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Birla Mutual Fund has introduced exit load of 2% on Birla Dynamic Bond Fund an open ended income scheme, on redemptions within 180 days from date of allotment to discourage redemption pressure for lesser assets churning. This new load structure will be applicable on all investments made on or after June 4, 2008. The fund house earlier was charging 0.2% exit load for redemption within 30 days of allotment. However, entry load will be nil as it was earlier.

ICICI Prudential asset management company (AMC) has announced changes in the exit load structure of its recently launched open-ended equity diversified scheme, ICICI Prudential Focused Equity Fund. As per the announcement, for investment amount below Rs. 5 crore, the scheme will charge an exit load of 1 per cent if the units under the scheme are redeemed or switched out within 6-months from the date of allotment, and if the units allotted are redeemed or switched out within 1-year then the scheme will charge an exit load of 0.5 per cent. However, the scheme will not charge any exit load if the units allotted are redeemed after 1-year or if the investment amount is above Rs. 5 crore.

Quantum Mutual Fund has announced to launch its second equity offering, Quantum Index Fund. The scheme will be an open-ended exchange traded fund. The principal investment objective of the scheme is to invest in stocks of the companies comprising the S&P CNX Nifty Index and endeavour to achieve return equivalent to S & P CNX Nifty by “passive” investment. As per the stated asset allocation, the scheme will invest predominantly in companies that constitute the S & P CNX Nifty and / or Nifty futures. The investment would be done in almost all the fifty stocks of Nifty in approximately the same weightages as they represent in the Nifty Index. However, to meet the liquidity requirements, a small allocation of funds would be done to money market instruments, short-term debt instruments, securitized debt instruments and liquid schemes of mutual funds. Furthermore, the scheme will allocate 90-100% of its net assets to stocks comprising the Nifty Index and the remaining in money market instruments and other short-term debt instruments. Investments in securitized debt instruments can be made by the scheme up to 5% of the total fund size of the scheme. The new fund offer is open for subscription from June 9, 2008 to June 20, 2008. The scheme is benchmarked against S & P CNX Nifty and will be managed by the fund manager Mr. Hitendra Parekh.

SEBI on Thursday passed its first consent orders in the IPO case. Twelve financiers named by the regulator as involved in the scam coughed up over Rs 71 crore towards disgorgement and penalty to have proceedings against them dropped under consent terms. [Read more →]

In what could blow up into a major stock market scam, a couple from Mumbai, has allegedly raised close to Rs 100 crore from investors and indulged in circular trading to the tune of close to Rs 10,000 crore over the past year. The couple are now absconding and the role of brokerages is under the scanner. [Read more →]

Rahul Mohindar of viratechindia.com is of the view that DLF can see Rs 460-470 level.Mohindar told CNBC-TV18, “On the real estate side too we have been bearish on it, we have been putting outsells on it for some time now. DLF if we look at it particularly, we might see some support around Rs 500 to Rs 505 that is going to be a minor support because it is a kind of number barrier so to say. But I think where we are possibly heading is somewhere around Rs 460-470 and I would identify that point as a very good investment opportunity. That is a place where you can at least get in 50% of your proposed investment into the stock.” Disclosure: It is safe to assume that analyst & his clients may have an investment interest in the stocks /sectors discussed.

Rahul Mohindar of viratechindia.com said the markets, at higher levels, are constantly seeing a rapid sell-off. “The kind of fall that we saw in the last one-hour was quite sudden and savage. The resistances are really holding tight in this market. The sentiment still is largely negative. I would say the charts still point to a downward move. Yesterday, we broke a key level of 15,400 on the Sensex. If we keep nudging that level on the Sensex, we are heading down a good 800-900 points again. At the same time, 4,770  is a very important resistance for the Nifty. So, we need to really clear that at least with good volume or even on a closing basis to even come into some kind of a sanity of a sideways price action. Until that happens, my takeaway is clearly bearish from this market’s close.”

Amitabh Chakraborty from Religare Securities sees more weakness in the market going forward. According to him, value lies in the midcap sector. For the real estate sector, Chakraborty said, “As it is expected that interest rates will go up and the CRR hike also would probably happen, in that environment real estate cannot do well.” In case of technology he feels that it’s all because of the rupee and because the rupee fell the technology stocks have been bought. Chakraborty said, “The point is that at least in Religare we are telling to be in cash. Do not invest because the market is going down and we’ll go down. So, it looks like we are seeing the first signs that the long only or quality funds have started selling in the market.”

The markets got off to a volatile start, seesawing wildly. However, selling pressure in late trade dented sentiment further and sent the indices tumbling into the red. The Nifty closed at 4,628 down 49 points, while the Sensex shut shop at 15,572 down 198 points. [Read more →]

The markets have bounced back in the opening trade and recovered yesterdays losses to some extent on the back of buying in capital goods, banking, telecom and power stocks. Market breadth is positive. Midcap and small cap stocks also got strong. The Indian Rupee was trading at 42.86 per dollar. On the global front, Asian markets were trading mixed. [Read more →]