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Market Update

Dalal Street Overlooks Sharp Fall in Inflation in India


Author: Mukesh Buch
ticker.com
Last Update: 1:42 PM ET September 15 2015

6:00 PM Mumbai – Market indexes in Mumbai declined and investors overlooked the latest decline in consumer price index. The Reserve Bank of India lifted foreign investment limit to 40% in the largest auto maker Maruti Suzuki India.

Stocks on Dalal Street edged lower in choppy trading following the weak market trend in Asia and investors overlooked the retail inflation data released after yesterday’s market close.

Consumer price inflation declined to 3.66% in August and wholesale inflation decline deepened to a loss of 4.95%. Wholesale prices have been on the decline for the most of the year and the price declines are finally passing to retail level.

Developed markets are looking ahead to the U.S. rate decision after a two-day policy meeting ending on Thursday.

Market in Mumbai are likely to bounce around but corporations are likely to benefit from the lower fuel prices and falling wholesale inflation.

Rupee weakened 5 paisa to 66.37 against one U.S. dollar.

The Sensex Index slipped 150.77 or 0.6% to close at 25,705.93. The CNX Nifty decreased 43.15 or 0.6% to 7,829.10.

Gainers & Losers

Corporation Bank, the financial services provider said the Life Insurance of India plans to invest ₹143 crore in the Bank.

Nava Bharat Ventures Limited soared 17.4% to ₹158.95 and the company signed an agreement with Tata Steel for the conversion of chrome ore into ferro chrome.

Maruti Suzuki India Limited edged up 0.3% to ₹4,330.95 after the Reserve Bank of India allowed registered foreign investors to invest up to 40% in the company.

Sun Pharmaceutical Industries Ltd increased 1.1% to ₹866.70 after the generic drug maker offered to acquire the U.S.-based InSite Vision Inc for about ₹300 crore.

Texmaco Rail & Engineering Limited rose 0.9% to ₹105.45 after the infrastructure developer received an approval from the board to buy 76% stake in Bright Power for ₹100 crore.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc