Nifty futures to be traded on Chicago bourse from 19th July

Under the cross-listing arrangements entered into in March this year, the Nifty has been made available to CME for the creation and listing of US dollar denominated futures contracts for trading on CME

National Stock Exchange (NSE) on Thursday announced that trading in S&P CNX Nifty Futures on Chicago Mercantile Exchange (CME) will start from 19th July, reports PTI.

In March this year, NSE and CME had announced cross-listing arrangements including license agreements covering benchmark indexes for US and Indian equities.

CME will introduce two new contracts designed to access India's market opportunities, E-mini and E-micro Nifty futures.

The contract size of e-mini contracts will be $10 into the value of the Nifty index on that day and the e-micro contracts will be $2 into the value of the Nifty index on NSE on that day, the exchange said in a statement in Mumbai.

Under the cross-listing arrangements, the Nifty that tracks 22 sectors of the Indian economy has been made available to CME for the creation and listing of US dollar denominated futures contracts for trading on CME.

The license to the Nifty 50 from NSE's affiliate India Index Services & Products Ltd. (IISL), which is exclusive to CME group within America and Europe, is in addition to the existing licensing arrangement between Singapore Exchange Limited (SGX) and IISL, the release said.

These contracts will be traded on the CME Globex platform, providing access to participants around the world.

Investors can trade for nearly 23 hours on CME Globex.
"The introduction of the two new contracts will make the Nifty 50 available to a much larger community of traders and investors across various exchanges and time zones. This will also go a long way in realising our vision of making Indian financial products available globally", NSE's managing director and CEO Ravi Narain said.


Citi sells part of mortgage portfolio to Religare for Rs500 crore

Citigroup clarified that it is very much in the home loan business and has just sold a small portion of its loan-book (5%) so that it can lend afresh

Financial services firm Religare Enterprises today said it will acquire a part of Citigroup India's home loan portfolio for Rs500 crore, representing 5% of the latter's total mortgage book, reports PTI.

Citigroup clarified that it is very much in the home loan business and has just sold a small portion of its loan-book so that it can lend afresh. The acquisition would be done through the non-banking finance arm Religare Finvest and is expected to be completed by October.

"We have entered into an agreement to acquire part assets of Citigroup India's mortgage portfolio for Rs500 crore. The deal would be completed in the next three months," Religare Finvest chief executive Kavi Arora told PTI.

He said Religare Finvest has been in the home-loan business for the last three years and the acquisition of key assets of Citi's mortgage business would give it an edge.

The acquisition is the first by Religare Finvest since it started offering loans for SME commercial vehicles and construction equipment in the third quarter of 2008.

Citi South Asia chief financial officer Abhijit Sen said, "This sale is of a small pool of mortgages representing less than 5% of our total mortgage portfolio. Citibank routinely sells small tranches of its portfolio to optimise returns on capital and such assets sold are substituted by fresh loan."

Mortgages are a priority business for Citi and a core part of the bouquet of products and services offered to customers, Mr Arora added.

Citi's total mortgage portfolio is Rs9,000-Rs10,000 crore and its total loan-book is about Rs40,000 crore.

Religare Finvest is a wholly-owned subsidiary of Religare Enterprises and is registered with the RBI as a non-banking finance company (NBFC). It currently provides consumer finance, Initial public offer (IPO) financing and personal financial services. The NBFC is present in 23 cities and employs over 400.


Market Preview: Cautious opening likely

The market is likely to witness a flat to small gap-down opening on mixed cues from across the globe on concerns about the pace of the economic recovery. Wall Street ended flat on Thursday after the markets recovered early losses on dismal economic data. Bourses in Asia were trading mixed on US worries. Back home, the Sensex settled at 17,909, down 28 points (0.1%) and the Nifty ended Thursday’s session at 5,378, down 7 points (0.1%). The indices traded range-bound in the morning session. The benchmarks witnessed a fall in the early afternoon session; however, the market recovered, taking cues from the European market, which staged a recovery after opening weak. Gains were pared towards the end of the session with the market ending in the red.

US markets ended flat after they recovered early losses buoyed by a recovery in Goldman Sachs and British Petroleum shares. The Philadelphia Federal Reserve Bank said factory activity in the mid-Atlantic region fell unexpectedly, while the New York Federal Reserve Bank said New York manufacturing hit the lowest since December 2009. The US Labor Department said the Producer Price Index declined for a third straight month. In June, the PPI fell 0.5%, against a marginal decline forecast by analysts.

Meanwhile, the US senate passed the Financial Regulatory Bill, which now awaits president Barack Obama's nod. The Dow ended 7.4 points lower (0.1%) at 11,741, the S&P 500 ended 1.3 points higher (0.1%) at 1,096 and the Nasdaq ended 2.8 points higher (0.5%) at 1,856.

Markets in Asia were trading on a mixed note on the last trading day of the week on global economic concerns as consumer spending in the US slowed down in the US. The development ignited worries for Asian exporters. Shanghai Composite and Nikkei 500 were trading with cuts of 0.80% to 1.60%. Hang Seng and Straits Times were up between 0.05% and 0.21%. The SGX Nifty was at 5,380 down 4.50 points, indicating a cautious opening for the Indian markets.

India’s annual food inflation was up to 12.81% for the week ended 3rd July while fuel inflation was up 14.27%. In the previous week, food inflation was at 12.63% and fuel inflation was at 18.02%, government data on Thursday indicated.

Chambal Fertiliser, Nava Bharat Ventures and Rallis India are among the companies, which are set to declare their quarterly numbers today. Chambal Fertiliser’s March quarter sales and operating profit were down 17% and 4% respectively. Nava Bharat Venture’s March quarter sales and operating profit were up 4% and 12% respectively. Rallis India’s sales and operating profit were up 13% and 119% respectively.





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