Sensex Drops 2% on Global Weakness, Maruti Sales Rises

Mukesh Buch
01 Sep, 2015
New York City

Sensex in Mumbai dropped 2% on weakness in China and European markets. Maruti Suzuki said August total sales increased 6% but Mahindra & Mahindra total sales declined 22%. Sun Pharma acquired opiates business in Australia from Glaxo. Petronet is looking to raise $155 million through a bond offering.

[R]6:00 PM Mumbai – Sensex in Mumbai dropped 2% on weakness in China and European markets. Maruti Suzuki said August total sales increased 6% but Mahindra & Mahindra total sales declined 22%. Sun Pharma acquired opiates business in Australia from Glaxo. Petronet is looking to raise $155 million through a bond offering.[/R]

Stocks in Mumbai traded sharply lower at the opening and declined more in the late afternoon trading after European indexes opened down 2%.

Sensex in Mumbai and Asian indexes opened lower after manufacturing index showed larger than expected weakness and service sector also weakened in the latest economic data.

The latest market selloff in Mumbai was driven by the volatile markets in Asia and China. Moreover, the latest domestic GDP data was tad softer than estimated. Foreign investors led the market selloff in Mumbai but domestic investors focused on the latest quarter which is expected to benefit from the rising government spending in the period.

Rupee strengthened 27 paisa to 66.21 against one U.S. dollar.

The Sensex Index plunged 586.65 or 2.2% to close at 25,696.44. The CNX Nifty dropped 185.45 or 2.3% to 7,785.85.

State-controlled oil retailers and refiners traded lower after HPCL and Indian Oil lowered prices of petrol by ₹2 and diesel by 50 paisa per litre.

Gainers & Losers

Dishman Pharmaceuticals & Chemicals Limited increased 1.3% to ₹225.05 after net in the quarter surged 59% to ₹37.76 crore.

Infosys Limited slid 0.5% to ₹1,089.65 after the information technology received approval from Karnataka government to develop three more campuses in Bengaluru at a total cost of ₹1,918 crore.

INOX Leisure Limited dropped 2.5% to ₹227.25 and the multiplex chain operator plans to buy two theatres in Gujarat for an undisclosed sum.

INOX Wind Limited advanced 2.3% to ₹374.20 after the wind power solutions provider received an order for a 100 megawatts wind power project from Ostro Energy in Madhya Pradesh.

Mahindra & Mahindra Ltd jumped 3.8% to ₹1,176.80 and the tractor maker said August sales declined 22% to 11,699 units.

The company added total domestic tractor sales in the month dropped 22% to 10,751 exports plunged 26% to 948.

Maruti Suzuki India Limited slipped 2.6% to ₹4,058.10 after the largest automaker reported total sales in August increased 6.4% to 117,864 units.

The automaker said domestic sales in the month advanced 8.6% to 106,781 units and export slipped 11% to 11,083 units.

Petronet LNG Limited edged down 0.1% to ₹176.75 after the largest liquefied natural gas importer plans to raise ₹1,000 crore through a bond offering.

Sun Pharmaceutical Industries Ltd rose 0.3% to ₹900.75 after the pharmaceutical products maker agreed to acquire Glaxo Smith Kline’s opiates business in Australia.