Local fund buying helps stabilise sensex
Mumbai : There was a recovery in the stock market, with fresh buying by local funds and short covering by operators towards the close of the trading session. Most of the buying by the local operators was in the new economy stocks, which resulted in Infosys, Satyam Computers and NIIT see their stock prices rise. As a result, the sensex shot up to close at 3,943.54, showing a net gain of 23 points.

Other stocks which saw some rise in their share prices were Grasim, Novartis, Mahindra & Mahindra, Glaxo, ICICI, Bajaj Auto, HPCL, Telco, Reliance Petroleum and Hindalco.
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NSE is finalising plan for MF trade via its network
Mumbai: In a move which could give the growing mutual funds industry a tremendous advantage, the National Stock Exchange is said to be finalising a plan that will allow mutual funds to be retailed through its 300-plus centre network. According to Mr. R. H. Patil, the managing director of NSE, the aim to do this is to enable the investor across India to buy and sell mutual fund products in a transparent manner through a stock exchange platform.

The exchange has appointed noted chartered accountant Rajendra Chitale of MP Chitale & Co to lay down the norms for this purpose. Currently mutual funds including the largest private sector ones do not have a presence beyond 25-30 centres with even UTI being restricted to 60 odd centres of its own.

NSE is also preparing to allow the open end schemes to be retailed through its network. Industry sources however saw some problems in the implementation of the move. MFs nowadays do not issue unit certificates any more but only account statements which are non-transferable, and as such it is clear how the transfer could be affected.

Besides, the question of the investor having to pay brokerage to NSE is also in doubt, since sale of existing units will not entitle the broker to commissions received from the mutual funds.
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