Rupee Sinks Near Record Low in India, Pharma Stocks Rally Again

Mukesh Buch
20 Aug, 2015
New York City

Sensex in Mumbai declined on the persistent weakness in rupee and investors overlooked the new lows in crude oil price. Sun Pharmaceutical and Lupin won U.S. regulatory approvals for new drugs. PVR acquired 70% stake in Zea Maize Pvt Ltd.

[R]6:00 PM Mumbai – Sensex in Mumbai declined on the persistent weakness in rupee and investors overlooked the new lows in crude oil price. Sun Pharmaceutical and Lupin won U.S. regulatory approvals for new drugs. PVR acquired 70% stake in Zea Maize Pvt Ltd.[/R]

Stocks in Mumbai dropped and market indexes declined more than 1% after rupee traded near record low and volatile Chinese stocks dampened sentiment in Asian markets.

Market volatility perked up in Shanghai as investors accelerated selloff a day after central bank pumped more liquidity and investors worried that the Chinese economy may be slowing down faster than the recent economic data suggest.

Crude oil and copper declined to new six-year low on another day of volatile trading in China and the prospect of more economic slowdown.

The Reserve Bank of India granted provisional license to set up payment banks to 11 companies including, Reliance Industries, India Post, AB Nuvo, Bharti Airtel, Vodafone and Paytm.

The ''in-principle'' approval will be valid for of 18 months.

Rupee weakened 28 paisa to 65.54 against one U.S. dollar.

The Sensex Index dropped 323.82 or 1.2% to close at 27,607.82. The CNX Nifty slipped 122.40 or 1.4% to 8,372.75.

Gainers & Losers

Adani Enterprises Limited slipped 2.3% to ₹83.25 and the company is in talks with Japan-based Softbank and Taiwan-based Foxconn to secure investment in a $3 billion solar panel project.

Andhra Bank declined 3.7% to ₹74 after the financial services provider plans to raise ₹3,000 crore through various instruments.

Dredging Corporation of India Limited declined 4.7% to ₹387.30 after the government plans to sell 5% stake in the company.

JSW Steel Limited decreased 1.4% to ₹961.05 after the steel producer plans to invest about ₹5,000 crore on various capital expenditure projects in fiscal ending March 2016.

Lupin Limited soared 5.4% to ₹1,892.10 after the generic drug maker received approval from U.S. Food & Drug Administration for Fenofibrate tablets, the generic version of Tricor.

PVR Limited edged up 0.1% to ₹835.35 after the film distributor acquired 70% stake in the maker of popcorns and other food products Zea Maize Pvt Ltd, for about ₹5 crore.

Sun Pharmaceutical Industries Ltd. rose 0.9% to ₹935.65 after the pharmaceutical products maker received approval from the U.S. Food & Drug Administration for Ximino capsules for the treatment of skin disease.

TRF Limited dropped 3.2% to ₹284.30 after the largest tire-maker secured orders worth ₹73.9 crore from Bharat Heavy Electrical Ltd.