Friday Closing Report: Trapped in a range of 19,800 and 20,200

Bucking the global trend, the domestic market bounced back after a weak start this morning. The key benchmarks breached their crucial levels of 20,000 and 6,000 once again with the market ending the two-day hiatus and ending in the green once again.

The market opened lower on weak cues from across the globe. The indices soon bounced back in mid-morning trade but a wave of selling resulted in the market paring some of the earlier gains. Sideways movement gave way to an upmove with the Sensex and Nifty breaching their crucial levels of 20,000 and 6,000 amid choppy trade. The benchmarks touched their intraday highs towards the end of the session but ended off those highs.

 Finally, the market ended with a gain of nearly 1%, with the Sensex advancing 184.17 points (0.93%) at 20,045. The index touched a high of 20,071 and a low of 19,833 during the session. The Nifty stood at 6,018, a rise of 58.75 points (0.99%). The index witnessed a high-low of 6,029 and a low of 5,951, respectively.

The overall market breadth was positive. The Sensex ended with 25 stocks in the green versus five declining stocks. The Nifty list had 41 advancing stocks and nine declining stocks. The broader indices ended marginally higher than the benchmarks. The BSE Mid-cap index surged 1.04% and the BSE Small-cap index ended 1.05% higher.

The top Sensex gainers were DLF (up 5.18%), Hindustan Unilever (HUL) (up 3.93%), Hero Honda (up 3.85%), Bharti Airtel (up 3.56%) and Maruti Suzuki (up 1.48%). The losers were Jindal Steel (down 1.19%), Sterlite Industries (down 0.23%) and Tata Motors (down 0.17%).

All sectors ended in the positive terrain today. The top gainers were BSE Realty (up 2.78%), BSE Fast Moving Consumer Goods (FMCG) (up 1.79%) and Consumer Durables (up 1.67%) while BSE Metal (up 0.30%) settled at the lower end of the list.

Markets in Asia ended mixed as a rise in initial jobless claims in the US ignited fresh worries about the pace of the global economic recovery. The Japanese market ended lower as the government refrained from making any commitment on the intervention in the forex market. On the other hand, the Hong Kong market surged as realtors hoped interest rates would remain low for an extended period of time.

The Hang Seng was up 0.33%, Jakarta Composite was up 1.71%, Straits Times was up 0.31% and Seoul Composite was up 0.76%. On the other hand, KLSE Composite was down 0.47%, Nikkei 225 was down 0.99% and Taiwan Weighted tumbled 0.44%. China’s benchmark, Shanghai Composite, will re-open for trade on Monday after a long break.

Coal minister Sriprakash Jaiswal today said there was no proposal for granting concessions to public sector undertakings (PSUs) in the 26% profit sharing scheme, envisaged in the new mining bill being framed, and favoured a level playing field in the sector.

He added that there is no proposal (before the Group of Ministers) to give concessions to the PSUs. Mr Jaiswal's view is in contrast to the steel minister Virbhadra Singh's demand to give "special consideration" for PSUs like SAIL and NMDC in the proposed profit sharing regime.

The US markets closed lower for the second straight day on Thursday. The decline was on account of a rise in initial jobless claims and data pointing a slowdown in economic growth in Europe. Initial jobless claims increased by 12,000 to 465,000 in the week ended 18th September, Labor Department figures showed. Adding to investor woes, European data showed the pace of growth in the euro zone's services and manufacturing sector slowed more than expected. The Dow was down 76.89 points (0.72%) at 10,662. The S&P 500 was down 9.45 points (0.83%) at 1,125. The Nasdaq was down 7.47 points (0.32%) at 2,327.

The Securities and Exchange Board of India (SEBI) today said foreign institutional investors (FIIs) have to, by 1st October, end the practice of investing money collected from a single or few investors in stocks, as a guard against manipulation.

Rejecting the demand from FIIs for extension of the deadline for compliance with the new rules, SEBI chairman C B Bhave said FIIs will have to register afresh under a structure conforming to the new norms.

The new guidelines require that FIIs or each of their sub-accounts must have not less than 20 investors, except for a few entities like pension funds.

Foreign institutional investors were net buyers of Rs534 crore in the equities segment on Thursday. Domestic institutional investors were net sellers of Rs645crore worth of stocks on the same day.

In a surprise development, oil regulator Directorate General of Hydrocarbons (DGH) has disallowed a natural gas discovery that Reliance Industries (RIL) (up 0.40%) made in the Krishna Godavari (KG) basin, saying the Mukesh Ambani-run firm had failed to give prior notice for conducting tests to confirm the find.

Reliance had last month struck gas in the fourth successive well on the block KG-DWN-2003/1 that lies close to its prolific D6 area in the KG basin in the Bay of Bengal.

ICICI Investment Management, a subsidiary of ICICI Bank (up 1.18%), has raised $50 million (about Rs 225 crore) for its Emerging India Fund, a private equity player that is looking at total size of $100 million.

The amount has been raised from domestic investors as part of the fund's first closure, the bank said in a statement. The fund seeks to invest in growth capital of mid market and emerging corporates primarily through equity and equity-linked instruments.

State-owned BHEL (up 0.28%) today said it is in talks with SAIL and Vizag Steel to tie up for manufacturing high grade steel, while Korean steel maker Posco may join the proposed joint venture company as a technology partner.

BHEL's move is aimed at securing supplies of essential raw material like CRGO steel, alloy steels, castings and forgings, etc.

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Personal finance Friday

Birla Sun Life MF launches Birla Sun Life Fixed Term Plan–Series CE; HDFC Mutual Fund unveils HDFC FMP 100D September 2010 (3); Principal MF floats Principal Pnb Fixed Maturity Plan–367 Days–Series I; Reliance MF launches Reliance Arbitrage Advantage Fund; IDBI Federal introduces cover for loans, Loansurance

Birla Sun Life MF launches Birla Sun Life Fixed Term Plan–Series CE

Birla Sun Life Mutual Fund has launched Birla Sun Life Fixed Term Plan–Series CE, a close-ended income scheme. The investment objective of the Scheme is to generate income by investing in fixed income securities maturing on or before the duration of the Scheme. The Scheme will have growth and dividend (payout) option. The Scheme will have duration of 370 days from the date of allotment. The exit load for the Scheme is nil. The exit load for the Scheme is nil. The Scheme opens on 24th September and closes on 27th September. During the new fund offer (NFO), the units will be offered at face value of Rs10 per unit. The minimum investment amount is Rs5,000. The minimum subscription (target) amount under the Scheme is Rs10 crore. CRISIL Short Term Bond Fund Index is the benchmark index.

HDFC Mutual Fund unveils HDFC FMP 100D September 2010 (3)

HDFC Mutual Fund has launched HDFC FMP 100D September 2010 (3), a close-ended income scheme. The investment objective of the Plan under the Scheme is to generate income through investments in debt/money market instruments and government securities maturing on or before the maturity date of the respective Plan. The Plan offers growth and dividend (payout) option. The Plan has a maturity period of 100 days from the date of allotment of the units. The exit load for the Scheme is nil. During the new fund offer (NFO), the units will be offered at face value of Rs10 per unit. The NFO opens on 24th September and closes on 27th September. The minimum investment amount is Rs5,000. The minimum subscription (target) amount is Rs1 crore. CRISIL Liquid Fund Index is the benchmark index.

Principal MF floats Principal Pnb Fixed Maturity Plan–367 Days–Series I

Principal Mutual Fund has launched Principal Pnb Fixed Maturity Plan–367 Days–Series I, a close-ended income scheme. The investment objective of the Scheme is to build an income oriented portfolio and generate returns through investment in debt/money market instruments and government securities. The Scheme has growth and dividend options. During the new fund offer (NFO), the units will be offered at face value of Rs10 per unit. The NFO opened on 22nd September and will close on 27th September. The minimum investment amount is Rs5,000. The exit load for the Scheme is nil. The minimum subscription (target) amount is Rs35 crore. The benchmark index for the Scheme is CRISIL Short Term Bond Fund Index. Shobit Gupta is the fund manager of the Scheme.

Reliance MF launches Reliance Arbitrage Advantage Fund

Reliance Mutual Fund has launched Reliance Arbitrage Advantage Fund, an open ended arbitrage scheme. The investment objective of the Scheme is to generate income by taking advantage of the arbitrage opportunities that potentially exists between cash and derivative market and within the derivative segment along with investments in debt securities and money market instruments. The Scheme has two options — growth and dividend. During the new fund offer (NFO), the units will be offered at face value of Rs10 per unit. The NFO opens on 24th September and closes on 8th October. The minimum investment amount is Rs5,000. The minimum subscription (target) amount is Rs1 crore. An exit load of 1% will be applicable if the units are redeemed on or before the completion of 12 months from the date of allotment of units. CRISIL Liquid Fund Index is the benchmark index.

IDBI Federal introduces cover for loans, Loansurance

IDBI Federal Life Insurance has launched Loansurance Group Life Plan — a group cover for loans. A customer of Loansurance Group Life Plan gets to cover their borrowers, be it a loan taken by individuals or by business, against default in the unfortunate case of death of the person who is responsible for loan repayment. This term assurance plan provides cover to a person directly liable for loan repayment (and the partners, in case of a partnership), as per the benefit schedule. The plan comes with two cover options: Reducing cover — where the insurance cover reduces as per the benefit schedule and Level cover — where the insurance cover remains unchanged throughout the cover term. Loansurance covers home loans, small and medium enterprise (SME) loans, auto loans, education loans, etc.
IDBI Federal Life Insurance is a joint venture of IDBI Bank, Federal Bank and Ageas, a multinational insurance company.

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