Mutual Funds News - 3rd April 2008

Kotak Mahindra MF revises load structure

Kotak Mahindra mutual fund has announced the revision in the load structure for Kotak Flexi Debt scheme. According to the revised load structure, the fund will charge an exit load of 0.10% if the investment is redeemed within 7 days from the date of investment. Presently, the scheme does not ask for any exit load. The scheme will not charge any entry load to the investors. The aforesaid changes will be effective from 1 April 2008.

         

MFs purchasing lifts benchmarks

Despite higher inflation numbers, benchmark indices increased quite sharply on Friday. Market participants said that this was due to across-the-board purchasing by institutions, particularly domestic funds. Since the financial year 2007-08 is nearing, fund managers have used this money to push up the stock prices in order to shore up the net asset values (NAV) of their schemes. Domestic funds have been net buyers to the tune of Rs 729.50 crore on March 28 even as foreign institutional investors remained net sellers of Rs 401.95 crore.

         

Sundaram BNP Paribas MF joins hand with Central Bank

Mumbai: Sundaram BNP Paribas Mutual has joined hands with Central Bank of India to form a strategic distribution alliance. Under the MoU inked by them, Central Bank of India will distribute the entire bouquet of Sundaram BNP Paribas Mutual's schemes across its branches and extension counters. This is a strategic alliance as Central Bank of India with its strong branch network and vast customer base will enhance Sundaram BNP Paribas Mutual's products reach.

         

Franklin Templeton MF files an offer document

Franklin Templeton MF files an offer document Plans to launch Templeton Fixed Horizon Fund-Series VIII. It is a close-ended income scheme. The scheme offers six plans from A to Plan F. The investment objective of the scheme is to generate returns and reduce interest rate volatility, through a portfolio of fixed income securities with a maturity profile generally in line with the fund's duration. Each plan under Templeton Fixed Horizon Fund-Series VIII offers growth option and dividend payout option.

         

Mutual funds continue selling

Mutual funds (MFs) sold shares worth a net Rs 52.10 crore on Thursday, 27 March 2008, compared to their selling of Rs 431 crore on Wednesday, 26 March 2008. MFs' net outflow of Rs 52.10 crore on 27 March 2008 was a result of gross purchases Rs 1238 crore and gross sales Rs 1290.10 crore. The 30-share BSE Sensex fell 71.27 points or 0.44% at 16,015.56 on that day. MFs were net sellers of shares worth Rs 2,225.10 crore in this month, till 27 March 2008.

         

Domestic funds go buying

Massive buying by large domestic mutual funds propelled prices of key benchmark stocks in the final hour of the trading session on 28 March. According to provisional figures on the Bombay Stock Exchange (BSE) website, domestic institutional investors were net buyers to the tune of Rs 729.50 crore.

The Sensex, the BSE's benchmark 30-share index, rose by 2.22%, or 355 points, to close at 16,371. The S&P CNX Nifty, the broader index of the National Stock Exchange (NSE), was up by 2.31%, or 112 points, to end the day at 4,942. Mutual funds were waiting for the markets to stabilise or show some upward movement as they could neither buy daily nor see their NAVs taking a serious hit as stocks plunged by over 5% on a daily basis.

Mutual funds as well as foreign institutions are freely buying into some of the fundamentally strong mid and small-cap stocks. Even though the rally may not be too robust but consolidation will remain strong.

Foreign institutional investors, however, were net sellers of Rs 401 crore in the cash market on 28 March.

         

Max New York Life plans to set up more offices

Max New York Life Insurance Co Ltd, a joint venture between New York Life and Max India Ltd, is planning to augment the number of its offices and agent advisors in the eastern region as part of its latest expansion plan, Mission Everest.

As per Mission Everest, the company plans to open 500 offices by 2011 to boost health and pension schemes. The mission also targets to increase the number of direct agents from the existing 30,000 to 2 lakh by 2011. At present, the eastern region has got 24 offices. Out Of that, three are in West Bengal.

         

Mutual funds on buying spree

Mutual funds (MFs) bought shares worth a net Rs 377.40 crore on Friday, 28 March 2008, compared to their selling of Rs 52.20 crore on Thursday, 27 March 2008. MFs' net inflow of Rs 377.40 crore on 28 March 2008 was a result of gross purchases Rs 982.30 crore and gross sales Rs 604.90 crore. The 30-share BSE Sensex gained 355.73 points or 2.22% at 16,371.29 on that day. MFs were net sellers of shares worth Rs 1847.70 crore in this month, till 28 March 2008.

           

Templeton Quarterly Interval Plan B discontinues growth option

Franklin Templeton Mutual Fund have decided to discontinue the growth option in institutional sub -plan of Templeton Quarterly Interval Plan B, as there are no unit holders under the said option. Templeton Quarterly Interval Plan B is an interval income fund that seeks to generate returns and reduce interest rate volatility, through a portfolio of fixed income securities.

           

Birla Sun Life MF revises load structure

Birla Sun Life Mutual Fund has announced the revision in the exit load structure for Birla Dynamic Bond Fund, an open-ended income scheme. According to the revised load structure, the fund will charge an exit load of 2.00% if the investment is redeemed within 180 days from the date of allotment. Before revision of the load structure, the fund was charging an exit load of 0.20% if the investment is redeemed within 30 days from the date of allotment. There is no change in entry load i.e. the Birla Dynamic Bond Fund will not charge an entry load. The aforesaid changes are to be done with effect from 2 April 2008.

         

Tata MF revises exit load structure for Equity P/E fund

Tata mutual fund has announced the revision in the exit load structure for Tata Equity P/E Fund. According to the revised load structure, the fund will charge an exit load for each investment amount less than Rs 2 crore at 1.00% if the investment is redeemed before 6 months from the date of allotment. It will not levy exit load for each investment amount greater than or equal to Rs 2 crore. Before revision of the load structure, the scheme did not ask for any exit load. There is no change in entry load structure. The aforesaid changes will be effective from 1 April 2008.

         

Kotak MF mops up Rs.285 cr via its FMP

Kotak Mutual Fund has mobilized Rs 285 crores via Kotak Fixed Maturity Plan -13 Months- Series 4 during their initial offer period from 24 March and closed 27 March 2008. It is a close-ended debt scheme. The scheme will mature 13 months after the date of allotment.

The investment objective of the scheme is to generate returns through investments in debt and money market instruments with a view to significantly reduce the interest rate risk. For the purpose of achieving the investment objective, the scheme will invest in a portfolio of debt and money market securities normally maturing in line with the maturity profile of the scheme. The fund will invest up to 100% in money market instruments and debt instruments. The scheme provides two plans i.e. retail and institutional plan with a sub-option of growth and dividend payout and dividend reinvestment option. If redemption is done within 1 year from the date of allotment 1.5% an exit load will be charged. And no exit load will be charged for redemption after 1 year.

 

Birla Sun Life MF revises load structure

Birla Sun Life Mutual Fund has announced the revision in the entry load structure of Savings 5 Plan offered under Birla Monthly Income Plan-II, an open-ended income scheme. According to the revised load structure, the fund will charge an entry load of 2.25% for purchases/switch- in of units. Before revision of the load structure, the fund was not asking an entry load. There is no change in exit load i.e. Savings 5 Plan offered under the Birla Monthly Income Plan-II will not charge an entry load. The aforesaid changes are to be done with effect from 3 April 2008.

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Mutual Funds NFO - Standard Chartered MF rolls out new FMP Series

Standard Chartered MF rolls out new FMP Series

Standard Chartered MF has rolled out a new fund called Standard Chartered Fixed Maturity Plans Yearly Series 21 and the scheme is close-ended income scheme. The scheme will have two plans -Plan A and Plan B. The duration of the scheme will be from the date of allotment to 20 April 2009. The investment objective of the scheme is to generate income by investing in a portfolio of debt and money market instruments normally in line with the duration of the scheme. The fund will invest up to 100% in debt and money market instruments, with low to medium risk profile. The investment in securitised debt will be up to 50% of net asset of the scheme.

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Mutual Funds NFO - HSBC MF launches HSBC FT Series 49

HSBC MF launches HSBC FT Series 49

HSBC Mutual Fund launched HSBC Fixed Term Series 49. The investment objective of the scheme is to seek generation of returns by investing in a portfolio of fixed income instruments normally maturing in line with the time profile of the plan. The scheme may invest up to 100% in money market instruments including CBLO and reverse repo. It may invest up to 100% in short term and medium term debt instruments and securitised debt. The investment in securitised debt will not exceed 50% of the net asset of the scheme. The net notional exposure to derivatives shall not be more than 50% of the net assets. Under normal circumstances, the scheme shall not have an exposure of more than 50% of its net assets in foreign securities.

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Mutual Funds News - MFs announce attractive dividends to retain investors

MFs announce attractive dividends to retain investors

The mutual fund (MF) industry is all set to meet the redemption pressures in a volatile securities market. Mutual funds have more and more started announcing higher dividends to retain the retail investors in various schemes. The fund houses are announcing dividends ranging from 40% to 80% at the close of the current financial year on March 31, 2008. Principal PNB Mutual Fund has decided to pay 80-pc dividend on the Principal Tax Saving Fund, an open-ended equity linked tax saving scheme. The Net Asset Value (NAV) of the scheme as on date is Rs 64.23. The record date for the declaration of the dividend has been kept March 31, 2008. Likewise, Birla Sun Life Mutual Fund has announced to offer a dividend of 60% on its Birla Equity Fund. The NAV of the scheme is Rs 91.29. Commenting on the MF industry's decision to offer an attractive dividend, a senior fund manager from a domestic fund house said that a majority of MF schemes have witnessed a big dip in their Net Asset Value (NAV) due to the recent meltdown in the equity market. The market capitalisation (M-Cap) was hit due to the volatility in the market which was caused due to the sub-prime factor in the global market. Obviously, MF industry offering attractive incentives in form of dividends will certainly help the fund houses in retaining the retail investors in different schemes, he said. Among other fund houses, Kotak Mahindra Mutual Fund has offered a tax free dividend of 40% on its balanced fund. The NAV of the scheme is presently Rs 22.15.

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Mutual Funds News - JP Morgan MF files offer document

JP Morgan MF files offer document

JP Morgan Mutual Fund has filed an offer document for JP Morgan India Active Bond Fund. It is an open-ended income scheme. The new fund offering (NFO) for the scheme will be Rs. 10 with an applicable entry load during NFO period. The fund house seeks to collect a minimum corpus of Rs. 1 crore for the scheme.

The minimum initial subscription amount under retail plan is Rs. 5000 and in multiples of Rs. 1 thereafter. Under institutional plan, it is Rs 1 crore in multiples of Rs. 1 thereafter.

There will be retail and institutional plan under the scheme. The scheme offers investors a growth option and a dividend payout option. The dividend option will offer dividend payout and dividend reinvestment.

The investment objective is to generate optimal returns while maintaining liquidity through active management of the portfolio by investing in debt and money market instruments. However, there can be no assurance that the investment objective of the Scheme will be realized.

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Mutual Funds News - Fidelity MF files an offer document

Fidelity MF files an offer document

Fidelity MF has unveiled a new fund called Fidelity Flexi Gilt Fund and it is an open - ended gilt scheme. The primary objective of the scheme is to generate sovereign linked returns primarily through investments in sovereign securities issued by the central government and/ or a state government or repos/ reverse repos in such securities or any security unconditionally guaranteed by the central / state government.

The scheme offers investment under two options namely dividend and growth. Dividend option further offers dividend payout, and reinvestment facilities. The scheme will invest up to 100% of its portfolio in securities, issued by central government/ state government(s) including reverse repo and money market instruments. The scheme may invest in offshore securities up to 25% of net assets.

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Mutual Funds News- HDFC MF files offer document

HDFC MF files offer document

HDFC MF plans to launch HDFC FMPs - Series VIII. HDFC Mutual Fund has filed an offer document for HDFC Fixed Maturity Plans - Series VIII. It's a closed ended income scheme with no assured returns. The new fund offer (NFO) price for the scheme is Rs. 10 per unit. A closed ended income scheme offering a series of plans of various maturities - up to 370 days from the date of allotment.

HDFC Fixed Maturity Plans - Series VIII is a closed ended income scheme comprising there under several investment plans. Each HDFC Fixed Maturity Plan offers: Dividend Option under 90 Days Plans and 181 Days Plans offers Normal Dividend Option and Dividend Option under 370 Days Plans offers Quarterly Dividend Option and Normal Dividend Option. Quarterly Dividend Option and Normal Dividend Option offers Dividend Payout facility only. Each HDFC Fixed Maturity Plan will be managed as a separate portfolio having common portfolio for both Retail and Wholesale Plans.

Each HDFC Fixed Maturity Plan will be managed as a separate portfolio having common portfolio for both Retail and Wholesale Plans.

The minimum investment amount under retail plan is Rs. 5,000 and in multiple of Re 1 thereafter. The minimum investment amount under wholesale plan is Rs 1 crore and in multiples of Re 1 thereafter.

The investment objective of the Plans under the Scheme is to generate regular income through investments in Debt / Money Market Instruments and Government Securities. Entry Load: The Scheme, being a close-ended scheme, is not permitted to charge Entry Load.

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Mutual Funds News - Tata MF files an offer document

Tata MF files an offer document

Tata MF is planning to launch a new fund called Tata Natural Resources Fund. Scheme: It is an open-ended equity scheme. The Investment Objective of the scheme is to seek capital appreciation by investing primarily in the equity and equity related instruments of companies that predominantly focus on or benefit from, directly or indirectly, the opportunities and developments in the natural resources sector.

Tata Natural Resources Fund offers two options i.e. growth and dividend. Dividend option will have facility of dividend payout and dividend reinvestment. The scheme may invest 65-100% in equity and equity related Instruments of companies belonging to natural resources industry. It will have investment of 0-35% in other equity and equity related instruments. The scheme may prefer to invest 0-35% in debt, money market and securitized debt medium instruments. Investment by the scheme in securitized debt will not normally exceed 20% of net asset of the scheme. The scheme may levy 2.50% an entry load for each investment amount less than Rs. 2 crore. No entry load will be charged for the investment amount equal to or more than Rs 2 crore.

The scheme carries an exit load for each investment amount less than Rs. 2 crore; it may charge 1% an exit load if redemption is done on or before expiry of 12 months from the date of allotment. For investment amount greater than or equal to Rs. 2 crore, the scheme may not charge any exit load. If redemption is done after expiry of twelve months from the date of allotment, there will be no exit load.

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Mutual Funds NFO - DSP Merrill Lynch MF rolls out FMP

DSP Merrill Lynch MF has unveiled a new scheme called DSP Merrill Lynch Fixed Maturity Plan 6 Months Series 5 and it is a close-ended income schemes with maturity profile of 6 months.

The primary investment objective of the schemes is to seek capital appreciation by investing in a portfolio of debt and money market securities. It is envisaged that the portfolio of each Scheme will display a maturity profile that is generally in line with the Term of the scheme. The schemes may also use fixed income derivatives for hedging and portfolio balancing. Both funds will invest can invest up to 100% in debt instruments and up to 100% in money market. These schemes may invest up to a maximum of 100% of the scheme's net assets in domestic securitised debt.

The scheme has two plans i.e. regular and institutional plan. Both plans will provide growth and dividend reinvest option. There will no entry load charged for the schemes due to its close-ended structure.DSP Merrill Lynch FMP 6 Months Series 5 charges an exit load of 0.75%, if the investment is redeemed before the maturity date. The minimum investment amount under regular plan will be Rs. 25,000 and in multiples of Re. 1 thereafter for the scheme. The scheme will have the minimum investment amount under institutional plan of Rs.1 crore and in multiples of Re. 1 thereafter.

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Max NY Life looks at urban market

Max New York Life is looking at the urban population with a range of new micro life insurance policies that it plans to launch by June. According to the source, the life insurance policies will be aimed at the grassroot labour class with premiums as low as Rs 50-100. Even a rickshaw-puller can be a potential customer. The company already has a micro insurance product called 'Easy-term policy' aimed at the rural poor, which it sells through SHGs and NGOs and in tie-ups with Peerless and Nirmal Chhaya. Last year, the company had sold almost 17,000 such policies with premiums ranging from Rs 50 to Rs 500. Almost 20 per cent of the company's business comes from the rural market. The company has tie-ups with YES Bank, 12 district cooperative banks of Andhra Pradesh and one in Rajasthan, and is also looking to collaborate with cooperative banks in the eastern region to sell low-end products. The company is contemplating to asset up 100 new offices in the country by the end of the year, of which eight will be in the East. At present, it has 233 offices all over India, of which 39 are located in villages. Almost 17 per cent of the company's business comes from the East where it has 24 offices at present.

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Mutual Fund NFO- ICICI MF rolls out Focused Equity Fund

ICICI MF rolls out Focused Equity Fund

ICICI MF has rolled out a new scheme called ICICI Prudential Focused Equity Fund and it is an open-ended equity scheme. The investment objective under the scheme is to seek to generate long-term capital appreciation and income distribution to unit holders from a portfolio that is invested in equity and equity related securities of about 20 companies belonging to the large cap domain and the balance in debt securities and money market instruments. The fund would invest 70-100% of corpus in equity and equity related securities. There will be 0-30% investment in debt instruments. The investment in securitised debt will be up to 50% of the debt portfolio and derivative instruments to the extent of 75% of the net assets. It is proposed to make investments in ADR/GDR to the extent of 50% of the net assets.

There are two options available under the scheme viz. retail and institutional option I. Retail option will have growth and dividend sub-options with dividend payout and dividend reinvestment facilities. Institutional option I will have only growth sub-option. Retail option with dividend reinvestment facility shall be the default option.

Under retail option, the scheme will charge a 2.25% an entry load for investment of less than Rs 5 crore, and no entry load will be imposed for investment of Rs 5 crore and above. The scheme may not ask for any entry load under institutional option I. Under retail plan, the scheme may charge 1% an exit load for investment of less than Rs. 5 crores and redeemed before 6 months from the date of allotment. No exit load will be charged for redemption for investment of Rs 5 crore and above. The minimum application amount under retail option is Rs.5000 and in multiple of Re 1 thereafter. Under institutional option I, the minimum application amount is Rs 10 crore and in multiples of Re 1 thereafter.

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Mutual Funds News- MFs' asset base declines 6.6% in March 2008

Mumbai: The asset base of the mutual fund industry came down by 6.61 per cent in March 2008, according to the the Association of Mutual Funds in India (AMFI) data. Thirty one of the 33 mutual fund houses witnessed fall in their assets under management (AUM), the exceptions being Birla Sun Life whose AUM rose 3.46 per cent and Mirae Asset Management which reported its AUM for the first time.

The total mutual fund asset base dwindled by Rs 37,394.10 crore in March. The assets under management as of March-end was Rs 5,27,705.93 crore, against Rs 5,65,100.04 crore a month ago. The asset base had shown an increase of 3.17 per cent for the month of February, which was mainly on the back of Reliance Mutual Fund reporting a substantial rise of 21.13 per cent in its AUM. A research report by a Mumbai-based broking firm stated that as on February 29, mutual funds were sitting on cash worth Rs 22,908 crore waiting to be deployed in the market.

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MF industry prepared to entrap unstable market

Mutual funds, which were affected by the sharp market fall, are planning schemes that will give fund managers the flexibility to adopt strategies in line with the market conditions. Fund houses want to ensure they are not restricted by the fund's investment mandate about having to invest in certain sectors even in case of change in sentiment.

JM Financial Mutual Fund has obtained approval from the Securities and Exchange Board of India to launch its multi-strategy fund, an open-ended equity-oriented fund that will adopt a host of strategies depending on the fund manager's view on the market. The scheme aims to provide capital appreciation by investing in equity and equity related securities using a combination of strategies to provide optimum returns to investors.

The BSE has been falling by around 24% from its peak on 10 January 2008 to 31 March 2008.

According to the offer document, if the fund manager expects the markets to head downwards, the scheme can hedge exposure to equity either fully or partially by initiating short futures positions in the index.

The fund will also take advantage of mispricing opportunities by shorting stock futures within applicable limits. Moreover, the fund manager will use put and call options, depending on his view of the market.

ICICI Prudential, in the draft prospectus submitted to SEBI for its long-short fund, speaks about how it would generate extra returns. ICICI Prudential Long Short fund is an open-ended equity scheme that seeks to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related securities and the balance in debt securities and money market instruments. The fund may also take short positions in stocks and/or index.

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Commodity News 3 April 2008

Maize rates likely to continue remain volatile in short term

Coimbatore: Maize prices are hoped to remain high in medium and long term, though they likely to be volatile in the short term, thanks to all round higher consumption demand, according to two delegates from the US associated with the US Grains Council who recently travelled to India meeting the members connected with the starch, poultry and feed sectors.A higher demand of meat, milk and eggs by high-income middle class in the country is a factor in this hiked demand of corn in India, a US Grains Council's report quoted the two as saying in their recent interaction with the industry delegates consuming maize.

The US members visited Ahmedabad, Mumbai and Coimbatore to meet the members of the poultry, feed and starch industries. In the case of India, despite increased domestic maize output, its increasing demand due to increased needs from poultry, starch and dairy sectors, will turn it a net importer by 2015. The US crop will be enough to supply to the world needs though there would be increased usage of maize for bio-fuel production following the mandate by that country to produce 15 billion gallons (56.7 billion litres) by 2020.

Coarse grain records sharp price increase this year

Coimbatore: Coarse grains have reported sharp price increase this year with the hike ranging between 15 to 28 per cent. Sorghum (jowar) reached a peak of Rs 10,500 per tonne this week as compared to its peak rate of Rs 7,700 the same time last year, a increase of about 26 per cent. The average monthly price of jowar has increased this year to Rs 9,750 per tonne as against last year's price of Rs 8,450. The barley prices, which increased to Rs 9,968 per tonne, are also higher this year by 28 per cent compared to last year, with the monthly average price ruling at Rs 10,080, up by 26 per cent over last year's average monthly price of Rs 7,950 per tonne. In the case of pearl millet (bajra), the grain ended this week at Rs 7,300 per tonne , some 14 per cent higher than last year's level and its average monthly price for March 2008 stood at Rs 7,000 per tonne as against Rs 6,750 a tonne last year.

         

Cardamom prices increase on purchasing support

Kochi: Cardamom prices, at the sales held in Kerala and Tamil Nadu last week, increased on thin arrivals and good purchasing support. After the March 16 crash, in which the average price declined to Rs 430 a kg, prices increased by around Rs 80 a kg as on March 30. The average price at the individual auctions during the week slowly increased to Rs 512 a kg on March 30 from Rs 480 last March 24. The total arrivals at the KCPMC (Kumily) auction on March 30 stood at 24 tonnes, of which 23 tonnes were sold. Maximum price was Rs 633.50 a kg and minimum Rs 330.50 a kg. Total arrivals during the current season up to March 30 stood at 4,239 tonnes as against 6,857 tonnes on the same day last year, while sales were at 3,948 tonnes compared to 6,310 tonnes as on March 30, 2007.

           

Pepper futures mkt sees mixed trend

Kochi: Pepper futures market on March 31 saw high volatility on confusing and conflicting reports from Vietnam on its pepper prices. Indian parity on March 31 at $3,900-3,950 a tonne (c&f) as the Rupee has strengthened against dollar. Vietnam reportedly quoted 500 GL at $3,450 and 550 GL at $3,620 a tonne (f.o.b.) while V Asta at $3,955 a tonne (f.o.b.). Brazil remained firm at B2 at $3,650 , B1 at $3,750 and B Asta at $3,850 a tonne (f.o.b.). April contract on NCDEX increased by Rs 17 a quintal to close at Rs 14,603 from Rs 14,586 on March 29. On NMCE April contract increased by Rs 13 a quintal to close at Rs 14,530 from Rs 14,517. May and July dropped up by Rs 46 and Rs 72 a quintal respectively while June and August increased by Rs 13 and Rs 61 a quintal respectively. Total turnover on NCDEX went up by 1,588 tonnes to 7,099 tonnes while that on NMCE increased by 566 tonnes to 1,278 tonnes.

           

Chilli futures benefit on crop damage

Mumbai: Most of the agriculture commodities traded on the negative zone on March 31 as traders felt that the cabinet committee meeting on the price increase likely to recommend the Government to delist some of the essential commodities traded on the futures platform. Barley touched the lower circuit of 2.64 per cent at Rs 1,120 per quintal ahead of rabi crop arrivals. Chana declined 1.66 per cent to Rs 2,785 per quintal following reports that the Government may resort to imports to rein in prices. Sugar prices dropped 1.55 per cent to Rs 1,461 per quintal on removal of export subsidy. RM Seed futures decreased 1.31 per cent to Rs 552 per quintal tracking weak sentiment in soy oil market. Chilli gained 2.06 per cent to Rs 4,401 per quintal on news of heavy crop damage in Andhra Pradesh.

         

Rubber sees steady trend

Kottayam: Spot rubber ended almost firm on March 31, the last trading day of the current financial year. Major players continued to sideline the market and hence the volumes were in an extremely low key. RSS 4, the only gainer of the day increased by 50 paise to Rs 103.50 a kg at Kottayam on scattered transactions while the grade closed flat at the same level in Kochi. The rubber futures turned better on NMCE. The April futures improved to Rs 104.40 (103.26), May to Rs 106.28 (105.24), June to Rs 107.60 (106.52) and July to Rs 107.41 (106.66) per kg for RSS 4. The volumes totalled 784 (318) lots. The open interest stood at 4,229 (4,134) tonnes with 1,889 (1,897) tonnes in April, 1,471 (1,395) tonnes in May, 646 (628) tonnes in June and 223 (219) tonnes in July. Spot prices were (Rs/kg): RSS-4: 103.50 (103); RSS-5: 100.50 (100.50); ungraded: 98.50 (98.50); ISNR 20: 99.50 (99.50) and latex 60 per cent: 70 (70).

         

Rubber price increases

Kottayam: Physical rubber prices increased on April 1. Supply worries still haunt the market and nobody seemed interested to sell the produce possibly on higher expectations. Sheet rubber increased 50 paise to Rs 104 a kg at Kottayam on scattered transactions while the grade was quoted steady at Rs 103.50 a kg at Kochi. The April futures weakened to Rs 103.95 (104.38), May to Rs 106 (106.33), June to Rs 107.25 (107.45) and July to Rs 107.45 (107.68) per kg for RSS 4. The open interest stood at 4,268 (4,229) tonnes with 1,883 (1,889) tonnes in April, 1,494 (1,471) tonnes in May, 665 (646) tonnes in June and 226 (223) tonnes in July. The volumes totalled 682 (784) tonnes. Spot prices were (Rs/kg): RSS-4: 104 (103.50); RSS-5: 101.50 (100.50); ungraded: 99.50 (98.50); ISNR 20: 100.50 (99.50) and latex 60 per cent: 70 (70).

           

Kochi rubber trade appeal on excess tax, refund

Kochi: The Cochin Rubber Merchants Association has recommended that the State Government should withdraw the new budgetary provision refusing the refund of excess tax paid on stock transfer and take measures to refund the excess tax paid on interstate sales within a time frame of three months. The Association, in a statement issued here pointed out that in the recent budget proposals for 2008-2009, the State Government withdrew the provision for refund of the difference between VAT and CST on stock transfer which will amount to Rs 90 crore during this year. Tyre companies purchased around four lakh tonnes from the State and transferred the same to their own factories in other States. Most of the non-tyre sector consumers purchased either through their agents in the State or purchased directly from dealers. The Association also pointed out that the new provision to impose one per cent cess is a retrograde measure, which goes against the ethics of VAT regime, and, therefore, this provision may please be withdrawn. The new proviso regarding sister concern is vague and unwarranted as sister concern transact business like any other genuine dealer.

           

Edible oil import duty slashes, a temporary measure

New Delhi: The slew of anti-inflationary measures mostly on the fiscal front by cutting duty on crude edible oil to zero and in refined form to 7.5 per cent were a purely temporary one to prop up domestic availability of these essential oils. Since the country's oilseeds production and productivity had been sluggish for several years and as the world prices of edible oil, like other commodity prices, were on the ascendant, the Government has decided to waive duty on import of crude edible oil and retain a moderate duty at 7.5 per cent on all refined edible oil imported into the country.

         

Pepper futures mkt falls

Kochi: The Pepper futures market after seeing high volatility fell marginally on April 1 on slow activities. Orders from the Central government is expected on the announced decrease of CST from April 1, and that in turn will motivate genuine dealers to do some business. Vietnam was offering FAQ 500 GL at $3,400 a tonne (f.o.b.) and 550 GL at $3,575 a tonne (f.o.b.). B Asta was being offered at $3,750-3,800 a tonne (f.o.b.), while B1 at $3,675-3,750 and B2 at $3,600 a tonne (f.o.b.). Indonesian L Asta remained unaltered at $4,000-4,050 a tonne (f.o.b.). India was offering MG 1 at $3,950-4,050 a tonne (c&f) New York. April contract on NCDEX fell by Rs 47 a quintal on April 1 to close at Rs 14,552. The fall in other contracts except September, was from Rs 42 to Rs 109 a quintal. September increased by Rs 56 a quintal. On NMCE April contract fell by Rs 43 a quintal to close at Rs 14,469 from Rs 14,512. All the other contracts except July fell by Rs 22 to Rs 100 a quintal while July increased by Rs 19 a quintal. Total turn over on NCDEX declined by 1,379 tonnes to 5,720 tonnes while on NMCE it dropped by 716 tonnes to 562 tonnes.

 

Rubber witnesses steady trend

Kottayam: Spot rubber prices were almost firm on April 2. Sheet rubber RSS 4 closed flat at Rs 104 a kg at Kottayam while the grade closed better by 50 paise at the same level in Kochi. The rubber futures turned better on NMCE. The April futures increased to Rs 104.50 (103.79), May to Rs 106.60 (105.88), June to Rs 107.70 (107.23) and July futures to Rs 107.62 (107.24) per kg for RSS 4.The open interest was 4,519 (4,268) tonnes with 1,900 (1,883) tonnes in April, 1,688 (1,494) tonnes in May, 691 (665) tonnes in June and 240 (226) tonnes in July. Spot prices were (Rs/kg): RSS-4: 104 (104); RSS-5: 101.50 (101.50); ungraded: 100 (99.50); ISNR 20: 100.50 (100.50) and latex 60 per cent: 70 (70).

         

Chana futures regain on short covering

Mumbai: After crashing to their lower circuit of four per cent on April 1, the soya complex futures on NCDEX stablised on April 2. Soyabean futures shed 1.44 per cent to Rs 4,299 per quintal on weak sentiment. RM seed was fall 0.75 per cent at Rs 526 per 20 kg. Chilli fell 1.52 per cent to Rs 4,290 per quintal on improved arrivals in the Guntur spot markets. Turmeric gave in by 0.98 per cent to Rs 3,138 per quintal. Speculative purchasing pushed up pepper futures by 1.76 per cent to Rs 14,790 per quintal. Chana recovered 1.57 per cent to Rs 2,718 per quintal on short covering coupled with fresh buying at lower levels.

         

Approval for NMCE July, Sept coffee contracts

Ahmedabad: The National Multi-Commodity Exchange (NMCE) on April 2, introduced futures contracts in coffee arabica and coffee robusta, besides other commodities, after getting clearance of the Forward Markets Commission (FMC). NMCE also unveiled two new contracts for futures trading in chana, which will expire on July 19 and August 20, 2008 respectively. Futures contract for the other commodities, launched from April 3, are sacking, soya oil, turmeric and kg gold. The maturity dates and delivery centres for these commodities will be as follows: sacking on July 15 at CWC warehouse in Kolkata, soya oil on July 19 at Indore, turmeric on July 19 at CWC warehouse at Erode in Tamil Nadu and Nizamabad.

 

Pepper futures mkt sees volatility

Kochi: Pepper futures market on April 2, raised on speculative activities. The market was highly volatile because of the sell calls in the early hours of trading and later followed by purchase calls from the bull speculators. India being competitive at $3,925 a tonne (c&f), there are chances that some demand might come to India for MG 1. The pepper prices in all other origins ruled firm. April contract on NCDEX on April 2 by Rs 256 a quintal to Rs 14,790. The increase in other contracts was from Rs 20 to Rs 326 a quintal. Total turnover on NCDEX increased by 583 tonnes to 6,303 tonnes, while that on NMCE moved up by 780 tonnes to 1,342 tonnes. Total open interest on NCDEX went up by 62 tonnes to 18,454 tonnes.

         

Coffee exports fall by 12% in FY08

Bangalore: Coffee exports (permit issued) in 2007-08 fell by 12.09 per cent to 224,966 tonnes compared with 255,908 tonnes previous year. The export realisation in rupee terms is up 5.09 per cent at Rs 2,102.31 crore in 2007-08 as against Rs 2,000.47 crore in 2006-07. In dollar terms, it is at $505.10 million, 13.42 per cent more than $445.33 million in 2006-07. In terms of unit value realisation, Indian coffee witnessed Rs 93,450 a tonne against Rs 78,171 last year. In the first-three months (January-March) of 2008, exports stood at 72,673 tonnes. Of this, Arabica Parchment accounted for 15,357 tonnes (last year 9,825 tonnes), Arabica Cherry 4,063 tonnes (4,683 tonnes), Robusta Parchment 4,972 tonnes (5,244 tonnes), Robusta Cherry 27,473 tonnes (29,110 tonnes) and instant coffee made up for 9,342 tonnes (12,965 tonnes). Italy continues to be the top importer of Indian coffee with a purchase of 16,898.4 tonnes, followed by Russia (7,493.8 tonnes), Germany (5,921.8 tonnes), Belgium (4,910.1 tonnes), Finland (3,041.8 tonnes), Spain (2,688.3 tonnes), Switzerland (1,867 tonnes), Jordan (1,813.8 tonnes), Kuwait (1,790.8 tonnes) and Croatia (1,785.6 tonnes). Among the exporters, General Commodities shipped 9,665.1 tonnes, CCL Products-India 7,603.5 tonnes, Tata Coffee 6,099.9 tonnes, Amalgamated Bean Coffee 5,587.5 tonnes and Allana Sons 4,968.4 tonnes.

 

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Indian Markets 3 April 2008- Markets continue to remain choppy

Markets continue to remain choppy

The markets opened on a positive note and traded in a range bound but choppy manner through the day to finally end with modest gains. While the Sensex was up 82.15 points or 0.52% at 15,832.55, the Nifty was up 17.40 points or 0.37% to close at 4771.60. The broadmarket indices underperformed the frontline indices as the BSE Midcap and Smallcap indices lost 0.40% and 0.91% respectively. Market breadth was negative, as A/D ratio was 0.9:1 on the BSE. NSE cash turnover was Rs.12,413.33crs. Vs. Rs.11,199.08 cr yesterday.

Sectorally, it was a mixed bag. The BSE IT, Oil & Gas and FMCG did well. The BSE Capital Goods and Power indices lost more than 2%. Gainers from the index pivotals included Satyam Comp, Wirpo, TCS, HUL and Infosys. Losers include BHEL, M&M, Rel Energy and Maruti Suzuki.

We continue with our view that the markets are likely to remain in a range in the coming weeks as they build a base after the recent sharp correction. The quarterly results that are to be announced in the next few weeks are likely to provide the trigger for the markets to break out of this range. We recommend a selective buying approach.

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Indian Markets 02 Apr 2008- Markets give up their morning gains

Markets give up their morning gains

The markets opened with an upward gap this morning on the back of strong global cues. However, they could not hold on to the gains and started to drift lower to finally close with modest gains. While the Sensex was up 123.78 points or 0.79% at 15,750.40, the Nifty was up 14.65 points or 0.31% to close at 4754.20. The BSE Midcap and Smallcap indices gained 0.28% and 0.64% respectively. The market breadth was healthy as A/D ratio was close to 2:1 on the BSE. NSE cash turnover was Rs.11,199.08 crs Vs. Rs.11,000.38 crs yesterday.

Sectorally, it was a mixed bag. While the BSE IT and Bankex surged in excess of 2%, the BSE Metal index lost more than 2%. Gainers from the index pivotals included HDFC, Infosys, ICICI Bank and Jaiprakash Associates. Losers were Rel Energy, Tata Steel, BHEL and ITC.

We continue with our view that the markets are likely to remain in a range in the coming weeks as they build a base after the recent sharp correction. The quarterly results that are to be announced in the next few weeks are likely to provide the trigger for the markets to break out of this range. We recommend a selective buying approach.

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Indian Markets 01 Apr 2008 - Markets recover from the lows of the day

Markets recover from the lows of the day

The markets opened marginally in the positive, but soon gave up their gains and slipped into negative

Markets recover from the lows of the day The markets opened marginally in the positive, but soon gave up their gains and slipped into negative territory. Post noon, the markets recovered sharply to finally end on a flat note. While the Sensex was down 17.82 points or 0.11% at 15,626.62, the Nifty was up 5.05 points or 0.11% to close at 4739.55. Broad market indices too were flat. While the BSE Midcap ended 0.51% lower, the BSE Small Cap index closed 0.26% higher. The market breadth was positive, as A/D ratio was 1.9:1 on the BSE. NSE cash turnover was Rs.11,000.38crs. Vs. Rs.14,487.46 crs. yesterday.

Sectorally, baring the BSE Oil & Gas, FMCG and Consumer Durables indices, all the BSE Sectoral indices ended in the red. The BSE Oil & Gas index gained 3.36%. The BSE Capital Goods was the worst hit as it lost 3.21%. Gainers from the index pivotals included HUL, Reliance, Rel Energy and TCS. Losers included BHEL, M&M, L&T, Wipro and Tata Steel.

Markets are likely to remain in a range in the coming weeks as they build a base after the recent sharp correction. The quarterly results that are to be announced in the next few weeks are likely to provide the trigger for any big moves. We recommend a selective buying approach.

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International Markets- 02 Apr 2008- Rally cools down at US Market

Rally cools down at US Market

Rallying mood took a backseat in the US Market today, Wednesday, 02 April, 2008 after Federal Reserve Chairman, Ben Bernanke clearly said he could not rule out a possible recession. Fed Chairman was testifying on the economic outlook before the Joint Economic Committee today. Six of the ten major economic sectors finished in negative territory. Telecom posted the largest loss while Energy posted the largest gain.

Dow fluctuated within a 140 point range today. For the day, The Dow Jones industrial Average ended with a loss of 45 points at 12,608.9. The Nasdaq Composite Index, finished marginally lower by 1.3 points at 2,361. S&P 500 finished lower by 2.6 points at 1,367.

Twenty out of thirty Dow stocks ended in the red today. Merck was the topmost loser while GM was the topmost Dow winner.

Market opened today in a negative mood after Fed Chairman Bernanke gave investors some pessimistic news that economic growth could become contractionary in the first half of 2008, but growth would strengthen in the second half of the year. Bernanke also noted that inflation remains a concern, though it should moderate in coming quarters, and markets remained under considerable stress.

Among separate economic reports, the ADP Employment Report indicated 8,000 jobs were added to the private sector during March. Market expected that the report would indicate a loss of 45,000 jobs. February's rate was revised to a drop of 18,000 payrolls from a drop of 23,000 payrolls.

Also, Factory orders for February fell 1.3%, which was worse than expected. January's downturn was revised upward to reflect a 2.3% downturn against January's initial reading reflecting a 2.5% downturn.

On the earnings front, Best Buy reported better-than-expected outlook and fourth-quarter results, and shares of the nation's largest electronics retailer went up 1.1%.

In the currency market today, the dollar index, which tracks the performance of the U.S. currency against other major currencies, was last down 0.25%. The dollar had firmed earlier after the ADP employment report showed that private sector jobs rose by 8,000 in March. But then it fell in the course of the day after Bernanke's testimony.

Crude prices rose today as dollar lost steam and Energy Department report showed that U.S. supplies of the motor fuel fell a third week. Market was anticipating that weekly inventory report will show crude inventories rose for the 11th time in 12 weeks as demand weakened and the same did.

Crude-oil futures for light sweet crude for May delivery closed at $104.83/barrel (higher by $3.85/barrel or 3.8%) on the New York Mercantile Exchange. Prices earlier fell by $1 below $100 during intraday trading. Crude prices are 59% higher on a yearly basis. For the year, crude is up by 9% till date. It touched a high of $111.8 on 17 March, 2008 but has slipped thereafter.

As per the inventory report by Energy Department, U.S. crude inventories rose more than expected, up 7.4 million barrels to 319.2 million barrels in the week ended 28 March against an anticipation of increase by more than 2 million barrels. Refineries operated at 82.4% of their operable capacity last week, up slightly from the previous week's 82.2%.

Volume on the New York Stock Exchange topped 4.2 billion, while more than 2 billion shares were exchanged on the Nasdaq. Advancers edged just ahead of decliners 3 to 2 on the NYSE and about 5 to 4 on the Nasdaq.

Federal Reserve Chairman Ben Bernanke will be speaking before the Senate Finance Committee regarding the collapse of Bear Stearns tomorrow morning. On the economic front, the weekly initial jobless claims are set for release before market opens. At 10:00 AM ET the market will get a read on the March ISM non-manufacturing index.

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International Markets - 02 Apr 2008- Asian markets spurred by Wall Street gains

Asian markets spurred by Wall Street gains

Asian markets accelerated further getting a boost from the yesterdays rally on Wall Street. The Asian markets advanced the most in seven weeks, led by banks and electronics makers, on speculation financial companies will be able to overcome a freeze in credit markets and shore up global economic growth, with financial stocks such as Mizuho Financial Group in Tokyo, DBS Group Holdings in Singapore and Ping An Insurance (Group) Co. of China in Hong Kong spiking up on optimism the worst in the ongoing global credit crisis was over.

The confidence stemmed from news of a planned capital rising by two banks UBS and Lehman Brothers Holdings Inc., which prompted a strong, rally on Wall Street overnight. The Dow Jones Industrial Average climbed 391.47 points, registering its eighth-biggest point jump ever; closing 3.2% up at 12,654.36. The S&P 500 index added 47.48 points gaining 3.6% to 1,370.18, while the Nasdaq Composite 83.65 points to 2,362.75.

The Nikkei 225 Average jumped 4.2% to 13,189.36, also the largest increase since Feb. 14, boosted by a gain in the dollar against the yen. The broader Topix index gained 4.2% to 1,282.07.

In Hong Kong, the Hang Seng Index rise 3.2% to 23,872.43, while the Hang Seng China Enterprises Index climbed 4.7% to 12,807.35.

Australia's S&P/ASX 200 added 2.6% to 5,502.90, South Korea's Kospi advanced 2.4% to 1,742.19, New Zealand's NZX 50 index climbed 1.7% to 3,592.79 and China's Shanghai Composite rose up by 0.56% to 3,347.88.

Elsewhere, Taiwan's Weighted Index gained 2.2% to 8,605.32 and Singapore's Straits Times Index rallied 2.5% to 3,123.95.

In the afternoon trading, India's Sensex was up by 1.2% to 15,815.21, while the broader S&P CNX Nifty index gained 0.7% to 4,772.30.

The dollar was quoted at 101.75 yen in Asian currency trading, compared with 101.85 yen in New York late Tuesday and 99.64 yen late Monday.

Crude oil for May delivery slipped as much as 43 cents to $101.41 a barrel in electronic trading, after rising 60 cents to settle at $100.98 a barrel in regular trading Tuesday on the New York Mercantile Exchange.

The European shares extended the rally. The national indexes opened higher, with the U.K. FTSE 100 index up 0.1% to 5,861.60, the German DAX 30 index up 0.4% to 6,744.40 and the French CAC-40 index up 0.4% to 4,884.03.

On the data release side we had United Kingdom's construction sector registered a first decline in six years. The Chartered Institute of Purchasing and Supply (CIPS) said the purchasing managers index for the construction sector fell to 47.2 in March from 52.4 in February. The March reading is below 50 means it is the first time the construction sector has contracted since November 2001, the CIPS said. The survey shows new order volumes slipped into negative territory for the first time since October 1998 to hit a record low of 48.9.

Looking at the data release calendar the day is schedule to release producer price index for Euro zone accompanied by U.Ks money supply figures. In the evening we have ADP employment change for US accompanied by factory orders. However the focus will be on Bernankes testimony at Senate

 

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International Markets - 02 Apr 2008 - Bulls back in US Market

Bulls back in US Market

US Market kicked off the second quarter on a very happy note as a few good news in the domestic front helped indices post huge gains at the end today, Tuesday, 01 April, 2008. Financial stocks once again helped US Market end higher today. All ten sectors ended in the green today. Elsewhere, traders parted off with commodities today as dollar rebounded. Hence gold and oil prices fell.

For the day, The Dow Jones industrial Average ended with a huge gain of 391 points at 12,654. The Nasdaq Composite Index, finished higher by 83.6 points at 2,362. S&P 500 finished higher by 47.5 points at 1,370.

All thirty Dow stocks ended in the green today. Citigroup along with other financial Dow components led the team of Dow winners. Citigroup shares soared by more than 11% today.

Market opened today in a positive mood and posted great gains throughout the day. There was mixed news in the financial front. UBS announced it expects to write-down an additional $19 billion in assets, its largest write-down to date. This brings the firms total write-downs to $33 billion since October. Deutsche Bank announced a write-down of $3.9 billion.

But Lehman Brothers said that it is raising $4 billion in a preferred stock offering to shore up its capital position. This news gave the financial sector a good boost today.

Among major economic report of the day, the Institute of Supply Management (ISM) Manufacturing Index, a national manufacturing survey, unexpectedly rose 0.3 to 48.6. Market expected a reading of 47.5. A number below 50 in the ISM Index is meant to signal contraction; nonetheless, the market ran with the news as a hopeful sign that conditions in the manufacturing sector are stabilizing.

Crude prices fell modestly lower today as dollar rebounded against its rivals. Prices also softened on signs that tomorrows weekly inventory report will show inventories rose for the 11th time in 12 weeks as demand weakened.

Crude-oil futures for light sweet crude for May delivery closed at $100.98/barrel (lower by $0.60/barrel or 0.6%) on the New York Mercantile Exchange. Prices earlier fell to $99.55 during intraday trading. Crude prices are 55% higher on a yearly basis. For the year, crude is up by 5.2% till date. It touched a high of $111.8 on 17 March, 2008 but has slipped thereafter.

In the currency market today, the dollar extended gains gaining more than 2% against the yen as stocks soared after the Institute for Supply Management's manufacturing index unexpectedly inched higher. This calmed the recession fears to a little.

Volume on the New York Stock Exchange topped 4.7 billion shares, with six stocks gaining for every issue on the decline. On the Nasdaq, 2.1 billion shares were exchanged, and advancers topped decliners 3 to 1.

Earning reports will kick off from tomorrow. Best Buy is one of the major names on that front. Among economic data, February's Factory Orders are due which gauges how busy factories will be as they work to fulfill orders. Other than that, Fed Chairman Bernanke will testify before the Senate Banking Committee on financial market turmoil in the midmorning hours.

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International Markets - 01 Apr 2008

Asian Markets end mixed on the first day of second quarter

Asian stocks traded mixed, with Nikon Corp. fronting advances in Japanese technology stocks, while Samsung Electronic Co. led South Korean stocks higher after the technology giant said it was seeking to raise wholesale prices for its random-access memory chips in April. Markets in Shanghai retreated following comments by the People's Bank of China yesterday indicating a more hawkish stance on monetary policy.

In Sydney investors were cautious during a session that saw the Reserve Bank of Australia hold interest rates unchanged at 7.25%, as expected, while its accompanying statement offered a dovish tone on the outlook for further rate hikes. The S&P/ASX 200 ended the session with a gain of 0.1% to 5,361.20.

Tokyo's Nikkei 225 Average was up 1%, rising to 12,656.42. The Topix index added 1.4% to 1,230.49. Japanese markets shrugged off the quarterly Tankan report from the Bank of Japan showing confidence among large companies had deteriorated to the most pessimistic level in more than four years. The poll also showed firms plan to reduce capital expenditure by 1.6% from last year's level in the 12-month period which begins today

However in Seoul, the Korean Composite Index, or Kospi, dropped marginally by 0.1% to 1,702.25 as South Korea's consumer price index rose 3.9 % in March from a year earlier as higher cost of crude and other raw materials pushed up prices of industrial goods. The National Statistical Office said the low comparative base last year, higher service fees and a weaker currency contributed to the acceleration in consumer prices last month. In March 2007 CPI was up 2.2 percent.

Shanghai's Composite Index fell 4.1% to 3,329.16 following comments by the People's Bank of China yesterday indicating a more hawkish stance on monetary policy. The benchmark fell 3% Monday, capping a 34% decline for the quarter, marking its worst performance since 1992.

Hong Kong's Hang Seng Index climbed 1.3% to 23,137.46. The China Enterprises Index, a local benchmark for mainly Chinese state-owned shares, added 1.3% to 12,237.36. In Taipei, the weighted Price Index of the Taiwan fell 1.8% to 8,419.72.

Malaysia's KLSE Composite fell by 0.4% to 1,242.92 while New Zealand's NZX-50 rose 1.8% to 3,533.56. Indonesia's Jakarta Composite was down 3.4% while Thailand's SET added 0.06%.

In the afternoon trading Singapore's Straits Times Index climbed 1.2% to 3,042.62 while Indias Sensex was marginally up by 0.1% to 15,661.70.

On the New York Mercantile Exchange, gold futures finished down $15 an ounce. In after-hours electronic trading, front gold futures rebounded $2.7 to $921.60 an ounce.

Crude-oil futures trade lower, rose as much as 16 cents to $101.74 a barrel. The May contract for crude oil fell $4.04 to settle at $101.58 a barrel in Monday's session on Nymex.

The European stocks started the second quarter on an upbeat note, with financials moving higher as investors welcomed moves to draw a line under exposure to the troubled U.S. housing market. In the opening trade the U.K. FTSE 100 index moved up 0.6% to 5,731.40, the German DAX 30 index rose 0.6% to 6,573.23 and the French CAC-40 index rose 0.6% to 4,735.66.

Meanwhile according to the data release, a purchasing managers index for U.K. manufacturers that held steady in March, posting a reading of 51.3. It is followed by manufacturing purchasing managers index for Euro zone, which fell to 52.0 in March against 52.3 of February.

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