Sensex Pares Weekly Decline to 3.6%, RBA Silent on Rupee Weakness

Mukesh Buch
28 Aug, 2015
New York City

Stocks in Mumbai rebounded but the rupee struggled and investors are increasingly questioning the lack of action from the Reserve Bank. Bharti is looking to sell 6,500 telecom towers in Sri Lanka and Bangladesh.

[R]6:00 PM Mumbai – Stocks in Mumbai rebounded but the rupee struggled and investors are increasingly questioning the lack of action from the Reserve Bank. Bharti is looking to sell 6,500 telecom towers in Sri Lanka and Bangladesh.[/R]

Stocks advanced in Mumbai and market indexes powered ahead after a volatile week that saw benchmark index plunge as much as 6% in one day.

Stocks rebounded but rupee continued to struggle following the weakness in other emerging market currencies.

However, the selling in rupee is overdone and the currency has declined nearly 10% in the year despite the 30% plunge in crude oil price.

Crude oil is the largest imported commodity and the largest contributor to the trade deficit of India.

Rupee weakened 10 paisa to 66.14 against one U.S. dollar.

The Sensex Index increased 161.19 or 0.6% to close at 26,392.38. The CNX Nifty rose 53 or 0.7% to 7,001.95.

For the week, Sensex Index and CNX Nifty plunged 3.6%.

Gainers & Losers

Bharti Airtel Limited soared 4.3% to ₹362.25 after the largest wireless services provider appointed bankers to sell telecom operations in Sri Lanka and Bangladesh.

The company may sell its 2,500 telecom towers in Sri Lanka and 4,000 telecom towers in Bangladesh.

DLF Limited edged up 0.5% ₹115.05 after the real estate developer plans to sell its majority stake in a residential project in New Delhi to Government Investment Corporation, pension fund controlled by Singapore.

Gammon Infrastructure Projects Limited fell 0.9% to ₹11.32 after the infrastructure developer plans to sell its nine project companies to BIF Holdings Pte for about ₹563 crore.

Lloyd Electric & Engineering Limited advanced 2.1% to ₹212.40 after the consumer goods maker plan to acquire Noske-Kaeser’s Rail and Vehicle business in Germany, New Zealand, Australia, Brazil and United States.

SeQuent Scientific Limited rose 0.6% to ₹830 after the pharmaceutical products maker plans to acquire the animal health business of Lyka Exports.

Tube Investments of India Limited increased 1.4% to ₹402 after the vehicle components maker signed an agreement with Belgium-based Ridley Bikes to acquire the brand licensing rights.

The agreement covers the licensing rights in India, Sri Lanka, Bangladesh, Nepal, Bhutan and Myanmar for a period of 33 years.