Top Newz for this week (16-Mar-2014)
This week IIHFL Unsecured NCD opened for subscription, Shri Krishna Prasadam IPO hit market, EPFO settles 1.1 Crore claims till Feb etc. are some of the top news in the investment world and personal finance world this week.
Whatz happening in Financial Markets?
Sensex has lost 111 points this week. Currently SENSEX is at 21,809. We expect that SENSEX may show new highs in coming weeks due to the elections ahead.
- Top 5 Gainers Hero Motocorp 6%, Tata power 5%, L&T 5%, M&M 5% and HDFC Bank 3%
- Top 5 Losers Infy 9%, Sesa 8%, Tata Steel 7%, Hindalco 7%, Sun Pharma 5%
The rupee has weakened slightly this week against the dollar. Currently trading at Rs 61.19 / dollar compared to the previous week of Rs 61.09 / dollar.
Top newz in the investment and personal finance world
1) Loha Ispat IPO opened for subscription: Loha Ispat opened for subscription on 11th March, 2014. Loha Ispat is growing at 31% CAGR in last 5 years. Its issue price is between Rs 77 and Rs 80. Though the issue price looks higher, I have recommended that Loha Ispaat IPO to invest considering a few risk factors.
2) Shri Krishna Prasadam IPO: This week Shri Krishna Prasadam which is into real estate, consulting and agricultural products has come up with an IPO. Its issue price is Rs 10. However the P/E ratio is 1000, hence asking price was too high. I have advised investors to stay away from Shri Krishna Prasadam IPO.
3) Reliance launches Smart Cash Plus insurance plan: This week, Reliance Life insurance launched new traditional product called Reliance Smart Cash Plus Plan. This is a regular plan, non linked scheme offers long term protection and savings along with guaranteed lump sum payment every 3 years. We would analyse this plan in detail in coming weeks.
4) IRDA asks SBI Life to refund Rs 275 Crores to subscribers: After IRDA penalized SBI Life for mis-selling its Dhanraksha Plus plan, it has asked now to SBI Life to refund Rs 275 Crore of premium collected from policy holders. This order would benefit Lakhs of borrowers of this plan.
5) EPFO accelerates PF settlements: Upto Feb-2014, EFPO settles Rs 1.1 Crore. 97% of the settlements are done within 10 days. On a record, it settled 31% of PF claims within 3 days and balance 66% was settled in 10 days. This is a good move for employees as it speeds up PF claims.
6) Retail investors can invest upto Rs 2 Lakhs in Govt planned Public Sector ETF: This week Govt of India informed that retail investors can invest up to Rs 2 Lakhs in Public Sector ETF which it planned to launch by this month end. Earlier the limit was indicated as Rs 1 Lakh.
7) SEBI tightens money laundering norms: Intermediaries are now required to maintain records of client documents for at least 5 years after the business relationship is closed or the account is closed. SEBI has issued guidelines this week regarding this.
8) 12% IIHFL NCD opens for subscription: This week India Infoline Housing Finance Limited (IIHFL) NCD opened for subscription. It offers a 12% interest rate, however, these NCD’s are un-secured, hence investors would be taking risks by investing in such bonds. Instead, my advice is to invest in secured NCD where your money would be safe and you would still get higher returns.
9) Inflation drops below 5% in Feb-14: Finally, some good news that WPI inflation index dropped to 4.68% in Feb compared to 5.05% in Jan. Feb-14 inflation is lowest in last 9 months
10) Gold and Silver: Gold and Silver prices were stable this week. Current gold prices are at Rs 30,275 for 10 grams. Silver is at Rs 46,900 per Kilogram.
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can u review the CPSU ETF by Benchmark mutual fund and the inflation indexed bond ?
I am negative on both.
CPSU assures 5 % discount upfront and 7% bonus for NFO allotes. So, there is 12% assured yield in one year. But, at the end of one year, I am sure the NAV will be much less than Rs 10. I feel it is risky to enter the market now, at the all time high.
I am negative on inflation indexed bond due to lock in of 3 years, penalty on early redemption and redemption possible on only 2 days in a year. Th e interest is taxable every year even though not actually received.
Cann you make a detailed review. Both are closing soon and a review will be very useful.
Sure Arun. As usual, please put a request on suggest a topic. I am planning to cover majority of pending items in suggest a topic in next 2-3 weeks