Indian equity markets were unable to sustain the previous week bull run
rally leading Sensex and Nifty to decline 1.45% and 1.50% respectively
over week ended 30 July 2010. Markets plummet as RBI increased interest
rates to control inflation. It happened to be the derivatives expiry
week and mixed corporate results had lead to the fall of equity markets
during the week.
RBI had hikes repo rate by 25 bps to 5.75% and reverse repo rate by 50
bps to 4.50%, on 27 July 2010 to rein in demand pressures and moderate
inflation. Moreover it revised the projection of real GDP growth for
2010-11 to 8.5%, up from 8.0% with an upside bias in the April 2010
policy statement taking into account better industry, services growth
and reflects progress of monsoon so far. Also it raised the projection
for WPI inflation for March 2011 to 6.0% from 5.5% in the April policy
statement.
Growth in India's key infrastructure industries decelerated to an
11-month low of 3.4% in June, mainly on account of near flat coal
output.
The fall in the market was felt in the equity schemes as well, as most
of the equity fund categories ended as losers. In the major equity fund
categories Index Funds declined the most by 1.40%, Equity Diversified
Funds declined 0.60% and Tax Savings Funds slipped 0.55% during the one
week period 30 July 2010.
FMCG Funds gained 1.09% and Banking Funds surged 0.89% in the sector
funds. On the other hand Infotech Funds and Pharma Funds fell 0.66% and
1.63% respectively.
Among the sub categories in debt fund, Floating Rate Income Funds –
Short Term, Liquid Funds, Ultra Short Term Funds gained 0.10% each,
Floating Rate Income Funds – Long Term climbed 0.07%. While Short Term
Income Funds declined 0.01%, Income Funds fell 0.09%, Gilt – Short Term
slipped 0.24% and Gilt – Medium & Long Term declined 0.28%. In the
ETF category, Other ETF's fell 0.56%, while Gold ETF's declined 2.83%.
Equity Diversified Funds
NAV of the Equity Diversified Funds category declined 0.60% in the week
ended 30 July 2010. Among the schemes in the equity diversified
category, IDFC Premier Equity Fund – Plan A gained the maximum of 1.70%,
followed by SBI Magnum SFU – Emerging Business Fund which climbed
1.66%, Taurus Discovery Fund rose 1.45%, DWS Alpha Equity Fund jumped
1.34% among others. JM Basic Fund and Tata Life Science & Technology
Fund were the worst performers in this category declining 2.92% and
2.61% respectively.
Tax Savings Funds
Tax savings Funds category declined 0.55% over one week period as on 30
July 2010 which is lower than the previous week gain of 0.70%. Taurus
Tax Shield and DWS Tax Savings Fund were the top performers with a
return of 1.34% and 1.28% respectively during one week period. Among the
other schemes in the category, Axis Tax Saver Fund rose 0.09%, Birla
Sun Life Tax Plan climbed 0.08% and JPMorgan India Tax Advantage Fund
surged 0.03%. HSBC Tax Saver Equity Fund and JM Tax Gain Fund ended at
the bottom of the table losing 1.42% and 1.31% respectively.
Index Funds
The Index Fund category declined 1.40% over one week period ended 30
July 2010. All the schemes in this category ended the week as losers.
LICMF Index Fund – Sensex Advantage Plan and Taurus Nifty Index Fund
were the biggest losers in this category. Their NAV fell 1.58% and 1.55%
respectively over one week time period. ICICI Pru Nifty Junior Index
Fund and Benchmark S&P CNX 500 Fund had minimum loss in this
category, declining 0.16% and 1.05% respectively.
Sector Funds
Pharma Funds category declined 1.63%, with SBI Magnum SFU – Pharma Fund
ending the week as the top loser with a erosion in NAV by 2.47%, it was
followed by UTI-Pharma & Healthcare Fund which declined 1.51%.
Banking Funds category gained 0.89%, with Reliance Banking Fund gaining
1.53% and Sundaram BNP Paribas Financial Services Opportunities gaining
1.24%. Sahara Banking & Financial Services Fund ended at the bottom
of the category declining 0.49%.
FMCG Funds category gained 1.09% over one week period ended 30 July
2010. All the schemes in this category were able to deliver gains. SBI
Magnum SFU – FMCG Fund was the top performer in this category. It's NAV
appreciated by 1.60% over one week period.
Infotech Funds category declined 0.66% over one week period ended 30
July 2010. Birla Sun Life New Millennium Fund ended as the biggest loser
declining 1.26%.
Hybrid Funds
Among the sub categories in the hybrid funds, Arbitrage Funds surged
0.16%. Monthly Income Plans declined 0.18%, Debt Oriented Balanced Funds
slipped 0.33%, Equity Oriented Balanced Fund dropped 0.45% and Asset
Allocation Balanced Fund declined 0.83%.
HDFC Prudence Fund and Birla Sun Life '95 Fund were the highest gainer
in equity oriented balanced fund category as their NAV appreciated by
0.48% and 0.29% respectively. LICMF Balanced Fund was the worst
performer in this category declining by 1.30%.
Escorts Income Bond was the highest gainer in debt oriented balanced
fund category as its NAV appreciated by 0.61%. SBI Magnum Children
Benefit Plan was the next highest gainer by 0.38%. LICMF Children's Fund
was the worst performer in this category declining 1.10% respectively.
Debt Funds
Among the Debt funds, Sundaram BNP Paribas Bond Saver - Appreciation
gained 0.64%, Baroda Pioneer Gilt Fund added 0.31%, Baroda Pioneer
Income Fund rose 0.28% and ICICI Pru Long Term Floating Rate Plan B,
ICICI Pru Long Term Floating Rate Plan C & Birla Sun Life Short Term
Opportunities climbed 0.14% each. Escorts Gilt Fund was the worst
performer in this category declining 1.07%.
