FII inflow crosses Rs 23000 crore in 2010

Inflow of Rs 970.60 crore on 5 April 2010 

Foreign institutional investors (FIIs) bought shares worth a net Rs 970.60 crore on Monday, 5 April 2010, lower than Rs 1484.20 crore on Thursday, 1 April 2010. 

FII inflow of Rs 970.60 crore on 5 April 2010 was a result of gross purchases Rs 2489.50 crore and gross sales Rs 1518.90 crore. There was an inflow of Rs 837.20 crore into secondary equity markets which was a result of gross purchases Rs 2356.10 crore and gross sales Rs 1518.90 crore. The BSE Sensex rose 243.06 points or 1.37% to 17,935.68 on that day. 

There was an inflow of Rs 133.40 crore in the category 'primary market & others'. 

FII inflow in April 2010 totaled Rs 2,454.70 crore (till 5 April 2010). FIIs had bought equities worth Rs 19,928.20 crore in March 2010. FII inflow in the calendar year 2010 totaled Rs 23,099.10 crore (till 5 April 2010). 

There are a total of 1,713 foreign fundsregistered with the Securities & Exchange Board of India (Sebi).

Financial News Flash

Zero Fees From India Has Investment Bankers Relying on Private Share Sales India’s best quarter for stock sales in at least six years was accompanied by a slump in fees as investment banks competed to take state-owned companies public in deals that netted them almost no revenue. 

Billionaire Brothers Malvinder, Shivinder Singh to Quit Religare's Board Religare Enterprises Ltd. said Chairman Malvinder Mohan Singh and director Shivinder Mohan Singh, the billionaire brothers who control the Indian financial services provider, are stepping down from its board. 

Temasek in Talks to Invest in GMR Group, Indian Power Companies, Wong Says Temasek Holdings Pte Ltd., the Singapore state investment company, is seeking stakes in Indian power producers including GMR Group as they double capacity to meet demand in the world’s second-fastest growing major economy. 

Geithner, Visiting India, Sees `Huge Opportunities' to Expand Partnerships U.S. Treasury Secretary Timothy F. Geithner said a new economic partnership with India offers “huge opportunities” for both nations as the world recovers from the worst recession since World War II. 

Rupee Retreats From 19-Month High on Speculation Central Bank Curbing Gain India’s rupee retreated from a 19- month high on speculation the central bank sold the currency to combat appreciation that may hurt exports. 

NTPC to Borrow $4.5 Billion to Quadruple Generation Capacity, Sharma Says NTPC Ltd., India’s biggest power producer, plans to borrow about 200 billion rupees ($4.5 billion) in the year that started April 1 as it quadruples generation capacity to help reduce blackouts in the South Asian nation. 

Most Indian Stocks Advance, Led by Bharat Heavy, Tata Steel; Wipro Falls Most Indian stocks rose amid signs strengthening economic growth will drive earnings. Tata Steel Ltd. climbed to a 21-month high after saying sales increased. Bharat Heavy Electricals Ltd. reached the highest in two years. 

Private Equity Firms Invest $2 Billion in India, Highest in Six Quarters Private equity investments in India climbed to the highest level in six quarters as a rally in equities helped stoke a revival in appetite for stakes in the nation’s companies, a study showed. 

Corporate Fraud Rises in India as Competition Increases, KPMG Study Finds Incidents of fraud in India have risen in the last two years as competition intensified, three fourths of respondents in a survey by accounting firm KPMG said. 

Ten-Year Bonds Little Changed Before Government Debt Auction This Week India’s 10-year bonds were little changed, with yields near the highest in more than a week, before a debt auction later this week. 

Euro, Greek Bonds Drop on Concern Rescue Faltering; U.S. Stocks Fluctuate The euro weakened and Greek bonds plunged as the 10-year yield premium to German debt widened to the most since the euro’s introduction a decade ago, reaching about 4 percentage points, on concern the European Union’s rescue plan for the nation may unravel. U.S. stocks fluctuated.

`Unloved' Junk Offers Best Bond Returns to Goldman Sachs: Credit Markets Speculative-grade bonds with the highest rankings may offer the best returns after trailing the riskiest debt in a record credit-market rally. 

Rise in Treasury Yields Slowed as Currency Reserves Grow Fastest Since '08 The fastest growth in global currency reserves since the credit crisis is blunting a rise in Treasury yields even as concern increases about record U.S. borrowing to finance an unprecedented budget deficit. 

Toyota Lengthens Free Maintenance, Extends No-Interest Offer After Recalls Toyota Motor Corp. is extending no- interest loans and discount leases for another month on some U.S. models and expanding an offer of two years of free maintenance to hold onto sales gains after record recalls. 

State Street Beats BlackRock to Manage $2.1 Billion in Massachusetts Funds State Street Corp. won two mandates to invest a total of $2.1 billion for Massachusetts’ public pension fund, beating BlackRock Inc. in each case. 

LBO Capital Raising Plummets 81% in Quarter From '08 Peak as Returns Slump Carlyle Group, the world’s second- largest buyout firm, needs more time to raise $3 billion. So does Chicago-based Madison Dearborn Partners LLC, even after cutting its target by 25 percent to $7.5 billion. 

Tanker Rates Sinking 35% in Estimates of Refinery Cutbacks From Idle Ships The most profitable supertanker market in more than a year is heading for a 35 percent slump as oil refineries from Japan to the U.K. shut for maintenance and leave a surplus of vessels. 

source: Bloomberg

Crude flirts around $85

Crude settles with good gains on demand hopes 

Crude oil prices ended substantially higher on Thursday, 01 April 2010 and crossed the $85 mark after a long time. Prices rose as the dollar weakened and due to positive global economic data which boosted overall sentiments. 

On Thursday, crude-oil futures for light sweet crude for May delivery closed at $84.87/barrel (higher by $1.11 or 1.3%). During intra day trading, it surpassed the $85 mark. For the month of March, crude rose 5.1%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is higher by 6.8%. 

In the currency market on Thursday, the dollar index, which measures the strength of the dollar against basket of six other currencies slipped by 0.3%. The dollar index gained about 0.7% in March and rallied 4% during the first quarter. 

Among economic reports scheduled on Thursday, news of a pleasing eurozone Purchasing Managers Index (PMI) and a restated commitment by China to loose monetary policy led the positive mood among market participants in the early going. The best ISM Manufacturing Index reading in five years also gave reason to push stocks even higher. At 59.6, the index also exceeded expectations. 

Among other economic data, construction spending for February was a sharper-than-expected 1.3%. Initial jobless claims count of 439,000 for the week ended 27 March was in-line with the consensus forecast. 

In the latest weekly inventory report, the EIA reported a day before that crude-oil inventories increased by 2.9 million barrels in the week ended 26 March, in line with market expectations. Inventories of distillates, which includes diesel and heating oil, decreased by 1.1 million barrels, also in line with expectations. Out of this, gasoline inventories increased by 300,000 barrels. 

Market had expected an increase of 2.65 million barrels in crude inventories. They also projected declines of 2 million barrels for gasoline stocks and 1.2 million barrels for distillate supplies. 

Elsewhere, natural gas ended up 22 cents, or 5.6%, to $4.086 per million British thermal units after a government report showed a smaller-than-expected rise in storage. Natural gas futures started on the red but quickly posted gains after the Energy Information Administration reported a net increase of 12 billion cubic feet for the week ended 26 March. Market had expected a rise of 14 to 18 billion cubic feet. Natural gas had lost 31% in the first quarter of the year. 

Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 45% since then. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.

Financial News Flash

Sensex Index Climbs to Two-Year High; Reliance Industries Gains on Outlook India’s benchmark stock index rose to a 25-month high after Finance Minister Pranab Mukherjee said the nation’s rate of economic growth is “impressive” and may accelerate to the fastest pace in three years. 

Oil India Has $2.5 Billion Cash Available for Acquisitions, Chairman Says Oil India Ltd., the state explorer that bid for Gulfsands Petroleum Plc, said it has more than $2.5 billion cash available for acquisitions as it seeks producing assets overseas to help boost the country’s energy security. 

Rupee Strengthens to 19-Month High as India Growth Prospects Attract Funds India’s rupee strengthened to a 19- month high after overseas investors boosted their holdings of the nation’s stocks and bonds to record levels, seeking to profit from an expanding economy and rising interest rates. 

Geithner Arrives in Delhi to Meet Prime Minister Singh: India Week Ahead U.S. Treasury Secretary Timothy F. Geithner will meet Indian Prime Minister Manmohan Singh, Finance Minister Pranab Mukherjee and other officials tomorrow in New Delhi as the two nations seek to strengthen economic ties. 

Ten-Year Government Bonds Advance on Speculation Banks Will Boost Holdings India’s 10-year bonds gained on speculation banks will increase purchases of the securities to cover rising deposits. 

CNI Chairman, Partners to Increase Stake; Not Worried About `Hostile' Bids CNI Research Ltd.’s Chairman Kishor Ostwal said he and his partners may boost their holdings and he’s not concerned that the purchase of a 6.8 percent stake by a company will lead to a takeover. 

India Oilseed Meal Exports Drop to Five-Year Low on Unprofitable Crushing India’s exports of oilseed meals fell to a five-year low after unprofitable crushing cut output. 

Copper May Top $8,000 for First Time Since Lehman Failure as Demand Rises Copper futures in London may advance to more than $8,000 a metric ton this week for the first time since the collapse of Lehman Brothers Holdings Inc. in 2008, buoyed by a revival in demand that’s more than doubled prices. 

Apple IPad Debut Sales May Be Beating Estimates, Signaling Tablet Revival Apple Inc. probably sold more than twice as many iPads in its debut weekend as some analysts estimated, an early sign that Chief Executive Officer Steve Jobs may succeed at reviving demand for tablet-style computers. 

Oil & Natural Gas Gets Credits From UN for Mumbai High Waste Heat Project Oil & Natural Gas Corp., India’s biggest energy exploration company, received 10,722 emission reduction certificates from the United Nations for a waste heat recovery project at its Mumbai High fields. 

Stocks, Commodities Rise as Jobs Report in U.S. Boosts Recovery Optimism Stocks and commodities rose, while the dollar and Treasuries fell, as growth in American jobs and service industries boosted optimism the world’s largest economy is strengthening. Ten-year Treasury yields touched 4 percent for the first time since June. 

U.S. Service Industries Grow at Fastest Pace Since May 2006, Creating Jobs Service industries expanded in March at the fastest pace since May 2006, indicating the U.S. recovery is spreading beyond manufacturing and starting to create jobs. 

Ten-Year Treasury Yield Hits 4% for First Time Since June on Growth Data Treasury 10-year notes rose to 4 percent for the first time since June as reports on the service industries and pending home sales added to signs the U.S. economic recovery is gaining traction. 

Oil Surges to Highest Level in 17 Months After Jump in U.S. Jobs in March Crude oil surged to the highest level in 17 months as growth in American jobs and service industries signaled that the economy is recovering from the worst recession since the 1930s. 

Oracle's Phillips to Leave Morgan Stanley's Board After Billboard Incident Morgan Stanley director Charles Phillips, the Oracle Corp. co-president who admitted to an affair after being displayed with an ex-girlfriend on New York billboards, won’t seek re-election to the bank’s board, a regulatory filing showed. 

Citigroup Hires Bank of America's Phillips as Technology Managing Director Citigroup Inc., the fifth-largest takeover adviser in the first quarter, hired Paul Phillips from Bank of America Corp. as managing director for global telecom, media and technology investment banking. 

Kalsi, Former Morgan Stanley Real Estate Bankers to Create Investment Firm Morgan Stanley’s former global head of real estate, Sonny Kalsi, said he’s forming an investment and advisory firm that will focus on properties in the U.S., Japan and western Europe. 

source: Bloomberg

Mutual Fund Industry AAUM falls by 4.83% in March

JP Morgan MF records highest fall 

The Average Assets Under Management (AAUM) of Mutual Fund Industry has registered a fall of 4.83% for March 2010, after recording a rise of 2.64% in February 2010. According to the data provided by the Association of Mutual Funds in India (AMFI), the AAUM of 37 fund houses (Baroda Pioneer MF AAUM is still due) stood at Rs 7.44 lakh crore in March compared with Rs 7.82 lakh crore in February 10. AAUM for March has depleted by Rs 38006.87 crore compared with a rise of Rs 20085.98 crore in February. 

Assets under management of the industry had touched an all time high of over Rs 8 lakh crore during November 2009, but failed to grow for the next successive 2 months due poor market sentiments and redemptions. But the growth in the average AUM for the month of February put the industry firmly on the growth route. However, this was short lived and AAUM again recorded a fall in March 2010. 

Of the 37 mutual funds 23 registered fall in the AAUM in March 2010 compared with February 2010 while 14 saw a rise in AAUM. There were only 2 fund houses which had seen an increase of above 1000 crore in AAUM in March. 

Among the top five fund houses based on AAUM, Reliance Mutual Fund and HDFC MF and Birla Sun Life MF faced decline while the other two fund houses witnessed increase. Reliance Mutual Fund continues to be the No. 1 fund house in terms of AAUM in March with Rs 110412.71crore, but it had a dip of 4.61% ( by Rs 5340.70 crore) over February 2010, followed by HDFC MF (fall of 6.69%) and Birla Sun Life MF (5.98%). Among the top 5 fund houses, UTI Mutual Fund gained 1.14%, followed by ICICI Prudential Mutual Fund (0.57%).

DSP BlackRock MF had witnessed the highest inflow of Rs 1557.25 crore, followed by SBI Mutual Fund (Rs 1344.82 crore), UTI Mutual Fund (Rs 907.54 crore) and ICICI Prudential Mutual Fund (Rs 461.83 crore) among others. Highest outflows were seen in HDFC Mutual Fund (6364.56), followed by Kotak Mahindra Mutual Fund (Rs 5678.36 crore), Reliance Mutual Fund (Rs 5340.70 crore) and LIC Mutual Fund (Rs 4158.37 crore) among others.

The average AUM of Peerless Mutual Fund which launched its schemes in February10 saw an impressive rise from Rs 121.10 lakh crore in February to Rs 302.60 lakh crore in March 2010. Edelweiss MF registered a rise of 34.83% m-o-m basis. Highest fall in AAUM was recorded by JP Morgan MF by 23.68%, followed by AIG Global Investment Group MF by 20.62%.