Companies & Sectors
L&T Construction gets Rs1,523 crore contracts in June

The company's buildings and factories segment secured orders worth Rs546 crore, while its infrastructure segment bagged orders worth Rs225 crore for the railway construction works

 

Mumbai: Engineering major Larsen & Toubro's construction arm on Wednesday said it has received new orders worth Rs1,523 crore in June from various segments, including additional works on ongoing projects, reports PTI.

The company's buildings and factories segment secured orders worth Rs546 crore, while its infrastructure segment bagged orders worth Rs225 crore for the railway construction works consisting of doubling of tracks between Hospet and Harlapur section on Hubli division of South Western Railway, L&T Construction said in a statement.

The water and effluent treatment business has been awarded a turnkey project worth Rs134 crore from the Jharkhand government for operation and maintenance of water supply system at Sahibganj under the National Rural Drinking Water Programme, it added.

The company's solar and power transmission segments have secured orders worth Rs125 crore and Rs195 crore, respectively, it said.

Besides, its minerals and metals won awards worth Rs298 crore.

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Kotak Life appoints Sunil Sharma as 'Appointed Actuary'

The insurance company, a JV between Indian Kotak Mahindra Bank and South African Old Mutual, appointed Sunil Sharma as Appointed Actuary

 

Mumbai: Kotak Mahindra Old Mutual Life Insurance (Kotak Life Insurance) on Wednesday said it has appointed Sunil Sharma as Appointed Actuary with effect from 1st July, reports PTI.

Sharma has more than 21 years of experience in Life Insurance and Reinsurance practice areas in India, the US, UK and South East Asia, having worked with companies like Swiss Re, GE Financial Assurance and leading life insurers in the country, the private insurer said in a release.

Kotak Mahindra Old Mutual Life Insurance is a 74:26 joint venture between Kotak Mahindra Bank, its affiliates and Old Mutual plc, that originated in South Africa.

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Mutual fund AUM up for the first time in four quarters

According to AMFI data, money market funds were the key contributors to the AUM rise of 4% to Rs6.92 lakh crore during the June quarter

 

The Indian mutual fund industry recorded growth in quarterly average assets under management (AUM) for the first time in the past four quarters with debt-oriented fund emerging as the key contributor.

During the April-June quarter, AUM rose by 4% or Rs27,400 crore to Rs6.92 lakh crore, from Rs6.65 lakh crore in the previous quarter (excluding domestic fund of funds or FoFs) as per the latest numbers announced by the Association of Mutual Funds in India (AMFI).

Mutual fund quarterly average AUM trend Source: AMFI, CRISIL

Assets of money market funds or liquid funds grew by Rs16,900 crore, ultra short-term debt funds by Rs6,900 crore, fixed maturity plans (FMPs) by Rs2,900 crore and other debt-oriented funds by Rs5,800 crore over the past quarter. Equity funds witnessed a decline of Rs5,300 crore in AUM owing to weak sentiments prevailing in the asset class in the quarter gone by, a note by ratings agency CRISIL said.

According the CRISIL note, about two-thirds (29 out of 44 fund houses) of the mutual fund industry registered a rise in average AUM in the June quarter. Birla Sun Life Mutual Fund reported the highest rise in absolute terms. Its average AUM rose by Rs6,100 crore or 10% to Rs67,200 crore in the June quarter. SBI Mutual Fund followed with its average AUM up 12% to Rs47,200 crore. Among AUM losers, Fidelity Mutual Fund reported the highest fall in absolute terms of Rs1,300 crore or 15% in its average AUM to Rs7,400 crore.

Category-wise Average AUM (Rs billion)

Money market funds are key contributors to the AUM rise

Debt-oriented funds, especially money market funds, were the key contributors to the AUM rise. These funds saw the highest gain in assets across categories, up 11.5% (or Rs16,900 crore) to Rs1.64 lakh crore in the June quarter, forming 24% of the industry assets.

“This is the first quarter of gain in assets for money market funds in four quarters and could have been prompted by slight easing in liquidity pressures in the domestic financial system," said CRISIL.

Liquidity in the banking system has eased due to proactive measures by the Reserve Bank of India (RBI) to cut interest rates in its annual policy review in April and due to gilt purchases from the open market. The RBI in its annual policy cut its key interest rate, the repo, by 50 bps to 8%, the first cut by the central bank in around three years.

FMPs continued to find favour among investors, with their average assets steadily increasing in the past eight quarters. In the latest quarter, category assets rose by 2.3% or Rs2,900 crore to Rs1.28 lakh crore, i.e. 18% of industry assets. High interest rates in the economy over the past two years have benefitted FMPs as investors are able to lock into higher yields.

Equity mutual funds’ AUM fell 2.6% in the quarter
Average AUM of equity-oriented mutual funds fell by 2.6% or Rs5,300 crore to Rs1.99 lakh crore primarily due to weak sentiments prevailing in the asset class in the quarter gone by. Domestic equity markets, represented by the S&P CNX Nifty, fell 0.3% in the quarter amid downbeat domestic and global cues.  

Gold ETFs’ average AUM crossed Rs10,000 crore mark
Gold exchange traded funds’ (ETFs) AUM rose 5.8% or Rs600 crore to Rs10,100 crore during the quarter ended June 2012 on the back of inflows and rise in gold prices, which rose by 4.5% in the quarter as per the CRISIL Gold Index.

HDFC Mutual Fund retains its top position
   Top 10 AMCs by average AUM (Rs billion) Source: AMFI, CRISIL

HDFC Mutual Fund maintained its top position by asset size at Rs92,600 crore in the June quarter with its assets rising 3.1% or Rs2,700 crore. Reliance Mutual Fund maintained second position with assets of Rs80,700 crore (up 3.3% or Rs2,600 crore), while ICICI Prudential Mutual Fund was third with Rs73,000 crore assets (up 6.3% or Rs4,300 crore).

The share of the top five mutual funds’ average assets stood at 54% in the June quarter while the share of the top 10 funds was 78%. The bottom 10 fund houses continued to occupy less than 1% of the average AUM.
 

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