LIC launches Health Insurance Plan “HEALTH PROTECTION PLUS”

LIC’s Health Protection Plus plan is a unique long term health insurance plan that offers
health insurance covers for the entire family (husband, wife and the children) – Hospital
Cash Benefit (HCB) and Major Surgical Benefit (MSB) along with a ULIP component
(investment in the form of Units) that is specifically designed to meet Domiciliary Treatment
Benefit (DTB) / Out Patient Department (OPD) expenses for the insured members.

Hospital Cash Benefit (HCB) is a daily benefit payable in case of hospitalization . It can
range from Rs.250/- to Rs.2500/- for the Principal Insured (the person who proposes for
insurance). For the Spouse or the children, the maximum amount of HCB is Rs.1500/-. The
amount of daily benefit doubles in case of hospitalization in ICU. The IDB (Initial Daily
Benefit) is applicable during the first year of risk cover. The amount of daily HCB will
increase @ 5% simple p.a. every year on policy anniversary until it hits a cap of 1.5 times
the initial benefit.

Major Surgical Benefit (MSB): In the event of the insured undergoing one of the major
surgeries defined in the the policy, a lump sum benefit (regardless of the actual costs
incurred) equivalent to the percentage of the sum assured mentioned against that surgery
will be payable. The sum assured for major surgical benefits will be 200 times of the HCB
you choose.

Domiciliary Treatment Benefit (DTB): The Principal Insured can claim an amount
equivalent to the actual expense he or she has incurred in respect of any domiciliary
treatment or to meet the medical expenses incurred over and above the hospital cash/major
surgical benefits in respect of either oneself or the others insured under the policy.
Both HCB and MSB covers are available subject to a waiting period from the
commencement of the risk cover – in respect of each insured member: No death insurance
cover is available under the plan.

All eligible existing family members are to be covered at the beginning (proposal stage)
itself. New members can however be added under certain specified conditions.

Modes of Payment allowed are: Yearly, Half-Yearly, & Monthly (ECS Mode only). The
premiums allocated to purchase units will be strictly invested in a Health Protection Plus
Fund (Income and Growth – Low Risk).

One of the important features of the Plan just like all other health plans of both Life & General Insurance companies that makes these plans doubly attractive is that the premiums paid under the policy are eligible for Tax Rebate under Section 80(D) of Income Tax Act, 1961.

Inflation at 0.57%

Higher for second consecutive week

The official Wholesale Price Index for All Commodities for the week ended 18 April 2009 rose to 230.2 from 228.8 for the previous week. The annual rate of inflation, calculated on point-to-point basis, stood at 0.57% for the week ended 18 April 2009 as compared to 0.26% for the previous week and 8.23 % during the corresponding week of the previous year.

The manufactured product group rose by 0.3 % to 201.6 from 200.9 for the previous week. In this group the index for food products group rose by 1.9 % to 226.0 from 221.8 for the previous week due to higher prices of rice bran oil (11%), khandsari and cotton seed oil (8% each), imported edible oil (6%), gur (5%), sugar and oil cakes (3% each), groundnut oil (2%) and rape & mustard oil (1%). However, the prices of unrefined oil (15%) and gingelly oil (1%) declined. The index for basic metals alloys and metal products group rose by 0.1 % to 255.4 from 255.2 for the previous week due to higher prices of zinc and lead ingots (7% each), zinc ingots (4%) and pipes & tubes (2%). However the index of textile group declined by 0.4 % to 140.4 from 141.0 for the previous week due to lower prices of synthetic yarn (2%) and cotton yarn-hanks and cotton yarn-cones (1% each). However, the prices of hessian and sacking bags (1%) moved up.

The primary articles rose by 1.7 % to 253.2 from 248.9 for the previous week. The index for food articles group rose by 0.6 % to 248.3 from 246.8 for the previous week due to higher prices of tea (7%), urad (5%), condiments & spices (4%), gram and moong (2% each) and fruits and vegetables, bajra, maize, arhar and jowar (1% each). However, the prices of masur (3%) declined. The index for non-food articles also rose by 0.7 % to 232.2 from 230.5 for the previous week due to higher prices of mesta (11%), raw rubber (5%), gingelly seed, rape & mustard seed and groundnut seed (3% each), linseed (2%) and castor seed (1%).

The index for fuel power light and lubricants group rose by 0.1 % to 323.0 from 322.6 for the previous week due to higher prices of aviation turbine fuel (8%) and furnace oil (2%).

The wholesale price index rose for the second consecutive week due to higher prices of primary articles and manufactured products. The increase in food and non-food article index craft an anxiety for the end user, who is facing the real price pressure. In addition to this higher food prices has added stress on consumer price index (CPI) due to its higher weight in CPI. However RBI has projected lower CPI and inflation for the current financial year.

UTI MF declares dividend under fixed income Quarterly Interval Plan

Record date for dividend is 07 May 2009

UTI Mutual Fund has announced dividend under dividend option of UTI Fixed Income Interval Fund - II- Quarterly Interval Plan V. The record date for the declaration of dividend is 07 May 2009.

The quantum of dividend will be 100% of distributable surplus available on the record date on face value of Rs 10 per unit. The NAV for retail plan and institutional plan was recorded at Rs 10.1427 per unit and Rs 10.1471 per unit respectively as on 28 April 2009.

UTI Fixed Income Interval Fund - II- Quarterly Interval Plan V is a debt oriented interval scheme with the investment objective to generate regular income by investment in a portfolio of fixed income securities normally maturing in line with the time profile of the plan.

Birla Sun Life MF declares dividend in FTP - Series AP

Record date for dividend is 04 May 2009

Birla Sun Life Mutual Fund has planned to declare dividend under the retail plan - dividend option of Birla Sun Life Fixed Term Plan- Series AP. The fund house has decided to distribute 100% of distributable surplus on face value of Rs 10 per unit as dividend on the record date of 04 May 2009.

The scheme recorded NAV of Rs 11.2063 per unit under retail plan as on 28 April 2009.

Birla Sun Life Fixed Term Plan - Series AP is a close ended income scheme, with an investment objective to generate current income by investing in a portfolio of fixed income securities maturing normally in line with the duration of the scheme.

Bharti AXA MF revises load structure

With effect from 30 April 2009

Bharti AXA Mutual Fund has revised the load of structure of Bharti AXA Equity Fund and Bharti AXA Tax Advantage Fund, with effect from 30 April 2009.

Bharti AXA Equity Fund:

Accordingly, the scheme will charge an entry load of 2.50%, where the purchase amount is less than Rs 5 crore and entry load is nil for the purchase amount of Rs 5 crore and above. The scheme will charge an exit load of 1.00%, for the investment amount of Rs 5 crore and if redeemed within 6 months from date of allotment. It will not charge any exit load for the redemption after 6 months. It will also not charge any exit load for the investment amount above Rs 5 crore.

Bharti AXA Tax Advantage Fund:

According to the revision the scheme will charge an entry load of 2.50% for the purchase amount less than Rs 2 crore and nil for the purchase amount above or equal to Rs 2 crore under Regular Plan. And under Eco Plan the scheme will charge an entry load of 2.50% of the applicable NAV.

The scheme will not charge any exit load.

ICICI Pru Long Term Plan introduces premium and premium plus options

With effect from 04 May 2009

ICICI Prudential Mutual Fund has introduced premium and premium plus options under ICICI Pru Long Term Plan, with effect from 04 May 2009.

The salient features of the premium and premium plus options are as follows:

Minimum Application Amount: Premium Option: Rs 10 lakh and in multiples of Re 1 thereafter. Premium Plus Option: Rs 1 crore and in multiple of Re 1 thereafter.

Minimum Additional Investment Amount: Rs 1000

Minimum Redemption Amount: Rs 1000

Sub Option available: Growth, Dividend sub-option with Dividend payout and dividend reinvestment facility.

Entry Load: Nil

Exit Load: Nil

The existing option will be called as regular option, having dividend and cumulative option, sub-options with dividend payout and dividend re-investment facilities.

The default option under ICICI Prudential Long Tern Plan shall be regular option with growth option as default sub-option.

ICICI Pru MF announces changes in application and redemption amount

With effect from 04 May 2009

ICICI Prudential Mutual Fund has announced changes in application and redemption amount in ICICI Prudential Flexible Income Plan - Premium Option, ICICI Prudential Floating Rate Plan - Plan A, ICICI Prudential Floating Rate Plan - Plan B and ICICI Prudential Long Term Plan - Plan, with effect from 04 May 2009.

ICICI Prudential Flexible Income Plan - Premium Option

The minimum application amount for all fresh purchases/switch into Premium option of ICICI Prudential Flexible Income Plan will be Rs.10 lakh and in multiples of Re. 1 thereafter.

ICICI Prudential Floating Rate Plan - A

The minimum application amount for all fresh purchases/switch into ICICI Prudential Floating Rate Plan - Plan A will be Rs.15,000 and in multiples of Re. 1 thereafter.

ICICI Prudential Floating Rate Plan - Plan B

The minimum application amount for all fresh purchases/switch into ICICI Prudential Floating Rate Plan - Plan B will be Rs.10 lakh and in multiples of Re. 1 thereafter.

ICICI Prudential Long Term Plan -Regular Plan

The additional subscription amount and minimum redemption amount under ICICI Prudential Long Term Plan - Regular Plan will be 1,000 and in multiples of Re. 1 thereafter.

ICICI Pru MF declares dividend for QIP

Record date for dividend is 7 May 2009

ICICI Prudential Mutual Fund has declared dividend under the dividend option of ICICI Prudential Interval Fund II -Quarterly Interval Plan B. The fund house has decided to distribute dividend up to 100% the distributable surplus of the scheme on the face value of Rs 10 per unit as dividend on the record date of 7 May 2009.

The scheme recorded a NAV of Rs 10.1868 per unit and Rs 10.1888 per unit under the retail and institutional options respectively as on 28 April 2009.

ICICI Prudential Interval Fund II - Quarterly Interval Plan B is a debt oriented interval scheme with an investment objective to generate optimal returns consistent with moderate levels of risk and liquidity by investing in debt securities and money market securities.

ICICI Pru MF declares dividend for HIP II

Record date for dividend is 7 May 2009

ICICI Prudential Mutual Fund has declared dividend under the dividend option of ICICI Prudential Interval Fund - Half yearly Interval Plan II. The fund house has decided to distribute dividend up to 100% the distributable surplus of the scheme on the face value of Rs 10 per unit as dividend on the record date of 7 May 2009.

The scheme recorded a NAV of Rs 10.15366 per unit as on 28 April 2009.

ICICI Prudential Interval Fund - Half yearly Interval Plan II is a debt oriented interval scheme with an investment objective to generate optimal returns consistent with moderate levels of risk and liquidity by investing in debt securities and money market securities.

Investment norms for New Pension Scheme finalized

Paving the way for the New Pension Scheme (NPS) from this Friday, the Pension Fund Regulatory and Development Authority (PFRDA) On Wednesday announced investment guidelines for contributory plans.

Following recommendations from the Deepak Parekh-headed Expert Group and taking into account comments from the public, PFRDA has categorised NPS investments into three asset classes – E (equity), C (corporate paper) and G (government securities).

PFRDA has appointed State Bank of India, UTI, IDFC, ICICI Prudential Life Insurance, Kotak Mahindra and Reliance Mutual Fund as the fund managers for NPS. These players have to set up separate companies to manage the business. All players, barring Kotak Mahindra, have signed the requisite agreements, with the only remaining fund manager likely to sign the pact tomorrow.

As per the guidelines, investments in E scheme would allocate assets into index funds that replicate the portfolio of a particular index, such as the BSE’s 30-share Sensex or the NSE’s Nifty 50 index.

The G scheme would allow investors to park money in Government of India and State Government bonds. For this category, the Expert Group had recommended liquid funds of asset management companies (AMCs) and fixed deposits of banks that have a net worth of over Rs 500 crore, a capital adequacy of at least 9 per cent and whose proportion of net non-performing assets against net advances is below 5 per cent.

The C scheme would allocate investments in liquid funds of AMCs with average total assets under management of at least Rs 5,000 crore over the last six months. The scheme would also park assets in fixed deposits of scheduled commercial banks that fulfil the given criteria suggested by the Expert Group.

Further, the C class assets would also include debt securities with a maturity of at least three years. These instruments include debt papers issued by corporates, banks and financial institutions. PFRDA said that at least 75 per cent of the investment in this category has to be made in instruments having an investment grade rating from at least one credit rating agency.

The C class investments also allow allocations for credit-rated municipal bonds, infrastructure bonds, PSU bonds and credit-rated public financial institutions.

The funds of those investors who do not specify an asset class would be routed to the ‘Auto Choice’ scheme by default.

Under this option, 50 per cent of the investments would be allocated to E category assets, 20 per cent would be invested in G category and the rest in the C class of assets for investors up to the age of 35.

For investors at the age of 55 years, 10 per cent of the investments would go into the E class, 80 per cent would be invested in the G category and the rest 10 per cent would be parked in the C class of assets, under the auto choice option.

source: Business Standard

Travel Insurance

THINK TRAVEL INSURANCE

Holidays are meant to be fun and entertaining! However, one cannot rule out risks such as accidents, illness, missed flights or lost baggage. What can you as a traveler claim for travel insurance? Read on and find out.

Whether traveling for business, pleasure or studies, the severity of these risks and their financial implications can be devastating. Travel insurance is the right answer to help us wade through any such situation in an alien country. Travel Insurance provides protection to the travelers against the wide range of unforeseen risks and perils, all under one single policy. ICICI Lombard, Tata AIG, Bajaj Allianz, IFFCO Tokio - there are a number of companies that offer travel insurance.

Why Travel Insurance a must?

You will always need health insurance when you travel. You cannot take the risk of traveling without proper coverage and dealing with

unforeseen incidents such as accidents or serious injuries. Especially if you are traveling with children, you will need to take extra care to ensure that you have arranged for adequate travel insurance. Today, companies are offering competitive deals on travel insurance.

What is covered?

Some common benefits offered by Indian insurers include:

1. Accidental Death: Covers the insured in case of loss of life in an accident.

2. Permanent Disablement: Pays a benefit if the insured is permanently disabled in an accident.

3. Emergency Medical Expenses: Reimburses the insured for the expenses incurred for an accident or illness while overseas only.

4. Emergency Medical Expenses (accident only): Reimburses the insured for expenses incurred for an accident while traveling in India only.

5. Emergency Travel Benefits: Includes emergency medical transport, medical/body repatriation, location and transfer of medication and/or medical by-products, emergency travel expenses for a family member and an insured person's child, or a replacement colleague.

6. Baggage Delay: Provides an amount for emergency purchase.

7. Baggage Loss: Pays for replacement of lost baggage, personal documents or personal effects.

8. Loss Of Passport: Covers reasonable and necessary expenses to obtain a duplicate passport or valid travel document.

9. Flight Delay: Pays a benefit for each hour if the insured's flight is delayed.

10. Hijacking: Pays a benefit for every six hours if the insured is held on a hijacked common carrier.

11. Trip Cancellation: Pays travel and/or accommodation expenses if the insured's trip is cancelled.

12. Trip Interruption: Pays travel and/or accommodation expenses if the insured's trip is interrupted.

13. Frequent Flyer Interruption: Emergency Travel: Pays for the costs of a first class train fare or economy class air fare to return home upon interruption of travel arrangements made with a recognized frequent flyer programme.

14. Contingency Travel Benefit: Pays for reimbursement of coffin expenses, legal assistance following an automobile accident, emergency hotel accommodation and/or emergency hotel extension on occurrence of a contingency covered in policy.

15. Assistance Provider Services: Helps with emergency medical transport or repatriation, related services, as well as advice on pre-departure information such as visa requirements.

Some companies also provide benefits like Emergency Cash Advance (would include delivery charges and also something like Golfer's Hole-in-one).

Bullion metals end lower

Swine flu concerns take precious metals lower

Precious metals (gold and silver) ended lower on Tuesday, 28 April, 2009. They traded in the red for the entire session. Prices fell as worries about the current swine flu swept across the world today.

Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.

On Tuesday, Comex Gold for June delivery lost $14.6 (1.6%) to close at $893.6 an ounce on the New York Mercantile Exchange. Last week, gold ended higher by 5.3%. Year to date, gold prices are higher by 0.9%.

For the month of March, gold fell 2.1%, down for the first month in five. But the metal gained 4.3% in the first quarter. Before March, for the month of February, gold ended higher by 7.4%. For January, 2009, gold had gained 3.9%.

On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (15%) since then.

On Tuesday, Comex silver futures for May delivery lost 55.5 cents (4.3%) at $12.4 an ounce. Year to date, silver has climbed 9.2% this year. For 2008, silver had lost 24%.

The deadly swine-flu outbreak, originated in Mexico, has fueled fears of a repeat of the SARS epidemic that had ravaged Asia. In Mexico, more than 1,641 people have contracted the swine flu and 103 people have died. The World Health Organization raised its swine-flu threat level on Tuesday, which now stands just two steps short of a full pandemic. The WHO also said it was now too late to contain the virus.

The IMF forecast earlier during the month a 1.3% decline in the world economy, compared with a 0.5% expansion estimated in January, and said growth will be slower next year than previously expected. As per the report, the UK will see its economy shrink by 4.1%, Japan by 6.2%, and the U.S. economy is expected to decline by 2.8%

In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.

Last year, the weakening dollar and higher global demand for raw materials had led to records for commodities including gold. Gold reached a record in March 2008 as a U.S. housing slump and credit crisis spurred the Federal Reserve to slash borrowing costs. In the last move, the Federal Reserve has cuts its target bank lending rate to 0.25% from 5.25% in September, 2007. The Fed did it in nine steps.

Prior to 2008, gold had witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. Silver had climbed 16% in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.

At the MCX, gold prices for June delivery closed lower by Rs 195 (1.3%) at Rs 14,515 per 10 grams. Prices rose to a high of Rs 14,691 per 10 grams and fell to a low of Rs 14,459 per 10 grams during the day's trading.

At the MCX, silver prices for May delivery closed Rs 580 (2.7%) lower at Rs 20,879/Kg. Prices opened at Rs 21,270/kg and fell to a low of Rs 20,737/Kg during the day's trading.

Crude drops below $50

Crude ends lower for second straight day

Crude oil ended below $50 for the second straight day on Tuesday, 28 April, 2009. Prices fell as fears gripped the overall continent today that the current swine flu might hamper economic recovery from the ongoing global recession.

On Tuesday, crude-oil futures for light sweet crude for June delivery closed at $49.92/barrel (lower by $0.22 or 0.4%) on the New York Mercantile Exchange. Last week, crude ended higher by 2.4%.

Crude ended March trading up 10.9%. It rallied 11.3% in the first quarter. For the month of February, crude prices had ended higher by 1.5%.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 68.8% since then. Year to date, in 2009, crude prices are higher by 9.2%. On a yearly basis, crude prices are lower by 53%.

The deadly swine-flu outbreak, originated in Mexico, has fueled fears of a repeat of the SARS epidemic that had ravaged Asia. In Mexico, more than 1,641 people have contracted the swine flu and 103 people have died. The World Health Organization raised its swine-flu threat level on Tuesday, which now stands just two steps short of a full pandemic. The WHO also said it was now too late to contain the virus.

Also at the Nymex on Tuesday, May reformulated gasoline fell 0.88 cent, or 0.6%, to $1.3995 a gallon and May heating oil gave up 0.62 cent, or 0.5%, to $1.3167 a gallon.

The May contract on natural gas gained 1.7 cents, or 0.5%, to $3.27 per million British thermal units. The government's update on gas in storage will come out Thursday morning.

Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.

At the MCX, crude oil for May delivery closed at Rs 2,499/barrel, higher by Rs 1 (0.04%) against previous day's close. Natural gas for April delivery closed at Rs 172.6/mmbtu, higher by Rs 3.7/mmbtu (2.1%).

FIIs in selling mode

Outflow of Rs 173.90 crore on 28 April 2009

Foreign institutional investors (FIIs) sold shares worth a net Rs 173.90 crore on Tuesday, 28 April 2009, as against a huge inflow of Rs 1839.70 crore on Monday, 27 April 2009.

FII outflow of Rs 173.90 crore on 28 April 2009 was a result of gross purchases Rs 1544.10 crore and gross sales Rs 1718 crore. The BSE Sensex lost 370.10 points or 3.25% to 11,001.75 on that day.

FII inflow in April 2009 totaled Rs 7,039.90 crore (till 28 April 2009). FII inflow in calendar year 2009 totaled Rs 368.10 crore (till 28 April 2009).

There are a total of 1639 foreign funds registered with the Securities & Exchange Board of India (Sebi).

Max New York Life strategic tie-up with Peerless

To distribute Max Vijay in South India

Max New York Life Insurance has announced its strategic tie-up with Peerless Developers for distribution of Max Vijay, its innovative insurance cum savings business model for the underserved, at a press conference organized in Chennai on 29 April 2009. This ties-up will enable MAX New York Life to significantly expand the distribution for Max Vijay across the country. Both the companies announced that to start with they would cover the 29 offices of Peerless across Tamil Nadu, Karnataka and Andhra Pradesh. This would be expanded to cover all 35 offices of Peerless in South India, by end of June 2009.

Rajit Mehta, COO, Max New York Life Insurance, said, “Peerless is the largest corporate agency relationship for Max New York Life. South India is one of the strongest performing regions, and contributes 33.99% (FY 08-09) to our total sales through Peerless. With this new distribution tie-up with Peerless, we see significant value-addition to achieving our business and social objectives for Max Vijay. We are confident that this collaborative effort will make a significant impact on the sales of Max Vijay, by leveraging the distribution strength, trust and customer confidence enjoyed by Peerless and the unmatched flexibility and innovation offered by Max Vijay.”

Max Vijay is a truly unique product that provides people 10 year coverage, financial protection and the ability to save even small accounts. The policy is lapse free as long as there is sufficient value in the policy account to meet the charges. To really enjoy the benefits of this product and secure better economic future for their families, customers should regularity invest in their Max Vijay accounts” he added.

Jayanta Roy, Director – Financial Products Distribution, The peerless General Finance & Investment Company said, “Peerless is known as the savings company for the common man of India. Today, the same company under the name Peerless smart money is offering a simple product to its customers that will inculcate the savings habit in his family and also protect his family from any unforeseen circumstances through life insurance cover. Max Vijay is the product for AAM ADMI. We are very excited about distributing Max Vijay. With its unmatched combination of innovation, flexibility, savings and security, Max Vijay will attract and excite a large portion of our base of over 40 million customers. We are confident of achieving sales of over 5 lakh Max Vijay policies in the very first year.”

Max New York Life Insurance developed "Max Vijay", a business model designed to serve 100 million low-income Indian households by improving access to benefits of life insurance and minimizing transaction costs. Max Vijay was awarded the "Golden Peacock Innovation Award 2008" for its unique product, distribution and service strategy.

News Flash

ICICI Bank Needs to Raise $1 Billion for Repayments, Chanda Kochhar Says ICICI Bank Ltd., India’s second- largest by assets, needs to raise $1 billion to cover half the liabilities at its global operations coming due this year, chief executive officer designate Chanda Kochhar said.

Sensex Rises to Six-Month High on India Economic Outlook; State Bank Gains Indian stocks rose, lifting the benchmark index to a six-month high, led by banks and energy producers on expectation a bigger crop harvest this year helped by early rainfall will boost economic growth.

Bharti Profit Gains 21 Percent on Record User Additions; Beats Estimates Bharti Airtel Ltd., India’s largest mobile-phone operator, reported fourth-quarter profit rose 21 percent after the company added a record 8.3 million subscribers.

India Sugar Production to Miss Forecast Next Year, Widening Global Deficit India, the world’s largest user of sugar, may produce less of the sweetener next year than forecast, forcing the South Asian nation to import for a second year, the nation’s second-biggest mill said.

Rupee Strengthens Most in a Week on Global Economic Outlook, Fund Inflows India’s rupee advanced for the first time this week after latest data showed equity purchases by foreign funds rose to the most since August.

India's Key Stock Index May Decline 16% by End-2009, Morgan Stanley Says India’s key stock index, the second-best performer in Asia this month, may drop 16 percent by the end of the year on concern elections will fail to bring in a government that can tackle slowing economic growth, Morgan Stanley said.

Bonds Drop on Concern Investors Selling Before Debt Auction, Long Weekend Indian bonds fell for a second day on speculation some investors sold part of their holdings to raise cash for purchases at bond auctions in coming weeks.

Stocks in U.S. Advance as DreamWorks, Time Warner Earnings Beat Estimates U.S. stocks rose, driving the Standard & Poor’s 500 Index toward a three-month high, as companies beating profit forecasts outnumbered those that trailed by 10-to-1 and investors speculated bank losses peaked.

U.S. Economy Shrinks More Than Forecast in Worst Recession in Half Century The U.S. economy plunged again in the first quarter, making this the worst recession in at least half a century.

Volcker Says U.S. Economy Is `Leveling Off,' No Need for Further Stimulus The U.S. economy is “leveling off at a low level” and doesn’t need a second fiscal stimulus package, said former Federal Reserve Chairman Paul Volcker, one of President Barack Obama’s top economic advisers.

Mack, Lewis Blame TARP Pay Restrictions for Departure of Some Executives John Mack and Kenneth Lewis, the chief executive officers of Morgan Stanley and Bank of America Corp., said pay limits tied to federal rescue funds have prompted some top employees to leave the companies.

Fed Finds at Least Six of 19 Biggest U.S. Banks Need to Raise More Capital At least six of the 19 largest U.S. banks require additional capital, according to preliminary results of government stress tests, people briefed on the matter said.

Derivatives Hit Austrian Railroad With Record Loss as Milan Seizes Assets OeBB-Holding AG, Austria’s state- owned railroad company, reported a record 966 million-euro ($1.3 billion) loss after writing down the value of derivatives that went awry.

Enterprise Products' $2.8 Billion Offer for Teppco Is Rejected as Too Low Enterprise Products Partners LP offered to buy Teppco Partners LP in a $2.8 billion transaction that would combine pipeline partnerships controlled by Houston billionaire Dan Duncan. Teppco said the bid is too low.

source: Bloomberg

Reliance MF announces dividend in FHF-VI

Record date for dividend is 04 May 2009

Reliance Mutual Fund has decided 04 May 2009 as the record date for dividend distribution under the following schemes. The fund house has decided to distribute 100% of distributable surplus as dividend on the record date. The schemes are:

Reliance Fixed Horizon Fund-VI-Series 8-Retail Plan recorded NAV of 10.1630 per unit as on 27 April 2009.

Reliance Fixed Horizon Fund- VI-Series 8- Institutional Plan recorded NAV of 11.2729 per unit as on 27 April 2009.

Reliance Fixed Horizon Fund-VI is a close ended income scheme with an investment objective to seek to generate regular returns and growth of capital by investing in a diversified portfolio of central and state government securities and other fixed income/debt securities normally maturing in line with the time profile of the scheme with the objective of limiting interest rate volatility.

Reliance MF announces dividend under FHF

Record date for dividend is 04 May 2009

Reliance Mutual Fund has announced 04 May 2009 as the record to distribute dividend under the retail and institutional plan of Reliance Fixed Horizon Fund Plan C – Series III.

The fund has decided to distribute 100% distributable surplus available as on the record date as dividend.

The scheme recorded NAV of Rs 10.1693 per unit under regular plan and Rs 12.2963 per unit under institutional plan.

Reliance Fixed Horizon Fund Plan C – Series III is a close ended income scheme with an investment objective to seek to generate regular returns and growth of capital by investing in a diversified portfolio of central and state government securities and other fixed income/debt securities normally maturing in line with the time profile of the scheme with the objective of limiting interest rate volatility.

SBI MF declares dividend for 18 Months debt fund

Record date for dividend is 04 May 2009

SBI Mutual Fund has declared dividend under dividend option of retail and institutional option in SBI Debt Fund Series- 18 Months – 2. The record date for the dividend is 04 May 2009.

The fund has decided to distribute 100% distributable surplus available as on the record date as dividend on the face value of Rs 10 per unit. The NAV under retail option of the scheme was at Rs 10.7286 per unit and institutional option was at Rs 10.7454 per unit as on 22 April 2009.

SBI Debt Fund Series is a close-ended debt scheme with an objective to provide regular income, liquidity and returns to the investors through investments in a portfolio comprising debt instruments such as government securities, AAA/AA+ bonds and money market instruments.

HDFC MF declares dividend in FMP 14M February 2008

Record date for dividend is 04 May 2009

HDFC Mutual Fund has approved 04 May 2009 as the record date for declaration of dividend on the face value of Rs 10 per unit under normal and quarterly dividend option of retail plan in HDFC Fixed Maturity Plan 14M February 2008 a fixed maturity plan under HDFC Fixed Maturity Plans-Series VII, a close-ended income scheme.

The fund house has decided to distribute 100% of distributable surplus as on the record date as dividend. NAV of the retail plan under normal dividend option was at Rs 11.0850 per unit and quarterly dividend option was at Rs 11.7852 per unit as on 27 April 2009.

The investment objective of the scheme is to generate regular income through investments in debt/money market instruments and government securities.

Canara Robeco MF ceases its Quarterly Interval Scheme

With effect from 28 April 2009

Canara Robeco Mutual Fund has wound up Canara Robeco Quarterly Interval Scheme (including options thereunder) with effect from 28 April 2009.

The fund house will cease to carry on any business activities in respect of the plan. It has also ceased to create or cancel units in the plan and issue units in the plans.

The investors whose names appear in the register of members as on 28 April 2009 will be eligible to receive the residual payment in proportion to their unit holding based on the NAV drawn for the purpose.

Kotak MF declares dividend

Record date for dividend is 4 May 2009

Kotak Mutual Fund has announced 4 May 2009 as the record date for dividend distribution in the dividend option of Kotak FMP 12M Series 3. The fund house has decided to distribute 100% distributable surplus as dividend on the record date.

The face value of the scheme is Rs 10 per unit and the scheme recorded NAV of Rs 10.5561 per unit under the retail plan (dividend option) and Rs 10.5563 per unit under the institutional plan (dividend option) as on 27 April 2009.

Kotak FMP 12M Series 3 is a close ended debt scheme. The investment objective of the scheme is to generate returns through investments in debt and money market instruments with a view to significantly reduce the interest rate risk.

Benchmark MF revises exit load Structure

With effect from 4 May 2009

Benchmark Mutual Fund has approved revision in the exit load structure under Benchmark Equity & derivative opportunities Fund, with effect from 4 May 2009.

Accordingly, the scheme will charge an exit load of 0.75% if the units are redeemed within 3 months from the date of allotment. 0.50% will be charged if units are redeemed after 3 months but within 6 months from the date of allotment, 0.25%, if the units are redeemed after 6 months but within 9 months from the date of allotment. The scheme will not charge any exit if the units are redeemed after 9 months from the date of allotment.

Benchmark Equity & derivative opportunities Fund is an open ended equity scheme to provide absolute returns by taking advantage of opportunities in the underlying cash and derivative markets, and through deployment of surplus cash in fixed income securities.

Mutual funds step up selling

Sales worth Rs 372.50 crore on 28 April 2009

Mutual funds (MFs) sold shares worth a net Rs 372.50 crore on Tuesday, 28 April 2009, much higher than Rs 24.10 crore on Monday, 27 April 2009.

MFs' net outflow of Rs 372.50 crore on 28 April 2009 was a result of gross purchases Rs 482.40 crore and gross sales Rs 854.90 crore. The BSE Sensex lost 370.10 points or 3.25% to 11,001.75 on that day.

MFs were net buyer of shares worth Rs 18 crore in this month, till 28 April 2009.

Swine flu concerns take crude lower

Crude manages to recover partly from intra day low

Crude oil ended substantially lower on Monday, 27 April, 2009. Prices fell as fears gripped the overall continent today that the current swine flu might hamper economic recovery from the ongoing global recession.

On Monday, crude-oil futures for light sweet crude for June delivery closed at $50.14/barrel (lower by $1.41 or 2.7%) on the New York Mercantile Exchange. Earlier crude slipped by almost 7% around $48. Last week, crude ended higher by 2.4%.

Crude ended March trading up 10.9%. It rallied 11.3% in the first quarter. For the month of February, crude prices had ended higher by 1.5%.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 68.8% since then. Year to date, in 2009, crude prices are higher by 9.6%. On a yearly basis, crude prices are lower by 53%.

The deadly swine-flu outbreak, originated in Mexico, has fueled fears of a repeat of the SARS epidemic that had ravaged Asia. In Mexico, more than 1,641 people have contracted the swine flu and 103 people have died.

Also at the Nymex on Monday, May reformulated gasoline fell 3.92 cents, or 2.7%, to $1.4083 a gallon and May heating oil dropped 4.54 cents, or 3.3%, to $1.3229 a gallon.

May natural-gas futures fell 4.4 cents, or 1.3%, to $3.253 per million British thermal units.

Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.

Bullion metals end mixed

Yellow metal trades in red for entire day but silver gains

Precious metals (gold) ended lower on Monday, 27 April, 2009. They traded in the red for the entire session. Prices fell as worries about the current swine flu swept across the world today. But silver rose today.

Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.

On Monday, Comex Gold for June delivery lost $5.9 (0.8%) to close at $908.2 an ounce on the New York Mercantile Exchange. Last week, gold ended higher by 5.3%. Year to date, gold prices are higher by 2.5%.

For the month of March, gold fell 2.1%, down for the first month in five. But the metal gained 4.3% in the first quarter. Before March, for the month of February, gold ended higher by 7.4%. For January, 2009, gold had gained 3.9%.

On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (15%) since then.

On Monday, Comex silver futures for May delivery gained 3.5 cents (0.3%) at $12.955 an ounce. Year to date, silver has climbed 13.5% this year. For 2008, silver had lost 24%.

The deadly swine-flu outbreak, originated in Mexico, has fueled fears of a repeat of the SARS epidemic that had ravaged Asia. In Mexico, more than 1,641 people have contracted the swine flu and 103 people have died.

The IMF forecast earlier during the month a 1.3% decline in the world economy, compared with a 0.5% expansion estimated in January, and said growth will be slower next year than previously expected. As per the report, the UK will see its economy shrink by 4.1%, Japan by 6.2%, and the U.S. economy is expected to decline by 2.8%

In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.

FIIs are now net buyers in calendar 2009

Inflow in April 2009 crosses Rs 7000 crore

Foreign institutional investors (FIIs) bought shares worth a net Rs 1839.70 crore on Monday, 27 April 2009, much higher than Rs 513.50 crore on Friday, 24 April 2009.

FII inflow of Rs 1839.70 crore on 27 April 2009 was a result of gross purchases Rs 3661.80 crore and gross sales Rs 1822.10 crore. The BSE Sensex gained 42.80 or 0.38% to 11,371.85 on that day.

FII inflow in April 2009 totaled Rs 7,213.60 crore (till 27 April 2009).

FII inflow in calendar year 2009 totaled Rs 542 crore (till 27 April 2009). With heavy buying in the last two months, foreign funds have turned net buyers in calendar 2009. There was heavy outflow by foreign funds in the first two months of calendar 2009

There are a total of 1639 foreign funds registered with the Securities & Exchange Board of India (Sebi).

News Flash

Asian Stocks Fall on Report U.S. Banks Are Found to Require More Capital Asian stocks fell the most in three weeks after the Wall Street Journal reported Bank of America Corp. and Citigroup Inc. were told by U.S. regulators that they need more capital.

Sterlite Fourth-Quarter Profit Falls 55 Percent on Decline in Zinc Prices Sterlite Industries (India) Ltd., the nation’s largest copper and zinc producer, reported a drop in profit for the third straight quarter after copper-refining fees failed to offset a decline in zinc prices.

Monsoon Rains May Make Early Onset, Spurring Farmers to Advance Plantings India’s monsoon, forecast to be near normal this year, may arrive a week earlier than the normal June 1 date, boosting prospects for an early planting of crops such as rice, oilseeds and cotton.

Benchmark Stock Index Ends Three Days of Gains; Bharti, ICICI Pace Losses India’s Sensitive index declined, snapping a three-day, 5.1 percent advance, as investors judged the gains that drove the gauge to a six-month high excessive.

Rupee Weakens for Second Day on Speculation Importers Purchasing Dollars India’s rupee weakened for a second day on speculation domestic companies are stepping up dollar purchases to meet month-end debt and import payments.

Ten-Year Yield Holds at One-Week High as Notes Pare Gains on Debt Supply India’s 10-year bond yields held at a one-week high on speculation rising government debt sales will damp demand for the securities.

Uttar Pradesh, Andhra Pradesh, Tamil Nadu May Influence Polls: India Votes Voters in the states of Uttar Pradesh, Andhra Pradesh and Tamil Nadu, home to about a third of India’s total parliamentary seats, may decide who forms the government in the world’s biggest democracy.

Oil Falls for Second Day on Concern Swine Flu Outbreak Will Slow Recovery Crude oil fell for a second day on concern that fuel demand will drop as the swine-flu outbreak curtails travel and delays a recovery from the global recession.

Consumer Confidence in U.S. Jumps Most Since 2005 Following Stock Recovery Consumer confidence jumped more than forecast in April as stocks rallied, mortgage rates dropped and Americans thought more jobs will become available, adding to signs the recession may be easing.

U.S. Stocks Erase Losses as Consumer Confidence Climbs More Than Forecast U.S. stocks drifted between gains and losses after a bigger-than-expected increase in consumer confidence offset concern that banks need more capital and the swine-flu outbreak will thwart an economic recovery.

Home-Price Drop Moderates in 20 U.S. Cities, May Be Sign of Stabilization The decline in home prices in 20 major U.S. cities slowed in February for the first time since 2007, amplifying signals that the market may be stabilizing.

IBM Increases Quarterly Dividend by 10%, Plans $3 Billion Share Repurchase International Business Machines Corp., the world’s biggest computer-services provider, increased its dividend by 10 percent and boosted its stock buyback plan by $3 billion.

Italy Police Seize $620 Million of Assets From Banks Arranging Milan Swaps Milan’s financial police seized 476 million euros ($620 million) of assets belonging to UBS AG, Deutsche Bank AG, JPMorgan Chase & Co. and Depfa Bank Plc amid a probe into alleged fraud linked to the sale of derivatives.

Bristol-Myers Profit Tops Estimates on Lower Costs, Abilify, Plavix Sales Bristol-Myers Squibb Co.’s earnings beat analysts’ estimates on lower costs from job cuts and outsourcing and higher sales of mood stabilizing drug Abilify and blood thinner Plavix.

Motor Trend Publisher Source Interlink, Owned by Burkle, Files Bankruptcy Source Interlink Cos., the publisher of Motor Trend, Hot Rod and Street Chopper magazines controlled by billionaire Ron Burkle’s Yucaipa Cos., sought bankruptcy protection as it moves to become a private company.

source: Bloomberg

Taurus MF announces changes

With effect from 28 April 2009

Taurus Mutual Fund has announced the changes in the minimum application amount and additional subscription amount of retail, institutional and super institutional plan in Taurus Short Term Bond Fund and Taurus Liquid Fund, with effect from 28 April 2009.

Taurus Short Term Bond Fund

The minimum application amount under institutional plan has increased to Rs 1 crore and in multiples of Rs 1000 thereof from Rs 10 lakh and in multiple of Re 1 thereafter. And under super institutional plan the minimum application amount has increased to Rs 5 crore and in multiple of Rs 1000 thereof from Rs 50 lakh and in multiple of Rs 1 thereafter.

The additional subscription amount of institutional plan and super institutional plan has revised to Rs 1 lakh and in multiple of Rs 1000 from Rs 1 lakh and in multiple of Re 1.

Taurus Liquid Fund

The minimum application amount under institutional plan has revised to Rs 1 crore and in multiples of Rs 1000 thereof from Rs 1 crore and in multiple of Rs 1 lakh thereof. And under super institutional plan the minimum application amount has decreased to Rs 5 crore and in multiple of Rs 1000 thereof from Rs 10 crore and in multiple of Rs 10 lakh thereof.

The additional subscription amount of retail plan has revised to Rs 1000 and in multiple of Rs 1000 from Rs 1000 and in minimum Re 1 thereof, institutional plan revised to Rs 1 lakh and in multiple of Rs 1000 from Rs 1 lakh and in minimum Re 1 thereof and super institutional plan has decreased to Rs 1 lakh and in multiple of Rs 1000 from Rs 10 lakh and in multiple of Re 1.

Gold manages to hang around $915; Faces Stiff Resistance

Strong demand from India on account of Akshya Tritiya keeps the downside limited

Gold managed to hold on in Asia and crept up marginally to hit a high of $919.70 an ounce for the COMEX June futures in the electronic session. Weakness in equities and strong demand consideration from India, the largest Gold buying nation supported the commodity. India celebrated Akshya Tritiya today and the demand of the yellow metal has been strong from the retail buyers as well as the people who seek it as an alternate investment avenue.

However, the metal slipped in London as Euro slipped a bit, giving up on expectations that more rate cuts might be about to follow from the European Central Bank (ECB) in the near term. The ECB governing Council Member Mario Draghi Saturday said that, although there were some positive signs for a global economy mired in recession, deflation remains one of the risks.

"The risks are of deflation, of a worsening in the fall in output and a rise in unemployment," Draghi said when asked to specify what finance officials from the Group of Seven leading economies saw as risks to the world economic outlook.

The ECB is widely expected to cut the interest rate from a historical low of 1.25% on May 7th, when it will hold its next policy meet.

The single currency dipped from levels above 1.3200 to 1.3123 right now. The currency pared the last three session's gains to edge down as traders expected a narrowing interest rate differential and ideas that the US economy might have bottomed out in the last quarter of 2008. The US GDP figures for the first three months of the current years are widely expected to come in below the bizarre contraction of the economy in the last quarter of 2008.

Things are looking up for the global economy. G7 finance officials said in a statement Friday that economic activity should begin to recover later this year amid a continued weak outlook, warning that downside risks persist. However, a recovery of this sort, with the money printing presses running in full wing in US and UK is bound to lead to a massive inflationary spiral, supporting Gold and the entire precious metals pack. COMEX Gold currently trades at $913.40, down 70 cents from the previous close.

MCX Gold futures for June trade at Rs 14786, up Rs 162 or 1.11% from the previous close with 8% increase in the open interest.

Weak dollar and strong rally take crude higher

Crude ends higher for fourth straight day

Crude oil ended higher once again on Friday, 24 April, 2009. Prices rose due to the week dollar and a batch of strong earning reports and a strong rally at Wall Street.

On Friday, crude-oil futures for light sweet crude for June delivery closed at $51.55/barrel (higher by $1.93 or 3.9%) on the New York Mercantile Exchange. For the week, crude ended higher by 2.4%.

Crude ended March trading up 10.9%. It rallied 11.3% in the first quarter. For the month of February, crude prices had ended higher by 1.5%.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 68.8% since then. Year to date, in 2009, crude prices are higher by 12.3%. On a yearly basis, crude prices are lower by 53%.

Earning reports dominated on Friday. American reported better-than-expected earnings. In the tech sector, Microsoft reported earnings that matched expectations. Even Ford posted a loss that wasn't quite as severe as many had expected.

EIA reported earlier during the week that crude inventories increased 3.7 million barrels (against an expected 3 million barrels) to 370.6 million barrels last week for the week ended 17 April, 2009, the highest level since September 1990. U.S. refineries operated at 83.4% of their operable capacity last week, higher than a week ago but still in a low range.

EIA had also reported that gasoline inventories rose 800,000 barrels and distillate stockpiles, which include heating oil and diesel, rose 2.7 million barrels. Market had expected a decline in both gasoline and distillate inventories. Total demand for petroleum products in the past four weeks fell 6.5% from a year ago. Among them, gasoline demand fell 0.4% while distillate consumption slumped 9.4%.

Also at the Nymex on Friday, May reformulated gasoline rose 4.6 cents, or 3.2%, to $1.4475 a gallon. May heating oil gained 5.04 cents, or 3.8%, to $1.3683 a gallon.

May natural-gas futures fell to $3.286 per million British thermal unit.

Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.

FIIs continue buying

Inflow of Rs 513.50 crore on 24 April 2009

Foreign institutional investors (FIIs) bought shares worth a net Rs 513.50 crore on Friday, 24 April 2009, higher than Rs 311.60 crore on Thursday, 23 April 2009.

FII inflow of Rs 513.50 crore on 24 April 2009 was a result of gross purchases Rs 1948.40 crore and gross sales Rs 1434.90 crore. The BSE Sensex gained 194.06 points or 1.74% to 11,329.05 on that day.

FII inflow in April 2009 totaled Rs 5,373.90 crore (till 24 April 2009). FII outflow in calendar year 2009 totaled Rs 1,297.70 crore (till 24 April 2009).

There are a total of 1639 foreign funds registered with the Securities & Exchange Board of India (Sebi).

News Flash

Asian Airline, Hog-Related Stocks Decline on Swine Flu; Drugmakers Advance Airlines and meat-processing companies slumped in Asia on concern the growing number of swine-flu cases in the U.S. and Mexico will slow a recovery in the global economy and hurt earnings. Medical shares gained.

Cipla Can Supply 1.5 Million Doses of Generic Tamiflu to Fight Swine Flu Cipla Ltd., India’s second-biggest drugmaker by market value, said it can supply 1.5 million doses of generic Tamiflu drugs to help fight an outbreak of swine flu.

Sensitive Index Advances for a Third Day; ICICI Climbs on Goldman Upgrade India’s Sensitive index rose for a third day. ICICI Bank Ltd., the nation’s second-largest by assets, advanced after its rating was raised at Goldman, Sachs & Co. on improving earnings.

Rupee Weakens on Speculation India's Importers Are Purchasing More Dollars India’s rupee dropped for the first time in four days on speculation some importers increased dollar purchases to settle month-end bills.

Sell Indian Stocks Ahead of National Election Results, Credit Suisse Says Investors should lower their holdings of Indian stocks on concern the nation’s ongoing elections may prove a “sharp disappointment,” Credit Suisse Group said.

Reliance Resumes Oil Production at Offshore Field After Monthlong Shutdown Reliance Industries Ltd., India’s most valuable company, resumed oil production at a field off the nation’s east coast after a monthlong shutdown, according to the country’s oil regulator.

Ten-Year Bonds Drop Most in a Month as Eight-Week Low Yields Deter Buyers India’s 10-year bonds fell the most in a month, reversing earlier gains, as yields at the lowest level in eight weeks prompted investors to sell the securities.

Stocks, Grains, Peso Decline as Swine Flu Spreads; Treasuries, Yen Advance U.S. stocks declined, extending a global drop, while the yen, dollar and Treasuries gained as the swine flu outbreak spread. Mexico’s peso fell the most in four months and grain prices retreated.

GM Offers to Exchange $27 Billion of Debt for Equity to Avert Bankruptcy General Motors Corp. asked its bondholders to exchange $27 billion of claims for equity to help the biggest U.S. automaker avert bankruptcy.

Chrysler Reaches Labor Agreement With U.S. Union, Ratification in Canada Chrysler LLC, racing against an April 30 deadline to cut labor costs or face bankruptcy, reached a tentative contract agreement with its biggest U.S. union and won ratification of an accord with Canadian workers.

Goldman Sachs Increases Risk-Taking at Fastest Pace in Wall Street Trading Goldman Sachs Group Inc., unbowed by the securities industry’s worst year since the Great Depression, increased its trading bets at the fastest rate on Wall Street.

Bernanke Credit Warming Prompts Record Company Debt With Libor-OIS Retreat Wherever you look, Federal Reserve Chairman Ben S. Bernanke’s efforts to repair global credit markets are showing signs of working.

Stress Tests May Compel U.S. Banks to Convert TARP Stock to Common Shares U.S. banks that received results of their federal stress tests last week were given three options if they need additional capital to withstand the recession. The reality is they may only have one.

Mexico's Stocks Cut to `Underweight' from `Top Pick' by UBS on Swine Flu Mexican stocks were downgraded by UBS AG to “underweight” from “top pick” among Latin American equities on concern the country’s economic outlook may worsen because of the outbreak of a deadly swine flu.

source: Bloomberg

Birla Sun Life MF declares dividend in FTP – Series AT

Record date for dividend is 30 April 2009

Birla Sun Life Mutual Fund has planned to declare dividend under the dividend option of retail and institutional plan in Birla Sun Life Fixed Term Plan- Series AT. The fund house has decided to distribute 100% of distributable surplus on face value of Rs 10 per unit as dividend on the record date of 30 April 2009.

The scheme recorded NAV of Rs 10.9379 per unit under institutional plan and Rs 10.9174 per unit under retail plan as on 23 April 2009.

Birla Sun Life Fixed Term Plan – Series AT is a close ended income scheme, with an investment objective to generate current income by investing in a portfolio of fixed income securities maturing normally in line with the duration of the scheme.

Birla Sun Life MF declares dividend in FTP – Series AS

Record date for dividend is 30 April 2009

Birla Sun Life Mutual Fund has planned to declare dividend under the dividend option of retail and institutional plan in Birla Sun Life Fixed Term Plan- Series AS. The fund house has decided to distribute 100% of distributable surplus on face value of Rs 10 per unit as dividend on the record date of 30 April 2009.

The scheme recorded NAV of Rs 10.3630 per unit under institutional plan and Rs 10.3426 per unit under retail plan as on 23 April 2009.

Birla Sun Life Fixed Term Plan – Series AS is a close ended income scheme, with an investment objective to generate current income by investing in a portfolio of fixed income securities maturing normally in line with the duration of the scheme.

Mutual funds continue buying

Purchases worth Rs 204.10 crore on 24 April 2009

Mutual funds (MFs) bought shares worth a net Rs 204.10 crore on Friday, 24 April 2009, lower than Rs 460.10 crore on Thursday, 23 April 2009.

MFs' net inflow of Rs 204.10 crore on 24 April 2009 was a result of gross purchases Rs 696.60 crore and gross sales Rs 492.50 crore. The BSE Sensex gained 194.06 points or 1.74% to 11,329.05 on that day.

MFs were net buyer of shares worth Rs 414.60 crore in this month, till 24 April 2009.

Bullion metals add more shine

Weak initial claims data take bullion metals to highest level in three weeks

Weak set of economic reports increased the appeal of precious metals as a safe bet for investment taking bullion metals higher on Thursday, 23 April, 2009. The weak dollar also added to it.

Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.

On Thursday, Comex Gold for June delivery gained $14.1 (1.6%) to close at $906.6 an ounce on the New York Mercantile Exchange. Last week, gold ended lower by 1.7%. Year to date, gold prices are higher by 2.5%.

For the month of March, gold fell 2.1%, down for the first month in five. But the metal gained 4.3% in the first quarter. Before March, for the month of February, gold ended higher by 7.4%. For January, 2009, gold had gained 3.9%.

On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (15%) since then.

On Thursday, Comex silver futures for May delivery gained 45 cents (3.7%) at $12.755 an ounce. Year to date, silver has climbed 11.9% this year. For 2008, silver had lost 24%.

The Labor Department reported on Thursday, 23 April, 2009 that first-time claims for state unemployment benefits rose in the most recent week, as ongoing claims reached yet another record high. Initial jobless claims rose a seasonally adjusted 27,000 to 640,000 in the week ended 18 April, 2009. The four-week average of initial claims fell 4,250 to 646,750.

Jobless claims a widely tracked indicator because they are close to real time, and are based on actual filings, rather than statistical inference.

The IMF forecast earlier during the week that a 1.3% decline in the world economy, compared with a 0.5% expansion estimated in January, and said growth will be slower next year than previously expected. As per the report, the UK will see its economy shrink by 4.1%, Japan by 6.2%, and the U.S. economy is expected to decline by 2.8%

In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.

Last year, the weakening dollar and higher global demand for raw materials had led to records for commodities including gold. Gold reached a record in March 2008 as a U.S. housing slump and credit crisis spurred the Federal Reserve to slash borrowing costs. In the last move, the Federal Reserve has cuts its target bank lending rate to 0.25% from 5.25% in September, 2007. The Fed did it in nine steps.

Prior to 2008, gold had witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. Silver had climbed 16% in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.

At the MCX, gold prices for June delivery closed higher by Rs 167 (1.15%) at Rs 14,598 per 10 grams. Prices rose to a high of Rs 14,648 per 10 grams and fell to a low of Rs 14,365 per 10 grams during the day's trading.

At the MCX, silver prices for May delivery closed Rs 586 (2.8%) higher at Rs 21,150/Kg. Prices opened at Rs 20,690/kg and rose to a high of Rs 21,264/Kg during the day's trading.

ICICI Lombard Introduces Instant on-line Travel Insurance

Covers all out patient (OPD) expenses

ICICI Lombard General Insurance has introduced instantaneous online travel insurance options where in customers can buy, renew and check their travel insurance without paperwork.

Key features of Instant on-line Travel Insurance:

Instant on-line Travel Insurance covers all out patient (OPD) expenses. This can be availed for pre existing diseases in life threatening situations while traveling and when abroad with cashless hospitalization worldwide.

It offers its customers the opportunity to buy online travel insurance in the comfort of their home or office via the portal. Customers can renew the policy online. They can also avail of extra services like extension of policy online. Customers purchasing flight tickets online can also opt for travel insurance just by clicking on a check box.

Senior citizens can take advantage of the travel insurance cover under ICICI Lombard's ‘Salt & Pepper' plan, which is available for people upto 85 years of age without a medical check up. These policies also cover pre-existing diseases under life threatening situations and cashless hospitalization worldwide. It has also tied up with united health care facilities in the United States.

Karthik Jain, Head Marketing and E-commerce, ICICI Lombard General Insurance says “These online travel insurance policies of ICICI Lombard can be bought anytime and are accessible anywhere in the world. Customers are able to check and renew their policy online while they are traveling. This facility enables customers to avail of their travel insurance policy quickly and efficiently to ensure peace of mind. Its exclusive features also include a pay per day plan where customers have to pay only for the days you use (after a 7 day base rate)”.

ICICI Lombard is a joint venture between ICICI Bank Limited, India and Fairfax Financial Holdings Limited, a Canada based diversified financial services company engaged in general insurance, reinsurance, insurance claims management and investment management.

FIIs step up buying

Inflow of Rs 311.70 crore on 23 April 2009

Foreign institutional investors (FIIs) bought shares worth a net Rs 311.70 crore on Thursday, 23 April 2009, much higher than Rs 1.80 crore on Wednesday, 22 April 2009.

FII inflow of Rs 311.70 crore on 23 April 2009 was a result of gross purchases Rs 1406.10 crore and gross sales Rs 1094.40 crore. The BSE Sensex surged 317.45 points or 2.93% to 11,134.99 on that day.

FII inflow in April 2009 totaled Rs 4,860.40 crore (till 23 April 2009). FII outflow in calendar year 2009 totaled Rs 1,811.20 crore (till 23 April 2009).

There are a total of 1639 foreign funds registered with the Securities & Exchange Board of India (Sebi).

Crude ends higher for third straight day

Weak dollar and good earnings take crude higher

Crude oil ended higher once again on Thursday, 23 April, 2009. Prices rose today due to the weak dollar and a batch of strong earning reports.

On Thursday, crude-oil futures for light sweet crude for June delivery closed at $49.62/barrel (higher by $0.77 or 1.63%) on the New York Mercantile Exchange. Last week, crude ended lower by 3.7%.

Crude ended March trading up 10.9%. It rallied 11.3% in the first quarter. For the month of February, crude prices had ended higher by 1.5%.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 68.8% since then. Year to date, in 2009, crude prices are higher by 8.4%. On a yearly basis, crude prices are lower by 53%.

The dollar index, which measures the strength of the dollar against a basket of six other currencies fell 0.7%.

Earning reports dominated today. Apple, eBay, ConocoPhillips - all exceeded Wall Street's expectations.

EIA reported yesterday that crude inventories increased 3.7 million barrels (against an expected 3 million barrels) to 370.6 million barrels last week for the week ended 17 April, 2009, the highest level since September 1990. U.S. refineries operated at 83.4% of their operable capacity last week, higher than a week ago but still in a low range.

EIA had also reported that gasoline inventories rose 800,000 barrels and distillate stockpiles, which include heating oil and diesel, rose 2.7 million barrels. Market had expected a decline in both gasoline and distillate inventories. Total demand for petroleum products in the past four weeks fell 6.5% from a year ago. Among them, gasoline demand fell 0.4% while distillate consumption slumped 9.4%.

Also at the Nymex on Thursday, May reformulated gasoline slightly to end at $1.4015 a gallon and May heating oil lost 1.2 cent, or 0.9%, to $1.3179 a gallon.

May natural-gas futures fell 12.3 cents, or 3.5%, to $3.409 per million British thermal units. EIA reported today that U.S. natural-gas inventories rose 46 billion cubic feet last week, in line with expectations. At 1,741 billion cubic feet, stocks were 459 billion cubic feet higher than last year at this time and 322 billion cubic feet above the five-year average.

Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.

At the MCX, crude oil for May delivery closed at Rs 2,472/barrel, higher by Rs 27 (2.1%) against previous day's close. Natural gas for April delivery closed at Rs 177.1/mmbtu, lower by Rs 6.8/mmbtu (3.7%).