Top Newz for this week (2-Feb-2014)
IREDA Tax free bonds, RBI increase Repo rate, Agrimony IPO, Innovation fund finally take off, UTI launches Bank and PSUI debt fund, PAN card allotments new norms under hold etc. are some of the top news in the investment world and personal finance world in India.
Whatz happening in Financial Markets?
Sensex has lost 619 points this week. Currently SENSEX is at 20,514.
- Top 5 Gainers are BHEL 4%, Gail 2.6%, HUL 0.8% Bharti 0.6% and M&M 0.6%
- Top 5 Losers Maruthi 8%, Sesa Sterile 7%, HDFC Bank 7%, ICICI Bank 6% and SBI 6%
Rupee has marginally appreciated this week against the dollar. Currently trading at Rs 62.66 / dollar compared to the previous week of Rs 62.69 / dollar.
Top newz in the investment and personal finance world
1) IREDA Tax Free bonds: Indian Renewable Energy Development Agency (IREDA) is planning to offer tax free bonds for Rs 1,000 Crores. It filed DRHP with SEBI and expects the approval any time. Due to high interest rates offered by tax free bonds, these have become high demand in the market. IREDA tax free bonds are AAA rated bonds. We would cover our analysis as soon as SEBI approves it.
2) Airline cuts fares: Last week Spicejet has reduced its airfares. This week Spicejet has again reduced the airfares up to 30% of all domestic airfare tickets. Other competitors like Jet Airways, Indigo and Air India are planning to review the airfares and are expected to come-up with discounts this week.
3) Agrimony Commodities IPO: Commodities trading company, Agrimony Commodities IPO has hit the market this week. The offer price is Rs 10. Since the revenues are inconsistent and low margins, investors should be more cautious before investing in such SME IPO.
4) RBI increases Repo rate: Rajan raised RBI Repo rate by 25 basis points to reduce inflation and as part of measures to arrest the fall of Rupee value. Repo rate, the rate at which banks borrow money from RBI has been increased by 25 basis points, i.e. 0.25% and currently it is increased to 8%. Reverse Repo rate i.e. the rate at which RBI borrows money from banks was also raised by 25 basis points to 7%.
5) DSP BR Dynamic Asset Allocation Fund NFO closes: A unique scheme offered by DSP BR is Dynamic Asset Allocation Fund. This is fund of fund which allocates portfolio in equity and debt based on yield gap concept. This NFO closed on 31st January, 2014.
6) Innovation Fund finally takes off: After 3 years of announcing, finally Govt of India launched India Inclusive Innovation Fund ((IIIF) this week with initial corpus of Rs 500 Crores. Ministry of Small and Medium enterprise would provide up to Rs 100 Crores and balance comes from banks and overseas financial investors. This fund would be registered under SEBI alternative investor fund category which will invest in innovative ventures that are scalable, sustainable and profitable, but address social needs to cater sectors like healthcare, food, nutrition, Agriculture and Education.
7) UTI MF launches Bank and PSU Debt fund: UTI MF launches NFO in the bank and PSU debt. This is an open ended scheme which aims for low risk and a high level of liquidity from a portfolio of debt and money market securities from banks and PSU. This NFO opens for subscription from 30th January, 2014.
8) Gold restrictions on import would continue till Mar-2014: Finance minister has stressed that the restrictions kept on gold import would continue till this financial year end. Jewelers and Traders were expecting that FM would soon announce lowering of import barriers and rollback of high import duty.
9) New PAN card allotment norms under HOLD: Without any reason Central Board of Direct Taxes has now put new PAN card allotment norms on hold. Earlier it announced that if anyone applying for PAN has to show original documents for address and identify proof w.e.f 3rd February, 2014. With this move, anyone applying for new PAN card can continue to apply without any proofs to be submitted.
10) Gold and Silver: Gold prices were stable this week. However, Silver prices have lost by 2.9% this week. Current gold prices are at Rs 30,000 for 10 grams. Silver is at Rs 44,800 per Kilogram.
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Top Newz in this week
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- 8.75% IIFL Finance NCD – Sep-2021 issue – Should you subscribe? - September 25, 2021
- Goal-Based Investing – How to evaluate and implement financial goals? - September 24, 2021