Sensex Jumps 1.2%, Reliance Infra Lifts Stake in Pipavav Defence

Sarla Buch
17 Dec, 2015
New York City

Sensex jumped 1.2% following a rally in Asian markets after the U.S. Federal Reserve lifted rates and signalled that the economy has recovered to be strong enough to withstand higher rates. Reliance Infra acquired additional 17% stake in Pipavav Defence. Hindustan Unilever agreed to buy Indulekha.

[R]6:00 PM Mumbai, India – Sensex jumped 1.2% following a rally in Asian markets after the U.S. Federal Reserve lifted rates and signalled that the economy has recovered to be strong enough to withstand higher rates. Reliance Infra acquired additional 17% stake in Pipavav Defence. Hindustan Unilever agreed to buy Indulekha.[/R]

Stocks on Dalal Street gained following a rally in Asia sparked by the widely anticipated rate increase in the U.S.

U.S. Federal Reserve lifted rates by 0.25% and the central bank said future increase are likely to be gradual but signalled that the economy has recovered after nine years of financial crisis to withstand higher rates.

The natural gas companies closed higher for the second day after the Supreme Court ruled that all Delhi taxis be converted to CNG by the end of March 2016.

Gail India Ltd jumped 2.6%, Gujarat Gas Ltd increased 1% and Indraprastha Gas Ltd gained 1.3%.

Steel makers gained after the central government ordered to curb imports.

Tata Steel advanced 2.6%, JSW Steel gained 2.5% and Steel Authority of India increased 1.9%.

Rupee strengthened 31 paisa to ₹66.42 against one U.S. dollar.

The Sensex Index increased 309.41 or 1.2% to close at 25,803.78. The CNX Nifty gained 93.45 or 1.2% to 7,844.35.

Gainers & Losers

Asian Granito India Limited jumped 3.5% to ₹170.20 after the tiles maker launched its new tiles and said the latest product is the thinnest tile ever made in India.

Aurobindo Pharma Limited increased 1.5% to ₹832.75 after the natural and ayurvedic medicine maker received approval from U.S. Food & Drug Administration to manufacture and market loperamide hydrochloride tablet.

JMC Projects (India) Limited advanced 2.8% to ₹242.40 after the construction services provider secured new orders worth ₹1,050 crore.

Hindustan Unilever Limited increased 1.2% to ₹864.10 after the consumer goods maker said it signed an agreement with Mosons Group to acquire its flagship brand ‘Indulekha'' for about ₹330 crore.

National Buildings Construction Corporation Ltd. gained 1.5% to ₹997.35 after the Union Cabinet approved the sale of Air India controlled plot in Coimbatore to the company for ₹19.81 crore.

Reliance Infrastructure Limited rose 1.1% to ₹441.85 after the infrastructure developer agreed to acquire an additional 17% stake and increased total stake to 35% in Pipavav Defence for about ₹850 crore.