financial Services tells moneycontrol.com that the market could be in a consolidation phase between 4800 and 5200 over the month and then see a slight revival. FMCG could surprise on the upside, he says.
The new mining bill cleared by the Union Cabinet today could impact bottomlines of metal companies like Hindustan Zinc, Tata Steel and JSW Steel to name a few by anything between 8%-13%, say analysts as these companies will now have to share 100% royalty with affected locals in the region.
Coal India has been in the eye of the storm. The stock has been beaten down for the past two consecutive days. On Tuesday the company had a worker’s wage issues and today, the company’s arm BCCL has received an order from the Jharkhand pollution board for closure of mining in 22 mines, reports CNBC-TV18’s Nigel D'souza.
Raising concerns over the royalty and profit sharing proposals of the new mining bill, industry body FICCI today said its implementation would make Indian mining industry uncompetitive globally as it will be charged with highest tax rates in the world.
In an exclusive interview with CNBC-TV18, he says for about the next one or two quarters, the metal stocks would be ‘under pressure’ due to the introduction of Mining Bill. However, much to the relief of long-term investors, he adds, "we would be stock selective in this sector for a long term period investment."
While experts predict a mixed-bad of numbers this earnings season (Q1FY12), Jyotivardhan Jaipuria, head of research at BofA Merrill Lynch seems quite sure that India Inc will largely disappoint. In fact, he expects only 12% earnings growth for Sensex companies.
SP Tulsian of sptulsian.com cherry-picks his favorite stocks for the day on CNBC-TV18 and answers queries on Coal India and the Cement sector
With the earning season around the corner, everyone is waiting to see if the results will further boost the market or pose a hurdle. Ridham Desai of Morgan Stanley believes that this earning season will be widely dispersed, with global cues aiding the risk asset rally. He goes on to talk about the mining bill and its impact on companies.