RBA Lets Rupee Slide Further; Nestle Net Swung to Loss, Essar Oil Net Rises
6:00 PM Mumbai – Rupee continues to drift lower despite the recent collapse in energy and gold prices, two largest imported items by India. Essar Oil quarterly profit surged 54%. Nestle India net swung a loss. Dr. Reddy''s Lab net jumped 14%. NTPC net fell 3%. Crompton Greaves secured a contract in Portugal. Blue Dart profit soared 29%.
Market indexes in Mumbai gained and rupee dropped to a new low in the year as the U.S. dollar edged up against most international currencies.
U.S. Federal Reserve policy makers left interest rates at zero and said labor and economic conditions continue to improve.
Economists and market watchers are still looking for the central bank to lift rates either at September or December meeting.
Despite the collapse in oil and gold prices, rupee continues to slide as the Reserve Bank of India led the currency drift lower.
Lower rupee has been one of the main drivers of inflation in India and most market watchers are puzzled at the RBA stance on the currency.
With the fall in oil and gold prices and rising fund flows from the non-residents, India is likely to eliminate most of its $100 billion annual deficit for the first time in the next fiscal year.
However, the rupee has been sliding lower for the most of the year and in today’s trading rupee weakened 13 paisa to 64.04 against one U.S. dollar.
The Sensex Index jumped 141.92 or 0.5% to close at 27,705.35. The CNX Nifty gained 46.75 or 0.6% to 8,421.80.
Gainers & Losers
Blue Dart Express Ltd climbed 5.3% to ₹6,874.20 after the courier services provider reported net in the first-quarter climbed 29.1% to ₹10.82 crore.
Net sales in the quarter soared 30.2% to 129.99 crore.
Crompton Greaves Limited advanced 2.5% to ₹182.75 after the electrical products maker secured a contract to supply smart metres to Portugal-based Energias de Portugal.
Dr. Reddy''s Laboratories Limited climbed 5.2% to ₹3,907.55 after the generic drugs maker said net in the first-quarter jumped 13.7% to ₹625.65 crore.
Total revenues in the quarter increased 6.7% to ₹3,770.25 crore.
Essar Oil Limited decreased 1.2% to ₹189.80 after oil and gas explorer said net in the first-quarter surged 54% to ₹1,063 crore.
Net revenues in the quarter declined 25% to ₹20,572 crore.
IDFC Limited fell 0.9% to ₹152.80 after net in the first-quarter plunged 46.4% to ₹240.88 crore.
Net revenues in the quarter rose 2.3% to ₹2,087.08 crore.
Nestle India Limited advanced 2.5% to ₹6301.05 after the consumer goods maker said net in the second-quarter swung to a loss of ₹64.40 crore compared to profit of ₹287.06 crore.
Net revenues in the quarter tumbled 19.1% to ₹1,987.14 crore.
NHPC Limited fell 1.1% to ₹18.70 after net in the first-quarter climbed 24.5% to ₹767.17 crore.
Total revenues in the quarter advanced 6.1% to ₹2,353.80 crore.
NTPC Limited edged up 0.4% to ₹135.85 after net in the first-quarter decreased 2.9% to ₹2135.35 crore.
Net revenues in the quarter dropped 8.2% to ₹17,323.30 crore.
Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc