US Market loses steam in the final hour

01 May 2008 | 09:06 US Market loses steam in the final hour

US Market started off the day strongly today, Wednesday, 30 April, 2008 but ended the day on a negative note after Federal Reserve decided to slash overnight lending rate and discount by another quarter percentage point to 2% and 2.25% respectively. Market traded in sideways fashion for most part of the ay. A stronger than expected GDP report failed to keep its impact for long on the market. Three of the major economic sectors finished the session in positive ground, ie energy, materials and telecom.

The Federal Open Market Committee announced today that it cut the fed funds and discount rates by 25 basis points. This left the fed funds rate at 2% and the discount rate at 2.25%. The Fed said economic activity remains weak, while inflation expectations are picking up.

The market was up by 176 points at one point in the day. Even, after Feds decision, market was trading higher. But it lost all steam in the final hours of trading. At the end, The Dow Jones industrial Average ended with a loss of 11.8 points at 12,820.18. The Nasdaq Composite Index, finished lower by 13.3 points at 2,412.3. S&P 500 finished lower by 5.3 points at 1,385.5.

Sixeen out of thirty Dow components ended in the red today. Citigroup was the main Dow loser. The stock slipped by more than 4% today.

The majority of earnings reports were better than expected. Colgate-Palmolive, General Motors and Procter & Gamble - all topped expectations.

On the economic report front, advance first quarter GDP rose by 0.6%, topping the consensus estimate of 0.5%. Separately, the ADP Employment Report, a measure of nonfarm private employment, showed an increase of 10,000 jobs in April, easily beating the consensus estimate that called for a decline of 60,000.

The April Chicago Purchasing Managers' Index - the regional manufacturing survey came ahead of expectations at 48.3, which were up from the previous reading of 48.2 and also ahead of expected 47.5. Because the number is below 50, it reflects contraction in manufacturing activity in the Chicago region.

Crude prices dropped by more than $2 today as the weekly inventory report by the Energy Department showed that crude supplies rose more than forecast. Crude-oil futures for light sweet crude for June delivery closed at $113.46/barrel (lower by $2.17/barrel or 1.9%) on the New York Mercantile Exchange.

EIA reported today that U.S. crude oil imports averaged 10.2 million barrels per day last week, up 174,000 barrels per day from the previous week. Traders had anticipated that U.S. crude-oil supplies advanced 950,000 barrels in the week ended 25 April. Crude inventories were boosted by increasing imports. U.S. refineries operated at 85.4% of their operable capacity last week, down 0.2% from the last week.

In the currency market today, the dollar fell against major counterparts after the Fed decision. The dollar index, which tracks the performance of the greenback, dropped 0.5% to 72.54.

Volume on the New York Stock Exchange topped 4.4 billion, while nearly 2.2 billion shares were traded on the Nasdaq, with advancing stocks ahead of those declining by 8 to 7 on the NYSE and decliners edging just ahead of advancing issues on the Nasdaq.

For tomorrow, April's vehicle sales data are due tomorrow, as are March's personal income and spending figures. The weekly jobless claims figure is also due prior to the market's open followed by the ISM Manufacturing Index for April and construction spending data for March. On the earnings front, Exxon Mobil is the Dow component along with a few other companies to report before market opens.

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Get Best out of your Credit Card

Get Best out of your Credit Card

Buying something expensive is no longer a problem. From that designer outfit to the most recent gizmos, you can get it all with a swipe of a credit card. But is it as simple as it sounds? Should you get carried away with those flashy ads and promos telling you how easy it is to buy stuff? Let's find out.

Whether dining at a restaurant, doing your grocery shopping or making the latest purchase, the most convenient mode of payment today is the credit card.

But wait a second before you swipe it -- do you know how to make the best use of your card? Which brings me to another question -- do you ever wonder why so many banks chase you with the offer of a free card? The answer is simple; it's the hefty interest rate (as much as 36 per cent per annum) that they charge when you don't pay your credit card bill on time. This interest is a lucrative source of revenue for them.

Understanding credit cards

A credit card is issued by a bank or a credit card company; it permits you to make purchases or pay your bills without using physical cash. The most important benefit is that you get a leeway of 20 to 50 days to make your payment after you use the card. Your bill is calculated from the date of billing. The time between each billing cycle -- which is the billing date between one month and the next -- is known as the 'interest free period'; however, if you do not pay your bill on time, you will be charged a hefty interest.

The second flexibility that you get is the choice to make the payment either at one go or on a monthly installment basis. Though this option becomes more feasible in terms of easy payment, watch out for the interest rate that can go up to 35-43 per cent annually.

Ask yourself basic questions

~ Why do I need a credit card?

~ Is it because it is easier not to have to deal with cash or is it because everyone else has one?

You must realise there is no such thing as a 'free lunch'. Why would anyone offer free credit cards or even free add-on cards? Add-on cards are offered to you if you pay your bills regularly or have a good payment history. These cards can be in the name of your father/ mother/ spouse/ child; they can use the add-on card for making purchases. It functions exactly like your own credit card. Of course, the purchases are billed to the main credit card owner's account.

Whenever you swipe your card, it comes to you at a cost. You use the credit card to your advantage when you clear your bill within the 'interest free period', which is generally between 20-50 days (depending on the billing cycle).

Credit cards broadly fall under four categories -- regular, silver, gold, platinum. Each offers more facilities and each is more expensive.

Before you make up your mind to own one, do not forget to run a search on the maximum benefits you could avail of under a particular card. For instance, some credit cards offer discounts on airfares, retail shopping, etc.

So, while choosing the right card for yourself, know the costs involved and the benefits you can enjoy.

What else should you know

Once you start using your credit card, the card company sends you a monthly statement list of the purchases/ payments you have made with the card. You will have to pay this bill within a certain number of days. Don't ever forget that you will be charged a high interest rate if you don't pay your bill on time, that is before your due date.

Generally, a credit card finds a place in your wallet because of its 'free credit period', also known as the 'grace period'. This means you don't actually pay for something as soon as you buy it using your card. You pay for it when the credit card bill is delivered to you.

The number of 'free' days that you get depends on the statement date and the transaction date. Generally, a time frame of 20 days is given, but if you plan purchases smartly, you may end up getting even 50 days of credit. This means that, if your billing date is today and you buy something tomorrow, you could get 50 days of credit. However, if your billing date is today, and you bought something using your credit card two days ago, you will only get a benefit of 22 days.

Make the best of your card

1. Pay your bill before the due date. If you are not able to do so, use the transfer balance facility through which you can transfer the balance amount on your bill to another credit card issuer and pay fewer charges.

2. Do not use the cash advance feature (where you can withdraw cash against your card just like an ATM) unless it is very crucial; the amount you withdraw does not qualify for an interest free period. The interest rate charged on such withdrawals ranges from 25-30 per cent per annum.

3. Know your credit card's billing cycle, the actual date of when it begins and ends. Make your purchases in such a manner that you get maximum free credit days.

4. Don't own multiple cards. Stick to a maximum of two cards. More than that and you will find it difficult to keep a track of how much money you are spending.

5. Always clear your credit card bills at least seven days before the due date to avoid being hit with a late fee.

6. Before you choose your credit card, take suggestions from your friends/ relatives.

7. Keep the receipts you get when you use your card; use these to check your bill when it is mailed to you.

8. Keep your card and your 16 digit credit card number confidential.

9. If you have more than one, carry only those that you think you will need when you leave the house.

10. Look out for cards that give you the highest free credit period.

 

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How equity funds helps u make money..

How equity funds helps u make money..

Diversified equity funds are often looked upon as the 'Plain Janes' of the mutual fund industry. 'What's so great about them if you can invest directly in stocks?' is what people have probably told you.

It's time to take a good look at what the seemingly plain diversified equity fund is capable of delivering.

You don't have to go back too far in time. In 2005, the best performing diversified equity fund delivered a return of 80.21%. You read that right! The lousiest actually delivered 23.32%.

Not a single diversified equity fund lost a single penny over the calendar years 2003 to 2005. Even the worst fund returned over 37% per annum during this time period.

In 2006, the returns were more subdued. Nevertheless, the best fund delivered a return of 61.48% and the worst, -3.20%.

Let's say that, 10 years ago, you put in a one-time investment of Rs 10,000 in two funds: HDFC Equity and Magnum Equity. By January 1, 2007, your investment in HDFC Equity would be worth Rs 2,66,763 and Rs 73,185 in Magnum Equity.

The varied assortment

While we talk about diversified equity funds as a category, it will be inaccurate to assume they all have the same focus. In fact, nothing could be further from the truth.

Some like Magnum Midcap, Franklin India Prima, Sundaram BNP Paribas Select Midcap and Birla Mid Cap are focussed on mid-cap stocks.

Some funds like Pru ICICI Growth and Franklin India Bluechip are focused on large-caps.

Birla MNC and UTI MNC are examples of those investing in multinational companies. DSP Top 100 Equity invests in the 100 largest companies.

And that was just the investment focus. They differ on how much they invest in debt (fixed return), equity (stocks) and how much they hold in cash.

The funds will also differ on the number of stocks that each fund manager decides to invest in. Some may have more than a hundred stocks, others around 20.

Picking the right one

As of now, there are over 150 diversified equity funds in the market. And the variety is immense.

If you decide to invest in them, make sure you understand the objective of the scheme and see if it fits in with your investment needs. Don't just blindly invest in any fund or New Fund Offering that hits the stands.

Ask yourself certain questions:

1. Am I comfortable with the fund's objective?

2. Has the fund manager invested in too few stocks?

3. Is s/he very heavy on either mid- or large-caps?

4. Is s/he holding a huge amount in cash?

5. Has he invested very heavily in just one sector?

In other words, make sure you understand what you are investing in.

We have picked up five good funds, which we will carry tomorrow. Take a look and see if they fit into your profile.

 

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15 Common Financial Problems

15 Common Financial Problems

When it comes to psychology and financial behaviour, India does not have too much of research papers. Hence we are forced to turn to the US or UK for such research work.

US studies have summarised financial problems and have found the following to be the most common of financial problems:

~ Not planning: The single biggest problem for most people is that they just do not plan their finances. It just keeps coming and going. Even if they are not happy about the results of what they have done so far, they do not change the way things are done.

~ Overspending: Many people with not very high incomes have very high ambitions. This is likely to get them to grief. Most of this problem is because the salesmen in most shops do not tell you the price of a product, they only tell you the EMI -- so anything from a plasma TV to a luxury home on the outskirts of the city are made to look cheap! After all at Rs 2,899 a month does a plasma TV not look cheap?

~ Not talking finance at home: Children are kept away from the finance topics at the dining table. Finance is perhaps the second most taboo topic at home! So many children grow up without knowing how much of sacrifice their parents have gone through to educate them.

~ Parents spending on education and marriage: There are just too many kids out there who believe that they need to worry about savings, investment and life insurance only at the age of 32 plus. This means your father, father?in-law or a bank loan has funded your education and marriage. Kids should take on financial responsibility at a much younger age than what is happening currently.

~ Marriage between financially incompatible people: Most marriages under stress are actually under financial stress. Either the husband or the wife is from a rich background and the other partner cannot understand or cope with the spending pattern. It is necessary to match people financially before marriage.

~ Delaying saving for retirement: "I am only 27 years old why should I think of retirement" seems to be a very valid refrain for many 32 year olds! Every year that you delay in investing the greater the amount that you will have to save later in your life. Till the age of 32 it might be feasible for you to catch up, but after some time the amount that you need to save for retirement just flies away.

~ Very little life insurance: With all the risks of life styles, travel, etc. illness and premature death are common. We all have classmates who had heart attack at the age of 32 but still pretend that we do not need life or medical insurance. We buy car insurance because it is forced upon us, but we ignore life insurance! Imagine insuring a Rs 10 lakhs car, but not insuring (or under insuring) the person who is using the car -- and paying for it, that is, you!

~ Not prepared for medical emergencies: Normally big emergencies -- financially speaking -- are medical emergencies. Being unprepared for them -- by not having an emergency fund is quite common. Emergency fund has now come to mean the credit card -- which is good news for the bank, not for the borrower.

~ Lack of asset allocation: Risk is not a new concept. However, it is a difficult concept to understand. For example when the Sensex was 3k there was much less risk in the equity markets than there is today. However at 3k index people were afraid of the market. Now everybody and his aunt wants to be in the equity market -- and there are enough advisors who keep saying, "Equity returns are superior to debt returns." This is true with a rider -- in the long run. It is convenient for the relationship manager to forget the rider. So there could be a much larger allocation to equity at higher prices -- to make for the time missed out earlier.

~ Falling prey to financial pitches: The quality of pitches has improved! Aggressive young kids are recruited by brokerage houses, banks, mutual funds, life insurance companies, etc. and all these kids are selling mutual funds, life insurance, portfolio management schemes, structured products, et al. Selling to their kith and kin helps these kids keep their jobs, and there is happiness all around! These kids, themselves prey to financial pitches, have now made it an art when they are selling to their own natural 'circle of friends' and relatives.

~ Buying financial products from 'obligated persons': This is perhaps one of the worst things you can do in your financial life. A friend, relative, neighbor, colleague who has been doing something else suddenly becomes a financial guru because they have become an agent! They, in great enthusiasm, sell you a financial product and promptly in 2 years time give up this 'business' because it is too difficult. You are saddled with a dud product for life! What a pity. Charity begins at home, not financial planning.

~ Financial illiteracy: Most people do not wish to know or learn about financial products. They simply ask, "Where do I have to sign" -- so buying a mutual fund is easier than buying life insurance! Selecting products based on the ease and simplicity of buying is a shocking but true real life experience in the financial behaviour of the rational human being!

~ Ignoring small numbers for too long: What difference will it make if I save Rs 1,000 a month? Well over a long period it could make you a millionaire! So start early and invest wisely. It will make you rich. That is the power of compounding.

~ Urgent vs important: Most expenses, which look urgent, are perhaps not so important -- the shirt or shoe at a sale. That luxury item which was being offered at 30 per cent discount is such an example. These small leakages are all reducing the amount of money you will have for the bigger things like education or retirement.

~ Focusing too much on money: Money is no longer a commodity to buy things. It is a scorecard of one's life. That will cause stress, and yoga might help. However if you will seek a branded yoga teacher -- so that your friends think you have arrived, yoga it self could cause financial stress! (Sounds wierd but very true...

 

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Dogs of Sensex...A great stock picking strategy

Dogs of Sensex...A great stock picking strategy

This strategy is called Dogs of the Sensex, based on the Dogs of the Dow theory made famous by Michael O'Higgins.

Dogs of the Dow is one of the most popular 'mechanical' investing techniques. It takes all of the research, strategy and guesswork out of investing. In fact, it will only take up two-three hours of your time each year.

Like the BSE Sensex is the benchmark index for the Indian stock markets, the Dow Jones Industrial Average, DJIA, is the benchmark index for the US stock markets. A benchmark index consists of stocks that represent various dominant sectors of a country's economy.

As unreal as that sounds, this technique has been around since the early 1990s, when Michael O'Higgins introduced it in a book.

Here's how it works

~ Once each year, you look at the 30 stocks in the Sensex and pick the 10 with the highest dividend yield.

Dividend yield is the dividend amount per share divided by the share price.

For example, a dividend yield of 3 per cent means that a share that costs Rs 100 would pay a dividend of Rs 3.

A high dividend yield is seen as an indication that a stock is under-priced. A low dividend yield indicates that the stock is over-priced.

According to the Dogs of the Dow theory, such stocks are the best candidates for a jump in their prices. You invest an equal amount in each of these 10 stocks, and then wait for a little more than a year.

~ After one year, you look at the Sensex again. You sell the stocks that are no longer in the top 10 by dividend yield (the 10 stocks that you had picked earlier will not be there because their price will have risen or because a few of them might have been removed from the Sensex. A committee that looks into the composition of Sensex changes the stocks that form the Sensex on a regular basis).

~ You replace them with the stocks that now make the top 10 list by dividend yield (they will be there because their prices would have fallen or they are new entrants in the Sensex).

~ Important note: Make sure you hold the stocks you buy for one year and one day. If you hold and sell your stocks after a day more than a year, it is considered as long-term capital gain. In India, long-term capital gains are not taxed at all. Any gains that you make by buying and selling a stock/s within a year is considered as short term capital gains and is taxed at 10 per cent.

This strategy needs you to rebalance your portfolio after a year and a day. This is because the stocks with high dividend yields that you had picked the previous year may not remain the top dividend yielding stocks after a year.

The strategy WORKS and how!

As mentioned earlier, one of the big attractions of the Dogs of the Dow strategy is its simplicity; the other is its performance.

From 1957 to 2003, the Dogs outperformed the Dow by about 3 per cent, averaging a return rate of 14.3 per cent annually whereas the Dows averaged only 11 per cent.

The performance between 1973 and 1996 was even more impressive, as the Dogs returned 20.3 per cent annually, whereas the Dow averaged 15.8 per cent.

More than the performance of this strategy in the US market, the other reason it will work is due to the assumption on which the entire strategy is based.

Do things the smart way

The base of this investment style is that the Dow laggards, which are temporarily out-of-favor stocks, are good companies because they are included in the index (if they were not, then they would not be a part of the Dow or for that matter the Sensex, in the first place); therefore, holding on to them is a smart idea, in theory.

Once these companies rebound (that is, the price of their stocks increase) and the market has revalued them properly, you can sell them and renew your portfolio with other good companies that are temporarily out-of-favor but the potential of a high dividend yield.

Companies that form a particular benchmark index have historically been very stable companies that can weather any market crash with their solid balance sheets and strong fundamentals.

Furthermore, because there is a committee perpetually tinkering with the index like the Sensex, you can rest assured that the Sensex or any other index is made up of good, solid companies.

Investing in dividend dogs of the Sensex is similar to the strategy of `Dogs of the Dow' followed in the US.

In the US, the strategy involves investing in the high dividend yielding stocks that are part of the Dow Jones Index. The strategy has been found to beat the market consistently in the US. Adaptations of the strategy in the UK and Canada [Images] have also delivered index-beating returns.

Caution is the key once again

This strategy, like any other stock picking strategy in the world, is not foolproof. It cannot save you from the losses during recessions; it can at the maximum minimise your losses. The key to this strategy is that it can beat the Sensex return over a long term; at the same time, it gives you the benefit like that of a fixed deposit.

If you are looking for a mechanical, non-emotional way of investing in the stock market, the Dogs of the Sensex may be your answer. This strategy removes out the judgment required in the stock market, replaces it with cold calculation and brings sanity in our investing.

 

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Financial Plannings for Women...!

Financial Plannings for Women...!

The most arduous of journeys begin with a small step. When it comes to something as important as planning for child's education and marriage, that small step means setting yourself an important objective.

To put it plainly, the fundamentals of investing are no different for men or women; so you have to plan your investments, execute the investment plan and track it regularly. If this sounds a little complicated, don't worry, we have simplified the process for you.

Step 1: Define your objectives

The most important thing to do while you sit down to plan your finances is ask yourself why you want to invest. For a married woman with children, the answer could be the child's education or marriage.

For a woman whose children are already married, the desire to invest could stem from a dream to set up a small boutique, for instance. For a woman who is yet to get married, it could be for her marriage. So you could have a variety of objectives; when you get down to penning them down you will notice that the list is a lot longer than what you had bargained for.

When we began compiling a list of likely objectives for women we came up with some interesting options:

Saving for your own marriage 5 years from today.

Saving for your child's education 15 years from today.

Saving for your child's marriage 20 years from today.

Saving for a small business that you want to set up at a later date

Saving for an overseas trip, maybe even a pilgrimage 5 years from today.

Saving for a gift for your spouse or parents

Saving for your retirement 30 years from today.

This seemingly long list could be even longer when you take into consideration objectives that are peculiar to you.

Once you have the investment objectives in place, the next step is to prepare an investment plan to achieve those objectives. This may sound daunting, but it isn't, when you consider that it's your investment consultant who has to draw up the investment plan and your role is limited to giving him inputs in terms of your investment objective, appetite for equity-linked investments, investment time frame, tax-efficient returns and the like.

Step 2: Identify the investment consultant

Since your investment consultant has such an important role to play in helping you achieve your investment objectives, it is important that you 'connect' with the right consultant. To make your job simpler, we have prepared a checklist to help you select the right investment consultant:

Both insurance and mutual fund consultants need certification before they begin advising clients. Insurance agents must be certified by the IRDA (Insurance Regulatory and Development Authority), while mutual fund agents must be certified by AMFI (Association Mutual Funds in India). The agent must have the certification on his person, so it's relatively simple to affirm whether your consultant is qualified.

An investment consultant should be competent enough to understand your financial objectives and chalk out an investment plan that can best help you achieve them.

It is critical that investment consultants are objective and unbiased in their advice. Being objective means placing the client's interest over your own. The investment consultant should be faithful to the plan that he has prepared for you and his advice must revolve around it.

Value-add investment services is another area that your consultant must treat as priority. Tools and calculators, stock and mutual fund alerts, portfolio tracker, research on mutual fund schemes and life insurance plans are some of the value-added services that investment consultants provide. Of course, there are few consultants who do this, but those are the ones you must identify. Some of these tools are web-based and should appeal to women who are net-savvy.

Even after you have taken the insurance policy or invested in a mutual fund scheme, your relationship with the investment consultant continues. You may need feedback on your investment, account statement, premium cheques to be submitted to the life insurance company, follow-up on dividends on your mutual fund investments and the like. It is the responsibility of the mutual fund agent to provide prompt after-sales service and resolve these issues efficiently.

Step 3: Preparing an investment plan

Once you have identified the investment consultant, you must get down to actually implementing the investment plan keeping in mind the investment objectives.

For this you need to bare your 'financial' soul and tell him exactly what you want to achieve, the time frame over which you want to achieve the investment objective, the amount of money you want to invest in equities (this is important because equities can give a push to your savings, but also carry higher risk).

If you find this a little too detailed and even unnecessary, remember it's important for the consultant to know this so that he can prepare a well-defined investment plan. It's a bit like telling your doctor everything so that he can prescribe the right medicine.

Step 4: Executing the investing plan

After preparing the investment plan, your investment consultant will help you execute it. This involves, for instance, taking the child insurance plan for your child's education/marriage, or the diversified equity fund to build a corpus to buy property after 10 years.

All the investments and insurance options that have been outlined in your investment plan have to be bought. Of course your consultant will help you with it, but it pays to be personally involved up to a level.

For instance, to the extent possible fill the application forms yourself so you learn about the relevant details. While filling the insurance application form, you have to give a true and fair picture of your medical history, accurate information on your weight and height and other details of this nature.

Giving inaccurate information on these points could lead to rejection of claim at a later date. Your investment consultant is unlikely to know these details better than you, so personal involvement is necessary. Likewise, appointing a nominee is common across mutual funds and life insurance, so ensure you have those details correctly filled in.

Step 5: Review the investment plan

Setting the investment plan in action is an important step towards achieving your financial goals. But to ensure you stay the course, a regular review of the investment plan is necessary. Of course, this will also be done under the guidance of your investment consultant.

There could be several reasons why your investment plan may need to be adjusted from time to time. One instance is when stock markets change course over a period of time and they disturb your asset allocation. So you may have to redeem some of your equity investments or buy more of them depending on how much risk you are willing to take.

As you approach the milestone (child's medical admission or marriage), you need to get out of equity investments since equities are risky in the short-term.

That money should be invested into short-term debt, which is relatively safe. Again, all this may sound very complicated, but your investment consultant is the one who will keep his eye on such events and will make necessary adjustments to your investment plan. On your part it helps to be informed since it's your money on the line.

Step 6: Redeem your investments

As the event you have been saving for, is upon you, you need to redeem your investments. With a mutual fund investment this involves signing on the redemption slip and having your consultant submit the same to the mutual fund. In case of a life insurance policy that you have taken, it involves having your consultant submit the policy documents to the life insurer and follow up for the maturity proceeds.

Then you will need to sit down with your consultant and understand the taxation issues involved with the redemption of your investments.

As you can see, setting financial goals, outlining an investment plan, executing it, reviewing it, is not really a difficult task. It may be time consuming but it's certainly not difficult. With a systematic and disciplined approach to investing and by identifying the right investment consultant, financial nirvana could be closer than you think.

 

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Sensational Sensex..!

Sensational Sensex..!

Indian markets achieved yet another milestone, and hit a new high. The 30-share index took just 5 days to reach 17,000 from 16,000. Lets take a glance with a time span on the same..!

Following is the timeline on the rise and rise of the Sensex through Indian stock market history.

1000, July 25, 1990

On July 25, 1990, the Sensex touched the magical four-digit figure for the first time and closed at 1,001 in the wake of a good monsoon and excellent corporate results.

2000, January 15, 1992

On January 15, 1992, the Sensex crossed the 2,000-mark and closed at 2,020 followed by the liberal economic policy initiatives undertaken by the then finance minister and current Prime Minister Dr Manmohan Singh.

3000, February 29, 1992

On February 29, 1992, the Sensex surged past the 3000 mark in the wake of the market-friendly Budget announced by the then Finance Minister, Dr Manmohan Singh.

4000, March 30, 1992

On March 30, 1992, the Sensex crossed the 4,000-mark and closed at 4,091 on the expectations of a liberal export-import policy. It was then that the Harshad Mehta scam hit the markets and Sensex witnessed unabated selling.

5000, October 8, 1999

On October 8, 1999, the Sensex crossed the 5,000-mark as the BJP-led coalition won the majority in the 13th Lok Sabha election.

6000, February 11, 2000

On February 11, 2000, the infotech boom helped the Sensex to cross the 6,000-mark and hit and all time high of 6,006.

7000, June 20, 2005

On June 20, 2005, the news of the settlement between the Ambani brothers boosted investor sentiments and the scrips of RIL [Get Quote] [Get Quote], Reliance Energy [Get Quote], Reliance Capital [Get Quote] [Get Quote] and IPCL [Get Quote] [Get Quote] made huge gains. This helped the Sensex crossed 7,000 points for the first time.

8000, September 8, 2005

On September 8, 2005, the Bombay Stock Exchange's benchmark 30-share index -- the Sensex -- crossed the 8000 level following brisk buying by foreign and domestic funds in early trading.

9000, November 28, 2005

The Sensex on November 28, 2005 crossed the magical figure of 9000 to touch 9000.32 points during mid-session at the Bombay Stock Exchange on the back of frantic buying spree by foreign institutional investors and well supported by local operators as well as retail investors.

10,000, February 6, 2006

The Sensex on February 6, 2006 touched 10,003 points during mid-session. The Sensex finally closed above the 10K-mark on February 7, 2006.

11,000, March 21, 2006

The Sensex on March 21, 2006 crossed the magical figure of 11,000 and touched a life-time peak of 11,001 points during mid-session at the Bombay Stock Exchange for the first time. However, it was on March 27, 2006 that the Sensex first closed at over 11,000 points.

12,000, April 20, 2006

The Sensex on April 20, 2006 crossed the 12,000-mark and closed at a peak of 12,040 points for the first time.

13,000, October 30, 2006

The Sensex on October 30, 2006 crossed the magical figure of 13,000 and closed at 13,024.26 points, up 117.45 points or 0.9%. It took 135 days for the Sensex to move from 12,000 to 13,000 and 123 days to move from 12,500 to 13,000.

14,000, December 5, 2006

The Sensex on December 5, 2006 crossed the 14,000-mark to touch 14,028 points. It took 36 days for the Sensex to move from 13,000 to the 14,000 mark.

15,000, July 6, 2007

The Sensex on July 6, 2007 crossed the magical figure of 15,000 to touch 15,005 points in afternoon trade. It took seven months for the Sensex to move from 14,000 to 15,000 points.

16,000, September 19, 2007

The Sensex scaled yet another milestone during early morning trade on September 19, 2007. Within minutes after trading began, the Sensex crossed 16,000, rising by 450 points from the previous close. The 30-share Bombay Stock Exchange's sensitive index took 53 days to reach 16,000 from 15,000. Nifty also touched a new high at 4659, up 113 points.

The Sensex finally ended with its biggest-ever single day gain of 654 points at 16,323. The NSE Nifty gained 186 points to close at 4,732.

17,000, September 26, 2007

The Sensex scaled yet another height during early morning trade on September 26, 2007. Within minutes after trading began, the Sensex crossed 17,000.

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Mutual Fund - Portfolio of Sundaram BNP Paribas SMILE Fund

Portfolio of Sundaram BNP Paribas SMILE Fund as on 31st March 2008
Total Assets : Rs.203.71 Crores

No	Name of the company	Sector	P/E Ratio	% of total Assets
1	Aban Loyd Chiles Offshore Ltd	Diversify-Med/Sm	0	2.52
2	Alphageo (India) Ltd	Oil Drill/Allied	0	0.63
3	Alsthom Projects India Ltd	Electric Equip	0	0.17
4	Amara Raja Batteries Ltd	Electric Equip	0	1.99
5	Ashok Leyland Ltd	Auto-LCVs/HCVs	0	1.17
6	Asian Paints (India) Ltd	Paints/Varnish	0	2.01
7	Atlas Copco (India) Ltd	Compres/Dril Eqp	0	1.88
8	Balrampur Chini Mills Ltd	Sugar	0	1.75
9	Bharat Earth Movers Ltd	Engineering	0	0.97
10	Bharat Forge Ltd	Casting &Forging	0	0.79
11	Bharati Shipyard	Shipping	0	1.34
12	Britannia Industries Ltd	Food-Proc-MNC	0	1.31
13	Cairn India Ltd	Oil Drill/Allied	0	1.21
14	Canara Bank	Banks-Pub Sector	0	1.44
15	Century Textiles & Industries Ltd	Diversify-Mega	0	1.43
16	Chennai Petroleum Corporation Ltd	Refineries	0	1.03
17	Colgate-Palmolive (India) Ltd	PersonalCare-MNC	0	1.03
18	Corporation Bank	Banks-Pub Sector	0	1.52
19	Crompton Greaves Ltd	Electric Equip	0	1.03
20	Cummins India Ltd	Engines	0	1.03
21	Debt	DEBT	0	22.04
22	Dishman Pharmaceuticals & Chemicals Ltd	Pharm-Ind-B Drug	0	0.88
23	Divis Laboratories Ltd	Pharm-Ind-B Drug	0	2.06
24	Essar Oil Ltd	Refineries	0	1
25	Glenmark Pharmaceuticals Ltd	Pharm-Ind-BD&For	0	1.9
26	Great Eastern Shipping Company Ltd	Shipping	0	0.56
27	Greenply Industries Ltd	Miscellaneous	0	2.43
28	Gujarat Mineral Development Corporation Ltd	Mining/Miner/Met	0	0.99
29	Gujarat NRE Coke Ltd	Miscellaneous	0	1.02
30	Heritage Foods (India) Ltd	Food-Proc-Indian	0	0.15
31	Hindustan Dorr-Oliver Ltd	Engg-Tunkey Serv	0	1.06
32	Hindustan Petroleum Corporation Ltd	Refineries	0	0.72
33	IDBI Bank Ltd	Banks-Pvt Sector	0	1.49
34	India Cements Ltd	Cement-South Ind	0	0.46
35	Indian Bank	Banks-Pub Sector	0	1.83
36	Indian Hotels Co Ltd	Hotels	0	2.27
37	Indian Overseas Bank	Banks-Pub Sector	0	1.99
38	Indo Tech Transformers Ltd	Electric Equip Transformer	0	0.9
39	Infrastructure Development Finance Company Ltd	Finance	0	1.48
40	IVRCL Infrastructures & Projects Ltd	Construction	0	1.79
41	Jubliant Organosys Ltd	Petrochemicals	0	1.61
42	Kirloskar Brothers Ltd	Pumps	0	0.52
43	Mercator Lines Ltd	Shipping	0	0.82
44	MPhasis Limited	Computer-SW-Larg	0	0.99
45	Nava Bharat Ventures Ltd	Diversify-Med/Sm	0	1.18
46	Nestle India Ltd	Food-Proc-MNC	0	0.47
47	Oriental Bank of Commerce	Banks-Pub Sector	0	1
48	Pantaloon Retail (India) Ltd	Textiles Products	0	0.94
49	Patni Computer Systems Ltd	Computer-SW-M/S	0	0.98
50	Petronet LNG Ltd	Miscellaneous	0	0.87
51	Procter & Gamble Hygiene and Health Care Ltd	PersonalCare-MNC	0	0.49
52	Punj Lloyd Ltd	Construction	0	1.68
53	Punjab National Bank	Banks-Pub Sector	0	1.25
54	Rashtriya Chemicals & Fertilizers Ltd	Fertilizers	0	0.8
55	Reliance Industries Ltd	Diversify-Mega	0	3
56	Sesa Goa Ltd	Mining/Miner/Met	0	1.08
57	Siemens Ltd	Electronic-Comp.	0	0.97
58	Tata Chemicals Ltd	Chlor Alk/SodaAs	0	1.38
59	Texmaco Ltd	Engineering	0	0.01
60	UN LISTED	Un Listed Scripts	0	0.12
61	Union Bank Of India	Banks-Pub Sector	0	2
62	United Phosphorus Ltd	Chemicals	0	0.91
63	Welspun Gujarat Stahl Rohren Ltd	Steel -Med/Small	0	3.67
Total:				100

 

 

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