Nifty, Sensex may rally intraday but the trend is down still: Friday closing report

A close above 6,200 on Monday may lead to a short rally in Nifty. However, for now, the trend is down

Both the NSE Nifty and S&P BSE Sensex ended down stretching the losing streak to four days. The Sensex and the Nifty opened at 20,785 and 6,170. The Sensex moved up to the level of 20,821 before dropping off to 20,601, while the Nifty moved up to the level of 6,185 then dropped to as low as 6,121. The Sensex closed at 20,666 (down 157 points or 0.75%) while the Nifty closed at 6,141 (down 47 points or 0.75%).


The National Stock Exchange (NSE) recorded a volume of 60.17 crore shares. Of the 1,221 shares on the NSE, 465 advanced, 707 fell while 49 remained unchanged, signifying a broad weakness.


Most sectoral indices were in the red except for Infrastructure (0.72%), Metals (0.30%), Realty (1.50%) and Pharma (0.13%).


Of the 50 stocks on the Nifty, 17 ended in the green. The top five gainers were Ranbaxy (3.93%); Tata Steel (2.92%); DLF (2.45%); Tata Motors (2.33%) and JP Associates (2.14%), while the top five losers were Axis Bank (4.72%), PNB (4.50%), HDFC (3.69%), ACC (2.74%) and M&M (2.43%).


The markets dipped despite positive news that the United States grew quickly, at 2.8%, during the third quarter of the calendar year as well as the European Central Bank cutting interest rates in a surprise move. However, S&P cut ratings of France which put concerns on growth of Euro region. The markets are awaiting for the US jobs data which will be released today and this will give some hints about the timing of the tapering by US Federal Reserve.


All Asian markets were seen trending down, with Shanghai down 1.09%, Nikkei down 1% and Kospi down 0.96% as well.


Despite Twitter’s smash IPO on debut day, Dow Jones dipped about 0.97%, while Nasdaq was down 1.90%. All European markets were seen trending down on the back of S&P’s decision to slash France ratings. Even the ECB interest rate to cut to 0.25% did little to revive European markets. Euro fell on fears that the ECB will also be soon running out of ammo and would become irrelevant and probably start printing notes.


DHFL gets $85 million loan from IFC for affordable housing

Dewan Housing Finance received a loan of $85 million from the member of World Bank to offer housing finance to low and middle income customers

Dewan Housing Finance Corp Ltd (DHFL) said it received a loan of $85 million loan from IFC, a member of the World Bank Group to expand the company's lending for affordable and energy-efficient housing in India.


The loan is being given with the support of the government of Canada, DHFL said in a release.


“While housing finance is one of the lowest risk asset classes in India, financial institutions have so far shown limited interest in the low income segment. IFC’s investment will demonstrate the viability of offering housing finance to low and middle income clients,” said Kapil Wadhawan, chairman and managing director, DHFL.


Of the total loan, IFC will provide $70 million through external commercial borrowing (ECB). IFC has committed an additional $15 million to finance green mortgages under the IFC-Canada Climate Change Program.


The terms of the loan include tenure of eight years on both tranches of the loan. DHFL has obtained a moratorium of two and three years, respectively on the two tranches of $70 million & $15 million, following which repayments will commence.


The loan to DHFL, to be used for green mortgages, will reduce 6,200 tons of carbon emissions per year.


The housing finance market in India has a huge gap to fill. According to India’s Twelfth Five Year Plan (2012-2017), the housing shortage in the country is estimated at 58.8 million units. Over 90 percent of this demand is from low-income households, especially the under-served segments.


Govt to appeal against Gauhati HC order on CBI

The Indian government’s resolution on formation of CBI has been held valid by the Supreme Court time and again in a number of judgements

A day after the Guwahati High Court order held as unconstitutional the setting up of Central Bureau of Investigation (CBI) the union government on Friday said it will appeal against the verdict in the Supreme Court.


“...The Department of Personnel and Training (DoPT) intends to file an appeal. So an appeal will be filed against the order (in the Supreme Court),” Law Minister Kapil Sibal told reporters.


DoPT is the administrative ministry for CBI. Sibal said DoPT has discussed the issue with him and it was decided to file an appeal.


In a curious judgement, the Guwahati High Court had on Thursday struck down the resolution through which the CBI was set up and held all its actions as “unconstitutional”.


The judgement by the division bench comprising Justices IA Ansari and Indira Shah came on a writ petition filed by one Navendra Kumar challenging an order by a single judge of the High Court in 2007 on the resolution through which the CBI was set up.


Earlier in the day, minister of state for personnel V Narayanasamy met Prime Minister Manmohan Singh apparently to discuss the fallout of the verdict.


“The judgement is patently wrong. It is bound to be set aside. We are certainly going to challenge it and the appeal is likely to be filed in the Supreme Court latest by Monday,” Additional Solicitor-General PP Malhotra had told PTI. He had appeared before the HC in the case.


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