Ahead of RBI Policy Meeting Stocks Turn Lower, Fertilizer Stocks Soar

Mukesh Buch
28 Sep, 2015
New York City

Stocks in Mumbai were on the defensive ahead of the economic policy meeting tomorrow. Central and state government agencies award more highway construction contracts. Petronet LNG prepares for $160 million bond offering. Fertilizer stocks soar.

[R]6:00 PM Mumbai – Stocks in Mumbai were on the defensive ahead of the economic policy meeting tomorrow. Central and state government agencies award more highway construction contracts. Petronet LNG prepares for $160 million bond offering. Fertilizer stocks soar.[/R]

Stocks in Mumbai opened lower after a 3-day holiday and market indexes traded lower after China reported a sharp decline in profit at industrial companies.

In cautious trading ahead of the policy meeting by the Reserve Bank of India on Tuesday, rate sensitive stocks led the decliners.

The central bank is expected to keep rates on hold at it fourth bi-monthly meeting of the year and focus on exports slowdown linked to the current global markets weakness.

The fertilizer stocks jumped after the central government said it is planning to waive debt of $83 million to fertilizers and chemicals companies.

Gujarat State Fertilizers and Chemicals Ltd, Gujarat Narmada Valley Fertilizers and Chemicals Ltd and Chambal Fertilisers and Chemicals Ltd jumped between 3% and 7%.

Rashtriya Chemicals and Fertilisers Ltd soared 10% and Fertilizers and Chemicals Travancore Ltd soared 13.5%.

Rupee strengthen 12 paisa to 66.03 against one U.S. dollar.

The Sensex Index dropped 246.66 or 0.9% to close at 25,616.84. The CNX Nifty slipped 72.80 or 0.9% to 7,795.70.

Gainers & Losers

Crompton Greaves Limited slipped 1.7% to ₹171.40 after the electrical products maker received a contract from Spain-based Gas Natural Fenosa for about €17 million.

Fortis Healthcare Limited fell 0.9% to ₹172.10 after the pharmaceutical products maker plans to buy back 3.1% stake in SRL Ltd from two investors for ₹105 crore.

Gammon India Limited soared 8.5% to ₹12.27 after the infrastructure developer secured highway construction contract in Jammu & Kashmir from National Highways Authority of India for ₹1,709.99 crore.

Indian Hume Pipe Company Limited surged 12.2% to ₹384.70 after the hume pipes maker won two orders worth ₹1,230.77 crore from Rural Water Supply and Sanitation Department of Telangana state government.

Petronet LNG Limited jumped 4% to ₹179.20 after the company plans to raise ₹1,000 crore through a bonds offering.

Reliance Defence Ltd, the company singed a manufacturing agreement with the UAE-based Emirates Defence Industries Company.