Fund managers stay with banking sector
Mumbai: Fund managers seem to be bullish about the banking sector given a structural shift in lending towards retail assets and likely NPL recoveries through the asset reconstruction companies (ARCs), according to the DSP Merrill Lynch India Domestic Fund Manager Survey, May 2003. The survey shows a few changes in fund manager's outlook on corporate profitability across sectors revealing that as results from banking stocks have exceeded expectations, fund managers continue to remain optimistic on the sector, the reasons being buoyancy in retail demand, NPL recoveries through the ARC, and first signs of industrial credit pick-up.
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ED probe into 8 companies
New Delhi: The Enforcement Directorate (ED) has initiated investigations into eight companies — Maars Technologies, Mascon Global, Mukta Arts, Tips Industries, Balaji Telefilms, Kopran group, Nirma group and Cadilla group for involvement in market manipulation and their proximity to Ketan Parekh. The Action Taken Report (ATR) on the recommendations of the Joint Parliamentary Committee (JPC) on the stock market scam stated that these companies have been added to the list of 15 companies mentioned earlier on the recommendations made by the market regulator — Securities and Exchange Board of India (SEBI).
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RBI studying portfolio investment schemes
New Delhi: The Reserve Bank of India (RBI) is carrying out an internal study on portfolio investment schemes (PIS) after the OCB route was misused during the 2001 stock market scam. The study is being carried out after the capital markets regulator — the Securities and Exchange Board of India's (SEBI) observation that there has been more outflow than inflow of funds which defeated the purpose of portfolio investment by OCBs. RBI informed the Joint Parliamentary Committee on stock market scam that out of the approximately 70 banks, 27 are involved in the PIS, out of which 15 banks, which cover more than 84 per cent of PIS, had already furnished details.
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Participatory notes by FIIs — SEBI may seek more disclosures
New Delhi: The Securities and Exchange Board of India (SEBI) is considering steps to include disclosure of information about the terms, nature and contracting parties to the participatory notes (PNs) issued by foreign institutional investors (FIIs). This assurance has been given in the action taken report (ATR) on the report of the Joint Parliamentary Committee (JPC) on stock market scam that surfaced in 2001.
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HLL touches new 52-week low
Mumbai: The market was range-bound and closed lower in the negative territory. The BSE Sensex closed lower by 11.60 points at Rs 2950. The S&P CNX Nifty declined 2.40 points to close at Rs 939.15. The Sensex opened the day lower at Rs 2953.12 and managed to climb to a high of 2960.92. Weakness in heavyweights such as HLL, Infosys, Ranbaxy and HPCL caused much of the damage to the index. HLL with 12.50 per cent weightage in the index touched a new 52-week low of Rs 135. Incidentally, the stock touched its 52-week high one-year back. The stock closed the day at Rs 137.95. Infosys has 7.98 per cent weightage in the Sensex, declined 47.55 points or 1.60 per cent at Rs 2928.60. Gains of stocks such as Reliance, ITC, SBI, HDFC, MTNL and Tata Steel managed to control the decline.
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Forwards recover; gilts up
Mumbai: Forward premium partially recovered on Friday from the previous day's lows, with the six-month premium ending higher at 1.31 per cent (0.87 percentage point) and the premium for one year closing at 1.38 per cent (1.23 per cent) in the forex market.
According to a dealer with a private sector bank, forwards were going so low that market participants thought that RBI might intervene. Many players were seen squaring off positions.
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