Sensex in India Falls 2%

Mukesh Buch
09 Mar, 2015
New York City

Markets in India tracked lower indexes in Asia following the growing worries that the U.S. Federal Reserve may lift rates sooner than expected. Ambuja, Hindalco, Jaypree and Jindal Steel won coal mining rights. DLF announced a plan to restructure debt-laden ₹15,000 crore projects.

[R]6:00 PM Mumbai – Markets in India tracked lower indexes in Asia following the growing worries that the U.S. Federal Reserve may lift rates sooner than expected. Ambuja, Hindalco, Jaypree and Jindal Steel won coal mining rights. DLF announced a plan to restructure debt-laden ₹15,000 crore projects.[/R]

Market indexes in Mumbai plunged 2% following weak markets in Asia and tracking a sharp decline in indexes on Wall Street.

Traders sold stocks in New York on the worries that the U.S. Federal Reserve may be lift rates sooner than expected from the record low rates for more than five years.

Interest rates in the U.S. have hovered near zero since the onset of financial crisis as the central bank ramped up printing money and flooded the financial system for $4 trillion to avert the recession from turning into a depression.

However, the money printing has not come without cost and retirees have suffered the most after the rates declined to zero and wiped out income for most savers.

Indian rupee eased 40 paisa to 62.55 against one dollar.

The Sensex Index declined 604.17 or 2.1% to close at 28,844.78. The CNX Nifty slipped 181 or 2% to 8,756.75.

Gainers & Losers

Adani Enterprises Limited slipped 4.7% to ₹666.85 after the conglomerate plans to sell coal from its mines in Australia.

Ambuja Cements Ltd slipped 3.7% to ₹263.60 after the cement maker won the Gare Palma IV/8 coal block rights for about ₹157 crore in Chhattisgarh.

Container Corporation of India Limited surged 7.8% to ₹1,604.05 after the container transportation and the logistics company said The Reserve Bank permitted up to 34% of foreign investment in the company.

DLF Limited slid 1.8% to ₹150.85 after the real estate developer plans to restructure development projects worth about ₹15,000 crore and lower debt.

Hindalco Industries Limited dropped 4.7% to ₹140.95 after the aluminium and copper producer won the Dumri coal block rights worth ₹2,127 per ton in Jharkhand.

Jindal Steel & Power Limited soared 4.8% to ₹194.30 after the steel producer won the Tara coal block rights for ₹126 per ton in Chattisgarh.

Jaypee Infratech Limited tumbled 4.7% to ₹19.15 after the infrastructure developer won Mandla-South block rights in Madhya Pradesh.

Suven Life Sciences Limited rose 0.5% to ₹234.55 after the drug maker secured patents for the treatment of brain diseases in Israel and Eurasia. The company said in a regulatory filing with the BSE that the total number of patents in Israel increased to three and in Eurasia to 14.

Eurasian Patent Organization covers former Soviet Republic countries including Russia, Kazakhstan, Belarus and Armenia.

Power Grid Corporation of India Limited fell 3.2% to ₹150.10 after the power transmission company said it plans to invest ₹1,481 crore in various projects in the next 2-3 years.