NSE Nifty has given up more gains as we mentioned on Friday and Monday but a strong downturn is not yet in the offing
For the 2nd day in a row both the Nifty and Sensex have fallen, which means the bears are back. The markets opened lower, and stayed weak throughout the session. A rebound into the green didn’t last long as markets took the turn for the worse and dived precipitously, and was unable to recover despite San Francisco Federal Reserve saying that tapering would be considered only if the US Federal reserve is convinced that the US economy is on the right track. Also, the HSBC Service PMI, a leading indicator, has shown that Indian service sector, including IT, has dipped for the month of November, with Reuters saying that hiring is on “ice”.
The BSE Sensex opened down at 20,839, hit an intra-day high of 20,863 and then trended down to an intra-day low of 20,673 before closing at 20,708 (down 146 points or -0.70%). Similarly, Nifty opened down at 6,187 briefly rebounded to hit an intra-day high of 6,209 then trended down to hit an intra-day low of 6,149 before closing at 6,160 (down 40 points, or -0.66%).
All indices except IT, metals and PSU banks were seen trending down. Realty was the worst hit, down 2.76%. FMCG was down 1.44%.
Of the 50 stocks on the Nifty, 21 advanced and 29 declined, indicating weakness. The top gainers were Tata Power (3.13%); Punjab National Bank (2.76%); Power Grid (2.29%); NMDC (1.75%) and Wipro (1.68%). The top losers were Hindalco (-2.42%); ITC (-2.11%); IDFC (-1.99%); Ranbaxy (-1.83%); DLF (-1.83%).
The Inter-ministerial summit meet at Indonesia is once again likely to fall through as New Delhi states that it would not budge until its demands are met that are meant to be pro-poor. In the finance news the latest HSBC PMI numbers, the services PMI stood at 47.2 vs 47.5 in October, with Reuters saying that hiring is on “ice”. The Cabinet has been reviewing FDI norms in various industries. Sources in DIPP have said that it would rework fresh 25% mandatory investment clause in new units; the finance ministry said that the 25% mandatory investments in new units hinders M&A. Also, the finance ministry as well as the Planning Commission rejected the 49% FDI cap in rare and critical units and will relook into the same, while it has also rejected FDI in pharma last week itself. It is also reported that Power Grid's $1.1 billion FPO has been ‘fully subscribed’.
Asian markets were mixed today. Except for Shanghai (up 1.31%) and Sydney (0.34%), all other Asian markets closed down. Japan’s Nikkei Stock Average fell sharply because the yen regained some lost ground, while the Australian dollar tumbled after the country’s disappointing third-quarter growth data, but its stock market index, All Ordinaries, moved up marginally.
All European markets opened green on the news that the Eurozone economy grew by 0.1% (Italy and France contracted a bit) in the third quarter versus the preceding three months, which is also as per expectations. But at the time of writing, almost all of them had turned red. The Financial Times reports that the Bank of Ireland has placed €540m in new shares to repay state funds, as part of recovery process. A proof that regulation matters, the EU has imposed fines of €1.71 bn on Deutsche Bank, Societe Generale, RBS, JPMorgan, Citigroup, and broker RP Martin, for rigging LIBOR, EURIBOR benchmarks.
According to ComScore, a company that measures consumer data, Cyber Monday desktop sales were seen up 18% to $1.74 billion. However, automobile and retail reports, despite Cyber Monday records, were less than encouraging. The San Francisco Federal Reserve chairman has stated that the US Federal Reserve would taper only if it is sure that the US economy is seen on the right path to recovery. US markets closed down yesterday and US stock futures were seen trending marginally up during early trade.
Narayan Sai, who was on the run for about 50 days had disguised himself as a Sikh man to evade arrest
Self-styled godman Asaram’s son Narayan Sai, who had been evading arrest in a sexual assault case in Surat, has been nabbed by Crime Branch of Delhi Police.
"Narayan Sai has been arrested from Delhi-Haryana border. One of his aides Hanuman too has been arrested with him," Additional Commissioner of Police (Crime) Ravindra Yadav told reporters.
Delhi Police sources said he had disguised himself as a Sikh man to evade arrest.
In Ahmedabad, state DGP Pramod Kumar said that Sai had been absconding for more than 50 days.
He had been giving a slip to police of several states since the last couple of months after a complaint of rape was filed by two sisters against him and his father Asaram at Jehangirpura police station in Surat, Gujarat.
A team of Gujarat police had landed in Delhi in mid-October and had carried out several raids at Asaram’s ashrams at Rohini, Najafgarh, Jafarpur Kalan and on Ridge Road but failed to trace Narayan Sai.
Later, Dharmendra Pariyar alias Dharmesh (28), in-charge of the Ridge Road ashram, was arrested for allegedly helping Sai to flee the national capital.
Surat police had registered two complaints — one against Asaram and the other against Sai — of rape, sexual assault, illegal confinement and other charges.
The younger of the two sisters has filed the complaint against Sai, accusing him of repeated sexual assault between 2002 and 2005 when she was living at the Surat ashram.
The elder sister, in her complaint against Asaram, has accused him of repeated sexual assault between 1997 and 2006 during the time she was living at his ashram on the outskirts of Ahmedabad.
Asaram is in judicial custody in Jodhpur jail since his arrest in September for allegedly sexually assaulting a minor.
RBI has permitted infrastructure companies to tap the external commercial borrowings, or ECB route, to enable them to get much needed funds to kickstart stalled projects
In an effort to boost the otherwise stalled infrastructure sector and get projects off the ground, the Reserve Bank of India (RBI) has decided to permit infrastructure companies to tap the external commercial borrowings (ECB) route to fund infrastructure projects.
RBI in its circular dated 3rd December said, “In order to strengthen the flow of resources to infrastructure sector, it has been decided to permit holding companies & core investment companies (CICs) coming under the regulatory framework of the RBI to raise ECB under the automatic route or approval route for project use in Special Purpose Vehicles (SPVs).”
However, this is subject to specific terms and conditions as listed below:
RBI said that an earlier stipulation that maximum 25 % of ECB raised by the infrastructure companies can be utilised for refinancing of the rupee loans availed from the domestic banking system (40% in case of power sector) would remain unchanged.