mint

Mutual funds garner Rs.24,000 cr from investors in August

During fiscal 2013-14 so far, MFs net mobilization stood at Rs.69,252 cr as compared to Rs.1,53,781 cr a year ago

 

First Published: Wed, Oct 02 2013. 08 08 PM IST

At gross level, mutual funds mobilized Rs8.05 trillion in August, but also witnessed redemption worth Rs7.81 trillion—resulting into a net outflow of Rs23,713 crore. Photo: Mint

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New Delhi: Investors have put in nearly Rs.24,000 crore in various mutual funds (MFs) in August after pulling out money from such schemes in the preceding two months. The huge inflows of funds during August followed a net withdrawal of Rs.50,067 crore in the preceding month, taking the total outflows for two consecutive months to close to Rs.1 trillion.

As per the latest data available with market regulator Securities and Exchange Board of India (Sebi), investors have pumped in a net amount of Rs.23,713 crore in August in various MF schemes. This takes the MFs’ net mobilization of funds from investors so far in the current fiscal (April-August) at about Rs.69,252 crore.

Mutual fund is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets.

At gross level, mutual funds mobilized Rs.8.05 trillion in August, but also witnessed redemption worth Rs.7.81 trillion—resulting into a net outflow of Rs.23,713 crore. This significant level of fund mobilization has also helped the total asset under management of mutual funds to grow to Rs.7.66 trillion as on 31 August 2013.

“During the financial year 2013-14 so far, mutual funds’ net mobilization stood at Rs.69,252 crore as compared to Rs.1,53,781 crore mobilized in corresponding period of 2012-13,” Sebi said.

Meanwhile, the benchmark BSE Sensex, plunged by 726 points, or 3.75%, during the period under review.

nagesh dubey
pgdm 1st

finance tata

Tata Motors rides to lifetime high; Deutsche Bank upgrades stock to ‘buy’

By ECONOMICTIMES.COM | 4 Oct, 2013, 10.43AM IST

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READ MORE ON » The View | Tata Motors stock | Tata Motors sales | Tata Motors Ltd | Tata Motors | Rupee | Jaguar

Analysts at top global brokerage firms have largely maintained their ‘BUY’ rating on Tata Motors citing improvement in global macros and robust sales from its UK-s

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NEW DELHI: Tata Motors LtdBSE 4.41 % rallied as much as 5.7 per cent in morning trade on Friday to hit its lifetime high of Rs 364.70 on the Bombay stock Exchange. Tracking the momentum, the stock has also crossed Rs 1 lakh crore market cap mark.

At 10:00 a.m.; Tata MotorsBSE 4.41 % pared some of the morning gains and was trading 4.6 per cent higher at Rs 360.70. It has hit a low of Rs 344.10 and a lifetime high of Rs 364.70.

The stock has been in an uptrend so far in the year 2013, supported by robust sales from its UK subsidiary. Shares have rallied a little over 10 per cent as compared to 0.58 fall in the BSE Auto index, as of data collected on 3 October.

Analysts at top global brokerage firms have largely maintained their 'BUY' rating on Tata Motors citing improvement in global macros and robust sales from its UK-subsidiary.

Analysts are of the view that Tata Motors is likely to benefit from strong volume growth at its Jaguar Land River unit, especially in China, which should offset declining sales in its domestic market.

Out of five brokerages which maintain their positive bias on the stock, atleast two of them see the stock crossing 400 levels in next 12-months.

After Goldman Sachs, the recent one to recommend Rs 400+ target price for the global auto giant is Deutsche Bank. The global investment bank has also upgraded the stock to 'buy' with a target price of Rs 400.

A 25 per cent increase in valuation, in line with the expansion in valuation multiples for automotive peers reflecting the improvement in global macro. China and the US, which account for 45% of Jaguar LandRover's volumes, have been particularly robust.

The global investment bank says that our target price implies FY15E EV/EBITDA of 7.5x for India business and 3.8x for JLR. The valuation for JLR is in line with BMW (3.5x CY14E), adjusting for differences in R&D accounting.

Deutsche China economist Jun Ma is increasingly constructive on China GDP which should help JLR to post better volumes in near future. He projects 8.6%/8.2% GDP growth for CY14E/CY15E.

"For JLR, we forecast FY14E/FY15E/FY16E volumes at 420K/462K/538K, implying a three-year CAGR of 13%. YTD, JLR volumes have grown 17%, driven by the US (20%) and China (22%)," added the Deutsche Bank report.

Most analysts remain positive on Tata Motors, as they expect volumes to remain healthy on the JLR front and weak rupee should be able to aid margins. However, the domestic business is likely to remain under some nit of pressure.

Deutsche Bank expects TAMO (parent) to generate an EBITDA of Rs 47 bn in FY16E, which would be in line with its previous peak in FY11. While the car and UV businesses are likely to remain under pressure, we expect a revival for CVs in FY15E, said the global investment bank.

nagesh dubey

pgdm1st

rupee gain 20 paise vs dollar

Rupee gains 20 paise vs dollar, Sensex up 126 points

Dealers said besides increased dollar selling by exporters, a higher opening in domestic equity market and dollar's weakening against some currencies overseas helped the rupee rise.

PTI | Sep 6, 2013, 09.44AM IST

MUMBAI: The rupee on Friday strengthened further by 20 paise to 65.81 against the dollar in early trade, largely supported by recent RBI measures. Meanwhile, the BSE benchmark index Sensex rose by 126.10 points, or 0.66 per cent, to 19,105.86 in opening trade.

The domestic currency had gained 106 paise to close at 66.01 yesterday against the dollar after steps taken by new RBI governor Raghnuram Rajan to attract US currency inflows.

To support the rupee, RBI announced steps such as enhanced limits for exporters to re-book cancelled forward exchange contracts and a special concessional window to swap foreign currency non-resident (FCNR) deposits.

                                                                      nagesh dubey
                                                                      pgdm 1st

rupee may gain this week

Rupee may gain this week on FM P Chidambaram's pep-talk

PTI Aug 25, 2013, 08.31PM IST

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(Chidambaram and ministry…)

MUMBAI: The rupee, which rebounded by a massive 135 paise last Friday, may continue to gain this week as investors hope government and Reserve Bank will make more efforts to stabilise the market, say treasury heads of banks.
The domestic currency, which touched an intra-day low of 65.56 on August 22 on fear that the US Fed was on course to taper off its monthly asset purchase programme, recovered sharply on August 23 to end at 63.20 after the pep-talk by the finance minister on CAD and fiscal deficit. So far this fiscal, rupee has lost close to 20 per cent.

                               nagesh dubey
                               pgdm 1