Posts Tagged ‘Sebi regulations’

Foreign Investors Poured $9 Billion in Indian Stock Market :)

Foreign_Investment


Foreign investors have poured Rs 43,837 crore (USD 9.05 billion) into the country’s stock markets so far this year, reflecting confidence of foreign funds in the Indian equity markets.

🙂

At the close on Wednesday, overseas investors were gross buyer of shares worth 4,17,121 crore and gross sellers of stocks valued at Rs 3,73,283 crore, resulting in a net flow of Rs 43,837 crore into the stock markets so far this year.

This latest data has been announced by the market regulator Securities and Exchange Board of India (SEBI).

🙂

Significantly, the Bombay Stock Exchange benchmark Sensex has gained nearly 73 per cent so far this year.

🙂

The National Stock Exchange barometer Nifty – composed of 50 shares — has also advanced fairly and for the first time in more than a year it touched 5,000 level on Thursday.

(Read more about that on previous blog).

Global fund houses have made a total net investment of Rs 3,564 crore so far in September, according to the SEBI data.

🙂

After pulling out a huge sum of Rs 52,986 crore (USD 11.9 billion) from the local stock markets, foreign investors are now moving their money towards emerging economies like India.

🙂

However in debt market segment, overseas investors have not turned net investor so far this year.

FIIs were net sellers of debt instruments worth Rs 527 crore (USD 49 million) in 2009 so far according to the latest data received from the market regulatory body,SEBI.

🙂

Nifty Hit the Level of 5,000 :)

nifty-climb-5000k

Nifty hit the significant level of 5,000, first time since May 23, 2008, taking 326 trading sessions while, the standard index prepared early gains to close flat after hitting 5,003 at its day’s high.

🙂

However, nifty closed slightly higher at 4,965, up 7 points whereas another standard Sensex also ended flat at 16,711, up 34 points, off its day’s high of 16,820 while both the indices were lower by over 4.4% decline in heavyweight RIL.

😦

Moreover, RIL stated that it has raised around Rs 3,188 crore through sale of 1.50 crore equity shares of the company and selling pressure in RIL weighed down on the oil & gas index, down 2.8%.

Additionally, the BSE realty index slid 0.9%, Unitech lost 3% and Phoenix Mills declined 2.4% while IT and auto stocks increased.

🙂

Similarly, the BSE IT index gained 1.9%, Patni Computer and HCL Tech rose over 6% while the auto index on the BSE was also up 1.5% and Amtek Auto increased 14.6%.

On the other hand, in the Sensex pack, ACC emerged as the biggest gainer while the stock advanced 3.6% to Rs 827 however, Hindalco, JP Associates, Bharti Airtel and Maruti Suzuki gained over 3% each.

🙂

Further, RIL was declared the top loser in the group followed by Tata Steel and ITC.

😦

A correction is expected and likely to take place in markets at current levels. But it is unlikely to be a sharp one.

🙂

European and Asian stock markets extended the week’s rally on Thursday, hitting new highs for the year, as investors became increasingly confident that the U.S. economy , the world’s largest , is growing again.

🙂

Note : For More latest Industry,Stock Market and Economy News Updates, Click Here

480 Funds Make it to the Sensex-Beater List :)

Sensex beater Funds

The net asset value (NAV) appreciation of nearly 480 funds or nearly one out of every two funds has bettered the sensex returns of 9% in the past year.

🙂

Around 100 funds have at least doubled the 30-share index’s gains.

🙂

Some like IDFC Small & Midcap Equity (43%), Tata Life Sciences & Tech (40%), UTI Transportation and Logistics (38%), Canara Robeco Equity Tax Saver (36%), Birla Sun Life Dividend Yield Plus (36%), ICICI Prudential Gilt Investment PF (35%) and Reliance NRI Equity (34%) returned eye-popping 3 times sensex’s returns.

🙂

Overall, there are at least 23 funds which more than tripled the benchmark’s gains in the period starting August 31’08 and ending this August 30.

🙂

Mutual funds have always showed the ability to beat popular benchmarks.

While investors remain cautious, especially after Sebi regulations on loads, the fact remains that most funds have good track records.

The industry have delivered always alpha (a measurement of risk-adjusted performance) as per the industry experts.

🙂

Interestingly, many funds which sported NAVs of less than Rs 10 have proved to be real gems and may have helped SIP users.

🙂

Take, for instance, Religare Contra fund.

The market rally has helped the same fund’s NAV to almost touch Rs 13 per unit, gaining 32.52% in 12 months.

Other funds which have outperformed sensex include Taurus Infrastructure (29%), Mirae Asset India Opportunities (25%), AIG World Gold (20%), HSBC Tax Saver Equity (20%) and Morgan Stanley ACE fund (19%).

🙂

Numerous exchange traded funds (ETFs), which track a specific index or commodity, find their place in the market beater list with those tracking gold like Gold Benchmark ETF (27%) or banks such as Kotak PSU Bank ETF (32%) doing exceedingly well.

🙂

Monthly income plans, best suited for getting specified monthly payment to investors like senior citizens and retired persons, also make it to the sensex-beater list.

🙂

Funds like Reliance MIP (28%), HDFC MIP Long-term (22%), Principal MIP Plus (14%), Templeton MIP-G (12%) and LIC Floater MIP (10%) are some examples.

🙂

The net asset value (NAV) appreciation of nearly 480 funds or nearly one out of every two funds has bettered the sensex returns of 9% in the past year. Around 100 funds have at least doubled the 30-share index’s gains. Some like IDFC Small & Midcap Equity (43%), Tata Life Sciences & Tech (40%), UTI Transportation and Logistics (38%), Canara Robeco Equity Tax Saver (36%), Birla Sun Life Dividend Yield Plus (36%), ICICI Prudential Gilt Investment PF (35%) and Reliance NRI Equity (34%) returned eye-popping 3 times sensex’s returns. Overall, there are at least 23 funds which more than tripled the benchmark’s gains in the period starting August 31’08 and ending this August 30.

“Mutual funds have always showed the ability to beat popular benchmarks. While investors remain cautious, especially after Sebi regulations on loads, the fact remains that most funds have good track records. We (the industry) have delivered always alpha (a measurement of risk-adjusted performance),’’ said the CEO of a top mutual fund. Interestingly, many funds which sported NAVs of less than Rs 10 have proved to be real gems and may have helped SIP users. Take, for instance, Religare Contra fund which had an NAV of Rs 9.78 on August 30, 2008. The market rally has helped the same fund’s NAV to almost touch Rs 13 per unit, gaining 32.52% in 12 months. Other ‘beaten-down’ funds which have outperformed sensex include Taurus Infrastructure (29%), Mirae Asset India Opportunities (25%), AIG World Gold (20%), HSBC Tax Saver Equity (20%) and Morgan Stanley ACE fund (19%).

“Many themes may not have done well in the past few months. Take for example international funds. While performance is one of the metrics, it’s important for the investor to allocate some portion of their MF assets to them. They might do well when global economies rise,’’ S Naren, CIO of ICICI Prudential AMC, said in a recent interview.

Numerous exchange traded funds (ETFs), which track a specific index or commodity, find their place in the marketbeater list with those tracking gold like Gold Benchmark ETF (27%) or banks such as Kotak PSU Bank ETF (32%) doing exceedingly well. Monthly income plans, best suited for getting specified monthly payment to investors like senior citizens and retired persons, also make it to the sensex-beater list. Funds like Reliance MIP (28%), HDFC MIP Long-term (22%), Principal MIP Plus (14%), Templeton MIP-G (12%) and LIC Floater MIP (10%) are some examples.

Sebi steps in to protect minority shareholders

In a market where there are few cases of stocks with differential voting rights (DVRs), last week’s change to the Equity Listing Agreement, at first glance, seems to protect the interests of minority shareholders.

Sebi’s step is ostensibly to prevent situations wherein companies come out with follow-on-issues, rights issues or preferential allotments with higher voting rights per share, helping promoters get greater control in the company.

Though a rarity in India, there are many examples abroad such as the Ford family, which controls 40 per cent of shareholder votes with only about 4 per cent of the equity in Ford Motors.

The dual-class stock structure has worked for many including Warren Buffett, a majority shareholder of Berkshire Hathaway, which offers Class-B shares with 1/200th of the voting rights of a Class A share.

Google, at the time of going public, reserved Class-B shares with 10 votes a share for insiders and sold Class-A shares with one vote to the public, helping retain control with select shareholders.

It’s not that the amendment by the Sebi last Wednesday sealed such a possibility in India as the US stock exchanges, the NYSE or the Nasdaq, too, do not allow it.

The New York Stock Exchange allows companies to list dual-class voting shares, but once listed, firms cannot reduce the voting rights of the existing shares or issue a new class of superior voting shares.

So, a second look at Sebi’s amendment shows something else.

“More than preventing issue of fresh shares with superior rights, the amendment is about allowing firms to come out with shares with inferior rights,” said SMC Capitals equity head Jagannadham Thunuguntla.

Though shares with differential voting rights is not new in India (Tata Motors and Pantaloon issued shares with DVRs last year), lack of awareness has kept trading in DVR shares insignificant, he said.

According to Sebi regulations, firms can come up with fresh issues that offer inferior rights in terms of voting or dividend, thereby helping raise equity without resorting to debt and giving up control.

Securities and Exchange Board of India’s (Sebi) amendment of regulations to prohibit companies from issuing fresh shares with superior rights vis a vis the rights of existing shareholders seems to have been taken in the light of experiences abroad.