GDP Growth in India Slows to 7%, ONGC to Invest $24 B in Mozambique

Mukesh Buch
31 Aug, 2015
New York City

ONGC plans to invest $24 billion in Mozambique to produce natural gas and Indian Oil plans to build a $3 billion petrochemicals plant in Iran. Gillette India profit surged 335%.

[R]6:00 PM Mumbai – ONGC plans to invest $24 billion in Mozambique to produce natural gas and Indian Oil plans to build a $3 billion petrochemicals plant in Iran. Gillette India profit surged 335%.[/R]

Stocks in Mumbai were under pressure after the first-quarter economic growth declined from the previous quarter on lower government spending.

July quarter economic growth declined to 7% from the March quarter growth of 7%, largely on the weak growth in the government spending.

Economic growth in the quarter a year ago was 6.7%.

Statistics bureau said agriculture growth increased at 1.9%, manufacturing sector growth was 7.2% and construction activities increased by 6.9%.

Services, including financial, real estate and professional services, growth declined to 8.9% from the 9.3% growth in the quarter a year ago.

Fiscal year second-quarter economic growth is likely to pick up on the rising government capital spending announcements.

Rupee weakened 33 paisa to 66.47 against one U.S. dollar.

The Sensex Index decreased 109.29 or 0.4% to close at 26,283.09. The CNX Nifty fell 30.65 or 0.4% to 7,971.30.

For the month, Sensex Index plunged 6.3% and for the three months to August declined 5.5%. In the last six months, Sensex Index tumbled 11.1% and in the year so far fell 4.4%.

For the month, CNX Nifty tumbled 6.6% and in the three months to August dropped 5.5%. For the six months, CNX Nifty plunged 11.4% and in the year so far declined 3.8%.

Gainers & Losers

Gillette India Limited advanced 2.4% to ₹4,984 after net in the fourth-quarter surged 334.5% to ₹72.83 crore.

Net revenues in the quarter jumped 12.8% to ₹540.91 crore.

Indian Oil Corporation Limited increased 2.3% to ₹414.65 after oil and gas explorer plans to build a $3 billion petrochemicals plant in Iran.

Larsen & Toubro Limited fell 0.7% to ₹1,605.30 and its construction subsidiary won orders worth ₹1,489 crore from Public Health Engineering Department, Ajmer Rajasthan.

Oil and Natural Gas Corporation Ltd decreased 1.8% to ₹239.35 after the oil and gas explorer plans to invest about $24 billion to explore natural gas production in Mozambique.

Punj Lloyd Limited jumped 5.4% to ₹25.50 after infrastructure developer secured turnkey contract worth ₹1,094 crore from Indian Oil Corporation.

TVS Capital Funds Ltd, the TVS group’s private equity firm plans to acquire minority stake in the online beauty products retailer Nykaa.com.