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Sensex posts fastest 500-point rise in last two years
Mumbai: With the Sensex closing on Monday at an all-time high of 8138.42, up 78.41 points over Friday's close of 8060.01, the bellwether index posted its fastest 500-point rise in the last two years, taking just nine days to reach the mark.

The last time it showed a similar rapid climb in value was between September 24 and October 13, 2003 when it took 11 days to climb by 552.12 points.

The total market value of the 30 Sensex stocks in the nine trading days increased by Rs39,421 crore from Rs10,00,030 crore on August 29 to Rs10,39,451 crore.

The total market capitalisation of the Bombay Stock Exchange increased by Rs81,082 crore to Rs21,74,892 crore from Rs20,93,809 crore.

The fastest-ever 500-plus Sensex rally was posted in 1992 when the index gained 674.16 points in just three trading days between March 20 and March 25.
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Kotak Mahindra Mutual launches the Kotak Cash Plus
Mumbai: Kotak Mahindra Mutual Fund has launched an open-ended income scheme, the Kotak Cash Plus, which will seek to capitalise on the inequalities existing between the spot market and the futures market. According to a press release from the fund, such inequalities often create investment opportunities.

The duration of investment can be as short as a month, the release added.

The scheme can invest 50-100 per cent in debt and money market instruments and up to 10 per cent in debt instruments. It can also invest up to 50 per cent in equity combined in sale in the futures market and up to 25 per cent in securitised debt.

The minimum investment in the fund is Rs5,000 and the fund will charge an exit load of 0.5 per cent for redemption within 30 days of allotment.
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Deutsche MF to launch a Stable Growth and Infrastructure fund
Kolkata: The Deutsche MF proposes to launch a close-ended balanced scheme, the Deutsche Stable Growth Fund, with a maturity period of three years.

The proposed scheme will offer two classes of units, A and B, each to be listed separately. Class A unit holders will get a specific participation rate (30 per cent) in the return of equity and will be given priority over Class B units for distribution at the time of maturity. An investor will have to apply for a minimum 45 units, and in multiples of 15 units.

For Class A investors, there will be a 2 per cent entry load for purchases and switch-ins from other Deutsche schemes (during the NFO) for amounts less than or equal to Rs2 crore. This will be 1 per cent for higher amounts. For all Class B investors, it will be 1 per cent.

The fund will try to secure capital appreciation and provide stability of the principal amount invested. "The equity component will be invested in a manner to replicate the BSE Sensex as far as possible and endeavour to provide capital appreciation over a longer term," the offer document filed with SEBI has mentioned.

The debt component will be invested in high quality debt securities maturing in line with the tenure of the fund. This will provide stability of the principal. On maturity, the total amount available for distribution will be the maturity value of the debt securities plus the realisable value of the equity investments.

Deutsche MF has also worked out an equity fund aimed at investing in the infrastructure sector. The proposed Deutsche Infrastructure Fund will focus on companies that operate in areas such as metals, housing, banking & financial services, cement, steel, energy, telecom and construction. It will have the Sensex as its benchmark.

Vinay Kulkarni, who has recently moved from UTI MF, has been named fund manager. Under normal circumstances, the scheme will allocate at least 65 per cent of its assets to equities and equity related instruments. This may go up to 100 per cent.
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LIC Mutual Fund offers Fixed Maturity plan
Mumbai: LIC Mutual Funds new fund offer the Fixed Maturity Plan is due to open on September 16. The fund comprises a six-month plan and a one-year plan.

This is a close-ended debt scheme with no assured returns, stated a press release. However, the portfolios of the plans will be such that more tax-efficient returns are generated.

The fund is targeted at corporate and institutional investors. The offer closes on September 20.
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Suzlon Energy's IPO price band fixed at Rs.425-510
Mumbai: Suzlon Energy proposes to raise between Rs1,245-1,494 crore through an initial public offering. The IPO has been fixed at a price band of Rs425-510 for an offering of 2.93 crore shares of Rs10 each.

Of these shares, 2.67 crore equity shares will be an issue of fresh equity by Suzlon, while Citicorp International Finance Corporation will make an offer for sale of 25.77 lakh equity shares, the company said in a release. However, the date of opening of the IPO is not yet decided.

The issue will be listed on the BSE and the NSE. The IPO will constitute 10.2 per cent of the fully diluted post-issue paid-up capital. The post-issue paid-up equity capital will stand at Rs287.53 crore.

Based on the price-band and post-IPO paid-up capital, the market capitalisation of the company will be between Rs12,200 crore and Rs14,600 crore. This will place the company among the top 30 companies based on the market capitalisation.

After the IPO, the promoters' holding will come down to 69.78 per cent from 76.94 per cent. Other shareholders include Citicorp International Finance Corporation and Chrys Capital.

Suzlon recorded total consolidated revenues of Rs1,965.92 crore in 2004-05, while net profit stood at Rs365.33 crore.
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