Nifty Climbs for 7th Time in Liquidity, Oil Cheer
Headline barometer Sensex posted its most stretched out winning streak since July on Wednesday on RBIs decision which wanted to infuse more liquidity in addition to the softness that has happened in the oil prices.
Furthermore, both Sensex and Nifty rose for the seventh successive day.
RBIs announcement of purchases of OMO worth Rs 50,000 crore, rising structure of the currency and a subsequent dip in the existing oil prices dug the pitch for the same. Investors are hopeful the policy measures will ease liquidity woes and stimulate the economy.
7 January 2019
Nifty Concludes December Series at Less Than 10,800
The equity benchmarks successfully concluded the session recently on a highly positive note but way off the high points. The Nifty further concluded its December series not more than 10,800.
During the close of the market hours, the Sensex went up by 157.34 points or 0.44% at 35807.28, while the Nifty was further higher by 49.90 points or else 0.47% at 10779.80. The market breadth further became narrow as the advancement of 1313 shares happened against a steady decline of 1233 shares, while the remaining 181 shares remain unchanged.
7 January 2019
Latest stock update - PSU Bank shares trading high while Bank of India rose 1%
On Monday 31 December 2018 at around 10:19 am the shares of PSU Bank were trading higher with Nifty PSU Bank index up by 0.30% at 3089.15. The highest gainers in the index so far are the shares of Bank of India (up by 1.02%), Oriental Bank (up by 0.63%), Vijaya Bank (up by 0.50%), and State Bank of India (up by 0.44%). Apart from this, the Indian Bank (up by 0.37%), Central Bank of India (up by 0.42%), and the Bank of Baroda (up by 0.21%) are also trading in green. Till this update, while the BSE Sensex was up by 1010 points at 36,177.72, the Benchmark NSE Nifty50 index was up by 37.60 points at 10,897.5. Out of the fifty stocks in the Nifty index, 41 stocks are trading in positive and 9 stocks were trading in red. The highest traded stocks on the NSE today includes SAIL, YES Bank, Bank of Baroda, Ashok Leyland, Tata Steel, Vodafone Idea, BEL, SBI, Tata Motors, Vedanta, Hindalco Industries, and Indiabulls Housing Finance.
31 December 2018
15 Years is All it Takes to Turn Rs.786 per day into Rs.1 crore
You need plenty of financial discipline and commitment to save money. If you wish to be a crorepati on nothing but your income, these two factors are crucial to ensuring just that. A number of financial instruments are available to help you increase your wealth. The amount you can accumulate will depend on the amount you save on a daily basis. If you invest Rs.786 per day in mutual funds through systematic investment plans, in a matter of 15 years, you will be able to accumulate Rs.1 crore. For instance, if you are currently 30 years old, then putting aside Rs.786 on a daily basis will see you get Rs.1 crore by the time you turn 45. Mutual fund SIPs are a conservative method of investment which allows your capital to grow over the long term. Choosing this style of investment will advocate the allocation of a good amount of funds to fixed income stocks, with the remaining money being put into aggressive or growth stocks.
20 December 2018
SEBI Expected to Permit Custodial Services in the Commodity Derivatives Market
The popular markets regulator, SEBI is planning to allow and permit custodial services in the commodity derivatives market in order to enable and facilitate institutional participation. The proposal underwent a serious discussion recently, at the Securities and Exchange Board of Indias (SEBI) board meeting.
What the proposal originally states is that the existing custodians will henceforth be allowed to add the commodities as an asset class and offer physical delivery of both commodities and securities, the officials of SEBI added further. According to the currently operating norms, regulation on custodian of securities essentially provide for gold and other valuable or gold-related safekeeping or the multiple title deeds of the real estate and services incidental, however, they do not provide for the safekeeping of goods and services which are fundamentally are underlying assets of commodity derivatives.
To facilitate the participation and involvement of institutional investors in commodity derivatives market, it has been proposed that necessary amendments need to be made in the custodian regulations in order to offer for the requisite custodial services. Furthermore, the proposal also includes that all responsibility of custodians shall not be limited to securities holding but shall also include holding of goods.
13 December 2018
Investors oversubscribed CPSE ETF anchor portion 5.57 times
Reliance Central Public Sector Enterprises - Exchange Traded Fund has become a big attraction for the investors with its anchor portion oversubscribed 5.57 times. As a matter of fact, Rs.2,400 crore of subscription was received against the book size of Rs.2400 crore. Out of the total subscription done by mutual fund companies, insurance, and retirement funds, and foreign portfolio investors (FPI), 65% subscription came from FPIs only. As a matter of fact, CPSE ETF which functions like a mutual fund scheme is a government instrument used to divest its stake in CPSEs without striking the secondary market. Among its anchor investors, some of the big names include Societe Generale, Bank of America Merrill Lynch, Morgan Stanley, Nomura, ICICI Prudential Mutual Fund, LIC, and SBI Mutual Fund. The government was also planning to exercise a greenshoe option accounting to Rs.4,000 to 6,000 crore in CPSE ETF FF03 over the base issue size of Rs.8,000 crore. According to the data, out of Rs.80,000 crore target from divestment in FY2018-19, the Centre has gained just Rs.15,247.
7 December 2018
Indian Firms Bought Shortest-Term Debts Possible Fearing Credit Risk
Due to their concerns regarding credit risk, the more and more corporate treasury departments in the country are deciding to park their cash in securities that mature overnight. According to the data revealed by Morningstar Investment Adviser India Pvt., the assets under overnight funds has skyrocketed to amount to Rs.123 billion in October 2018, as opposed to the previous Rs.39 billion in September 2018.
This is due to the reason that many companies have chosen to play it safe rather than take a risk owing to the rare debt. In light of this high demand for overnight funds, 5 firms including Reliance Nippon Life Asset Management Ltd. have decided to introduce new offerings. As per the Director Manager of Research at Morningstar, Kaustubh Belapurkar, the IL&FS crisis has caused the institutional investors to become wary about the safety of the portfolios of liquid and ultra-short duration funds.
Overnight funds might become even more popular if the regulator make the rules for money market funds even more strict. In September 2018, the money market funds suffered the worst outflows since April 2007 owing to the repayment defaults by the IL&FS Group. According to the Head of Fixed Income at SBI Funds Management, Rajeev Radhakrishnan, the implementation of other investment products such as directing liquid funds to mark to market the value of more bonds might be able to sustain the rising demand since overnight plans don’t face interest rate or credit risks.
6 December 2018
Mutual Funds extend loans to listed entities against shares in promoter firms
Mutual funds such as Reliance Mutual Fund, Aditya Birla Sun Life, and Franklin India have decided to extend loans against shares to promoter firms of Dewan Housing Finance Corp. Ltd. (DHFL), Bajaj Corp Ltd., and Piramal Enterprises Ltd.
The head of fixed income and alternatives of Quantum Advisors, Mr. Arvind Chari said that the loan against securities or promoters funding has recently become an investment product for mutual funds. He added that the promoter’s share which is held in a private firm is used as collateral to raise funds. A spokesperson for Franklin India said that the firm does not comment on any specific security.
5 December 2018
BSE 500 has 77 companies with a default chance of 0.52%
The BSE 500 companies that have exceeded the threshold of debt-default probability has trebled since the start of 2018. Among the 77 companies that have more than 0.52% default risk probability are Bombay Dyeing, Srei Infrastructure, Indiabulls Housing Finance, Indiabulls Real Estate, Dewan Housing, Vodafone Idea, Jet Airways, and Reliance Capital. Their stocks have also fallen by 49% on an average. This was compared to 5% drop in the BSE 500 Index. These 77 companies account for 4.5% of the total market with Rs.6.75 lakh crore capitalization in total. More than 45 companies belong to the non-banking and non-finance sectors. There are more than 35 companies with Rs.5000 crore or more of capitalization.
4 December 2018
Mutual Fund Firms Lending to DHFL Promoters Like YES Bank
The mutual fund organisations have been taking the route of risk by funding the promoter of YES Bank, Rana Kapoor against his personal holdings, without having the same pledged. This strategy is now being implemented by many other mutual fund orgnaisations as well.
Wadhawan Global Capital is the holding firm for DHFL (Dewan Housing Finance Limited) and it has been successfully able to raise Rs.2,125 crore by means of zero-coupon non-convertible debentures (ZCNCD) maturing in 2019, 2020 and 2021. This is a kind of a backdoor method that some of the promoters like to leverage in order to acquire loans against their shares without having to pledge them formally.
3 December 2018
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