Indian Rupee Drifts Lower Despite Record Low Oil Prices

Sarla Buch
29 Dec, 2015
New York City

Sensex index in Mumbai declined and markets across Asia retained a negative bias on the weakening economic backdrop in China and falling energy imports from Japan. Rupee traded near record low, despite the oil prices easing to 11-year low.

R]6:00 PM Mumbai, India – Sensex index in Mumbai declined and markets across Asia retained a negative bias on the weakening economic backdrop in China and falling energy imports from Japan. Rupee traded near record low, despite the oil prices easing to 11-year low.[/R]

Stocks on Dalal Street opened lower on the weakness in Asia-wide trading, however the weaker energy prices are expected to trim monthly trade deficit.

Investors reacted to domestic corporate news but also took a note of the weakening economic backdrop in China and another dive in energy and commodities prices.

Brent crude oil traded in London and the price for the benchmark variety for the supply in Asia and Europe dropped below the price in New York for the first time in decade.

Brent crude traded at $36.65 a barrel, lower than the closing price in New York of $36.76.

Rupee weakened 21 paisa to ₹66.40 against one U.S. dollar.

The Sensex Index edged up 45.35 or 0.2% to close at 26,079.48. The CNX Nifty rose 3.08 to 7,928.95.

Gainers & Losers

Credit Analysis and Research Limited soared 6.1% to ₹1,365.45 after the credit rating agency signed an agreement with Japan Credit Rating Agency for a strategic business partnership.

JK Lakshmi Cement Limited decreased 1.1% to ₹327 after the cement producer plans to sell 6.82% stake in its subsidiary Udaipur Cement Works.

L&T Finance Holdings Limited rose 0.5% to ₹65.95 after the financial services provider said the U.S.-based Citigroup increased its stake to 7.56% from 5.74% for about ₹208 crore.

National Buildings Construction Corporation Ltd. edged down 0.3% to ₹993.85 after the infrastructure developer secured an order worth ₹328.08 from Nabinagar Power Generating Company.

Saregama India Limited slid 0.3% to ₹363.40 after the music seller said the Reliance Capital acquired 6.82% stake for ₹43.17 crore through open market transactions.

Sterlite Technologies Limited advanced 1.9% to ₹96.35 after the power and telecom products maker’s Sterlite Grid unit secured transmission project worth ₹2,700 crore.