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News U Can Use

7th December,2012

The Week that was…

1st December to 7th December

Indian Economy

Asian Development Bank (ADB) cut its forecast on India's gross domestic product growth

in the current financial year started April to 5.4% from 5.6% projected in October, mainly on

account of poor industrial performance.

FM says that a further fall in inflation will give room to the RBI for monetary policy easing.

RBI Governor says that India's inflation is expected to trend lower during January-March

2013.

India's HSBC Purchasing Managers' Index rose to a five-month high to 53.7 in November

from 52.9 in October led by a pick-up in new manufacturing orders.

Fitch Ratings said India's rating could be downgraded if there is policy slippage and

mounting evidence of a structural decline in the trend growth rate.

India HSBC service PMI fell to 13 month low at 52.1 points in November against 53.8

points in October.

RBI Executive Director says that the central bank is concerned over the widening Current

Account Deficit (CAD) of India as the central bank feels that the current level of CAD is far

above the the level sustainable for India.

India’s forex reserves declined by $471 mn to $294.51 bn in the week ended Nov 30.

The income-tax department collected Rs.2905cr in Securities Transaction Tax during April-

November 2012, compared with Rs.3335cr collected during the corresponding period last

fiscal.

Source: Crisil Weekly Market Update

Indian Debt Market G-Sec market was range-bound during the week supported by RBI OMO auction. The

benchmark 10-year security 8.15% GOI 2022 closed the week at 8.17% compared to 8.17%

previous week.

Liquidity in the system continued to remain tight during the week with net average daily LAF at

around Rs 92,400 cr compared to Rs. 1,02,300 cr previous week. Overnight call was in the

range of 7.80%- 8.15%.

In G-Sec auction, RBI auctioned G-sec (Rs. 12000 cr) in three securities namely - 8.20% GS

2025 (Rs. 6000 cr), 8.83% GS 2041 (Rs. 2000 cr) and new 8 year GS 2020 (Rs. 4000 cr) with

cut-off yield of 8.23%, 8.40% and 8.12% respectively.

In OMO auction, RBI accepted G-sec (Rs. 11,642 cr) in following G-sec namely - 8.19% GS

2020 (Rs. 6312 cr), 8.15% GS 2022 (Rs. 909 cr) and 8.28% GS 2027 (Rs. 4421 cr) with cut-off

yield of 8.20%, 8.17% and 8.33% respectively.

In SDL auction, RBI auctioned SDL (Rs. 3580 cr) for six states with cut-off yield of 8.88% and

8.93% for 10 year SDL and 8.84% for 5 year SDL.

In T-bill auction, the RBI auctioned 91 day (Rs. 5000 cr) and 182 day T-bill (Rs. 5000 cr) with

cut-off yield of 8.19% (Previous : 8.19%) and 8.14% (Previous : 8.16%) respectively

This week, RBI announced OMO auction (Rs. 12,000 cr) on Dec 11, 2012 in following four

securities namely - 8.07% GS 2017, 8.19% GS 2020, 8.13% GS 2022 and 8.33% GS 2026.

This week, the RBI will also auction 91-day and 364-day T-bills worth Rs 5,000 cr on

December 12, 2012.

Source:RBI,CCIL

Indian Commodities Market

Crude oil prices retreated in the week primarily after the European Central Bank predicted

a bleak year ahead for the region's economy; prices ended at $86.26 a barrel on the

NYMEX on December 6 as compared to $88.07 a barrel on November 29.

US crude oil inventories fell 2.4mn barrels to 371.8mn barrels for the week ended

November 30.

Government cuts the base import price of refined, bleached, and deodorised palmolein to

$864 per tn from $887 following a fall in global edible oil prices.

Government eases quantitative restrictions on exporters applying for permits to sell cotton

in the overseas market, and sets the cap at 30,000 bales from 10,000 bales per exporter

before.

Food Minister says that the government does not have any proposal to increase import

duty on edible oil.


Indian Government

Government wins crucial vote on FDI for multi-brand retail in both the houses of the

parliament.

Prime Minister asks all ministries to speed up implementation of infrastructure projects

related to the transport sector, while setting deadlines for completion of several of these

projects.

Government to launch direct cash transfer plan in 43 districts in the country from Jan 1

instead of the originally planned 51 districts.

The Union Cabinet defers decision on setting up National Investment Board after the Prime

Minister called for some more consultations to resolve the remaining inter-ministerial

differences.

Government decides to raise the limit on foreign institutional investment in government and

corporate bonds by $5bn each by creating two new categories of investment.

Government decides to divest stake in 10 companies, including Oil India, SAIL and

Hindustan Aeronautics; realization would depend upon prevailing market conditions and

investor interest.

Government plans to sell 10% of its stake in Nuclear Power Corporation of India through

an IPO.

Government receives a net payment of Rs.1707cr from telecom companies which have

won spectrum in the recently concluded auction.


Indian Government

Government sought Parliament's approval for net additional expenditure of Rs 30,804 cr in

the current financial year ending March, including Rs 28,500 cr for compensation to state-

owned oil retailers for revenue losses on subsidised sale of fuels.

Finance Ministry wants banks to explore the idea of selling their loans on stalled residential

projects to Asset Reconstruction Companies.

Minister of State for Finance says that by March 2018 the total regulatory capital

requirements of Indian banks would be to the tune of Rs.5 lakh cr, of which non-equity

capital will be of the order of Rs 3.25 lakh cr while equity capital will Rs 1.75 lakh cr.

FM reiterates that banks need to hand-hold stressed sectors so that their bad loans

become a standard asset once the economy recovers.

Finance Minister says that National Investment Board will monitor projects and help the

government expedite decision making and implementation of projects.

Government says only 18 cities in the country would be able attract foreign investment in

the retail sector.

Finance Ministry mulls phasing out urea subsidy in the next three years starting from the

current financial year.

Civil Aviation Minister rules out any move to regulate air fares saying the government only

wants the system to be made transparent.


Regulatory Updates in India

RBI signs a Bilateral Swap Arrangement with the Bank of Japan for swapping of the local

currencies for an amount up to $15bn to address short-term liquidity problems.

RBI enters into an agreement with Bank of Mauritius for cooperation and exchange of

information.

RBI says all entities that have subsidiary general ledger accounts for trading in government

bonds and money markets will have to adhere to the code of conduct developed by the

central bank and FIMMDA.

RBI sets up a supervisory college for SBI and ICICI Bank to better supervise banking

issues in countries where the banks have a presence.

SEBI and other regulators in Asia have decided to further strengthen the information

sharing mechanism among themselves and globally on various enforcement related issues.

SEBI says a listed company is bound to abide by the commitments made in its public offer

documents, even if they do not fall under mandatory requirements.

SEBI seeks stronger powers from the government to recover monetary penalties from

defaulters.

SEBI asks stock exchanges to provide a list of eligible stocks for the Rajiv Gandhi Equity

Savings Scheme.

SEBI asks mutual funds as well as stock exchanges and depositories to create wide

publicity for the Rajiv Gandhi Equity Savings Scheme (RGESS) among investors.


Regulatory Updates in India SEBI clarifies that closed-ended mutual funds considered eligible under the RGESS shall

be listed and traded on stock exchanges.

SEBI asked stock exchanges and clearing corporations to establish a mechanism to share

information with one another on the annual inspection of their members, specifically of

those that have multiple memberships.

According to a recent order issued by the Central PF Commissioner, enforcement officers

of the department cannot act against companies defaulting on workers PF dues unless they

can identify the workers whose savings were at stake.

Comptroller and Auditor General of India (CAG) pulls up Export Credit Guarantee

Corporation for not having proper arrangements with banks to finance exporters resulting in

a loss of about Rs.310cr during the period between 2008-09 and 2010-11.

TRAI issues guidelines on quality benchmarks for wireless data services.

TRAI says that it has initiated action against Idea Cellular for non-compliance of measures

recently unveiled by the regulator for checking pesky mobile messages under short

messaging service.

The Supreme Court grants two Sahara group companies time till February first week to

repay in installments the money collected through optionally fully convertible debentures in

2008 and 2009.


International Markets Consumer price inflation (CPI) in the Organization for Economic Cooperation and

Development (OECD) area accelerated to 2.3% in October from 2.2% in September.

US Senate approves a $631bn defense bill.

US economy added 1,46.000 jobs in Nov taking the unemployment rate to 7.7% in that

month, the lowest rate for the country since Dec 2008.

US ADP employment report says that the private sector added 118,000 jobs in November

compared to revised 157,000 jobs in October.

US labor productivity in Q3 jumped 2.9% compared to the preliminary estimate for a 1.9%

increase while unit labor costs in Q3 tumbled by 1.9% versus the preliminary estimate of a

0.1% drop.

US factory orders gained 0.8% in October, compared with a 4.5% jump in September.

US ISM manufacturing index fell to 49.5 in November from 51.7 in October.

US ISM Non-Manufacturing Index edged up to 54.7 in November from 54.2 in October.

US Auto sales in November rose 15% to 1.14mn vehicles and an annual sales rate of

15.54mn vehicles.

US jobless claims declined by 25,000 to 3,70,000 in the week till Dec 1, the third straight

week of decline.

US construction spending rose 1.4% to an annual rate of $872.1bn in October, the highest

level in over three years.


International Markets

Euro zone GDP contracted 0.1% in Q3 2012, following a 0.2% contraction recorded in Q2

2012; with the decline in GDP in the eurozone, the 17-member bloc slipped into recession

in Q3 for the second time in three years.

European Central Bank (ECB) held its interest steady at 0.75% for the fifth straight month;

sees the euro zone to contract 0.5% in 2012, 0.3% in 2013 but return to growth of 1.2% in

2014.

ECB decides to continue to supply euro zone banks with all the liquidity they ask for in the

central bank's refinancing operations at least until July 2013.

European Commission imposes an antitrust penalty of 1.47bn euros on six firms including

Philips, LG Electronics and Panasonic for running two cartels for nearly a decade.

Moody's downgrades the European Stability Mechanism's long-term debt rating from AAA

to Aa1, maintaining a negative outlook, driven by its earlier downgrade of France.

European Central Bank President says that the large imbalances in the euro area will

make the conduct of monetary policy much more challenging.

Eurozone manufacturing Purchasing Managers Index (PMI) rose to 46.2 in November

from October's 45.4.

Eurozone PMI Composite Output Index rose to 46.5 in November, up from October's 40-

month low of 45.7.


International Markets

Euro zone producer price index accelerated by a seasonally adjusted 0.1% in October

following 0.2% rise in September.

Eurozone retail sales were down 1.2% in October following 0.6% in September.

Bank of England (BoE) kept its interest rate constant at 0.5%, the rate has been at this levels

since March 2009, the bank also kept it asset buying program unchanged at 375 bn pounds

Bank of England (BoE) data showed British banks and building societies drew down 4.36 bn

pounds from the BoE’s Funding for Lending Scheme in its first two months, but increased

net lending by only 496 mn pounds.

UK’s Chancellor of the Exchequer says the economy will shrink 0.1% in 2012, compared to a

previous forecast of 0.8% growth.

UK visible trade deficit widened to 9.5 bn pounds in October from 8.4 bn pounds in

September; total exports decreased by 1% to 24.4 bn pounds and total imports rose 2.5% to

34 bn pounds in October.

UK Purchasing Manages' Index (PMI) for the manufacturing sector rose to 49.1 in November

from 47.3 in October.

UK construction purchasing managers' index (PMI) fell to 49.3 in November from 50.9 in

October.

UK GfK Consumer Confidence Survey rose to -22 in November, from -30 in October.


International Markets UK services purchasing managers' index fell to 50.2 in November from October's 50.6.

S&P lowers Greece's credit rating to "selective default" in light of its offer to buy back bonds

at well below their face value.

Greece plans to spend up to 10bn euros in a bond buyback program in an effort to stabilize

its huge debt.

Brazil’s GDP rose 0.6% sequentially, following 0.2% growth in the previous quarter.

ADB pared back its October growth forecasts for developing Asia, which excludes Japan, by

0.1% to 6.0% for 2012 and 6.6% in 2013.

China’s official purchasing managers’ index rose to a seven month high of 50.6 in November

as compared to 50.2 in October.

China’s HSBC purchasing managers’ index stood at 50.5 in November, from previous

month’s 49.5.

China's official non-manufacturing Purchasing Managers Index rose to 55.6 in November

from 55.5 in October.

China’s HSBC Services Purchasing Managers' Index fell to 52.1 in November from 53.5 in

October.

Bank of Japan Deputy Governor said that the central bank is ready to take decisive action if

the economy deviates from the baseline scenario of the latest forecasts.


International Markets South Africa signs a $5.8bn deal for new passenger trains from Alstom SA.

HSBC sells its entire 15.6% stake in Ping An Insurance to a unit of CP Group for $9.38bn.

Chevron Corp plans to spend $36.7bn in 2013 on energy exploration and investments.

Freeport-McMoRan Copper & Gold to buy Plains Exploration & Production and McMoRan

Exploration for about $9bn.

Baxter International to buy Swedish dialysis product company Gambro for about $4bn.

Delta Air Lines to order up to 70 aircraft worth about $3.3bn, from Bombardier.

South Africa’s Absa Group to buy the African business of Barclays PLC for $2.1bn.

Saputo Inc to buy Morningstar Foods for $1.45bn.

Computer Sciences Corp to sell its credit services unit to Equifax Inc for $1bn.


Global Equities

Indices Dec 7 Nov 30 Change

%

Change

DJIA 13074.04* 13025.58 48.46 0.37

Nasdaq Composite 2989.27* 3010.24 -20.97 -0.70

Nikkei 225 (Japan) 9527.39 9446.01 81.38 0.86

Straits Times (Singapore) 3107.11 3069.95 37.16 1.21

Hang Seng (Hong Kong) 22191.17 22030.39 160.78 0.73

FTSE 100 (London) 5901.42* 5866.82 34.60 0.59

DJIA – Dow Jones Indust r i al Aver age *Dat a as on December 6.


Global Equities Key global indices ended higher in the week (except US’ Nasdaq, down 0.7%), with

Singapore’s Straits Times index gaining the most, up 1.2%.

Wall Street stocks ended mixed in the week, with Dow Jones gaining 0.4%, while Nasdaq

fell 0.7% due to a sell-off in shares of Apple Inc.

The benchmarks were weighed down earlier due to absence of clarity on progress over US

‘fiscal cliff’ talks, and disappointing domestic manufacturing activity numbers.

Further fall was however capped following upbeat manufacturing data from China and gains

in financial companies.

Britain’s FTSE rose 0.6% during the week amid wide fluctuations.

Sentiments were cautious earlier in the week due to US budget deal related concerns.

Losses were however recouped following gains in mining firms on tracking robust Chinese

manufacturing data.

Japan’s Nikkei index gained nearly 1% in the week as a weak yen throughout the week

helped exporters’ shares.

Sentiments were also supported by upbeat Chinese manufacturing data.

Hong Kong’s Hang Seng index gained 0.7% in the week primarily on tracking intermittent

rally in Chinese stocks, which soared on positive comments from new Communist Party

chief about supporting the economy.

Straits Times rose 1.2% in the week following strong economic data from US and China.


Global Debt US treasury prices ended higher in the week ended December 6 as the ongoing budget

standoff among the US lawmakers over a deal to avert the fiscal cliff bolstered the demand

for the safe haven treasuries.

Anxiety was high among market participants about the consequence of fiscal cliff which will

lead to series of spending cuts and tax hikes in January 2013 threatening to push US

economy into a recession and leading to high unemployment rate.

The yield on 10 year benchmark bond fell to 1.58% on December 6 from 1.62% on

November 29.

The US Federal Reserve's purchases of Treasuries also supported the bond prices; it

bought a combined $6.1 bn in longer-dated Treasuries in two separate moves for its

"Operation Twist" on December 6.

This bond program, which is set to expire at year-end, is intended to lower mortgage rates

and other long-term borrowing costs, it involves the Fed selling its short-dated Treasuries

and buying longer-dated issues on the open market.

Bonds were also pulled up after Spain failed to meet the maximum target at a debt auction,

raising concern that demand for euro zone sovereign bonds was waning; Spain sold 4.25 bn

euros of bonds compared with a maximum target of 4.5 bn euros.

Further gains in the bond prices were restricted on upbeat manufacturing data from China

and after Spain requested European Union’s (EU) aid to recapitalize its banking sector which

calmed some sentiments on the debt crisis in the country.


Global Debt On weekly debt holding front, foreign central banks investment in US Treasuries and

agency debt at the Federal Reserve rose in the week ended December 5.

Treasuries held by overseas central banks at the Federal Treasury debt rose by $1.458 bn

to stand at $2.85 trillion.

Holding of securities issued or guaranteed by Fannie Mae and Freddie Mac rose by $657

mn to stand at $317.68 bn.

The resultant combined holdings of Treasuries and agency securities by foreign central

banks at the Fed rose $2.013 bn to stand at $3.204 trillion.


USA

Wall Street ended mixed in the week ended Dec 6, with Dow Jones gaining 0.4%, while

Nasdaq fell 0.7%, dragged lower by a sell-off in shares of Apple Inc.

The benchmarks started the week on a negative note due to absence of clarity on progress

over US ‘fiscal cliff’ talks.

Disappointing domestic manufacturing activity numbers also weighed on indices.

US ISM manufacturing index fell to 49.5 in November from 51.7 in October.

Sentiments were also cautious as investors stayed on sidelines ahead of the monthly jobs

report.

Further fall was however capped following upbeat manufacturing data from China.

Sentiments were also supported by news that Spain formally requested the disbursement

of more than $50bn of European funds to recapitalize its banking sector, while Greece said

it would spend 10bn euros to buy back bonds in a bid to reduce its soaring debt.

Gains were also witnessed on tracking a rise in financial companies and optimism about

the Chinese economy.

Meanwhile, markets didn’t react sharply to data that showed that US consumer spending

fell in October for the first time in five months and income growth stalled.


UK

Britain’s FTSE rose 0.6% during the week amid wide fluctuations.

Sentiments were cautious earlier in the week due to US budget deal related concerns.

Profit booking in mining, and selling pressure in metal stocks pulled down the markets

further.

Sell-off in shares of Tullow Oil after it said that its Zaedyus-2 appraisal well offshore French

Guiana could not find commercial hydrocarbons also dented market sentiments.

Losses were however recouped following gains in mining firms on robust Chinese

manufacturing data and after China’s new leadership said it would keep its accommodative

stance in coming months.

The benchmark was not affected even after the Bank of England made no changes to its

monetary policy.


ASIA

Singapore’s Straits Times index rose 1.2% in the week ended December 7 following

some positive global cues.

Market started on a weak note on concerns over the US fiscal cliff.

Investors’ cautiousness ahead of the European Central Bank and the Bank of England rate

decision, also weighed on the sentiments to certain extent.

The benchmark however recovered following strong Chinese economic data.

Sentiments were boosted further after the US announced a favourable weekly jobless

benefit claims report.

Japan’s Nikkei index gained nearly 1% in the week ended December 7 primarily due to a

weak yen throughout the week.

Sentiments were also supported by upbeat Chinese manufacturing data.

ended lower on Tuesday on slightly stronger yen as investors awaited deal in the US to

avert a fiscal cliff.

A rally in index heavyweight Fast Retailing also induced some gains into the market.

Rising possibility of an opposition party victory in the approaching general election, also

cheered the investors.

Some gains were however cut short due to intermittent rise in the yen, which in turn hurt

exporters’ shares.


ASIA

Hong Kong’s Hang Seng index ended 0.7% higher in the week ended December 7.

Gains were primarily triggered on tracking intermittent rally in Chinese stocks, which soared

on positive comments from new Communist Party chief about supporting the economy.

Further rise in the market was witnessed following gains in refining stocks.

Some gains were however trimmed on the back of sporadic profit booking amid caution

over the progress in talks to avoid the US fiscal cliff.


Indian Futures and Options Market ReviewNifty Futures

The Nifty near month contract (expiry December 27, 2012) ended up with

around 37.50 point premium to the spot index on December 7, 2012.

Over the week ended December 7, the Nifty spot index gained slightly in the

week amid some positive domestic cues.

The other Nifty future contracts, viz., January contract ended at 5979 points (up

37 points over the week) while the February contract ended at 6008 points

(down 35 points over the week).

Overall, Nifty futures saw a weekly trading volume of Rs 27,849 cr arising out of

9 lakhs contracts with an open interest of 215 lakhs.


Indian Futures and Options Market Review

Nifty Options

Nifty 6000 call witnessed the highest open interest of 109 lakh on December 7; Nifty 6100

call witnessed the highest increase in open interest of 38 lakhs over the week.

Nifty 6000 call garnered the highest number of contracts over the week at 23 lakhs.

For put options, Nifty 5500 put witnessed the highest open interest of 85 lakhs on

December 7; Nifty 5900 put logged the highest increase in open interest of 23 lakhs over

the week.

Nifty 5900 put garnered the highest number of contracts over the week at 17 lakhs.

Overall, options saw 130 lakh contracts getting traded at a notional value of Rs 3,88,108 cr

during the week.



Week Ended

December 7, 2012

Turnover

Rs. Cr. % to Total

Index Futures 39,458 6.96

Index Options 401,288 70.75

Stock Futures 84,957 14.98

Stock Options 41,526 7.32

Total 567,228 100.00

Put Call Ratio 0.86 (Dec 7) 0.90 (Nov 30)

Stock Futures and Options –

NSE witnessed 28 lakh contracts in stock futures valued at Rs 84,957 cr while stockoptions saw volumes of 14 lakh contracts valued at Rs 41,526 cr during the week endedDecember 7, 2012.

NSE F&O Turnover –

Overall turnover on NSE's derivatives segment stood at Rs 5.7 lakh cr (190 lakhcontracts) in the week ended December 7, 2012 vs. Rs 7.6 lakh cr (262 lakh contracts) inthe previous week.

Put Call fell from 0.90 on November 30 to 0.86 on December 7.



FII Segment

On December 6 (last available SEBI data), foreign institutional investors' open interest stood

at Rs 87,692 cr (30 lakh contracts).

The details of FII derivatives trades for the period November 30 – December 6 are as follows:

-

Week Ended

December 6,

2012

Buy Sell Buy % Sell %

No. of

contracts

Amt in Rs

Cr

No. of

contracts

Amt in Rs

Cr

No. of

contracts Amt in Rs Cr

No. of

contracts

Amt in Rs

Cr

Index

Futures187350 5413 188942 5568 7.04 7.00 7.14 7.20

Index

Options1996858 58606 1940065 57110 75.03 75.74 73.36 73.83

Stock

Futures246803 6994 270750 7935 9.27 9.04 10.24 10.26

Stock

Options230530 6361 244711 6737 8.66 8.22 9.25 8.71

Total 2661541 77374.30 2644468 77349 100.00 100.00 100.00 100.00

Sour ce - SEBI


The Week Ahead…

10th December– 14th December 2012

The Week AheadDay Event

Monday, December 10 Euro-zone Sentix Investor Confidence, December

China’s Trade Balance, November

China’s New Yuan Loans, November

Japan’s Consumer Confidence, November

Japan’s Eco Watchers Survey, November

Tuesday, December 11 US Trade Balance, October

US Wholesale Inventories, October

Euro-zone ZEW Survey, December

UK’s RICS House Price Balance, November

Japan’s Machine Orders, October

Japan’s Tertiary Industry Index, October

Wednesday, December 12 US Federal Open Market Committee rate decision, December

US Treasury Budget, November

US Import and Export Prices, November

US Crude Oil Inventories, December 8

Euro-zone Industrial Production, October

UK’s Jobless Claims Change, November

UK’s ILO Unemployment Rate, October

India’s Index of Industrial Production, October

India’s CPI for Rural / Urban, November

Thursday, December 13 US Retail Sales, November

US Business Inventories, October

US Producer Price Index, November

US Jobless Claims, December 8

European Central Bank’s Monthly Report, December

Japan’s Tankan Large Manufacturers Outlook, Q4

Friday, December 14 US Industrial Production / Capacity utilisation, November

US Consumer Price Index, November

Euro-zone Consumer Price Index, November

China’s HSBC Flash Manufacturing PMI, December

China’s Actual FDI, November

Japan’s Industrial Production, October

Indian Debt Market Outlook This week, the G-Sec markets are expected to take cues from monthly inflation and

industrial production numbers, G-Sec and OMO auction cut-off, liquidity scenario, policy

makers’ statements and global developments.

This week, the system will witness inflows from OMO along with outflows due to advance

tax outflows. Money market inflows of around Rs. 16500 cr are expected as against

outflows of around Rs. 22,000 cr during the week. Also OMO auction of around Rs. 12,000

cr will provide support to the liquidity.

Corporate bond market is expected to take cues from G-sec market and primary issuances.

Source: RBI,RMF Estimates

Indian Debt Markets

The maturities of duration funds

(like Income fund and Dynamic

bond fund) have increased on

account of deployment in long

maturity asset.

The maturities of liquid schemes

(like floating rate fund) have

increased on account of investment

in longer maturity assets. Maturity

of Liquidity fund has reduced on

account of increase in

subscriptions.

Particulars 30-Nov-12 07-Dec-12 Change (bps)

10 year Gsec yield (%) 8.17 8.17 0.00

Scheme Maturity (years) Change

Reliance G-sec Fund 15.81 15.37 -0.44

Reliance Income fund 9.08 9.94 0.87

Reliance Short Term Fund 2.35 2.46 0.12

Reliance Dynamic Bond

Fund 6.02 6.09 0.07

Reliance Monthly Income

Plan (MIP) 9.37 10.76 1.39

Liquid Schemes Maturity (days) Change

Reliance Floating Rate

Fund – Short Term Plan 355 389 34.86

Reliance Money Manager

Fund 57 61 4.15

Reliance Liquidity Fund 40 35 -5.29

Reliance Medium Term

Fund 171 178 7.84

Reliance Liquid Fund -

Treasury Plan 32 35 3.10

Reliance Liquid Fund -

Cash Plan 39 42 3.16

Information's provided here are meant for general reading purpose only and is not meant to

serve as a professional guide for the readers. This document has been prepared on the

basis of publicly available information, internally developed data and other sources believed

to be reliable. The Sponsor, The Investment Manager, The Trustee or any of their respective

directors, employees, affiliates or representatives do not assume any responsibility for, or

warrant the accuracy, completeness, adequacy and reliability of such information. Whilst no

action has been solicited based upon the information provided herein, due care has been

taken to ensure that the facts are accurate and opinions given fair and reasonable. This

information is not intended to be an offer or solicitation for the purchase or sale of any

financial product or instrument. Recipients of this information should rely on information/data

arising out of their own investigations. Readers are advised to seek independent

professional advice and arrive at an informed investment decision before making any

investments. None of The Sponsor, The Investment Manager, The Trustee, their respective

directors, employees, affiliates or representatives shall be liable for any direct, indirect,

special, incidental, consequential, punitive or exemplary damages, including lost profits

arising in any way from the information contained in this material.

Mutual Fund investments are subject to market risks, read all scheme

related documents carefully.

Thank you

News U Can Use€¦ · securities namely - 8.07% GS 2017, 8.19% GS 2020, 8.13% GS 2022 and 8.33% GS...

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Transcript of News U Can Use€¦ · securities namely - 8.07% GS 2017, 8.19% GS 2020, 8.13% GS 2022 and 8.33% GS...