Stocks
Nifty, Sensex getting overvalued – Tuesday closing report
Nifty will continue to rally as long as it stays above 7,650
 
We had mentioned in Monday’s closing report that Nifty, Sensex were on a strong uptrend and that Nifty has to stay above 7,600 for the rally to continue. The major indices of the Indian stock markets were range bound in Tuesday’s trading and closed marginally higher than Monday’s close. The trends of the major indices are given in the table below:
 
 
Caution over a potential US rate hike, coupled with negative Chinese indices and profit booking, dragged the Indian equity markets lower on Tuesday’s trading till afternoon. However, the major indices closed in the green on strong buying by institutions towards the close. 
 
In corporate news, Coal India's employee unions have deferred the proposed strike on March 29 after a meeting with the company management, a union leader said on Monday. "We had a fruitful discussion with minister Piyush Goyal on March 14. Today, we have met chairman and management of the company. We have raised several issues including payment of contractor workers and secured signed minutes. In view of the positive approach, we deferred the proposed one day strike on March 29," said Indian National Mine Workers' Federation secretary general S.Q. Zama. "We are more worried about the payment of contractors' workers. The management has assured that action would be taken against the contractors for not making payments," he said. Coal India shares closed at Rs294.50, down 0.77% on the BSE.
 
Reserve Bank of India (RBI) Governor Raghuram Rajan said on Monday that the world needs a new international agreement on the lines of Bretton Woods that created the current multilateral financial system, to prevent central banks from adopting policies that could hurt other economies. "What I have in mind will eventually require a new international agreement along the lines of Bretton Woods, and some reinterpretation of the mandates of internationally influential central banks," Rajan said in a commentary posted on the website of Project Syndicate. "If so, what we need are monetary rules that prevent a central bank's domestic mandate from trumping a country's international responsibility," he said. He said that central banks in developed countries find various ways to justify their policies, without acknowledging that the exchange rate may be the primary channel of transmission. "We can pretend all is well with the global monetary non-system and hope that nothing goes spectacularly wrong. Or we can start building a system fit for the integrated world of the twenty-first century," Rajan said. He said the world is facing an increasingly dangerous situation and both advanced and emerging economies need to grow in order to manage domestic political tensions. "If governments respond by enacting policies that divert growth from other countries, this 'beggar my neighbour' tactic will simply foster instability elsewhere. What we need, therefore, are new rules of the game," he said. Pointing to the very low interest rate policies of the US Federal Reserve, the Bank of Japan and the Bank of England in a bid to stimulate their economies, Rajan has been warning that emerging markets are especially vulnerable to big shifts in capital flows triggered by the unprecedented monetary accommodation in rich countries. This is a warning to investors in India from the RBI Governor that good times are unlikely to last, if there are negative global cues or if there is a continued wave of protectionist policy from central banks abroad. This is a problem that is likely to adversely affect the major indices itself and not just the sectoral indices one at a time.
 
India's current account deficit (CAD) dropped to $7.1 billion or 1.3% of GDP in the third quarter of 2015-16 on account of narrowing trade deficit, Reserve Bank of India (RBI) said on Monday. "India's current account deficit (CAD) at $7.1 billion or, 1.3% of GDP in Q3 (October-December) of 2015-16 was lower than $7.7 billion or, 1.5% of GDP in Q3 of 2014-15," an RBI release said. "The contraction in CAD was primarily on account of a lower trade deficit ($34 billion) than in Q3 of last year ($38.6 billion)." The RBI also said foreign exchange reserves (on a balance of payment basis) increased by $4.1 billion in the October-December quarter of the current fiscal. On a cumulative basis, the CAD contracted to 1.4% of GDP in the first nine months of the fiscal from 1.7% in the April-December period of 2014-15, on the back of a fall in the trade deficit. During April-December, there was an accretion of $14.6 billion to foreign exchange reserves (on a balance of payment basis), as compared to $31.3 billion in the corresponding period of 2014-15. Private transfer receipts, mainly representing remittances by Indians abroad, amounted to $15.8 billion, a decline from their level in the preceding quarter as well as from a year ago. Net foreign direct investment (FDI) picked up in third quarter and stood at $10.8 billion, after earlier moderating in the second quarter. "Non-resident Indian deposits moderated significantly in Q3 of 2015-16 over their level in Q3 last year as well as the preceding quarter," RBI said. This is good news for those who watch inflation and aggregate demand in the economy and the share market is likely to respond favourably.
 
The top gainers and top losers of the major indices in the Indian stock markets are given in the table below:
 
 
The closing values of the major Asian indices are given below:
 

User

COMMENTS

LALIT SHAH

1 year ago

Dear sir
On nifty formed double bottom at 6869-6825 now prepared for double top we may see double top

JP Morgan sells mutual fund business to Edelweiss
After losing nearly 50% of its AUM in just six months, JP Morgan MF calls it quits
 
On 22 March, Edelweiss Asset Management announced that it will acquire JP Morgan’s Mutual Fund business in India. Over the past six months the assets under management (AUM) of JP Morgan MF fell by nearly 50% from Rs14,683 crore as on June 2015 to Rs7,500 crore as on December 2015. JP Morgan MF, which started business in 2007, manages assets of approximately Rs2,300 crore under equity schemes. However, over the six months, the non-equity AUM of JP Morgan MF substantially after the Amtek Auto issue. Its AUM under debt and liquid schemes fell by 66% to just Rs3,968 crore as on December 2015 from Rs11,612 crore as on June 2015.
 
In August 2015, the fund house received a lot of flak for the way it handled the Amtek Auto fiasco. The fund house had imposed curbs on redemption in two of its schemes that had exposure to the Amtek Auto paper after the security was downgraded. In September, the fund house segregated the illiquid assets after approval from the unitholders. In December 2015, the fund house was finally able to sell the Amtek Auto bonds at a loss. 
 
In October 2015, it was said that JP Morgan India was scouting for potential buyers and has appointed an investment banker for the same. Over the past few months, it was in the news that Tata MF, DHFL Pramerica Asset Managers, Reliance Capital and a large bank-controlled MF were among others who were eyeing the assets of the fund house. 
 
The acquisition will take the total AUM of Edelweiss MF to approximately Rs8,757 crore. This transaction marks yet another exit of a foreign player from the Indian mutual fund business. Over the past few months, Goldman Sachs sold its mutual fund business to Reliance MF; Nomura Asset Managers sold 19.3 % of its 35% stake in LIC-Nomura MF to LIC Housing and KBC Asset Management (of Belgium) sold 49% stake in Union-KBC AMC to its Indian partner Union Bank. In August 2015, Deutsche Bank had sold its fund business to Pramerica Mutual Fund. 
 
Frustrated by poor market prospects after 2009, a number of global players like Fidelity, Daiwa, Morgan Stanley, ING, PineBridge and Deutsche have already exited the Indian mutual fund business over the past few years. As on December 2015, 43 fund houses managed a total AUM of Rs13 lakh crore. However, the top 10 fund houses manage over 80% of the assets. And the top four fund houses—HDFC MF, ICICI Prudential MF, Reliance MF and Birla Sun Life MF manage nearly 50% of the industry assets.

User

COMMENTS

Chandragupta Acharya

1 year ago

Though JP Morgan has issues of its own, one fails to understand the reasons behind the general exodus of foreign mutual funds from India, given that India remains one of the most attractive markets in the world. None of them have given a specific reason for the exit. Media has speculated about increased capital requirements but our capital requirements are pittance for these entities given their global sizes. IMHO, this reflects very poorly on SEBI.

Modi wants monitoring of loans given to self-help groups
New Delhi : Monitoring the progress of various rural development schemes, Prime Minister Narendra Modi has instructed officials to also monitor loans extended to rural self-help groups (SHGs) through the Aadhaar scheme.
 
Three crore households have so far been linked to SHGs under the Deendayal Antyodaya Yojana that targets poverty alleviation through sustainable livelihood, NITI (National Institution for Transforming India) Aayog officials told the prime minister.
 
“He asked for due monitoring of the loans given to SHGs, using Aadhaar. He emphasised that loans must reach the intended beneficiaries, for this scheme to be successful,” an official said.
 
The NITI Aayog officials on Monday gave a presentation to the prime minister on the progress of the Deendayal Antyodaya Yojana and the Pradhan Mantri Gram Sadak Yojana (PMGSY). 
 
Official figures indicate that an average of 91 km of rural roads have been built daily in the financial year 2015-16, resulting in addition of 30,500 km to rural road length. As a result, 6,500 habitations were connected. 
 
“The prime minister was told about the use of innovative best practices in the PMGSY, including the use of geographic information system and space imagery for planning and monitoring, as well as citizen grievance redressal through app 'Meri Sadak',” the official said. 
 
“The prime minister has directed for stringent quality monitoring of the roads built under the scheme. He said quality checks should be made at the material procurement, construction and maintenance stages,” he added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)