During 3rd to 28th October, overseas investors have purchased stocks and debt securities worth a gross amount of Rs58,483.40 crore and sold securities valued Rs57,470 crore. This translated into a net inflow of Rs1,014.30 crore, according to the data available with SEBI
Mumbai: After pulling out in the last two months, foreign funds have turned bullish and infused over Rs1,000 crore in the Indian markets in October, reports PTI.
During 3rd to 28th October, overseas investors have purchased stocks and debt securities worth a gross amount of Rs58,483.40 crore and sold securities valued Rs57,470 crore.
This translated into a net inflow of Rs1,014.30 crore, according to the data available with the Securities and Exchange Board of India (SEBI).
“In October, the Indian market has seen an upward movement, so foreign institutional investors (FIIs) invested in the market. In the last two months, overseas investors were pouring money in gold,” Geojit BNP Paribas research head Alex Mathew said.
He added, “Over the coming months, FIIs will continue to infuse capital in the BRIC countries.”
Meanwhile, the 30-share Sensex rose by 1,351.04 points, or 8% in October. In the last trading session, the BSE finished at 17,804.80, up 515.97 points from its previous close—the biggest one-day gain since 29th August, when it had soared by 567.50 points.
In August and September, FIIs witnessed an outflow. In August, foreign funds pulled out nearly Rs8,000 crore, or $1.8 billion, from the Indian stock and debt markets—the highest monthly withdrawal since October, 2008. Last month, they withdrew Rs1,866 crore.
Market analysts believe heavy selling by FIIs was triggered by the ongoing debt crisis in the Eurozone and a weakness in the US economy.
In October, FIIs were bullish on the debt market and poured in Rs1,697.30 crore, while they pulled out Rs683 crore from the equity market in the same period.
So far this year, FIIs have pumped in Rs18,679 crore into stock and bond markets, compared to about Rs1,79,674 crore in the whole of 2010.
The number of FIIs registered with SEBI stood at 1,749 as of October this year, while the number of sub-FIIs was 6,058 during the month.
The capital market watchdog is of the view that a turmoil in the global financial markets in recent years and emergence of a number of new market segments have brought to fore newer challenges and the need for a stronger regulatory mechanism
New Delhi: With an aim to strengthen its market oversight and policymaking capabilities in the wake of fast-changing market dynamics, the Securities and Exchange Board of India (SEBI) has begun the process of an overhaul of its own functions and organisational structure, reports PTI.
The capital market watchdog is of the view that a turmoil in the global financial markets in recent years and emergence of a number of new market segments have brought to fore newer challenges and the need for a stronger regulatory mechanism.
The proposed move comes after a leadership change in SEBI in February, followed by changes in various board-level and executive director positions, and restructuring of a number of its advisory committees in the recent past.
A proposal has been already discussed by the SEBI board to revisit various structural and organizational issues, re-prioritize areas of its focus and look at its technological and manpower needs.
To start with, the regulator has decided to strengthen its research and economic policy teams with the appointment of a chief economist. This would be followed by SEBI engaging an external consultant to recommend changes in its roles, functions, vision and organisational structure.
Subsequently, SEBI aims to set up an international advisory board to guide it while framing policies to meet the challenges emerging from various global market developments.
After the external advisor makes recommendations on changes in SEBI’s organisational structure, human resources, technology and its regulatory and oversight roles, those would be taken up with the central government agencies for further implementation, an official said.
The areas where SEBI is looking up for major changes include use of latest available technologies, incentives to attract and retain talent and acquiring expertise for dealing with complexities associated with various market segments.
SEBI last went through an organisational restructuring in 2003 and the market has gone through a sea change since then.
The proposed international advisory board could meet twice a year to assess the trends in global markets and to guide the activities towards meeting the emerging challenges.
Besides, SEBI also plans to organise brain storming sessions with international and domestic experts, including its own past chairmen.
Of late, global developments have become key to movements in domestic market and SEBI feels that it has become important to keep a track of global developments and trends.
SEBI has told its board that the events related to the recent global financial crisis have highlighted the need for continuous assessment of various developments and an immediate regulatory response.
“This has not been a good quarter for Maruti. The market has been declining largely because of high interest rates and fuel prices. The result of all these is the increase in cost of ownership in cars, which has mainly hurt marginal customers, who buy mainly M800 or Alto,” MSI chairman RC Bhargava
New Delhi: Maruti Suzuki India (MSI) on Saturday posted a 59.81% fall in its net profit at Rs240.44 crore for the quarter ended 30th September, mainly due to production loss at Manesar because of labour unrest and foreign exchange loss, reports PTI.
The company’s board, meanwhile, has approved purchase of land in Gujarat, measuring up to up 1,500 acres to set up manufacturing plants in the state.
It had posted a net profit of Rs598.24 crore in the same period last year, MSI said in a statement.
The rate of decline in profit is the biggest since the third quarter of 2008-09 when the company had reported a similar drop.
The total income from operations during the quarter under review also declined by 14.38% to Rs7,831.62 crore, from Rs9,147.27 crore in the year-ago period.
Vehicle sales dipped by 19.56% to 2,52,307 units from 3,13,654 units in the same period last year, MSI said.
“The company lost 28,539 units during the quarter due to instances of industrial unrest at its Manesar facilities,” MSI said, adding in value terms it is over Rs850 crore.
The bottomline was also impacted due to sluggish market conditions and adverse foreign exchange rates.
“This has not been a good quarter for Maruti. The market has been declining largely because of high interest rates and fuel prices. The result of all these is the increase in cost of ownership in cars, which has mainly hurt marginal customers, who buy mainly M800 or Alto,” MSI chairman RC Bhargava told reporters here.
The company has seen the biggest drop in sales in its best selling model Alto. During the quarter, Alto sales dipped by about 20% to an average of around 22,000 units a month from about 27,000 units in the year-ago period.
MSI managing director and CEO S Nakanishi said the fall in the Q2 net profit is the steepest since the third quarter in 2008-09 financial year.
He said during the quarter, the yen appreciated by about 20% that has impacted the bottomline of the company.
MSI chief financial officer Ajay Seth said the company suffered an impact of about Rs100 crore due to forex loss.
In the July-September period, the company’s expenses in raw consumption decreased by 18.58% to Rs5,649.65 crore from Rs6,938.88 crore in the same period last year as MSI produced lesser volume of cars due to labour unrest at its Manesar facility.
The total expenditure also went down during the second quarter by 9.76% to Rs7,603.80 crore, from Rs8,426.20 crore in the year-ago period, MSI said.
This year, MSI witnessed three instances of labour unrest at its Manesar plant, which mainly produces the Swift.
In June, a 13-day strike brought production to a standstill. It was followed by another standoff between the management and the workers on 29th August and lasted for 33 days.
This month, the company again saw its workers going on a 14-day strike that ended last week after the signing of a tripartite agreement between the management, workers and Haryana government representatives.
Mr Bhargava said the total production loss due to labour problems since June stands at about 83,000 units.