Bond yield unchanged

10-year G-sec Paper yield closes at 7.78% 

The yield on 10-year benchmark federal paper, 7.72% GS 2025, eased by 02 basis points (bps) to 7.78% compared with 7.79% at close in the previous trading session. The total trading volume on central bank's gilts trading platform stood at Rs 26,910 crore. 

Bond yield closed almost steady as market awaited GDP data for Q1 FY16. 

The weighted average rate in the overnight call money increased to 7.13% compared with 6.19% in previous session. The call money rate hovered in the range of 5.70% to 7.35% with the volume of Rs 16612.43 crore. 

Rupee continues its losing streak

At 66.48/49 per dollar 

Rupee closed lower at 66.48/49 per dollar on Monday (31 August 2015), versus its previous close of 66.14/15 per dollar last Friday.

Asia Pacific Market: Showed mixed trend

European stocks edged lower, after hawkish comments from Federal Reserve Vice Chairman Stanley Fischer. Key benchmarks in Germany and France were down by 0.59% to 0.66%. London markets were closed today, 31 August 2015, for a holiday.

German retail sales grew in July, rebounding from a decline in June, signaling that consumers in Europe's largest economy started the third quarter on firm footing, adjusted data from the country's statistics office, Destatis, showed today, 31 August 2015. The monthly gain of 1.4% in July 2015 was a recovery from the previous month's 1% decline. In annual terms, sales were 3.3% higher in July, the data showed.

Asian stocks were mixed. Key benchmark indices in Singapore and Japan were off 1.17% to 1.28%. Key benchmark indices in South Korea, Indonesia and Taiwan were up 0.2% to 1.94%.

Chinese stocks fell on media reports that China will avoid massive share purchases after an over $200 million two-month spree to support stocks, which sparked concerns about another round of a stock market sell-off. In mainland China, the Shanghai Composite shed 0.82%. In Hong Kong, the Hang Seng index rose 0.27%.

Chinese authorities have detained a journalist at a Chinese financial-news magazine for allegedly concocting and spreading false information related to securities and futures trading, the official Xinhua News Agency has said, according to media reports. Meanwhile, China's Ministry of Public Security has punished nearly 200 people for spreading online rumors in connection with recent major news events, in a government crackdown on politically sensitive discourse. The sweep targeted people who spread false Internet rumors regarding events such as the stock-market turmoil and deadly explosions earlier this month in the port city of Tianjin, according to news reports.

Chinese markets will be closed on 3 and 4 September 2015 when China will stage a parade to display its military prowess, despite a deteriorating economy.

In Japan, industrial output unexpectedly fell in July, trade ministry data showed. The 0.6% decline in output in July follows a 1.1% rise in June. Output fell in July as companies produced less smartphone parts, computers and cars, the data showed.

Trading in US index futures indicated that the Dow could slide 134 points at the opening bell. US stocks ended on a mixed note on Friday, 28 August 2015, as fears about a global economic slowdown due to China tested sentiment.

Over the weekend, Federal Reserve Vice Chairman Stanley Fischer said at the Kansas City Fed's annual retreat in Jackson Hole that there is "good reason" to expect inflation to rise and stabilize as the American economy grows stronger.

Amid divergent trend among various index components, key benchmark indices registered modest losses. The barometer index, the S&P BSE Sensex, lost 109.29 points or 0.41% to settle at 26,283.09. The 50-unit CNX Nifty lost 30.65 points or 0.38% to settle at 7,971.30. Benchmark indices witnessed intraday volatility. The Nifty fell below the psychological 8,000 mark. The Nifty had settled just a tad above the psychological 8,000 mark after registering modest gains during the previous trading session on Friday, 28 August 2015. The market breadth indicating the overall health of the market was negative.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 56.41 crore during the previous trading session on Friday, 28 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 847.43 crore on Friday, 28 August 2015, as per provisional data released by the stock exchanges

FPIs make small purchases

Net purchases of Rs 58.96 crore on 28 August 2015 

Foreign portfolio investors (FPIs) bought shares worth a net Rs 58.96 crore during the previous trading session on Friday, 28 August 2015. This compares with their massive selling of Rs 3133.54 crore during the preceding trading session on 27 August 2015. 

The net inflow of Rs 58.96 crore on 28 August 2015 was a result of gross purchases of Rs 5683.22 crore and gross sales of Rs 5624.26 crore. There was a net inflow of Rs 88.38 crore into the secondary equity markets on 28 August 2015, which was a result of gross purchases of Rs 5683.22 crore and gross sales of Rs 5594.84 crore. The S&P BSE Sensex rose 161.19 points or 0.61% to settle at 26,392.38 on that day, its highest closing level since 21 August 2015. 

There was a net outflow of Rs 29.42 crore from the category 'primary markets & others' on 28 August 2015. 

FPIs have offloaded shares worth a net Rs 16877.27 crore in this month so far (till 28 August 2015). They have sold shares worth a net Rs 16842.54 crore into the secondary equity markets in this month so far (till 28 August 2015). FPIs bought shares worth a net Rs 5318.99 crore in July 2015. They bought shares worth a net Rs 1865.19 crore from the secondary equity markets in July 2015. 

FPIs have bought shares worth a net Rs 27522.30 crore in calendar year 2015 so far (till 28 August 2015). They have bought shares worth a net Rs 11368.30 crore from the secondary equity markets in calendar year 2015 so far (till 28August 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. 

Asia Pacific Market: Market rebound continues

Asia Pacific share market ended last trading session of the week higher, Friday, 28 August 2015, taking heart from a strong rally in the U.S. markets after unexpectedly robust U.S. economic growth in the second quarter and amid signals from the Federal Reserve that an interest-rate increase looks less likely in the coming weeks. 

The Wall Street's more than 2% gains on Thursday after better than expected economic data. The Commerce Department reported that the US economy grew at an annual rate of 3.7% in the second quarter, much higher than the 2.3% initially estimated. Initial jobless claims dropped by 6,000 for the week ending in 22 August 2015 to a seasonally adjusted 271,000, according to the Department of Labor. Together, the brighter reports may be giving investors confidence that the US economy could withstand a continuing slowdown in China. 

New York Fed's William Dudley suggested that a rate hike in September appeared less likely now. According to him, "the decision to begin the normalization process at the September FOMC meeting seems less compelling to me than it was a few weeks ago". He noted that "normalization could become more compelling by the time of the meeting as we get additional information on how the US economy is performing, and more information on international and financial market developments". Dudley, however, remained hopeful about beginning the tightening cycle this year. He hoped that "we can raise interest rates this year, because that would be a sign that the US economic outlook is good and that we're actually on track to achieve our dual mandate objective.

US Fed official Esther George (non-voting member) said it's too soon to tell whether market volatility is going to affect the U.S. economy, adding that “At this point, I have not seen something that would change my own sense of how the economy is doing” The weekend will bring the Federal Reserve's annual conference in Jackson Hole, Wyo., where the central bank might offer fresh clues about a possible interest-rate hike. Kansas City Fed President Esther George yesterday, 27 August 2015, said the market turmoil complicates any decision to raise rates. Yet, she repeated her long-held call for a rate increase. 

Among Asian bourses
 
Nikkei reclaims 19K mark
 
Japanese share market advanced for third straight day, as risk sentiments bolstered by tracking a second day of gains in U.S. markets and yen depreciation against dollar. Sentiment also got a lift by speculation of more stimulus from Japan central bank after official data showed that Japanese inflation fell back to zero in July while household spending dropped again. 

Australian market rises another 0.6%
 
The Australian share market finished last trading session of the week firmly higher, following rally on the Wall Street overnight. Sentiments also lifted by rebound in crude oil and base metal prices. However, market gains were limited as investors pocketed some gain off the table following recent run and ahead of weekend holiday. The ASX sectors ended mixed, with materials and energy blue chip being winner of the day. The benchmark S&P/ASX 200 index advanced 30.30 points, or 0.58%, to 5263.60 points. The broader All Ordinaries index closed 32.10 points, or 0.61%, higher at 5274.70.

China stocks gain for second day
 
Mainland China's stock market advanced for second day in row on Friday, 28 August 2015, amid speculation that the government had restarted buying in a bid to boost market confidence. Sentiment also got a lift on news that Chinese pension funds will invest $313 billion in stocks and other assets as soon as possible and reports that Chinese government would ease restriction on property purchases by overseas institutions and individuals. The benchmark Shanghai Composite Index spurted 148.76 points, or 4.82%, to 3232.35. The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 5.4%, or 94.61 points, to 1846.83. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, gained 6.26%, or 122.63 points, to close at 2082.12. 

Hong Kong market closes lower on profit booking
 
Hong Kong stock market finished the session lower after wiping out intraday gain, dragged down by profit taking pressure late afternoon. Most of the blue-chip declined, with banks and financials led losses which reported virtually no profit growth in the first-half and mounting bad loans, adding to worries that the economy may be at risk of a sharper slowdown than earlier expected. The Hang Seng Index ended lower by 226.15 points, or 1.04%, at 21612.39 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, sank 112.88 points, or 0.54%, to 9750.73 points. Turnover reduced to HK$108.9 billion from HK$134.5 billion on Tuesday. Turnover soared to HK$122.43 billion from HK$109 billion on Wednesday. 

Sensex trades firmly higher in afternoon
 
A bout of volatility was witnessed as Indian benchmark indices regained strength after trimming intraday gains in early afternoon trade. The 50-unit CNX Nifty retained the psychological 8,000 mark. Earlier, the Nifty regained the psychological 8,000 mark after opening with an upward gap on positive cues from global markets. At 12:19 IST, the S&P BSE Sensex was up 403.85 points or 1.54% at 26,635.04. The CNX Nifty was up 127.45 points or 1.6% at 8,076.40. 

Reserve Bank of India (RBI) said in its Annual Report for 2014-15 published yesterday, 27 August 2015, that inflation developments will warrant close and continuous monitoring as part of the overall disinflation strategy that requires inflation to be brought down to 5% by January 2017. 

There was massive selling of Indian stocks by foreign portfolio investors (FPIs) yesterday, 27 August 2015. FPIs sold shares worth a net Rs 3347.35 crore yesterday, 27 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 2577.06 crore yesterday, 27 August 2015, as per provisional data released by the stock exchanges. 

Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 2.5% to 8019.18. South Korea's KOPSI added 1.6% to 1937.67. New Zealand's NZX50 jumped 0.6% to 5670.48. Singapore's Straits Times index added 1.2% at 2979. Indonesia's Jakarta Composite index grew 1% to 4473. Malaysia's KLCI added 0.7% to 1613.29. 

Heavy selling from FPIs continues

Net outflow of Rs 3133.54 crore on 27 August 2015 

Heavy selling of Indian stocks by foreign portfolio investors (FPIs) continued for another trading session. Foreign portfolio investors (FPIs) offloaded shares worth a net Rs 3133.54 crore yesterday, 27 August 2015. On 26 August, FPIs had dumped stocks worth a net Rs 2425.84 crore. 

The net outflow of Rs 3133.54 crore on 27 August 2015 was a result of gross purchases of Rs 7547.59 crore and gross sales of Rs 10681.13 crore. There was a net outflow of Rs 3122.93 crore from the secondary equity markets on 27 August 2015, which was a result of gross purchases of Rs 7546.60 crore and gross sales of Rs 10669.53 crore. The S&P BSE Sensex jumped 516.53 points or 2.01% to settle at 26,231.19 on that day. 

There was a net outflow of Rs 10.61 crore from the category 'primary markets & others' on 27 August 2015, which was a result of gross purchases of Rs 0.99 crore and gross sales of Rs 11.60 crore. 

FPIs have offloaded shares worth a net Rs 16936.23 crore in this month so far (till 27 August 2015). They have sold shares worth a net Rs 16930.92 crore into the secondary equity markets in this month so far (till 27 August 2015). FPIs bought shares worth a net Rs 5318.99 crore in July 2015. They bought shares worth a net Rs 1865.19 crore from the secondary equity markets in July 2015. 

FPIs have bought shares worth a net Rs 27463.30 crore in calendar year 2015 so far (till 27 August 2015). They have bought shares worth a net Rs 11279.90 crore from the secondary equity markets in calendar year 2015 so far (till 27 August 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 gains further

At 66.04/05 per dollar 

Rupee closed higher at 66.04/05 per dollar on Thursday (27 August 2015), versus its previous close of 66.14/15 per dollar.

Bond yield eases

10-year G-sec Paper yield closes at 7.77% 

The yield on 10-year benchmark federal paper, 7.72% GS 2025, eased by 02 basis points (bps) to 7.77% compared with 7.79% at close in the previous trading session. The total trading volume on central bank's gilts trading platform stood at Rs 48,100 crore. 

Bond yield eased for a third day on speculation lower oil prices and slowing inflation will give the central bank room to cut borrowing costs further after China unexpectedly reduced interest rates on Tuesday. 

The weighted average rate in the overnight call money eased to 7.03% compared with 7.11% in previous session. The call money rate hovered in the range of 5.75% to 7.30% with the volume of Rs 12411.39 crore. 

Asia Pacific Market: Stocks rose across the globe

Gains were spread across Asian markets after US stocks witnessed a solid rally overnight. Key benchmark indices in Indonesia, Japan, Singapore, South Korea and Taiwan were up by 0.73% to 4.55%.

Trading in US index futures indicated that the Dow could rise 175 points at the opening bell today, 27 August 2015. US stocks witnessed a solid rally yesterday, 26 August 2015, on expectations that the US central bank will hold off from hiking interest rates next month due to mounting global uncertainties. The rally followed six days of losses for markets that have been shaken by news about China's currency and economy.

Latest economic data showed that orders for durable or long-lasting US goods rose 2% in July, led by demand for automobiles and military hardware.

Meanwhile, New York Fed President William Dudley yesterday, 26 August 2015, said that the case for a rate hike in September is less compelling given recent international developments and volatility in financial markets. 

Among Asian bourses 







Australia market advances for a third straight session

As risk sentiments boosted by tracking rally on the Wall Street overnight and better than expected domestic business investment intentions data. All ASX sectors recorded gains, with financials, healthcare, energy, and utilities stocks being winner of the day. The benchmark S&P/ASX 200 index advanced 60.50 points, or 1.17%, to 5233.30 points. The broader All Ordinaries index closed 63.70 points, or 1.23%, higher at 5242.60. 

Nikkei extends gain on U.S. rally

As risk sentiments bolstered by tracking rally on the US markets overnight and yen weakness resumption against major currency baskets after hints the US Federal Reserve would not raise interest rates next month. Total of 29 out of 33 TSE industry groups advanced, with shares of foods, construction & materials, financials, banks, IT & services, real estate, and retail trade companies being biggest gainers. The Nikkei Stock Average advanced 197.61 points, or 1.08%, to end at 18574.44 points, extending yesterday 3.2% gains. The broader Topix index ended up 1.45%, or 21.44 points at 1500.41. 

China stocks rebound on rate cut
  
Investors chased for bottom fishing on battered blue chip stocks after heavy selloff in recent sessions. Risk sentiments improved after the Chinese central bank's easing decisions calmed market concerns over economic slowdown. The benchmark Shanghai Composite Index rebounded 156.30 points, or 5.34%, to 3083.59, following a 20-percent loss since last Thursday. The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 3.33%, or 56.45 points, to 1752.21. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, gained 3.68% to close at 1,959.49.

Hong Kong market closes sharply higher

Investors chased for bottom fishing on battered blue chip stocks on tracking gain on the Wall Street overnight after some clarity on the U.S. Federal Reserve's monetary policy emerged. Meanwhile, rebound on the Mainland China stocks also amplified buying sentiments. The Hang Seng Index ended higher by 758.15 points, or 3.6%, at 21838.54 points.  

Sensex, Nifty attain highest closing level in almost a week  


A rally in global markets sent Indian stocks surging. The barometer index, the S&P BSE Sensex, jumped 516.53 points or 2.01% to settle at 26,231.19. The 50-unit CNX Nifty jumped 157.10 points or 2.02% to settle at 7,948.95. Oil, metal and pharma stocks and index heavyweight HDFC led the rally for key benchmark indices. The Sensex reclaimed the psychological 26,000 level. The Sensex and Nifty, both, hit their highest closing level in nearly a week.

Foreign portfolio investors (FPIs) pressed substantial sales of Indian stocks yesterday, 26 August 2015. FPIs sold shares worth a net Rs 2340.93 crore into the secondary equity market yesterday, 26 August 2015, as per data from National Securities Depository (NSDL). Domestic institutional investors (DIIs) bought shares worth a net Rs 1881.08 crore yesterday, 26 August 2015, as per provisional data released by the stock exchanges.

FPIs extend selling

Net outflow of Rs 2425.84 crore on 26 August 2015 

Foreign portfolio investors (FPIs) offloaded shares worth a net Rs 2425.84 crore yesterday, 26 August 2015, as per data released by the National Securities Depository (NSDL). The figure was higher than net outflow of Rs 1992.29 crore on Tuesday, 25 August 2015. 

The net outflow of Rs 2425.84 crore on 26 August 2015 was a result of gross purchases of Rs 5045.60 crore and gross sales of Rs 7471.44 crore. There was a net outflow of Rs 2340.93 crore from the secondary equity markets on 26 August 2015, which was a result of gross purchases of Rs 5045.36 crore and gross sales of Rs 7386.29 crore. The S&P BSE Sensex fell 317.72 points or 1.22% to settle at 25,714.66 on that day, its lowest closing level since 11 August 2014. 

There was a net outflow of Rs 84.91 crore from the category 'primary markets & others' on 26 August 2015. 

FPIs have offloaded shares worth a net Rs 13802.69 crore in this month so far (till 26 August 2015). They have sold shares worth a net Rs 13807.99 crore into the secondary equity markets in this month so far (till 26 August 2015). FPIs bought shares worth a net Rs 5318.99 crore last month. They bought shares worth a net Rs 1865.19 crore from the secondary equity markets last month. 

FPIs have bought shares worth a net Rs 30596.93 crore in calendar year 2015 so far (till 26 August 2015). They have bought shares worth a net Rs 14403.16 crore from the secondary equity markets in calendar year 2015 so far (till 26 August 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.

Mutual funds on buying spree

Net inflow of Rs 2045.60 crore on 25 August 2015

Mutual funds bought shares worth a net Rs 2045.60 crore yesterday, 25 August 2015, higher than net inflow of Rs 1998.60 crore on Monday, 24 August 2015. 

The net inflow of Rs 2045.60 crore on 25 August 2015 was a result of gross purchases of Rs 2797.70 crore and gross sales of Rs 752.10 crore. The S&P BSE Sensex had risen 290.82 points or 1.13% to settle at 26,032.38 on that day, its highest closing level since 21 August 2015. 

Mutual funds have purchased shares worth a net Rs 6345.50 crore in this month so far (till 25 August 2015). They have purchased shares worth a net Rs 5442.10 crore last month. 

UTI MF Announces Resignation of Director

With effect from 20 August 2015 

UTI Mutual Fund has announced that P.R.Khanna has resigned from the position of Director of UTI Asset Management Company, with effect from 20 August 2015.

ICICI Prudential Fixed Maturity Plan – Series 64 – 3 Years Plan H Announces Dividend

Record date for dividend is 31 August 2015 

ICICI Prudential Mutual Fund has announced 31 August 2015 as the record date for declaration of dividend on the face value of Rs 10 per unit under the regular plan-dividend option of ICICI Prudential Fixed Maturity Plan – Series 64 – 3 Years Plan H. 

The recommended rate of dividend will be Re 0.05 per unit as on the record date.

ICICI Prudential Infrastructure Fund Announces Dividend

Record date for dividend is 31 August 2015 

ICICI Prudential Mutual Fund has announced 31 August 2015 as the record date for declaration of dividend under ICICI Prudential Infrastructure Fund. 

The amount of dividend (Rs per unit) on the face value of Rs 10 per unit will be: 

Regular Plan – Dividend: 1.60 

Direct Plan – Dividend: 1.70 

Asia Pacific Market: Global sell-off button pressed harder

As on today, Monday, 24 August 2015, European stocks edged lower, extending a selloff in global equities spurred by worries that China's economy is slowing down more than anticipated. Key indices in Germany, UK and France were off 2.03% to 3.05%.

Chinese stocks led a sell-off in Asian markets, as fears about the deepening effects of a slowdown in China's economy rattled investors. In mainland China, the Shanghai Composite lost 8.49%. In Hong Kong, the Hang Seng index lost 5.17%. The sharp setback in Chinese stocks materialized as China's central bank failed to take expected action over the weekend to provide more support for the financial system. China's surprise move to devalue its yuan two weeks ago — which could make its exports more competitive — and a string of weak data signal the economy may be feebler than expected, despite a campaign to rev up growth including interest rate cuts and measures to boost lending.

In other Asian markets, key benchmark indices in Indonesia, Japan, Singapore, South Korea and Taiwan lost 2.47% to 4.84%.

Trading in US index futures indicated that the Dow could slump at the opening bell today, 24 August 2015. US stocks tumbled on Friday, 21 August 2015, as fears about China's economy and global growth spurred heavy selling.

Meanwhile, sell off in oil, banking and metal shares led the carnage on the domestic bourses. Indian barometer index, the S&P BSE Sensex, lost 1,624.51 points or 5.94% to settle at 25,741.56. The 50-unit CNX Nifty lost 490.95 points or 5.92% to settle at 7,809. The Sensex hit its lowest closing level in more than a year. The Nifty hit its lowest closing level in more than 10 months. The Nifty ended below the psychological 8,000 mark while the Sensex ended below the psychological 26,000 level. The sharp setback on the Indian bourses was triggered by a rout in Asian stocks.

Meanwhile, Finance Minister Arun Jaitley expects Indian financial markets to stabilize soon, according to news reports. Jaitley has attributed the current turmoil in Indian financial markets to external factors, according to reports. Meanwhile, Reserve Bank of India Governor Raghuram Rajan said at a banking conference in Mumbai today, that it is not the role of the central bank of a country to elevate sentiments unduly to deliver booster shots to the stock market.

Reserve Bank of India Governor Raghuram Rajan was quoted as saying at a banking conference today, that the RBI has no hesitation in using the foreign exchange reserves when appropriate to reduce volatility in the rupee. India has steadily built up its foreign exchange reserves to a record high of more than $355 billion since Rajan took the helm of the RBI in September 2013, when the rupee was in the midst of its worst crisis in more than two decades.

There was heavy selling of Indian stocks by foreign portfolio investors (FPIs) during the previous trading session on Friday, 21 August 2015. FPIs sold shares worth net Rs 2292.98 crore into secondary equity market on Friday, 21 August 2015, as per data from Central Depository Services (India). Domestic institutional investors (DIIs) bought shares worth a net Rs 1524.10 crore on Friday, 21 August 2015, as per provisional data released by the stock exchanges.

FPIs extend selling

Net outflow of Rs 2299.32 crore on 21 August 2015 

Foreign portfolio investors (FPIs) offloaded shares worth a net Rs 2299.32 crore on Friday, 21 August 2015, as per data released by the National Securities Depository (NSDL). The figure was sharply higher than net outflow of Rs 958.59 crore on Thursday, 20 August 2015. 

The net outflow of Rs 2299.32 crore on 21 August 2015 was a result of gross purchases of Rs 4582.10 crore and gross sales of Rs 6881.42 crore. There was a net outflow of Rs 2292.98 crore from the secondary equity markets on 21 August 2015, which was a result of gross purchases of Rs 4582.10 crore and gross sales of Rs 6875.08 crore. The S&P BSE Sensex lost 241.75 points or 0.88% to settle at 27,366.07 on that day, its lowest closing level since 19 June 2015.
 
There was a net outflow of Rs 6.34 crore from the category 'primary markets & others' on 21 August 2015. 

FPIs have offloaded shares worth a net Rs 4242.39 crore in this month so far (till 21 August 2015). They have sold shares worth a net Rs 4365.40 crore into the secondary equity markets in this month so far (till 21 August 2015). FPIs bought shares worth a net Rs 5318.99 crore last month. They bought shares worth a net Rs 1865.19 crore from the secondary equity markets last month. 

FPIs have bought shares worth a net Rs 40157.23 crore in calendar year 2015 so far (till 21 August 2015). They have bought shares worth a net Rs 23845.75 crore from the secondary equity markets in calendar year 2015 so far (till 21 August 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. 

Franklin India High Growth Companies Fund Announces Dividend

Record date for dividend is 28 August 2015 

Franklin Templeton Mutual Fund has announced 28 August 2015 as the record date for declaration of dividend under the dividend plan and direct-dividend plan of Franklin India High Growth Companies Fund. 

The amount of dividend will be Rs 2.00 per unit under each plan on the face value of Rs 10 per unit.

Kotak Opportunities Fund Announces Dividend

Record date for dividend is 28 August 2015 

Kotak Mutual Fund has announced 28 August 2015 as the record date for declaration of dividend under regular plan-dividend option and direct plan-dividend option of Kotak Opportunities Fund, an open ended equity growth scheme. 

The quantum of dividend will be Re. 1.60 per unit under each plan / option as on the record date on the face value of Rs 10 per unit .

UTI-Sensex Exchange Traded Fund Floats On

NFO period is from 24 August to 26 August 2015 

UTI Mutual Fund has launched a new fund named as UTI-Sensex Exchange Traded Fund, an open ended exchange traded fund. The new fund offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 24 August and close on 26 August 2015. 

The investment objective of the scheme is to provide returns that, before expenses, closely correspond to the total returns of the securities is represented by the underlying index, subject to tracking error. 

The scheme offers only growth option. 

The scheme would invest 95%-100% of assets in securities covered by the S&P BSE Sensex with medium to high risk profile and invest upto 5% of assets in cash / money market instruments with low risk profile. 

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

The fund seeks to collect a minimum subscription (minimum target) amount of Rs 10 crore under the scheme during the NFO period. 

Entry and exit load charge are not applicable. 

Benchmark Index for the scheme is S&P BSE Sensex Index. 

The fund manager of the scheme will be Kausik Basu. 

UTI-Nifty Exchange Traded Fund Floats On

NFO period is from 24 August to 26 August 2015 

UTI Mutual Fund has launched a new fund named as UTI-Nifty Exchange Traded Fund, an open ended exchange traded fund. The new fund offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 24 August and close on 26 August 2015. 

The investment objective of the scheme is to provide returns that, before expenses, closely correspond to the total returns of the securities is represented by the underlying index, subject to tracking error. 

The scheme offers only growth option. 

The scheme would invest 95%-100% of assets in securities covered by the CNX Nifty Index with medium to high risk profile and invest upto 5% of assets in cash / money market instruments with low risk profile. 

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

The fund seeks to collect a minimum subscription (minimum target) amount of Rs 10 crore under the scheme during the NFO period. 

Entry and exit load charge are not applicable. 

Benchmark Index for the scheme is CNX Nifty Index. 

The fund manager of the scheme will be Kausik Basu. 

ICICI Prudential MF Announces Introduction of Cumulative option under ICICI Prudential Recovery Fund – Series 3

ICICI Prudential Mutual Fund has announced introduction of cumulative option under ICICI Prudential India Recovery Fund – Series 3. 

Accordingly, the revised options available under the scheme will be cumulative and dividend payout options with dividend payout as default option.

L&T India Prudence Fund Announces Dividend

Record date for dividend is 27 August 2015

L&T Mutual Fund has announced 27 August 2015 as the record date for declaration of dividend under the dividend option & direct plan-dividend option of L&T India Prudence Fund. 

The quantum of dividend will be Re 0.12 per unit under each plan as on the record date on the face value of Rs 10 per unit.

Canara Robeco Infrastructure Fund Announces Dividend

Record date for dividend is 28 August 2015 

Canara Robeco Mutual Fund has announced 28 August 2015 as the record date for declaration of dividend under the regular plan-dividend option of Canara Robeco Infrastructure Fund. 

The amount of dividend will be Rs 1.65 per unit under each plan on the face value of Rs 10 per unit.

ICICI Prudential MF Announces Dividend under its schemes

Record date for dividend is 28 August 2015 

ICICI Prudential Mutual Fund has announced 28 August 2015 as the record date for declaration of dividend under the regular plan-dividend option and direct plan-dividend option of ICICI Prudential Value Fund – Series 1, ICICI Prudential Value Fund – Series 2, ICICI Prudential Value Fund – Series 3, ICICI Prudential Value Fund – Series 4, ICICI Prudential Growth Fund – Series 1 and ICICI Prudential Equity Savings Fund – Series 1. 

The recommended rate of dividend will be Rs 0.75 per unit under each plan / option on the face value of Rs 10 per unit.

SBI MF Announces Dividend Under Two Schemes

Record date for dividend is 28 August 2015 

SBI Mutual Fund has announced 28 August 2015 as the record date for declaration of dividend under the dividend option of following schemes. 

The quantum of dividend (Rs per unit) on the face value of Rs 10 per unit will be: 

SBI Small & Midcap Fund: 

Regular Plan: 3.69
Direct Plan: 4.30 

SBI Arbitrage Opportunities Fund: 

Regular Plan & Direct Plan: Rs 0.07 each.

Rupee at its worst

At 65.8250/8350 per dollar 

Rupee closed lower at 65.8250/8350 per dollar on Friday (21 August 2015), versus its previous close of 65.54/55 per dollar.

Asia Pacific Market: Selloff continues on growth worries

The risk aversion tightened its grip on the Asia Pacific share market on last trading session of the week, Friday, 21 August 2015, as investors' nerves took another hit after a gauge of Chinese manufacturing plunged to the lowest since 2009.The China-led risk aversion was bolstered by fresh risk-off events on Thursday – Greek PM resignation, geopolitical risk (North Korea), and fresh signs of currency wars. Stoking selloff, the US stock markets suffered massive losses as well overnight, with S&P 500 dropping below one of its most closely watched indicators, a 200-day moving average. 

The preliminary Caixin China Manufacturing Purchasing Managers' Index, a gauge of nationwide manufacturing activity, dropped to a 77-month low of 47.1 in August, compared with a final reading of 47.8 in July. The reading was the worst since March 2009, in the depths of the global financial crisis, and the sixth straight one below the 50-point level, which separates growth in activity from contraction on a monthly basis. The flash PMI, the earliest economic measure to be released about China each month, is closely followed by global investors for clues on the health of the economy. 

Geopolitical tension revives after North Korean leader Kim Jong-un has ordered his frontline troops to be on a war footing, after an exchange of fire with the South across their heavily fortified border. 

China's move last week to devalue the yuan has drawn much bad press, sparking talk of competitive devaluation, or currency wars. Slower growth in China means falling demand for and hence import of raw materials and energy from commodity-exporting countries like Canada, Australia, Brazil, Indonesia and many other developing economies. This further depresses the currencies of these countries, already suffering from an outflow of capital to the higher-growth, soon-to-be-higher- interest-rate US. 

In Greece, Prime Minister Alexis Tsipras resigned on Thursday and called snap elections in September, a move aimed at strengthening his grip on power. After fighting the last election on an anti-austerity platform, and spending much of his first six months in office attempting to reverse some of the changes made in Greece under its international bailout, he was eventually forced to back down in negotiations with the country's creditors in July. 

Among Asian bourses
 
Australian market tumbles to 8-month low
 
The Australian share market plummeted to eight month low as risk aversion selloff after weaker-than-expected China manufacturing data heightened concern the economic slowdown in Australia's biggest trading partner is deepening. All ASX sectors closed lower, with financials were the hardest hit. Meanwhile, selloff pressure was evident in realty, property trusts, healthcare and retailers. The benchmark S&P/ASX 200 Index stumbled 74 points, or 1.4%, to 5214.60 points, while the broader All Ordinaries Index tanked 70.70 points, or 1.34%, to 5224.80 points.

Nikkei tanks 3%
 
Japanese share market finished the session steep lower as drop in the Wall Street overnight, stronger yen, weaker-than-expected China manufacturing data, and the prospect of higher US interest rates has spurred a wave of selling across sectors. All of the gauge's 33 industry groups declined, with shares of insurance, real estate, banks, utilities, brokerage houses, shippers and resources being key losers. The Nikkei Stock Average tumbled 597.69 points, or 2.98%, to end at 19435.83 points. The broader Topix index ended 50.87 points, or 3.13%, lower at 1573.01 points. For the week, the Nikkei index lost 5.3%.

China market tanks 4.3%
 
The risk aversion tightened its grip on the Mainland China's stock market, as investors nerves took another hit by a private gauge of Chinese manufacturing unexpectedly falling to its lowest level in more than six years. All sectors weakened, with shares of technology and consumer goods players were the biggest decliners. The benchmark Shanghai Composite Index closed down by 4.27%, or 156.55 points, to 3507.74 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, de-grew 5.4%, or 116.10 points, to 2039.40 points. Total volume of A shares traded in Shanghai was 37 billion shares, while Shenzhen volume was 26.01 billion shares. 

The gloomy PMI figure followed other official data last week that showed growth in China's factory output, investment and retail sales were all weaker than expected in July, dashing hopes that the economy was finally stabilizing after a flurry of support measures over the last year, including four interest rate cuts and a massive stock market rescue.

Hong Kong market enters in bear terrain
 
Hong Kong stock market declined for sixth straight session, as concern a slowing China economy and weaker yuan will spur capital outflows. Meanwhile, the weakest Chinese manufacturing data since the global financial crisis accelerated losses in riskier assets. The Hang Seng Index ended down 347.888 points, or 1.53%, at 22409.62 points, taking declines since an April 28 high beyond 20% level that signifies the start of a bear market. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, lost 207.67 points, or 2%, to 10195.05 points. Turnover increased to HK$118.3 billion from HK$105 billion on Thursday. 

Sensex falls on tracking global selloff
 
Indian share market ended lower as fears of a China-led deceleration in global growth and escalating tension between South Korea and North Korea gripped markets. Sensex and Nifty provisionally closed 241.75 points and 72.80 points lower at 27,366 and 8,299.95, respectively. 

Almost all sectors languished in the red, with financial and auto and auto-ancillary stocks suffering the biggest cuts. 

Foreign portfolio investors (FPIs) sold shares worth a net Rs 1007.26 crore yesterday, 20 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 567.87 crore yesterday, 20 August 2015, as per provisional data. 

Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 3% to 7786.92. South Korea's KOPSI declined 2% to 1876.07. New Zealand's NZX50 rose 0.2% to 5751.19. Singapore's Straits Times index shed 1.3% at 2971.01. Indonesia's Jakarta Composite index sank 2.4% to 4335.95. Malaysia's KLCI fell 0.2% to 1574.67. 

Sebi bars 59 entities for suspicious and non-genuine trades in options of individual stocks

Sebi to carry out further investigation in the matter 

Stock market regulator Securities and Exchange Board of India (Sebi) has barred a total of 59 persons/entities from dealing in the stock market after its investigation found suspicious and non-genuine trades in options of individual stocks which are thinly traded. The investigation pertained to trades done on BSE in options of individual stocks during the period from 1 April 2014 to 31 March 2015. As per Sebi's investigation, the loss-making entities were deliberately making repeated loss through their reversal trades in stock options and the profit-making entities were facilitating them by becoming their counterparties and were acting in concert with a common object of intended execution of these suspicious and non-genuine trades. The loss making entities sold illiquid stock options at prices less than their intrinsic value. The reasons for executing such trades by these entities could be showing artificial volume and trading interest in these instruments or tax evasion or portraying artificial increase in net worth of a private company/individual, Sebi said in its ad interim ex-parte order barring 59 entities from dealing in stock market. 

Sebi said that a detailed investigation of the entire scheme employed in this case is necessary to find out the rationale of entities to indulge in suspicious/artificial trades including tracing the fund trail and the role of intermediaries in allowing such fictitious trades to enter the system. Sebi will issue a final order after carrying out further investigation. 

Reliance Fixed Horizon Fund – XXIX – Series 4 Floats On

NFO period is from 21 August to 24 August 2015 

Reliance Mutual Fund has launched a new fund named as Reliance Fixed Horizon Fund – XXIX – Series 4, a close ended income scheme with the duration of 1118 days from the date of allotment. During the New Fund Offer (NFO), the scheme will offer units at Rs 10 per unit. The new issue will be open for subscription from 21 August to 24 August 2015. 

This product is suitable for investors seeking returns and growth over the term of the fund limiting interest rate volatality by investment in debt, money market and G-sec instruments maturing on or before the date of maturity of the scheme with low risk - Blue. 

The primary investment objective of the scheme is to generate returns and growth of capital by investing in a diversified portfolio of Central, State Government securities and other fixed income/ debt securities maturing on or before the date of maturity of the scheme with the objective of limiting interest rate volatility. 

The scheme offers growth and dividend pay out option under both regular plan and direct plan. 

The scheme will allocate upto 20% of its assets in money market instruments with low risk profile and invest 80%-100% of its assets in government securities & debt instruments with low to medium risk profile. 

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

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

The fund manager of the scheme will be Amit Tripathi. 

SBI Fixed Interval Debt Series – 90 Days – 1 Announces Dividend

Record date for dividend is 26 August 2015 

SBI Mutual Fund has announced 26 August 2015 as the record date for declaration of dividend under the dividend option of SBI Fixed Interval Debt Series – 90 Days - 1. 

The quantum of dividend will be entire distributable surplus as on the record date on the face value of Rs 10 per unit.

Principal MF Announces Change In Fund Manager

With effect from 21 August 2015 

Principal Mutual Fund has announced that Rajat Jain has been designated as the fund manager of Principal Index Fund – Nifty and Principal Index Fund –Midcap, an open ended index schemes, with effect from 21 August 2015. 

Accordingly, Rupali Pandit ceases to be the fund manager for the above mentioned schemes.
Designation of Key Personnel of the AMC:

Karan Singh, National Sales Head and Prateek Jain, Debt Dealer of Principal Pnb Asset Management Company are designated as Key Personnel of the company. 

Religare Invesco MF Announces Merger of Two Schemes

The record date for merger is 24 September 2015

Religare Invesco Mutual Fund has approved the merger of Religare Invesco AGILE Fund with Religare Invesco Growth Fund, with effect from 24 September 2015. 

The period of this exit option is from 24 August 2015 to 22 September 2015. 

ICICI Prudential MF Announces Dividend Under Its Schemes

Record date for dividend is 26 August 2015 

ICICI Prudential Mutual Fund has announced 26 August 2015 as the record date for declaration of dividend under the dividend option of following schemes. 

The amount of dividend (Rs per unit) on the face value of Rs 10 per unit will be: 

ICICI Prudential Equity Income Fund: 

Regular Plan – Monthly Dividend: 0.04
Direct Plan – Monthly Dividend: 0.04 

ICICI Prudential Equity Arbitrage Fund: 

Regular Plan – Dividend: 0.0724
Direct Plan – Dividend: 0.0823 

ICICI Prudential Blended Plan – Plan A: 

Regular Plan – Dividend: 0.0789
Direct Plan – Dividend: 0.0847 

ICICI Prudential Balanced Advantage Fund: 

Regular Plan – Monthly Dividend: 0.08
Direct Plan – Monthly Dividend: 0.08 

ICICI Prudential Balanced Fund: 

Regular Plan – Dividend: 0.15
Direct Plan – Dividend: 0.15 

ICICI Prudential Income Opportunities Fund: 

Regular Plan – Quarterly Dividend: 0.2118
Direct Plan – Quarterly Dividend: 0.2250
Institutional Quarterly Dividend: 0.2196 

ICICI Prudential Short Term Gilt Fund: 

Regular Plan – Dividend: 0.2206
Direct Plan – Dividend: 0.2379 

ICICI Prudential Monthly Income Plan: 

Regular Plan – Half Yearly Dividend: 0.3764
Direct Plan – Half Yearly Dividend: 0.4397
Regular Plan – Quarterly Dividend: 0.2554
Direct Plan – Quarterly Dividend: 0.2873

ICICI Prudential Interval Fund II- Quarterly Interval Plan A Announces Dividend

Record date for dividend is 26 August 2015 

ICICI Prudential Mutual Fund has announced 26 August 2015 as the record date for declaration of dividend under the dividend option of ICICI Prudential Interval Fund II- Quarterly Interval Plan A. 

The amount of dividend (Rs per unit) on the face value of Rs 10 per unit will be: 

Retail Dividend: 0.1641 

Regular Plan – Dividend: 0.1640 

Regular Plan - Quarterly Dividend Payout: 0.1640 

Direct Plan – Dividend: 0.1665

ICICI Prudential Fixed Maturity Plan – Series 72 – 1075 Days Plan Q Announces Dividend

Record date for dividend is 26 August 2015 

ICICI Prudential Mutual Fund has announced 26 August 2015 as the record date for declaration of dividend on the face value of Rs 10 per unit under the regular plan-dividend option and direct plan – dividend option of ICICI Prudential Fixed Maturity Plan – Series 72 – 1075 Days Plan Q. 

The recommended rate of dividend will be Re 0.05 per unit under each plan / option as on the record date.

Mutual funds continue buying

Net inflow of Rs 236.40 crore on 20 August 2015

Mutual funds bought shares worth a net Rs 236.40 crore on Thursday, 20 August 2015, compared with net inflow of Rs 325 crore on Wednesday, 19 August 2015. 

The net inflow of Rs 236.40 crore on 20 August 2015 was a result of gross purchases of Rs 1166.10 crore and gross sales of Rs 929.70 crore. On that day, the S&P BSE Sensex dropped 323.82 points or 1.16% to settle 27,607.82, its lowest closing level since 13 August 2015. 

Mutual funds have purchased shares worth a net Rs 1444.59 crore in this month so far (till 20 August 2015). They have purchased shares worth a net Rs 5442.10 crore last month. 

Rupee goes down fighting

At 65.54/55 per dollar 

Rupee closed lower at 65.54/55 per dollar on Thursday (20 August 2015), versus its previous close of 65.32/33 per dollar.

Asia pacific Market: Stocks extend loss after mixed signals on rate hike

The risk aversion selloff pressure in Asia Pacific share market continued on Thursday, 20 August 2015, amid heightening concerns about slowing Chinese economic growth and after release of the dovish and non-committal FOMC minutes overnight. The MSCI Asia-Pacific Index slid 1.5% to 133.97. 

Minutes from the latest Federal Reserve meeting released on Wednesday showed that conditions for a rate increase are "approaching" but not at hand. Despite improvement in various macroeconomic indicators, policymakers believed that more evidence is needed to show that inflation is moving toward goal and the job market improvement is sufficient and sustainable, before they would adopt a rate hike. Although one member preferred to hike interest rates in the July meeting, 'most judged that the conditions for policy firming had not yet been achieved, but they noted that conditions were approaching that point'. The member opting for tightening was also willing to wait for additional data to confirm a judgment to raise the target range. 

Among Asian bourses
 
Australian market tanks 1.7%
 
The Australian share market plummeted to fresh seven-month low, as risk aversion selloff triggered on tracking weak lead from Wall Street overnight. Meanwhile, selloff momentum intensified amid lingering concerns over the Chinese economy and a flurry of local corporate earnings. Except bullion, all ASX sectors ended in the sea of red, with energy, materials, financial, industrials, and technology sectors leading decliners. The benchmark S&P/ASX 200 Index stumbled 91.60 points, or 1.7%, to 5288.60 points, while the broader All Ordinaries Index tanked 84.30 points, or 1.57%, to 5295.50 points.

Nikkei falls 0.94%
 
Japanese share market declined for third straight session on tracking weak lead from Wall Street overnight and on growing concerns about a global economic slowdown. Almost all TSE sectors dived in red, with financials, banks, energy, resources, commercial & wholesale trade, and steel & nonferrous metal sectors being major loser. The Nikkei Stock Average declined 189.11 points, or 0.94%, to end at 20033.52 points. The broader Topix index ended 24.60 points, or 1.49%, lower at 1623.88 points.

China market tanks 3.42% 

Mainland China's stock market tumbled on rising concerns about capital outflows and economic growth slowdown. Meanwhile, selloff pressure intensified after the International Monetary Fund signaled that it won't add the yuan to its basket of reserve currencies for at least a year. All sectors weakened, with shares of health-care, industrial and consumer companies leading losses leading the decline. The benchmark Shanghai Composite Index closed down by 3.42%, or 129.82 points, to 3664.29 points, the lowest level since 6 August 2015. The Shenzhen Composite Index, which tracks stocks on China's second exchange, de-grew 3%, or 66.56 points, to 2155.49 points. Total volume of A shares traded in Shanghai was 39 billion shares, while Shenzhen volume was 28.37 billion shares.

Hong Kong market extends decline 
 
Hong Kong stock market ended lower for fifth straight session as risk sentiment shaken by weak lead from Wall Street overnight and steep drop in Mainland China A-share market today. The Hang Seng Index (HSI) opened down 193 points and saw its losses widen to more than 500 points at one stage. The Hang Seng Index ended down 410.38 points, or 1.77%, at 22757.47 points, taking its decline from an April 28 high to 19.5%, approaching the 20% level that signifies the start of a bear market. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, lost 239.52 points, or 2.25%, to 10402.72 points.

Sensex, Nifty hit one-week closing low
 
A broad based decline was witnessed on the Indian bourses. The weakness on the Indian bourses was due to weakness in global stocks. Banking and oil stocks led losses for key benchmark indices. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit one-week closing low. The Sensex dropped 323.82 points or 1.16% to settle 27,607.82. The Nifty shed 122.40 points or 1.44% to settle at 8,372.75. 

Metal and mining stocks edged lower on weakness in industrial metal prices in the global commodities markets. Shares of index heavyweight and cigarette major ITC edged higher on reports that a foreign brokerage has upgraded the stock to overweight from underweight. Realty stocks tumbled. 

Foreign portfolio investors (FPIs) sold shares worth a net Rs 299.35 crore into the secondary equity market yesterday, 19 August 2015, as per data from National Securities Depository (NSDL). Domestic institutional investors (DIIs) bought shares worth a net Rs 383.32 crore yesterday, 19 August 2015, as per provisional data released by the stock exchanges. 

Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.1% to 8029.81. South Korea's KOPSI declined 1.3% to 1915.55. New Zealand's NZX50 fell 0.1% to 5742.46. Singapore's Straits Times index shed 1% at 3009.78. Indonesia's Jakarta Composite index sank 0.9% to 4441.91. Malaysia's KLCI fell 0.3% to 1577.41. 

Mutual funds continue buying

Net inflow of Rs 325 crore on 19 August 2015

Mutual funds bought shares worth a net Rs 325 crore on Wednesday, 19 August 2015, compared with net inflow of Rs 207.30 crore on Tuesday, 18 August 2015. 

The net inflow of Rs 325 crore on 19 August 2015 was a result of gross purchases of Rs 1034.30 crore and gross sales of Rs 709.40 crore. On that day, the S&P BSE Sensex rose 100.10 points or 0.36% to settle at 27,931.64, its highest closing level since 14 August 2015. 

Mutual funds have purchased shares worth a net Rs 1208.19 crore in this month so far (till 19 August 2015). They have purchased shares worth a net Rs 5442.10 crore last month. 

FPIs in selling mode

Net outflow of Rs 289.82 crore on 19 August 2015 

Foreign portfolio investors (FPIs) offloaded shares worth a net Rs 289.82 crore yesterday, 19 August 2015, as per data released by the National Securities Depository (NSDL). The net outflow of Rs 289.82 crore on 19 August 2015 was a result of gross purchases of Rs 3146.47 crore and gross sales of Rs 3436.29 crore. 

There was a net outflow of Rs 299.35 crore from the secondary equity markets on 19 August 2015, which was a result of gross purchases of Rs 3133.53 crore and gross sales of Rs 3432.88 crore. The S&P BSE Sensex had risen 100.10 points or 0.36% to settle at 27,931.64 on that day, its highest closing level since 14 August 2015. 

There was a net inflow of Rs 9.53 crore into the category 'primary markets & others' on 19 August 2015, which was a result of gross purchases of Rs 12.94 crore and gross sales of Rs 3.41 crore. 

FPIs have offloaded shares worth a net Rs 984.48 crore in this month so far (till 19 August 2015). They have sold shares worth a net Rs 1113.89 crore into the secondary equity markets in this month so far (till 19 August 2015). FPIs bought shares worth a net Rs 5318.99 crore last month. They bought shares worth a net Rs 1865.19 crore from the secondary equity markets last month. 

FPIs have bought shares worth a net Rs 43415 crore in calendar year 2015 so far (till 19 August 2015). They have bought shares worth a net Rs 27096.90 crore from the secondary equity markets in calendar year 2015 so far (till 19 August 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. 

ICICI Prudential Fixed Maturity Plan – Series 69 – 1093 Days Plan F Announces Dividend

Record date for dividend is 25 August 2015

ICICI Prudential Mutual Fund has announced 25 August 2015 as the record date for declaration of dividend on the face value of Rs 10 per unit under the regular plan-dividend option of ICICI Prudential Fixed Maturity Plan – Series 69 – 1093 Days Plan F. 

The recommended rate of dividend will be Re 0.05 per unit as on the record date.

ICICI Prudential Interval Fund II - Quarterly Interval Plan A Announces Dividend

Record date for dividend is 25 August 2015 

ICICI Prudential Mutual Fund has announced 25 August 2015 as the record date for declaration of dividend under the dividend option of ICICI Prudential Interval Fund II- Quarterly Interval Plan A. 

The amount of dividend (Rs per unit) on the face value of Rs 10 per unit will be: 

Retail Dividend: 0.1602 

Regular Plan – Dividend: 0.1601 

Regular Plan - Quarterly Dividend Payout: 0.1601 

Direct Plan – Dividend: 0.1625

RBI grants “in-principle” approval to 11 Applicants for Payments Banks

The Reserve Bank of India has decided to grant “in-principle” approval to the following 11 applicants to set up payments banks under the Guidelines for Licensing of Payments Banks issued on 27 November 2014 (Guidelines). 

1.Aditya Birla Nuvo 

2.Airtel M Commerce Services 

3.Cholamandalam Distribution Services 

4.Department of Posts 

5.Fino PayTech 

6.National Securities Depository 

7.Reliance Industries 

8. Dilip Shantilal Shanghvi 

9. Vijay Shekhar Sharma 

10.Tech Mahindra 

11.Vodafone m-pesa 

Selection process 

The process for selecting the applicants has been as follows: 

First, a detailed scrutiny was undertaken by an External Advisory Committee (EAC) under the Chairmanship of Dr. Nachiket Mor, Director, Central Board of the Reserve Bank of India. The recommendations of the EAC were an input to an Internal Screening Committee (ISC), consisting of the Governor and the four Deputy Governors. This Internal Screening Committee prepared a final list of recommendations for the Committee of the Central Board (CCB), after independently scrutinising all the applications. At its meeting on 19 August 2015, the CCB went through the applications, informed by the recommendations of the EAC and the ISC, and approved the announced list of applicants. 

In arriving at the final list, the CCB noted that it would be difficult at this stage to forecast the most successful likely model in the emerging business of payments. The CCB further noted that payments banks cannot undertake lending, and therefore believed that the payments bank would not be subject to the same risks as a full service bank. Therefore, the CCB evaluated applicants to assess whether there would be unacceptable risk even to the narrower functions of a payments bank. It has selected entities with experience in different sectors and with different capabilities so that different models could be tried. It did ensure that all the selected applicants have the reach and the technological and financial strength to service hitherto excluded customers across the country. Nevertheless, the in-principle approvals are subject to the condition {(15 (v)} in the guidelines, including any developments in on-going cases. 

Going forward, the Reserve Bank intends to use the learning from this licensing round to appropriately revise the Guidelines and move to giving licences more regularly, that is, virtually “on tap”. The Reserve Bank believes that some of the entities who did not qualify in this round, could well be successful in future rounds. 

Background 

It may be recalled that on 27 August 2013, the Reserve Bank placed on its website, a policy discussion paper on Banking Structure in India – The Way Forward. One of the observations in the discussion paper was that there is a need for niche banking in India, and differentiated licensing could be a desirable step in this direction, particularly for infrastructure financing, wholesale banking and retail banking. 

Subsequently, the Committee on Comprehensive Financial Services for Small Businesses and Low Income Households (Chairman: Dr. Nachiket Mor) in its report released in January 2014 examined the issues relevant to an ubiquitous payment network and universal access to savings and recommended the licensing of payment banks to offer financial services to the hitherto excluded segments of the population. 

In the Union Budget 2014-2015 presented on 10 July 2014, the Hon'ble Finance Minister announced that: 

“After making suitable changes to current framework, a structure will be put in place for continuous authorization of universal banks in the private sector in the current financial year. RBI will create a framework for licensing small banks and other differentiated banks. Differentiated banks serving niche interests, local area banks, payment banks etc. are contemplated to meet credit and remittance needs of small businesses, unorganized sector, low income households, farmers and migrant work force”. 

Draft guidelines for licensing of payments banks were released for public comments on 17 July 2014. Based on the comments and suggestions received on the draft guidelines, final guidelines for licensing of payments banks were issued on 27 November 2014. The Reserve Bank also issued clarifications to the queries (numbering 144) on the guidelines on 01 January 2015. The Reserve Bank received 41 applications for payments banks. 

Details of “in-principle” approval 

The “in-principle” approval granted will be valid for a period of 18 months, during which time the applicants have to comply with the requirements under the Guidelines and fulfil the other conditions as may be stipulated by the Reserve Bank. 

On being satisfied that the applicants have complied with the requisite conditions laid down by it as part of “in-principle” approval, the Reserve Bank would consider granting to them a licence for commencement of banking business under Section 22(1) of the Banking Regulation Act, 1949. Until a regular licence is issued, the applicants cannot undertake any banking business. 

Additional Details 

The guidelines provided that after initial screening for prima facie eligibility, the applications would be referred to an External Advisory Committee (EAC) constituted for the purpose. Accordingly, to screen the applications, and to recommend licences only to those applicants who comply with the Guidelines, the Reserve Bank, on February 4, 2015, set up an EAC chaired by Dr. Nachiket Mor, Director, Central Board of Reserve Bank of India. EAC had three members: Ms. Roopa Kudva, former MD & CEO, CRISIL Limited, Ms. Shubhalakshmi Panse, former Chairman & Managing Director, Allahabad Bank and Dr. Deepak Phatak, Chair Professor, IIT Bombay. Later, as Ms Roopa Kudva, recused herself from the Committee the Reserve Bank, in May 2015, appointed Shri Naresh Takkar, Managing Director & Group CEO, ICRA Limited to the Committee. 

As stipulated in the Guidelines, the EAC set up its own procedures for screening the applications including calling for more information, wherever required. The applications were screened for financial soundness, i.e., five year track record of the promoter and the key entities of the promoter group. The assessment also included governance issues with a focus on ‘fit and proper' criteria for promoters based on due diligence reports and/or any other information indicating deliberate and repeated violations of law/regulations; significant Incremental contribution in terms of existing and demonstrated physical rural reach, business model innovation, technological and operational capability indicating a model that can handle the required volumes of transactions and money with a high degree of demonstrated fidelity and safety; and proposed business plan in terms of product mix, innovative technological solutions, geographic access and viable financial plan. In order to facilitate assessment of outreach and capability for handling low value high volume transactions, additional data was called for from applicants and was considered by EAC for arriving at the decisions. The EAC submitted its report on 06 July 2015. 

Asia Pacific Market: Stocks end mixed

Asia Pacific stock market ended mostly down on Wednesday, 19 August 2015, as risk sentiments dented on tracking weak lead from Wall Street overnight and on caution ahead of the Federal Reserve minutes later in the global day. The MSCI Asia-Pacific Index dropped 0.6% to 136.16. 

Wall Street shares retreated overnight, with the S&P 500 sliding 0.26% to close at 2096.92 and the Dow Jones Industrial Average falling 0.2%, to close at 17498.28, pressured by weak earnings from retail giant Wal-Mart. 

Investors risk sentiment in Asian region also weighed down by concern over growth slowdown in China. Concerns about slowing demand from China for commodities also hit copper prices, which slid to a six-year low of $4,983 a tonne, breaking the psychological $5,000 level. It last stood at $5,025.00 a tonne. 

Oil resumed falling after a brief bounce on Tuesday. Prospects of demand from the United States weakening during the upcoming autumn and a slowdown in Asia's leading economies have weighed on the commodity. U.S. crude futures were down 0.2% at $42.52 per barrel, edging back towards a six-and-a-half-year low of $41.35 struck on Friday. Brent crude was down 0.4% at $48.63 a barrel and in reach of six-and-a-half-month troughs. 

Investors are refocusing attention on the minutes of the Federal Reserve's July due later on Wednesday which will be scrutinised with extra care for any new clues on the Fed's likely timing to raise interest rates for the first time in a decade. 

Among Asian bourses
 
Australian market rebounds 1.45%
 
The Australian share market closed sharply higher, shrugging off weak offshore lead, as investors chased for bottom fishing on recently battered stocks after the market hit fresh 7-months low yesterday. Almost all sectors ended in the green, with shares of energy, financial, resources, and consumer goods companies leading advancers. The benchmark S&P/ASX 200 Index rebounded 77.10 points, or 1.45%, to 5380.20 points, while the broader All Ordinaries Index grew 70.40 points, or 1.33%, to 5379.80 points. 

Nikkei falls 1.6%
 
Japanese share market plummeted on tracking falls on the European and the US markets overnight and on caution ahead of Federal Reserve minutes later in the global day. Most of TSE sectors dived in red, with Electrical/Machinery, Transport and Retail sectors being major loser. The Nikkei Stock Average declined 331.84 points, or 1.61%, to end at 20222.63 points. The broader Topix index ended 23.74 points, or 1.42%, lower at 1648.48 points. 

Trade statistics from the Ministry of Finance released Wednesday, showing Japanese exports rose 7.6% on year on continued demand for automobiles in the U.S. and Europe as well as semiconductors in Asia, while Imports fell 3.2% on year due to lower prices for oil and gas. As a result, Japan's trade deficit was Y268.1 billion in July, shrinking from a shortfall of Y966.5 billion a year before. 

China market flips to gain
 
Mainland China's stock market ended higher after recouping intraday losses late afternoon on the back of a handful of companies' disclosure of their biggest shareholders and as the People's Bank of China (PBOC) injected more funds into the financial system in a bid to calm panicky markets. The benchmark Shanghai Composite Index closed higher by 1.23%, or 45.95 points, to 3794.11 points, after erasing intraday loss of as much as 5.1%. The gauge slumped 6.2% on Tuesday. The Shenzhen Composite Index, which tracks stocks on China's second exchange, grew 2.19%, or 47.63 points, to 2222.05 points. Total volume of A shares traded in Shanghai was 47.54 billion shares, while Shenzhen volume was 33.17 billion shares.
Locally, risk sentiments encouraged by news that the PBOC would offer selected banks new medium-term lending facility (MLF) loans in a bid to offset tightened liquidity conditions following the sharp devaluation of the yuan last week. On Tuesday, the central bank injected 120 billion yuan ($18.77 billion) into the money markets through seven-day reverse bond repurchase agreements, marking the biggest injection via open market operations since the Chinese New Year holiday in February. 

Hong Kong market ends down for fourth day
 
Hong Kong stock market declined for fourth straight session today, as risk sentiment shaken by weak lead from Wall Street overnight and growing worries that the Chinese government could scale back its rescue efforts for the markets. Risk confidence was also shaken by continued weakness in the yuan, which could lead to fresh outflows of capital from the country. The Hang Seng Index ended down 307.12 points, or 1.31%, at 23167.85 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, lost 127.81 points, or 1.19%, to 10642.24 points. Turnover soared to HK$91.8 billion from HK$80.8 billion on Tuesday.

Sensex registers modest gains
 
Pharma and IT stocks led gains for key benchmark indices. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty registered modest gains. The Sensex provisionally settled below the psychological 28,000 level, having alternately moved above and below that mark in intraday trade. Earlier, the Sensex pierced the psychological 28,000 level in mid-morning trade. The Sensex was provisionally up 109.94 points or 0.4% to 27,941.48. The CNX Nifty was up 28.60 points or 0.34% at 8,495.15. 

Foreign portfolio investors (FPIs) sold Indian shares worth a net Rs 255.42 crore yesterday, 18 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 127.50 crore yesterday, 18 August 2015, as per provisional data. 

Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 1.9% to 8021.84. South Korea's KOPSI declined 0.9% to 1939.38. New Zealand's NZX50 added 0.7% to 5750.03. Singapore's Straits Times index shed 0.3% at 3041.25. Indonesia's Jakarta Composite index sank 0.6% to 4484.24. Malaysia's KLCI rose 0.2% to 1582.44.