New Record High for Sensex in India, Rupee Firms on ECB Printing Money

Mukesh Buch
23 Jan, 2015
New York City

Alstom said net swung to profit. Biocon net fall 14% but revenues rose 8%. Cairn India profit plunged 53%. Colgate jumped 16%. Emami agreed to acquire 67% stake in an Australian company. Muthoot Finance net declined 21%.

[R]6:00 PM Mumbai – Alstom said net swung to profit. Biocon net fall 14% but revenues rose 8%. Cairn India profit plunged 53%. Colgate jumped 16%. Emami agreed to acquire 67% stake in an Australian company. Muthoot Finance net declined 21%.[/R]

Stocks in Mumbai extended advances and rupee firmed after European Central Bank announced larger than expected plan to print money and support inflationary forces in the euro zone.

The large stimulus in the euro zone is expected to jolt the stagnating economy, spur investments and create more jobs. However, the diverging economies in the euro zone are struggling with structural forces that the central bank may not be able to solve with printing additional money.

European Central Bank followed through its widely advertised and anticipated plan to provide additional stimulus. The latest plan from the central bank will acquire government bonds of as much as 60 billion euros a month till September 2016.

ECB President Mario Draghi also said in a statement that the bank will limit the purchase of individual bond at 25% and limit to 33% outstanding bonds from a nation and the ECB will not have a preferred bond holder status.

The decision also highlighted the struggle in the euro zone and it took nearly six weeks of intense negotiations to work out details of the agreement and overcome German bankers’ resistance.

The European Central Bank will share in risk with national country bank in the event of a default addressing the prime concern of German lawmakers and Bundesbank to prevent from transferring risks to wealthy countries in the union.

Indian rupee closed at 61.42 against one dollar.

Central banks in Japan, Canada, U.S., U.K., Turkey and the euro zone have all targeted to weaken the currency and revive inflation and force consumers to save less.

The Sensex Index climbed 272.82 or 0.9% to close at 29,278.84. The CNX Nifty rose 74.20 or 0.9% to 8,835.60.

For the week, Sensex soared 4.1% and CNX Nifty climbed 3.6%.

Gainers & Losers

Alstom India Limited dropped 2.3% to ₹697.50 after the power generation company said net in the third-quarter swung to profit₹14.90 crore compared to a loss of ₹7.58 crore.

Net sales tumbled 27.04% to ₹387.77 crore.

Biocon Limited slipped 3.2% to ₹412.70 after the generic pharmaceuticals maker reported net in the third-quarter fell 13.39% to ₹90.93 crore.

Net revenues advanced 8.25% to ₹778.99 crore.

Cairn India Limited jumped 3.8% to ₹247.70 after the domestic crude oil producer reported net in the third-quarter plunged 53.2% to ₹1,359.64 crore.

Net sales declined 19.76% to ₹4,020.57 crore.

Colgate-Palmolive (India) Limited fell 0.6% to ₹1,911.20 after the personal care products maker said net in the third-quarter jumped 16% to ₹130.90 crore.

Net revenues advanced 12% to ₹988.60 crore.

Emami Limited rose 0.4% to ₹896.20 and the healthcare products was reported to acquire 66.67% stake in Australia-based Fravin Pty Ltd.

HCL Infosystems Limited slumped 10.5% to ₹44.35 after the software services provider reported net loss in the third-quarter widened to ₹ 50.82 crore compared to ₹44.52 crore in the same period last year.

Total revenues plunged 25% to ₹1,468.81 crore.

Muthoot Finance Limited dropped 2.9% to ₹221.95 after the financial service provider said net in the third-quarter declined 20.5% to ₹154.44 crore.

Revenues slipped 11% to ₹1,069.25 crore.

Zuari Agro Chemicals Ltd plunged 11.9% to ₹252.50 after the agricultural solution provider reported net in the third-quarter rose 0.2% to ₹17.13 crore.

Net sales decreased 8.3% to ₹1,412.71 crore.