MFs sit on huge cash pile

-
Banking & Finance

MUMBAI: Mutual funds (MFs) are sitting on a huge cash pile of Rs 22,908 crore, which is well placed to maintain buying interest and propel the sagging market forward, a report said.

"The total cash with MFs, including cash mobilised through the recently launched NFOs to the tune of Rs 6,266 crore, stands at a healthy Rs 22,908 crore. Flush with cash, MFs are well placed to maintain buying interest and propel the market forward," Ms Mallika Baheti, Research Analyst, Sharekhan said in a research report here.

The absolute cash levels for all existing equity funds rose by 17.4 per cent to Rs 16,642 crore in February 2008 from Rs 14,176 crore in January 2008. Even the cash as a percentage of the total corpus increased to 8.7 per cent in January 2008 from 7.6 pe r cent in December 2007.

Rising cash levels indicate the cautious outlook of fund managers in the wake of concerns of a global slowdown and consequent dip in foreign inflows into emerging markets such as India, Ms Baheti said.

The cash level for all funds more than three months old also showed a similar trend, rising to 8.2 per cent of the total corpus in February 2008 (from 7.6 per cent of the total corpus in December 2007).

This once again reflects the cautious stance adopted by MFs. The equity fund flow analysis showed that after witnessing record inflows in January, net inflows into equity MFs more than halved to Rs 6,903 crore in February as compared to Rs 14,070 crore r ecorded in January. - PTI

Popular posts from this blog

IOB capitalises on hike in stake by LIC

-
Indian Overseas Bank rose 1.53% to Rs 46.45 at 10:31 IST on BSE, after the biggest domestic instutional investors Life Insurance Corporation of India hiked its stake in the state-run bank. The bank made this announcement after trading hours on Wednesday, 25 March 2009. Meanwhile, the BSE Sensex was up 126.19 points, or 1.31%, to 9,794.09. On BSE, 31,003 shares were traded in the counter. The stock had an average daily volume of 1.93 lakh shares in the past one quarter. The stock hit a high of Rs 47 and a low of Rs 45.95 so far during the day. The stock hit a 52-week high of Rs 156.80 on 2 May 2008 and a 52-week low of Rs 37.55 on 9 March 2009. The mid-cap bank stock had underperformed the market over the past one month till 25 March 2009, falling 3.17% as compared to the Sensex's 8.60% rise. It had also underperformed the market in the past one quarter, declining 33.94% as compared to the Sensex's 1.04% rise. The bank's current equ The current price of ...
Read more

Lok Housing & Constructions builds on fund raising plans

-
Lok Housing & Constructions jumped 6.99% to Rs 107.90 at 11:20 IST on BSE ahead of a board meeting to consider fund raising options from both foreign and local market, including an institutional placement. Meanwhile, the BSE Sensex was down 50.50 points, or 0.30%, at 15203.73. On BSE, 1.86 lakh shares were traded in the counter. The scrip had an average daily volume of 4.74 lakh shares in the past one quarter. The stock hit a high of Rs 115 and a low of Rs 102 so far during the day. The stock had a 52-week high of Rs 390.50 on 1 January 2008 and a 52-week low of Rs 96.25 on 12 June 2008. The scrip had underperformed the market over the past one month till 12 June 2008, falling 26.55% compared to the Sensex's 10.18% decline. It had also underperformed the market in the past one quarter, falling 31.39% compared to Sensex's 3.24% fall. The small-cap housing projects developer has an equity capital of Rs 42.88 crore. Face value per share is Rs 10. The current...
Read more

Griffin Chemicals surges on re-listing

-
Griffin Chemicals was trading at Rs 29, up 2220% on re-listing after six years on Bombay Stock Exchange (BSE). The counter saw miniscule volume of 4769 shares. The stock opened at Rs 23, up 1740% against its last traded price of Rs 1.25 on 8 August 2002. The Griffin Chemicals stock was highly volatile today. It opened at Rs 23 and then rallied ahead to Rs 50 but soon eased to a low Rs 22. The surge in Griffin shares reminds of unprecedented rise in stock prices of KGN Industries on its re-listing day. KGN Industries, run by Ahmedabad-based Memon family, had re-listed at Rs 100 per share after nearly seven years in May 2008 this year. The stock had risen to a high of Rs 55,000.
Read more