Sensex in India Jumps 0.9%, Wholesale Price Decline Accelerates

Mukesh Buch
14 Sep, 2015
New York City

The wholesale prices in India declined at a faster pace in August, largely on 16% drop in fuel prices. Volatile vegetable prices, sensitive issues for most families, declined 21% but prices for pulses rose 36%. JK Tyre is a step closer to acquire tire unit of Kesoram for $300 million.

[R]6:00 PM Mumbai – The wholesale prices in India declined at a faster pace in August, largely on 16% drop in fuel prices. Volatile vegetable prices, sensitive issues for most families, declined 21% but prices for pulses rose 36%. JK Tyre is a step closer to acquire tire unit of Kesoram for $300 million.[/R]

Market indexes in Mumbai opened higher and latest read on wholesale index showed deepening price decline. The prices continued to decline across the board, largely on the sharp fall in fuel price of 16.5%.

The wholesale price index decline in August accelerated to 4.95% compared to the fall of 4.05% in July and 3.85% increase in the same month last year, the Ministry of Commerce & Industry reported.

Volatile vegetable prices declined by 21% but prices of pulses, staple for most families across the nation, rose by 36%.

Rupee strengthened 23 paisa to 66.31 against one U.S. dollar.

The Sensex Index advanced 246.49 or 0.9% to close at 25,856.70. The CNX Nifty increased 82.95 or 1.1% to 7,872.25.

Gainers & Losers

Ashoka Buildcon Limited edged up 0.5% to ₹162.65 after the real estate developer won two projects worth ₹440 crore from Karnataka Road Development Corporation.

JK Tyre & Industries Ltd declined 3.3% to ₹104.90 after the largest tyre maker received an approval from the board to buy tire unit from Kesoram for ₹2,200 crore.

L&T Finance Holdings Limited soared 4.3% to ₹66.85 after the financial services provider said the Boston-based alternative asset manager Bain Capital plans to acquire a $300 million stake.

Manali Petrochemicals Limited increased 1.1% to ₹22.80 after the petrochemical products maker signed an agreement with the Government of Tamil Nadu for the expansion of the polyol capacity and a power project.

Rolta India Limited jumped 3.4% to ₹101.35 after the IT solutions provider secured a $13 million contract for engineering systems.

Siemens Limited advanced 2% to ₹1,300.10 after the company secured an order worth ₹81 crore from Diesel Locomotive Works.