Stocks
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.

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COMMENTS

Anil Agashe

3 years ago

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

Govt. tells SC to hold back cancellation of 40 coal blocks
The AG made it clear that the government was open to re-auctioning all coal blocks
 
According to a Reuters report, The Attorney General (AG) proposed to the Supreme Court on Monday that about 40 of the 218 coal mines it declared illegal should not be taken back from the companies that operate them as they were either producing or were close to producing.
 
AG Mukul Rohatgi also reportedly told the SC that referring the matter to a committee will further delay the re-auction of coal blocks. The AG made it clear that the government was open to re-auctioning the coal blocks if their licenses were revoked.
 
In its order last week, the SC had declared that “all allocations were done in an illegal manner and it suffers from the vice of arbitrariness.” The SC was referring to allocations made between 1993 and 2011. 
 
The SC has asked the government, association of power producers and holders of the blocks to file affidavits in the SC. It has posted the next hearing in the matter to 9th September.

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COMMENTS

Madhur Aggarwal

3 years ago

The government's awards of the blocks to steel, cement and power companies has been at the centre of the scandal dubbed "Coalgate" since 2012 when a Comptroller and Auditor General (CAG) report in 2012 said the under-priced sales had cost the exchequer up to 1.86 lakh crores.

The licenses were issued without a transparent bidding process by government committees.

Madhur Aggarwal

3 years ago

Govt is on wrong foot.
National interest is sacrificed here.

Lack of swift justice has made everything possible.
But this is hard to swallow.

In Animals kingdom
Might is right .
Herd fled when Lion attacks one of them
There is nothing more suitable in this case to cancel these license and give them to professionally competent companies with track record,
100 days over- No penny of Black money recovered .

United Bank of India declares Vijay Mallya as wilful defaulter
The Grievance Redressal Committee (GRC) of the bank has declared directors Ravi Nedungadi, Anil Kumar Ganguly and Subash Gupte as wilful defaulters
 
State-run United Bank of India became the first lender to declare debt-ridden Kingfisher Airlines and its promoter Vijay Mallya as wilful defaulters.
 
“We have declared Vijay Mallya and three other directors of Kingfisher Airlines as wilful defaulters,” United Bank of India Executive Director Deepak Narang said.
 
The Grievance Redressal Committee (GRC) of the bank has declared directors Ravi Nedungadi, Anil Kumar Ganguly and Subash Gupte as wilful defaulters.
 
Post this declaration, these persons and the entity would not be able to borrow from the bank in future. They would also lose Director-level positions in companies. Criminal proceeding could also be initiated against these persons if warranted.
 
Mr Narang said the decision of GRC would be conveyed to the Finance Ministry, Reserve Bank of India, and Securities and Exchange Board of India for their information and action.
 
The GRC meeting was convened today after a Calcutta High Court division bench allowed the bank to initiate the process of declaring them as wilful defaulters last week.
 
The GRC had asked directors to be present before it but no one turned up. Instead, they had sent a letter through their lawyer stating that they had filed a Public Interest Litigation (PIL) in Supreme Court and pending the judgement the bank should not proceed in this regard.
 
The Kolkata-based bank is the first PSU lender to initiate the process of declaring Vijay Mallya and three other directors of the grounded Kingfisher Airlines as wilful defaulters a couple of months ago.
 
Subsequently, other banks such as State Bank of India, IDBI Bank and Punjab National Bank have also initiated the process of declaring KFA and its directors as wilful defaulters.
 
The bank’s exposure to Kingfisher Airlines was around Rs350 crore as part of consortium led by State Bank of India.

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