The News International Team
1:50 pm DLF: Following a favourable verdict from the Securities Appellate Tribunal (SAT), DLF is now looking at options to raise fund, says Ashok Tyagi, group CFO. The SAT quashed Sebi’s order barring DLF and its promoters from raising capital for alleged disclosure lapses in its initial public offering in 2007.
In an interview to CNBC-TV18, Tyagi says DLF is considering issuance of commercial mortgage backed securities, which will help reduce its cost of borrowing by 1.5-2.0 percentage points. The company pays roughly Rs 750 crore interest every month, including dividend on preference shares, on its debt. Tyagi says the lower borrowing rate should help the company save around Rs 175 crore on dividend payouts. He says there is good demand in the luxury residential property segment, while the mid-market segment remains sluggish.
1:30 pm Asian market: Japan’s Nikkei share average ended almost flat as profit-taking set in after it had hit a 15-year high earlier ahead of central bank policy meetings in Japan and the United States later this week. The Nikkei share average closed at 19,246.06, having peaked at 19,349.20 in early trade as investors bought banks and
other domestic demand oriented shares. Investors took profits in recent gainers such as drugmakers, rubber product makers and railway and truck
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The market is still under selling pressure. The Sensex is down 57.96 points at 28445.34, and the Nifty is down 17.50 points at 8630.25. About 915 shares have advanced, 1765 shares declined, and 170 shares are unchanged.
Infosys, Bajaj Auto, Wipro, HDFC Bank and Sun Pharma are top gainers in the Sensex while Sesa Sterlite, NTPC, HDFC, Hindalco and Bharti Airtel are laggards.
Meanwhile, International Monetary Fund chief Christine Lagarde said the global economic recovery remains “too slow, too brittle and too lopsided”, singling out divergences in monetary policy as a risk that could cause financial market volatility.
Christine Lagarde reiterated the IMF’s forecast that, more than six years after the global financial crisis, the world economy would grow by just 3.5 percent this year and 3.7 percent in 2016.