SENSEX: 46373 NIFTY: 13597
Markets surge : PSBs, Power sectors boom up: Economy looks up: FIIs plunge:
Burger King India shares list at Rs 112.50 on NSE, an 87.5% premium over issue price:
After a quite depressed business and economic environment, India could be looking at a pickup in growth soon, believes Jonathan Garner, chief – Asia and Emerging Market equity strategist at Morgan Stanley. According to Garner, having some cyclicals in the portfolio would be advisable.
“We could be looking at a pickup in growth in India and therefore having some cyclicals in the portfolio would make some sense including industrial cyclicals and to some extent, consumer cyclicals and that’s different from what we are seeing in other emerging markets at the moment,” said Garner in an interview with CNBC-TV18.
Garner is slightly ‘overweight’ on India and thinks the market can outperform the other emerging markets.
“The market is outperforming other markets in north Asia even though we have had some concerns on that front typically around Iran-Iraq tensions, we maintain small overweight on India,” he said.
“A lower Brent oil price is sustained, it’s certainly quite favourable and there are important other domestic factors to consider in India… the Indian market can outperform others in Asia somewhat in this particular situation,” he added.
While the markets have opened on a positive note this morning, we must not lose sight of the fact that we are in a patch of resistance. This range is between 13,400-13,700. The Nifty is currently trading around the upper end of this range. Unless we do not get past 13,700 or break 13,400, we will not see a convincing rally up or down. There is strong support around the 13,350-13,400 range and as long as that holds, traders can utilize dips to accumulate long positions, says an expert.
“FPI buying continues unabated pushing the benchmark indices to record levels. FIIs have invested Rs 12300 crores so far in December on top of the record Rs 60300 crores invested in November. When money flows like this, the market has only one way to go – up. But investors should remember that valuations are high and risky. A sharp surge in Covid infections in US, the recent spike in infections in Germany, S Korea, etc, the farmer agitation lingering without a settlement and the possibility of a Brexit without a deal are areas of concern.
Investors have to be cautious”
Investor Protection: Another step forward by SEBI on MF schemes:
SEBI provides new Guidelines to the Trustees for constant supervision of MF activities:
The Securities and Exchange Board of India (SEBI) on Monday issued guidelines to provide administrative assistance to mutual fund trustees for monitoring the various activities of mutual funds. SEBI has been time and again formulating new guidelines as to enhance tight control on the MF business in order to protect the interests of the Investors.
So in line with their laid down motto of Investor protection and enhanced transparency, the regulator in the circular said that mutual fund trustees should appoint a dedicated officer having professional qualification and minimum five years of experience in finance and financial services related field. The officer should be employee of the trustees and directly report to them. He/ she would support and help the trustees in discharging their responsibilities.
This comes in wake of feedback from trustees that they needed such assistance.
Mutual fund regulations as prescribed by Sebi lays a lot on onus on the trustee board. Trustees have to ensure that Asset Management Companies (AMCs) have systems in place, the appointment of key managerial personnel and registrar, ensure that the fund houses do not act in manner which is beneficial to the associates of AMC and actions of AMC are not detrimental to interest of unit holders. Basically ensure that the AMC, its management and fund managers are avoiding conflict of interest.
To discharge their basic duties, the trustees, have to deal with voluminous data every quarter. They review all transactions carried out between the mutual funds, asset management company and its associates, they are also supposed to analyse redressal of investor complaints.
Analysing this voluminous data requires that trustees understand the fund management on some level. To make their job a little easier the market regulator also allowed Trustees to have standing arrangement with firms for audit or legal advice.
“Further, Trustees shall have standing arrangements with independent firms for special purpose audit and/or to seek legal advice in case of any requirement as identified and whenever considered necessary,” Sebi said in a circular posted on its website. The new rule would come it of force from October 1,2020.
So MFs are under the strict control of the Regulator -SEBI- Therefore the Investors can now feel more confident in investing in MFs particularly in SIP and get benefited.
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