UTI-SSgA plans new fund
Kolkata: UTI-State Street is introducing a fund based on the Dow Jones Sustainability Index World (DJSI World). An open-ended scheme, the UTI-SSgA Global Navigator Fund, will invest mainly in stocks that form part of the benchmark.

The weightages in the fund could however be different from those in the index.

In normal circumstances, 90 per cent of the assets will be invested in equities or equity-linked instruments and UTI MF may also invest in ADRs / GDRs and foreign securities subject to certain limits.

The Global Navigator Fund follows a similar plan mooted by UTI-SSgA last month. The maiden proposal, UTI-SSgA Global Titans 50 Index Fund, was also based on a Dow Jones benchmark (Global Titans 50).

UTI and SSgA had tied up earlier this year, following which State Street Global Advisors Asia Ltd was mandated as investment advisor.

SSgA is the investment management arm of the State Street group and is a leading institutional asset manager.
Back to News Review index page  
Sahara MF launches 2 new schemes
Kolkata: Sahara Mutual Fund has launched two new schemes — an equity fund with focus on mid-cap stocks and a floating rate income fund.

The offers will help the MF to provide two critical options to investors.

The CNX Mid-Cap 200 has been selected as the fund's benchmark index.

Sahara MF currently manages six funds, two of which are on the equity side.

The mutual fund arm of Sahara is also drawing up plans to utilise its seven lakh strong army of agents.
Back to News Review index page  
Tata MF mobilises Rs 417 crore from Dividend Yield Fund
New Delhi: Tata Mutual Fund has raised Rs 417 crore from the Tata Dividend Yield Fund. An open-ended equity scheme, Tata Dividend Yield Fund, was open for initial subscription from September 28 to October 27.

The scheme aims to invest at least 70 per cent of its net assets in shares with dividend yields higher than that of the Sensex at the time of investment. The equity scheme aims at maximising returns by continuing to focus on a stringent valuation criterion and fundamental parameters such as management and business competitiveness and growth prospects of companies.
Back to News Review index page  
Bourses ordered to rework corporatisation plan
Mumbai: The Securities and Exchange Board of India (SEBI) has asked the big stock exchanges to submit reworked schemes for corporatisation and demutualisation following the government ordinance on the Securities Contract (Regulation) Act (SCRA), 1956 last month.

The ordinance is not only concerned with the corporatisation of the exchanges but also to setting up of clearing corporations and other changes in the functioning of the exchanges itself in the new regime.

All the exchange including the Bombay Stock Exchange (BSE), will have to submit reworked schemes in light of the amendments made to the SCRA.

Though Sebi has set no final deadlines for filing the first draft, the time limits have been defined for furnishing the first draft and taking it on to the next stage and so on.

BSE is understood to have already reworked its original scheme and is ready to submit its scheme to the securities watchdog.
Back to News Review index page  

Stock markets dull
The markets closed flat on profit taking after starting high on Tuesday. The Sensex remained well below the 6,000-point mark.

The BSE Sensex opened at 5,937 points, rose to 5,957 during the morning session with index constituents notching up significant gains, but lost steam in the afternoon session and finally closed at 5,929 levels. This was unchanged from the previous day's close.

The Nifty following the same pattern closed at 1,858.7 points, just 4 points down from Monday's close.

The BSE Tech index closed 0.8 per cent higher than the previous close. The PSU index was the biggest loser, shedding 1.01 per cent, as oil stocks cooled off from the gains of the past few days.

18 Sensex stocks registered declines to 12 stocks, which registered gains. But few stocks within the index registered any significant price movement.

HDFC, the star performer of the day, gained 3.9 per cent to close at Rs705.8 putting on Rs27. The stock was reacting to the news that the housing finance company was contemplating a hike in lending rates, post-Diwali. The company has indicated a 50-basis point hike in lending rates, Ranbaxy Labs' stock lost Rs41.2 to close at Rs1,080.4 during the day. A downgrading of the company's investment prospects by a foreign institution was thought to be behind the fall in the stock. BHEL also slid in value during the day's trading, losing 2.1 per cent to close at Rs616.

Among mid cap stocks the major gainers were Phoenix Mills (up Rs47.5 to close at Rs3,200), Lakshmi Machine Works (up Rs35.7 to close at Rs7,455), Skanska Cementation (up Rs25.4 to close at Rs280.3), Abbot Labs (up Rs19.5 to close at Rs639.6).

Rallis India stock resumed its upward journey during the day, gaining Rs14.2 to settle at Rs184.5 driven by the turnaround in financial performance and open market purchases in the stock by Reliance Capital.

Textile stocks, Pantaloon Retail surged by Rs16.1 to Rs474 and Raymond rose by Rs12.5 to Rs272.5.

Grasim lost Rs20.1 to close at Rs1,116. The company reported an 11 per cent growth in cement sales in the last month. The other losers were Ranbaxy Labs, Bayer CropScience (down by Rs17.5 to Rs248.5) and Atlas Copco (down by Rs24.2 at Rs646.6).

State Bank affiliates — the State Banks of Mysore, Travancore and Bikaner — also lost ground during the day. But trading volumes in these stocks were relatively thin.
Back to News Review index page  
Satyam up on ADR rumours.
The Satyam Computer scrip saw active buying throughout the day on the back of rumours that the company planned to issue sponsored American Depository Receipt (ADR) soon.

Several foreign institutional investors (FIIs) are rumoured to have picked up shares of the software major.

Trading volumes in the stock on the BSE jumped from 13.22 lakh shares on Monday to 23.29 lakh shares on Tuesday. On the NSE, volumes jumped from 38.10 lakh shares to 78.12 lakh shares. The stock closed at Rs399.75 on the BSE, up 2.47 per cent, and on the NSE, it closed at Rs399.80, up 2.08 per cent.
Back to News Review index page  
Byuing interest in Abhishek Industries
Mumbai: Abhishek Industries was seen locking in the 10 per cent upper circuit limit on Tuesday and closed at Rs29.05 on the BSE with a volume of 11.73 lakh shares. On the NSE, the stock closed at Rs29.15 with volumes of 35.68 lakh shares.

The company's expansion of a new terry towel project, which is in the final stage of completion was seen to be the main reason behind the buying interest.

The expansion of the towel unit has commenced trial runs on 72 air jet looms out of a total of 96 air jet looms, which will be fully operative by December 2004.

Phase two of the expansion project comprising 60 air jet looms, will be operative by March 2005.

After the completion of this project, rumours abound that the company will declare good results. Abhishek Industries is already a preferred vendor to MNCs such as Wal-Mart and other retail stores in the US and Europe.
Back to News Review index page  
Torrent Cables up
Manufacturer of electrical cables, Torrent Cables, saw selective buying on Tuesday because of the good order position of cables from its various clients. Moreover, the valuation of Torrent Cables is attractive compared to other companies in the segment.

On Tuesday, Torrent's stock price gained 7.31 per cent at Rs69.75 on the BSE with a volume of 25,356 shares.
Back to News Review index page  
Insurance cos can now invest in large IPOs
Hyderabad: The Insurance Regulatory and Development Authority (IRDA) has decided to consider investments by insurance companies in IPOs of not less than Rs500 crore as `approved investments'.

As per the current regulations in force, investment in equity shares through IPOs is categorised as `other than approved investments' and the insurance companies cannot invest more than 25 per cent in this category.

According to the IRDA Chairman, C.S. Rao, the decision to relax the investment norms was taken following suggestions from insurers to consider relaxation in respect of big-ticket IPOs of well-known companies where the issue size is large and the corporates (issuers) are known to have good performance record and have sound financials.

IRDA has however fixed certain conditions for considering investments in equity shares offered through IPOs as `approved investments'.

For one, the equity shares have to be `listed' through IPO and the size of the issue of equity shares through IPO, including offer for sales, should not be less Rs500 crore.

Secondly, the number of shares offered through IPO should not be less than 50 lakh shares.
Back to News Review index page