Top Newz in this week (15-Dec-13)
IIFL home bonds hit the market this week, Investors dumping money into mutual funds, Tentiwal IPO issue this week, IIFCL tax free bond issue this week, S&P upgrades ratings for TCS, Infy and Wipro etc. are some of the top news in the investment world this week.
Whatz happening in Financial Markets?
- After hitting a 5 year high on Monday (9-Dec-13), the SENSEX has lost 281 points this week and is currently at 20,715 levels. Analysts predict that SENSEX can now move to new highs and cross 24K mark in next 3 to 6 months.
- Top 5 Gainers are Wipro 5%, Sterlite 5%, Infosys 1.5%, HDFC Bank 1.2% and ITC 1.1%
- Top 5 Losers are BHEL 9.6%, Jindal Steel 8.4%, NTPC 7.6%, SBI 6.4% and Tata motors 5.3%.
- The rupee has depreciated this week against the dollar. Currently trading at Rs 62.13 / dollar compared to previous week of Rs 61.41 / dollar.
Top Newz in the investment world
1) 12.15% IIFL Home bonds: With monthly interest option feature, IIFL home bonds have hit the market this week. It opened for subscription on 12-Dec-13 and would get closed on 20-Dec-13. These bonds are secured in nature and with 5 year tenure. Crisil and Care have rated them as AA-.
2) SENSEX touches 5 year high at 21326: After 5 years, SENSEX touched a 5 year high on Monday (9-Dec-13) and reached at 21326. However it could not sustain at this level. It is now at 20,715 during the closure of this week.
3) Investors dumping money into Mutual funds: AMFI released the mutual fund Nov AUM data which indicate that investors are dumping money into mutual funds. It indicates that there is a 7 % increase in AUM. Primarily these monies are invested in money market funds / liquid funds. Currently the AUM of all mutual funds stands at Rs 8.9 Trillion.
4) SEBI panel recommends stricter Insider trading norms: SEBI panel this week has recommended reforms into insider trading. It advices for stricter norms and proposes to put the onus of disclosure on the inside to provide that they have not breached the law. This applies to all Mutual funds also and they need to declare the holding details including employees and third party connected persons.
5) FII’s love under performed Large cap stocks : Many foreign stock brokers are recommending their investors and FII’s to invest in under performed large cap stocks in India. These have now become favorite stocks to FII’s. Stocks like ONGC, Bharti Airtel, Coal India, Reliance Industries have been under performing compared to SENSEX in the last few years. FII’s stake is slowly increasing in such stocks.
6) Tentiwal Wire products IPO: This week Tentiwal Wire products Ltd has come up with IPO. The issue price is Rs 13 and the minimum investment is Rs 130,000. Since the issue price is highly priced and due to low margins, we have recommended investors to avoid this IPO.
7) IIFCL Tax free bonds: IIFCL tax free bonds have hit the market this week on Monday i.e. 9-Dec-13. The interest rate is 8.91% for 20 year bond and these are available for 10, 15 and 20 years tenure period. The interest rates are similar to NTPC tax free bonds which are issued last week.
8) S&P upgrades ratings for Top-3 Indian IT companies: S&P has upgraded long term credit rating of top-3 Indian IT companies this week. While India rating remained constant at BBB-, TCS rating has been upgraded from BBB+ to A, Infy and Wipro rating upgraded from BBB+ to A-. Due to this positive movement, such stock prices are expected to go up next week.
9) Sensex crashes on Friday on fear of rate hike: Sensex crashed 210 points on Friday due to fear of expected RBI rate hike in monitery policy review which is expected on 18-Dec-13. We may expect fall in SENSEX on Monday and Tuesday.
10) Gold and Silver prices fall: Gold prices have recovered this week by 4% while Silver prices remained constant this week. Current gold prices are at Rs 30,150 for 10 grams. Silver is at Rs 44,000 per Kilogram
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