List of Top 10 Indian Mining Companies

List of Top 10 Indian Mining Companies.

Some Interesting Facts of India’s Mining Industry

1. India is one of the topmost producers of several minerals. 
2. India is the third largest producer of coal. Coal production in India was recorded at 51 Million Tons Per Annum during financial year 2017-2018.
3. India has the fifth largest estimated coal reserves in the world, at 308.802 billion tons, according to a report released by the Ministry of Mines during the financial year 2015-2016 in FY16.
4. India is the fourth largest producer of iron ore globally. During fiscal year 2017-2018., production of iron ore stood at 210 MTPA.
5. India holds eight per cent of deposits of iron ore in the world.
6. India is the third largest crude steel producer in the world with an output of 101.4 MTPA recorded in 2017.
7. Crude steel production in the country rose to 102.34 million ton during the financial year 2018-2019.
8. According to the Ministry of Mines, India has seventh largest bauxite reserves, estimated at 2.9 Billion Tons Per Annum in the financial year 2017-2018.
9. India’s aluminum production capacity was 1.60 MMTA recorded between April and September 2017.
10. The aluminum industry will grow to an estimated 3.35 MMTA by the year 2020, according to the Indian government.

1. NMDC Ltd. : 

NMDC is India’s topmost mining company. It was established in 1958 as National Mineral Development Corporation. Over the years, it assumed the role of the mining company & functions under the Ministry of Steel. NMDC is engaged in the exploration of wide range of minerals across the country including iron ore, copper, rock phosphate, limestone, dolomite, gypsum, Bentonite, Magnesite, diamond, tin, tungsten, graphite and silicon from beach sands, among other

NMDC is India’s single largest iron ore producer.

It makes more than 30 tons of iron ore annually from three fully mechanized mines. NMDC Ltd has contributed significantly towards the development & mining of natural resources in India. In 2008, the Indian government declared it as ‘Navratna’ company, an accolade reserved for public sector enterprises of national and economic importance. NMDC Ltd is not only India’s largest miner, but it also exports huge volumes of metal ores to foreign countries through bilateral trade treaties between Indian and foreign governments as well as private foreign companies.

2. Uranium Corporation of India Ltd. (UCIL)
Uranium Corporation of India Ltd is an Indian government-owned mining company that is of extreme national significance. UCIL is involved in the exploration & mining of Uranium & other rare minerals required to fulfil the needs of India’s civilian & military nuclear projects. It plays a key role in nuclear power generation of this country while providing Uranium and other minerals required for military purposes.

UCIL operates several mines across India, including six in Jharkhand, one in Andhra Pradesh & one each in Karnataka, Telangana & Meghalaya. This company has made India achieve self-reliance in Uranium required for Pressurized Heavy Water Reactors used for power generation, among other purposes.

UCIL functions directly under the Department of Atomic Energy. Despite mining Uranium and other minerals for nuclear purposes, UCIL has a commendable environment & health safety record at locations where it operates mines.

3. Hindalco 
Formerly called Hindustan Aluminum Company, Hindalco Industries Limited, is flagship enterprise of India’s corporate giant, the Aditya Birla Group. The company has a turnover in excess of US$18billion and is the leader in Aluminum and Copper mining sector of this country.

Further, Hindalco operates the single largest aluminum rolling company in the world.

Hindalco also holds the unique distinction of being Asia’s biggest producers of primary Aluminum. Hindalco’s copper facility consists ranks among the world’s largest custom smelters at a single location. Hindalco is also engaged in mining bauxite, coal & other minerals required by power companies & other Indian industries.

Hindalco is a major player in aluminum production worldwide & has operations in 10 countries. The company’s division Birla Copper produces copper cathodes & continuous cast copper rods, along with other by-products, including gold, silver & DAP fertilizers. Hindalco & Birla Copper rank as India’s largest private producers of gold. Hindalco has been accorded Star Trading House status in India.

4. Vedanta Ltd.
Vedanta Limited is engaged in iron ore, copper, zinc, lead, silver & aluminum mining in India. Vedanta Limited is India’s largest & world’s second largest company to mine zinc and Vedanta Ltd holds over 78 percent of India’s primary zinc industry.

It is also among the top 10 silver miners of the world, with an annual capacity in excess of 600 tons. Vedanta holds a 64.9 percent stake in Hindustan Zinc Limited. The company is the largest aluminum producer in India with a capacity of 2.3 Million Tons Per Annum.

It commands 40 percent share of the domestic aluminum industry. Vedanta supplies iron ore from Goa to the domestic market with large exports to China & Japan. Sesa Goa Iron Ore, a Vedanta Group company was founded in & now ranks among the top low-cost producers of iron ore of India. Additionally Vedanta Ltd operates one of the largest custom copper smelters in India.

5. Coal India Ltd.

Coal India Ltd is the world’s single largest miner & producer of industrial grade coal required as fuel in thermal power plants & other applications. It is a public sector enterprise owned by the Indian government. It was established in 1975 as a small company to mine coal with an annual capacity of about 79 million tons.

Due to its economic significance to India & the national economy, the government has named CIL as one of the ‘Maharatna’ enterprise. Coal India Ltd operates through 82 mining areas. The company consists of seven wholly owned coal mining subsidiaries & one mining planning & consulting firm. CIL operates in eight Indian states. Additionally, CIL also manages 200 other establishments like workshops, hospitals 7 other facilities.

It owns 26 technical and management training institutes and 102 Vocational Training Institutes Centers. CIL also operates the Indian Institute of Coal Management, the only educational facility of its kind in India.

6. Hutti Gold Mines Ltd.

Hutti Gold Mines Company Limited (HGML) is one of the topmost mining companies of Indi & is the nation’s only producer of primary gold. The company is owned by the state government of Karnataka. HGML is engaged in exploration, development & exploitation of gold deposits of Karnataka.

The company’s Hutti Gold Unit produces whopping 550,000 tons of primary gold per annum. The company currently GML currently processes ore from three gold mines in various parts of Karnataka. It plans to expand operations by exploring potential deposits of gold in Karnataka and is considering expansion of its existing mines after the Chitradurga gold mine was closed & had to diversify.

Most of India’s gold comes from HGML. Due to the unique nature of its mining business, HGML holds a special significance for India & the national economy.

7. Gujarat Mineral Development Corporation Ltd. (GMDC)

GMDC Ltd is a major mining company in India. It is an enterprise of the Gujarat state government. GMDC Ltd is one of the most profitable mining companies in India. It is involved in projects to produce Lignite, Bauxite, Fluorspar, Manganese, Silica, Ball Clay, Bentonite and Limestone. Additionally GMDC Ltd has also ventured into power generation.

Further, GMDC Ltd is also acclaimed as one of the most environment-friendly mining companies in India. Its employees spend several hours as part of their Corporate Social Responsibility to clean up areas located near mines and negate any adverse impacts of pollution caused by the company’s activities.

GMDC Ltd has won several national accolades from the Central government for the important role it plays in the Indian economy and generation of employment for skilled persons in Gujarat. 

8. Manganese Ore India Ltd. (MOIL)

MOIL stands for Manganese Ore India Ltd. It is the largest producer of Manganese ore in India. MOIL is also a ‘Miniratna’ company & won this distinction for being a key player in India’s economy. With headquarters in Nagpur, Maharashtra, it ranks among the pioneers of the Country’s mining industry & was established in 1962.

However, the company traces its history to 1896 when it was established as Central Province Prospecting Syndicate which was later renamed as Central Provinces Manganese Ore Company Limited (CPMO), a British Company incorporated in the UK. It was later taken over by the Indian government. Stakes in MOIL are held by the Central government as well as State Governments of Maharashtra & Madhya Pradesh.

MOIL ranks 486th among Fortune 500 companies of India. In Maharashtra & adjoining Madhya Pradesh, MOIL operates some 16 mines for producing Manganese Ore. This ore is supplied to domestic industries. A large volume of MOIL’s Manganese ore also gets exported to major markets abroad including China & Japan, among others.

9. India Rare Earths Ltd.

Indian Rare Earths Ltd is a unique mining company. As the name suggests, this top mining company of India explores & produces rarest minerals in India. These include Ilmenite, Zircon, Rutile, Sillimanite & Garnet, among others, which are called as Heavy Minerals.

Additionally, Indian Rare Earths also produces 10,000 tons per annum of Monazite & over 11,220 tons per annum of Rare Earth Chloride. These are minerals are of extreme importance to India for civilian & military purposes. The company works in a very specialized field of rare minerals & hence, is little known to most people. Indian Rare Earths Limited was established on August 18, 1950.

It commenced operations with its first unit, the Rare Earths Division located in Alwaye (Aluva) in Kerala. In 1963, Indian Rare Earths Ltd was accorded the full status of Public Sector Undertaking. It operates under administrative control by Department of Atomic Energy (DAE). Indian Rare Earths Ltd is one of the topmost mining companies of India. Only a few other countries possess capabilities to explore and produce rare minerals.

10. FCI Aravali Gypsum & Minerals (India) Ltd. 

FCI Aravali Gypsum & Minerals (India) Ltd is a mining company that functions under the Ministry of Chemicals & Fertilizers. It is the largest mining company in India that produces gypsum for agricultural as well as industrial purposes. Since 2003, this company supplies gypsum to cement industries & various land development projects funded by World Bank in the Uttar Pradesh state of India.

For over six decades, FCI Aravali Gypsum & Minerals (India) Ltd has been supplying high-grade gypsum to the Indian government fertilizer plant based in Sindri near Dhanbad, for producing Ammonium Sulphate. FCI Aravali Gypsum & Minerals (India) Ltd has mining operations in Rajasthan, near the cities of Barmer, Jaisalmer, Bikaner & Suratgarh. All mines operated by this company comply with international environment protection standards.

The company ensures that areas lying in the vicinity of mines do not suffer pollution due to its activities. FCI Aravali Gypsum & Minerals (India) Ltd was earlier a division of Food Corporation of India Ltd. However, it was made a separate mining company in 2003.

Wrap-Up on Mining Sector in India

While top mining companies of India are active in this country, they are also providing various services abroad. This includes exploration of minerals, consultancies in setting up mines, smelters and other infrastructure as well as Joint Ventures that are now under consideration with foreign partners.

India’s mining sector is set to boom due to the rise in infrastructure development and automotive production, says the Ministry of Commerce and Industry.

ITC - Tobacco Nationalism Is More Toxic Than Tobacco

Tobacco Nationalism Is More Toxic Than Tobacco

Although one in four of all adult Indians use tobacco, the country’s addiction runs far deeper. The government, too, has a toxic dependence. It’s called ITC Ltd. Formerly known as Imperial Tobacco of India, later renamed India Tobacco Company, and finally truncated to just ITC, the 110-year-old conglomerate is 29.4% owned by British American Tobacco Plc. About 28.5% is controlled by various Indian state-run insurance companies and a government-controlled bad bank. And therein lies the problem. The large quasi-state ownership is acting as a value trap. It’s preventing the $25 billion enterprise from being carved up into a pure cigarette company, owned by BAT, and a supply-chain platform like China’s Pinduoduo Inc., which is nearly four times bigger in enterprise value. It's a missed opportunity, not just for ITC’s minority shareholders, but for India.

Now that the country is giving farmers the freedom to sell their produce outside state-designated market yards, a corporate buyer like ITC that has distribution capabilities in the smallest of Indian towns (thanks to cigarettes) has a shot at building a meaningful digital, agri-business franchise. One that’s able to obtain better prices for producers. As for the core tobacco business, London-based BAT has tried in the past to raise its stake and take over the cigarette maker, but local managers have seen it off using Indian financial institutions’ voting power. However, many investors are now wondering if empire-building by ITC’s management, in the garb of protecting national interests, has gone too far.

A cash-strapped New Delhi, which is delaying fiscal support to an economy expected to lose a 10th of its real output this year to Covid-19, also needs to rethink its stance. What additional harm will befall if BAT wins ITC’s successful cigarette division, paying a hefty control premium to acquire smokers, a vanishing breed in developed markets? In return, India can wrest a time-bound commitment from the new owner to steer the revenue toward, say, 25% reduced-risk products like the Swedish snus & heat-not-burn devices. That will mean a fall in future healthcare costs from lower tar consumption. ITC scored 0.62 in Foundation for a Smoke-Free World’s 2020 Tobacco Transformation Index, better than China National Tobacco Corp., but way behind BAT, Philip Morris International Inc. & Swedish Match AB. “Companies that offer reduced-risk products are mostly focusing their efforts on selected high/medium income countries, where overall smoking rates are lower & cigarette sales are already declining,” says the new study. India can negotiate a better outcome with BAT.

Let the $3.3 billion cash pile plus the non-tobacco parts hotels, information technology, finance, fashion, potato crisps, paper, safety matches & what not get sequestered under a separate holding company. The Indian managers get to keep what they can turn into a digital, agri-business-led supply chain & sell the rest. This way, the government will extract much-needed budgetary resources. The value trapped in the conglomerate will get released. The deadlock between two equally poised large shareholders is hurting minority owners. The stalemate has gone on for too long. A quarter-century ago, the fight was over whether ITC should be setting up power plants. The state-led economy had just started liberalizing & there was an acute shortage of electricity. The Indian cigarette maker was sitting on a cash hoard. Had BAT wrested control, it wouldn’t have allowed the funds to be put into unrelated businesses. But BAT’s tenuous hold weakened after a currency-control violation saw a change in leadership at the Kolkata-based firm. 

Yogesh “Yogi” Deveshwar, the new chairman in 1996, took the government’s help to defeat BAT’s plan for a separate unit to sell international brands like 555 State Express & Benson & Hedges cigarettes in India. Since then, the local business has increasingly charted its own course. Now, BAT can’t even try to mount a bid for all of ITC because tobacco has been made off-limits for foreign direct investment since 2010. That, too, was done to keep ITC in Indian hands. To what end, though? As much as 84% of ITC’s $2.8 billion pretax profit last year came from cigarettes, but four-fifths of the $325 million-plus capital expenditure was in snacks, hotels and paper. The dividend payout ratio did jump last year to 81%, yet the previous 18 years’ average is just 50%, almost 20 percentage points lower than BAT’s distribution.

The U.K. associate, which has just one representative on the Indian firm’s board, has returned $2.1 billion to its own shareholders via buybacks over the past six years. No such luck for ITC investors. They can’t be offered a buyback, lest it increases BAT’s shareholding. Widows and pensioners get a 6% dividend yield, 5 percentage point more than on the benchmark Nifty 50 index. It’s a bit like collecting pennies in front of a value-crunching steam roller. In the past 10 years, ITC shares have lost 11% of their dollar value, while an investment in Nestle India Ltd. has tripled.

The opportunity ahead is clear. Agri-business offers the chance “for building a digital platform linking retailers with consumers, something that Chinese companies like Pinduoduo have done successfully," said Gaurav Patankar, head of emerging market equity strategy at Bloomberg Intelligence. As Mukesh Ambani, India’s richest man, and the 152-year-old Tata Group mimic platforms from the likes of Tencent Holdings Ltd. and Alibaba Group Holding Ltd., ITC can plug another gap, provided New Delhi gives up its addiction.

Tobacco is toxic. India is finding that tobacco nationalism is an even harder habit to quit.

(Article from Bloomberg Quint)

Relax the Ego : Trade with the Trend

 Relax the Ego: Trade with the Trend

Let’s think logically, how many times would a reversal in trend happen? 10% or 15 %? Then why are we always placing a bet for trend reversals?

The probability of success is not naturally in favour. The thrust of being able to catch the top/bottom often leaves back with the significant loss of capital. Trade the trend rather than contradicting the largest force around i.e. Mr. Market.

Tweak your stop losses with stock Volatility :

Static trading disciplines have some pitfall, I’ll explain this with an example. Let’s assume you have a strong money management discipline to not lose more than 1 percent in each trade and that’s your fixed stop loss.

Did you know you should not be trading all stocks? Yes, you heard it right. All stocks have different characteristics, and some have the average volatility of 0.5 percent a day and some range to 5 percent average volatility per day. Trading stocks with five percent volatility with a 1 percent stop loss may be statistically un-viable and chances of you getting triggered are quite high. You need to filter stocks that fit your money management or tweak your money management to a variable depending on stocks behavior.

Greed: Short-term pullbacks within overall Trend :

The greed overrules when a small reversal in trend is visible in a long-term trending stock. For instance, a stock which has been going down for some time now witnessed a pullback for a couple of days and often to make money from those short-term pullbacks investors gets trapped in bad quality stocks.

Recall your trading history, I’m sure there have been many.

• Lose Small : I know the secret of your losses. Have you lost a large amount of money in few trades? Yes, that’s a common mistake trader do. A bad money management leads to large losses in a couple of trades. As a trader, it’s important to lose small and gain big but often it is reverse. Remember, you still have a probability of winning big if you have chips but if you run out of chips, you are out of the game.
• Patience : Let me clarify, with patience I don’t mean holding on to a losing trade. Instead, it’s all about making the most when you are right. The market prices will reward you for your right research; don’t let it go for small profits, trail stop losses to ride it to the maximum possible. You need positive outliers to sustain the game which is otherwise negatively skewed due to transaction charges, taxes, impact cost, etc. The positive skew will come from gaining large in few trades.
• Inverse Pyramiding : Often investors average their losing trades also known as pyramiding. Let’s take an example, what would you do if you have a cut in your hand a) seek first aid and stop the bleeding b) cut your hand more at a different place? Of course, it’s option a, but why do we create more cuts when we know things are going wrong? Inverse pyramiding has worked well for me. Buy a decent tranche at entry with a defined small stop loss and reduce your cost by booking a few upwards and once comfortable stay with rest of the quantity till you make most of the trend.

Respect when the market says, it’s not your day Today :

Knowing when not to trade can contribute big time to the Profit & Loss. It’s not necessary to trade every day. Some days will be beyond your understanding or beyond any rationality.

The market will indicate you that it’s a bad day for you with a series of weird movements and stop losses. Shut the screen for the day and give yourself a break.

Defined Exits :

You cannot dig a well after the fire breaks out. Define your exits before you enter in a trade, this will help you overcome your emotions and behave rationally. Remember any loss beyond this defined point only and only is the barometer of your emotions and not rationality.

Can buying Quality Shares regularly be more rewarding than Mutual Fund SIP's ?

Can buying Quality Shares regularly be more rewarding than Mutual Fund SIP's ? 

SIP, or Systematic Investment Plan in a mutual fund is done irrespective of where the stock markets are headed (Up or Down). As a result, over the long term, your investment cost averages downward.

SIP investing can be done in direct equity shares too. The concept remains the same as SIP in mutual funds. However, SIP in Equity offers the following benefits.

Advantages of Equity SIP's
More control over your portfolio in terms of stock selection, purchase cost, exit price, percentage of each stock in the overall portfolio, sector allocation, etc.

1. Possible to change allocation across stocks and sectors at any time depending on market movement & your preferences. 
2. You can continue to hold winners & exit losers.
3. You receive dividends directly from companies whose stocks you own.
4. You can avoid over-diversification, which some mutual funds tend to do.
5. You don’t have to pay management fee that is levied by mutual funds.
6. You enjoy high liquidity; you can sell stocks at any time if you need cash.

You are convinced of the merits, but have a concern. Do you have the skills or the time to select & monitor individual stocks. How would he overcome this? On digging deeper, please find the concepts of ‘Buy what you see’ & ‘Quality’ investing.
‘Buy what you see’ is a simple concept. It implies that you invest in stocks of companies whose products you use & see a lot of other people using.

Quality Investing :
‘Quality investing’ implies investing in fundamentally strong companies that meet the following 10 parameters.

1. Market capitalization of over ₹ 1,000 Crore (Market Capitalization = Number of shares outstanding multiplied by market price per share).
2. The company should have been in existence for at least 10 years.
3. The company should have delivered Revenue/Sales growth of at least 10 per cent & Return on Capital Employed (ROCE) of at least 14 per cent consistently over the last 10 years. 
4. Competent & visionary management, the company should be a frontrunner to adopting new technologies to make its business more efficient & improve its offerings to its customers. 
5. Part of sector that is on the threshold of sustained exponential growth.
6. The company should successfully move through these value migration stages while maintaining its leadership. For instance, with respect to commuting, moving from cycles to cars & now, to driverless cars.
7. Should be a ‘Quality’ Company in the B2C (Business to Consumer) market segment, which facilitates building brands, customer loyalty, expanding across geographies & products, etc. thereby increasing the company’s equity valuations.
8. Look for quality companies you are familiar with based on brands, quality, service, loyalty, etc. A product or service that you use & like.
9. Quality companies usually offer products across the price spectrum, thereby increasing their consumer base. For instance, a Company manufacturing brown goods (refrigerators, air conditioners, etc.) can offer products at different price points. 
10. It’s best to avoid PSU stocks & Cyclical Companies in sectors such as Infrastructure & capital goods.

Searching for Examples : Lets decide & look for an example.
Look at the tube of toothpaste lying on the bathroom counter. Read the label ‘Colgate’. Think about the company manufacturing this toothpaste & realize that most people you know used Colgate toothpaste just like you. Then go & seek information about the stock Colgate Palmolive (India). The details of the search & study throws the following:

• The company’s market capitalization (Number of shares multiplied by the market price per share) was nearly Rs.40,000 crore.
• The company belonged to the personal care/FMCG sector. It has been in existence for more than a hundred years.
• The Company is run by credible & competent management & it has had strong financials over the last 10 years. Consistently high Return on capital employed (ROCE) of above 14%, sustainably high Profit Margins of over 10%, healthy free cash flow (FCF), strong balance sheet, Zero debt, etc.
• The company’s business was non-cyclical, i.e. it was not significantly impacted by economic cycles & it was a market leader in the mouth wash/care market. 
• The company is constantly innovating by introducing different kinds of toothpastes.
• The company is also a leader in the toothbrush and mouthwash segments offering innovative products - 360 degree Charcoal Gold, 360 degree Whole Mouth Clean, 360 degree Visible White & 360 degree Floss-Tip, Colgate ZigZag Black Toothbrush, etc.
• The company enjoys customer loyalty. It has an extensive distribution network & is strongly recommended by dentists. In fact, ‘Colgate’ satisfied all the parameters of a ‘quality’ stock.

Using the SIP investment strategy in ‘Buy what you see’/quality companies such as Colgate has the potential to generate consistent & robust returns over the long term, with low risk.

You would also discover that over the past 10 years, while multi-cap funds have generated CAGR returns in the range of 7 to 12.5%, a ‘Quality’ Portfolio has generated CAGR returns of about 19% (Excluding dividends & Bonus Issues, etc.). Against this, the Nifty 500 Index (Which constitutes most stocks that form part of multi-cap funds’ portfolios & ‘Quality’ portfolio) has generated CAGR returns of about 10%.

Decide to build a portfolio through SIP investing in 10-12 such quality stocks with allocation of not more than 10% of the portfolio in each stock. This way you are on your way to build you personal wealth.

ITC Limited - Company Review & Business Analysis

ITC Limited - Company Review & Business Analysis

ITC Limited is a holding company, which is engaged in the marketing of fast moving consumer goods (FMGC).

• The Company operates through four segments:
• FMCG
• Hotels
• Paperboards, Paper & Packaging
• Agri Business.
• The FMCG segment includes Cigarettes, such as cigarettes & cigars & others, such as branded packaged foods businesses (Staples, Snacks & Meals, Dairy & Beverages & Confections), Apparel, Education & Stationery Products, Personal Care Products, Safety Matches & Agarbattis.
• Its Hotels segment includes Hoteliering.
• With the Namaste as the enduring symbol of its hotel brand experience, ITC Hotels is one of India's leading hotel chains offering comprehensive hospitality solution through more than 100 Hotels in over 70 destinations in the country.
• ITC's Hotel group operates under four distinct brands :
• ITC Hotel at the Luxury End,
• WelcomHotel in the 5 Star Segment,
• Fortune in the Mid-Market to Upscale Segment &
• WelcomHeritage in the Heritage Leisure Segment.
• Its Paperboards, Paper & Packaging segment includes paperboards, paper, including specialty paper & packaging, including flexibles.
• ITC's Paperboards & Specialty Papers Business is the leader in volume, product range, market reach & environmental performance & is the clear market leader in the value-added paperboards segment.
• Providing internationally competitive quality & cost, this business segment caters to a wide spectrum of packaging, graphic, communication, writing, printing & specialty paper requirements.
• ITC takes great pride in servicing a large cross-section of industry requirements from cigarette papers & components to FMCG cartons, from electrical insulation papers to Bio-based Barrier Coated Board, from decorative laminate base to writing & printing papers & much more.
• ITC straddles the entire spectrum of paperboards from 100% virgin, food-grade boards which are made from renewable & sustainable sources to 100% recycled boards.
• ITC Speciality paper business includes :
• Communication Papers
• Wrapping Paper (Food Grade)
• Decor Paper
• ITC paperboard business includes :
• Virgin Boards
• ReCycle Boards
• Barrier Coated Boards
• Bio-Degradable Barrier Coated Boards
• Graphic Boards
• Its Agri Business segment includes Agri commodities, such as soya, spices, coffee & leaf tobacco.
• ITC is one of India's largest integrated agri business enterprise with significiant presence across every node of the agri value chain. 
• ITC's pre-eminent position as one of India's leading corporates in the agricultural sector is based on strong & enduring farmer partnerships that has revolutionized & transformed the rural agricultural sector. 
• A unique rural digital infrastructure network, coupled with deep understanding of agricultural practices & intensive research, has built a competitive & efficient supply chain that creates & delivers immense value across the agricultural value chain. 
• One of the largest exporters of agri products from the country, ITC sources the finest of Indian Feed Ingredients, Food Grains, Marine Products, Processed Fruits & Coffee. 
• ITC's Agri Business is the country's second largest exporter of agri-products. It currently focuses on exports & domestic trading of :
• Food Ingredients  : Soyameal 
• Food Grands        : Wheat & Wheat Flour, Rice, Pulses, Barley & Maize. 
• Marine Products  : Shrimps & Prawns 
• Processed Foods  : Fruit Purees, Concentrates, IQF & Frozen Fruits, Organic Food Products    
• Coffee & Coffee related items
• Its major brands include Aashirvaad, Sunfeast Dark Fantasy, Bingo!, Yumitos, YiPPee!, Candyman, GumOn, Classmate, Fiama Di Wills, Vivel, Superia, Engage, Wills Lifestyle, John Players, Mangaldeep & Aim, among others.

 

Price Volume Action in Stock Markets & Its Interpretations

Price Volume Action in Stock Markets & Its Interpretations 

What is Volume? 

Volume is simply the number of shares (Or contracts) traded during a specified time frame (e.g., hour, day, week, month, etc). The analysis of volume is a basic yet very important element of technical analysis. Volume provides clues as to the intensity of a given price move.

Interpretation of Volume Movement : There are many ways to interpret changes in volume trends. 

• One common belief is that rising prices coupled with increased volume, and falling prices coupled with decreased volume, is bullish.
• Conversely, if volume increases when prices fall & volume decreases when prices rise, the market is showing signs of underlying weakness.

The theory behind this is straight forward. Rising prices coupled with increased volume signifies increased upside participation (More buyers) that should lead to a continued move. Conversely, falling prices coupled with increased volume (More sellers) signifies decreased upside participation

So to Sum Up basis Above : 

1. Price Up + Heavy Volume     = Uptrend in Sustainable
2. Price Up + Light Volume       = Uptrend could be Temporary
3. Price Down + Heavy Volume = Downtrend is Sustainable
4. Price Down + Light Volume   = Downtrend could be Temporary

Usually in an Up-trending market volumes are heavy during Up-moves & light during down-moves. So a trader uses volume analysis for better entries.

How to Use the Above Analysis?

• Say ABC share is in an uptrend, everything seems strong. Suddenly it gets corrected a bit. Now that a strong stock is available at a better (Lower) price to buy, people fear it could tank more & miss out opportunities to enter, only to find out that it starts to move up again. 
• In such cases smart investors & traders look at volumes. If they can clearly see that 'this correction' was not supported by significant volumes, they start buying into the market at better price than others.

Other Uses of Price Volume Analysis :

• Volumes not only give clues about strength of trend but also about validity of breakouts & breakdowns.
• A resistance zone breached (Breakout) with heavy volumes is regarded as a genuine breakout. Whereas a resistance breakout accompanied by light volumes usually results into false breakouts.
• The case is same for support breakdown or a up or down trend-line breach.

So to Sum Up with Final Outcome :

1. Resistance Breakout + Heavy Volumes  = Genuine Breakout
2. Resistance Breakout + Light Volumes    = False Breakout
3. Support Breakdown + Heavy Volume    = Genuine Breakdown
4. Support Breakdown + Light Volume      = False Breakdown
5. Uptrend Line Breached on Downside + Heavy Volume  = High chance of Reversal
6. Uptrend Line Breached on Downside + Light Volumes = Low chance of Reversal
7. Downtrend Line Breached on Upside + Heavy Volume = High chance of Reversal
8. Downtrend Line Breached on Upside + Light Volume   = Low chance of Reversal

Big decision by RBI for cheque payments over Rs.50k! - The 'Positive Pay System' for Cheques

Big decision by RBI for cheque payments over Rs.50k! Bank account holders must know about this new positive pay system.

In order to check banking fraud, the Reserve Bank of India has decided to introduce from January 1st, 2021, the 'positive pay system' for cheques, under which re-confirmation of key details may be needed for payments beyond Rs.50,000. Availing of this facility would be at the discretion of the account holder. However, banks may consider making it mandatory in case of cheques for amounts of R.5 Lakh & above.

What is positive pay system? How it works?

1. Under the positive pay system, the issuer of the cheque will be required to submit electronically, through SMS, mobile app, internet banking or ATM certain minimum details of that cheque like date, name of the beneficiary, payee, amount to the drawee bank. 
2. These details will be cross-checked before the cheque is presented for payment.  
3. In case any discrepancy is flagged by cheque truncation system (CTS) to the drawee bank & presenting bank, redressal measures would be undertaken.
4. The National Payments Corporation of India (NPCI) will develop the facility of positive pay in CTS & make it available to participant banks.
5. Banks, in turn, shall enable it for all account holders issuing cheques for amounts of Rs.50,000 & above.
6. While availing of this facility is at the discretion of the account holder, banks may consider making it mandatory in case of cheques for amounts of Rs.5,00,000 & above
7. The positive pay system will be implemented from January 1st.
8. RBI says the "banks are advised to create adequate awareness among their customers on features of positive pay system through SMS alerts, display in branches, ATMs as well as through their website & internet banking".
9. Further, RBI says only those cheques that are compliant with positive pay system instructions will be accepted under the dispute resolution mechanism at the CTS grids.
10. Banks, however, will be free to implement similar arrangements for cheques cleared & collected outside CTS

How to earn money consistently from Intraday Trading?

Day trading is the act of buying & selling a financial instrument within the same day or even multiple times over the course of a day. Taking advantage of small price moves can be a lucrative game, if it is played correctly. But it can be a dangerous game for newbies or anyone who doesn't adhere to a well-thought-out strategy.

Day Trading Strategies or Techniques to Master before you make can consistent Profits : 

1. Gain Knowledge -In day trading proper knowledge is must without that u will loose everything. So do your homework. Make a wish list of stocks you'd like to trade and keep yourself informed about the selected companies and general markets. Scan business news and visit reliable financial websites.

2. Trade with Surplus Funds only -Assess how much capital you're willing to risk on each trade. Many successful day traders risk less than 1% to 2% of their account per trade. Set aside a surplus amount of funds you can trade with and you're prepared to lose. Remember, it may or may not happen. As many borrow capital from bank or from someone so if they loose they might not be in the position to repay it.

3. Keep yourself Available during Market Hours - Day trading requires your time. That's why it's called day trading. You'll need to give up most of your day, in fact. Don’t consider it if you have limited time to spare. The process requires a trader to track the markets & spot opportunities, which can arise at any time during trading hours. Moving quickly is key.

4. Start Small - As a beginner you need to start small. Don’t do harsh trading as you are not much knowledgeable and experienced.

5. Avoid Penny Stocks - You're probably looking for deals & low prices but stay away from penny stocks. As it won’t give you a profit & keep wasting your time so do trade only in blue chip stocks which is fundamentally strong and gives you profit.

6. Time Those Trades - Many orders placed by investors & traders begin to be execute as soon as the markets open in the morning, which contributes to price volatility. The middle hours are usually less volatile & then movement begins to pick up again toward the closing bell. Though the rush hours offer opportunities, it’s safer for beginners to avoid them at first.

7. Cut Losses With Limit Orders - It means don’t place a long target keep tracking the position & take a minimum profit otherwise if market reverse it will give you loss only instead of getting a minimum profit. “It’s always better to have something then nothing”

8. Avoid Greed - If you a make you day with your targeted profit then don’t go for another one else you wouldn’t have that profit as well which u have made earlier. Avoid multiple trades of different scripts or multiple lots in single trade these will only give you loss as these strategies not have more then 1% surety of giving you a profit.

9. Keep Patience & be Disciplined - You have to be patient & disciplined while trading. As impatient nature will not give you a profit.

10. Stick to the Plan - Successful traders have to move fast, but they don't have to think fast. Why? Because they've developed a trading strategy in advance, along with the discipline to stick to that strategy. It is important to follow your formula closely rather than try to chase profits. Don't let your emotions get the best of you & abandon your strategy. There's a mantra among day traders: "Plan your trade & trade your Plan."

11. Learn from the Mistakes - You always have to learn from the mistake. Keep records of your all trades & evaluate them after market hours and see where you made a mistake and learn from them and make sure you never repeat that again.

Few thing which needs to be learnt:

• Do trade according your capital only
• Use a proper Stop-loss
• Do your own research before market opens.
• Also check the situation of global market so that you can predict
• Do not trade immediately when market starts, observe markets for sometimes then start trading according to the market conditions.
• Do trade according to your loss bearing capacity
• Be Patient & disciplined
• Never Repeat Your Mistakes
• Don’t do emotional trading
• Do read books about investments

These are some points which have learnt through trading. Every person have their own experience & capacity of learning. Stock market is like a big ocean you as much as you will started knowing this you will go deeper & deeper. Still you will not going to 100% from it. Try your best to learn as much as you can. This consistency of learning will help you to get the more profit by doing day trading.

Relax the Ego: Trade with the Trend

Let’s think logically, how many times would a reversal in trend happen? 10% or 15%  right? Then why are we always placing a bet for trend reversals?

The probability of success is not naturally in favour. The thrust of being able to catch the top/bottom often leaves back with the significant loss of capital. Trade the trend rather than contradicting the largest force around i.e. Mr. Market.

• Tweak your stop losses with stock volatility : Static trading disciplines have some pitfall, I’ll explain this with an example. Let’s assume you have a strong money management discipline to not lose more than 1% in each trade and that’s your fixed stop loss.

Did you know you should not be trading all stocks? Yes, you heard it right. All stocks have different characteristics & some have the average volatility of 0.5% a day & some range to 5% average volatility per day. Trading stocks with 5% volatility with a 1% stop loss may be statistically un-viable and chances of you getting triggered are quite high. You need to filter stocks that fit your money management or tweak your money management to a variable depending on stocks behavior.

• Greed: Short-term pullbacks within overall trend : The greed overrules when a small reversal in trend is visible in a long-term trending stock. For instance, a stock which has been going down for some time now witnessed a pullback for a couple of days and often to make money from those short-term pullbacks investors gets trapped in bad quality stocks.

Recall your trading history, I’m sure there have been many.

• Lose Small : I know the secret of your losses. Have you lost a large amount of money in few trades? Yes, that’s a common mistake trader do. A bad money management leads to large losses in a couple of trades.

As a trader, it’s important to lose small and gain big but often it is reverse. Remember, you still have a probability of winning big if you have chips but if you run out of chips, you are out of the game.

• Patience : Let me clarify, with patience I don’t mean holding on to a losing trade. Instead, it’s all about making the most when you are right. The market prices will reward you for your right research; don’t let it go for small profits, trail stop losses to ride it to the maximum possible.

You need positive outliers to sustain the game which is otherwise negatively skewed due to transaction charges, taxes, impact cost, etc. The positive skew will come from gaining large in few trades.

• Inverse Pyramiding : Often investors average their losing trades also known as pyramiding. Let’s take an example, what would you do if you have a cut in your hand a) seek first aid and stop the bleeding b) cut your hand more at a different place?

Of course, it’s option a, but why do we create more cuts when we know things are going wrong? Inverse pyramiding has worked well. Buy a decent tranche at entry with a defined small stop loss and reduce your cost by booking a few upwards & once comfortable stay with rest of the quantity till you make most of the trend.

• Respect when the market says, it’s not your day today: Knowing when not to trade can contribute big time to the PnL. It’s not necessary to trade every day. Some days will be beyond your understanding or beyond any rationality.

The market will indicate you that it’s a bad day for you with a series of weird movements and stop losses. Shut the screen for the day and give yourself a break.

• Defined Exits: You cannot dig a well after the fire breaks out. Define your exits before you enter in a trade, this will help you overcome your emotions and behave rationally. Remember any loss beyond this defined point only & only is the barometer of your emotions & not rationality.

Happy Investing

SIP vs Lump Sum Investment : Which is the best way to invest in Mutual Funds

• There are two modes of investing in a mutual fund scheme - Systematic Investment Plan (SIP) & Lump Sum. While the former implies periodic investments (at a chosen interval) to average out one’s cost of investing, the latter indicates investing the available amount at one go in the chosen scheme.
• While choosing between both modes, investors should first consider their income & earnings.
• According to Mohit Bhatia, Head – Sales & Marketing, Canara Robeco Mutual Fund, SIP mode is best suited for the category of mutual fund schemes that have historically exhibited high volatility in returns (For example Equity & Hybrid category) thus making it impossible to judge the relative price attractiveness, at any particular point of time.
• Users can choose months or years for SIP investment as per their convenience and then allow the automated system to do the rest.
• On the benefits of SIP, Bhatia says that it inculcates a disciplined investing habit that provides an opportunity to generate robust long term returns.
• Prateek Mehta, Co-Founder, Scripbox, meanwhile, calls it an apt mode due to its rupee cost averaging feature.
•  “SIPs help in cutting through market volatility by continuing investment cycle when the market goes down or up, benefitting from both,” he adds.
• On Lump Sum Investment, Mehta says that investors with significant cash in hand can definitely go for it depending on their financial plan, investment goals & investment horizon. Even investors with a low equity allocation can choose to invest through lump sum investments.
•  Lumpsum investment, according to Bhatia, may be employed for sporadic cash inflows (that may have been received by an investor on account of intermittent encashed gains, profit from the sale of assets, year end bonuses etc) into low volatility scheme categories like liquid or short-maturity debt mutual funds.
•  However, it is significant to remember that lumpsum investments can see significant volatility in the short term. Nevertheless, SIP & Lump Sum investing are both worthy ways to set up the investment account. 
• Whether investing via lumpsum or SIP, it is important to understand that investments in market-linked products like mutual funds are best suited for investors who demonstrate habits of regular investing & patience across market cycles. 
• "History & power of compounding tell us that investing for longer horizons matters more than anything else, whether users choose to invest through lump sums or SIP," Mehta opines.

         (Article from MoneyControl.com)