Crude tops $64

Prices surge as energy department reports unexpected drop inc rude inventories

Crude oil prices rose substantially higher on Thursday, 28 May 2009. Prices rose for the fourth consecutive session as energy department reported unexpected drop in crude inventories for last week. Market was anticipating a buildup in crude inventories.

On Thursday, crude-oil futures for light sweet crude for June delivery closed at $64.59/barrel (higher by $1.14 or 1.7%). Last week, crude ended higher by 8.2%.

Crude ended April higher by 2.9%. Previously, March trading ended up 10.9%. It rallied 11.3% in the first quarter. Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 56% since then. Year to date, in 2009, crude prices are higher by 33%. On a yearly basis, crude prices are lower by 42%.

The energy department reported today that crude inventories declined by 5.4 million barrels in the week ended 22 May, 2009. Market was expecting stockpiles to show an increase of 1.8 million barrels. U.S. refineries ran at 85.1% of their operable capacity last week, up sharply from 81.8% in the prior week.

The EIA also reported that gasoline inventories fell by 600,000 barrels last week. Distillate stockpiles, which include heating oil and diesel, rose 300,000 barrels last week.

Gasoline production averaged nearly 9.4 million barrels a day last week, up from 8.7 million barrels in the week ended 15 May, 2009 as the nation entered into the post-Memorial Day driving season.

In its latest annual report, EIA reported yesterday, on international outlook for energy that global oil demand will grow to 91 million barrels a day in 2015 and 107 million barrels a day in 2030. Global oil supply will rise to 106.6 million barrels a day by 2030. The EIA also said natural-gas consumption will increase to 153 trillion cubic feet in 2030. The Energy Information Administration predicted in a newly released report that oil prices will rise to $110 in 2015 and $130 in 2030.

OPEC, in its latest meeting, decided to keep production quotas unchanged, in line with expectations. The cartel, which accounts for about one-third of the world's oil production, decided to leave production levels unchanged at today's meeting in Vienna.

Also at the Nymex on Thursday, June-dated reformulated gasoline rose 0.2% to $1.8955 a gallon, while June heating oil gained 2% to $1.5927 a gallon.

Natural gas for July delivery jumped 7% to reach $3.888 per million British thermal units. EIA also reported today that U.S. natural-gas inventories rose 106 billion cubic feet in the week ended 22 May.

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

At the MCX, crude oil for June delivery closed at Rs 3,087/barrel, higher by Rs 70 (2.3%) against previous day's close. Natural gas for June delivery closed at Rs 188.3/mmbtu, higher by Rs 14.6/mmbtu (8.4%).

Bullion metals shine

Gold manages modest jump while silver adds substantial glaze

Precious metals ended higher on Thursday, 28 May, 2009 at Comex. Prices ended higher as couple of encouraging economic reports hit the wires today thereby increasing inflation concerns. Economic reports on durable goods and housing – both checked in better than expected.

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 rose $8.2 (0.9%) to close at $961.5 an ounce on the New York Mercantile Exchange. Last week, gold ended higher by 3%. Year to date, gold prices are higher by 10.6%.

For the month of April, gold had lost 3.7%, the second consecutive monthly drop. 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 (7%) since then.

On Thursday, Comex silver futures for July delivery rose 29.5 cents (2.1%) at $15.16 an ounce. Year to date, silver has climbed 32.3% this year. For 2008, silver had lost 24%.

The Commerce Department reported on Thursday, 28 May, 2009 that U.S. new home sales rose 0.3% in April to a seasonally adjusted annual rate of 352,000. But the figure was well below the 365,000 pace expected.

In a separate report, The Commerce Department reported on Thursday, 28 May, 2009 that new orders for U.S made capital goods were much stronger than expected in April. Orders for durable goods rose 1.9% in April, pushed higher by new orders for primary metals, machinery and motor vehicles. It marked the largest gain in new orders since December 2007.

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 90 (0.61%) at Rs 14,712 per 10 grams. Prices rose to a high of Rs 14,759 per 10 grams and fell to a low of Rs 14,560 per 10 grams during the day's trading.

At the MCX, silver prices for July delivery closed Rs 351 (1.51%) higher at Rs 23,516/Kg. Prices opened at Rs 23,113/kg and rose to a high of Rs 23,675/Kg during the day's trading.

News Flash

Indian Economy Expands Faster-Than-Expected 5.8%, Easing Pressure on Singh India’s economy grew more than estimated in the last quarter, making it easier for re-elected Prime Minister Manmohan Singh to steer the country through the global recession.

Singh May Lift 5-1/2 Year Cap on Fuel Prices in First Market-Opening Move India may lift a 5 1/2-year cap on pump prices of gasoline and diesel, the first market-opening move by Prime Minister Manmohan Singh since his election victory this month. Shares of refiners surged.

Boeing Says Congress Election Victory May Boost India's Defense Spending Boeing Co., the second-biggest U.S. defense contractor, said India’s military revamp and warmer ties with the U.S. after recent elections may boost India’s spending on defense equipment including helicopters and fighter jets.

Stocks, Rupee Advance as India's Economy Grows Faster Than Expected 5.8% Indian stocks rose, capping their best month in 17 years, after a government report showed faster- than-expected economic growth last quarter. The rupee rallied.

India's Budget Deficit Widens to Seven-Year High, Putting Ratings at Risk India’s budget deficit widened to a seven-year high as the government increased spending, putting the nation’s credit ratings at risk.

Indian Oil Swings to $1.4 Billion Quarterly Profit After Getting Bonds Indian Oil Corp., the nation’s biggest refiner, swung to a profit in the fourth quarter after getting bonds from the government as compensation for selling fuels below cost and boosting income from other business.

Sensitive Index Climbs, Set for Best Month in 17 Years, on India's Growth India’s benchmark stock index rose to the highest in more than a week after UBS AG and Standard Chartered Plc said the economy is showing signs of recovery. Reliance Industries Ltd. and Larsen & Toubro Ltd. led gains.

Sensitive Index May Climb Another 5% Before Slumping, Kotak's Prasad Says India’s Sensitive stock index may extend its election rally by another 5 percent before slumping on earnings concerns, according to Kotak Securities Ltd.

Mortgage-Bond Yields Drop After Spurt Raised Concerns Over Home-Loan Rates Yields on Fannie Mae and Freddie Mac mortgage bonds tumbled, likely pushing down interest rates on new home loans after a recent jump that added to signs the housing market and economy may not soon recover.

Confidence Among U.S. Consumers Increases to Highest Level Since September Confidence among U.S. consumers rose this month to the highest level since September, while business activity shrank at a faster pace than forecast as the auto slump rippled through the economy.

Dollar Slips to $1.41 per Euro as Economic Prospects Reduce Safety Demand The dollar declined beyond $1.41 against the euro for the first time this year as evidence the global recession is easing sent investors in search of assets with higher returns.

General Motors UAW Members Approve Amendments to Contract by 74% Majority General Motors Corp. workers represented by the United Auto Workers ratified amendments to their labor contract, voting 74 percent in favor.

Bond Vigilantes Confront Obama Credibility as Bernanke Housing Aid Falters They’re back.

Harrah's, Leap Lead $21.9 Billion in May Junk-Bond Sales, a Two-Year High Harrah’s Entertainment Inc., the world’s biggest casino company, and Leap Wireless International Inc. led companies selling $21.9 billion of speculative-grade bonds in May, the most since June 2007, as the riskiest borrowers raise cash to repay bank loans.

VIX Is More Likely to Reach 40 Than Decline to 20, Macro Risk Survey Says The VIX, the benchmark gauge for U.S. stock option prices and a barometer of Wall Street uncertainty, is more likely to reach 40 than drop to 20, investors said in a Macro Risk Advisors LLC survey.

source: Bloomberg

UTI Top 100 Fund offers 1:1 bonus

Record date for bonus is 4 June 2009

UTI Mutual Fund has approved 4 June 2009 as the record date for declaration of bonus under UTI Top 100 Fund on the face value of Rs 10 per unit.

The quantum of bonus will be in ratio of 1:1 i.e. 1 additional unit for every 1 unit currently held by investors. The NAV in income retail plan was recorded Rs. 37.54 per unit while growth retail plan recorded NAV of Rs 43.440 per unit as on 27 May 2009.

UTI Top 100 Fund, an open-ended equity scheme aims to provide long term capital appreciation / dividend distribution by investing predominantly in equity and equity related instruments of top 100 stocks by market capitalization.

Birla Sun Life MF declares dividend in quarterly interval fund

Record date for dividend is 2 June 2009

Birla Sun Life Mutual Fund has approved the declaration of dividend under the dividend option of Birla Sun Life Quarterly Interval Fund –Series 1. The fund house has decided to distribute 100% of distributable surplus as dividend on the record date of 2 June 2009.

The scheme recorded NAV of Rs 10.0578 per unit as on 27 May 2009.

Birla Sun Life Quarterly Interval Fund –Series 1 is an interval income scheme with an investment objective to generate regular income through investment in debt and money market instruments. The fund does not ask entry load. For redemptions made on Specified Transaction Period, the fund does not charge exit load while for redemptions on any day other than Specified Transaction Period the scheme levies 1% exit load.

Birla Sun Life Mutual Fund has grabbed two awards in CNBC-TV18 – CRISIL Mutual Fund of the Year Awards 2009. The fund house has been honored as Mutual Fund House of the Year and Debt Mutual Fund House of the Year.

Mutual funds continue buying

Purchases worth Rs 104.70 crore on 28 May 2009

Mutual funds (MFs) bought shares worth a net Rs 104.70 crore on Thursday, 28 May 2009, much lower than Rs 1003.70 crore on Wednesday, 27 May 2009. The BSE Sensex had risen 186.37 points or 1.32% to 14,296.01 on that day.

MFs were net buyer of shares worth Rs 1,602.70 crore in May 2009 (till 28 May 2009).

Fidelity Equity Fund and Tax Advantage Fund relaxes exposure to a single sector

With effect from 1 June 2009

Fidelity Mutual Fund has announced that from 1 June 2009 onwards Fidelity Equity Fund and Fidelity Tax Advantage Fund will not restrict the maximum exposure to a single sector at 25% of the net assets of the respective scheme.

As per existing provision, maximum exposure to a single sector shall be 25% of the net assets of the schemes, mentioned in their offer documents. This provision will not be applicable from 1 June 2009.

Crude shoots up

Strong housing report increases hopes of global recovery

Crude oil prices rose substantially higher on Wednesday, 27 May 2009. Prices rose on hopes of global economic recovery.

On Wednesday, crude-oil futures for light sweet crude for June delivery closed at $63.45/barrel (higher by $1 or 1.6%). Last week, crude ended higher by 8.2%.

Crude ended April higher by 2.9%. Previously, March trading ended 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 52% since then. Year to date, in 2009, crude prices are higher by 31.3%. On a yearly basis, crude prices are lower by 45%.

In its latest annual report, EIA reported on international outlook for energy that global oil demand will grow to 91 million barrels a day in 2015 and 107 million barrels a day in 2030. Global oil supply will rise to 106.6 million barrels a day by 2030. The EIA also said natural-gas consumption will increase to 153 trillion cubic feet in 2030. The Energy Information Administration predicted in a newly released report that oil prices will rise to $110 in 2015 and $130 in 2030.

The Federal Agency reported on Wednesday, 27 May, that home prices fell 0.5% in the first quarter of the year, a much smaller pace of decline than in the final three months of 2008. It was down 7.3% in the past year. The FHFA price index measures sales of the same homes over time, and is therefore not influenced by a different mix of homes sold in a period as the median sales price is.

Also at the Nymex on Wednesday, June-reformulated gasoline rose 3.39 cents, or 2.1%, to $1.8917 a gallon, while June heating oil gained 1.64 cents, or 1.1%, to $1.5617 a gallon.

Natural gas for June delivery rose slightly to $3.537 per million British thermal units.

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

At the MCX, crude oil for June delivery closed at Rs 3,017/barrel, higher by Rs 75 (2.5%) against previous day's close. Natural gas for June delivery closed at Rs 173.8/mmbtu, higher by Rs 1.2/mmbtu (0.7%).

Bullion metals end mixed

Gold stays steady while silver shines

Precious metals ended mixed on Wednesday, 27 May, 2009 at Comex. Gold ended almost flat while silver gained. Gold stayed steady due to the rising dollar and the stronger than expected housing data.

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 Wednesday, Comex Gold for June delivery rose $0.2 (0.006%) to close at $953.5 an ounce on the New York Mercantile Exchange. Earlier during the day, it fell to a low of $946.6 but also rose to a high of $959.6. Last week, gold ended higher by 3%. Year to date, gold prices are higher by 9.7%.

For the month of April, gold had lost 3.7%, the second consecutive monthly drop. 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 (8%) since then.

On Wednesday, Comex silver futures for July delivery rose 26.5 cents (1.8%) at $14.865 an ounce. Year to date, silver has climbed 30.2% this year. For 2008, silver had lost 24%.

In the currency market on Wednesday, the U.S. dollar index, rose 0.4%. The greenback advanced against most of its major rivals as a mixed batch of U.S. housing data and worries that rising interest rates might limit an economic recovery.

The Federal Agency reported on Wednesday, 27 May, for April, home prices fell 0.5% in the first quarter of the year and were down 7.3% in the past year. The FHFA price index measures sales of the same homes over time, and is therefore not influenced by a different mix of homes sold in a period as the median sales price is.

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 50 (0.34%) at Rs 14,622 per 10 grams. Prices rose to a high of Rs 14,707 per 10 grams and fell to a low of Rs 14,491 per 10 grams during the day's trading.

At the MCX, silver prices for July delivery closed Rs 416 (1.8%) higher at Rs 23,165/Kg. Prices opened at Rs 22,650/kg and rose to a high of Rs 23,347/Kg during the day's trading.

FIIs in buying mode

Inflow of Rs 436.90 crore on 27 May 2009

Foreign institutional investors (FIIs) bought shares worth a net Rs 436.90 crore on Wednesday, 27 May 2009, as against an outflow of Rs 81.90 crore on Tuesday, 26 May 2009.

FII inflow of Rs 436.90 crore on 27 May 2009 was a result of gross purchases Rs 4,076.70 crore and gross sales Rs 3,639.80 crore. The BSE Sensex surged 520.41 points or 3.83% to 14,109.64 on that day.

FII inflow in May 2009 totaled Rs 17,643.50 crore (till 27 May 2009). FII inflow in calendar year 2009 totaled Rs 18,356.10 crore (till 27 May 2009).

There are a total of 1,657 foreign funds registered with the Securities & Exchange Board of India (Sebi).

Inflation stands unchanged at 0.61%

India's Wholesale Price Index (WPI) based inflation rose 0.61% in the week ended 16 May 2009 from year earlier same as in the previous week, but substantially lower compared to 8.66% a year ago. However, the index rose 0.1% to 232.2 from previous weeks level, recording seventh weekly gains.

The index of primary articles rose 0.04% from previous weeks level, recording rise for the seventh consecutive week, while manufacturing index rose 0.1% posting tenth weekly rise. However, the index of fuel, power, light and lubricants also moved 0.1% during the week compared to its previous weeks level.

Within the primary articles, the index of food articles declined 0.04% from the previous weeks level due to lower prices of gram, fruits & vegetables and jowar (1% each), but non-food articles increased 0.2% powered by higher prices of raw cotton (2%) and linseed (1%). However, the primary article inflation climbed up to 6.22% from 6.05% in the previous week.

The index for manufacturing product group rose 0.1% from previous week, while the annual inflation in the manufactured product group stood at 1.1%. Among the manufactured products, the index for food product climbed up 0.5% due to higher prices of bagasse (25%), unrefined oil (21%), malted food (7%), imported edible oil (3%) etc, while the index of beverages tobacco & tobacco products rose 0.1% from the previous week level. However, the index of textile group and transport equipment & parts declined 0.1% each from their previous weeks levels.

The inflation has continued to be below 1% for the sequential eleventh week, but it has been rising for the seventh week on week-on-week basis, which is raising concerns. The weekly rise is largely contributed by primary articles, while lower industrial production has also pressured the prices of manufactured products.

A survey of professional forecasters conducted by the Reserve bank has projected the WPI based inflation to be negative at -1.4% in the first quarter of 2009-10 and further deeper negative at -2.5% in the second quarter, due to rapid rise in prices in the corresponding previous period. However, during the first seven weeks out of the 13 weeks in the first quarter, the inflation stood at 0.5% compared to 8.3% in the corresponding previous year period.

News Flash

India's Credit Ratings May Face Downward Pressure on Deficit, Moody's Says India’s credit rating may come under pressure if Prime Minister Manmohan Singh’s government is not able to rein in a widening budget deficit, Moody’s Investors Service said.

Inflation Rate Holds Below 1% for 11th Week, Giving Room for India Reforms India’s inflation rate held below 1 percent for an 11th straight week, giving policy makers room to take steps to buoy a slowing economy.

Steel Authority Profit Falls on Declining Metal Prices, Record Coal Costs Steel Authority of India Ltd., the nation’s second-biggest steelmaker, reported a drop in profit for the second straight quarter as metal prices fell and coal costs remained at a record.

Mahindra Profit Tops Estimate, Helped by Accounting Change, Sale of Stake Mahindra & Mahindra Ltd., India’s largest maker of sport-utility vehicles and tractors, reported a better-than-estimated 89 percent surge in fourth-quarter profit, helped by accounting changes and the sale of a stake.

Tata Power Fourth-Quarter Profit Rises 58 Percent to 3.54 Billion Rupees Tata Power Ltd., India’s biggest electricity generator outside state control, posted a 58 percent increase in fourth-quarter profit.

Larsen & Toubro Profit Climbs 3.3%, Smallest Quarterly Advance Three Years Larsen & Toubro Ltd., India’s biggest engineering company, reported its smallest quarterly profit gain in almost three years as the recession damped machinery orders.

FDA Is Reviewing Ranbaxy's Corrective Plan on Drugs to the U.S. After Ban The U.S. drug regulator is reviewing a “corrective action” plan from India’s Ranbaxy Laboratories Ltd. after some medicines from its plants in the South Asian nation were barred from being exported to the U.S.

Stocks in India Advance to One-Week High After Analysts Forecast Recovery India’s benchmark stock index rose to the highest in more than a week after UBS AG and Standard Chartered Plc said the economy is showing signs of recovery. Larsen & Toubro Ltd. and Bharti Airtel Ltd. led gains.

Mortgage Delinquencies, Foreclosures Rise to Records in U.S. Amid Job Cuts Mortgage delinquencies and foreclosures rose to records in the first quarter and home-loan rates jumped to the highest since March as the government’s effort to revive the housing market lost momentum.

U.S. Durable-Goods Orders Hovered Near Lowest Level in 13 Years in April Orders for U.S. durable goods hovered near the lowest level in 13 years in April as demand for business equipment weakened, indicating that investment will be one of the last areas of the economy to recover.

General Motors Said to Get 15% Participation in Failed Bond Exchange Offer General Motors Corp. got about 15 percent of bondholders to participate in its failed debt exchange offer before it expired this week, according to a person familiar with the situation.

Rising U.S. Mortgage Rates Cloud Risk-Appetite Renewal, Credit Suisse Says A jump in interest rates on typical new U.S. mortgages to the highest since February may end a “two-month-old rebound in risk appetite,” according to Credit Suisse Group analysts.

Frank Rules Out Creating Single U.S. Bank Regulator Similar to U.K.'s FSA House Financial Services Committee Chairman Barney Frank ruled out creating a single U.S. bank watchdog similar to the U.K.’s Financial Services Authority as part of an overhaul of regulations.

Catastrophe Bond Market Rebounds After Strike by Man-Made Lehman Disaster Catastrophe bonds, the investments that pay out as long as there are no major hurricanes or earthquakes, are staging a comeback after last year’s financial collapse brought the market to a halt.

Time Warner Will Spin Off AOL Division, Undoing Failed $124 Billion Merger Time Warner Inc. will spin off the entire AOL Internet unit by the end of the year, reversing a failed $124 billion merger that triggered record losses.

source: Bloomberg

ICICI Pru Floating Rate Plan announce changes

With effect from 1 June 2009

ICICI Prudential mutual fund has approved changes in minimum application amount under ICICI Pru Floating Rate Plan-Plan B and exit load structure of ICICI Pru Floating Rate Plan-Plan A. The proposed changes will be in operation from 1 June 2009.

Accordingly, the minimum application amount for all fresh purchases/switches under ICICI Pru Floating Rate Plan B will be Rs 10 lakh and in multiples of Re 1 thereafter.

ICICI Pru Floating Rate Plan A will not charge exit load from 1 June 2009.

IDFC Hybrid Portfolio Fund - Series I waits for Sebi's approval

It is a close ended debt scheme

IDFC Mutual Fund has filed offer document with Securities and Exchange Board of India (SEBI) to launch IDFC Hybrid Portfolio Fund - Series I. It is a close-ended debt scheme. The New Fund offer price will be Rs 10 per unit.

Details of the Scheme:

Investment Objective: The scheme endeavors to generate income by investing in high quality fixed income securities as the primary objective and generate capital appreciation by investing in equity and equity related instruments as a secondary objective.

Plans: There are two sub plans: Plan A and Plan B with growth and dividend option.

Asset Allocation: The plans will invest 50-100% of net asset in debt securities and money market instruments. It may invest up to 50% of net assets of the plan in equities & equity related securities. Investment in securitized debt shall be up to 50% of net assets of the scheme. Investments in foreign securities will be up to 50% of the net assets. The fund will take exposure of 100% of net asset exposure in derivatives. Investment in Derivatives - Upto 100% of the Net Assets of the scheme.

Load Structure: The scheme may charge an entry load of 2.00%. The scheme will not charge an exit load.

No redemption/repurchase of units shall be allowed prior to the maturity of the scheme. Investors wishing to exit may do so through stock exchange mode.

Minimum Investment Amount: The minimum application amount under Plan A is Rs 5000 and multiples of Re 1 thereafter. Under Plan B, the minimum investment amount will be Rs 1 crore and in multiples of Re 1 thereafter.

Minimum Target amount: The fund seeks to collect a minimum subscription amount of Rs 1 crore under each series during NFO.

Benchmark Index: CRISIL MIP Blended Index.

Fund Managers: Kenneth Andrade & Arjun Parthasarathy will manage the fund.

Mutual funds resume buying

Purchases worth Rs 1003.70 crore on 27 May 2009

Mutual funds (MFs) bought shares worth a net Rs 1003.70 crore on Wednesday, 27 May 2009, as against an outflow of Rs 62.70 crore on Tuesday, 26 May 2009.

MFs' net inflow of Rs 1003.70 crore on 27 May 2009 was a result of gross purchases Rs 1736.80 crore and gross sales Rs 733.10 crore. The BSE Sensex jumped 520.41 points or 3.83% to 14,109.64 on that day.

MFs were net buyer of shares worth Rs 1,498 crore in May 2009 (till 27 May 2009).

Crude pares early losses

Upbeat consumer sentiment data help crude pare early losses

Crude oil prices pared earlier losses and ended modestly higher on Tuesday, 26 May 2009. Prices fell earlier during the day as dollar climbed up. But then, with upbeat consumer sentiment data, prices gave up earlier losses and climbed up on global recovery hopes. Oil also fell earlier in the session on expectations that the Organization of Petroleum Exporting Countries won't cut production quotas at their next meeting scheduled on Thursday, 28 May, 2009.

On Tuesday, crude-oil futures for light sweet crude for June delivery closed at $62.37/barrel (higher by $0.70 or 1.1%). It fell to a low of $59.53 earlier during the day. Last week, crude ended higher by 8.2%.

Crude ended April higher by 2.9%. Previously, March trading ended 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 55% since then. Year to date, in 2009, crude prices are higher by 29.7%. On a yearly basis, crude prices are lower by 51%.

In the currency market on Tuesday, the U.S. dollar index, rose 0.9%. The greenback rose considerably today on positive consumer sentiment data.

The Conference Board in US reported on Tuesday, 26 May, 2009 that reading on U.S. consumer confidence jumped to 54.9 in May from an upwardly revised 40.8 in April as expectations for jobs improved. Market was expecting a reading around 43. Consumers have brighter expectations for jobs in coming months, but their overall confidence remains relatively low. The gain is the fourth-largest in the 32-year history of the survey, and the index is at its highest level in eight months.

The report detailed that for May, consumers' expectations rose to 72.3 from 51 as those expecting business conditions to improve rose to 23.1% from 15.7%, and those expecting more jobs rose to 20% from 14.2%. Consumers' appraisal of the present situation rose to 28.9 from 25.5, though many still view business conditions as "bad."

Also at the Nymex on Tuesday, June-reformulated gasoline fell slightly to $1.8375 a gallon, and June heating oil rose 0.3% to $1.5418 a gallon.

Natural gas for June delivery rose 0.1% to $3.517 per million British thermal units.

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

At the MCX, crude oil for June delivery closed at Rs 2,942/barrel, higher by Rs 41 (1.41%) against previous day's close. Natural gas for June delivery closed at Rs 172.6/mmbtu, higher by Rs 1.9/mmbtu (1.1%).

Bullion metals turn pale

Strong dollar and upbeat consumer data drag bullion metals lower

Precious metals ended lower on Tuesday, 26 May, 2009 at Comex. Prices gave up some of their prior week's gains after upbeat consumer sentiment data hit the wires today. The strong dollar also played a pivotal role in getting bullion metals down.

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 fell $5.6 (0.6%) to close at $953.3 an ounce on the New York Mercantile Exchange. Earlier during the day, it fell to a low of $936.6. Last week, gold ended higher by 3%. Year to date, gold prices are higher by 9.7%.

For the month of April, gold had lost 3.7%, the second consecutive monthly drop. 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 (8%) since then.

On Tuesday, Comex silver futures for July delivery fell 9.5 cents (0.6%) at $14.6 an ounce. Year to date, silver has climbed 28.4% this year. For 2008, silver had lost 24%.

In the currency market on Tuesday, the U.S. dollar index, rose 0.9%. The greenback rose considerably today on positive consumer sentiment data.

The Conference Board in US reported on Tuesday, 26 May, 2009 that reading on U.S. consumer confidence jumped to 54.9 in May from an upwardly revised 40.8 in April as expectations for jobs improved. Market was expecting a reading around 43. Consumers have brighter expectations for jobs in coming months, but their overall confidence remains relatively low. The gain is the fourth-largest in the 32-year history of the survey, and the index is at its highest level in eight months.

The report detailed that for May, consumers' expectations rose to 72.3 from 51 as those expecting business conditions to improve rose to 23.1% from 15.7%, and those expecting more jobs rose to 20% from 14.2%. Consumers' appraisal of the present situation rose to 28.9 from 25.5, though many still view business conditions as "bad."

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 16 (0.1%) at Rs 14,572 per 10 grams. Prices rose to a high of Rs 14,669 per 10 grams and fell to a low of Rs 14,518 per 10 grams during the day's trading.

At the MCX, silver prices for July delivery closed Rs 107 (0.46%) lower at Rs 22,749/Kg. Prices opened at Rs 22,830/kg and fell to a low of Rs 22,553/Kg during the day's trading.

FIIs in selling mode

Outflow of Rs 81.90 crore on 26 May 2009

Foreign institutional investors (FIIs) sold shares worth a net Rs 81.90 crore on Tuesday, 26 May 2009, as against a huge inflow of Rs 3,046.20 crore on Monday, 25 May 2009.

FII outflow of Rs 81.90 crore on 26 May 2009 was a result of gross purchases Rs 2,323.10 crore and gross sales Rs 2,405 crore. The BSE Sensex lost 323.99 points or 2.33% to 13,589.23 on that day.

FII inflow in May 2009 totaled Rs 17,206.60 crore (till 26 May 2009). FII inflow in calendar year 2009 totaled Rs 17,919.20 crore (till 26 May 2009).

There are a total of 1,657 foreign funds registered with the Securities & Exchange Board of India (Sebi).

News Flash

India Will Step Up Spending This Year to Support Growth, Mukherjee Says India’s Finance Minister Pranab Mukherjee said the government will continue to step up spending this year to support growth, risking a wider budget deficit.

Stocks in India Rise Most in a Week; Metals, Infrastructure Companies Gain India’s benchmark stock index rose the most in a week, led by metal producers and construction companies, after copper prices climbed and the government said it will accelerate spending on infrastructure.

India May Borrow More Than Planned in 1st Half of Fiscal Year, Chawla Says India may borrow more than scheduled in the first half of the fiscal year as it “frontloads” some bond sales, Finance Secretary Ashok Chawla said.

Jindal Steel More Than Doubles Profit After Increasing Its Power Capacity Jindal Steel & Power Ltd., India’s second-biggest steelmaker by market value, said full-year profit more than doubled after increasing power-generation capacity.

Rupee Gains as U.S. Data Signaling Easing Recession Spurs Rally in Stocks India’s rupee gained for the first time this week as signs of a global recovery boosted stocks, spurring optimism foreign investors will increase their holdings of the nation’s shares.

Indian Mills May Slow Raw Sugar Imports as Global Prices Rise, Group Says Sugar mills in India, the world’s biggest consumer, may import less raw sugar than previously forecast in the year to Sept. 30 after global prices rose while local rates fell, an industry group said.

Investors Should Buy Indian Equities on Dips, Reliance Mutual's Kela Says Investors should buy Indian equities when markets decline as stocks will rally after elections ensured a stable government that will be able to focus on economic growth, the nation’s largest money manager said.

Sugar Prices Tumble in New York on Speculation Indian Will Slow Imports Sugar futures in New York dropped the most in a week on speculation that India will import less than forecast.

GM Bondholders Reject Offers to Swap Debt for Equity, Hastening Bankruptcy General Motors Corp. failed to get 90 percent of its bondholders to swap their claims for stock, pushing the largest U.S. automaker closer to bankruptcy.

`Problem' Banks in U.S. Climb to 305, Highest Level Since 1994, FDIC Says U.S. “problem” banks climbed 21 percent to the highest total in 15 years in the first quarter, and provisions set aside for loan losses weighed on industry earnings, the Federal Deposit Insurance Corp. said.

Home Resales in U.S. Increase More Than Forecast Amid Foreclosure Auctions Home resales in the U.S. gained in April as foreclosure auctions and improved affordability spurred bargain hunters.

Stocks in U.S. Fluctuate as Technology Rally Offsets Concern About Banks U.S. stocks fluctuated as SanDisk Corp. led a rally in technology shares, while banks slumped after the Federal Deposit Insurance Corp. said the number of “problem” banks grew to the most in 15 years.

Bain Capital Said to Be Leading KKR in Offer for 20% Stake in China's Gome Bain Capital LLC may buy as much as 20 percent of Gome Electrical Appliances Holdings Ltd., China’s second-largest electronics retailer, four people familiar with the discussions said.

Bank of America Has Raised $26 Billion in Capital Since Stress-Test Result Bank of America Corp. has raised almost $26 billion in response to U.S. stress tests, about 76 percent of the goal, including a $5.9 billion accord to convert privately held preferred shares into common stock.

Warburg Pincus Said to Consider $1.4 Billion FiberNet Communications Sale Warburg Pincus LLC, the New York- based leveraged buyout firm, may sell central and east European cable-television operator FiberNet Communications, three people familiar with the plan said.

source: Bloomberg

ICICI Prudential Gilt Fund offers dividend

Record date for dividend is 01 June 2009

ICICI Prudential Mutual Fund has declared dividend under the quarterly and half-yearly dividend option of ICICI Prudential Gilt Fund-Treasury Plan and half yearly dividend option under ICICI Prudential Gilt Fund – Investment Plan, an open ended short term gilt fund. The record date for the dividend is set as 01 June 2009.

ICICI Prudential Gilt Fund-Treasury Plan – Quarterly Frequency

Dividend: Re 0.30 per unit (3%)

NAV as on 25 May 2009: Rs 12.3859 per unit

ICICI Prudential Gilt Fund-Treasury Plan – Half yearly Frequency

Dividend: Re 0.70 per unit (7%)

NAV as on 25 May 2009: Rs 11.9652 per unit

ICICI Prudential Gilt Fund-Investment Plan – Half yearly Frequency

Dividend: Re 0.70 per unit (7%)

NAV as on 25 May 2009: Rs 13.4955 per unit

ICICI Prudential Gilt Fund has launched in July 1999 with an investment objective of generating regular returns through investments made in gilts.

Mutual funds net buy stocks worth nearly Rs 500 crore in May 2009

Outflow worth Rs 62.60 crore on 26 May 2009

Mutual funds (MFs) sold shares worth a net Rs 62.60 crore on Tuesday, 26 May 2009, as against an inflow of Rs 387.80 crore on Monday, 25 May 2009.

MFs' net outflow of Rs 62.60 crore on 26 May 2009 was a result of gross purchases Rs 798.60 crore and gross sales Rs 861.20 crore. The BSE Sensex lost 323.99 points or 2.33% to 13,589.23 on that day.

MFs were net buyer of shares worth Rs 494.30 crore in May 2009 (till 26 May 2009).

FII inflow crosses Rs 18000 crore in 2009

Inflow of Rs 3046.10 crore on 25 May 2009

Foreign institutional investors (FIIs) bought shares worth a net Rs 3046.10 crore on Monday, 25 May 2009, as against an outflow of Rs 694.70 crore on Friday, 22 May 2009.

FII inflow of Rs 3046.10 crore on 25 May 2009 was a result of gross purchases Rs 5092.60 crore and gross sales Rs 2046.50 crore. The BSE Sensex rose 26.07 points or 0.19% to 13,913.22 on that day.

FII inflow in May 2009 totaled Rs 17288.50 crore (till 25 May 2009). FII inflow in calendar year 2009 totaled Rs 18001.10 crore (till 25 May 2009).

There are a total of 1657 foreign funds registered with the Securities & Exchange Board of India (Sebi).

Irda extends senior citizen health cover to 65 years

The insurance regulator Irda has said all health insurance products filed must allow entry at least till 65 years of age.

In a notification on Monday, Irda has said any difference in product specification for different age groups or for different entry age must be spelled out upfront in the prospectus and policy documents. The Irda has further said that each instance of delay in issue of identity cards to policyholders beyond 30 days from issue of policy may entail a penalty being levied on the concerned insurer.

All health insurance policies must enclose an annexure briefly describing in simple language the coverage and the key terms and conditions of the policy.Insurers will ensure data collation and timely compliance to providing the product-wise reports as and when required by the authority, providing information on the number of persons insured, claims data, distribution and claim settlement.

Insurers will reimburse at least 50% of the cost incurred by the insured in pre-insurance medical examination, in cases where the risk is accepted. In addition, insurers will also enlist (or empanel as the case may be) government medical institutions from which such pre-insurance reports will be accepted by them. Where the risk is accepted, copies of such medical examination reports should also be made available to the insured if requested for.

The Insurers will ensure adequate dissemination of product information on all their health insurance products in their websites. The information shall include a description of the product, and copies of the prospectus, proposal and policy clauses.

The Insurers will individually and collectively work towards evolving mechanisms for action against medical establishments, TPAs and policyholders guilty of making or supporting fraudulent claims and for sharing of such information among themselves, said Irda.

source: The Financial Express

News Flash

Sensitive Index Falls Most in Month on June Borrowing, Bharti, Larsen Drop Indian stocks fell the most in a month on concerns the new government will have to borrow more to boost the economy. Bharti Airtel Ltd. dropped for a second day after a proposal to buy a South African company.

India Bans Sugar Futures Trading as Government Considers Duty-Free Imports India banned futures trading in sugar, a day after Farm Minister Sharad Pawar said the government may allow duty-free imports of raw sugar beyond the Sept. 30 deadline to bolster local supplies.

Ten-Year Bond Yields at Six-Week High as India May Borrow More Than Plan India’s 10-year bond yields were at a six-week high after an official at the finance ministry said the government may borrow more than plan in June for a second month.

Tata Consultancy's Chandrasekaran to Take Over as Chief Executive Officer Tata Consultancy Services Ltd., India’s largest provider of software services, said Chief Operating Officer N. Chandrasekaran will take over as the chief executive officer starting Oct. 6. The tenure of present Chief Executive Officer S. Ramadorai has been extended until Oct. 5, the company said in a statement today.

Oil India May Sell Shares to Public, Refiners by September, Chairman Says Oil India Ltd., the second-biggest state-run energy explorer, may sell shares in an initial public offer by September, taking advantage of the stock market’s gains after the re-election of Manmohan Singh’s government.

Mukherjee Sees Signs of Reviving Economic Growth Ahead of India's Budget India’s Finance Minister Pranab Mukherjee said there are indications of a revival in economic growth, adding that he will use next month’s budget to build on the recovery.

G8 Nations Warn That Falling Energy Spending May Trigger Oil-Price Surge Reduced spending on energy threatens to slow the economic rebound, trigger a surge in prices and hurt future prosperity, the Group of Eight industrialized nations said at the close of their meeting in Rome.

Rupee Slumps Most in Three Months on Decline in Stocks, Technical Factor India’s rupee dropped the most in almost three months as North Korean missile and nuclear tests fueled tension in Asia, spurring concern foreigners will pare holdings of regional stocks.

Consumer Confidence in U.S. Increases to the Highest Level Since September Confidence among U.S. consumers jumped this month to the highest level since September, reflecting growing perceptions that the job market will improve.

Stocks in U.S. Extend Advance as Consumer Confidence Index Tops Estimates U.S. stocks rose, sending the Standard & Poor’s 500 Index higher for the first time in five days, as the biggest jump in consumer confidence in six years spurred optimism the worst of the recession is over.

Home Prices in 20 U.S. Cities Decline More Than Forecast Amid Foreclosures Home prices in 20 major metropolitan areas fell more than forecast in March as foreclosures surged, threatening to extend the housing slump.

U.S. Financial Overhaul Should Include Merger of SEC, Agencies, Group Says U.S. financial regulations must be “entirely reorganized” by merging agencies such as the Securities and Exchange Commission and the Commodity Futures Trading Commission, adding to the Federal Reserve’s powers and setting rules for derivatives, an industry group recommended.

Lehman's Bankruptcy Haunts Stocks With S&P 500 Cheapest to Corporate Bonds By almost any measure, credit markets have recovered most of the losses caused by September’s collapse of Lehman Brothers Holdings Inc. Not U.S. stocks.

GM Gets Concessions From Canadian Union Before Probable Bankruptcy Filing The Canadian Auto Workers union, almost one month after amending its contract with Chrysler LLC, ratified a cost-saving labor agreement with General Motors Corp. yesterday to protect jobs in a probable June 1 bankruptcy.

Old Mutual Says Capital Increase May Open Way for Resumption of Dividends Old Mutual Plc, the best-performing European insurance stock this year, said it may consider paying dividends again by the end of 2009.

source: Bloomberg

Edelweiss ELSS Fund changes benchmark index

With effect from 1 June 2009

Edelweiss Mutual Fund has approved that the benchmark index of Edelweiss ELSS Fund will be changed from BSE 500 to S&P CNX Nifty comprising of 50 scrips. The proposed change will be done with effect from 1 June 2009.

The change is being effected to bring in line the benchmark index with the investment strategy of the scheme.

Rationale for adoption of benchmark is given as: Edelweiss ELSS Fund will invest in companies that are large / broad market capitalisation based. Since the Fund will not restrict itself from investing in any particular size/type of company, it is best to have a broad based index for such a fund. Hence, S & P CNX Nifty is the appropriate benchmark for the Fund.

ICICI Pru Child Care Plan – Gift Plan revises load Structure

With effect from 01 June 2009

ICICI Prudential Mutual Fund has approved revision of load structure in ICICI Prudential Child Care Plan – Gift Plan, with effect from 01 June 2009.

Accordingly, the entry load (including Systematic Investment Plan (SIP) and Systematic Transfer Plan (STP)) will be 2.50%.

The scheme will charge an exit load of 1.50%, if the amount sought to be redeemed or switched out is invested for a period of upto one year from the date of allotment while it will charge exit load of 1.00%, if the amount sought to be redeemed or switched out is invested for a period of more than one year but upto a period of 3 years from the date of allotment.

ICICI Prudential Child Care Plan – Gift Plan is an open ended fund with an objective to generate capital appreciation by creating a portfolio that is invested in equity and equity related securities and debt and money market instruments.

Reliance Infrastructure Fund floats on

An open ended equity scheme

Reliance Mutual Fund has announced new fund offer period (NFO) of Reliance Infrastructure Fund, an open ended equity scheme. The fund is opened for fresh subscription from 25 May 2009 till 23 June 2009. The fund will re-open for continuous sale and purchase on or before 22 July 2009. The offer price is Rs 10 per unit.

Scheme features:

Investment Objective: The primary investment objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity related instruments of companies engaged in infrastructure and infrastructure related sectors and which are incorporated or have their area of primary activity, in India and the secondary objective is to generate consistent returns by investing in debt and money market securities.

Investment Options: The scheme will offer two plans i.e. retail and institutional option. Both plans will offer- growth plan with two plans growth option and bonus option and dividend plan with dividend payout option and dividend reinvestment option.

Asset Allocation: The scheme may invest up to 65%-100% in equities and equity related securities including derivatives engaged in infrastructure sectors and infrastructure related sectors. At least 65% of investment would be made in equity/equity related securities of companies engaged in infrastructure sectors and infrastructure related sectors. The scheme will have investment exposure up to 35% in debt and money market securities including investments in securitised debt. Investment in securitised debt should be up to 30%.

Entry Load:

For retail plan, 2.25% of entry load will be charged for the subscription below Rs 2 crore and 1.25% will be entry load for the subscription of Rs 2 crore & above but below Rs 5 crore and nil for the subscription amount of Rs 5 crore and more.

For institutional plan no entry load will be charged.

Exit Load:

Retail Plan: For subscription of less than Rs 5 crore per purchase transaction, the scheme will charge an exit load of 1.00% if redeemed/ switched on or before completion of 1 year from the date of allotment and nil if redeemed /switched after completion of 1 year from the date of allotment whereas it will not charge exit load for the purchase amount of more than Rs 5 crore.

Institutional plan may not charge exit load.

Minimum Investment Amount: The minimum investment amount under retail plan will be Rs 5,000 and in multiples of Re.1 thereafter and under institutional plan minimum investment amount will be Rs 5 crore and in multiples of Re.1 thereafter.

Minimum Targeted amount: The Fund seeks to collect a minimum subscription amount of Rs 100 crore during NFO.

Benchmark Index: The performance of the scheme will be benchmarked against BSE 100.

Fund Manager: Sunil Singhania will manage the fund.

Mutual funds continue buying

Purchases worth Rs 387.90 crore on 25 May 2009

Mutual funds (MFs) bought shares worth a net Rs 387.90 crore on Monday, 25 May 2009, lower than Rs 450.70 crore on Friday, 22 May 2009.

MFs' net inflow of Rs 387.90 crore on 25 May 2009 was a result of gross purchases Rs 1,105.30 crore and gross sales Rs 717.40 crore. The BSE Sensex rose 26.07 points or 0.19% to 13,913.22 on that day.

MFs were net buyer of shares worth Rs 557 crore in May 2009 (till 25 May 2009).

Light movement in gold; US floor session closed

MCX gold traded in the range of Rs 67 i.e from 14591 to 14524

Gold showed a light and range bound movement today as generally happens on the days when the equity markets are closed. The trading volumes were thinner with financial markets in London, U.S. and Japan all closed for holidays.

International and domestic gold futures had contrast moves today. COMEX Gold futures continued to dwindle as oil also fell down reading to weakness in the Asian and European equities. European stocks were weaker on Monday but pared earlier losses, after some gloomy news on a key business sentiment survey in Germany and plenty of worries in the auto industry. And trading in Asia and Europe was shadowed today by North Korea's announcement that it had successfully test-fired a nuclear weapon underground. That report was followed by others saying that the country test-fired a short-range missile

The US floor session will be closed today on account of the Memorial Day holiday. The most active COMEX Gold futures are down $2.8 at $956.8 an ounce. The next support comes around $ 948 levels.

The domestic Gold on MCX traded in the range of Rs 67 i.e from 14591 t0 14524. The counter traded in positive zone today as the Rupee appreciated today in comparison to its Friday's closing level thereby proving supportive for domestic commodities. Right now it is trading at Rs 14572 per 10 grams. It may continue to trade in the same rest for the rest of the session.

In the data releases this week we have GDP numbers from US. Apart from that we have US existing home sales, durable goods order, new home sales. Last week we saw the GDP numbers from UK and Japan, which came in better than expected indicating that the economies are improving.

FIIs in selling mode

Outflow of Rs 694.70 crore on 22 May 2009

Foreign institutional investors (FIIs) sold shares worth a net Rs 694.70 crore on Friday, 22 May 2009, as against an inflow of Rs 146.90 crore on Thursday, 21 May 2009.

FII outflow of Rs 694.70 crore on 22 May 2009 was a result of gross purchases Rs 2,412 crore and gross sales Rs 3,106.70 crore. The BSE Sensex had gained 150.61 points or 1.10% to 13,887.15 on that day.

FII inflow in May 2009 totaled Rs 14,242.40 crore (till 22 May 2009). FII inflow in calendar year 2009 totaled Rs 14,955 crore (till 22 May 2009).

There are a total of 1656 foreign funds registered with the Securities & Exchange Board of India (Sebi).

Escorts MF declares dividend

Record date for dividend is 29 May 2009

Escorts Mutual Fund has declared 29 May 2009 as the record date for dividend distribution under Escorts Income Plan. The fund house has decided to distribute Re 0.070 per unit as dividend as on the record date on the face value of Rs 10 per unit.

Escorts Income Plan recorded NAVs of Rs 11.4175 per unit under dividend option, Rs 28.1049 per unit under growth option and Rs 14.7987 per unit under bonus option as on 21 May 2009.

The investment objective of Escorts Income Plan is to generate current income by investing predominantly in a well-diversified portfolio of fixed income securities and money market instruments with moderate risk levels.

Escorts Opportunities Fund Declares 81st Dividend

Record date for dividend is 29 May 2009

Escorts Mutual Fund has declared 29 May 2009 as the record date for dividend distribution under Escorts Opportunities Fund. The fund house has decided to distribute Re 0.16 per unit as dividend as on the record date on the face value of Rs 10 per unit.

The scheme recorded NAVs of Rs 10.5456 per unit under dividend option and Rs 25.0810 per unit under growth option as on 21 May 2009.

The investment objective of Escorts Opportunities Fund is to generate long term capital appreciation by predominantly moving investments in a portfolio of equity and equity related securities amongst different sectors, present or future, expected to show high earnings such as technology sector, media sector, entertainment sector, communication sector, FMCG sector, pharmaceutical sector, cyclical sector, real estate sector, space sector cybercity sector etc.

UTI Dividend Yield Fund offers dividend

Record date for dividend is 29 May 2009

UTI Mutual Fund has announced dividend under dividend option of UTI Dividend Yield Fund. The record date for the declaration of dividend is 29 May 2009.

The quantum of dividend will be up to 60% of distributable surplus available as on record date. The NAV for retail plan was at Rs 11.2200 per unit as on 21 May 2009.

UTI Dividend Yield Fund, n open ended equity oriented scheme launched in April 2005. The fund seeks to provide medium to long term capital gains and / or dividend distribution by investing predominantly in equity and equity related instruments which offer high dividend yield.

News Flash

Bharti Renews Talks With South Africa's MTN in Possible $23 Billion Merger Bharti Airtel Ltd., India’s largest mobile-phone operator, is in talks to buy 49 percent of South Africa’s MTN Group Ltd., the first step in a potential $23 billion merger.

Rupee Falls Most in Two Weeks as North Korea Nuclear Test May Spur Outflow India’s rupee fell for the first time in seven days on concern overseas investors will pull money out of Asia after North Korea said it held a nuclear test today.

India's Political Stability Will Assist Economic Recovery, Mukherjee Says Pranab Mukherjee, named this weekend as India’s finance minister, will likely take advantage of the government’s stable majority to introduce measures to revive the economy amid a global slump.

Sensex Gains Led by Ranbaxy as Chief Executive Singh Quits; ONGC Declines India’s benchmark stock index advanced for a second day, led by Ranbaxy Laboratories Ltd. as its chief executive quit a month after the company forecast it would post a full-year loss.

Reliance, ONGC Decline After Report India May Cap Oil Producers' Earnings Reliance Industries Ltd., India’s most valuable company, and Oil & Natural Gas Corp., the biggest energy explorer, fell in Mumbai trading after the Economic Times reported the government plans to impose a cap on oil producers’ profits.

Ranbaxy Chief Executive Singh Steps Down in Daiichi Sankyo Turnaround Plan Ranbaxy Laboratories Ltd., heading for an annual loss and battling a U.S. ban on some of its drugs, said Chief Executive Officer Malvinder Singh quit as head of the company his family controlled for more than half a century.

Yen Falls Versus Dollar; North Korea Holds Nuclear Test, Launches Missiles The yen fell from the near highest level in more than two months against the dollar after North Korea conducted its first nuclear test in three years and launched three short-range missiles, posing a threat to the region’s security.

Barclays Capital Plans to Hire 65 Bankers to Expand European M&A Business Barclays Plc may hire as many as 65 bankers for its European mergers advisory business this year as Britain’s third-biggest bank seeks to become one of the top three global securities firms.

CIBC Ousts TD Securities as Top Equities Dealer as Banks Target Trading CIBC World Markets ousted TD Securities as the top equities trader for the first time in six years as Canadian banks use a rebound in trading to help replace profits lost to bad loans.

Canada Stocks Rise for Second Day Before Banks Report Results This Week Canadian stocks advanced for a second day, led by bank stocks before the industry begins reporting financial results this week.

Carmakers' Woes May Cost Six Million Jobs, Metalworkers' Union Head Says As many as six million unionized workers may lose their jobs because of the crisis in the automotive industry, according to Marcello Malentacchi, general secretary of the International Metalworkers’ Federation.

Hungary Keeps Main Interest Rate Unchanged for a Fourth Consecutive Month Hungary’s central bank kept the benchmark interest rate unchanged for a fourth month as policy makers seek evidence that the forint can maintain recent gains.

Bharti Revives Talks to Buy MTN Group Stake in Potential $23 Billion Deal Bharti Airtel Ltd., India’s largest mobile-phone operator, is in talks to buy 49 percent of South Africa’s MTN Group Ltd., the first step in a potential $23 billion merger.

source: Bloomberg

Reliance MF declares dividend for Monthly Interval Fund

Record date for dividend is 28 May 2009

Reliance Mutual Fund has declared dividend under dividend option of Reliance Interval Fund – Monthly Interval Fund -Series II. The record date for the dividend is 28 May 2009.

The fund house has decided to offer dividend on the face value of Rs 10 per unit for both plans viz. retail and institutional plans. The quantum of dividend will be 100% of distributable surplus as on the record date.

The NAV for the scheme under retail plan was Rs 10.0366 per unit and under institutional plan was Rs 10.0379 per unit as on 22 May 2009.

Reliance Interval Fund – Monthly Interval Fund, is a debt oriented interval 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 plan with the objective of limiting interest rate volatility

ICICI Pru MF declares dividend for 1 Year FMP

Record date for dividend is 28 May 2009

ICICI Prudential Mutual Fund has approved 28 May 2009 as the record date to distribute dividend under the dividend option of ICICI Prudential Fixed Maturity Plan- Series 44-1 Year Plan B, a close-ended debt fund.

The fund house has decided to offer 100% of distributable surplus as dividend as on the record date on the face value of Rs 10 per unit. The NAV of the scheme was at Rs 10.9053 per unit under retail option as on 20 May 2009. NAVs published only once a week i.e. every Wednesday.

The investment objective of the scheme is to generate returns by investing in a portfolio of fixed income securities/ debt instruments normally maturing in line with the time profile of the Scheme.

ICICI Pru MF declares dividend for quarterly interval plan

Record date for dividend is 28 May 2009

ICICI Prudential Mutual Fund has declared dividend under the dividend option of ICICI Prudential Interval Fund IV-Quarterly Interval Plan A. The fund house has decided to distribute dividend up to 100% of distributable surplus of the scheme on the face value of Rs 10 per unit as dividend on the record date of 28 May 2009.

The scheme recorded a NAV of Rs 10.0605 per unit under the retail plan as on 21 May 2009.

ICICI Prudential Interval Fund IV-Quarterly Interval Plan A 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.

Franklin Templeton MF declares dividend

Record date for dividend is 28 May 2009

Franklin Templeton Mutual Fund has declared 28 May 2009 as the record date for the declaration of dividend under Templeton Fixed Horizon Fund-Series VIII- Plan D (TFHF-Series VIII- Plan D). The fund house has decided to distribute 100% of distributable surplus as dividend on the record date on the face value of Rs 10 per unit.

The scheme is a closed end income fund with an objective to generate returns and reduce interest rate volatility, through a portfolio of fixed income securities with maturity profile generally in line with the fund's duration.

Magnum Taxgain Scheme 1993 declares dividend

Record date for dividend is 29 May 2009

SBI MF declared a dividend of Rs 2.80 per unit on face value of Rs 10 per unit in its open-ended equity linked savings scheme Magnum Taxgain Scheme 1993. The record date for the same is 29 May 2009. The NAV under for the scheme is Rs 35.51 as on 21 May 2009.

The objective of the scheme is to deliver the benefits of investing in a portfolio of equity shares, while offering tax rebate on such investments made in the scheme under section 80 C of the Income Tax Act, 1961 b.

IDFC Super Saver Income Fund declares dividend

Record date for dividend is 29 May 2009

IDFC Mutual Fund has approved 29 May 2009 as record date for dividend declaration under Bimonthly dividend option of IDFC Super Saver Income Fund- Medium Term Plan, an open-ended income scheme.

The scheme will offer dividend of Rs 0.15 per unit as on record date. The NAV of the scheme was recorded at Rs 10.5343 per unit as on 21 May 2009.

IDFC Super Saver Income Fund seeks to generate stable returns with a low risk strategy by investing in good quality fixed income securities and money market securities.

Birla Sun Life MF declares dividend in interval fund

Record date for dividend is 29 May 2009

Birla Sun Life Mutual Fund has approved the declaration of dividend under the dividend option of Birla Sun Life Quarterly Interval Fund-Series 2. The fund house has decided to distribute 100% distributable surplus as dividend on the record date of 29 May 2009.

The scheme recorded NAV of Rs 10.0669 per unit as on 21 May 2009.

Birla Sun Life Quarterly Interval Fund-Series 2 is an interval income scheme with an investment objective to generate regular income through investment in debt and money market instruments.

Bharti AXA Equity Fund declares dividend

Record ate for dividend is 29 May 2009

Bharti AXA Equity Fund declared a dividend under quarterly and regular dividend options of Regular, Eco plan and Institutional Plan in Bharti AXA Equity Fund. The record date for the same is 29 May 2009.

The quantum of the dividend for all the above plans under quarterly dividend option is Re 0.50 per unit (i.e. 5% per unit) and Re 1.00 per unit (i.e. 10% per unit) under regular dividend option.

The NAV of quarterly and regular dividend option of Regular plan was at Rs 14.18 per unit, respectively. Eco Plan recorded the NAV of Rs 14.21 per unit under quarterly and regular dividend options.

The scheme is an open ended equity growth fund, with investment objective to generate income and long term capital appreciation through a diversified portfolio of predominantly equity and equity related securities including equity derivatives, across all market capitalizations.