Rupee tad weaker; gilts trading listless
Mumbai: The rupee closed marginally weaker on Monday at 47.12/13 per dollar, down from Friday's close at 47.0850/1050 in a volatile forex market. The domestic currency slipped to an intra day low of 47.24 on the back of aggressive dollar buying by state-run banks, according to forex dealers. ``The market witnessed a serious demand and supply mismatch which drove the rupee down. In fact, RBI intervened towards the evening and sold dollars, bringing the rupee back up to its closing levels'', said a forex dealer. Dealers contend that one of the reasons for rupee weakening over the past couple of days is that the dollar is strengthening against the euro. Meanwhile, forwards continued to firm up with the six-month premium ending at 1.71 per cent (1.05 per cent) and the one-year premium closing at 1.73 per cent (1.35 per cent).
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Motilal Oswal Securities targets top-end clients
Kochi: The Mumbai-based Motilal Oswal Securities Ltd is moving south and in its initial round of expansion will open its first office in Kochi on June 6. The company proposes to target the higher end of the investing clientele and primarily push its value-added services. "We are now expanding in the metros through our own branches, with value-added services, to cater to the top-end investing clients," Motilal Oswal , chairman and managing director, said in a press release. However, the definition of high networth individual is being appropriately modified in keeping with the potential of each locale. As part of its first round of expansion, the broking house also proposes to set up branches in Bangalore and Delhi. It also proposes to conduct wealth creation seminars over the next two to three months to push its investment philosophy.
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Sales figures drive up Hero Honda
Kochi: A pessimistic market responded enthusiastically to Hero Honda reporting a 12.3-per cent rise in its vehicle sales for May 2003. At end of trade today, the stock was quoting at Rs 223.25, up 4.40 per cent with 3.26 lakh shares traded on the BSE. On the NSE, the stock ended the day at Rs 223.25, up 4.54 per cent with 9.28 lakh shares traded. Brokers said that the sales figure reported by the company came as a welcome surprise to the market hence the sudden build up at the counter. "There had been a general pessimism in the market over the company's growth prospects. In fact, most broking houses had given out numbers on the lower side, recommending a `sell' on Hero Honda," a broker from a reputed domestic broking house said. Analysts attribute the rise in sales to the sudden increase in demand following the end of the truckers' strike, which had impacted April sales negatively. There is also a talk that the launch of the CD-Dawn (targeted at the Boxer), the 100-cc bike launched by Hero Honda, could have invigorated company performance.
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Sell off talk fuels Hindustan Oil
Mumbai: According to dealers, interest at the counter seems to have been sparked by market talks about the company being in advanced stages of talk for a sell-off to a multinational. They added that the company has been on the look out for buyers for a while now. Also, the recent announcement by the company that it had `encountered oil and associated gas bearing sands' at one of the blocks in onshore Cambay basin near Palej town, has been seen as a positive by the market. The share price of HOEC has gained 6.39 per cent on the BSE, closing at Rs 31.65 with 3.33 lakh shares being traded. On the NSE, the company's stock went up 6.04 per cent to close at Rs 31.60 with 6.66 lakh shares traded.
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Deutsche AMC plans floating rate fund
Kolkata: Deutsche Asset Management has lined up a debt fund that will substantially invest in floating rate instruments. The proposed Deutsche Floating Rate Fund will mainly pick up floating rate paper as well as fixed rate debt swapped for floating rate returns, fixed rate debt and money market instruments. The scheme, whose offer document has been sent to SEBI for clearance, will add to the spate of floaters mooted recently by fund houses such as Kotak Mahindra, JM and IL&FS. It will be managed by Mr Suresh Soni, who was formerly with Sundaram MF and Kothari Pioneer MF. The coupon on floating rate debt instruments will be reset periodically in line with the benchmark index movements.
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SEBI clears decks for `Fund of funds'
New Delhi: The much-debated `Fund of Funds' scheme can soon be a reality in the Indian mutual funds industry, with the Securities and Exchange Board of India (SEBI) amending its mutual funds regulations to facilitate the introduction of such schemes. A Fund of Funds scheme is a mutual fund scheme that invests primarily in other schemes of the same mutual fund or other mutual funds. The Capital market regulator has formally spelt out the expenses limit and investment restrictions related to such schemes. These two factors have a crucial bearing on the success of such schemes in the country. SEBI has now stipulated that the total expenses of a `Fund of Funds' scheme, including the management fees, should not exceed 0.75 per cent of the daily or weekly average net assets, depending upon whether the net asset value (NAV) of the scheme is calculated on a daily or weekly basis.
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