Sensex in India Drops 2.1% as Emerging Markets Sell Off

Mukesh Buch
22 Sep, 2015
New York City

Market indexes in Mumbai dropped more than 2% following another day of sell off in emerging markets. Foreign investors sell off continues in the second week totalling $3 billion. Hindalco plans to sell its copper mine in Australia.

[R]6:00 PM Mumbai – Market indexes in Mumbai dropped more than 2% following another day of sell off in emerging markets. Foreign investors sell off continues in the second week totalling $3 billion. Hindalco plans to sell its copper mine in Australia. Infosys won a contract build Goods and Service Tax network system across India.[/R]

Stocks in Mumbai declined following a worldwide selloff in emerging markets after foreign investors retrenched and accelerated net selling.

Foreign institutional investors have been selling stocks of emerging markets for the last two months after U.S. Federal Reserve failed to offer any clarity on the interest rate increase timetable.

U.S. and European investors have been trimming holdings in overseas markets as the U.S. rate jitters continue to dominate global markets sentiment.

Foreign investor sold net of $2.6 billion of stocks in India in August and sold additional $337 million of stocks by September 18, according to the data available from various local exchanges.

Central government of India today approved ₹1,575.38 crore highway project in Odisha under its flagship highways building program NHDP.

Rupee weakened 15 paisa to 65.87 against one U.S. dollar.

The Sensex Index declined 541.14 or 2.1% to close at 25,651.84. The CNX Nifty dropped 165.10 or 2.1% to 7,812.

Gainers & Losers

Amtek Auto Limited plunged 11.5% to ₹45.95 after the auto component maker failed to meet the deadline for the bond payments of ₹800 crore matured on Monday.

Ashok Leyland Limited rose 0.6% to ₹88.85 after the truck maker’s subsidiary plans to raise up to ₹650 crore through a public offering.

Hindalco Industries Limited tumbled 6.2% to ₹73.15 after the company’s subsidiary plans to sell its copper mine in Queensland, Australia to Lighthouse Minerals Holdings Pty for A$15 million or ₹70.5 crore in cash and A$41.7 million or ₹196 crore in rehabilitation bond costs.

Infosys Limited edged up 0.1% to ₹1,105.50 after the software developer received contract for ₹1,320 crore from the Central Government to build goods and sales tax network system across the country.

MMTC Limited increased 1.5% to ₹42.85 after the company plans to sell its 10% stake in the Indian Commodity Exchange.

NTPC Limited declined 4.6% to ₹120.80 after the power producer plans to issue tax-free bonds worth ₹700 crore.