India Lowers Rate to 7.75%, Sensex Soars 2.7%

Mukesh Buch
15 Jan, 2015
New York City

Bajaj Auto profit fell 5%. Bajaj Finserv net climbed 24%. BHEL secured a contract worth Rs 1,202 crore from Karnataka. Federal Bank net jumped 15%. NIIT profit declined 9%. Network 18 Media net swung to profit.

[R]6:00 PM Mumbai – Bajaj Auto profit fell 5%. Bajaj Finserv net climbed 24%. BHEL secured a contract worth Rs 1,202 crore from Karnataka. Federal Bank net jumped 15%. NIIT profit declined 9%. Network 18 Media net swung to profit.[/R]

Market indexes in India soared after an unexpected rate cut of 25 basis points.

Reserve Bank of India lowered its reference rate to 7.75% from 8% and the central bank Governor Raghuram Rajan cited easing inflationary pressure and the sharp fall in international price of oil.

Indian rupee strengthened to 62.08 as oil price declined 22% in international markets in the first two weeks of trading following 48% loss in 2014.

The Sensex Index climbed 728.73 or 2.7% to close at 28,075.55. The CNX Nifty jumped 216.60 or 2.6% to 8,494.15.

Gainers & Losers

Bajaj Auto Limited jumped 2.3% to Rs 2,417.95 after the second largest two-wheeler maker reported net in the third-quarter fell4.78% to Rs 816.24 crore.

Revenues jumped 10.24% to Rs 5,657.17 crore.

Bajaj Finserv Limited advanced 1.9% to Rs 1,287 after the conglomerate lender said net in the third-quarter climbed 23.6% to Rs 347.37 crore.

Net Revenues soared 36.7% to Rs 1,905.34 crore.

Bharat Heavy Electricals Limited rose 0.3% to Rs 268.55 after the power generation equipment maker secured a contract worth Rs 1,202 crore from Karnataka Power Corporation.

Bharat Petroleum Corporation Limited gained 1.6% to Rs 662.40 and the central government controlled oil marketing companyplans to expand capacity at Bina refinery in Madhya Pradesh to 15 million tons at cost of about Rs 23,000 crore.

The Federal Bank Limited slipped 2.2% to Rs 144.80 after the financial service provider said net in the third-quarter jumped15.02% to Rs 264.69 crore.

Net Revenues advanced 10.24% to Rs 2,090.01 crore.

NIIT Technologies Limited dropped 1.9% to Rs 375.20 after the information technology company said net in the third-quarter slipped 9.2% to Rs 42.2 crore.

Total Revenues added 1.4% to Rs 595.3 crore.

Network 18 Media & Investments Limited fell 0.9% to Rs 61.80 after the entertainment company reported net in the third-quarter swung to profit Rs 12.15 crore compared to a loss of 11.72 a year ago period.

Revenues jumped 12.18% to Rs 819.28 crore.