Inflation Accelerates in India, Rupee Drops to 63

Mukesh Buch
13 Mar, 2015
New York City

Sensex in India declined after consumer price index in February accelerated on the rising food prices. Snapdeal plans to buy online mobile recharge platform Freecharge for ₹2,800 crore. Tata Motors said Jaguar Land Rover

[R]6:00 PM Mumbai – Sensex in India declined after consumer price index in February accelerated on the rising food prices. Snapdeal plans to buy online mobile recharge platform Freecharge for ₹2,800 crore. Tata Motors said Jaguar Land Rover’s total sales in February slipped 6%.[/R]

Stocks traded volatile in Mumbai after consumer price index in February was ahead of expectations and rupee weakened to 63 against the dollar.

Sensex faced selling pressure after the latest consumer price index in February increased to 5.37% from 5.11% in January, according to statistics office in India.

In a separate report, industrial production index increased more than expected 2.6% in January, trimming the losses in rupee.

Investors also welcomed the passage of insurance industry reform bill in Rajya Sabha, boosting the Modi government’s reform agenda.

Rupee eased 47 paisa to 62.96 against one dollar.

The Sensex Index dropped 427.11 or 1.5% to close at 28,503.30. The CNX Nifty slipped 128.25 or 1.5% to 8,647.75.

For the week, Sensex Index and CNX Nifty declined 3.1%, the largest weekly loss in 2015.

Gainers & Losers

Gujarat State Fertilizers & Chemicals Limited advanced 1.2% to ₹90.50 after the fertilizer maker secured an approval from central government to increase the production of neem-coated urea up to 100% from 35%.

DLF Limited climbed 5.7% to ₹157.50 after the real estate developer said U.S.-based Blackstone Group plans to buy 40% stake in the company’s district-Cybercity in Gurgaon.

Sesa Sterlite Limited fell 2.2% to ₹195.60 after the iron ore miner in Karnataka estimated 700,000 tons production this month.

Snapdeal, the online retailer plans to buy, Freecharge, online mobile recharge platform, for ₹2,800 crore or $450 million.

State Bank of India dropped 2.2% to ₹280.85 after the financial services provider plans to conduct an online auction of flats, warehouses and offices worth $200 million.

Tata Motors Limited fell 1.2% to ₹557.05 after the automobile company said U.K.-based Jaguar Land Rover’s total sales in February slipped 5.89% from a year ago month to 28,689 units.