The weak global sentiments had pushed down the Indian equities during
the week ended 27 August 2010. The fall was broad based and all
sectoral indices, except consumer durables, closed the week on a
negative note. Real estate stocks were the top losers. Sensex and Nifty
were down 2.19% and 2.21% respectively at the end of the week.
Yield on the 10 year benchmark bond increased 12 bps while those on the 5
year paper were up 5 bps. Yields on the 5 year corporate bonds were up
4bps and consequently spreads over gilts were largely unchanged 83 bps.
Yields on the 1 year paper rose 8 bps.
“Indian bond prices closed the week down as ongoing inflationary and
supply concerns weighed on sentiment; Systemic liquidity improved and
call rates fell below 5% levels; While maintaining that the domestic
growth outlook remains robust, RBI mentioned that given the increased
linkages with global economy, shielding domestic markets from impact of
global developments poses certain challenges for policy management.”
said Franklin Templeton Mutual Fund
In the major equity fund category, NAV of Index Funds declined 2.15%,
Tax Savings Funds by 1.61% and Equity Diversified Funds by 1.57% during
the one week period 27 August 2010.
Banking Funds slipped 2.72%, Infotech Funds lost 1.78%, Pharma Funds
declined 1.36% and FMCG Funds dropped 0.72% in the sector funds.
Despite all the equity fund category witnessing fall, debt fund
categories ended up as gainers. Among the sub categories in debt fund,
Gilt – Medium & Long Term and Gilt – Short Term gained 0.17% each,
followed by Income Funds (0.14%), Floating Rate Income Funds – Long
Term (0.11%), Short Term Income Funds (0.10%), Floating Rate Income
Funds – Short Term (0.10%), Liquid Funds (0.09%) and Ultra Short Term
Funds (0.09%). In the ETF category, Other ETF's declined 1.93% while
Gold ETF's gained 0.79%.
Among the sub categories in the hybrid funds, NAV of Equity Arbitrage
Funds surged 0.15%. On the other hand Equity Oriented Balanced Fund
declined 1.10%, Debt Oriented Balanced Fund lost 0.38% and Monthly
Income Plans slipped 0.17%.
Equity Diversified Funds
NAV of Equity Diversified Funds category declined 1.57% in the week
ended 27 August 2010. Most of the schemes ended up as losers during the
week end period. Among the schemes in the equity diversified category,
JM Mid Cap Fund gained the maximum of 0.82%, followed by SBI PSU Fund
which climbed 0.67%. JM HI FI Fund and Reliance Infrastructure Fund were
the worst performers in this category declining 5.33% and 3.15%
respectively.
Tax Savings Funds
Tax savings Funds category declined 1.61% in the week ended 27 August
2010. All the schemes in this category ended up as losers. Bharti AXA
Tax Advantage Fund and Bharti AXA Tax Advantage Fund - Eco were the
highest losers in this category as they had declined by 3.04% and 3.03%
respectively. Quantum Tax Savings Fund and HDFC Tax Saver Fund were able
to limit their loss to 0.20% and 0.63% respectively.
Index Funds
The Index Fund category declined 2.15%which is however worst than the
previous week gain of 1.48%. All the schemes in this category ended the
week as losers. Principal Index Fund and Canara Robeco Nifty Index were
the biggest losers in this category. Their returns declined by 2.26%
each over one week time period. Benchmark S&P CNX 500 Fund and HDFC
Index Fund-Sensex Plus Plan were able to limit their loss to 1.72% and
1.76% respectively.
Sector Funds
NAV of Pharma Funds category declined 1.36%, with Reliance Pharma Fund
ending the week as the biggest loser with a fall in NAV by 2.01%; it was
followed by UTI Pharma & Healthcare Fund which lost 1.83%.
Banking Funds category declined 2.72%, with Religare Banking Fund and JM
Financial Services Sector Fund declining heavily by 3.04% and 3.02%
respectively.
FMCG Funds category declined 0.72% over one week period ended 27 August
2010. ICICI Pru FMCG Fund was the highest loser in this category. It's
NAV declined by 1.05% over one week period.
Infotech Funds category declined 1.78% over one week period ended 27
August 2010. ICICI Pru Technology Fund was the highest loser which
declined by 1.78%.
Hybrid Funds
Benchmark Equity & Derivatives Opportunities was the only gainer in
equity oriented balanced fund category as its NAV appreciated by 0.19%.
Escorts Balanced Fund was the worst performers in this category
declining by 2.20%.
Canara Robeco InDiGo Fund was the highest gainer in debt oriented
balanced fund category as its NAV appreciated by 0.33%. Sahara Classic
Fund was the next highest gainer by 0.10%. LICMF Children's Fund and UTI
Retirement Benefit Pension Plan were the worst performers in this
category with a fall in return by 2.51% and 0.72% respectively.
Debt Funds
Among the pure Debt funds, IDFC G Sec Fund - Investment Plan - A gained
0.59%, IDFC Dynamic Bond Fund - A added 0.57%, ICICI Pru Gilt Fund -
Invest – PF Option rose 0.52% and IDFC G Sec Fund – PF climbed 0.50%.
Axis Income Saver and DWS Gilt Fund were the worst performers in this
category declining 0.22% and 0.07%% respectively.
