India’s mining output has fallen by 3.5% over the last two years, making the sector among the worst hit by policy impasse. Of the 218 coal blocks allocated since 1993, only 46 are producing coal or close to doing so, while the rest are dogged by clearance and land acquisition issues. As for iron ore, companies are still struggling to resume production after some states banned it in 2012 to curb illegal mining. Last month, Jharkhand ordered the closure of a majority of iron-ore mines operating under “deemed renewal” status after their leases expired. And the recent Supreme Court order deallocating all but four coal blocks allotted since 1993 created downside risks to mining output.
Yesterday a BUY call was initiated in Reliance Power Ltd at Rs.67.50. The scrip moved to Rs.68.70, intra-day. The short term target for the stock is Rs.72.
My Recommended HINDALCO Industries Ltd this week, at around Rs.157, yesterday crossed Rs.169, before closing at Rs.169.15. The scrip I am told was recommended by a number of brokerage houses yesterday, with medium term target of Rs.200 and short term target of Rs.172 (which might be achieved in this week).