Mutual Funds News 22 feb 2008

Mutual Funds News 22 feb 2008

ICICI MF declares dividend

ICICI Mutual Fund has announced 27 February 2008 as the record date for declaration of dividend under dividend option of ICICI Prudential Monthly Income Plan Quarterly and Half Yearly Frequencies and ICICI Prudential Gilt Fund- Treasury Plan-Quarterly Frequency.

The quantum of dividend is as follows:

Scheme name	Amount of dividend per unit (Rs)	Rate of dividend	NAV as on 20 February 2008 (Per unit)	Face value
ICICI Prudential Monthly Income Plan Quarterly Frequency	Re. 0.25	2.50%	Rs 12.1520	Rs 10
ICICI Prudential Monthly Income Plan Half Yearly Frequency	Re. 0.50	5%	Rs 12.1651
ICICI Prudential Gilt Fund- Treasury Plan-Quarterly Frequency	Re. 0.15	1.50%	Rs 10.8581

ICICI Prudential Monthly Income Plan Quarterly and Half Yearly Frequencies is an open-ended scheme. The investment objective of the scheme is to seek to generate regular income through investment in fixed income securities.

ICICI Prudential Gilt Fund- Treasury Plan-Quarterly Frequency is also an open-ended short-term gilt fund, with an investment objective of generating regular income through investment made in gilts.

Principal PNB MF declares dividend

The Principle PNB mutual fund has announced the declaration of dividend under dividend option of Principle Personal Tax Saver Fund. The record date for dividend will be 26 February 2008.

The quantum of dividend is 200% i.e. Rs. 20 per unit on the face value of Rs. 10. The NAV of the scheme was recorded at Rs 170.44 as on 20 February 2008.

Principle Personal Tax Saver Fund is an open-ended equity linked savings scheme, whose investment objective is to provide long-term growth of capital. It aims to achieve a return on assets in excess of the performance of BSE 100 Index.

Principal PNB MF unveils FMP Series

Principal PNB MF has announced the launch of Principal Pnb Fixed Maturity Plan 460 Days - Series IV and it is a close-ended scheme. The primary objective of the scheme is to build an income-oriented portfolio and provide returns along with regular liquidity to investors. The fund will invest up to 0%-100% in debt securities (including securitized debt) and money market instruments. It will have investment of 0-100% in government securities. Investment in securitised debt may be up to 100% of the net assets of the scheme.

Reliance MF files an offer document with SEBI

Reliance MF plans to launch Reliance Fixed Horizon Fund - IX and it is a close-ended income scheme. The scheme offers 12 Series with different maturity. The offers under Series 1 to 4 having 15 to 18 months duration, Series 5 to 8 having 18 months 1 day to 21 months and Series 9 to 12 with maturity period 21 months 1 day to 25 months.

The primary investment objective of the scheme is to seek to generate regular returns and growth of capital by investing in a diversified portfolio of central and state government securities and other fixed income/ debt securities normally maturing in line with the time profile of the series with the objective of limiting interest rate volatility. The scheme will invest 0-70% in money market instruments. The scheme will invest 30-100% in government securities issued by central and/or state government & other fixed income/ debt securities including but not limited to corporate bonds and securitised debt. Debt securities will also include securitized debt, which may go up to 100% of the portfolio. The average maturity of the securities will be in line with the maturity profile of the scheme.

JM Financial ML MF declares dividend

The JM Financial ML Financial mutual fund has announced the declaration of dividend under dividend option of the regular and institutional plan of JM ML Fixed Maturity Fund -Series VI- Quarterly Plan 5. The record date for dividend will be 25 February 2008. The AMC plans to distribute realized appreciation in the NAV of the plan / option from 27 December 2007 till the record date as dividend. The NAV of the scheme was recorded at Rs 10.1238 under regular plan and Rs 10.1314 under institutional plan as on 19 February 2008. JM ML Fixed Maturity Plan -Series VI- Quarterly Plan 5 is a close-ended income scheme, whose primary investment objective is to seek to generate regular returns through investment in fixed income securities normally maturing in line with the time profile of the respective plan.

Fund houses woo Aussies to put money in Indian market

Global funds are tapping the large Australian retail investor base to invest in the Indian stock market, which has grown 40%-plus annually in the last three years.

Two funds one from Kotak Mahindra Bank and another from Fidelity have already tapped Australian retail investors. Now, according to Rashmi Hansi Mehrotra, the principal business leader for investment consulting at Mercer, adviser to the worlds largest funds, a third fund will soon tap the Australian retail market for investing in the booming Indian equity markets.

Kotak Mahindra collected $69 million last year through India Equity Fund, which rose by 45% in value $100 million as of December 2007.

The other fund that collected money from Australian retail investors is Fidelitys Fiducian India Fund. There is a big retail investor market waiting to be tapped.

Australia is the fourth largest retail market with 25 million people. The rule that 9% of salaries of Australian investors should be locked in superannuation schemes till 65 years forces them to invest in attractive markets like India.

Fidelitys Fiducian India Fund is a blended portfolio of stocks selected by two Indian fund managers, State Bank of India Funds Management and Sundaram BNP Paribas Asset Management. SBIFM focuses on large-cap stocks, while Sundaram focuses on mid-cap stocks.

Indian stock markets have all kinds of investors, including offshore hedge funds, endowment funds and pension funds.

Wall Street banks such as Citigroup, Merrill Lynch, Fidelity, Goldman Sachs, Morgan Stanley, among others, raise funds for India from their overseas clients. They are also managing funds of their Indian clients through the private banking business.

Birla Sun Life MF declares dividend

The Birla Sun Life mutual fund has announced the declaration of dividend under dividend option of Birla Sun Life Interval Income Fund- Quarterly Plan-Series I for its both retail and institutional plan. The AMC plans to distribute 100% of distributable surplus as on record date on the face value of Rs. 10. The record date for dividend is set as 26 February 2008.

The NAV of the scheme was recorded at Rs 10.2060 under retail plan and Rs 10.2085 under institutional plan as on 20 February 2008.

Birla Sun Life Interval Income Fund- Quarterly Plan-Series I is an interval income scheme with an objective to generate regular income through investments in debt and money market instruments. It may not charge an entry. The scheme may charge 0.50% an exit load for redemption before date of maturity.

ING MF declares dividend

ING India Mutual Fund has announced 27 February 2008 as the record date for declaration of dividend under dividend option of ING Fixed Maturity Fund-Series XXX. The AMC plans to distribute entire appreciation in the NAV of dividend option from the date of allotment to 27 February 2008 as dividend. The NAV under retail plan is Rs 10.1549 as on 20 February 2008.

ING Fixed Maturity Fund-Series XXX is a close-ended scheme offering an investment plan of 92 days maturity, investing in a portfolio of government securities, or highly rated corporate bonds maturing close to the maturity of the scheme so as to generate returns comparable with alternative fixed income instruments of similar maturity.

Principal Pnb MF extends NFO period for FMP

Principal Pnb mutual fund has extended the new fund-offering (NFO) period of Principal Pnb Fixed Maturity Plan 460 Days - Series IV from 21 February 2008 to 4 March 2008.

Principal Pnb Fixed Maturity Plan 460 Days - Series IV is a close-ended scheme. The NFO price for the fund is Rs 10 per unit. The minimum investment amount under regular plan is Rs 1000 and any amount thereafter. Under institutional plan, the minimum investment amount is Rs 50 lakh and any amount thereafter.

The primary objective of the scheme is to build an income-oriented portfolio and provide returns along with regular liquidity to investors.

No entry load will be charged during the new fund offer of the scheme. The scheme may levy 1% an exit load on redemption of investment from the date allotment to 400 days. The scheme may not charge an exit load for redemption from 401st day to maturity.

Satyam Computer Services loses by 2.44%

Share prices of Satyam Computer Services went down by 2.44% to Rs. 447.00 reported at BSE at 10.54 a.m. on 22 February 2008 against previous day close of Rs 458.20.

Declining share prices may have negative impact on NAV of mutual fund schemes, which holds their stake in the company. Franklin India Taxshield 99 is likely to lose as it has the highest percentage hold of the stocks of the company compared to its peer groups who have invested in the stocks of the company. Franklin India Taxshield 99 has 14.17% of its total portfolio size invested in the stocks of the company as on 31 January 2008. The scheme holds 16280 units of the company in January 2008 compared to its peer groups who have invested in the stocks of the company.

Other schemes, which may affect includes Franklin Infotech Fund - (G) with 3.47 lakh units (10.66% of its portfolio), UTI-Software Fund (D) with holding of 2.00 lakh units (10.27%) as on 31 January 2008.

Mirae Asset MF appoints new CFO

Mirae Asset mutual fund has appointed Mr. Wan Youn Cho as the Chief Financial Officer with effect from 14 February 2008. Mr. Wan Youn Cho has 12 years of work experience in the field of financial services. He is responsible for the overall financial functions of the Company. Prior to this assignment, Mr Cho was Head of Trustee Division with Mirae Asset Securities Company. He has also been associated with organizations like Samsung Securities Company, Seoul and Boram Bank.

He has done Business administration from Seoul.

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Markets on 22nd Feb 2008

Markets on 22^nd Feb 2008

Markets end in red on the back of weak global cues

The markets opened in the negative on the back of weak global cues and remained in a range for the rest of the session. They finally closed near the lows of the day. While the Sensex was down 385.61 points or 2.17% at 17,349.07, the Nifty lost 81.05 points or 1.56% to close at 5110.75. Broadmarket indices also fell but to a smaller extent as the BSE Midcap and Smallcap indices lost 0.97% and 1.01% respectively. The market breadth was negative as A/D ratio was 1:2 on the BSE. NSE cash turnover was Rs.10201.49 cr vs. Rs. 12193.69cr yesterday.

Sectorally, barring the BSE Consumer Durables and Healthcare indices that ended flat, all the other BSE Indices ended lower. The biggest losers were the BSE IT and Bankex which lost 3.06% and 3.14% respectively. Gainers from the index pivotals were Cipla, Hindalco and Maruti Suzuki. Major losers were Bajaj Auto, HDFC Bank, Satyam Comp, ICICI Bank and Infosys.

With the Nifty closing near the 5100 support levels which also correspond to the 200 day EMA, Monday’s trading session would be crucial. A close below these important supports could lead to a sharp fall and a testing of the 5000 and 4800 supports. We continue with our go slow approach on fresh long positions.

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Indian Markets - A Smart recovery

Indian Markets  -  A Smart recovery

The markets opened in the positive on the back of strong global cues and then started to slip into negative territory post lunch. However, they soon staged a smart recovery in the last hour of trade to finally close with healthy gains. While the Sensex was up 117.08 points or 0.66% at 17,734.68, the Nifty gained 37.35 points or 0.72% to close at 5191.80. Broadmarket indices performed in line with the frontline indices as the BSE Midcap and Smallcap indices gained 1.05% and 0.64% respectively. The market breadth was positive as A/D ratio was 1.2:1 on the BSE. NSE cash turnover was Rs.12193.69cr vs. Rs. 12184.21cr yesterday.

Sectorally, barring the BSE Bankex and Capital Goods, all the BSE Indices ended higher. The BSE IT and Metals surged 4.77% and 3.83% respectively. Top Gainers amongst the index pivotals included Satyam Comp, Hindalco, Wipro, Tata Steel and Infosys. Losers were HDFC, ICICI Bank, BHEL, SBI and Grasim Inds.

While the main indices continue to remain rangebound a lot of stock specific action is being seen. We nevertheless continue with our go slow approach on fresh long positions due to continued global uncertainties and the fact that the main indices in India are yet to enter into a confirmed uptrend.

Source- Capital Markets

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Markets on 19th Feb 2008

Markets on 19^th Feb 2008

Markets end on a flat note for the second consecutive session The markets opened in the positive and traded at higher levels until noon.

Thereafter, they witnessed selling pressure and marginally dipped in the red. They finally closed on a flat note. While the Sensex was up 27 points or 0.15% at 18,075.66, the Nifty gained 3.9 points or 0.07% to close at 5280.80. Broad market indices outperformed the frontline indices as the BSE Midcap and Smallcap indices were up 0.57% and 0.41% respectively. Market breadth was positive, as A/D ratio was 1.2:1 on the BSE.

Sectorally, it was a mixed bag. While the top gainers were the BSE Consumer Durables, Auto and Healthcare indices, the top losers were BSE Realty and Power. Gainers from the index pivotals include Bajaj Auto, Ranbaxy Labs, ACC and TCS. Losers were Rel Energy, Hindalco, DLF and ITC.

With the main indices continuing to trade in a narrow range for the second consecutive session, markets seem to lack direction for the moment. We recommend a go slow approach on fresh long positions.

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Markets on 19th Feb 2008

Markets on 19^th Feb 2008

Markets end on a flat note for the second consecutive session The markets opened in the positive and traded at higher levels until noon.

Thereafter, they witnessed selling pressure and marginally dipped in the red. They finally closed on a flat note. While the Sensex was up 27 points or 0.15% at 18,075.66, the Nifty gained 3.9 points or 0.07% to close at 5280.80. Broad market indices outperformed the frontline indices as the BSE Midcap and Smallcap indices were up 0.57% and 0.41% respectively. Market breadth was positive, as A/D ratio was 1.2:1 on the BSE.

Sectorally, it was a mixed bag. While the top gainers were the BSE Consumer Durables, Auto and Healthcare indices, the top losers were BSE Realty and Power. Gainers from the index pivotals include Bajaj Auto, Ranbaxy Labs, ACC and TCS. Losers were Rel Energy, Hindalco, DLF and ITC.

With the main indices continuing to trade in a narrow range for the second consecutive session, markets seem to lack direction for the moment. We recommend a go slow approach on fresh long positions.

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Market Round Up - 19th Feb 2008

Market Round Up - 19th Feb 2008

FIIs in buying mode

Foreign institutional investors (FIIs) bought shares worth net Rs 1147.50 crore on Friday, 15 February 2008, compared to their selling of Rs 1183.10 crore on Thursday, 14 February 2008.

FII inflow of Rs 1147.50 crore on 15 February 2008 was a result of gross purchases Rs 3898 crore and gross sales Rs 2750.50 crore. The 30-share BSE Sensex rose 348.62 points or 1.96% at 18,115.25 on that day.

FII outflow in February 2008 totaled Rs 315.40 crore (till 15 February 2008). FII outflow in calendar year 2008 totaled Rs 13,351.10 crore (till 15 February 2008).

There are a total of 1,290 FIIs registered with the Securities & Exchange Board of India (Sebi).

CRISIL net profit rises 291.74% in the December 2007 quarter

Net profit of CRISIL rose 291.74% to Rs 27.50 crore in the quarter ended December 2007 as against Rs 7.02 crore during the previous quarter ended December 2006. Sales rose 102.54% to Rs 84.68 crore in the quarter ended December 2007 as against Rs 41.81 crore during the previous quarter ended December 2006.

For the full year, net profit rose 89.06% to Rs 70.67 crore in the year ended December 2007 as against Rs 37.38 crore during the previous year ended December 2006. Sales rose 73.99% to Rs 255.32 crore in the year ended December 2007 as against Rs 146.74 crore during the previous year ended December 2006.

PM confident of sustaining 9% economic growth

On 15 February 2008, Prime Minister Manmohan Singh while addresing the annual meeting of the Federation of Indian Chambers of Commerce and Industry (Ficci) in New Delhi, expressed confidence on sustaining a 9% annual economic growth despite a possible global slowdown.

The minister also cautioned India must be aware that it cannot be completely insulated from chilly global winds that may blow in its direction.

He further said keeping the lid on inflation rate was a priority for his government, but controlling the price-line did not mean growth would be sacrificed.

Amid fears that a hike in petrol and diesel prices might fuel inflation, he said the government has taken an important policy stand to keep inflation under check and ensure that growth is more inclusive. The minister termed inflation as iniquitous tax explaining that it hurts the poor more than the rich. Therefore, it is essential to ensure that the poor are not adversely affected by high inflation, particularly that of basic items of consumption.

Inflation down 4.07% in the week ended 2 February 2008

Annual inflation, based on the wholesale price index, moved down 4.07% in the week ended 2 February 2008 compared with 4.11% in the week ended 26 January 2008. Inflation was 6.58% in the corresponding week a year ago.

The market estimate stood at 4.16%.

Prices of fruits and vegetables decreased 3% and those of arhar, masur and condiments and spicesn reduced 1% each. Prices of jet fuel also eased in the week.

Inflation figure for the week ended 8 December 2008 was revised upwards to 3.845 as against 3.65% reported earlier.

An eventful week for US Market

Lots of events dominated the US during the week that ended on Friday, 15 February, 2008. But the best part was that indices registered gains for the week after, each shedding more than 4% last week. Market closed higher in the first three days of the week but slipped in the later two.

The Dow Jones Industrial Average gained 166 points for the week. Tech - heavy Nasdaq gained 17 points. S&P 500 added 18.7 points.

On Monday, 11 February, it was reported that effective 19 February, 2008, Bank of America and Chevron will be added to the Dow Jones Industrial Average in place of Altria Group and Honeywell respectively. But on that very day, another Dow component AIG led to Dows downslide.

AIG was a major drag on the market on Monday after the company clarified its prior disclosures regarding CDOs saying that it has yet to determine the decline in value of its portfolio, and is still accumulating market data to update its valuation. The stock slipped by 12% and Dow would have ended the day higher, if not for AIG.

But the biggest news of the week was on Tuesday, 12 February, when it came to light that Warren Buffett's Berkshire Hathaway has made an offer to several flagging bond insurers. Berkshire Hathaway has sent an offer to reinsure the municipal bond holdings of Ambac, MBIA and FGIC. Berkshire offered to take a liability of $800 billion, adding $5 billion of its resources. Berkshire pledged there would be no distribution or management fees taken for 10 years. Dow ended the day higher by more than 100 points. (Full Story)

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Market on 18th Feb 2008

Markets end marginally in red

After opening in the positive, markets witnessed selling pressure and slipped into the red. The markets then traded in red for most part of the day but managed to close off the lows of the day. While the Sensex was down 67.20 points or 0.37% at 18,048.05, the Nifty lost 26.0 points or 0.49% to close at 5276.90. Broadmarket indices outperformed the frontline indices as the BSE Midcap and Smallcap indices were up 0.65% and 1.40% respectively. This explains the positive market breadth as A/D ratio was 2:1 on the BSE. NSE cash turnover was Rs.10,920.95cr Vs. Rs.14,206.78cr on Friday.

Sectorally, it was a mixed bag. While IT, Oil, Metal and Realty were the underperforming sectors, strength was seen in select Banking, Sugar and Fertiliser stocks. Gainers amongst the index pivotals were M&M, ITC, Hindalco, HUL and ICICI Bank. Losers were Satyam Comp, Tata Motors, TCS, DLF and BHEL.

With the main indices yet to confirm that they are in a fresh uptrend and also due to continued global uncertainties, we continue with our strategy of taking a small exposure with respect to fresh positions in order to get your legs into the door. Aggressive positions can be built up once the markets enter a confirmed uptrend.

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Markets on 15th Feb 2008

Markets recover smartly after a weak opening The markets opened lower this morning on the back of negative global cues.

Markets recover smartly after a weak opening The markets opened lower this morning on the back of negative global cues. However, the Indian markets managed to recover from the lows of the day and closed shop with hefty gains. The Indian markets also outperformed most of their Asian peers, which ended lower. While the Sensex was up 348.62 points or 1.96% at 18,115.25, the Nifty gained 100.9 points or 1.94% to close at 5302.9. Broadmarket indices also participated in the recovery as the BSE Midcap and Smallcap indices gained 1.87% and 2.27% respectively. The market breadth was healthy, as A/D ratio was 2.6:1 on the BSE. NSE cash turnover was Rs. 14,206.78cr Vs. Rs.13,545.99cr. yesterday.

All the BSE Sectoral indices ended with gains. The outperformers were the BSE Metal, Oil & Gas, and Realty indices that surged more than 3%. Gainers from the index pivotals included Hindalco, Tata Steel, Bajaj Auto, SBI and Ranbaxy Labs. Losers were Maruti Suzuki, Grasim Inds, TCS and Ambuja Cement.

The markets have now closed with healthy gains for three days in a row. The main indices are also trading above the 200 day EMA and the 13 day short term moving averages, which is a healthy sign. However, as the main indices are yet to confirm that they are in a fresh uptrend and also due to continued global uncertainties, we recommend taking a small exposure with respect to fresh positions in order to get your legs into the door. Aggressive positions can be built up once the markets enter a confirmed uptrend.

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