Sebi replaces colour codes for mutual fund with 'riskometer'

To help investors better understand risks involved in mutual fund investments, regulator Sebi today replaced the mandatory color codes with a 'riskometer' containing five levels of risks from low to high.

The mutual funds would need to mention the risk level of a scheme through speedometer-like mechanism, while specifying whether the investment was of low or high risk in nature. The five risk levels would be low, moderately low, moderate, moderately high and high.

The new system would replace the existing practice of color-coding the schemes wherein the funds needed to be given blue, yellow and brown codes to indicate low, medium and high risk respectively.

The guidelines would be effective from July 1, 2015, for all existing and forthcoming schemes, the Securities and Exchange Board of India (Sebi) said in a circular. The level of risk in mutual fund schemes has been increased to five categories from the current three.

"The depiction of risk using color codes would be replaced by pictorial meter named riskometer" and this meter would appropriately depict the level of risk in any specific scheme," it added.

It further said that all funds may 'product label' their schemes on the basis of the best practice guidelines issued by industry body Association of Mutual Funds in India (AMFI) in this regard.

In 2013, Sebi had issued a framework on 'product labelling' with color coding for mutual funds, in a move to help investors assess the risk associated with the schemes.

As per the norms, product labels carrying details about the schemes have to be disclosed on the front page of initial offering application forms.

SEBI will not intervene in service tax issue: U K Sinha

SEBI Chairman U K Sinha clarified that the market regulator will not discuss service tax issue with the Ministry of Finance. 

Putting to rest all speculation, SEBI Chairman U K Sinha categorically ruled out the possibility of any assistance from the market regulator on service tax issue. Sinha clarified that the market regulator will not discuss service tax issue with the Ministry of Finance. He said this on the sidelines of an ‘Investment Outlook 2015’ event held in Mumbai.

“SEBI will not intervene in the service the tax issue. We are not going to discuss tax related issues with the government,” Sinha said in an interview with Cafemutual.

 

Last week, the AMFI board had decided to take up the service tax issue with SEBI and the Ministry of Finance. “We have decided to make a representation to SEBI and the Ministry of Finance. A working group committee appointed by AMFI is working on it,” H N Sinor, CEO, AMFI had earlier told Cafemutual.

Earlier in March, some top mutual fund officials are said to have met SEBI to discuss this issue. 

Ever since Budget 2015 proposed to withdraw the service tax exemption given to mutual fund distributors and brought it under reverse charge mechanism, there has been resistance from distributors. 

A notification dated February 28, posted on Central Board of Excise and Customs (CBSE) site states “Accordingly, service tax in respect of mutual fund agent and mutual fund distributor services shall be paid by the asset management company or, as the case may be, by the mutual fund receiving such services.” 

This has come into effect from April 01, 2015. 

No TDS on post office recurring deposits

Jayant Sinha, Minister of State for Finance has clarified that there will be no TDS on interest earned through post office recurring deposits. 

Jayant Sinha, Minister of State for Finance has clarified that there will be no TDS on interest earned through recurring deposits or RDs of post offices. 

Earlier, Union Budget 2015 had proposed to put RDs under the ambit of TDS. A TDS of 10% has been proposed to be deducted from interest earned of over Rs.10,000 through RDs. However, in order to promote small savings, the government has kept post office RDs away from the ambit of TDS.

In response to the question asked in Lok Sabha, Jayant Sinha, Minister of State in Ministry of Finance said, “The Government proposes to promote the recurring deposits scheme. It  takes  various measures  on  continuous  basis  to  promote  and  popularize  all  small  savings  scheme including post office  recurring  deposit  scheme through  electronic  and  print  media  as  well  as  holding seminars,  meetings  and  providing  training  to  the  various  agencies  involved  in  mobilizing deposits  under  these  schemes.”

Meanwhile, bank RDs will attract TDS on interest earned of over Rs.10,000. 

Selling from FPIs continues

Net outflow of Rs 752.86 crore on 29 April 2015 

Foreign portfolio investors (FPIs) offloaded shares worth a net Rs 752.86 crore yesterday, 29 April 2015, compared with their outflow of Rs 1519.35 crore during the preceding trading session on 28 April 2015. 

The net outflow of Rs 752.86 crore on 29 April 2015 was a result of gross purchases of Rs 4458.70 crore and gross sales of Rs 5211.56 crore. There was a net outflow of Rs 692.26 crore from the secondary equity market on 29 April 2015, which was a result of gross purchases of Rs 4457.70 crore and gross sales of Rs 5149.96 crore. The S&P BSE Sensex had declined 170.45 points or 0.62% to settle 27,225.93 on that day, its lowest closing level since 27 April 2015. 

There was a net outflow of Rs 60.60 crore from the category 'primary market & others' on 29 April 2015, which was a result of gross purchases of Rs 1 crore and gross sales of Rs 61.60 crore. 

FPIs have bought shares worth a net Rs 11720.93 crore in this month so far (till 29 April 2015). They have bought shares worth a net Rs 11365.79 crore from the secondary equity markets in this month so far (till 29 April 2015). FPIs had bought shares worth a net Rs 12078.12 crore last month. They had bought shares worth a net Rs 10155.09 crore from the secondary markets last month. 

FPIs have bought shares worth a net Rs 48193.70 crore in calendar year 2015 so far (till 29 April 2015). They have bought shares worth a net Rs 40129.60 crore from the secondary equity markets in calendar year 2015 so far (till 29 April 2015). FPIs had bought shares worth a net Rs 97055.90 crore in the calendar year 2014. They had bought shares worth a net Rs 84440.80 crore from the secondary equity markets in calendar year 2014. 

Rupee slips

At 63.5050/5350 per dollar 

Rupee closed lower on Thursday (30 April 2015) at 63.5050/5350 per dollar, versus its previous close of 63.2950/3050 per dollar.

Asia Pacific Market: Stocks drop on US growth concerns

Asia Pacific share market declined on Thursday, 30 April 2015, on profit booking amid a mixed bag of corporate earnings and renewed concerns over the state of the U.S. economy after disappointing Q1 GDP. The MSCI Asia Pacific Index fell 1.6 percent to 153.93. 

The regional equity market started the day's session on the back foot, after both Wall Street and European bourses suffered heavy losses overnight on weaker than forecast US gross domestic product data, which showed the US economy grew just 0.2% in the first quarter, pushing back expectations of the first US Federal Reserve rate hike to at least September. 

Fed kept policies unchanged as widely expected. Notably, in the statement, the reference that 'an increase in the target federal funds rate remains unlikely' disappeared without being replaced by other languages. This change signalled that a rate hike in June cannot be ruled out. The Fed acknowledged the softness of recent economic data and attributed it to 'transitory factors'. Yet, the central bank appeared confident that consumer spending would rebound in the coming months as 'households' real incomes raised strongly, partly reflecting earlier declines in energy prices, and consumer sentiment remains high'. 

The US Q1 GDP grew a mere 0.2%, much worse than expectation of 1% and prior quarter's 2.2%. Personal consumption slowed sharply to 1.9%, down from prior 4.4%. Price index dropped -0.1% versus prior 0.1%. A run of disappointing data confirmed that Fed won't hike interest rate from the current zero level in June. More importantly, it's raising some doubts whether the first hike would happen in September as some analysts now anticipate. 

The disappointing news on the world's biggest economy comes on top of a worrying slowdown in China and persistent fears about Europe as Greece scrambles to avoid bankruptcy. 

Among Asian bourses
 
Nikkei tanks 2.7% on weak global cues
 
Japanese share market ended steep lower, as investors elected to book profit after the benchmark indices hit 15 years high yesterday. Meanwhile, sentiment was bruised by negative lead from offshore markets, the Bank of Japan decision to left policy unchanged and as lacklustre U.S. growth reading clouded the likely timing of a Federal Reserve rate increase. The benchmark Nikkei 225 index retreated 538.94 points, or 2.69%, to finish at 19520.01. The broader Topix index of all first-section shares ended down 34.64 points, or 2.13%, up at 1592.79. The Japanese share market was closed on Wednesday for the Showa Day holiday. 

Honda Motor Co declined 6.7% to 4041.50 yen after posting 43% drop in net profit to 97.80 billion yen for the fiscal fourth quarter ended March 2015. Quarterly sales rose 8% to 3.35 trillion yen. It reported profit of 523 billion yen for the fiscal year just ended, down 8.9 percent from the previous fiscal year. The automaker expects a profit of 525 billion yen for the fiscal year through March 2016. 

Panasonic Corp advanced 0.5% to 1724 yen after Japanese electronics giant reported a 49% jump in net profit to 179.49 billion yen, although revenue edged down 0.3% to 7.7 trillion yen. For the current fiscal year, which started this month, Panasonic expects a 180 billion yen net profit on revenue of 8 trillion yen. 

Nippon Steel & Sumitomo Metal Corp declined 1.5% to 313 yen after steelmaker said its net profit fell almost 12% to 214.3 billion yen in its fiscal year to March, despite sales rose 1.7% to 5.6 trillion yen. The steelmaker also forecasted weak market conditions for the year ahead. 

Oriental Land declined 5.2% to 8108 yen on reports that the operator of the Tokyo DisneySea and Tokyo Disneyland resorts planned to invest some $4.2 billion in the parks over the coming decade. 

Japan's industrial output fell slightly 0.3% in March, registering second straight month of decline, according to the data from the Ministry of Economy, Trade and Industry (METI) released on Thursday. The data from METI also showed that output in the January-March quarter rose 1.7% from the previous three-month period, accelerating from the 0.8% quarterly gain in the previous three-month period. 

The Bank of Japan left its policy unchanged on Thursday, sticking to the view that Japan is still on track to achieve 2% inflation despite stagnating price growth and lingering speculation that further action is needed. The central bank decided to keep its annual asset purchases at 80 trillion yen ($672.2 billion), ignoring a call from an influential lawmaker urging the bank to increase its purchases to 90 trillion yen. 

Bank, miner drags Australia market down for third day
 
The Australian share market ended down for third consecutive session, on risk aversion selloff across the sectors, with the banks and miners being major losers amid a souring global mood and further fall in iron ore futures prices. The benchmark S&P/ASX 200 Index declined 48.60 points, or 0.83%, to 5790, while the broader All Ordinaries Index slipped 44.50 points, or 0.76%, to 5773.70. Market turnover was relatively strong, with 1.88 billion shares changing hands worth of A$3.4 billion. 

Financial stocks were down, with top four lenders being major losers, on tracking weak global peers and uncertainty over interest rate cuts from the Reserve Bank of Australia. Commonwealth Bank dropped 1.9% to A$88.87, National Australia Bank 1.8% to A$36.77, Westpac Banking Corp 2.5% to A$36.46, and ANZ Banking Group 2.2% to A$33.99. 

Shares of mining companies declined after further fall in iron ore futures, with resources giant BHP Billiton down 0.2% to A$31.97, while Rio Tinto fell 1% to A$57.15. Iron ore miner Fortescue Metals Group tanked 4.4% to A$2.17 and BC Iron slipped 4.4% to A$0.43. 

Consumer staples players were the best performing corner of the market, led by a 1.7% gain in Wesfarmers to A$43.71. Woolworths added 0.9% to A$29.48. Qantas Airways added 4.6% to A$3.39 after the airline reported another month of higher fares. 

Santos rallied 0.2% to A$8.30 after the Australian Financial Review reported that private-equity players are understood to have approached the board with a view to picking off some individual assets. 

Shares of Insurance Australia Group closed up 2.8% to A$5.81, rebounding from losses after it warned of heavy costs from recent storms in Australia. 

China market dives 0.8%
 
Mainland China equity market ended lower, on profit booking after steep runs this month and on caution ahead of manufacturing and other major data, with shares of energy, material and financial companies being major losers. The Shanghai Composite Index fell 34.96 point, or 0.78%, to 4441.66 points. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, dropped 24.44 points, or 0.51%, to 4749.89. 

Total of six out of ten SSE industry groups declined, with energy issue leading the decline, with loss of 2.8%, followed by materials down 1.9%, telecommunication services down 1.9%, financials down 1.3%, consumer sta0ples down 0.5%, and consumer discretionary down 0.5%. Bucking the trend, utilities issue rose 2.8%, meanwhile information technology added 1.8% and industrials jumped 0.7%. 

The best performers of the session on the Shanghai Composite were Jonjee Tech, which rose 10% to trade at CNY21.73 at the close. Meanwhile, Tyan Home added 10% to CNY21.62, Minfeng Paper was up 10% to CNY12.30, Huayin Elec rose 10% to CNY8.24, and Yunnan Yunwei jumped 10% to CNY10.77. 

The worst performers on the Shanghai Composite were Sh Duolun, which fell 7.8% to CNY11.65 at the close. Jinling declined 7.3% to CNY17.20, Sinopec Shanghai Petrochemical Co was down 6.2% to CNY9.80, Yuguang fell 6.1% to CNY18.72, and Lianyungang dropped 5.8% to CNY13.76. 

Shares of energy and material companies suffered heavy losses today, Aluminum Corp. of China dropped 5%, while China Oilfield Services retreated 2.9% after reporting a 31% drop in first-quarter net income. 

Shares of property developers raised the most in Shanghai after the National Development and Reform Commission said China's real estate sector is showing positive signs after the government took measures to stabilize the market. Poly Real Estate Group Co. surged 6.9%, while Gemdale Corp. added 3.8%. 

Hang Seng falls 0.94%
 
The Hong Kong stock market ended down, on tracking downbeat cues from offshore market overnight and decline in other regional bourses today, with banks, energy and mining stocks leading losses. The Hang Seng Index ended down 267.34 points or 0.94% to 28133, off an intra-day high of 28317.87 and day low of 27997.90. Turnover increased to HK$170.86 billion from HK$163 billion on Wednesday. 

Banks and financials declined after several lenders released their financial results late Wednesday, showing bad-loan ratios rose in the first quarter while net profit increased only slightly. Industrial & Commercial Bank of China dropped 1.9% to 6.74 and China Construction Bank Corp fell 1.8% to HK$7.55, after posting increases in non-performing loans and net profit growth of less than 2% each. Bank of China slipped 3.6% to HK$5.33 after its net income rose just 1.1% in the first quarter from a year earlier, while its earnings per share dropped by 3.3%. Among other banks, Agricultural Bank of China declined 0.9% to HK$4.38, China Merchants Bank Co fell 1.9% to HK$23.45, and China Minsheng Banking Corp fell 1.7% to HK$11.38. Hong Kong-based banks also recorded losses across the board, with Hang Seng Bank fell 0.5%, Bank of East Asia down 0.7%, Standard Chartered down 0.7%, and HSBC Holdings down 0.7%. 

Shares of Chinese developers rose across the board as the NDRC sees recovery in property market. CR Land (01109) shot up 7.4% to HK$28.25. COLI (00688) jumped 4.7% to HK$32.45. Evergrande (03333) soared 19% to HK$7.35. Country Garden (02007) also rebounded 7% to HK$4.2. New World Dev (00017) put on 2.2% to HK$10.3 after the company said it has agreed to establish a new joint venture company with Abu Dhabi Investment Authority. 

Sensex closes lower in volatile trade
 
Indian benchmark indices edged lower after the US Federal Reserve left open the chance of an interest-rate hike as early as June in a statement following a two-day monetary policy meeting. Benchmark indices languished in negative zone almost throughout the trading session. The barometer index, the S&P BSE Sensex, provisionally settled above the psychological 27,000 level. The index alternately moved above and below that level in intraday trade. The Sensex was provisionally off 147.28 points or 0.54% to 27,078.65. India's stock market remains closed tomorrow, 1 May 2015, on account of Maharashtra Day. 

Meanwhile, Finance Minister Arun Jaitley reportedly said in Lok Sabha during discussion on Finance Bill 2015 today, 30 April 2015, that some changes will be made to tax proposal announced in the Union Budget 2015-16. Meanwhile, the government today, 30 April 2015, reportedly withdrew proposals to set up an independent public debt management agency and strip the central bank of authority to regulate government bonds. 

Shares of public sector oil marketing companies (PSU OMCs) edged higher. Bosch advanced after the National Stock Exchange (NSE) after trading hours yesterday, 29 April 2015, announced inclusion of the company in place of IDFC in the 50-unit CNX Nifty with effect from 29 May 2015. Shares of IDFC edged higher in volatile trade. 

Foreign portfolio investors sold shares worth a net Rs 718.31 crore yesterday, 29 April 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 912.46 crore yesterday, 29 April 2015, as per provisional data released by the stock exchanges. 

Elsewhere in the Asia Pacific region: South Korea KOSPI fell 0.72% to 2127.17. Taiwan's Taiex index lost 0.34% to 9820.05. New Zealand's NZX50 rose 0.9% to 5791.34. Singapore's Straits Times index fell 0.41% at 3472.84. Indonesia's Jakarta Composite index fell 0.2% to 5095.56. Malaysia's KLCI was down 1.2% to 1820.45. 

Peerless Mutual Fund Announces Change In Fund Managers Under Its Schemes

With effect from 30 April 2015 

Peerless Mutual Fund has announced the following change in the fund managers of the schemes, with effect from 30 April 2015. 

Accordingly, Peerless Liquid Fund, Peerless Ultra Short Term Fund, Peerless Short Term Fund & Peerless Flexible Income Fund will be managed by Vikram Pamnani and Peerless Income Plus Fund & Peerless MF Child Plan will be jointly managed by Vikram Pamnani & Amit Nigam. 

Tata Fixed Maturity Plan Series 47 Scheme M Announces Extension of Maturity

The scheme shall mature on 23 May 2017 

 Tata Mutual Fund has announced extension of maturity of Tata Fixed Maturity Plan Series 47 Scheme M, a close ended debt fund. 

Tata Fixed Maturity Plan Series 47 Scheme M was launched on 12 May 2014. The units under the scheme were allotted on 21 May 2014 and the scheme is scheduled to mature on 25 May 2015. The trustees have decided to extend the maturity of the scheme by 729 days. 

The scheme shall now mature on 23 May 2017. 

HDFC MF Announces Rollover Under Its Schemes

The schemes shall mature on 01 June 2017

HDFC Mutual Fund has announced rollover / extension of maturity under HDFC FMP 504D December 2013 (1), HDFC FMP 472D January 2014 (1), HDFC FMP 435D March 2014 (1) and HDFC FMP 491D January 2014 (1), which are due for maturity on 14 May 2015. 

The features of the proposed rollover are as follows: 

Date of rollover: 15 May 2015 

Period of rollover: 749 days 

Extended maturity date: 01 June 2017

DWS Inflation Indexed Bond Fund Announces Change In Exit Load Structure

With effect from 29 April 2015 

Deutsche Mutual Fund has announced change in the exit load structure under DWS Inflation Indexed Bond Fund, with effect from 29 April 2015. 

Accordingly, if redeemed / exited within 1 year of allotment, the exit load will be 1.5% and Nil, if redeemed / exited subsequent to 1 year of allotment of units.

Deutsche Mutual Fund Announces Change In Fund Managers Under Its Schemes

With effect from 05 May 2015

Deutsche Mutual Fund has announced the following change in the fund managers of the schemes, with effect from 05 May 2015. 

Accordingly, DWS Cash Opportunities Fund will be jointly managed by Kumaresh Ramakrishnan and Chandan Gehlot and DWS Medium Term Income Fund & DWS Treasury Fund – Investment Plan will be managed by Nitish Gupta. 

Birla Sun Life MF Announces Change In Exit Load Structure Under Its Schemes

With effect from 05 May 2015 

Birla Sun Life Mutual Fund has announced change in the exit load structure under the following schemes, with effect from 05 May 2015. Accordingly, the revised exit load will be: 

Birla Sun Life Short Term Opportunities Fund: 

For redemptions / switch out of units within 365 days from the date of allotment: 1.00% of applicable NAV. 

For redemptions / switch out of units after 365 days from the date of allotment: Nil. 

Birla Sun Life Treasury Optimizer Plan, Birla Sun Life Short Term Fund & Birla Sun Life Index Fund: Nil. 

UTI MF Announces Rollover Under Its Schemes

UTI Mutual Fund has announced rollover / extension of maturity under the following schemes. 

The features of the proposed rollover are as follows: 

UTI Fixed Term Income Fund – Series XVIII – X (366 Days): 

Existing maturity date: 06 May 2015.
Period of rollover: 740 days.
Total tenure: 1106 days.
Date of maturity for rollover: 15 May 2017.
Revised scheme name: UTI Fixed Term Income Fund – Series XVIII – X (1106 Days). 

UTI Fixed Term Income Fund – Series XVII – IX (466 Days): 

Existing maturity date: 11 May 2015.
Period of rollover: 735 days.
Total tenure: 1201 days.
Date of maturity for rollover: 15 May 2017.
Revised scheme name: UTI Fixed Term Income Fund – Series XVII – IX (1201 Days). 

UTI Fixed Term Income Fund – Series XVIII – XII (366 Days): 

Existing maturity date: 20 May 2015.
Period of rollover: 734 days.
Total tenure: 1100 days.
Date of maturity for rollover: 23 May 2017.
Revised scheme name: UTI Fixed Term Income Fund – Series XVIII – XII (1100 Days). 

UTI Fixed Term Income Fund – Series XVIII – XIII (366 Days): 

Existing maturity date: 28 May 2015.
Period of rollover: 734 days.
Total tenure: 1100 days.
Date of maturity for rollover: 31 May 2017.
Revised scheme name: UTI Fixed Term Income Fund – Series XVIII – XIII (1100 Days).

ICICI Prudential Fixed Maturity Plan – Series 77 – 1480 Days Plan B Floats On

NFO period is from 29 April to 07 May 2015

ICICI Prudential Mutual Fund has launched a new fund named as ICICI Prudential Fixed Maturity Plan – Series 77 – 1480 Days Plan B, a close ended debt scheme. The tenure of the scheme is 1480 days from the date of allotment. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue opens for subscription from 29 April to 07 May 2015. 

The investment objective of the scheme is to seek to generate income by investing in a portfolio of fixed income securities/debt instruments maturing on or before the maturity of the scheme. 

Presently, two options are available under the scheme viz. cumulative and dividend with only dividend payout option. 

The scheme will invest 80%-100% of its assets in debt instruments including government securities and invest upto 20% of assets in money market instruments with low to medium risk profile. The scheme will not have any exposure to derivatives and if a scheme decides to invest in securitized debt (Single loan and / or Pool loan Securitized debt), it could be upto 25% of the corpus of the Plan. 

The minimum application amount is Rs 5000 and in multiples of Rs 10 thereafter. 

The fund seeks to collect a minimum subscription amount of Rs 20 crore under the scheme during the NFO period. 

The scheme is proposed to be listed on NSE. 
 
Entry load and exit load charge are not applicable for the scheme. 

Benchmark Index for the scheme is CRISIL Composite Bond Fund Index. 
 
The fund managers of the scheme are Rahul Goswami and Rohan Maru. 

Quantum MF Launches Quantum Dynamic Bond Fund

NFO period is from 29 April to 13 May 2015 

Quantum Mutual Fund has launched a new fund named as Quantum Dynamic Bond Fund, an open ended debt scheme with defined credit exposure and dynamic maturity profile. The tenure of the scheme is 1480 days from the date of allotment. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue opens for subscription from 29 April to 13 May 2015. 

The investment objective of the scheme is to generate income and capital appreciation through active management of a portfolio consisting of short term and long term debt and money market instruments. 

The scheme offers growth option, monthly dividend payout option and monthly dividend re-investment option. 

The scheme will invest 25%-100% of its assets in government bond/bills with low to high risk profile, invest upto 50% in PSU bonds with medium to high risk profile, upto 75% in certificate of deposits / commercial paper / short term debt instruments with low to medium risk profile and invest upto 100% in CBLO / Repos with low risk profile. 

The minimum application amount is Rs 500 and in multiples of Re 1 thereafter. 

The fund seeks to collect a minimum subscription amount of Rs 20 crore under the scheme during the NFO period. 

Entry load: Not applicable. 
 
Exit load: Nil. 

Benchmark Index for the scheme is CRISIL Composite Bond Fund Index. 

Murthy Nagarajan is the fund manager of the scheme. 

Mutual funds' equity purchases surpass Rs 7000 crore in April so far

Massive net purchases of Rs 1555.70 crore on 28 April 2015

Mutual funds bought shares worth a net Rs 1555.70 crore yesterday, 28 April 2015, which was higher than their purchases of Rs 1231.50 crore during the preceding trading session on 27 April 2015. 

The net inflow of Rs 1555.70 crore on 28 April 2015 was a result of gross purchases of Rs 2378.10 crore and gross sales of Rs 822.40 crore. The S&P BSE Sensex had jumped 219.39 points or 0.81% to settle at 27,396.38 on that day, its highest closing level since 24 April 2015. 

Mutual funds have purchased shares worth a net Rs 7004.80 crore in this month so far (till 28 April 2015). They had bought shares worth a net Rs 3940.30 crore last month. 

Peerless MF Announces Dividend Under Two Schemes

Record date for dividend is 04 May 2015 

Peerless Mutual Fund has announced 04 May 2015 as the record date for declaration of dividend on the face value of Rs 10 per unit under the quarterly dividend option of following schemes. The amount of dividend (Re per unit) will be: 

Peerless Short Term Fund - Direct Plan- 0.22 & Regular Plan: 0.21 

Peerless Income Plus Fund - Direct Plan- 0.26 & Regular Plan: 0.25

With Economy on an Upturn, India Needs to Unlock Investments to Accelerate Growth: World Bank

A World Bank study shows creating productive assets can help make MGNREGS cost effective 

The Indian economy has turned the corner, says the latest India Development Update of the World Bank. Aided by a supportive external environment, in particular the sharp decline in oil and commodity prices, the Indian economy has taken strong strides towards higher growth and enhanced stability. Growth has accelerated, inflation has declined, the current account deficit has narrowed, and external reserves have increased. 

According to the Update, a twice yearly report on the Indian economy and its prospects, India's economic growth is expected to rise to 7.5% in 2015-2016, followed by further acceleration to 7.9% in 2016-2017 and 8.0% in 2017-2018. However, acceleration in growth is conditional on the growth rate of investment picking up to 11% during FY2016-FY2018, it adds.   

To achieve higher investment growth, the Update calls for fiscal reforms that protect public capital spending; financial sector reforms; and reforms in the business environment - all of which can help unlock private investments. Specifically the Update calls for the timely implementation of the Goods and Services Tax (GST); rationalizing current expenditures, especially on subsidies; delivering on divestment plans, ensuring greater tax buoyancy than has been realized lately; encouraging PPP projects; addressing balance sheet issues of Public Sector Banks.

"The government has made progress in several policy areas and long-term prospects for growth remain bright for India," said Onno Ruhl, World Bank Country Director in India. "The current situation offers an opportunity to further strengthen the business environment and enhance the quality of public spending. Continuous strong momentum in these reforms will further unleash the productivity that Indian firms need in order to create jobs and become globally competitive."

Domestic and External Risks to Outlook

Oil and Commodity prices

The recent economic turnaround and the outlook also rest crucially on oil and commodity prices remaining low. Reiterating the need for the government to further insulate the economy from the global price of oil, the Update suggests weaning the fiscal outcomes more fully from oil prices; by encouraging alternative sources of energy; creating additional fiscal buffers by using petroleum taxation more actively, as well as rationalizing subsidies.

"India needs to explore alternative channels for long-term investment while reviving the PPP model of financing to meet India's yawning infrastructure gap. Simultaneous efforts to increase the tax-to-GDP ratios, through the timely implementation of the GST, as well as complimentary measures to improve tax administration and compliance can generate additional fiscal space in the years ahead," said Poonam Gupta, Senior Economist, World Bank.

Potential tightening of US monetary policy

The Update sounds a word of caution on the risks from potential tightening of the US monetary policy. India being one of the larger financial markets, and a large recipient of capital flows, could be adversely affected by a rebalancing triggered by the tightening of the Fed's monetary policy. "While the Reserve Bank of India has taken preventive measures to reduce external vulnerability, and has built international buffers as a "first line of defense", the risk remains, warranting vigilance," Gupta added. 
 
Findings from a study of the MGNREGS

The current Update also specifically analyzes the performance of India's Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and draws on lessons from Bihar and other states to suggest a way forward.

Highlighting the findings, the Update says while the scheme has the potential to drastically cut poverty, analysis of household survey data from Bihar shows the program's actual impact on rural poverty in Bihar is only about 1 percentage point against its potential of reducing poverty by at least 14 percentage points.

The study highlights a number of reasons why the potential impact of MGNREGS may not be realized in practice: the supply side is too slow to respond to the demand for work on the scheme; workers are not paid the full scheme wage; delays in wage payment; and awareness of how to demand work is limited.
 
Paradoxically, the scheme has worked less well in poorer states, where it is needed the most. For example, in Bihar, more than two-thirds - about 10 percentage points - of the gap between the potential and actual impact of the scheme is due to unmet demand.   Whereas in Andhra Pradesh the scheme is shown to have delivered significant positive impacts on a range of outcomes - from consumption and nutrition, to quality assets and productivity improvements, particularly for the poorest.

The study shows that asset creation is key to the effectiveness of MGNREGS. The MGNREGS has an in-built self-targeting mechanism and most studies show that despite substantial unmet demand, participation in the scheme favors people from poorer families. However, unless assets created under MGNREGS are of sufficient value to the poor, it is unlikely to be cost-effective relative to an income transfer scheme, even with better targeting, the study says.
 
"With over 50 million beneficiary households at its peak, and expenditures between 0.5 and 1% of GDP, the MGNREGS is amongst the largest anti-poverty programs in the world. While the scheme has the potential to drastically reduce poverty, its performance in practice has been mixed," said Ruhl. "To tilt the balance in favor of workfare, assets created need to be of sufficient value to the poor which can in turn serve as a vital ingredient for inclusive and expanded growth."
 
Discrepancies in the stipulated wage rates and actual wages received by workers is contributing to the gap between potential and realized impacts. In Bihar, on an average, wages received on the scheme were about 10% lower than the stipulated wage rate. More recently, payment delays have emerged as a major bottleneck and are a strong disincentive to participating in the program. 

"If MGNREGS were to be implemented effectively, its design would ensure that there is no unmet demand for work. On-going efforts at convergence of the scheme with other programs will ensure that the assets created are productive and of lasting value," said Rinku Murgai, Lead Economist and one of the authors of the MGNREGS study.

CCEA approves two-year extension of BSUP and IHSDP under JNNURM

Extension in time is expected to benefit more than three lakh urban poor in getting their pucca houses 

The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi, today gave its approval for extension of time by two years that is beyond 31.03.2015 up to 31.03.2017 for completion of projects sanctioned till March, 2012 under the Sub-Mission on Basic Services to the Urban Poor (BSUP) and Integrated Housing and Slum Development Programme (IHSDP). These are components of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). 

This extension in time period is expected to benefit more than three lakh urban poor in getting their pucca houses. An amount of Rs 350 crore would be required to be released to various States by the Central Government after adjustment of excess release of funds. The extension of time would help in completing the 3.6 lakh dwelling units, which are at various stages of completion, resulting in benefits made available to the urban poor including slum-dwellers.

The JNNURM comprises four components of which two namely the Sub-Mission for Urban Infrastructure and Governance (UIG) and the Sub-Mission for Basic Services to the Urban Poor (BSUP) are being implemented in 65 cities.

Initially duration of the Mission was seven years beginning from 2005-06 till 2011-12. Due to various factors such as non-availability of litigation-free land, finalization of beneficiaries, delay in financial closure and cost escalation some projects were delayed with consequent time and cost overruns. The Mission was extended earlier upto 31.03.2015 for completion of projects that had been approved till 31.03.2012.

FPIs press heavy sales of equities for the second day in a row

Net outflow of Rs 1519.35 crore on 28 April 2015 

Foreign portfolio investors (FPIs) pressed heavy selling of Indian stocks for the second day in a row yesterday, 28 April 2015, according to data released by the depositories. FPIs offloaded shares worth a net Rs 1519.35 crore yesterday, 28 April 2015, compared with their outflow of Rs 1600.54 crore during the preceding trading session on 27 April 2015. 

The net outflow of Rs 1519.35 crore on 28 April 2015 was a result of gross purchases of Rs 4622.42 crore and gross sales of Rs 6141.77 crore. There was a net outflow of Rs 1525.15 crore from the secondary equity market on 28 April 2015, which was a result of gross purchases of Rs 4592.11 crore and gross sales of Rs 6117.26 crore. The S&P BSE Sensex had jumped 219.39 points or 0.81% to settle at 27,396.38 on that day, its highest closing level since 24 April 2015. 

There was a net inflow of Rs 5.80 crore into the category 'primary market & others' on 28 April 2015, which was a result of gross purchases of Rs 30.31 crore and gross sales of Rs 24.51 crore. 

FPIs have bought shares worth a net Rs 12473.79 crore in this month so far (till 28 April 2015). They have bought shares worth a net Rs 12058.05 crore from the secondary equity markets in this month so far (till 28 April 2015). FPIs had bought shares worth a net Rs 12078.12 crore last month. They had bought shares worth a net Rs 10155.09 crore from the secondary markets last month. 

FPIs have bought shares worth a net Rs 48946.60 crore in calendar year 2015 so far (till 28 April 2015). They have bought shares worth a net Rs 40821.90 crore from the secondary equity markets in calendar year 2015 so far (till 28 April 2015). FPIs had bought shares worth a net Rs 97055.90 crore in the calendar year 2014. They had bought shares worth a net Rs 84440.80 crore from the secondary equity markets in calendar year 2014. 

Rupee slides

At 63.2950/3050 per dollar 

Rupee closed lower on Wednesday (29 April 2015) at 63.2950/3050 per dollar, versus its previous close of 63.1450/1550 per dollar.

Asia Pacific Market: Stocks fall ahead of fed meeting outcome

Asia Pacific share market ended down on Wednesday, as investors opted for a risk aversion mode on caution ahead of the outcome of April's Federal Reserve's policy meeting later today. 

The Federal Market Open Committee (FMOC) meeting, which began on Tuesday, will conclude with the release of a post-meeting statement later in the day. Fed is widely expected to keep policies unchanged after slew of weaker than expected economic data released recently. Investors will be looking for any hints on when it will raise interest rates but expectations now are that they'll stay at record lows until at least September. 

Among Asian bourses 
 
Australia market dives 1.9% 
 
The Australian share market declined for second consecutive session, on profit booking across the sectors amid growing doubts over the RBA's interest rate cut next week and as Goldman Sachs warning that the country at risk of losing AAA ratings. All ASX sectors dived into red terrain, with healthcare, banks & financials, property trusts, and materials and resources stocks being major losers. The benchmark S&P/ASX 200 Index declined 109.90 points, or 1.85%, to 5838.60, while the broader All Ordinaries Index retreated 103.30 points, or 1.74%, to 5818.20. Market turnover was relatively strong, with 1.83 billion shares changing hands worth of A$5.93 billion. 

US investment bank Goldman Sachs has warned that Australia is at risk of losing its coveted AAA credit rating from credit ratings agency Standard & Poor's due to Australia's "poor fiscal performance". Even a "negative outlook" – a first step to a downgrade – will have consequences, said Goldman Sachs. 

Investors were speculating that the recent run of stronger-than-expected domestic economic data and the recovery in the price of iron ore amid a broad rally in commodities could stay the RBA board's hand next Tuesday. 

Shares of healthcare sector suffered heavy losses for second day in row in Sydney market, hurt by jump in the Australian dollar, with global blood plasma products maker CSL leading downfall, with loss of 2.9% to A$91, while medical device maker ResMed dropped 1.4% to A$8.02 and hearing aid maker Cochlear sank by 1.9% to A$83.39. Sonic healthcare declined 2.6% to A$20.01and Ansell tanked 4.9% to A$26.10. 

Financial stocks were down, with top four lenders being major losers, amid fading chances of rate cuts from the Reserve Bank of Australia. Commonwealth Bank dropped 2.2% to A$90.57, National Australia Bank 2.4% to A$37.46, Westpac Banking Corp 2.6% to A$37.40, and ANZ Banking Group 1.9% to A$34.75. 

Shares of mining and energy companies also lower, with resources giant BHP Billiton down 1.2% to A$32.04, while Rio Tinto fell 1.8% to A$57.71. Iron ore miner Fortescue Metals Group tanked 7.4% to A$2.27. . Australia's biggest oil producer Woodside Petroleum declined 1.1% to A$35.19 and Santos fell 0.2% to A$8.28. Oil Search declined 2.2% to A$8.07 and origin Energy shed 2.4% to A$12.76. 

China market closes flat
 
Mainland China equity market ended virtually flat after recouping early losses, as investors reacted to news that commercial banks may be allowed to use local government debt as collateral for liquidity via the People's Bank of China's Pledged Supplementary Lending (PSL) scheme. The Shanghai Composite Index edged up 0.41 point, or 0.01%, to 4476.62 points. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, added 32.47 points, or 0.68%, to 4774.33. 

Local media reported on Tuesday that China's central bank is planning to launch a credit-easing program to help restructure trillions of dollars of local-government debt. Chinese banks would be able to swap local government bailout bonds for loans from the central bank under the plan. 

Total of six out of ten SSE industry groups advanced, with information technology issue leading the advance, with gain of 4.7%, followed by consumer discretionary up 2.7%, consumer staples up 2.1%, materials up 2%, telecommunication services up 1.9%, and healthcare up 1.7%. On the downside, industrial and utilities issues each declined by 0.3%, while energy and financial both lost by 0.2%. 

Shares of Agricultural Bank of China declined 2.2% to CNY4.02 after China's third-largest listed lender said yesterday that net profit rose 1.3% in the first quarter of 2015, missing analyst estimates. Agricultural Bank of China net profit rose 1.3% to CNY54116 million for the first quarter of 2015. Operating income amounted to CNY140643 million, an increase of 2.9% from a year earlier. Net interest income amounted to CNY109442 million, representing an increase of 6.11%. 

Industrial & Commercial Bank of China (ICBC) declined 2% to CNY5.53. The lender reported that its net profit rose 1.39% to CNY74324 million for the first quarter of 2015. Operating income was CNY165,808 million, an increase of 5.7% from a year earlier. Net interest income was CNY125283 million, an increase of 8.17% compared with the same period of last year. 

China Life declined 2.4% to CNY38.65. The insurer reported that its net profit rose 69.8% year-on-year to CNY12271 million for the three months ended 31 March 2015. Operating income amounted to CNY192620 million, an increase of 24.9% from a year earlier. 

Premiums earned was CNY150310 million, an increase of 16.5%. Investment income grew 58.8% to CNY38386 million. 

Hang Seng ends 0.15% lower
 
The Hong Kong stock market ended down in lackluster trade, on tracking downbeat cues from regional bourses and on caution ahead of the Federal Open Market Committee policy meeting statement later today. The Hang Seng Index ended down 42.41 points or 0.15% to 28400.34, off an intra-day high of 28453.10 and day low of 28201.76. Turnover decreased to HK$163 billion from HK$170.61 billion on Tuesday. 

Shares of HSBC (00005) gained 1.4% to HK$77.45 ahead of its earnings report tomorrow. A Swiss newspaper reported that the bank would cut 260 posts in its global private banking division in Geneva. StanChart (02888) dipped 1% to HK$128.9 after it reported 1Q pre-tax profit slid 22%. 

Property developers ended higher. Henderson Land (00012) put on 1% to HK$61.25 as statistics from the HKEx show its Chairman last week increased his stake in the company by 270,000 shares. New World Dev (00017) gained 2.5% to HK$10.08. SHKP (00016) edged up 0.7% to HK$128.3. Hang Lung PPT (00101) jumped 8% to HK$26.2 as the company is holding shareholders meeting today. 

Shares of consumer sector inclined after China State Council announced that China would reduce import tariffs on consumer products. Sa Sa (00178) and Bonjour (00653) fell 4.3% and 6.7% to HK$3.96 and HK$0.7. Chow Tai Fook (01929) slipped 2% to HK$9.65. 

Sensex dives 0.6%
 
Indian stock market ended lower, a day ahead of the April derivatives contract expiry amid a holiday truncated week. The 30-share S&P BSE Sensex provisionally closed 0.62%, or 170.45 points, lower at 27,225.93, while the CNX Nifty shed 0.55%, or 45.85 points, to 8,239.75. 

Cement stocks were mostly higher. Ambuja Cements shrugged off weak Q1 March 2015 earnings. Shree Cement dropped after the company reported weak Q3 March 2015 earnings. 

Indian stocks may remain volatile in the near future as traders roll over positions in the futures & options segment from the near month April 2015 series to May 2015 series. The near month April 2015 F&O contracts expire tomorrow, 30 April 2015. 

Foreign portfolio investors sold Indian shares worth a net Rs 1532.84 crore yesterday, 28 April 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1537.08 crore yesterday, 28 April 2015, as per provisional data released by the stock exchanges. 

Elsewhere in the Asia Pacific region: South Korea KOSPI fell 0.23% to 2142.63. Taiwan's Taiex index lost 1.03% to 9853.83. New Zealand's NZX50 sank 0.5% to 5740.82. Singapore's Straits Times index fell 0.23% at 3487.15. Indonesia's Jakarta Composite index retreated 2.61% to 5105.56. Malaysia's KLCI was down 0.65% to 1842.93. 

JPMorgan India Tax Advantage Fund Discontinues fresh subscription under Dividend Reinvestment Option

With effect from 30 April 2015 

JPMorgan Mutual Fund has approved discontinuation of the dividend reinvestment option under the divided option in JPMorgan India Tax Advantage Fund, with effect from 30 April 2015. 

Consequently, no fresh subscription will be accepted under the reinvestment option of the scheme. After discontinuation of dividend reinvestment facility, Dividend Transfer Plan (DTP) is a new sub-option being introduced under the dividend option. 

HDFC MF Announces Rollover Under Its Schemes

HDFC Mutual Fund has announced rollover under the following schemes. 

The features of the proposed rollover are as follows: 

HDFC FMP 367D May 2014 (2):
Date of Rollover: 15 May 2015.
Period of rollover: 768 days.
Date of Maturity for rollover: 20 June 2017. 

HDFC FMP 370D May 2014 (1):
Date of Rollover: 14 May 2015.
Period of rollover: 769 days.
Date of Maturity for rollover: 20 June 2017. 

HDFC FMP 572D October 2013 (1):
Date of Rollover: 13 May 2015.
Period of rollover: 751 days.
Date of Maturity for rollover: 01 June 2017.

Axis MF Announces Rollover Under Axis Fixed Term Plan – Series 42 & Series 43

The schemes shall mature on 27 April 2017 

Axis Mutual Fund has announced rollover under Axis Fixed Term Plan – Series 42 and Axis Fixed Term Plan – Series 43, which are due for maturity on 04 May 2015. 

The features of the proposed rollover as follows: 

Period of rollover: 724 days. 

Date of Maturity for rollover: 27 April 2017. 

Principal MF Announces Change n Key Personnel

Principal Mutual Fund has announced that Ritesh Jain, Chief Financial Officer has resigned from the services of Principal Pnb Asset Management Company, with effect from 01 April 2015.

IIFL Mutual Fund Announces Appointment of Amey Mashilkar As Fund Manager – Fixed Income

With effect from 27 April 2015

IIFL Mutual Fund has announced that Amey Mashilkar has been appointed as the Fund Manager – Fixed Income of India Infoline Asset Management Company, with effect from 27 April 2017. 

Amey Mashilkar will be managing IIFL Dynamic Bond Fund, IIFL Liquid Fund and IIFL Fixed Maturity Plan Series – 6. He is aged 27 years and holds MBA (IIM Bangalore) as his educational qualification. 

Mashilkar has been appointed in place of Gautam Adukia (Fund Manager – Debt) who has resigned from the services of IIFL AMC. 

Further, Mohan has been appointed as an Associated Director of the AMC, with effect from 17 April 2015. 

Venkataraman, pursuant to his resignation ceases to be the director of Trustee Company.

HDFC Fixed Maturity Plan 1106D May 2015 (1) Floats On

NFO period is from 05 May to 12 May 2015 

HDFC Mutual Fund has launched a new plan named as HDFC Fixed Maturity Plan 1106D May 2015 (1), a plan under HDFC Fixed Maturity Plans – Series 33 (a close-ended income scheme). The face value of the new issue will be Rs 10 per unit. The new issue will be open for subscription from 05 May to 12 May 2015. 

The investment objective of the plan is to generate regular income through investments in debt / money market instruments and government securities maturing on or before the maturity date of the plan. 

The plan shall offer three options – growth, dividend and flexi option. The plan would invest 80%-100% of assets in debt instruments & government securities with medium risk profile and invest upto 20% of assets in money market instruments with low risk profile. 

The minimum application amount is Rs 5000 and in multiples of Rs 10 thereafter. 

The fund seeks to collect a minimum subscription (minimum target) amount of Rs 20 crore under the scheme during the NFO period. 

Entry and exit load charge will be nil for the plan. 

Benchmark Index for the plan is CRISIL Composite Bond Fund Index. 

The fund managers of the scheme are Shobhit Mehrotra & Rakesh Vyas (Dedicated fund manager for overseas investments). 

LIC Nomura MF FMP Series 64 (729 Days) Announces Extension of Maturity

The scheme shall mature on 16 May 2016 

LIC Nomura Mutual Fund has announced the extension of maturity under LIC Nomura MF FMP Series 64 (729 Days) which is due for maturity on 13 May 2015. Accordingly, the revised maturity date will be 16 May 2016.

SBI MF Announces Rollover Under Its Schemes

SBI Mutual Fund has announced rollover under the following schemes: 

The features of the proposed rollover are as follows: 

SBI Debt Fund Series A - 2:
Period of rollover: 700 days.
Date of Maturity for rollover: 04 April 2017. 

SBI Debt Fund Series – 17 Months -1:
Period of rollover: 600 days.
Date of Maturity for rollover: 28 December 2016. 

SBI Debt Fund Series A - 22:
Period of rollover: 735 days.
Date of Maturity for rollover: 12 May 2017. 

SBI Debt Fund Series 16 Months - 2:
Period of rollover: 700 days.
Date of Maturity for rollover: 10 April 2017. 

SBI Debt Fund Series A - 24:
Period of rollover: 735 days.
Date of Maturity for rollover: 17 May 2017. 

SBI Debt Fund Series 18 Months - 13:
Period of rollover: 555 days.
Date of Maturity for rollover: 24 November 2016. 

SBI Debt Fund Series A - 25:
Period of rollover: 735 days.
Date of Maturity for rollover: 24 May 2017. 

SBI Debt Fund Series A – 27 (366 Days):
Period of rollover: 735 days.
Date of Maturity for rollover: 01 June 2017. 

ICICI Prudential Capital Protection Oriented Fund VIII – 1103 Days Plan C Floats On

NFO period is from 28 April to 11 May 2015 

ICICI Prudential Mutual Fund has launched a new fund named as ICICI Prudential Capital Protection Oriented Fund VIII – 1103 Days Plan C, a close ended capital protection oriented scheme. The tenure of the scheme is 1300 days. The new fund offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 28 April and will close on 11 May 2015. 

The investment objective of the scheme is to seek to protect capital by investing a portion of the portfolio in highest rated debt securities and money market instruments and also provide capital appreciation by investing the balance in equity and equity related securities. The securities would mature on or before the maturity of the plan under the scheme. 

The scheme offers regular plan – cumulative option, direct plan – dividend option, regular plan – cumulative option and regular plan – dividend option. 

The scheme would allocate 70%-100% of assets in debt securities & money market instruments with low to medium risk profile and invest upto 30% of assets in equity and equity related securities with medium to high risk profile. 

The minimum application amount is Rs 5000 and in multiples of Rs 10 thereafter. 

The fund seeks to collect a minimum subscription (minimum target) amount of Rs 20 crore under the scheme during the NFO period. 

The scheme is proposed to be listed on NSE. 

Entry and exit load charge will be not applicable. 
 
Benchmark Index for the scheme is CRISIL MIP Blended Index. 

The fund managers of the scheme are Vinay Sharma (equity portion), Chandni Gupta & Rahul Goswami (debt portion) and Shalya Shah (For investments in ADR / GDR and other foreign securities). 

ICICI Prudential Fixed Maturity Plan – Series 77 – 1132 Days Plan A Floats On

NFO period is from 28 April to 05 May 2015

ICICI Prudential Mutual Fund has launched a new fund named as ICICI Prudential Fixed Maturity Plan – Series 77 – 1132 Days Plan A, a close ended debt scheme. The tenure of the scheme is 1135 days from the date of allotment. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue opens for subscription from 28 April to 05 May 2015. 

The investment objective of the scheme is to seek to generate income by investing in a portfolio of fixed income securities/debt instruments maturing on or before the maturity of the scheme. 

Presently, two options are available under the scheme viz. cumulative and dividend with only dividend payout option. 

The scheme will invest 80%-100% of its assets in debt instruments including government securities and invest upto 20% of assets in money market instruments with low to medium risk profile. The scheme will not have any exposure to derivatives and if a scheme decides to invest in securitized debt (Single loan and / or Pool loan Securitized debt), it could be upto 25% of the corpus of the Plan. 

The minimum application amount is Rs 5000 and in multiples of Rs 10 thereafter. 

The fund seeks to collect a minimum subscription amount of Rs 20 crore under the scheme during the NFO period. 

The scheme is proposed to be listed on NSE. 

Entry load and exit load charge are not applicable for the scheme. 

Benchmark Index for the scheme is CRISIL Composite Bond Fund Index. 

The fund managers of the scheme are Rahul Goswami and Rohan Maru. 

IDFC Fixed Term Plan – Series 48 Announces Rollover

The scheme shall mature on 28 December 2016

IDFC Mutual Fund has announced rollover of IDFC Fixed Term Plan – Series 48, a close ended income scheme which is due for maturity on 07 May 2015. 

The features of the proposed rollover are as follows: 

Period of rollover: 601 days. 

Date of Maturity for rollover: 28 December 2016. 

Asset allocation post rollover: 

The scheme would invest upto 30% of assets in debt & money market instruments with low to medium risk profile and invest 70%-100% of assets in debt securities with medium to high risk profile. 

Minimum Corpus: 10 crore. 

FPIs press sales

Net outflow of Rs 1600.54 crore on 27 April 2015 

Foreign portfolio investors (FPIs) offloaded shares worth a net Rs 1600.54 crore during the previous trading session on Monday, 27 April 2015, which was sharply higher than their outflow of Rs 722.32 crore during the preceding trading session on Friday, 24 April 2015. 

The net outflow of Rs 1600.54 crore on 27 April 2015 was a result of gross purchases of Rs 5056.68 crore and gross sales of Rs 6657.22 crore. There was a net outflow of Rs 1662.52 crore from the secondary equity market on 27 April 2015, which was a result of gross purchases of Rs 4991.42 crore and gross sales of Rs 6653.94 crore. The S&P BSE Sensex dropped 260.95 points or 0.95% to settle at 27,176.99, its lowest closing level since 7 January 2015. 

There was a net inflow of Rs 61.98 crore into the category 'primary market & others' on 27 April 2015, which was a result of gross purchases of Rs 65.26 crore and gross sales of Rs 3.28 crore. 

FPIs have bought shares worth a net Rs 13993.14 crore in this month so far (till 27 April 2015). They have bought shares worth a net Rs 13583.20 crore from the secondary equity markets in this month so far (till 27 April 2015). FPIs had bought shares worth a net Rs 12078.12 crore last month. They had bought shares worth a net Rs 10155.09 crore from the secondary markets last month. 

FPIs have bought shares worth a net Rs 50466 crore in calendar year 2015 so far (till 27 April 2015). They have bought shares worth a net Rs 42347.10 crore from the secondary equity markets in calendar year 2015 so far (till 27 April 2015). FPIs had bought shares worth a net Rs 97055.90 crore in the calendar year 2014. They had bought shares worth a net Rs 84440.80 crore from the secondary equity markets in calendar year 2014. 

Rupee reverses losses

At 63.1450/1550 per dollar 

Rupee closed higher on Tuesday (28 April 2015) at 63.1450/1550 per dollar, versus its previous close of 63.48/49 per dollar. 

 

Asia Pacific Market: Stocks mostly down ahead of Fed policy meeting

Asia Pacific share market closed down on Tuesday, 28 April 2015, as profit booking triggered on following losses on Wall Street overnight, as well as weaker than expected earnings reports from major companies and on caution ahead of key central bank policy meetings in the United States and Japan. The MSCI Asia Pacific excluding Japan Index slipped 0.4%. 

Fed policy makers will begin its two-day policy-setting meeting later Tuesday, which will be closely watched for any clues on the first rate hike. The latest round of weak US data have almost put an end to talk of a mid-summer interest rate hike by the Federal Reserve. 

Traders are awaiting the end of a two-day policy meeting by the Fed, hoping it will give a clue about its timetable for raising rates. That will be followed by a meeting by the Bank of Japan, with expectations high that it will hold off any further easing of monetary policy. 

Hopes of a deal between Greece and its creditors over its bailout terms provided a measure of support for the euro after Athens reshuffled its negotiating team following months of fruitless talks. 

Among Asian bourses
 
Australia market dives 0.6%
 
The Australian share market ended lower , as profit booking triggered across the board after the benchmark closed at seven-year high yesterday, with shares of healthcare, energy, tech, mining, and industrials sectors being major losers. The benchmark S&P/ASX 200 Index declined 34.20 points, or 0.57%, to 5948.50, while the broader All Ordinaries Index declined 33.30 points, or 0.56%, to 5921.50. Market turnover was relatively light, with 1.69 billion shares changing hands worth of A$4.99 billion, on caution ahead of key central bank policy meetings in the United States and Japan. Rising stocks under-performed declining ones, with total of 586 stocks up, while 730 stocks down. 

Shares of healthcare sector was biggest drag in Sydney market on tracking weak performance of the US peers, with global blood plasma products maker CSL down 1.5% to A$93.73, while medical device maker ResMed dropped 3.9% to A$8.13 and hearing aid maker Cochlear off by 4.1% to A$85. 

Financial stocks were down, with top four lenders being major losers, as a speech by Reserve Bank of Australia Gov. Glenn Stevens offering little in the way of clues as to whether the central bank would cut interest rates at its May meeting. Commonwealth Bank dropped 0.2% to A$92.58, National Australia Bank 0.2% to A$38.38, Westpac Banking Corp 1.2% to A$38.39, and ANZ Banking Group 0.5% to A$35.41. 

Energy producers were down on tracking losses for crude-oil and natural-gas futures. Australia's biggest oil producer Woodside Petroleum declined 0.9% to A$35.58 and Santos fell 0.6% to A$8.30. Oil Search declined 2.1% to A$8.25. 

Nikkei rises 0.4% 
 
Japanese share market advanced to fresh 15 years high, as risk sentiments boosted by a weaker yen against major currency baskets. But market gain was limited amid some weak earnings results, Fitch Ratings to cut Japan's sovereign credit rating, and on caution ahead of the Federal Open Market Committee and the Bank of Japan's policy setting meeting later this week. The benchmark Nikkei 225 index advanced 75.63 points, or 0.38%, to finish at 20058.95. The broader Topix index of all first-section shares ended 8.36 points, or 0.52%, up at 1627.43. 

Japan's retail sales slumped 9.7% on year in March for the third straight drop, according to preliminary retail sales data from the Ministry of Economy, Trade and Industry released on Tuesday. Sales in fiscal 2014 fell 1.2% on year. 

Fitch Rating has downgraded Japan's long-term foreign and local currency issuer default ratings to “A'' from “A+” as the country continues to wrestle with staggering debt. Fitch said Monday that the government did not include sufficient measures in its budget to replace a sales tax hike it put off in the current fiscal year, which ends next March. It also lowered its senior unsecured foreign and local currency bonds ratings to “A'' from “A+.” 

Export-related stocks were mixed. Robot-maker Fanuc Corp jumped 3.3% after saying it would double its dividend and increase its share buybacks. Shares of Suzuki Motor Corp climbed up 3.1% after its Indian joint venture Maruti Suzuki India presented a forecast-beating quarterly profit and strong outlook. Fanuc Corp surged 3.3% after doubling its dividend payout ratio. JTEKT Corp. jumped 12% as the maker of car steering systems boosted its dividend and forecast rising net income. Mazda Motor Corp was down 2.1% after its full-year operating profit missed projections. Tokyo Electron tanked 14.8% after regulatory concerns killed its planned merger with Applied Materials Inc. 

Shanghai Composite drops 1.1% 
 
Mainland China equity market ended lower, as investors elected to withdraw some profit off the table after the benchmark indices surging to seven-year high yesterday. Meanwhile, weaker than expected corporate earnings and a warning from the nation's securities regulator about the risk of investment losses weighed on sentiments. The Shanghai Composite Index declined 51.18 points, or 1.13%, to 4476.21 points. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, retreated 65.73 points, or 1.37%, to 4741.86. 

Software stocks tumbled the most in Shanghai amid profit booking following strong this year's rally, with financial software developer Hundsun Technologies Inc. falling 10% daily 
 limit to CNY109.30. Goertek Inc., a supplier to Apple Inc., declined 5.8% to CNY32.26. 

Shares of Chinese lenders climbed the most in Shanghai amid speculation that China's central bank is considering buying commercial bank assets. Industrial & Commercial Bank of China rose 2.6% to CNY5.64 and Agricultural Bank of China jumped 2.8% to CNY4.11
Shares of materials and resources were also lower amid disappointing corporate earnings. Jiangxi Copper Co plunged 4.3% to CNY23.10 after the biggest producer of the metal reported a 61% slump in net profit to CNY134.9 million in the first quarter, as sales slid 21%. Angang Steel Co. dropped 5.1% to CNY7.69 after quarterly net income plunged to CNY19 million from last year's CNY286 million. 

Shares of PetroChina declined 2.2% to CNY14.33 while China Petroleum & Chemical Corp rose 1.3% to CNY8.67, after the two oil giants dismissed the merger speculations, saying they had never received any official information about such a restructuring. 

China Vanke Co shares declined 3.5% to CNY14.19 after the China's largest residential property developer yesterday reported its first-quarter core profit fell 58.9% to CNY628.7 million in the January-March period from a year earlier, as it sold and completed fewer properties. Net profit slipped 57.5% to CNY650.2 million, down from the CNY1.53 billion recorded during the same period in 2014, while revenue declined 6.4% to CNY8.9 million from the CNY9.0 billion recorded in the first quarter last year. 

Hang Seng closes flat
 
The Hong Kong stock market finished volatile trading session fresh seven and half year high, on persistent hopes that China will unveil more monetary easing measures to boost the slowing economy. But, gain on the upside was marginal amid slide in Mainland A-share market after hitting a seven-year high yesterday and on caution before the Federal Open Market Committee meeting later this week. The Hang Seng Index ended up 9.16 points or 0.03% to 28442.75, off an intra-day high of 28548.45 and day low of 28251.99. 

Shares of Citic Corp (00267) was the top blue chip winner, raising 5.8% to HK$15.72, after BofAML resumed coverage of the stock, with a "buy" rating and a target price of HK$18.
PetroChina (00857) declined 4.7% to HK$10.14 after denying talks of merger, and reported its net profit plunged 82% for the first quarter. Sinopec (00386) dipped 4.8% to HK$7.26. 

Sensex snaps 3-day losing streak
 
Banking, auto and telecom stocks led gains for key benchmark indices. Key indices underwent high volatility during the latter part of the trading session. Key benchmark indices trimmed gains after a sharp surge in late trade. The market breadth indicating the overall health of the market was positive. The barometer index, the S&P BSE Sensex, was provisionally up 153.55 points or 0.56% to 27,330.54. 

Index heavyweight HDFC edged higher in volatile trade. Index heavyweight and cigarette major ITC dropped. Two other index heavyweights Infosys and Reliance Industries also dropped. ICICI Bank surged on renewed buying after the bank reported better-than-expected Q4 results during trading hours yesterday, 27 April 2015. Maruti Suzuki India extended previous trading session's gains triggered by the car major reporting strong Q4 earnings. Shares of public sector oil marketing companies edged higher after crude oil prices dropped. 

Finance Minister Arun Jaitley has said in an article written in a foreign newspaper that he is considering setting up a high-level committee to resolve legacy tax cases. Jaitley said that the Modi government has not been entirely successful in convincing investors of the fairness of the country's tax system. He said that the government has pledged to end the previous Indian government's record of "tax terrorism". 

Meanwhile, the government has deferred a discussion on the GST constitutional amendment bill till after the passage of the finance bill in the Lok Sabha. The lower house would now take up for discussion and passage the bills on unaccounted money, land acquisition and GST from 5 to 8 May 2015, according to reports. 

Elsewhere in the Asia Pacific region: South Korea KOSPI fell 0.46% to 2147.67. Taiwan's Taiex index lost 0.16% to 9956.83. New Zealand's NZX50 rose 0.07% to 5769.65. Singapore's Straits Times index fell 0.6% at 3495.09. Indonesia's Jakarta Composite index fell 0.06% to 5242.16. Malaysia's KLCI was down 0.24% to 1855.06.