Open ended debt funds give high returns
Calcutta: In a recent independent survey carried out on the performance of income funds', it has been observed that open-ended debt funds have managed to generate returns ranging from 12.69 per cent to 15 per cent during 1999-2000. It is maintained that even the worst of the funds' provided better returns than instruments such as the average bank fixed deposit, which, for one year, offered rates in the 9.5-10 per cent region.

Sundaram Bond Saver, Templeton India Income Fund and Prudential ICICI Income Plan were the three top grossers, based on the returns from investment in their growth options, with returns of 15 per cent, 14.61 per cent and 13.99 per cent respectively. Between March 31, 1999 and March 31, 2000, their net asset values (NAVs) moved up from Rs. 11.70 to Rs. 13.46, from Rs. 15.03 to 13.11, and from Rs. 10.91 to Rs. 12.44.

According to the researchers, these returns have fructified even in a scenario marked by falling interest rates. Valuations of investments have been adjusted to changes in interest rates. The past financial year witnessed substantial volatility in Government securities, which attract a good portion of debt funds' allocation. The run-up to March 1999 saw this volatility pulling down most of their NAVs.

Funds that provided returns of over 13 per cent include Kothari Pioneer Income Builder Account (13.35 per cent), DSP Merrill Lynch Bond Fund (13.14 per cent), SBI Magnum Liquibond (13.11 per cent), SUN F&C Money Value Fund (13.09 per cent) and Alliance Liquid Income (13.08 per cent).
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Rollercoaster ride continues
Mumbai: Despite the initial panic triggered by the 85-point fall in Nasdaq, the BSE Sensex ended the day with a loss of about eight points, recovering almost 230 points from the intra-day low.

The Sensex opened with a gap of 104 points at 4561.07 hit a high of 4698.34, a low of 4431.74 only to end the day at 4657.42 losing 8.39 points over the previous close of 4665.81. Several FIIs and operators emerged as big buyers at the lower levels and made purchases in the heavyweights, propelling the Sensex to a high of 4698.34. The advance decline index still shows that the market is in favour of the bears, with the BSE seeing 1,100 stocks declining in value as against 363 which recorded an increase.

At the National Stock Exchange, the S&P CNX Nifty closed at 1415.65, 10.7 points (0.76 per cent) above Wednesday's close. This is the first time that the index has closed the day on a positive note in the last few trading sessions. During the day's trading, 226 stocks saw an appreciation in value as against 624 which recorded declines.

While the new economy stocks remained subdued, media and telecom stocks remained weak. Stocks such as Sterlite Industries and Tata Telecom hit the lower end of the circuit on BSE. The major gainers during the day's trading include the stock of HCL Technologies, Mascon Global, Reliance Industries, Infosys Technologies and Wipro. The major losers during the day's trading include Castrol India, Indian Rayon, Zee Telefilms, PSI Data Systems and Himachal Futuristic.
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Foreign firms' listing on Indian bourses made conditional
New Delhi: The standing committee of the High Level Committee on Capital Markets (HLC) which has taken up a proposal to allow foreign companies to list on Indian bourses, will recommend that these listings be permitted listing on Indian stock exchanges only if the foreign companies agreed not to repatriate the proceeds of any public offerings made within the country.

This recommendation has been made after the Reserve Bank of India voiced its concerns regarding potential pressures on the balance of payments if the companies were allowed to repatriate funds from India.

The standing committee consisting of officials from the finance ministry, Reserve Bank of India and Securities and Exchange Board of India will be meeting next week. The HLC chaired by Reserve Bank of India governor Bimal Jalan takes up capital market issues that overlap with the functions of the central bank and Sebi.

The issue of permitting foreign companies to list in India came up first in the context of a state-owned Sri Lankan company. It was suggested that the company be allowed to offload its stakes in the Indian markets as part of its plans to privatise. The proposal was put up to the finance ministry for consideration. The ministry had argued that such a proposal was welcome provided that there was something for it for India too.

At present, since the government does not permit full convertibility of the rupee on the capital account, the decision required the joint concurrence of RBI and finance ministry. The matter was discussed by the HLC at its last meeting, where the RBI opposed the proposal (unless some caveats were inserted).

It is now being taken up again by the standing committee next week. The general consensus is that the approval can be given provided that the companies agree not to repatriate the funds. Observers said that such a condition would actually deter a lot of companies from seeking listing in the Indian markets.
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