IDFC, SBI and UTI these fund managers go for bearish bets

IDFC, SBI and UTI : SBI Mutual Fund has decreased the average maturity in long-term funds to nearly six years now compared with about 15 years in Nov.

India's RPI(retail price inflation) eased to a four month low in Feb, triggering hopes for more rate cuts beyond a 25-basis pts rate cut widely estimated on April 5th, when the RBI will announce its next bi-monthly policy.

CPI(Consumer price index) based retail inflation softened to 5.18% in Feb , lower than the 5.6% estimated earlier.IDFC Mutual Fund too has decreased its average maturity to near 4 years in income & bond funds, which is more than halved compared to previous year.

"We think that cyclical disinflation has broadly run its course," told by Mr. Suyash Choudhary , head of fixed income, IDFC Mutual Fund. "Potential upturn in rural wage and 7th Pay Commission payouts could exert some stress to inflation speed ahead.

The Reserve Bank of India has also set a 4% inflation target by Jan 2018.This, in accordance with some market participants, could be an impediment for aggressive rate cuts amid uncertainty over monsoon & inflationary wage lift.

 

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Experts believe Nifty futures may move high near 7,625-7,650 levels in the short term

What is required now is for the index to build on this starting trading day & then assist that let us say positive move through the week, then we could perhaps have a spirited week and then we can all look forward to much better times but all those are things that we await.

At present, we close previous week with a slight upward bias. We look forward to up-coming week with some hope.Click for Free nifty futures tips

The market has been stabilising near 7,500 at a fairly reasonable valuation. I think the worst is behind us.

At present, we have to wait for few positives in terms of catalyst, in terms of maybe better monsoons or for corporate earnings expansion to kick start, probably in the Q2 or Q3(second or third quarter) of FY17," told Edelweiss Securities in a note.

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Nifty updates: Sensex regroup more than 100 points

Today, Sensex overflowed by over 100 points in morning trading, led by gains in HDFC, ITC, RIL,ONGC, Infosys and Coal India.

The Nifty futures rebounded with its crucial psychological level of 7,500 supported by gains in metal, realty, oil & gas, capital goods, & auto stocks.

The broader market traded in line with the benchmark indices with the BSE midcap and BSE smallcap indices trading higher by 0.08 and 0.2%.

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Nifty futures eyes 7,500, but brace for volatility

Experts figured out that volatility may have receded in the recent few sessions, but need to calm further before the indices move up further. "On yesterday, The India VIX fell in last five sessions from 24.82 to 17.50 but went high by 1.7 per-cent. The Nifty-50 was finding sustained supply around the 7,365-7,380 zone. The VIX needs to stabilise below 18 to get into the comfort position. Otherwise, a jump in the fear gauge may again cause a bumpy ride to the indices after the recent surge," said by Market Experts.Click for Free nifty futures tips

India VIX, the fear gauge, suggested likely volatility over the next 30 days. After breaking the crucial resistance level of 7,250 on yesterday, experts hopes that the 7,500 level should be the next target for the 50-pack index.

"The resistance at the 7,250 level thus stands broken with a gap & the overall trajectory is suggesting a likely further uptrend from here on, possibly towards the 7,500 mark in the up-coming few weeks.

At present, Support is likely to be strong in case of a drop towards the 7,250-7,220 range. Trading over the past three days suggest an impulse-like uptrend (Elliott wave theory), which suggest increasing likelihood that a short-term bottom may be in place for the Nifty-50," said by Mr.Siddhartha Khemka.

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NSE going to add 4 companies & going to drop Vedanta, Cairn India, PNB from index

Share market updates : Following stocks will be dropped from the National Stock Exchange's Nifty-50 index with effect from April 1st - Cairn IndiaBSE 0.68 %, PNB(Punjab National Bank) & Vedanta.Click for Commodity tips

In their place, Aurobindo Pharma, Eicher Motors, Bharti Infratel & Tata MotorsBSE 0.35 % Ltd (DVR) will be included in the index.

Shares of Tata Motors is already a part of Nifty & inclusion of Tata Motors Ltd (DVR) in the Nifty- 50 will take the number of securities in the index to 51.

Moreover, the total number of companies will continue to be 50. On the other hand, equity shares with differential voting rights are eligible to be in the indices as an additional security subject to the fulfillment of eligibility criteria, India Index Services (IISL), a subsidiary of NSE Strategic Investment Corporation, told in a circular.

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Sensex down 100 pts, Nifty futures below 7,150

Today, S&P BSE Sensex pared all of its earnings to trade lower by 100 pts after increasing over 100 pts bucking the strong world wide cues.

The Free nifty futures was trading below its critical psychological level of 7,150 after regaining 7,200 for a brief period of time. Shares of Gati surged over 7 per-cent in trade while those of Emami slided around 3 per-cent. ONGC & Adani Portts & SEZ shares climbed  by 2 per-cent each on the BSE benchmark.

The broader market traded mixed with the BSE midcap falling down by 0.55 per-cent & BSE smallcap index rising by 0.18 per-cent.

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