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SBI MF launches commodity based equity fund
Mumbai: SBI Mutual Fund has launched its first ever commodity-based equity fund Magnum Comma Fund.

The Comma Fund will invest in a portfolio of stocks of oil and gas, metals, chemicals and agriculture companies.

According to SBI MF, commodity stocks have outperformed the stock market benchmarks by impressive margins. These stocks enjoy a positive correlation to inflation and the new fund would be a hedge against inflation.

Global asset management company Societe Generale Asset Management (SGAM), which has a 37 per cent stake in SBI Mutual Fund, has extensive expertise in investing in commodity sectors. It is also running a World Commodity Fund.

According to SBI MF, Generally, commodity cycles are of long duration average being 17 years. After a long bearish phase, the domestic commodity sector is passing through a bull phase since 1999 and the fund expects the trend to continue.

The new fund opens for subscription on June 30 and would close on July 25.
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Syndicate Bank fixes IPO price band at Rs.46-50
Mumbai: Syndicate Bank has fixed the price band for its follow-on public issue between Rs46 and Rs50, according to a release from the bank.

Syndicate Bank will offer five crore equity shares of Rs10 each for cash through a 100 per cent book-building process. The issue will open on July 7 and close on July 13.

Of the total offer, the bank has reserved Rs50 lakh equity shares to be offered to its eligible employees.

Of the balance net offer, 22.50 million equity shares, that is, 50 per cent of the net offer are reserved for allotment to qualified institutional buyers on a discretionary basis and 6.75 million shares, that is, 15 per cent of the net offer are reserved for allotment to non-institutional buyers. The balance 15.75 million shares, that is, 35 per cent of the net offer would be allotted to retail investors on a proportionate basis, the release added.

The book running lead managers of the issue are SBI Capital Markets Ltd, Enam Financial Consultants Pvt Ltd, JM Morgan Stanley Pvt Ltd, and SSKI Corporate Finance Pvt Ltd.
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Markets in correction mode
After rising by 230 points in last five trading sessions, the markets were in correction mode.

Concern of rising crude oil prices, reports of the militant attack in Ayodhya and weakness in Asian marlets depressed the overall market sentiment.

The benchmark Sensex was down by 57 points, while the Nifty suffered a loss of 19.9 points.

The markets opened on a weak note on Tuesday at 7275, and index heavyweights came in for the biggest onslaught.

After opening the Sensex rallied and crossed the 7300-mark. However, profit-taking in the last hour of trading dragged the index down.

The S&P CNX Nifty opened marginally higher than its earlier close at 2231.2, reached an intra-day high of 2238.6 before closing at 2210.8.

The losers outweighed the gainers 409 scrips advanced while 832 lost.

IT stocks witnessed correction. Infosys, Satyam, Wipro and TCS suffered sharp losses. Rolta, Polaris, i-flex, Patni Computers, HCL Technologies, Hexaware and iGate Global also remained subdued.

Among FMCG stocks ITC recorded some gains in the morning session on expectation that its purchase of a controlling stake in Wimco will help it expand its matchbox business. However, bearish sentiment pulled the stock down in the end. McDowell, Henkel Spic, Jindal Photo, Colgate Palmolive, Nirma, Tata Tea, HLL, Dabur India, Nestle and Tata Coffee were also subdued.

Among auto stocks TVS Motor, CEAT, Bajaj Auto, Hero Honda, Hindustan Motors and Escorts declined. Tata Motors gained by by four per cent and Amtek Auto was up sharply after the auto parts maker said that it plans to buy Zelter, a German maker of turbochargers. It closed the day with a gain of 1.2 per cent.

Siemens flared by about six per cent after its parent Siemens AG won an order from the Torrent group to build a power plant in India.

ABB, SKF India, L&T, BHEL, Crompton Greaves and Alfa Laval also saw buying interest. However, Alstom, BEML, Thermax, Dredging Corporation, Gammon India and KEC International remained weak.

Among the pharmaceutical stocks, Elder Pharma surged by 11.7 per cent while Divi's Lab, Dr Reddy's, Morepen Lab and Shasun Chemicals recorded respectable gains.

Metal stocks saw some gains. Steel stocks that gained included Lloyd Steel, Sesa Goa, Jindal Vijaynagar, Essar, Tata Steel, SAIL and Navbharat Ferro Alloys while non-ferrous metals stocks took a beating. Madras Aluminium, Hindalco, National Aluminium and Hindustan Zinc came in for sharp selling pressure.

Banking stocks also could not arrest the bearish sentiment. Profit booking across the counters of SBI, Bank of India, Oriental Bank, Canara Bank and Indian Overseas Bank pulled them down.

Selective buying interest among the stocks of ICICI Bank and HDFC Bank kept them in the positive territory.

Media and entertainment stocks like TV Today, Media Video and Zee Telefilms gained significantly.

Other prominent gainers on the Nifty were Balaji Telefilms, Blue Dart Express, Indo Rama Synthetics and IVRCL.
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