RBI Indexed bonds would hit the market on Monday (23-Dec-13), Gati FD scheme launched last week, SBI reduces home loan rates, good news for Sugar industry are some of the top news in the personal finance and investment world this week.
Whatz happening in Financial Markets?
As predicted by several Analysts last week that markets expected to raise, SENSEX gained 365 points this week and currently at 21,080.
- Top 5 Gainers are Maruthi 7%, BHEL 7%, Cipla 6%, TCS 6% and Wipro 6%
- Top 5 Losers are HDFC Bank 3.7%, Jindal Steel 3.5%, NTPC 1.2% and HDFC 0.9%.
The rupee has marginally appreciated this week against the dollar. Currently trading at Rs 62.04 / dollar compared to the previous week of Rs 62.13 / dollar.
Top Newz in the Personal finance and investment world
1) SEBI may do away with IPO Grading: SEBI is thinking to do away with an initial public offering grading to be done by companies. SEBI is expected to come out of new rules for company new public issues. There were several requests earlier from companies to SEBI in this matter.
2) GATI FD Scheme: This week Gati Limited has launched FD Scheme which indicates a interest between 11% to 12% for 1,2 and 3 year FD schemes. Annualized Yield (after compounding) works out to be 14.19% per annum for a 3 year tenure. We have given a negative view on Gati FD scheme. Hence investors should stay away from such FD schemes in current situations.
3) RBI Monetary policy – No changes: Rajan took markets for surprise on Wednesday by not changing RBI repo rate. Everyone was expecting to have rate hike due to high inflation. RBI hopes food prices may be declined in coming weeks.
4) SBI reduces home loan rates: After RBI announced that there is no repo rate hike, SBI reduced home loan rates for new borrowers and women. It offers now at 10.15% up to Rs 75 Lakhs loan and 10.30% above this limit. Earlier it offered 10.3% up to Rs 30 Lakhs home loans. We always believe SBI home loan rates are cheaper comparing to others.
5) GOI/RBI Inflation indexed national saving securities (IINSS) bonds: RBI inflation indexed bonds would hit the market on Monday i.e. 23-Dec-2013. Interest rates are 1.5% per annum + Consumer Price index and these are available for a 10 year tenure. These are beneficial for investors who believe that inflation is growing and they are getting low returns.
6) Private insurers to invest in IT and Oil sectors: Recently IRDA allowed increased exposure to one sector by private insurers when they invest money. SBI Life, HDFC Life and other private insurers are now approaching their company board to increase the stake from 15% to 20% in one sector. This way they can get better returns.
7) Relegare launches Critical Illness product “Assure”: Religare Insurance this week launched a critical illness and personal accident product 'Assure' for the retail customers. Assure offers a sum insured of up to Rs 1 Crore, the highest among currently available critical illness products, along with an annual health check-up for the insured member, at no extra cost.
8) EPFO warns firms for delaying EPF claims: EPF Office has given warning to firms and companies for delaying their employee provident fund claims. It indicated that it would take penal action against the firm if they delay the submission of forms beyond 5 days from receipt. With effective from 1st November, 2013, EFPO has automated the process of EPO claims, however it has challenges in terms of firms not responding the EPF claim confirmations.
9) NHB Tax free bonds: NHB tax free bonds would be open for subscription on 30th December, 2013. CBDT has allowed NHB to mobilise Rs 3,000 crores through tax free bonds for this fiscal year
10) Gold and Silver update: Gold prices have fallen this week by 5% while Silver prices remained constant this week for the second time. Current gold prices are at Rs 28,564 for 10 grams. Silver is at Rs 44,019 per Kilogram
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