Nifty has gone above the first of three short-term indicators we track. It has to close above today’s high for the upmove to continue
Today the indices opened in the positive and edged higher each time after a minor dip – until a selloff in the end. The market was expected to be volatile on account of the expiry of the futures and options contract. The National Stock Exchange (NSE) recorded a volume of 87.05 crore shares, among the highest on an expiry day.
The Sensex and the Nifty opened with a gap up at 18,074 and 5,317 respectively. Soon they hit their respective lows. The Sensex hit a higher low of 18,071 while the Nifty hit a higher low of 5,303. Towards the end of the session the indices sold off sharply. The Sensex hit a high of 18,456 and closed at 18,401 (up 405 points or 2.25%) while the Nifty hit a high of 5,429 and closed at 5,409 (up 124 points or 2.35%).
Except for PSU Bank (down 0.46%) all the other indices closed in the positive. The top gainers were Infra (3.01%); Energy (2.97%); Finance (2.74%); Metal (2.71%) and Media (2.55%).
Of the 50 stocks on the Nifty, 38 ended in the green. The major gainers were Sesa Goa (12.83%); Hindalco (5.78%); HDFC (5.73%); Lupin (5.10%) and Kotak Mahindra Bank (4.92%). The major losers were Punjab National Bank (2.05%); UltraTech Cement (1.96%); Coal India (1.54%); Infosys (1.36%) and State Bank of India (1.06%).
The latest measure of Reserve Bank of India (RBI) to control the volatility in the currency market was taken on late Wednesday when the RBI decided to provide a special window with immediate effect under which the RBI will undertake sell/buy USD-INR forex swaps for fixed tenor with the oil marketing companies through a designated bank.
The partially convertible rupee was hovering at 67.655 against the dollar, sharply higher than its record close of 68.80/81 on Wednesday, 28 August 2013.
Prime Minister Manmohan Singh told parliament he was likely to make a statement on the economy on Friday when asked by MPs what steps were being considered on the rupee.
Global rating agency Moody's Investors Service today said that the Indian government's plan to provide cheap grains to the poor is credit negative and will bring more pressure on the government's weak finances. The measure is credit negative for the Indian government because it will raise government spending on food subsidies to about 1.2% of GDP per year from an estimated 0.8% currently, exacerbating the government's weak finances, Moody's said.
The land acquisition bill, which provides extra protection for landowners whose property is bought for industrial development, was introduced in Lok Sabha today, 29 August 2013. The bill proposes to establish new rules for compensation for land acquired for infrastructure projects and industry, a move seen as raising costs but potentially reducing protests that have plagued India's industrialization drive. The bill calls for taking the consent of 80% of land owners for acquiring land for private projects and of 70% landowners for public-private projects.
Except for Shanghai Composite (down 0.19%) all the other Asian indices ended in the green. Jakarta Composite was to top gainer (up 1.92%). Speculation that geopolitical tensions arising from a possible US-led military strike against Syria may also lead the Fed to hold off the reduction in stimulus aided gains in Asian stocks.
Market now looks ahead for the US economic data that will reinforce the case for the Federal Reserve to slow stimulus. Data awaited is of US gross domestic product for the second quarter and that of US initial jobless claims.
Brazil's central bank on Wednesday raised its key lending rate by a half percentage point, reinforcing a commitment to curb worrisome inflation despite parallel concerns over the pace of economic growth. US indices ended in the positive on Wednesday and opened positive today. European indices were trading in the positive.
Global funds that put your money in other countries don’t necessarily offer much diversification
Axis Mutual Fund plans to launch another foreign fund of fund scheme— Axis Global Equity Alpha Fund. This scheme, like that of Axis Asian Opportunities Fund (Read: Axis Asian Opportunities Fund: Another global fund) would invest in a scheme of Schroders Plc. Schroders is a global investment company that manages around 580 funds globally with a total corpus of $388 billion. The scheme would invest 95%-100% of its assets in units of Schroder International Selection Fund Global Equity Alpha. The remaining part of the assets would be invested in debt or money market instruments. The target scheme was launched in July 2005 is one of the funds under the Schroder International Selection Fund. Under this scheme, at least two-thirds of the fund (excluding cash) will be invested in a concentrated range of shares of companies worldwide.
Schroder Alpha funds have a strategy to invest “in companies in which they have a high conviction that the current share price does not reflect the future prospects for that business. The fund will typically hold between 50 and 60 companies and has no bias to any particular industry or size of the company.”
As on 28th June 2013, over 50% of the assets have been invested in companies listed in America and around 20% is invested in companies listed in Europe. In terms of performance, the scheme has performed relatively well compared to its benchmark since inception and over the one-year and five-year periods. The top 10 holdings of the scheme includes: Microsoft, Roche Holding, Coco-Cola, Diageo and Occidental Petroleum. Idea Cellular is also one of the top 10 picks.
Long-term capital gains are tax-free for domestic equity mutual fund schemes. Investing in global funds will attract long-term capital gains which will be taxed at 20% with indexation and 10% without indexation.
Equities should be used to create long-term wealth. If an investor is looking to invest for the really long term, then, with the tax benefits included, investing in Indian equity schemes may be a better option than investing in global schemes. These schemes have made money recently because of rupee devaluation. Such gains may not last.
Sudhanshu Asthana, who has an experience of over 10 years, would be the fund manager of the scheme. The performance of the scheme would be benchmarked to MSCI AC Asia ex Japan Net TR index.
Read our earlier articles on global funds:
Other details of the scheme
Minimum Application Amount Rs5,000 and in multiples of Re. 1/- thereafter
Minimum Additional Purchase Amount Rs100 and in multiples of Re. 1/- thereafter
Entry Load: Not Applicable
3% if redeemed / switched - out up to 6 months from the date of allotment
2% if redeemed / switched - out after 6 months & up to 12 months from the date of allotment
1% if redeemed / switched - out after 12 months & up to 24 months from the date of allotment
Bhatkal, one of India’s most wanted terrorists, was picked up by security agencies along the Bihar-Nepal border last night and will be handed over to the NIA for probe
Indian Mujahideen co-founder Yasin Bhatkal, key accused in Hyderabad and Mumbai blasts, was on Thursday arrested from the Indo-Nepal border after being on the run for over five years.
Bhatkal, one of India’s most wanted terrorists, was picked up by security agencies along with another IM leader Akhtar. He will be handed over to National Investigation Agency (NIA) for probe.
Union home minister Sushilkumar Shinde told reporters outside the Parliament, “Yasin Bhatkal was traced along the Bihar-Nepal border last night by our intelligence agencies. He is under the custody of Bihar police and the interrogation has been going on. Till now, this is the only information I can give you”.
Bhatkal is wanted by NIA in several cases of terror activities and waging war against the country. NIA, which has registered cases under various sections of Indian Penal Code (IPC) and Unlawful Activities (Prevention) Act against him, had also announced a reward of Rs10 lakh for his capture.
Yasin, also known as Mohammed Ahmed Siddhibappa, along with three aides Tahaseen Akhtar Wasim Aktar Shaikh (23), Asadulla Akhtar Javed Akhtar (26) and Waqas alias Ahmed (26) were allegedly behind three coordinated bomb explosions at Opera House, Zaveri Zazaar and Dadar West in Mumbai on July 13, 2011, leaving 27 dead and 130 injured.
The IM leader is wanted in a string of terror attacks in Ahmedabad, Surat, Bangalore, Delhi and Hyderabad.
In February, the Maharashtra Anti-Terrorism Squad (ATS) had announced a reward of Rs10 lakh each to anyone giving information on Yasin and the three aides.
Except Tahaseen, who planted a bomb in the Dadar blast, the rest three were also involved in the four co-ordinated low-intensity explosions, which struck the busy arterial road in the heart of Pune city on 1 August 2012. Eight accused had been arrested in this connection.
In December 2011, Delhi police had also announced a reward of Rs 15 lakh for any information leading to the arrest of Yasin in several terror cases, including three in Delhi.
While Yasin hails from Bhatkal in Karnataka, Tahaseen is from Samastipur in Bihar while Asadullah is from Azamgarh in Uttar Pradesh.
Yasin, who co-founded IM in 2008 along with brother Riaz Bhatkal, is also wanted in the German Bakery bomb blast in Pune on 13 February 2010, that left 17 dead.
The IM was designated a terrorist group by the government under the Unlawful Activities Prevention Act in June, 2010.
The banned outfit was declared by the US as a Foreign Terrorist Organisation in 2011.