The aftermath of the festive season proved costly for investors as
global cues, weak domestic industrial growth numbers for September and
mixed earnings reports trashed the indices this week. Pullout by foreign
institutional investors also weighed on the markets. The IIP growth for
the month of September 2010 was at 4.4% (yoy), was quite below the
market expectation of 6.4%. The main reason for the slowdown in the
growth in industrial production is fall in capital goods index.
Sentiments were dampened further by fears that China would increase
interest rates to further cool inflation, sparkling a rally in the
dollar.
The fall in equity markets had lead to the fall in NAV of all major
equity fund categories while pharma funds gained 1.12%. In the major
equity fund category, NAV of Index Funds declined the most by 3.37%, Tax
Savings Funds by 2.61% and Equity Diversified Funds by 2.42% during the
one week period ended 12 November 2010. Among the sub categories in
debt fund, Ultra Short Term Funds surged up 0.14%, Floating Rate Income
Funds – Short Term and Liquid Funds surged up 0.13% each. In the ETF
category, Gold ETFs gained 2.57% while Other ETFs declined 3.89%.
Among the sub categories in the hybrid funds, NAV of Debt Oriented
Balanced Fund surged by 1.35%, followed by Arbitrage Funds (0.15%).
While Equity Oriented Balanced Fund and Monthly Income Plans declined
1.73% and 0.38% respectively.
Sector Funds
Pharma Fund was the lone gainer among the sectoral fund categories. NAV
of Pharma Funds category advanced 1.12%, with UTI Pharma &
Healthcare Fund ending the week as the biggest gainer with an increase
in NAV by 1.92%; it was followed by SBI Magnum SFU – Pharma Fund which
gained 1.41%.
Debt Funds
Among the Debt funds, Canara Robeco InDiGo Fund gained 0.68%, HSBC Ultra
Short Term Bond Fund added 0.18%, L&T Gilt Investment Plan and
Escorts Floating Rate Fund surged 0.17% each. On the flipside Axis
Income Saver and SBI Magnum Gilt Fun – Long Term ended at the bottom of
the category declining 0.75% and 0.44% respectively.
Equity Diversified Funds
Among the schemes in the equity diversified category, Tata Life Science
& Technology Fund, SBI Magnum SFU – Emerging Businesses Fund, Tata
Growing Economies Infrastructure – Plan A, Reliance Long Term Equity
Fund were the gainers while the rest ended as losers. Their NAV advanced
by 0.67%, 0.51%, 0.27% and 0.13% respectively over one week time
period. Bharti AXA Focused Infrastructure Fund and SBI PSU Fund ended at
the bottom this category declining 4.07% and 4.01% respectively.
Tax Savings Funds
Escorts Tax Plan and ICICI Pru Tax Plan were able to limit their loss to
0.56% and 1.72% respectively over one week time period. On the other
hand Baroda Pioneer ELSS '96 and Bharti AXA Tax Advantage Fund were the
worst hit in the tax savings fund category declining 3.86% and 3.51%
respectively.
Index Funds
The NAV of Index Fund category declined by 3.37% over one week period
with Reliance Index Fund – Sensex, LICMF Index Fund – Sensex Plan being
the top losers in this category. Their returns declined 3.65% and 3.57%
respectively over one week time period.
Hybrid Funds
Escorts Income Bond was the highest gainer in debt oriented balanced
fund category as its NAV appreciated by 29.62%. DWS Money Plus Advantage
Fund was the next highest gainer by 0.59%. Templeton India Pension Plan
and Tata Young Citizens Fund were the worst performers in this category
with a decline in NAV by 1.23% and 1.19% respectively.
HDFC Arbitrage Fund and Reliance Arbitrage Advantage Fund were the
highest gainers in arbitrage fund category as their NAV appreciated by
0.23% and 0.21% respectively.
