Sensex Rebounds; India, Russia Deepen Military and Commercial Ties

Sarla Buch
28 Dec, 2015
New York City

India and Russian companies sign contacts to increase local content in defense equipment and systems and speed up construction of nuclear power plants. Tata Power, Essar, Reliance, Bharat Forge are some of the leading companies engaged in joint developments.

R]6:00 PM Mumbai, India – India and Russian companies sign contacts to increase local content in defense equipment and systems and speed up construction of nuclear power plants. Tata Power, Essar, Reliance, Bharat Forge are some of the leading companies engaged in joint developments.[/R]

Stocks in Mumbai rebounded on the hopes that the coming year will reverse the declining trend as foreign investors step up buying.

The benchmark Sensex index has fallen just over 5% in the year so far and the index is trading at 15.5 times earnings. However, brokerage firms are holding out for higher market index in 2016 led by rallies in sugar, pharmaceuticals and software exporters.

Tata Motor led the gainers and generic pharmaceuticals makers rallied.

Rupee rose 3 paisa to ₹66.18 against one U.S. dollar.

The Sensex Index rose 195.42 or 0.8% to close at 26,034.13. The CNX increased 64.10 or 0.8% to 7,925.15.

India and Russia signed several energy development, diamond processing and defense systems related contracts.

The 15 large contracts spread over ten years are expected to step up production of missiles, navy vessels, and aircraft components making in India and is expected to lead the construction of ten nuclear power plants.

Gainers & Losers

Coal India Limited rose 0.9% to ₹325.15 after the coal producer said its coal production in current fiscal year April to November jumped 8.8% to 321.38 tons compared to 295.40 tons in the same period last year.

KEI Industries Limited surged 8.4% to ₹114.70 after the power cables maker secured an order worth ₹384.53 crore from Power Grid Corporation of India.

Sunil Hitech Engineers Limited increased 1.4% to ₹282.70 after the construction services provider secured a contract worth ₹83 crore in Jharkhand.

Srikalahasthi Pipes Limited soared 5.9% to ₹267.80 after the ductile iron pipe maker secured orders worth ₹1,053 crore in December.

Tata Power Company Limited gained 1.9% to ₹67.60 after the power producer signed an agreement with the ministry of development of Russian Far East to increase energy investment between India and Russia.

Tube Investments of India Limited soared 11.6% to ₹446.60 after the steel strips and tubes maker plans to sell 14% of Cholamandalam MS General Insurance to its joint venture partner Mitsui Sumitomo Insurance Company of Japan for ₹882.67 crore.