Cangilt to pay 3% income distribution
Kochi: Canbank Mutual Fund has offered an income distribution of 3 per cent on the face value of Rs 10 in its Cangilt (PGS) scheme under the income plan. This income distribution is tax free in the hands of the investors. This is the second dividend in the current financial year. The cumulative distribution made by the scheme during the financial year is 6.5 per cent. The record date for the income distribution has been fixed as July 10. All the unit holders whose names appear on the record date are eligible for the income distribution. Cangilt (PGS) scheme applicants under fresh investments are eligible for income distribution if their investments are realised on or before July 10, the release said.
Back to News Review index page  

Sensex gains 58 points
Mumbai: Technology bellwether Infosys on Thursday made news when it reported a better first-quarter performance and said it expected better income and profit this year than estimated earlier. The company's performance and cautiously upbeat guidance helped the 30-share Sensex of the BSE close 58.84 points up at 3679.63 on Thursday. The broader S&P CNX Nifty of the NSE closed 1.87 per cent higher at 1162.35. The BSE TECk index was up 8.45 per cent or 61.20 points when it closed the day at 785.64. Investors, fresh from Maruti's listing celebrations, immediately showed their appreciation, taking the bellwether stock up 11 per cent to a close of Rs 3,255.70 on the Bombay Stock Exchange. The share closed at Rs 3,626.80, up 11.55 per cent on the National Stock Exchange. It also helped other tech stocks out of the wilderness and into the spotlight. In the past three months, manufacturing sector companies and undervalued Government-owned banks have been hogging the limelight. On April 10, Infosys' results had shocked the market into a bearish mood, causing the benchmark Sensex to lose more than 100 points on that day. It had also pulled down the BSE TECk index by 18 per cent. On the BSE, 26 of the top 50 gainers in terms of price were technology companies, both first rung as well as second rung. The i-flex Solutions stock was up 21 per cent on Thursday at Rs 1,333.80 on the BSE. Digital Globalsoft gained nearly 15 per cent to close the day at Rs 484.65. Another technology major, HCL Technologies ended the day on the NSE at Rs 171.55, a gain of more than 10 per cent on its previous close of Rs 155.80. Satyam closed 10 per cent higher at Rs 187.80 and Wipro closed at Rs 1,005.50, up 9.5 per cent, on the NSE. Thursday's exuberance in tech stocks notwithstanding, Nilesh Shah, CEO of Rooshnil Securities, said the indices are likely to move sideways.
Back to News Review index page  

Maruti shares move up
Mumbai: Maruti Udyog gained 1.7 per cent to close at Rs 166.95 on the NSE on Thursday just after a day of its successful launch. It had closed at Rs 164.05 on Wednesday. More than 2 crore shares were traded on the exchange.
Back to News Review index page  

Cabinet nod for de-mutualisation of bourses
New Delhi: The Union Cabinet has cleared the proposal to amend the Securities Contracts (Regulation) Act, 1956 (SCRA) to facilitate the de-mutualisation of stock exchanges in the country, say reports. An approval has also been granted for amending the Depositories Act, 1996 to enhance the level of penalties under the legislation. The SCRA amendments would pave the way for the transition of the stock exchanges from a structure of mutual association of member brokers (operating on a "not-for-profit" basis) to limited liability companies (for-profit companies) accountable to shareholders. De-mutualisation helps in the separation of ownership and management from the right of access to trading and thereby results in better governance in such exchanges. "The finance ministry has requested that the Bill to amend SCRA be introduced in the ensuing session of Parliament itself," the Parliamentary Affairs Minister, Sushma Swaraj, told newspersons here after the Cabinet meeting. At present, there are 23 stock exchanges in the country. While three stock exchanges are functioning as association of persons (The Stock Exchange, Mumbai, Ahmedabad Stock Exchange and Indore Stock Exchange), the other 20 have been set up as companies either limited by guarantees or by shares. Apart from the National Stock Exchange (NSE), all other exchanges are functioning as "not-for-profit" stock exchanges. Only two exchanges — NSE and OTCEI have a de-mutualised structure. The union finance minister, Jaswant Singh, had already stated in his Budget speech for 2003-04 that necessary amendments to SCRA would be introduced to enable bourses in the country to separate the ownership of stock exchanges from management resulting in de-mutualisation. Further, as a one-time measure, gains, if any, arising from the transactions leading to corporatisation or de-mutualisation of exchanges would be exempt from capital gains, the Finance Minister had announced.
Back to News Review index page