Reliance US Equity Opportunities Fund Floats On

NFO period is from 03 July to 17 July 2015 

Reliance Mutual Fund has launched a new fund named as Reliance US Equity Opportunities Fund, an open ended diversified equity scheme. 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 03 July to 17 July 2015. 

The primary investment objective of Reliance US Equity Opportunities Fund is to provide long term capital appreciation to investors by primarily investing in equity and equity related securities of companies listed on recognized stock exchanges in the US and the secondary objective is to generate consistent returns by investing in debt and money market securities in India. 

The scheme offers growth plan and dividend plan (having dividend payout option & dividend re-investment option). 

The scheme shall invest 80-100% in equity and equity related instruments listed on the recognized stock exchanges in the US with medium to high risk profile and up to 20% in fixed income securities, including money market instruments, cash and equivalent, Treasury bills and fixed deposits in India 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 10 crore under the scheme during the NFO period and for every Specified Transaction Period. 

Entry load: Not applicable. 

Exit load: 1% if redeemed or switched out on or before completion of 1 year from the date of allotment of units and nil if redeemed or switched out after the completion of 1 year from the date of allotment of units 

Benchmark Index for the scheme is S&P 500 Index. 

The fund managers of the scheme are Jahnvee Shah and Anju Chajjer. 

Rupee edges higher

At 63.51/52 per dollar 

Rupee closed higher at 63.51/52 per dollar on Thursday (02 July 2015), versus its previous close of 63.6050/6150 per dollar.

Economy recovering, signs of capital investments picking up: RBI

RBI to allow Account Aggregator NBFCs; to set up Financial Inclusion Advisory Committee 

The 552nd meeting of the Central Board of Reserve Bank of India was held on 02 July 2015 at Chennai. Dr. Raghuram G. Rajan, Governor, Reserve Bank of India chaired the meeting. Besides Deputy Governors Harun R. Khan, Dr. Urjit R. Patel, R. Gandhi and S.S.Mundra of the Reserve Bank of India, the other Directors of the Central Board of the Reserve Bank present at the meeting included Y.H. Malegam, Dr. Anil Kakodkar, Kiran Karnik, Dr.Nachiket Mor, Dr. Indira Rajaraman, and Y.C.Deveshwar. 

Later addressing the press conference, the Governor stated that the Board reviewed the state of the economy. He said that the economy was recovering and there were signs of capital investments picking up. The Government was trying to put stalled projects back on track and the monsoon, thus far, was above normal. Exports were relatively weak but the weakness was seen across many countries and was more on account of global factors. The Governor said that the Reserve Bank will continue to do spade work for sustainable growth in the coming year. 

The Governor, in response to a query from media said that Greece was an evolving situation. Direct exposure to Greece for India was limited as indicated by a few reports done by the Reserve Bank. Given, the risk of sentiments of global investors changing, there might be initial burst of volatility in financial markets, if there are untoward developments in Greece, after which discerning investors will be able to distinguish the India's story which is of growth and stability. He also indicated that "Our macro policies were good and we had enough buffers, including foreign exchange reserves to protect against any possible eventuality". 

The Governor also announced that the Reserve Bank will put in place a regulatory framework to allow a new kind of Non-Banking Finance Company (NBFC), which could act as an account aggregator to enable the common man to see all his accounts across financial institutions in a common format. The idea of such an NBFC had emanated from the Financial Stability and Development Council (FSDC). 

Deputy Governor S.S. Mundra then briefed the media and stated that the Reserve Bank proposes to recommence the Financial Inclusion Advisory Committee (FIAC) to take the financial inclusion agenda forward. He said that the work on financial inclusion was far from complete and a road map needs to be laid out, as the Prime Minister indicated at the Reserve Bank's 80th Anniversary celebrations, to take the agenda forward now. This has also assumed critical importance following the massive efforts made for opening of bank accounts under the Prime Minister's Jan Dhan Yojana (PMJDY) with focus on Jan Dhan accounts, Aadhar identity and Mobile phones (JAM). The Reserve Bank would request all financial sector regulators as also the Government, some Self-Regulatory Organisations, Research Organisations, Unique Identification Authority of India (UIDAI), National Payments Corporation of India (NPCI) and such other stake holders for nomination. He stated that as an input to the FIAC, the Reserve Bank will set up an Internal Group with the concerned departments to prepare a blue print for financial inclusion for the next five to ten years identifying ways to integrate resources available with all financial institutions in achieving the goals for financial inclusion. 

Deputy Governor Harun R Khan highlighted the measures being taken to move towards less-cash less-paper based payment system, with focus on creating more acceptance infrastructure for the huge numbers of plastic cards issued by banks and upscaling mobile banking. 

The Board also discussed the draft Annual Report for 2014-15. The Annual Report of the Reserve Bank gives an account of what was planned in the past year, what was achieved and what was not, as also, what the Reserve Bank proposed to do in the coming year.

Asia Pacific Market: Stocks rise for second day

Asia Pacific share market advanced on Thursday, 2 July 2015, echoing strong rally on the Wall Street overnight, on hopes a deal will eventually be struck to keep Greece in the Eurozone. 

A positive stock session for Wall Street overnight after better than expected ADP employment and manufacturing survey seemed to help lift spirits in the regional market. 

U.S. employers added 237,000 workers in June, beating the 218,000 expected by economists, ADP Research Institute reported. The Institute for Supply Management's factory index increased to 53.5 in June from 52.8 in May, higher than the 53.2 expected. 

Investors are broadly upbeat on the prospects for Greece, despite Tuesday's default, after Athens offered fresh concessions to reach a compromise. While creditors dismissed the offer - which had been presented just before it defaulted - it provided a glimmer of hope that an agreement could be found. However, European leaders said they will wait after the Sunday poll, which they have cast as effectively an in/out vote on Greece's eurozone future. 

Among Asian bourses
 
Nikkei climbs to near one-week high
 
Japanese share market finished higher for third straight session, as buyers pile into stocks on tracking the strong finish on Wall Street overnight, yen depreciation against basket of major currencies, and upbeat domestic economic data. However, lingering uncertainty over Greece's debt situation capped gains. The Nikkei Stock Average advanced 193.18 points, or 0.95%, to finish at 20522.50. The Topix index of all Tokyo Stock Exchange First Section issues jumped 0.72%, or 11.83 points, to close at 1648.24. 

Shares of export-related stocks advanced after the yen weakening for a second day, last quoted at 123.41 against US dollar today. A weaker yen is positive for Japanese exporters as it makes products cheaper overseas and improves their profits when repatriated. Car audio-equipment maker Alpine Electronics, which relies on North America for 37% of sales, strengthened 2.4%. Shimano Inc, a bicycle-parts maker that gets 87% of revenue abroad, added 2.1%. Nissan Motor Corp rallied 2.7% to 1300 yen and Honda Motor Co soared 3.5% to 4039 yen after strong showing in U.S. sales for the month of June. Meanwhile, T&D Holdings Inc jumped 2.7% to 1889 yen and Dai-ichi Life Insurance Inc rose 2.3% to 2502 yen. 

Sharp Corp escalated 8.6% to 164 yen after Standard & Poor's decision to remove its selective-default designation for the electronics maker. 

The Bank of Japan said on Thursday that Japan's monetary base climbed 34.2% YoY to 325.047 trillion yen in June. That followed the 35.6% spike in May. Banknotes in circulation added an annual 4.7%, while coins in circulation gained 0.7%. Current account balances surged 53.0% on year, including a 53.9% jump in reserve balances. The adjusted monetary base climbed 17.0% on year. 

Australia stocks maintain gains
 
The Australian share market advanced for third consecutive day, as risk sentiments boosted by tracking strong finish on Wall Street overnight. But, weaker than expected May trade data and lingering uncertainty over Greece's debt situation capped gains. All ASX sectors closed higher, with shares of financial, retailers, consumer goods, and civil aviation companies being major gainers. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each jumped by 1.5% to 5599.80 and 5587.90, respectively. 

Banks and financial stocks continued uptrend for third straight day, with Australia & New Zealand Banking Group rising 1.3% to A$32.91 and Westpac Banking Corp adding 2% to A$33.01, meanwhile National Australia Bank climbed up 1.7% to A$34.04 and Commonwealth Bank of Australia jumped 1.7% to A$87.45. Challenger climbed 2.7%to A$6.97 after announcing that it sold its 25% stake in Kapstream Capital to Janus Capital Group for approximately A$34.36 million. 

Likewise, shares of retailers and consumer goods manufacturers were also higher. Myer Holdings rose 2.4% to A$1.28, James Hardie Industries climbed up 2.9% to A$18.36, and Brambles added 2.1% to A$10.95. Pacific Brands surged 50.8% to A$0.49 after raising its profit outlook for the financial year that ended June 2015, and fellow apparel name Billabong International added 2.6% to A$0.59. 

BlueScope Steel rallied 25.6% to A$3.68 amid the prospect of cheaper ore and as Ausbil Investment Management raised its stake in the company. 

Kathmandu Holdings dropped 0.3% to A$1.53 after the outdoor clothing and equipment retailer urged its shareholders to take no action on the takeover proposal from New Zealand retailer Briscoe Group. 

Australia's posted a seasonally adjusted trade deficit of A$2.75 billion, compared with a record A$4.14 billion deficit in April, according to the Australian Bureau of Statistics data released on Thursday. Imports fell by 4% to A$28.28 billion in May from April while exports overall rose by 1% to A$25.53 billion. 

China stocks plunge over 3% 
 
China's stock market plummeted for second straight day, as investors brushed off the latest measures to temper a sell-off that has put the index into bear territory. The Shanghai Composite Index declined 140.93 points, or 3.48%, to end at 3912.77. The Shenzhen Component Index dipped 5.32% to close at 12924.19. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 3.99% to end at 2649.32. The gauge has tumbled 24% from its June 12 peak, helping wipe out at least $2.4 trillion of value. 

Margin traders continued to unwind positions amid doubts over the effectiveness of government measures to support equities. Several favorable policies were rolled out on late Wednesday in response to the plunging stock market. The two exchanges, and China Securities Depository and Clearing Company announced that transaction fees and transfer fees were to be reduced on the Shanghai and Shenzhen stock exchanges. China Securities Regulatory Commission (CSRC), the securities watchdog, announced that stock brokerages were allowed to issue bonds to widen funding channels. The previously strict rules on margin trading business of brokerages were also relaxed by the CSRC. 

The latest policy steps announced after bigger-than-expected easing package over the weekend, where the People's Bank of China (PBOC) cut the benchmark one-year lending and deposit rates by 25 basis points, and reduced the RRR by 50 basis points. An official draft guideline on Monday gave pension funds the nod to invest in the stock market. 

Shares of utility, technology and commodity companies declined the most in Beijing. Huaneng Power International Inc., China Eastern Airlines Corp. and Searainbow Holding Corp. all tumbled by the 10% daily limit. Guotai Junan Securities Co fell 9.8%. 

Industrial and insurer stocks were also down. Baoshan Iron & Steel dived 8.73% to 7.63 yuan while Gansu Jiu Steel Group Hongxing Iron & Steel slumped by its 10% daily limit to 5.47 yuan. New China Life Insurance fell 5.85% to 53.41 yuan while China Pacific Insurance gave up 2.77% to 27.72 yuan. 

Hong Kong stocks up in volatile trade
 
The Hong Kong stock market ended higher after a roller-coaster ride, on tracking cues from global equity markets. The benchmark index opened 209 points higher following rally of overseas markets as Greece's referendum will be held as scheduled. But the mainland China market continued its slide despite the government issuing a flurry of measures, hurting local sentiment. The Hang Seng Index advanced 32.29 points or 0.12% to finish at 26282.32 points, after returning from a public holiday on Wednesday. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, dropped 196.58 points, or 1.51%, to 12784.65 points. Turnover reduced slightly to HK$150.8 billion from HK$156 billion on Tuesday. 

Macau gaming stocks surged after the city posted better-than-expected gambling revenues in June, although they were still down 36% from a year ago. Also, buying was spirited after Macau relaxed its transit visa restrictions for China tourists, starting 1 July, the duration of stay for transit visas increases to 7 days from 5 days. Galaxy Ent (00027) jumped 13.3% to HK$35. Sands China (01928) shot up 12% to HK$29.25. MGM China (02282) and Wynn Macau (01128) gained 16% and 14% to HK$14.7 and HK$14.72 respectively. 

Sensex closes lower in late sell-off
 
Indian stock market closed down in volatile trade, as cautious investors preferred to reduce their positions in blue-chip stocks after two sessions of gains. As per provisional closing, the S&P BSE Sensex was down 79.38 points or 0.28% to 27,941.49. The CNX Nifty was down 11.35 points or 0.13% at 8,441.70. 

Reserve Bank of India Governor Raghuram Rajan reportedly said today, 2 July 2015, that India's economy is in the process of a steady recovery and that the government needs to work on reforms to accelerate growth further. 

Foreign portfolio investors bought Indian shares worth a net Rs 75.03 crore yesterday, 1 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 52.12 crore yesterday, 1 July 2015, as per provisional data released by the stock exchanges. 

Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.04% to 9379.24. South Korea's KOSPI added 0.5% to 2107.33. New Zealand's NZX50 climbed up 0.8% to 5841.47. Singapore's Straits Times index fell 0.1% at 3327.84. Indonesia's Jakarta Composite index rose 0.8% to 4944.78. Malaysia's KLCI jumped 0.3% to 1733.88. 

FPIs turn buyers

Net purchases of Rs 95.32 crore on 1 July 2015 

Foreign portfolio investors (FPIs) bought shares worth a net Rs 95.32 crore on Wednesday, 1 July 2015, compared with their net outflow of Rs 495.44 crore during the preceding trading session on Tuesday, 30 June 2015. 

The net inflow of Rs 95.32 crore on 1 July 2015 was a result of gross purchases of Rs 4416.93 crore and gross sales of Rs 4321.61 crore. There was a net inflow of Rs 95.41 crore into the secondary equity market on 1 July 2015 which was a result of gross purchases of Rs 4416.93 crore and gross sales of Rs 4321.52 crore. The S&P BSE Sensex garnered 240.04 points or 0.86% to settle at 28,020.87 on that day, its highest closing level since 17 April 2015. 

There was a net outflow of Rs 0.09 crore from the category 'primary market & others' on 1 July 2015. 

FPIs have sold shares worth a net Rs 3344.44 crore last month. They have sold shares worth a net Rs 4634.53 crore into the secondary equity markets last month. 

FPIs have bought shares worth a net Rs 38680.51 crore in calendar year 2015 so far (till 1 July 2015). They have bought shares worth a net Rs 25946.01 crore from the secondary equity markets in calendar year 2015 so far (till 1 July 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.