Precious metals gather some shine

Gold and silver prices rise with rising crude

Precious metal prices rose on Thursday, 30 July, 2009. Prices shone today as the rebounding crude price and weak dollar increased the appeal of precious metals as a hedge against inflation.

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, gold for August delivery ended at $934.9, higher by $7.7 (0.8%) an ounce on the New York Mercantile Exchange. Last week, gold ended higher by 1.6%. Year to date, gold prices are higher by 5.5%.

For the month of June, 2009, gold ended down by 5.4%. Gold had ended the month of May higher by 9.8%. It was the highest monthly gain registered by gold in six months. For the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year.

On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (11.5%) since then.

On Thursday, Comex silver futures for September delivery gained 48.2 cents (3.5%) at $13.258 an ounce. Last week, silver ended higher by 3.5%.

Silver ended 13% down for the month of June, 2009. For the month of May, silver gained 26.6%. It was the biggest monthly gain for silver in more than two decades. For second quarter, silver rose 4.5%. Year to date, silver has climbed 21.7% this year. For 2008, silver had lost 24%.

In the currency market on Thursday, the dollar index, a six-currency gauge of the greenback's value, rose modestly.

In the crude market, crude prices rose in synchronization with US stocks.

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

At the MCX, gold prices for October delivery closed higher by Rs 45 (0.3%) at Rs 14,696 per 10 grams. Prices rose to a high of Rs 14,715 per 10 grams and fell to a low of Rs 14,631 per 10 grams during the day's trading.

At the MCX, silver prices for September delivery closed Rs 274 (1.25%) higher at Rs 22,153/Kg. Prices opened at Rs 21,945/kg and rose to a high of Rs 22,238/Kg during the day's trading.

FII July 2009 inflow crosses Rs 11,000 crore

Inflow of Rs 1184 crore on 30 July 2009

Foreign institutional investors (FIIs) bought shares worth a net Rs 1184 crore on Thursday, 30 July 2009, much higher than Rs 139.10 crore on Wednesday, 29 July 2009. The strong inflow has boosted sentiment on the stock markets with the BSE Sensex today, 31 July 2009, striking its highest level in more than 13 months.

The net inflow of Rs 1184 crore on 30 July 2009 was a result of gross purchases Rs 5071.20 crore and gross sales Rs 3887.20 crore.

FII inflow reached Rs 11066.30 crore in July 2009 (till 30 July 2009). The inflow reached Rs 35369.90 crore in calendar year 2009.

Crude claims back yesterday's losses

Prices rise as US stocks cheer economic data

Crude prices ended higher on Thursday, 30 July, 2009. Prices rose today in synchronization with US stocks which welcomed the news of modest rise in initials claims for last week. The weak dollar was also responsible for the rise.

On Thursday, crude-oil futures for light sweet crude for September delivery closed at $66.94/barrel (higher by $3.59 or 5.7%). Last week, crude ended higher by 7.1%.

For the month of June, 2009, crude ended higher by 5.5%. In May, crude had registered the largest monthly gain in a decade rising 30%. For the second quarter, crude ended higher by 40%. Crude prices had rallied 11.3% in the first quarter of 2009.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 51% since then. In July, 2009, it has dropped by 4.6% till date. Year to date, in 2009, crude prices are higher by 41.7%.

US stocks registered good gains today after Labor Department reported that initial claims rose last week but the trend fell and fewer people were continuing to collect unemployment checks. The first-time claims for state jobless benefits crept up in the latest week but ws in line with expectations. Initial weekly jobless claims rose by 25,000 to a seasonally adjusted 584,000 during the week ended 25 July, 2009.

EIA reported yesterday that crude supplies rose by 5.1 million barrels to stand at 347.8 million barrels during the week ended 24 July, 2009. The EIA also reported that motor gasoline inventories fell by 2.3 million barrels and distillate supplies rose by 2.1 million barrels last week.

Also at the Nymex on Thursday, August reformulated gasoline rose 13.61 cents, or 7.3%, to $1.9911 a gallon and August heating oil gained 9.72 cents, or 5.8%, to $1.7685 a gallon.

September natural-gas futures rose 21.5 cent, or 6.1%, to $3.763 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 August delivery closed higher by Rs 138 (4.45%) at Rs 3,234/barrel. Natural gas for August delivery closed at Rs 181.7/mmbtu, higher by Rs 9.8/mmbtu (5.7%).

News Flash

Reliance Communications Profit Unexpectedly Rises After Bharti Gap Narrows Reliance Communications Ltd., India’s second-largest mobile-phone company, reported an unexpected increase in first-quarter profit after adding subscribers and boosting income other than from its operations.

India's Central Bank Aims to Unwind Expansionary Steps, Subbarao Says India’s central bank aims to reverse expansionary monetary measures if the government commits itself to fiscal discipline and the economy recovers, Governor Duvvuri Subbarao said in New Delhi today.

Hindalco's First-Quarter Profit Beats Analysts' Estimates; Shares Surge Hindalco Industries Ltd., India’s biggest aluminum producer, reported a 31 percent decline in first-quarter profit, beating analysts’ expectations, on lower metal prices. The shares surged.

China May Seek Lower Potash Prices Than India on Inventories, Slack Demand China, the world’s largest consumer of potash, may seek lower prices for the fertilizer than India secured from suppliers in Russia, the Middle East and Canada, because of slack domestic demand and high stockpiles.

Rupee Rallies to 1-Month High as Inflows Boost Balance of Payments Outlook India’s rupee climbed to the highest level in almost a month, completing a third weekly advance, on speculation rising investments from abroad will boost the nation’s balance of payments surplus.

Sensitive Index Advances to One-Year High on Indian Earnings, Commodities Indian stocks rose to their highest in more than a year, led by Hindalco Industries Ltd. and Reliance Infrastructure Ltd. after their first-quarter profits beat estimates.

U.S. Economy Shrinks at 1% Annual Rate; Spending Falls More Than Estimated The worst U.S. economic slump since the Great Depression abated in the second quarter as government spending programs started to kick in, while the deepest retrenchment by consumers since 1980 augured a muted recovery.

IMF Says U.S. Recovery to Be `Gradual,' More Stimulus Funds May Be Needed The U.S. economic recovery is likely to be “gradual” and officials should be prepared to inject more monetary and fiscal stimulus should the rebound falter, the International Monetary Fund said.

Treasuries Rise as Consumer Spending Decline Signals Recovery Is Faltering Treasuries gained, with 10-year yields falling for a fourth day, after a report showed spending by U.S. consumers, which accounts for more than two-thirds of the economy, fell more than forecast in the second quarter.

UBS Tax-Evasion Agreement Is Worked Out by U.S., Switzerland, Lawyer Says The U.S. and Switzerland reached an agreement to settle a U.S. Justice Department lawsuit against UBS AG seeking the names of 52,000 American account holders, a lawyer told a federal judge in Miami.

Ackermann Says Rising Delinquencies Represent `Next Wave' of Bank Crisis Rising delinquencies among consumer and corporate borrowers are the “next wave” of the financial crisis and may affect banks that have avoided losses so far, said Deutsche Bank AG Chief Executive Officer Josef Ackermann.

Bank Bonus Curbs Face Senate, Obama Skepticism as House Prepares to Vote Restrictions on financial industry bonuses heading to a vote in the U.S. House may be rejected by the Senate and the Obama administration, which are reluctant to increase government’s role in deciding compensation.

Jeweler Finlay Is Said to Get Two Bids Before Possible Bankruptcy Filing Finlay Enterprises Inc., the jewelry retailer founded in 1887, received two bids in advance of a potential bankruptcy filing, according to two people familiar with the situation.

source: Bloomberg

Tata MF Revises Load Structure in Various schemes

With effect from 1 August 2009

Tata Mutual Fund has decided to revise the entry and exit load for various schemes with effect from 1 August 2009

The fund house has decided to revise the exit load for Tata Select Equity Fund (TSEF), Tata Life Sciences & Technology Fund (TLSRF), Tata Growth Fund (TGF), Tata Equity P/E Fund (TEQPEF), Tata Dividend Yield Fund (TDYF), Tata Service Industries Fund (TSIF), Tata Balanced Fund (TBF), Tata Mid Cap Fund (TMCF), Tata Contra Fund (TCF), Tata Infrastructure Fund (TISF), Tata Pure Equity Fund (TPEF), Tata Equity Opportunities Fund (TEOF), Tata Equity Management Fund (TEMF), Tata Growing Economies Infrastructure Fund (TGEIF).

Revised Entry Load:

Accordingly, no entry load will be charged for purchase/additional purchase/switch-in accepted by the fund. Similarly, no entry load will be charged with respect to applications for registrations under systematic investment plans/systematic transfer plans accepted by the fund.

Revised Exit Load:

The fund house has decided to revise the exit load for Tata Select Equity Fund, Tata Life Sciences & Technology Fund , Tata Growth Fund , Tata Equity P/E Fund , Tata Dividend Yield Fund , Tata Service Industries Fund , Tata Balanced Fund , Tata Mid Cap Fund , Tata Contra Fund , Tata Infrastructure Fund , Tata Pure Equity Fund , Tata Equity Opportunities Fund , Tata Equity Management Fund , Tata Growing Economies Infrastructure Fund .

For investment amount less than Rs 5 crore: The schemes will charge an exit load of 1 %, if redeemed on or before expiry of 36 months from the date of allotment.

If redeemed on or after expiry of 36 months from the date of allotment, the exit load is Nil

For investment amount greater than or equal to Rs 5 crore, the exit load is Nil

The above exit load will be applicable in respect of investment by way of fresh purchase / additional purchase / switch-in accepted by the Fund with respect to applications for registrations under systematic investment plans / systematic transfer plans accepted by the fund.

There is no change in the entry as well as exit load structure respect to applications for registrations under systematic investment plans / systematic transfer plans

Reliance MF revises exit load for various schemes

With effect from 1 August 2009

Reliance Mutual Fund has decided to revise exit load structure for retail & institutional plan of Reliance Growth Fund, Reliance Vision Fund, Reliance Equity Opportunities Fund, Reliance Equity fund, Reliance Natural Resources Fund Reliance Equity Advantage Fund, Reliance Diversified Power Sector Fund and Reliance Banking Fund: with effect from 1 August 2009

Retail Plan: For subscriptions of less than Rs 5 crore, exit load will be 1% of the applicable NAV, if redeemed or switched out on or before completion of 3 years from the date of allotment of unit. If redeemed or switched out after the completion of 3 years from the date of allotment of units, exit load charge will be nil.

For subscriptions of Rs 5 crore and above: Exit load will be 1% of the applicable NAV, if reedeemed or switched out on or before completion of 10 days from the date of allotment of units. There shall be no exit load after completion of 10 days from the date of allotment of units.

Institutional Plan:

Exit load will be 1% of the applicable NAV if redeemed or switched out on or before completion of 10 days from the date of allotment of funds. There should be no exit load after completion of 10 days from the date of allotment of units

Reliance NRI Equity Fund modifies exit load

With effect from 1 August 2009

Reliance Mutual Fund has decided to revise exit load structure for Reliance NRI Equity Fund, with effect from 1 August 2009

For subscriptions of less than Rs 5 crore, exit load will be 1% of the applicable NAV, if redeemed or switched out on or before completion of 3 years from the date of allotment of unit. If redeemed or switched out after the completion of 3 years from the date of allotment of units, exit load charge will be Nil.

For subscriptions of Rs 5 crore and above, exit load charge is 1% of the applicable NAV, if redeemed or switched out on or before completion of 10 days from the date of allotment of units. There shall be no exit load after completion of 10 days from the date of allotment of units.

Crude plunges

Inventory report pushes crude substantially lower

Crude prices ended substantially lower on Wednesday, 29 July, 2009. Prices dropped as energy department reported more than expected build up in crude inventories for last week. The strong dollar was also responsible for the drop in price today.

On Wednesday, crude-oil futures for light sweet crude for September delivery closed at $63.35/barrel (lower by $3.88 or 5.8%). Last week, crude ended higher by 7.1%.

For the month of June, 2009, crude ended higher by 5.5%. In May, crude had registered the largest monthly gain in a decade rising 30%. For the second quarter, crude ended higher by 40%. Crude prices had rallied 11.3% in the first quarter of 2009.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 54.4% since then. In July, 2009, it has dropped by 10.3% till date. Year to date, in 2009, crude prices are higher by 36%.

EIA reported today that crude supplies rose by 5.1 million barrels to stand at 347.8 million barrels during the week ended 24 July, 2009.

The EIA also reported that motor gasoline inventories fell by 2.3 million barrels and distillate supplies rose by 2.1 million barrels last week.

In the currency market on Wednesday, the dollar index, a six-currency gauge of the greenback's value, rose by more than 0.7%. The euro fell by more than 1% against the dollar.

Also at the Nymex on Wednesday, August reformulated gasoline fell 5 cents to end at $1.86 a gallon and August reformulated gasoline dropped 9 cents to finish at $1.67 a gallon.

August natural gas ended down 16 cents, or 4.5%, at $3.38 per million British thermal units. The contract expired at the end of trading today.

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

At the MCX, crude oil for August delivery closed lower by Rs 156 (4.8%) at Rs 3,096/barrel. Natural gas for August delivery closed at Rs 171.9/mmbtu, lower by Rs 5.9/mmbtu (3.3%).

Precious metals turn paler

Gold and silver drop as dollar continues to gain

Precious metal prices fell on Wednesday, 29 July, 2009. The strong dollar was mainly responsible for this.

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, gold for August delivery ended at $927.2, lower by $11.9 (1.3%) an ounce on the New York Mercantile Exchange. Last week, gold ended higher by 1.6%. Year to date, gold prices are higher by 4.7%.

For the month of June, 2009, gold ended down by 5.4%. Gold had ended the month of May higher by 9.8%. It was the highest monthly gain registered by gold in six months. For the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year.

On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (11.5%) since then.

On Wednesday, Comex silver futures for September delivery lost 48 cents (3.5%) at $13.26 an ounce. Last week, silver ended higher by 3.5%.

Silver ended 13% down for the month of June, 2009. For the month of May, silver gained 26.6%. It was the biggest monthly gain for silver in more than two decades. For second quarter, silver rose 4.5%. Year to date, silver has climbed 18.2% this year. For 2008, silver had lost 24%.

In the currency market on Wednesday, the dollar index, a six-currency gauge of the greenback's value, rose by more than 0.7%. The euro fell by more than 1% against the dollar.

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

At the MCX, gold prices for August delivery closed lower by Rs 90 (0.6%) at Rs 14,651 per 10 grams. Prices rose to a high of Rs 14,750 per 10 grams and fell to a low of Rs 14,618 per 10 grams during the day's trading.

At the MCX, silver prices for September delivery closed Rs 517 (2.3%) lower at Rs 21,879/Kg. Prices opened at Rs 22,336/kg and fell to a low of Rs 21,758/Kg during the day's trading.

FII buying slows down

Inflow of Rs 139.10 crore on 29 July 2009

Foreign institutional investors (FIIs) bought shares worth a net Rs 139.10 crore on Wednesday, 29 July 2009, much lower than Rs 738.10 crore on Tuesday, 28 July 2009.

FII inflow of Rs 139.10 crore on 29 July 2009 was a result of gross purchases Rs 2,851.70 crore and gross sales Rs 2,712.60 crore. The BSE Sensex lost 158.48 points or 1.03% to 15,173.46 on that day.

FII inflow in July 2009 totaled Rs 9,653.60 crore (till 29 July 2009). FIIs had bought stocks worth a net Rs 3,224.90 crore in June 2009. FII inflow in calendar year 2009 totaled Rs 34,197.80 crore (till 29 July 2009).

There are a total of 1678 foreign funds registered with the Securities & Exchange Board of India (Sebi).

Inflation in negative zone

RBI forecast's 5% by end March 2010

The official Wholesale Price Index for all commodities for the week ended 18th July 2009 rose by 0.04% to 236.8 from 236.7 for the previous week.

The annual rate of inflation, calculated on point-to-point basis, stood at -1.54% for the week ended 18 July 2009 compared with 19 July 2008. India's WPI is constantly moving in negative zone, thanks to the higher base effect. However the trend is expected to reverse in near term with lower base effect setting in.

The index for primary article rose by 0.3% to 261.1 from 260.3 for the previous week. In primary article index, 'Food Articles' group index rose by 1.2% to 259.0 from 255.9 for the previous week due to higher prices of mutton (14%), arhar (9%), gram (4%), moong, jowar, fruits & vegetables and masur (3% each), bajra and urad (2% each) and maize and ragi (1% each). However, the prices of condiments & spices (1%) declined.

The index for 'Non-Food Articles' group rose by 1.7% to 242.5 from 238.4 for the previous week due to higher prices of logs & timber (35%), copra (3%), raw silk (2%) and rape & mustard seed, raw cotton and gingelly seed (1% each). However, the prices of sunflower (1%) declined.

The index for 'Minerals' group declined by 16.8% to 561.7 from 675.4 for the previous week due to lower prices of iron ore (24%) and felspar (3%). However, the prices of vermiculite (86%), manganese ore (77%), silica sand (4%) and barytes (2%) moved up.

The index for fuel and power declined by 0.1% to 338.2 from 338.4 for the previous week due to lower prices of aviation turbine fuel (7%).

The index for manufactured group declined by 0.1% to 205.7 from 205.9 for the previous week. The index for 'Food Products' group declined by 0.4% to 232.1 from 233.0 for the previous week due to lower prices of oil cakes (3%) and cotton seed oil (1%). However, the prices of imported edible oil (4%) and rice bran oil, coconut oil, sugar, butter, ghee and gur (1% each) moved up.

The index for 'Beverages Tobacco & Tobacco Products' group rose marginally to 304.4 from 304.3 for the previous week due to higher prices of soft drinks (all kinds) (1%).

The index for 'Textiles' group declined by 0.2% to 143.4 from 143.7 for the previous week due to lower prices of hessian cloth (3%) and hessian & sacking bags (2%).

The index for 'Chemicals & Chemical Products' group rose marginally to 227.1 from 227.0 for the previous week due to higher prices of acid (all kinds) (1%).

The index for 'Non-Metallic Mineral Products' group declined by 0.1% to 222.5 from 222.8 for the previous week due to marginal decline in the prices of cement.

The index for 'Basic Metals Alloys & Metal Products' group rose marginally to 255.1 from 255.0 for the previous week due to higher prices of foundry pig iron and basic pig iron (1% each). However, the prices of other iron steel, steel ingots and lead ingots (1% each) declined.

The WPI inflation turned negative in June 2009 due to the statistical base effect and not because of any contraction in demand. Within WPI, inflation of primary articles, particularly food articles, are continuously rising, recording a growth of 8.57% in June 2009 over 5.94% in June 2008. Moreover consumer price indices (CPIs) are at elevated levels, indeed have also hardened in recent months.

Growing demand and concern on supply has resulted into higher prices of essential commodities. This has again raised the expectations of rise in inflation. In recent policy review, RBI has projected 5% inflation for end, March 2010 that is higher then 4% projected in the Annual Policy meet on 21 April 2009.

Moving further, the rising commodity prices globally and the uncertain monsoon outlook could further accentuate food price inflation.

News Flash

State Bank of India First-Quarter Profit Beats Estimates on Trading Gains State Bank of India, the nation’s largest, said first-quarter profit rose 42 percent, exceeding analysts’ estimates, after it posted gains from trading and reversed previous investment losses.

India's Wettest Month to Get More Rain Than Forecast, Aiding Crop Health India received more rainfall this month than forecast by the weather bureau, helping ease a dry spell that’s affected sowing of crops in the world’s second- biggest producer of rice, wheat and sugar.

Sensitive Index Has First Gain in Four Days; State Bank Rises on Earnings Indian stocks rose for the first time in four days. State Bank of India Ltd. led banking stocks higher after first-quarter earnings beat estimates. Tata Consultancy Services Ltd. paced advances by software exporters.

Steel Authority of India First-Quarter Profit Declines on Falling Prices Steel Authority of India Ltd., the nation’s second-biggest steelmaker, reported a drop in profit for the third straight quarter because of lower prices.

Mahindra First-Quarter Profit More Than Doubles, Tops Estimates, on Sales Mahindra & Mahindra Ltd., India’s largest maker of sport-utility vehicles and tractors, said first-quarter profit more than doubled after it boosted sales and raw material prices eased.

Indian Oil Profit Surges, Beating Estimates, as Crude Oil Prices Decline Indian Oil Corp., the nation’s largest refiner, said profit surged, beating estimates, helped by narrowing revenue losses from selling fuels below cost and stockpile gains. The shares rose the most in two months.

Inflation in India Falls for Seventh Week Before Expected `Creeping' Gain India’s wholesale prices fell for a seventh straight week, ahead of an expected “creep up” in the inflation rate later this year that may force the central bank to raise borrowing costs.

Ten-Year Bonds Decline Before India Auctions $2.5 Billion of Debt Tomorrow Indian bonds fell for a second day before a debt auction tomorrow, amid concern the government’s plans to raise a record 4.51 trillion rupees ($93 trillion) from sales this financial year will drive up borrowing costs.

Anil Ambani Says There's No Question of Renegotiating Gas Supply Agreement Indian billionaire Anil Ambani, whose company Reliance Natural Resources Ltd. is caught in a legal dispute over gas supply with his elder brother’s company, Reliance Industries Ltd., comments on the case. The brothers split the Reliance group in 2005.

Stocks in U.S. Advance on Earnings, Unemployment Data; Motorola, GE Gain U.S. stocks rallied, pushing the Standard & Poor’s 500 Index to the highest level in almost nine months, as companies from Motorola Inc. to MasterCard Inc. posted better-than-estimated results and jobless claims held below June levels.

Initial Jobless Claims in U.S. Increase; Total Rolls Unexpectedly Decline The number of Americans filing claims for jobless benefits last week held below levels seen in late June, before auto-related distortions set in, indicating firings are slowing as the economy stabilizes.

Citigroup Sells Nikko Asset Management to Sumitomo Two Years After Merger Citigroup Inc. agreed to sell its Japanese asset management unit to Sumitomo Trust & Banking Co., Japan’s fifth-largest bank, for 75.6 billion yen ($795 million), as the bank divests assets to pay back the U.S. government.

Motorola Climbs After Quarterly Loss Is Narrower Than Analysts Predicted Motorola Inc., the biggest U.S. mobile-phone maker, jumped the most in nine months after posting a narrower second-quarter loss than analysts projected, helped by job cuts and a recovery in handset shipments.

Yahoo's Bartz Gets `Vote of No Confidence' as Microsoft Deal Sinks Shares The honeymoon is over for Yahoo! Inc. Chief Executive Officer Carol Bartz.

Fannie Mae, Freddie Mac Won't Be Able to Repay All U.S. Aid, Lockhart Says Fannie Mae and Freddie Mac, the largest U.S. mortgage-finance companies, won’t be able to repay all of the $84.9 billion in federal aid they have received since being seized by the government last year, their regulator said.

American Superconductor Soars as Maker of Wind-Energy Parts Reports Profit American Superconductor Corp., a maker of wind energy components and transmission lines, surged the most in a year after reporting its first quarterly profit in 18 years as a public company on Chinese sales.

source: Bloomberg

Sahara Star Value Fund floats on

NFO period from 30 July-28 August 2009

Sahara Mutual Fund has launched new fund offer of Sahara Star Value Fund, an open-ended growth scheme on 30 July 2009. The fund will be opened for fresh subscription till 28 August 2009. The face value of the new issue is Rs 10 per unit.

The investment objective would be to provide long term capital appreciation by investing predominantly in equity / equity related instruments of select companies based on value parameters.

The scheme will offer growth & dividend options. Dividend option will further offer reinvestment facility.

The minimum investment amount for all categories of investors would be Rs 5000 and in multiples of Re 1 thereafter.

The scheme will levy an entry load of 2.25% and it will charge 1% of an exit load for the investment amount greater than or equal to Rs 5 lakh if redeemed on or before 1 year from the date of allotment and nil for the redemptions beyond one year. For investment amount less than Rs 5 lakh, no exit load will be charged.

SBI MF waits Sebi approval to launch SBI PSU Fund

Exposure will be in listed PSU companies

SBI Mutual Fund has filed offer document with Securities and Exchange Board of India (SEBI) to launch SBI PSU Fund, an open ended equity scheme. The face value of the new issue will be Rs 10 per unit.

The objective of the scheme is to provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme through an active management of investments in a diversified basket of equity stocks of domestic Public Sector Undertakings and in debt and money market instruments issued by PSUs and others.

The scheme offers growth and dividend option. Under the dividend option, facility for payout and reinvestment of dividend is available.

The minimum application amount is Rs 5000 and in multiples of Re 1 thereafter.

The scheme seeks to collect a minimum corpus of Rs 100 crore during NFO period.

The scheme will invest of 65-100% in equity and equity related instruments covered under the universe of listed PSU Companies including derivatives with medium to high risk profile. It will have investment up to 35% in debt and money market securities with low to medium risk profile.

The scheme will not charge entry load during NFO as well as ongoing basis.

For investments below Rs. 5 crore, exit between 12 months from the date of allotment, the scheme may levy exit load of 2% and for investments below Rs. 5 crore, exit after 12 months from the date of allotment, 1% will be the exit load. While no exit load for investments of 5 crore and above.

The performance of the scheme is set as BSE PSU Index.

Rama Iyer Srinivasan will manage the scheme.

Franklin Templeton MF invests in Career Point Infosystems

Enters into areas of education

Franklin Templeton Mutual fund (FT India) announced that Franklin Templeton Private Equity Strategy, a private equity portfolio managed by FT India and advised by Darby Asia Investors (India) (“Darby India”) the private equity affiliate of Franklin Templeton, has invested Rs 500 million in Rajasthan based Career Point Infosystems ("Career Point"). Transaction details were not disclosed.

Career Point is one of the largest and most successful competitive examination preparation companies in India, engaged in coaching for admission to IITs, NITs and other engineering colleges and universities. It has operations in 29 cities through a mix of company run as well as franchisee operations. The funds will be used for expanding its existing operations and entering into other areas of education.

Franklin Templeton Private Equity Strategy is a private equity investment product offered to high net worth individuals in India and closed in 2008. The objective of it is to make selective investments in high growth, mid-sized unlisted companies in India - in areas such as infrastructure, manufacturing, and consumer goods, and in related sectors.

Franklin Templeton has over 60 years of investment experience in international markets with presence in 30 countries and is one of the world's leading investment manager with US$451.2 billion of assets under management (June 2009).

Darby Overseas Investments (“Darby”) is the private equity arm of Franklin Templeton Investments, and is a premier investment manager in emerging markets private equity and infrastructure investing with over $2.6 billion assets under management. Darby India is an affiliate of Darby.

Career Point Infosystems (“Career Point”) is a pioneer in the engineering entrance test preparation segment of the fast growing Indian test preparation market. It has an established track record of over 15 years and has built a brand in the engineering test preparation market.

SBI MF revises exit load structure for various funds

With effect from 1 August 2009

SBI Mutual Fund revises the exit load structure for Magnum Balanced Fund, Magnum Equity Fund, Magnum Multiplier Plus 1993, Magnum Global Fund, Magnum Midcap Fund, Magnum Comma Fund, Magnum Sector Funds Umbrella – Contra, Pharma, FMCG, IT & Emerging Business Fund, Magnum Multicap Fund, SBI Bluechip Fund, and Magnum NRI Investment Fund – Flexi asset Plan. It also includes Systematic Investment Plan (SIP) except SBI Chota SIP. The change will take effect from 1 August 2009.

Revised Exit Load structure: Accordingly investments below Rs 5 crore, exited before 3 years from the date of allotment, an exit load of 1% will be charged. For investments below Rs 5 crore, exited on or after 3 years from the date of allotment, the exit load will be nil. For investments above Rs 5 crore, the exit load will be nil.

The exit load applicable for SBI Chota SIP remains unchanged.

HSBC MF revises load structure

With effect from 1 August 2009

HSBC Mutual fund has decided to revise the entry and exit load structure of all the schemes of the fund house, with effect from 1 August 2009.

Entry Load: Accordingly, no entry load will be charged for purchase/additional purchase/switch-in accepted by the fund. Similarly, no entry load will be charged with respect to applications for registrations under HSBC systematic investment plans/HSBC systematic transfer plan / HSBC Systematic Investment Plan Plus accepted by the fund.

The upfront commission on investment made by the investor, if any, shall be paid to the ARN Holder directly by the investor, based on the investor's assessment of various factors including services rendered by the ARN Holder.

Exit Load: The scheme will charge an exit load up to 1% of the redemption value charged to the unit holder by the fund on redemption of units shall be retained by each of the schemes in a separate account and will be utilized for payment of commissions to the ARN holders and to meet other marketing and selling expenses.

Any amount in excess of 1% of the redemption value charged to the unit holder as exit load shall be credited to the respective scheme immediately.

Fortis MF revises load structure for various schemes

With effect from 1 August 2009

Fortis Mutual Fund revises the entry and exit load structure for Fortis Equity Fund, Fortis Opportunity Fund, Fortis Dividend Yield Fund, Fortis Future Leaders Fund and Fortis China-India Fund. The change will take effect from 1 August 2009.

Revised Load structure:

Accordingly, for application amount below 2 crores, the scheme will not charge any entry load. The scheme will charge 2.00% as exit load, if redeemed/switched out within 1 year from the date of subscription/ switch in. It will charge an exit load of 1.00%, if redeemed/switched out after 1 year but within 3 years from the date of subscription/ switch in. And the scheme will not charge any exit load, if redeemed/switched out after 3 years from the date of subscription/ switch in.

For application amount of 2 crores and above, the revised entry and exit load charge will be nil.

The above load shall also be applicable to the prospective investors in case of switches between equity schemes of the fund and all systematic investment plans, systematic transfer plans and systematic withdrawal plans. No exit load will be charged on switches between options of the same equity schemes of the fund.

Birla Sun Life MF announces change in load structure

With effect from 3 August 2009

Birla Sunlife Mutual Fund has revised load structure in Birla Sun Life Floating Rate Fund – Long Term Plan, an open ended income scheme, with effect from 3 August 2009. The change also includes for Systematic Investment Plan (SIP) Transactions.

Revised Structure:

Accordingly, the entry load charge will be nil. The scheme will charge an exit load of 3% of applicable NAV, for redemption/ switch out of units within 3 years from the date of allotment.

Existing Structure:

The scheme charges an entry load of 1.00% of the applicable NAV for purchase/ switch in units. The scheme charges an exit load of 2.00% of applicable NAV for redemption/ switch out of units within 365 days from the date of allotment

The scheme has the investment objective to generate regular income through investment in a portfolio comprising substantially of floating rate debt/ money market instruments. The scheme may invest a portion of its net assets in fixed rate debt securities and money market instruments.

HSBC MF revises exit load structure for various funds

With effect from 1 August 2009

HSBC Mutual Fund revises the exit load structure for HSBC Equity Fund, HSBC India Opportunities Fund, HSBC Progressive Themes Fund, HSBC Midcap Equity Fund, HSBC Emerging Markets Fund, HSBC Dynamic Fund. The change will be effective from 1 August 2009.

Revised Exit Load Structure (including HSBC SIP/HSBC STP/HSBC SIP Plus): Accordingly, 2% of an exit load will be charged for the investment amount below Rs 5 crore, if redeemed / switched out within 1 year from date of investment, and it will charge an exit load of 1% for the investments below Rs 5 crore, if redeemed / switched out on or after 1 year but within 2 years from date of investment, otherwise nil.

Escorts MF amends load structure

With effect from 1 August 2009

Escorts Mutual fund has decided to revise the entry and exit load structure of all the schemes of the fund house, with effect from 1 August 2009.

In accordance to the requirements specified by Securities and Exchange Bard of India (Sebi) circular dated 30 June 2009, no entry load will be charged for purchase/additional purchase/switch-in from other schemes.

The upfront commission to distributor will be paid by the investor directly to the distributor, based on his assessment of various factors including service rendered by the distributor.

The scheme will charge an exit load or Contingent Deferred Sales Charge (CDSC) up to 1% of the redemption value charged to the unit holder by the fund on redemption of units shall be retained by each of the schemes in a separate account and will be utilized for payment of commissions to the distributor and to meet other marketing and selling expenses.

Escorts MF modifies exit load structure in various funds

With effect from 1 August 2009

Escorts Mutual Fund has proposed to revise exit load structure of various funds with effect from 1 August 2009.

Escorts Growth Plan, Escorts High Yield Equity Plan, Escorts Leading Sectors Fund, Escorts Power & Energy Fund, Escorts Balanced Fund:

These funds will charge an exit load of 1% if redemption done on or before 2 years from the date of allotment while no exit load will be levied for redemption made after 2 years from the date of allotment.

Escorts Opportunities Fund:

This fund will charge exit load of 1% if redemptions done within 2 years from the date of allotment, 0.50% for redemption after 2 years but on or before 3 years from the date of allotment. The scheme will not ask exit load if exit after 3 years.

Escorts Income Plan, Escorts Income Bond, and Escorts Gilt Plan:

These schemes will impose 0.50% exit load if investment units gets redeemed on or before 6 months from the date of allotment and no exit load for exit after 6 months from the date of allotment.

Change in Key Personnel at Escorts MF

Anil Kataria resigns

Anil Kataria has been deleted from the list of Key Personnel on his resignation from the fund house.

ING MF Revises Load Structure in various funds

With effect from 1 August 2009

ING Mutual fund has decided to revise exit load structure of following schemes with effect from 1 August 2009.

ING Gilt Fund - Provident Fund – Dynamic Plan: If redeemed on or before 365 days from the date of allotment 1.25%, 1% will be the exit load while nil for investments redeemed after 365 days from the date of allotment.

ING Core Equity Fund, ING Contra Fund, ING Mid Cap Fund, ING Dividend Yield Fund, ING Balanced Fund, ING Optimix 5 Star Multi Manager FoF Scheme & ING Optimix Asset Allocator Multi Manager FoF Scheme, ING Domestic Opportunities Fund and ING Nifty Plus Fund:

For applications below Rs.1 crore: If investments redeemed on or before 3 years from the date of allotment, 1% will be the exit load while nil for investments redeemed after 3 years from the date of allotment.

For applications equal to or above Rs.1 crore but less than or equal to Rs. 2 crore: For redemption done on or after 6 months from the date of allotment, the fund will levy 1% exit load and no exit load for redemption after 6 months from the date of allotment.

There will be no exit load for applications above Rs. 2 crore.

ING Optimix Multi Manager Equity Fund:

For applications below Rs.1 crore: If investments redeemed on or before 3 years from the date of allotment, 1% will be the exit load while nil for investments redeemed after 3 years from the date of allotment.

For applications equal to or above Rs.1 crore but less than or equal to Rs. 2 crore: For redemption done on or after 6 months from the date of allotment, the fund will levy 1% exit load and no exit load for redemption after 6 months from the date of allotment.

There will be no exit load for applications above Rs. 2 crore.

ING Latin America Equity Fund & ING Optimix Global Commodities Fund:

For applications below Rs.1 crore: If investments redeemed on or before 3 years from the date of allotment, 1% will be the exit load while nil for investments redeemed after 3 years from the date of allotment.

For applications equal to or above Rs.1 crore but less than or equal to Rs. 2 crore: For redemption done on or after 6 months from the date of allotment, the fund will levy 1% exit load and no exit load for redemption after 6 months from the date of allotment.

There will be no exit load for applications above Rs. 2 crore.

ING Global Real Estate Fund:

Retail Plan: For applications below Rs.1 crore: If investments redeemed on or before 3 years from the date of allotment, 1% will be the exit load while nil for investments redeemed after 3 years from the date of allotment.

For applications equal to or above Rs.1 crore but less than or equal to Rs. 2 crore: For redemption done on or after 6 months from the date of allotment, the fund will levy 1% exit load and no exit load for redemption after 6 months from the date of allotment.

There will be no exit load for applications above Rs. 2 crore.

Institutional Plan: For applications equal to and above Rs.1 crore, no exit load is applicable.

ING Tax Savings Fund: No exit load will be charged.

Mutual funds in selling mode

Sales worth Rs 292.30 crore on 29 July 2009

Mutual funds (MFs) sold shares worth a net Rs 292.30 crore on Wednesday, 29 July 2009, as against an inflow of Rs 132.60 crore on Tuesday, 28 July 2009.

MFs' net outflow of Rs 292.30 crore on 29 July 2009 was a result of gross purchases Rs 869 crore and gross sales Rs 1161.30 crore. The BSE Sensex lost 158.48 points or 1.03% to 15,173.46 on that day.

MFs bought shares worth a net Rs 1203.70 crore in July 2009 (till 29 July 2009). Mutual funds had bought stocks worth Rs 839.30 crore in June 2009.

Precious metals turn pale

Gold and silver witness substantial drops as crude slips and dollar gains

Falling crude price and strengthening dollar took their toll on precious metals on Tuesday, 28 July, 2009. Crude prices slipped for the first time after four consecutive sessions of rise. On the other hand, weak consumer confidence data strengthened the dollar. These factors reduced the appeal of precious metals as a hedge against inflation.

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, gold for August delivery ended at $939.1, lower by $14.40 (1.5%) an ounce on the New York Mercantile Exchange. Last week, gold ended higher by 1.6%. Year to date, gold prices are higher by 6%.

For the month of June, 2009, gold ended down by 5.4%. Gold had ended the month of May higher by 9.8%. It was the highest monthly gain registered by gold in six months. For the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year.

On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (10%) since then.

On Tuesday, Comex silver futures for September delivery lost 25 cents (1.8%) at $13.74 an ounce. Last week, silver ended higher by 3.5%.

Silver ended 13% down for the month of June, 2009. For the month of May, silver gained 26.6%. It was the biggest monthly gain for silver in more than two decades. For second quarter, silver rose 4.5%. Year to date, silver has climbed 21.7% this year. For 2008, silver had lost 24%.

In the currency market on Tuesday, the dollar index, a six-currency gauge of the greenback's value, rose by more than 0.4%. The dollar strengthened on weak consumer confidence data.

The Conference Board reported on Tuesday, 28 July, 2009 that consumer confidence took its second consecutive monthly drop in July, 2009. The index dropped to 46.6 in July from an unrevised 49.3 in June. In May, the confidence gauge stood at 54.8. The confidence measure was worse than expected. Market was expecting confidence to dip to 48 in July from the June reading.

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

At the MCX, gold prices for August delivery closed lower by Rs 186 (1.2%) at Rs 14,755 per 10 grams. Prices rose to a high of Rs 14,962 per 10 grams and fell to a low of Rs 14,715 per 10 grams during the day's trading.

At the MCX, silver prices for September delivery closed Rs 331 (1.5%) lower at Rs 22,396/Kg. Prices opened at Rs 22,750/kg and fell to a low of Rs 22,258/Kg during the day's trading.

Crude marks first drop in four sessions

Strong dollar pulls down crude

Crude prices ended lower on Tuesday, 28 July, 2009. Prices dropped for the first time in four sessions today. Prices faltered due to the relatively strong dollar.

On Tuesday, crude-oil futures for light sweet crude for September delivery closed at $67.23/barrel (lower by $1.15 or 1.7%). Prices fell to a low of $66.6 earlier during the day. Last week, crude ended higher by 7.1%.

For the month of June, 2009, crude ended higher by 5.5%. In May, crude had registered the largest monthly gain in a decade rising 30%. For the second quarter, crude ended higher by 40%. Crude prices had rallied 11.3% in the first quarter of 2009.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 54.4% since then. In July, 2009, it has dropped by 4.5% till date. Year to date, in 2009, crude prices are higher by 41.8%.

In the currency market on Tuesday, the dollar index, a six-currency gauge of the greenback's value, rose by more than 0.4%. The dollar strengthened on weak consumer confidence data.

The Conference Board reported on Tuesday, 28 July, 2009 that consumer confidence took its second consecutive monthly drop in July, 2009. The index dropped to 46.6 in July from an unrevised 49.3 in June. In May, the confidence gauge stood at 54.8. The confidence measure was worse than expected. Market was expecting confidence to dip to 48 in July from the June reading.

Also at the Nymex on Tuesday, August reformulated gasoline fell 2.41 cents to $1.9106 a gallon and August heating oil dropped 3.19 cents to $1.7647 a gallon.

August natural gas futures declined 6.90 cents to $3.5350 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 August delivery closed lower by Rs 41 (1.24%) at Rs 3,252/barrel. Natural gas for August delivery closed at Rs 177.8/mmbtu, lower by Rs 6.1/mmbtu (3.3%).

FII inflow in July 2009 crosses Rs 9500 crore

Inflow of Rs 738.10 crore on 28 July 2009

Foreign institutional investors (FIIs) bought shares worth a net Rs 738.10 crore on Tuesday, 28 July 2009, much higher than Rs 446.10 crore on Monday, 27 July 2009.

FII inflow of Rs 738.10 crore on 28 July 2009 was a result of gross purchases Rs 4315.60 crore and gross sales Rs 3577.50 crore. The BSE Sensex lost 43.10 points or 0.28% to 15,331.94 on that day.

FII inflow in July 2009 totaled Rs 9,514.50 crore (till 28 July 2009). FIIs had bought stocks worth a net Rs 3,224.90 crore in June 2009. FII inflow in calendar year 2009 totaled Rs 34,058.70 crore (till 28 July 2009).

There are a total of 1678 foreign funds registered with the Securities & Exchange Board of India (Sebi).

News Flash

Tata Steel First-Quarter Profit Falls More Than Forecast on Lower Prices Tata Steel Ltd., India’s biggest producer, reported a worse-than-expected 47 percent drop in first-quarter profit on lower prices. The shares declined.

India Central Bank May `Reverse' Rate Cuts as Food, Energy Stoke Inflation India’s central bank may start reversing its interest-rate cuts in early 2010 as food and energy prices fan inflation, after it kept borrowing costs unchanged yesterday to bolster economic growth.

Benchmark Sensitive Index Declines for Third Day, Led by Tata Motors, DLF Indian stocks fell for a third day, led by Tata Motors Ltd. and DLF Ltd. after investors judged recent gains excessive.

Hero Honda First-Quarter Profit Beats Estimates on India Motorcycle Sales Hero Honda Motors Ltd., India’s biggest motorcycle maker, posted a better-than-estimated 83 percent jump in first-quarter profit after sales climbed.

Rupee Weakens for Second Day as Ambanis' Dispute May Discourage Investors India’s rupee weakened for a second day as declines in the benchmark share index added to concern a corporate dispute between billionaire brothers Anil Ambani and Mukesh Ambani will discourage investors.

Reliance Natural Sends Notices, Seeks Early Final Hearings in Gas Dispute Anil Ambani, chairman of Reliance Natural Resources Ltd., said he will ask India’s Supreme Court to advance final hearings in a natural gas supply dispute with brother Mukesh Ambani’s Reliance Industries Ltd.

Jaguar Land Rover Needs `Major' Cost Reduction as Sales Decline, Tata Says Jaguar Land Rover, the luxury unit Indian truckmaker Tata Motors Ltd. bought from Ford Motor Co. last year, needs “major cost reduction” as the global recession hammers demand for its vehicles.

Sterlite Industries First-Quarter Net Income Declines on Lower Zinc Prices Sterlite Industries (India) Ltd., the nation’s largest copper and zinc producer, reported a 41 percent decline in first-quarter profit after prices fell.

Sensex Stock Index Target Raised by Credit Suisse on Availability of Funds India’s Bombay Stock Exchange Sensitive Index may rise to 17,000 by the middle of 2010, helped by the availability of capital, Credit Suisse Group AG said.

U.S. Durable Goods Orders, Excluding Cars and Planes, Unexpectedly Advance Orders for U.S. durable goods, excluding automobiles and aircraft, unexpectedly gained in June, signaling that manufacturing may expand in the second half of the year.

Google Challenged by Microsoft Accord With Yahoo in Internet Search Battle Microsoft Corp. and Yahoo! Inc. agreed to collaborate on Internet search and online advertising, creating a united front to challenge Google Inc.

China Sparks Drop in Emerging-Market Stocks; Oil, Commodities, Ruble Fall Chinese stocks plunged the most in eight months, dragging emerging markets lower, on speculation the government will curb investment to prevent a bubble. Oil led a drop in commodities.

Bernanke May Have to Sacrifice Lending Powers or Risk Losing Independence The financial-overhaul plan before Congress leaves the Federal Reserve in the business of lending to everyone from General Electric Co. to investors in student loans. That makes it harder for Chairman Ben S. Bernanke to keep Congress from second-guessing what he does.

Merck Is Said to Sell Its Stake in Merial Animal-Health Venture to Sanofi Sanofi-Aventis SA agreed to buy Merck & Co.’s stake in their Merial animal-health venture to help the French drugmaker weather generic competition to its best-selling drugs, said two people familiar with the situation.

Temasek Loses $28 Billion in Asset Value, May Allow First Public Investors Temasek Holdings Pte, reeling from the aborted appointment of Charles “Chip” Goodyear, said the value of its assets slumped by more than S$40 billion ($27.7 billion) and that Singapore’s sovereign fund may allow public investment for the first time.

Copper Peaking as Inventories Signal Market Top With China Demand Slowing Copper’s 80 percent rally this year may soon end on signs that China has stockpiled more than it can use in new homes, cars and appliances.

source: Bloomberg

Bharti AXA MF revises load structure

With effect from 1 August 2009

Bharti AXA Mutual fund has decided to revise the entry and exit load structure of all the schemes of the fund house, with effect from 1 August 2009.

Entry Load: Accordingly, no entry load will be charged for purchase/additional purchase/switch-in accepted by the fund. Similarly, no entry load will be charged with respect to applications for registrations under systematic investment plans/systematic transfer plans accepted by the fund.

The upfront commission on investment made by the investor, if any, shall be paid to the ARN Holder directly by the investor, based on the investor's assessment of various factors including services rendered by the ARN Holder.

Exit Load: The scheme will charge an exit load up to 1% of the redemption value changed to the unit holder by the fund on redemption of units shall be retained by each of the schemes in a separate account and will be utilized for payment of commissions to the ARN holders and meet other marketing and selling expenses.

Any amount in excess of 1% of the redemption value charged to the unit holder as exit load shall be credited to the respective scheme immediately.

Birla Sun Life MF revises load structure

With effect from 1 August 2009

Birla Sun Life Mutual fund has decided to revise the entry and exit load structure of all the schemes of the fund house, with effect from 1 August 2009.

Entry Load: Accordingly, no entry load will be charged for purchase/additional purchase/switch-in accepted by the fund. Similarly, no entry load will be charged with respect to applications for registrations under systematic investment plans/systematic transfer plans accepted by the fund.

The upfront commission on investment made by the investor, if any, shall be paid to the ARN Holder directly by the investor, based on the investor's assessment of various factors including services rendered by the ARN Holder.

Exit Load: The scheme will charge an exit load up to 1% of the redemption value changed to the unit holder by the fund on redemption of units shall be retained by each of the schemes in a separate account and will be utilized for payment of commissions to the ARN holders and meet other marketing and selling expenses.

Any amount in excess of 1% of the redemption value charged to the unit holder as exit load shall be credited to the respective scheme immediately.

Reliance MF revises load structure

With effect from 1 August 2009

Reliance Mutual Fund has decided to revise the entry and exit load structure of all the schemes of the fund house, with effect from 1 August 2009.

Entry Load: Accordingly, no entry load will be charged for purchase/additional purchase/switch-in accepted by the fund. Similarly, no entry load will be charged with respect to applications for registrations under systematic investment plans/systematic transfer plans accepted by the fund.

The upfront commission on investment made by the investor, if any, shall be paid to the ARN Holder directly by the investor, based on the investor's assessment of various factors including services rendered by the ARN Holder.

Exit Load: The scheme will charge an exit load up to 1% of the redemption value charged to the unit holder by the fund on redemption of units shall be retained by each of the schemes in a separate account and will be utilized for payment of commissions to the ARN holders and to meet other marketing and selling expenses.

Any amount in excess of 1% of the redemption value charged to the unit holder as exit load shall be credited to the respective scheme immediately.

ING MF Revises Load Structure

With effect from 1 August 2009

ING Mutual fund has decided to revise the entry and exit load structure of all the schemes of the fund house, with effect from 1 August 2009.

Entry Load: Accordingly, no entry load will be charged for purchase/additional purchase/switch-in accepted by the fund. Similarly, no entry load will be charged with respect to applications for registrations under systematic investment plans/systematic transfer plans accepted by the fund.

The upfront commission on investment made by the investor, if any, shall be paid to the ARN Holder directly by the investor, based on the investor's assessment of various factors including services rendered by the ARN Holder.

Exit Load: The scheme will charge an exit load up to 1% of the redemption value charged to the unit holder by the fund on redemption of units shall be retained by each of the schemes in a separate account and will be utilized for payment of commissions to the ARN holders and to meet other marketing and selling expenses.

Any amount in excess of 1% of the redemption value charged to the unit holder as exit load shall be

Tata MF Revises Load Structure

With effect from 1 August 2009

Tata Mutual Fund has revised the entry and exit load for the existing open ended schemes, with effect from 1 August 2009.

Entry Load: Accordingly, there will be no entry load charged for purchase/additional purchase/switch-in and SIP/STP applications received for registration under the existing open ended schemes.

The upfront commission on investment made by the investor, if any, shall be paid to the ARN Holder directly by the investor, based on the investor's assessment of various factors including services rendered by the ARN Holder.

Exit Load: The scheme will charge an exit load up to 1% of the redemption value charged to the unit holder by the fund on redemption of units shall be retained by each of the schemes in a separate account and will be utilized for payment of commissions to the ARN holders and meet other marketing and selling expenses.

Any amount in excess of 1% of the redemption value charged to the unit holder as exit load shall be credited to the respective scheme immediately.

Mutual funds resume buying

Purchases worth Rs 132.50 crore on 28 July 2009

Mutual funds (MFs) bought shares worth a net Rs 132.50 crore on Tuesday, 28 July 2009, as against an outflow of Rs 176.80 crore on Monday, 27 July 2009.

MFs' net inflow of Rs 132.50 crore on 28 July 2009 was a result of gross purchases Rs 1022.30 crore and gross sales Rs 889.80 crore. The BSE Sensex lost 43.10 points or 0.28% to 15,331.94 on that day.

MFs bought shares worth a net Rs 1496 crore in July 2009 (till 28 July 2009). Mutual funds had bought stocks worth Rs 839.30 crore in June 2009.

Bharti AXA launches home, shop insurance policies

Bharti AXA General Insurance Company Limited launched its Home and Shop Insurance Products on Tuesday.

"Our new home and shop insurance products are affordable as well as offer a host of value-added covers," Bharti AXA GI CEO Dr Amarnath Ananthanarayanan said.

'Smart Plan Householder's Package Policy' and 'Smart Plan Shop Package Policy' are the pre-underwritten products that can be sold at the counter without any hassle of property evaluation and other procedures involved in buying home and shop insurance at a premium rate of Rs 880 (for Rs 2 lakhs) and Rs 910 (for Rs 5 lakhs) respectively.

The SmartPlan Householder's Package policy offers various benefits including comprehensive coverage for all contents, valuables, appliances as well as pedigree pets, personal accident cover for family members and cover for additional rent for alternate accommodation.

The other benefits include liability towards domestic servants, cover for loss of documents like title deeds and passport and flexibility to pick and choose the coverage sections, in case of the underwritten products, he said.

The SmartPlan Shop Package policy offers comprehensive cover for shops with twelve different sections of coverage.

Covers on offer include fire and allied perils, all risks, mechanical/electrical breakdown, burglary, money and personal accident among others, he said.

source: Financial Express

Precious metals end marginally higher

Gold and silver witness little gains after volatile trading

Precious metal prices ended little higher on Monday, 27 July, 2009. It was a day of volatile trading for precious metals as prices swung between gains and losses. The dollar managed to gain back some of its lost ground.

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, gold for August delivery ended at $953.5, higher by $0.40 (0.04%) an ounce on the New York Mercantile Exchange. Last week, gold ended higher by 1.6%. Year to date, gold prices are higher by 7.44%.

For the month of June, 2009, gold ended down by 5.4%. Gold had ended the month of May higher by 9.8%. It was the highest monthly gain registered by gold in six months. For the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year.

On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (10%) since then.

On Monday, Comex silver futures for September delivery rose 11.5 cents (0.9%) at $13.99 an ounce. Last week, silver ended higher by 3.5%.

Silver ended 13% down for the month of June, 2009. For the month of May, silver gained 26.6%. It was the biggest monthly gain for silver in more than two decades. For second quarter, silver rose 4.5%. Year to date, silver has climbed 23.5% this year. For 2008, silver had lost 24%.

In the currency market on Monday, the dollar index, a six-currency gauge of the greenback's value, gained back some of its lost ground and rose mildly higher.

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

At the MCX, gold prices for August delivery closed higher by Rs 41 (0.27%) at Rs 14,941 per 10 grams. Prices rose to a high of Rs 14,972 per 10 grams and fell to a low of Rs 14,897 per 10 grams during the day's trading.

At the MCX, silver prices for September delivery closed Rs 200 (0.88%) higher at Rs 22,727/Kg. Prices opened at Rs 22,550/kg and rose to a high of Rs 22,820/Kg during the day's trading.

Volatile crude ends higher

Strong housing reports boosts crude prices

Crude prices ended little higher on Monday, 27 July, 2009. Prices witnessed volatile trading today but managed to eke out gains finally. Prices were boosted by better than expected housing report.

On Monday, crude-oil futures for light sweet crude for September delivery closed at $68.38/barrel (higher by $0.33 or 0.48%). Trading was quite volatile today. Prices rose to a high of $68.99 and fell to a low of $67.6 during the day. Last week, crude ended higher by 7.1%.

For the month of June, 2009, crude ended higher by 5.5%. In May, crude had registered the largest monthly gain in a decade rising 30%. For the second quarter, crude ended higher by 40%. Crude prices had rallied 11.3% in the first quarter of 2009.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 52% since then. In July, 2009, it has dropped by 2.8% till date. Year to date, in 2009, crude prices are higher by 43.5%.

The Commerce Department reported on Monday, 27 July, 2009 that sales of new homes in the U.S. in June rose by the biggest amount since November 2008, climbing by 11% to a seasonally adjusted annual rate of 384,000. The report was stronger than expected. Market was expecting a modest increase in new-home sales to 355,000. The report detailed that sales rose by a revised 2.4% in May, thus marking the third consecutive month of gains. Sales rose 1.8% in April, but fell 6.2% in March. Over the past year, sales are down 21.3%.

Also at the Nymex on Monday, August reformulated gasoline gained 1.88 cents to $1.9347 a gallon and August heating oil rose 1.53 cents to $1.7966 a gallon.

August natural-gas futures fell 9.10 cents to $3.604 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 August delivery closed higher by Rs 6 (0.18%) at Rs 3,293/barrel. Natural gas for August delivery closed at Rs 183.9/mmbtu, lower by Rs 2.3/mmbtu (1.23%).

FIIs continue buying

Inflow of Rs 446.20 crore on 27 July 2009

Foreign institutional investors (FIIs) bought shares worth a net Rs 446.20 crore on Monday, 27 July 2009, much lower than Rs 1050.60 crore on Friday, 24 July 2009.

FII inflow of Rs 446.20 crore on 27 July 2009 was a result of gross purchases Rs 3032.30 crore and gross sales Rs 2586.10 crore. The BSE Sensex lost 3.92 points or 0.03% to 15,375.04 on that day.

FII inflow in July 2009 totaled Rs 8776.40 crore (till 27 July 2009). FIIs had bought stocks worth a net Rs 3,224.90 crore in June 2009. FII inflow in calendar year 2009 totaled Rs 33,320.60 crore (till 27 July 2009).

There are a total of 1678 foreign funds registered with the Securities & Exchange Board of India (Sebi).

RBI to maintain accommodative monetary stance

RBI indicated M3 money supply may grow 18% and bank credit to rise by 20% in 2009-10 in its policy review today.

The central bank announced its policy review today, 28 July 2009. Reserve Bank of India (RBI) said it will maintain accommodative monetary stance until robust signs of recovery is visible. RBI indicated M3 money supply may grow 18% and bank credit to rise by 20% in 2009-10. RBI said government will need to return to a path of fiscal consolidation. It said commercial banks have scope to cut lending and deposit rates further. RBI will actively manage liquidity to avoid government borrowing crowding out private credit demand.

This accommodative monetary stance is, however, not the steady state stance, RBI said. On the way forward, the Reserve Bank will have to reverse the expansionary measures to anchor inflation expectations and subdue inflationary pressures while preserving the growth momentum. The exit strategy will be modulated in accordance with the evolving macroeconomic developments, it said.

The central bank in its policy review today, 28 July 2009 projected gross domestic product (GDP) growth at 6% in 2009-10 with upward bias. Reserve Bank of India (RBI) expects wholesale price inflation of about 5% by end March 2010. The central bank also kept rates on hold at its policy review today, 28 July 2009.

RBI projects GDP growth at 6% in FY 2010 with upward bias

RBI expects wholesale price inflation of about 5% by end March 2010.

The central bank in its policy review today, 28 July 2009 projected gross domestic product (GDP) growth at 6% in 2009-10 with upward bias. The Reserve Bank of India (RBI) expects wholesale price inflation of about 5% by end March 2010, higher than its earlier expectation of 4%.

The central bank kept key policy rates unchanged at its policy review today, 28 July 2009.

RBI leaves key policy rates, CRR unchanged

The central bank kept rates on hold at its policy review today, 28 July 2009.

The central bank at its policy review today, 28 July 2009 kept key policy rates unchanged. It also kept bank's cash reserve ratio (CRR) unchanged.

Reserve Bank of India (RBI) had cut the repo rate, or its key short-term lending rate, by 425 basis points to 4.75% in six steps since October 2008 as it tried to guard a slowing economy against the global financial crisis.

The central bank also slashed the reverse-repo rate by 275 basis points since early December 2008 and brought down the cash reserve requirement (the proportion of deposits that banks set aside), by 400 basis points to 5% since early October 2008 to keep credit flowing.

News Flash

Central Bank Leaves India's Interest Rates Unchanged on Inflation Concerns India’s central bank kept borrowing costs unchanged, signaling an end to its deepest round of interest-rate cuts on concern that inflation will “creep up” from October.

Anil Ambani Calls India's Oil Ministry Biased in Row With Brother Mukesh Anil Ambani, chairman of Reliance Natural Resources Ltd., accused India’s petroleum ministry of siding with his brother Mukesh Ambani’s Reliance Industries Ltd. in a row over gas, saying it was “partisan and biased.”

Adani Power IPO Oversubscribed on Bids from Credit Suisse, T. Rowe, CLSA Indian billionaire Gautam Adani’s power company said investors including Credit Suisse and T. Rowe Price International Inc. demanded more than three times as many shares as offered in its initial sale to fund new generators.

Sensitive Index Declines After Indian Central Bank Leaves Rates Unchanged India’s stocks fell for a second day. ICICI Bank Ltd. led lenders lower after the central bank kept interest rates unchanged at a meeting today, while Tata Motors Ltd. surged after earnings beat analysts’ estimates.

Rupee Weakens as India's Importers Increase Dollar Purchases After Rally India’s rupee weakened for the first time in four days on speculation the nation’s importers increased purchases of foreign currency to settle month-end payments.

Indian Government to Sell Small Stakes in State-Run Units, Mukherjee Says The Indian government plans to sell small stakes in state-run companies while retaining majority control, Finance Minister Pranab Mukherjee said.

Ten-Year Bonds Advance as Reserve Bank of India Pledges to Keep Ample Cash India’s 10-year bonds rose after the central bank pledged to maintain ample cash in the banking system to boost growth, easing concern that it would start withdrawing its accommodative monetary policy.

Sugar May Reach 28-Year High on Global Deficit, India's Biggest Mill Says Raw sugar prices may reach a 28-year high in the next six months as a production shortfall in India, the world’s biggest user, worsens a global deficit for a second year, the nation’s largest producer said.

Stocks in India May Drop by Maximum 5% After Gains, Sahara's Sridhar Says Indian stocks may face a “small correction” of not more than 5 percent following their gains this year, according to A.N. Sridhar, a fund manager at Sahara Asset Management Co. in Mumbai.

Home-Price Declines in 20 U.S. Cities Moderate, Case-Shiller Index Shows Home prices in 20 U.S. metropolitan areas climbed in May from the previous month for the first time in three years, another sign the market is stabilizing.

U.S. Stock Futures Decline on Office Depot, Coach Profit; Citigroup Drops U.S. stock futures dropped after a two-week rally pushed the Standard & Poor’s 500 Index to its most expensive level relative to earnings since September and companies from Office Depot Inc. to Coach Inc. posted worse- than-estimated results.

AIG Unit Keeps $2.4 Billion From Asset Sales as Taxpayers Wait for Payment American International Group Inc., the insurer dismantling itself to repay U.S. loans, used $2.4 billion from asset sales to shore up a property-casualty unit instead of paying down its government credit line.

Viacom Profit Drops 32% on Falling Advertising Sales, Box-Office Revenue Viacom Inc., owner of MTV Networks and the Paramount Pictures film studio, said second-quarter profit fell 32 percent because of an advertising slump and declining movie revenue.

Currency-Trading Volumes May Take Years to Recover as Risk Appetite Slumps Currency-trading volumes may take years to recover after a plunge in risk appetite sparked by the global financial crisis drove away hedge funds and speculators, according to foreign-exchange analysts.

source: Bloomberg