Top Newz in this week (3-Nov-13)
I wish all readers a Happy Diwali. May this diwali bring lot of happiness and prosperity to you.
There are several special news in this week. With RBI monetary policy changes, FD rates are expected to rise. ICICI Pru life new fund value fund could be one more blockbuster like ICICI Pru discovery fund. LIC has indicated that 4 of its insurance products now available only for a limited period.
Whatz happening in Financial Markets?
The Stock market SENSEX has gained 514 points this week and SENSEX currently is at 21197 levels.
- Top 5 Gainers are ICICI -10%, SBI-9.4%, Maruti Suzuki-8.6%, M&M and Bharti by 6.6%.
- Top 5 Losers are ITC-3.3%, Infosys-1.6% and Sun Pharma-1%
The rupee has weakened slightly this week against the dollar. Currently trading at Rs 61.74 / Dollar comparing to previous week of Rs 61.46 / Dollar.
Top Newz in the investment world in India
1) RBI Second Quarter Monetary policy review: RBI Governor Raghuraman Rajan has intensified his war against inflation. In the RBI monetary policy review, RBI has increased the repo rate by 0.25% and it would be at 7.75%. MSF has been cut down to 8.75%, thereby maintaining a difference of 100 basis points between the repo rate and MSF rate. Currently Consumer Inflation Index (CII) is above 9.5%, hence current bank interest rates are not sufficient for individuals to cope up with inflation. With these monetary changes, the RBI expects that bank FD rates may get increased for short term.
2) The supreme Court directs the Sahara group to submit documents for Rs 20,000 Crore of properties: Supreme Court directed the Sahara group to hand over the title deeds of its properties for Rs 20,000 Crores to SEBI. Supreme Court also asked it to give valuation reports of such properties to SEBI which would verify the worth of the assets. There are several investors for whom the Sahara group has to repay the fixed deposits which were procured from general public few years back.
3) SEBI think issuing convertibles to safeguard small investors: SEBI is thinking of allowing companies to issue convertible debentures along with the issuance of equity shares during the IPO. Several companies have come back stating the issues related to safety nets and practicle problems during its implementation.
4) ICICI Pru life Value Fund: ICICI Pru Life has launched a close ended fund called Value fund NFO two weeks back and has mixed reaction from investors. This works similar to ICICI Pru Discovery fund, however focuses on 25-30 stocks. With the success of ICICI Pru Discovery strategy to encash low hanging high value stocks, several analysts felt this as worth investing with some risk. Since this is a close ended scheme, you need to invest a lump sum and cannot be invested through SIP.
5) Rise in employment in India: Several MNC and IT companies in India are asking their employees to cut-down their leaves and removing hiring freeze during Oct to Dec-13. During this season, the majority of the client side managers would go on Christmas vacation. This is a common practice every year. However to the contrary, this year, instead of asking their Indian vendors to go on leave, they are asking them to cancel leaves. They also lifted mandatory leaves or furlough for Nov and December. Hiring may continue without any special freeze during this period for several companies.
6) LIC would close down 4 insurance products: This week LIC has indicated that 4 of its special insurance plans, LIC Jeevan Anand, LIC Jeevan Tarang and LIC Jeevan Saral and LIC Bima Bachat insurance plans would be available for limited period only.
7) Gold / Silver: Since it is festival season, Gold and Silver prices have increased marginally. This week gold prices have increased by 1% and silver prices by 1.42%. Current gold prices are at Rs 29,800 for 10 grams. Silver is at Rs 48,700 per Kilogram.
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