Sensex in India Rebounds as Emerging Markets Rally

Sarla Buch
15 Dec, 2015
New York City

Sensex in Mumbai rebounded for the second day in a row and participated in emerging markets rally. Crude oil extended losses in the year so far to 44% and consumer product makers led the gainers.

[R]6:00 PM Mumbai, India – Sensex in Mumbai rebounded for the second day in a row and participated in emerging markets rally. Crude oil extended losses in the year so far to 44% and consumer product makers led the gainers.[/R]

Stocks in Mumbai rebounded for the second day in a row from the six-year low after investors returned in search of bargains and focused on consumer and infrastructure stocks.

Commodities and resource linked stocks remained under pressure after crude oil extended losses in the year to 44%.

The largest consumer food products maker, Hindustan Unilever jumped to a 3-month high and the state controlled and the largest energy explorer edged from its 2009-low.

Rupee strengthened 15 paisa to ₹66.93 against one U.S. dollar.

The Sensex Index increased 170.09 or 0.7% to close at 25,320.44. The CNX Nifty rose 50.85 or 0.7% to 7,700.90.

The reference index Sensex has fallen 8% in the year so far and the S&P 500 index in New York has lost 1.8% and the Tollbooth Strategy index has gained 7.5% in the period.

Gainers & Losers

Bharti Airtel Limited added 0.8% to ₹308.55 and the third largest mobile services provider signed a partnership agreement with Bahrain-based telecom services operator Batelco with operations in 20 countries across Asia and Africa.

National Buildings Construction Corporation Ltd. jumped 3.4% to ₹991 after the infrastructure developer won a contract under National Mission for Clean Ganga.

Natco Pharma Limited edged down 0.5% to 546.40 after the second largest drug maker received approval from Drug Controller General of India for generic Harvoni.

Petron Engineering Construction Limited soared 7.4% to ₹199.40 after the electrical and instrumentation services provider won an order worth ₹22.50 crore from The Ramco Cements.

SBG Cleantech Ltd, the company a joint venture between Japan-based SoftBank Group Corp., Bharti Enterprises Ltd and Taiwan-based Foxconn Technology Group secured 350 megawatt solar power project in Andhra Pradesh.

Sun Pharmaceutical Industries Limited rose 0.6% to ₹773.70 after the pharmaceutical products maker agreed to sell its U.S.-based subsidiary to the U.S.-based Nostrum Laboratories Inc, for an undisclosed financial terms.

Tech Mahindra Limited declined 4.2% to ₹520 after the consultancy services provider and Mahindra & Mahindra agreed to acquire 76% of Italy-based car designer, Pininfarina SpA for an initial payment of about $28 million or €25.3 million.

Tech Mahindra and M&M also offered to acquire the rest of the stake in an open offer at the same price to minority shareholders and provided financial guarantee of $140 million for the company’s debt.