Sensex in India Looks Beyond Euro Zone Chaos, Oil Drops 3%
6:00 PM Mumbai Ė Markets in India ignore the growing uncertainty and confusion in the euro zone after Greece rejected bailout terms in a referendum held on Sunday. Videocon plans to invest $2.5 billion in oil and gas ventures in Brazil. Kotak Mahindra said foreign investment limit in the bank was increased to 55% from the current 49%.
Stocks in Mumbai opened sharply lower after Greece rejected conditions attached to bailout by international lenders.
Caution prevailed in trading in Mumbai and in Asia after 61% voted against the latest tranche of bailout with conditions attached. Euro eased and markets in the euro zone dropped between 0.5% and 2%.
Portugalís 20 Index slumps 1.5%, while Spainís IBEX falls 2.1% and Italyís FTSE MIB gauge loses 2.2%.
Oil prices dropped 3% after Greek vote and rising crude oil supply from Iran and slowing economy in China.
Brent crude oil in London traded dropped to a 3-month low at $58.29 and U.S. light crude declined to $53.91 a barrel.
Oil refiners and retailing companies rallied in Mumbai after the oil price decline.
Bharat Petroleum Corp. Ltd rose 3% to Rs.928, Hindustan Petroleum Corp. Ltd gained 2.2% to Rs.789 and Indian Oil Corp. Ltd increased 2.1% to Rs.425.15.
Rupee weakened 3 paisa to 63.41 against one U.S. dollar.
The Sensex Index gained 115.97 or 0.4% to close at 28,208.76. The CNX Nifty increased 37.25 or 0.4% to 8,522.15.
Gainers & Losers
Arrow Coated Products Ltd. soared 8.6% to ₹511 after the water-soluble film maker signed an agreement with Switzerland-based Misapor AG and make green technology products.
Kotak Mahindra Bank Limited increased 1.1% to ₹1,443.25 after the financial services provider said that the Foreign Investment Promotion Board increased foreign investor limit to 55% from the current 49%.
Pantaloons Fashion & Retail Limited rose 1.7% to ₹187 after the apparel retailer said that the U.S.-based mutual fund manager Franklin Templeton acquired 8.49% stake, worth ₹143 crore in the company.
Generally, mutual fund companies are not long term investors and are likely to sell stake in the company in less than three years.
Tilaknagar Industries Ltd. surged 19.8% to ₹21.20 on a speculation that the Mumbai-based Allied Blenders and Distillers is nearing a deal to acquire a controlling stake in the company.
Va Tech Wabag Ltd. advanced 2.3% to ₹807.25 after the company won an order worth ₹580 crore in Bahrain.
Videocon Industries Limited gained 1.3% to ₹151.25 after the consumer products maker and energy explorer plans to invest $2.5 billion in oil and gas ventures in the Brazil.
Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc