Nifty, Sensex headed higher – Monday closing report

Nifty has broken out after consolidating over the last two weeks and may be headed for 8,550.


In Friday’s closing report, we had mentioned that the Indian benchmark will have to push past 8,420 to rally higher. Up to 2pm in the afternoon Monday, the NSE’s CNX Nifty moved in a range of 8,349 and 8,380. After crossing Friday’s closing, it witnessed a strengthened up move. Nifty hit its new lifetime high and closed near to the day’s high.
S&P BSE Sensex opened at 28,019 and moved up to the level of 28,206 after hitting a low of 27,921. Nifty opened at 8,378 and hit a low 8,349 before reaching up to the high of 8,438. Both Sensex, Nifty closed Monday at their new life time high. Sensex closed at 28,178 (up 131 points or 0.47%), while Nifty closed at 8,431 (up 41 points or 0.49%).


NSE recorded a volume of 90.96 crore shares. India VIX rose 3.13% to close at 14.4100.

Prime Minister Narendra Modi, speaking at the G20 summit, called for close global coordination to address the challenges posed by tax avoidance. President Barack Obama announced a $3 billion US contribution to an international fund to help poor countries cope with the effects of climate change.

India’s merchandise exports in October contracted by 5.04% at $26.09 billion from $27.48 billion in the same month last year. Imports, on the other hand, rose by 3.62% reaching $39.45 billion compared to $38.07 billion in October last year. Trade deficit in October rose to $13.35 billion from $10.59 billion last year, according to the data released Monday. In September, it had widened to $14.25 billion. In October, gold imports soared by a whopping 280.39% reaching $4.17 billion as against $1.09 billion.
There are reports that the Reserve Bank of India (RBI) is in talks with the government on increasing curbs on gold imports.

JSW Energy (12.13%) was the top gainer in ‘A’ group on the BSE. It informed BSE that it has agreed to acquire from Jaiprakash Power Ventures Ltd and other shareholders, 100% stake in Himachal Baspa Power Company Ltd for Rs9,700 crore. The board of directors of Jaiprakash Power Ventures has approved the transfer of, the 300 MW Baspa II hydro-electric project and the 1091 MW Karcham Wangtoo hydro-electric project, both located in Himachal Pradesh into a separate company, i.e. the Himachal Baspa Power Co Ltd.

Coming back to stock markets, Rasoya Proteins (19.91%) was the top loser in ‘A’ group on the BSE. The stock hit its 52-week low today. The company posted a weak result on Friday.

State Bank of India (SBI) (up 5.44%) was the top gainer in Sensex 30 pack. The stock hit its 52-week high today. The bank was in news as it had signed a memorandum of understanding with Adani group to provide a loan of up to $1 billion for the development of Carmichael mine in Queensland, which it aims to build by the end of 2017.

ICICI Bank (1.27%) was the top loser in Sensex 30 stock. According to reports, the bank recently raised 600 million yuans from the Chinese debt market (Dim Sum bonds) or a little over $ 95 million, at a coupon of 4%.

US indices closed Friday flat. A report from the US Commerce Department on Friday showed that retail sales in October increased 0.3% after a 0.3% drop in September, as American consumers ate out and shopped for clothes, enjoying a windfall from cheaper gasoline. The US Federal Reserve reports the US industrial production data for October today.

Except for Jakarta Composite (0.09%), rest of the Asian indices, which were trading closed Monday in the negative. Nikkei 225 (2.96%) was the top loser.

Japan's GDP unexpectedly shrank in the third quarter. Japan's real GDP shrank 1.6% on an annualised basis in July-September third quarter as firms cut inventories and held back on capital investment. The figure marked the second quarter of contraction, after the economy shrank 7.3% in the April-June second quarter after the national sales tax ticked up to 8% from 5% on 1 April 2014.

 European indices were trading lower while US Futures too were trading in the red.



Suketu Shah

3 years ago

The fact that sensex has moved from 19000 to 28000 in less than 6 months but sale of shares among retail clients still remains low is an indication how much share brokers and wealth management companies have fooled customers in the last 8 yrs.Most have left investing in shares for good.

This shd be an ideal times to get into shares but the trust in equitieis has gone away in majoritiyy of people after being cheated by wealth management companies.

Review of SBI Equity Opportunities Fund

Close-ended scheme are usually not worth it. What about SBI Equity Opportunities Fund?


SBI Mutual Fund has launched SBI Equity Opportunities Fund, a three-year close-ended scheme. The new fund offer for the second series of this scheme will close on 1 December 2014. SBI Equity Opportunities will invest in a diversified portfolio of stocks across all market-cap and sectors. There is nothing unique about the investment strategy or the portfolio allocation. The scheme will invest 80% or more in equity and the rest in debt and money market instruments. From the beginning of 2014, as many as 27 equity diversified close-ended schemes were launched (including the different ones in a series). A few are in the pipeline.


Fund houses prefer to launch close-ended schemes as the assets are locked-in for the tenure of the scheme. However, for the investor, such schemes turn out to be illiquid. Even tough close-ended schemes are listed on the exchange; there is hardly a market of buyers and sellers for such schemes.


Moneylife has mentioned several times in the past, the performance of close-ended schemes depends on the market conditions at the time of investing and at the time of maturity. If you invest in a period where the markets command a high valuation, chances are that the market may head lower and if the market conditions do not improve, you may end up with a fairly low return or even a loss at maturity. Being close-ended, you will not be able to invest systematically. Hence, the cost of your investment will be fixed, which is at the time of subscription.


In a recent article published in Moneylife Magazine (Avoid Close-ended Schemes-, we pointed out that close-ended schemes not only have no track record but turn out to be more expensive than schemes which are in existence for a few years or more and have gathered a larger asset base. Expenses are calculated based on the corpus of a scheme. For example, a scheme with a corpus of Rs1,000 crore will be able to charge a maximum annual fee (expense ratio) of 2.55% per annum, on the other hand, a scheme with a corpus of Rs100 crore or less (average corpus size of a close-ended scheme) is allowed to charge a maximum expense ratio of up to 3% p.a.


Hence, close-ended schemes turn out to be a risky choice. So is SBI Equity Opportunity Fund.



Kiran Aggarwal

3 years ago

SBI is earning bad repute day by day
with this twisting thinking and
tozic products roll out
across the spectrum
- SBI Life insurance policies for example

Equity mutual fund inflow in first seven months cross Rs39,000 crore

With the stock market hitting new all-time highs, it has become easier for MFs to attract investors, citing impressive returns from equity schemes, which are currently higher than that of bank fixed deposits


Buoyant stock markets helped attract over Rs39,000 crore in equity mutual fund schemes during the first seven months of FY2014-15. In the April-October period of 2013-14, such schemes had seen a net outflow of over Rs8,500 crore.


According to the latest data available with the Association of Mutual Funds in India (AMFI), investors have pumped in a net amount of Rs39,217 crore in equity-oriented MF schemes during April-October in current fiscal.


This trend is expected to continue in the coming months, industry experts said, adding there has been positive sentiment towards equity MFs and equity-linked savings schemes ever since the National Democratic Alliance (NDA) government came to power at the Centre in May.


"Equity schemes continued to attract capital in the past few months due to the continuing rally in equity markets," an analyst said.


These funds have added more than seven lakh investor accounts or folios in the first seven months of the current fiscal in view of sharp rise in the stock market.


The strong inflow in MF schemes coincided with the rise in BSE's benchmark index, Sensex, that spurted by around 25% during the period under review.


With the stock market hitting new all-time highs, it has become easier for MFs to attract investors, citing impressive returns from equity schemes which are currently higher than that of bank fixed deposits.


Mutual fund is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets.


The surge in inflows and improved valuations have taken the total assets under management (AUM) for the 45 fund houses to nearly Rs11 lakh crore.




3 years ago

Those who said all types of nasty things about equity mutual funds shall find it difficult now to stay away from equity funds.

Also, with markets hitting new all-time highs it has become easier for investors(?) to go in search of mutual funds.

Who will protect those who come ill-prepared. . . For like all previous bull runs this one too shall end badly.

It would be fascinating to see how & when this current bull run ends.

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