Sensex in India Plunges 1.9%, Rupee Drops

Mukesh Buch
20 Apr, 2015
New York City

Stocks in Mumbai traded lower and market indexes dropped 1.9% on earnings jitters and strengthening dollar. JSW said steel production in March jumped 11%. LIC Housing Finance net rose 2%. Titagarh Wagons net surged.

[R]6:00 PM Mumbai – Stocks in Mumbai traded lower and market indexes dropped 1.9% on earnings jitters and strengthening dollar. JSW said steel production in March jumped 11%. LIC Housing Finance net rose 2%. Titagarh Wagons net surged.[/R]

Market indexes on Dalal Street dropped sharply following an Asia-wide sell-off after markets in Europe and New York closed down.

Market indexes in India plunged 1.9% on the mounting earnings jitters compounded by the recent surge in oil price and the strength in the U.S. dollar.

Rupee decreased 55 paisa to 62.91 against one dollar on the worries that the rising dollar will accelerate the outflow of capital.

The Sensex Index tumbled 555.89 or 1.9% to close at 27,886.21. The CNX Nifty slipped 157.90 or 1.8% to 8,448.10.

Investors also focused on the news from China, the second largest economy. People’s Bank of China announced a cut in bank reserves requirements, the largest cut since the global financial markets crisis in 2008.

In addition, benchmark index in China rose 1.2% in the morning session but reversed market direction in the afternoon session and closed down 1.6% for the day after regulators crackdown to curb speculative flow.

Gainers & Losers

Cimmco Limited soared 9.3% to ₹103.20 after the heavy engineering products maker said net in the fourth-quarter swung to a loss of ₹3.78 crore compared to profit of ₹0.05 crore in the same period a year ago.

Net sales plunged 54.8% to ₹23.31 crore.

Crompton Greaves Limited fell 0.5% to ₹172.50 after Reuters said consortium led by the U.S.-based private equity firm Advent International plans to buy consumer products division of the company.

Glenmark Pharmaceuticals Ltd climbed 4.3% to ₹901.60 after the company said Singapore-based Temasek plans to invest about $151 million in the company.

JSW Steel increased 0.6% to ₹962.90 after the third largest steel maker said steel production in March jumped 10.7% to 13.5 million tons compared to 12.2 million tons in the same period last year.

KNR Constructions Limited advanced 1.9% to ₹447.40 after the infrastructure developer received orders worth ₹937.08 crore from National Highway Authority of India.

LIC Housing Finance Limited rose 0.9% to ₹441.65 after the financial services provider said net in the fourth-quarter increased 2.2% to ₹378.18 crore.

Net revenues in the quarter climbed 15.44% to ₹2,860.59 crore.

Titagarh Wagons Limited advanced 1.2% to ₹591.75 after the mining equipment maker said net in the fourth-quarter surged four-fold to ₹8.78 crore.

Net revenues in the quarter soared 59.6% to ₹118.46 crore.

Videocon Industries Limited rose 0.2% to ₹158.20 after the consumer products maker said it established oil reserves at offshore oil fields controlled by the company in Brazil.