10-Year G-Sec Benchmark Yield

The 10-year benchmark yield was at 8.56% on 26th August—almost flat over a fortnight. The...

Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital+Print Access

Subscribe

Moneylife Magazine Subscriber or MSSN member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
Nifty heading towards 8,100 – Monday closing report
 As long as Nifty stays above 7,985, the index is headed towards 8,100
 
 We had mentioned in Thursday closing report that the Nifty may continue to head higher subject to it has to maintain itself above the level of 7,900. Today the index opened above Thursday’s close and moved in a narrow range throughout the session.
 
Sensex opened at 26,733 while Nifty opened at 7,990. Sensex moved from  26,732 to 26,900 and closed at 26,868 (up 229 points or0.86%) while Nifty moved up from 7,984 to 8,035 and closed at 8,028 (up 73 points or 0.92%). Today for the second consecutive session Sensex hit a new life time high. NSE recorded a volume of 80.72 crore shares. India VIX rose 3.54% to close at 13.5300.
 
Except for FMCG (0.70%), all the other indices on the NSE closed in the green. The top five gainers were Nifty Midcap 50 (2.98%), Metal (2.88%), Realty (2.70%), Infra (2.61%) and CPSE (2.57%).
 
Of the 50 stocks on the Nifty, 42 ended in the green. The top five gainers were Hero MotoCorp (6.46%), Jindal Steel (6.39%), Maruti (5.14%), IndusInd Bank (4.88%) and Tata Power (4.45%). The top five losers were Sun Pharma (1.56%), ITC (1.45%), HDFC (1.42%), Bhel (1.00%) and Tata Motors (0.83%).
 
Of the 1,627 companies on the NSE, 1,104 companies closed in the positive, 466 companies closed in the negative while 57 companies closed flat.
 
The Gross Domestic Product (GDP) grew at its fastet rate in two-and-half years clocking 5.7% growth in June 2014 of the fiscal year ending 31 March 2015 (FY2015). Growth over corresponding quarter last year was 4.7% according to The Central Statistical Office, which released quarterly estimates of India's GDP on Friday.
 
HSBC Manufacturing PMI for August 2014 was due today (1 September 2014).
 
Seasonally adjusted HSBC India Purchasing Managers' Index (PMI) dipped slightly from July's 17-month high of 53 to 52.4 in August. The latest PMI data highlighted a tenth consecutive monthly improvement in operating conditions in August.
 
Prime Minister Narendra Modi started his five-day trip to Japan on Saturday. He said Japan will invest $33.5 billion in infra projects over a period of five years to build smart cities and infra projects. It will also provide technical and financial support for bullet trains in India. India will also create a 'fast-track channel' for Indo-Japan ties.
 
Ashok Leyland (6.02%), hit its 52-week high today, was among the top six gainers in the ‘A’ group on the BSE. Ashok Leyland's total sales for August 2014 rose by 17% to 8,331 units over the month of August 2013. The sales of medium and heavy commercial vehicles went up by 18% to 5,830 units, while sales of light commercial vehicles rose by 14% to 2,501 units for the relevant period.
 
Bhushan Steel continued to be among the leading losers in the ‘A’ group on the BSE. Today again it hit a new 52-week low. GlaxoSmithKline Consumer Healthcare (1.73%), today hit its 52-week high, but ended among the top four losers in the ‘A’ group on the BSE. Maruti Suzuki (4.71%), which hit its 52-week high today, was among the top two gainers in the Sensex 30 pack. It reported 26.9% increase in its total sales in August at 110,776 units as against 87,323 units in the same month of the previous year. Except for the mid-size segment (SX4 model), the company’s sales recorded growth in all the other segments. Hero MotoCorp (5.79%) too hit its 52-week high today, and was the top gainer in the pack.
 
Sun Pharma (1.46%) was at the bottom among Sensex 30 stocks today. It received directions from CCI to publish the details of the proposed combination (Sun Pharma- Ranbaxy deal) within 10 working days from August 27, 2014.
 
US markets closed in the positive on Friday. It will remain closed today for Labour Day. Asian indices showed mixed performance, Shanghai Composite (0.83%) was the top gainer while KLSE Composite (0.51%) was the top loser.
 
China's official manufacturing PMI for August, reported today, was 51.1, compared with July's 51.7. Growth in China's large factory sector. It slipped to a three-month low in August as foreign and domestic demand cooled, a private survey showed on Monday. The final HSBC/Markit Purchasing Managers' Index (PMI) retreated to 50.2 in August, roughly in line with a preliminary reading of 50.3 and only a shade above the 50-point mark that demarcates an expansion in activity from a contraction.
 
European indices were showing mixed trading. Data released today showed that Germany's exports 0.9% in the second quarter from the first three months of the year. Imports jumped 1.6%.

User

Mutual funds bought Rs5,847 crore of stocks in August 2014, highest in over eight years
Despite the record inflows, mutual funds have recorded net outflow of Rs3,650 crore of stocks over the past year, while FIIs have bought Rs1.32 lakh crore of equities over the same period
 
Mutual funds in August 2014 bought Rs5,847 crore of equities, the highest in the past eight years, according to data from Securities and Exchange Board of India. The previous highest buying was reported in May 2006, when mutual funds bought Rs7,573 crore of stocks. Despite this record purchase in August, mutual funds have been net sellers over the past year. Over the past year, when Indian equity markets have gone up by nearly 40%, mutual funds have sold Rs3,650 crore of equities thanks to redemptions by investors, while foreign institutional investors (FIIs) have put in Rs1.32 lakh crore. In eight of the past 12 months, mutual funds have been net sellers. On the other hand, FIIs have been net sellers in just one month over the same period. While the investment by mutual funds for the month, is the highest in the past year, FIIs, have invested a comparatively lower amount of Rs6,940 crore in August, compared to Rs22,352 crore invested in March 2014.
 
Mutual fund investments, MF Inflows, FII investment, FII inflowsMutual fund investment in equities is linked to the purchases and redemptions by investors. Inflows from investors have gained momentum in the past few months. According to AMFI (Association of Mutual Fund in India) data, investors have put in Rs20,120 crore in the past three months ended 31 July 2014. As seen in the past, investors usually come in when the market has staged a strong rally and is beginning to get overvalued. Here again, the situation seems to be repeated. In order to meet the investment objective of the scheme, mutual fund managers would need to buy or sell stocks irrespective of the market valuation.
 
Investors poured in Rs10,945 crore in equity schemes during July 2014, the highest net inflow in six and a half years. This has been the highest inflow since January 2008, when investors brought in a record high of Rs13,678 crore in equity schemes. This positive sentiment towards this risky asset class has been seen ever since the Narendra Modi-led government came into power with the promise of achche din, in May 2014. While the quantum of investments by FIIs has been declining, they have invested Rs46,799 crore over the past four months beginning May 2014. Mutual funds have been reporting higher inflows in each consecutive month over the same period.

User

COMMENTS

Anil Agashe

2 years ago

Best wishes to all those who have entered at this level!

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)