Edelweiss MF launches 'Edelweiss Select Midcap Fund'

The scheme seeks to invest 80% to 100% of the net assets in equity and equity related securities of companies ranked between 101 to 300

Edelweiss Mutual Fund has launched Edelweiss Select Midcap Fund, an open-ended equity scheme, with an objective to generate long term capital appreciation from a portfolio predominantly comprising of equity and equity related securities of mid cap companies.

"The quant model of the fund will help to capture the market trend by analyzing the factors that are currently driving stock performance. It will also make the fund process oriented, adaptive in nature and will result in consistent performance across time periods," said Vikaas M Sachdeva, chief executive of Edelweiss Asset Management Co, in a release.

The scheme seeks to invest 80% to 100% of the net assets in equity and equity related securities of companies falling in Top 101 to 300 companies by market capitalization listed in India, up to 20% of the net assets in equity and equity related securities of other companies listed in India and up to 20% of the net assets in debt and money market instruments. It will not invest in securitized debt.

The new fund offer (NFO) of the scheme opens on 4th August and will close on 18th August. The minimum application amount is Rs5,000. Investors will have the choice of two options growth and dividend. Further, the dividend option offers dividend reinvestment, payout and sweep facilities.


Share prices may eke out a small gain: Wednesday Closing Report

Look for a resistance of 5,500 on the Nifty

The fall in the indices which began on 1st July 2011 may take a pause for now with the easing of debt issues in the US, which also helped stock futures trade higher today. The Nifty which hit a 27-day intra-day low today may see a small rally up to the 5,500 level.

Extending its fall for the second day on global concerns, the market opened lower this morning. The Nifty resumed trade at 5,402, down 55 points from its previous close, and the Sensex opened at 17,970, down 140 points, well below the 18,000 mark for the first time in 28 days. Realty, capital goods, auto and banking stocks were under pressure in early trade.

The indices traded sideways till noon after which the market fell to its intra-day low. At the day’s lows the Nifty was at 5,379, below the psychological 5,400 level for the first time in 27 days, while the Sensex dipped to 17,860.

Weaker-than-expected results from realty major DLF and telecom giant Bharti Airtel added to the woes.

Buying in select stocks in the post-noon session resulted in a marginal recovery, and helped the indices to the day’s highs. At the intra-day high, the Nifty was at 5,423 and the Sensex touched 18,006. But selling pressure resulted in the market coming off the highs and the indices moved sideways in subsequent trade.

The market closed down for the second day in a row with the Nifty settling at 5,405, down 52 points, and the Sensex at 17,941, a loss of 169 points.

The advance-decline ratio on the National Stock Exchange (NSE) was 608:1108.

The broader indices also ended lower, but did better than the benchmark. The BSE Mid-cap index fell by 0.33% and the BSE Small-cap index declined by 0.66%.

The BSE Metal index (up 0.30%) and BSE Fast Moving Consumer Goods index (up 0.26%) were the only gainers in the sectoral segment. The top losers were BSE Capital Goods (down 2.65%), BSE Auto (down 1.45%), BSE Healthcare (down 1.02%), BSE IT (down 1%) and BSE Consumer Durables (down 0.93%).

Reliance Infrastructure (up 2.76%), ITC (up 0.90%), Tata Power (up 0.71%), Hindalco Industries (up 0.52%) and ONGC (up 0.45%) were the major gainers on the Sensex. The losers were led by Larsen & Toubro (down 4.33%), Tata Motors (down 3%), DLF (down 2.15%), Bajaj Auto (down 2.03%) and Jindal Steel (down 2.01%).

The top performers on the Nifty were SAIL (up 3.18%), Reliance Infra (up 2.50%), Sesa Goa (up 2.25%), BPCL (up 1.76%) and Tata Power (up 1.14%). The draggers were L&T (down 4.23%), Tata Power (down 2.95%), Axis Bank (down 2.87%), Bajaj Auto (down 1.94%) and DLF (down 1.89%).

Gold hit a new all-time high on Wednesday, rising by Rs640 to Rs24,330 per 10 grams on heavy buying by stockists and driven by a rally in the overseas market. Silver also rose on industrial demand and increased by Rs1,500 to Rs60,100 per kg.

Markets in Asia were also lower for a second consecutive day with the easing of US debt concerns that brought some economic problems to the forefront. Data released on Tuesday which showed a fall in US consumer spending and decline in factory output across the world, signals a slowdown in the world economy.

Recovering from its early losses, the Shanghai Composite shed 0.03%, the Hang Seng plunged 1.91%, the Jakarta Composite declined 0.99%, the KLSE Composite fell 0.63%, the Nikkei 225 tumbled 2.11%, the Straits Times tanked 1.47%, the Seoul Composite dived 2.59% and the Taiwan Weighted slipped 1.49%.

Back home, foreign institutional investors were net sellers of stocks worth Rs201.68 crore on Tuesday. On the other hand, domestic institutional investors were net buyers of equities worth Rs139.88 crore.

As a direct fall-out of the iron ore mining scam in Karnataka, JSW Steel today said it has closed down two blast furnaces of about 2.3 million tonnes steel production capacity at its Vijayanagar plant in Bellary district due to the unavailability of iron ore. JSW Steel, whose iron ore requirement stands at about 60,000 tonnes per day, sources about half of its requirement from the Bellary-Hospet region and has about two-three days stock left. The share price closed 5.50% higher at Rs709.70 on the NSE.

Venus Remedies has received its first patent from the US PTO for its novel research product, Vancoplus. With the grant of this patent, which is valid up to December 2027, the company is set to tap the US market. The stock fell 2.14% at Rs241.90 on the NSE.

Housing Development Finance Corporation, India’s leading mortgage lender, has hiked its retail prime lending rate on housing loans by 50 basis points (bps). The new rates are effective from 1st August. The hike in retail lending rate reflects tight monetary conditions and is in line with the recent increase in key interest rates by the Reserve Bank of India (RBI). The scrip fell by 0.66% to close at Rs680.50 on the NSE.


Is De Nora share buyback proposal another manipulation episode?

The Goa-based manufacturer of electrolytic products has put off a share buyback plan without giving any reason, two weeks after making the announcement which saw the stock price shoot up by over 28%. Now, it has lost 18%

Company promoters are using a well-proven method to manipulate the price of their stocks and the inaction of the market regulator in these instances indicates that it does not have a problem with such manipulation.

The method is simple: Just make a positive announcement, whether it be about the issue of bonus shares, a proposal to buy back shares, or simply timing the announcement of good results. The stock price rises, the manipulators register good gains, then step back from the announcement.

A recent example is the announcement by Goa-based De Nora India that it would consider a share buy-back.

On 13 July 2011, the company stated in a filing to the Bombay Stock Exchange (BSE) that it would consider a share buyback plan at its board meeting. "A meeting of the board of directors of the company will be held on 27 July 2011, inter alia, to consider and take on record the unaudited financial results for the quarter ended 30 June 2011 and to consider a buyback of equity shares in accordance with SEBI regulations and subject to regulatory authorities."

Reacting to the news, the company's stock, which was languishing for about eight weeks, jumped by 5% to close at Rs89.35 on the day of the announcement. Then onwards, it continued to rise till 26 July 2011, when it closed at Rs104.50, a 17% gain in two weeks. The stock hit an intra-day high of Rs112 on 25th July.

Then, on 27th July, the company said it had decided to defer the buyback plan without giving any reason. The stock dropped 7% to close at Rs97.05. The company informed the BSE that the "board of directors of the company at its meeting held on 27 July 2011, inter alia, has decided to defer the proposal for buying back its own shares by the company."

Market observers point out that these moves are executed smartly. While the company announced its results at about 1.45pm, the information about deferring the share buyback was available only at about 3.30pm, around the time the stock market closes. Investors are asking why the company had to announce the proposal to buy back shares in the first place, if it was unsure about going through with it.

"It has now become a good stock manipulation exercise to call a board meeting on a share split, bonus issue, or buyback and then simply say that the board has deferred it. It is high time that the Securities and Exchange Board of India acts to stop such manipulation," complained one retail investor, who has invested in De Nora India.

A message from Moneylife to the company by email a week ago, has not received any response yet.



Borkar MR

6 years ago

A few Qs.A) How much cash is avlbl?(B) How much promoters hold? (C) what qty they sold? (D) Was a white knight spotted?

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