India Struggles with Rising Trade Deficit, Sensex Jumps 1%

Mukesh Buch
16 Sep, 2015
New York City

Trade deficit in August widened to a new monthly high after non-oil imports continued to rise at a faster pace. Trade deficit in the fiscal year between April and August declined marginally to $57.5 billion from $58.2 billion in a year ago period.

[R]6:00 PM Mumbai – Trade deficit in August widened to a new monthly high after non-oil imports continued to rise at a faster pace. Trade deficit in the fiscal year between April and August declined marginally to $57.5 billion from $58.2 billion in a year ago period.[/R]

Stocks in Mumbai traded higher following the worldwide market advance on the hopes that the U.S. Fed will delay rate hike to a later date after the meeting on Thursday.

August Exports declined 20.7% to $21.27 billion and slid 15.2% in rupee terms. Imports in the month slid 9.9% to $33.74 billion and fell 3.8% in rupee terms,

The trade deficit in August widened to $12.48 billion from $10.67 billion in a year ago month, the Ministry of Commerce and Industry reported.

Rupee weakened 9 paisa to 66.45 against one U.S. dollar.

The Sensex Index jumped 258.04 or 1% to close at 25,963.97. The CNX Nifty advanced 70.05 or 0.9% to 7,899.15.

Gainers & Losers

ABB India Limited dropped 1.2% to ₹1,095.10 after the automation technology company won orders worth ₹1.19 billion to provide plant electrification, automation and substation solutions for solar power plants.

CMI FPE Limited declined 4.2% to ₹405.10 after the cold rolling equipment maker plans to start new manufacturing unit at Bawal, Haryana

JMC Projects (India) Ltd soared 14.4% to ₹227.90 after the real estate developer won new orders worth of ₹702 crore.

Indian Oil Corporation Limited fell 0.9% to ₹395 after the oil and gas explorer plans to invest ₹17.5 abaj or ₹1.75 trillion over the next 5 to 7 years.

The company plans to invest ₹50,000 crore in its core refining business and expand four refineries - Koyali in Gujarat, Mathura in Uttar Pradesh, Panipat in Haryana and Barauni in Bihar.

Natco Pharma Ltd gained 1.1% to ₹2,249.85 after the pharmaceutical ingredients maker plans to raise up to ₹340.88 crore.

Nila Infrastructure Ltd slipped 1.1% to ₹8.07 after the infrastructure developer secured another order of ₹41.30 crore from Ahmedabad Municipal Corporation.

Pennar Industries Limited edged up 0.5% to ₹47 after the steel products maker’s subsidiary secured orders worth ₹165 crore.