investime VOL X ISSUE 7 JULY 2013 R 3 0 The ‘Rupee’ Story: where will it take us? The Rupee pendulum and its oscillations | PG-06 RBI intervenes to protect The Rupee... again | PG-40 Stock of the month GPPL | PG-3 6
investimeVOL X ISSUE 7 JULY 2013 R30
The ‘Rupee’ Story: where will it take us?
The Rupee pendulum and its oscillations | PG-06RBI intervenes to protect The Rupee... again | PG-40
Stock of the monthGPPL | PG-36
JULY 2013 Investime 03
Editorial
With the RBI action that has come in two tranches of liquidity restraining actions, and the likelihood of issue of foreign currency bonds, there may be better conditions in the currency market. This does not rule out the possibility of further currency depreciation
Nowadays, all discussions on economics and finance start with the Rupee, and invariably end with the Rupee. So, it is no unusual thing that we cover this subject in sufficient detail, against the background of the latest developments, in the current edition of the magazine. The Rupee is troubled by nothing but the imbalances in trade and investment flows. There is nothing much we can do about trade, except go in for a deliberate reduction in imports of gold and such other non-essentials. However, there is much more that we can do, as a nation, about making this country a preferred destination for investors from abroad. In one of the discussions that I happened to listen to, the concern expressed by the foreign institutional investors were fourfold, and this included the currency which needs to be stabilised, the persistently high inflation which affects value of assets and also the standard of living, and which is counter-productive to growth when it is in larger doses; reforms — that we as a nation very seldom come together and decide what we need for the common good; there are far too many opinions, which are quite often the result of standards of expediency; and finally, the political environment which is going to develop, as we approach the elections in about half a dozen state legislatures and then the general elections somewhere in the first half of 2014. These are all factors known to all, but that this is the perspective of someone who is looking at India from outside makes it something of a different point of view and a reality that we may need to be aware of. The Rupee, in the medium term, tends to settle somewhere close to the real effective exchange rate and periodically needs to adjust itself to the inflation differentials with its major trading partners. Again, we need to look at the flows — it is inflows that have always made the Rupee stronger — and the outflows, mainly due to FII activity, that pulls the currency down. With the economy gradually bottoming out and economic activity likely to pick up over the next two to three quarters, and fixed income yields having moved up, the domestic economy is likely to present return differentials that would be attractive to external investors. But external investors need two things, stable exchange rate conditions and better predictability of future interest rates. With the RBI action that has come in two tranches of liquidity restraining actions, and the likelihood of issue of foreign currency bonds, there may be better conditions in the currency market. This does not rule out the possibility of further currency depreciation. But we may not see the fast paced depreciation that happened in the last couple of months. If it is a very intense sell off of the domestic unit, then the RBI may step in again. As of now, things seem to be under control and stability is likely to return sooner than later. I am pleased to record that we have also included an interesting article on the ancient dance form of Kathakali, authored by G.Vijayakrishnan, one of the leading exponents of this dance and who was also a member of the Investime editorial team for a long time. The focus of The Last Page was always on something other than ordinary. Hope you will enjoy reading this short piece which links this dance form with yoga.
Mountains and valleys, All taken by rains, Nothing really remains.
K. Joseph Thomas
CONTENTS
Cover PagePrinted, published and edited by Mr. K. Joseph Thomas on behalf of Aditya Birla Money Mart Limited. (Formally known as Birla Sun Life Distribution Company Limited). Published from One India Bulls Centre, Tower 1, 14th Floor, Jupiter Mill Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai 400 013.Tel no: 91-22-4356 8300 Fax no: 91-22-4356 8310 and printed at Spenta Multimedia, Peninsula Spenta, Mathuradas Mill Compound, N. M. Joshi Marg, Lower Parel (W), Mumbai - 400 013. Tel. : 2481 1010. www.spentamultimedia.com
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DISCLAIMER CLAUSEThe information published is as per the data provided by various Mutual Funds. While utmost care has been taken to maintain accuracy in the data, the company does not hold any responsibility for errors in the same. The views/opinions expressed in the various articles are that of the author and the company may not subscribe to the same either in part or in full. Any person investing on the basis of the data published in Investime will be doing so at their own risk.
08 HRA and Home Loan: Nexus & Nuances The deduction of HRA going hand in hand with that on self occupied property seems paradoxical, as an employee staying in a rented house, by definition, cannot live in a self-occupied property. In other words, a person cannot be in two places at once
06 The Rupee pendulum and its oscillationsThe Dollar-Rupee exchange rate is likely to move both ways and that is what markets are about. Concerns may be reasonable only in case of a disproportionate and sudden depreciation.
14 Critical Illness Insurance Policy: Making an Informed ChoiceCritical illness policy or policy riders have to be understood well in the totality of all its terms and conditions before anyone subscribes to a policy. The article explores this category of insurance cover In a simple and lucid manner
38 A stable Rupee for stable marketsThe Rupee has seen a marked depreciation in the last six weeks. Countries with large current account deficits such as India, have been particularly affected, despite their relatively promising economic fundamentals
40 RBI intervenes to protect the Rupee... againThe Reserve Bank of India has undertaken several measures to contain the volatility in the foreign exchange market. These measures have had a restraining effect on volatility, with a concomitant stabilising effect on the exchange rate
10 Interview: Sanjay ShahDepreciation of the Rupee may impact policy changes. Here’s what Sanjay Shah, Senior Vice President and Head of Fixed Income, HSBC AMC has to say
12 Interview: Laxmi IyerRBI’s policy seems to be aimed at helping the Rupee find a fresh equilibrium against the dollar. Here’s what Laxmi Iyer, Head of Fixed Income & Products, Kotak Mahindra Asset Management Company has to say
46 The Last PageKathakali is one of the ancient dance forms of Kerala and the author, a prominent Kathakali expert, shares some interesting aspects of this performing art
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06 Investime JULY 2013
The RUPEE PENDULUM and its oscillations
Personal Finance
Despite various government measures to stem the fall of the Rupee, the decline has impacted lot of us and can potentially be inflationary with a lag effect. Even though the Rupee has been going through a particularly rough patch, the current situation is temporary and will reverse
Rahul ParikhHead – Aditya Birla Money
MyUniverse
India (RBI) are taking steps to achieve some modicum of stability in the Indian economy. Such measures include an attempt to curb speculations on currency and import of gold, which adversely impacts our Current Account Deficit (CAD).
However, despite various government measures to stem the fall of the Rupee, the decline has impacted a lot of us and can potentially be inflationary, with a lag effect. We have tried to decipher the impact of the Rupee fall on various parts of the economy and the household, to help you
For the last few months, the Indian economy has been impacted by a multitude of factors — internal
and external. Both, the equity and debt markets have shown considerable volatility reflective of future uncertainty. The largest contributing factor to the jitters and instability currently prevalent, has been the staggering fall in the value of the Rupee.
As of today, 1 USD = R60. From 1 USD = R53/54 last year to a staggering R61 this year, the Rupee’s fall has been one of the sharpest globally. The Government and the Reserve Bank of
plan your expenses and investments better.
THE IMPLICATIONS FOR THE ECONOMYLet’s have a look at what the fall in the Rupee value has meant to different sectors — industries and households — who’s lost out and who’s gained.
Losers:The Oil and Gas IndustryOil imports have become costlier, with the government palming off the extra costs on consumers. In line with this, gas/fuel prices have soared, with both petrol and diesel now at R77.73/litre and R57.61/litre respectively. Sustained increase in oil prices will start impacting other household goods, and will potentially have an inflationary impact. The Coal IndustryIndia imports a great deal of coal to generate power. Because of the Rupee fall, the cost of importing coal has shot up. The government-owned Coal India Ltd. does not produce enough coal for the country’s needs, and as a result, most of the coal is imported by private power companies. Recently, the Cabinet Committee on Economic Affairs decided to grant private power companies the ability to pass on the rising costs of imported coal to its consumers. This will further feed inflation, as the increase in coal prices will result in increase in
power prices. This will be passed on to manufacturers and consumers.
The Jewellery IndustryThe jewellery industry has been dealt a huge blow, with scores of small and medium-sized diamond unit owners having to shut shop. Thanks to the weak Rupee, these firms are now being forced to go out of business because the cost of importing stones is proving too high. In addition, the government has temporarily suspended the selling of gold coins and bars by banks and jewellers, in order to slash the import of gold.
The Automobile IndustryThe cost of automobiles has gone up as a consequence of the falling Rupee — the input costs have increased due to import of automobile parts, leading to faltering demand due to the affordability going down.
Outbound TourismTaking a vacation has become excruciatingly costly with everyone feeling the pinch. Because of the rise in fuel prices, flight costs have soared — both domestic and international. The stay cost has also significantly gone up as the Rupee-Dollar equation has worsened. Thus, a vacation abroad will create deep holes in one’s pocket.
Indian students returning post studies overseasIndian students who have attained their degrees abroad are now apprehensive about returning to India in search of job prospects, for the sole reason that their pay packages
will not be attractive in Dollar terms. Naturally, given the current exchange rate, it doesn’t make sense to return and earn in Rupees, only to have to pay back loans in Dollars. A report in the Economic Times states that only 3 or 4 of the 45 – 50 Indian students at Wharton are planning to return to India this year, as against 15 to 20 of a batch of about 30 – 35 students last year.
Indian students aiming to study abroadFor students who plan on studying abroad, there couldn’t be a worse time. Qualifying entrance exams like the GRE and GMAT have become costlier. Because of this, educational budgets will have to be looked at and reworked. GRE/GMAT forms, admission application forms, financial aid request forms, scholarship application forms, tuition fees, etc., are sure to set you back.
FDIs and FIIsForeign Direct Investments (FDIs) and Foreign Institutional Investments (FIIs) are falling, with international investors being impacted by lower returns, on account of lower-than-expected economic growth and a stronger Dollar. This will have a significant impact on investments, as returns from markets could get worse if the money flow reverses.
Gainers:Non-Resident Indians (NRIs)This is a good time for Non-Resident Indians (NRIs) to invest in the realty market. With a strong dollar, they can pay less and acquire property here in India at a steal.
Inbound remittances have seen a surge, with NRIs sending money to India
at such times for local use, like family manitenance. Remittances are much more stable as against deposits, and the economy stands to gain with such inflows.
The Tourism and Hospitality Industry Tourism has seen a big boost, thanks to the falling Rupee. Tourists are making a beeline for India, with booking enquiries for the winter having risen by 15 per cent this year. In conjunction with the tourism sector, the hospitality sector is also doing reasonably well. Hotel bookings and amenities are cheaper for foreign tourists, who are making reservations while the going is good.
Indian ExportersThese are good days for Indian exporters — even if they’re impelled to cut prices, they’ll still manage higher returns, because they are now in a position to hedge less of their exposures, and earn better returns. Large software companies and leather/textile exporters, in particular, will be biggest beneficiaries.
THE WAY FORWARDEven though the Rupee has been going through a particularly rough patch, we believe that the current situation is temporary and will reverse. For consumers, they need to ensure that they plan their expenses in line with the budget. For example, planning holidays to countries equally impacted by rising dollar like Singapore, Australia etc. and for investors, the fall in market could provide good opportunities and entry points which were missed out on previously.
08 Investime JULY 2013
HRA and Home Loan NEXUS & NUANCES
Feature
The deduction of HRA going hand in hand with that on self-occupied property seems paradoxical, as an employee staying in a rented house, by definition, cannot live in a self-occupied property. In other words, a person cannot be in two places at once
A N Shanbhag & Sandeep Shanbhag
mutually exclusive. Examples of this concept are many. Lets take for instance, Sec. 80C (PPF, NSC, ELSS etc.) and Sec. 80D (medical insurance premium). Everyone will agree that both Sec. 80C and Sec. 80D can be separately claimed. But, does it explicitly say so? On the other hand, Sec. 80GG dealing with deduction on rent paid where the taxpayer doesn’t receive HRA, specifically mentions that the taxpayer or his or her spouse/minor children should not own any residential accommodation where the taxpayer resides, performs the duties of his office or employment or carries out his business or profession. The section goes on to further add that if the taxpayer owns accommodation at a place other than that mentioned above, the tax deduction in respect of self occupied property (annual value to be taken as nil) should not be claimed by him. This is express denial. No such provisions exist with respect to HRA.
Senthil has a good question. He says that the deduction of HRA going hand in hand with that on self-occupied property seems
House Rent Allowance (HRA) deduction and tax deduction on home loans are two
independent concepts, and the fact that both deductions can be availed of by the taxpayer at the same time, is an issue that seems to carry widespread confusion and disagreement.
R. S. Kamat says his company doesn’t allow both deductions simultaneously, so he wonders if he could have the specific section
number of the Income Tax Act (ITA) that allows this? Well, we’re afraid that isn’t possible. In income tax language, silence signifies approval. In other words, the ITA need not expressly allow something — lack of express disallowance also signifies intention of approval. HRA is dealt with by Sec. 10(13A), read with Rule 2A. Interest on housing loans is deductible under Sec. 24. Nowhere does it say, neither in Sec. 10(13A) nor in Sec. 24, that the two are
paying rent to the owner spouse, as husband and wife cannot have a commercial relationship with each other. On similar lines, some querists have written in, asking whether rent may be paid to a parent where the property is jointly owned by the taxpayer and the parent. Such a transaction, though theoretically feasible, will be in form and substance assumed to be meant as a tax evasion mechanism, and hence, not advisable.
Lastly, there does exist a related provision that is less commonly known, and hitherto, not been discussed. However, this does not have much to do with HRA and the deduction on interest on home loans, as it has with regards to the system of taxation of self-occupied property. Readers would know that the annual value of one self-occupied property is taken to be nil, and the interest deductible thereunder is capped at R1.50 lakh. Also, as discussed above, such property need not actually be occupied by the owner, rather, it should be meant for self occupation. However, this inability to occupy the property should arise because of the fact that employment, business, or profession, is carried out at some other place. Now Vikram, a taxpayer, owns a house but continues to reside with his parents who live in the same neighbourhood. In other words, Vikram’s own house is vacant not out of any professional or business compulsion, but out of choice and
personal convenience. In such a case, the annual value of the self-occupied house will not be taken as nil. Instead, it will be deemed as a rentable space and the notional rent will be brought to tax. Consequently, the full amount of the interest on housing loans will be tax deductible without any cap. Needless to say, if Vikram were to pay rent to his parents, the HRA deduction will continue to apply. (The authors contribute to INVESTIME regularly)
paradoxical, as an employee staying in a rented house, by definition, cannot live in a self-occupied property. In other words, a person cannot be in two places at once, so how can a property be self-occupied when the occupant is actually occupying another rented property? To resolve this dilemma, we need to examine Sec. 23(2) of the ITA.
As per this section, the term “Self-occupied Property” includes property that cannot be occupied by the owner owing to his employment, business or profession carried on at any other place in a building not belonging to him. In other words, it is not necessary that you have to be occupying or staying in the property, rather, the property should be meant for your occupation.
Narayanan on the other hand stays with his parents in a house belonging to his father. He asks that since having to pay rent is a pre-requisite for the HRA deduction, can he pay rent to his father and claim the deduction? Yes, this can be done. However, the rent paid by Narayanan will be added to his father’s income and taxed in his hands. Also, Narayanan will have to furnish rent receipts to his employer as proof of having paid rent. Note that this arrangement, however, cannot be carried out in the case of the spouse. Married couples sometimes buy the house in any one person’s name. In this case, the other spouse cannot get away with
10 Investime JULY 2013
Interview
According to you, what have been the fundamental reasons behind the persistent decline of the Indian Rupee?INR has been lower due to following reasons:• Higher current account deficit.• Unpredictable portfolio flows.• Lower traction in FDI flows, due to
slower policy decisions, and• Low reserve cover with RBI, leading
to low potential intervention to support INR.
Where do you see the Rupee settling and what would be its impact on investors — in light of the recent measures announced by the RBI?It is difficult to predict the level for settlement of INR. The RBI has been persistent with non-intervention measures to tackle the same. Current liquidity targeted measures are also expected to do the same. INR should settle near its Real Effective Exchange Rate (REER) in the medium term, but it is difficult to predict the short term range.
There have been mixed sentiments regarding the tapering off of the QE3 by the US Fed. What is your take and how would it affect Indian markets in the medium term?QE3 has been affecting the emerging market flows across the globe. The Indian market saw large flows in the
last two years, in the debt segment, which may be the more vulnerable of the lot. However, given the forthcoming election and growth uncertainty, even equity flows may get affected.
What are the reasons for banks not passing on lower interest rates to investors and borrowers?Liquidity has been a major concern with banks for not cutting the lending rates. The deposit growth in the system was slower, despite higher rates due to alternative investments by depositors in assets such as gold .
How long would the depreciation of the Rupee, and the recent sellout by FIIs, impact the Central Bank’s interest rate policy?Depreciation of INR may result in the postponement of policy changes, or may bring forth a CRR hike and/or repo hike, if current measures are not working. That is not our base case. However, the growth focused rate cuts may have to wait for 1-2 quarters.
The government has introduced Inflation Indexed Bonds (IIBs) to help investors hedge their portfolio returns against inflation. How far do you see them succeed, vis-à-vis traditional inflation protection assets such as gold?IIBs are targeted towards retail investors. If inflation rates are low, the accrual on the same may not be attractive. This may leave investors with a lower income. However, if the principal indexation is also taken into account, IIBs could be an attractive proposition. Investors may wait for some time before they take up IIB investments.
What would be the focus of fund managers in the coming 6-12 months, given the volatility in the markets?In fixed income funds, we are focusing on:• Low duration-high asset quality
funds which are also high on accruals.
• Flexi debt funds, which provide flexibility to the fund manager to move duration across the curve and run conservative duration in volatile times.
Mutual fund investments are subject to market risks, read all scheme related documents carefully.The article is for general information only and does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this information. Investors should understand that statements made herein regarding future prospects may not be realised. The views expressed in the article are personal views of the author and do not necessarily reflect the views of HSBC Asset Management (India) Private Limited or any of its associates. Neither this document nor the units of HSBC Mutual Fund have been registered in any jurisdiction. The distribution of this document in certain jurisdictions may be restricted or totally prohibited and accordingly, persons who come into possession of this document are required to inform themselves about, and to observe, any such restrictions.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of HSBC Asset Management (India) Private Limited. HSBC Asset Management (India) Private Limited; 16, V. N. Road, Fort, Mumbai 400 001. Tel: 6614 5000. Email: [email protected].
Depreciation of the Rupee may impact policy changes. Here’s what Sanjay Shah, Senior Vice President and Head of Fixed Income, HSBC AMC has to say
12 Investime JULY 2013
Interview
According to you, what have been the fundamental reasons behind the persistent decline of the Indian Rupee?The Indian industrial sector, for a variety of reasons, has been unable to meet the aggregate domestic demand and savings requirement. Hence, a huge component of this piece is fulfilled by overseas imports, i.e., oil, electronics, machinery, coal, metals, etc. are imported to meet the domestic demand, and gold is imported to fulfill the domestic savings requirement. While some of this import is inevitable, for example — oil, the rest could have been supplanted by domestic supply and domestic investment opportunities. The consequent trade deficit of around US$ 200 Billion, creates a huge net outflow demand for Dollars, which of course will cast a fundamental downward pressure on the Rupee.
Where do you see the Rupee settling and what would be its impact on investors — in light of the recent measures announced by the RBI?That, frankly, is difficult to estimate in the current environment. While the RBI has effectivly scuttled any possibility of carry trade in the forex market (thus ending speculative pressure on the Rupee), the needed inflow support from FDI/FII/ Exports/NRI repatriations still need to be gauged. While the increased
short-term rates may attract interest rate arbitrageurs and mitigate some pressure on the currency, we are not sure whether this is an optimal solution. The reason is because the maturity payouts may only compound the outflow problem over the year, creating a debt trap.
There have been mixed sentiments regarding the tapering off of the QE3 by the US Fed. What is your take on this and how would it affect the Indian markets in the medium term?It is the rising dependence on the FII money flows that has led to excessive volatility in the currency (since QE3 tapering fears primarily affect FII investors). Having said that, while the fears of QE3 tapering in 2014 have been mitigated by the US fed, it is an inevitability, no matter how prolonged it may be. It is this fact, along with other factors, that is keeping the market cautious for some time. Over the longer period, QE3 tapering highlights a more robust US economy, which has traditionally acted as a global growth engine. So if the US economic performance picks up, we can expect a more structural and widespread growth worldwide.
What are the reasons for banks not passing on the lower interest rates to investors and borrowers?RBI has put a very tight screw on
liquidity, with a high penal rate of 10.25 per cent for excessive withdrawal through MSF window. This has increased the premium on cash holdings. For this reason, the banks have an extremely marginal window (if any) to pass the repo rate cuts.
How long would the depreciation of the Rupee, and recent sellout by FIIs impact the Central Bank’s interest rate policy?RBI’s policy seems to be aimed at helping the Rupee find a fresh equilibrium against the dollar. This becomes important since crude prices are also inching up, and may lead to the compounding of imported inflationary pressure on the Indian economy.
Considering the economic slowdown both internationally and domestically, how attractive is the Indian economy from a valuation perspective?The equities market is largely trading at fair value to marginally below its historical average, although many opportunities exist for the discerning investor. Fundamentally, India’s strength is grounded in its aspiring and enterprising demography. This is not going anywhere. Thus, as the ease of business improves, India’s valuation at the current level would also begin to seem attractive. Has there been a shift in investment trends between retail and institutional investors today,
RBI’s policy seems to be aimed at helping the Rupee find a fresh equilibrium against the dollar. Here’s what Laxmi Iyer, Head of Fixed Income & Products, Kotak Mahindra Asset Management Company has to say
compared to 5 years ago? How do you see this panning out 5 years from now?By its very nature, most of the institutional investors tend to be ahead of the curve when it comes to identifying and capturing investment opportunities. Since investment opportunities are time specific, the nature of institutional investment flow also varies according to time. With financial literacy picking momentum, we could see similar behaviour being depicted by retail investors as well. However, this is likely to be gradual in nature.
Despite the growth in AUMs over the years, why does the Mutual Fund industry continue to be under tapped?
More than 60 per cent of India is still agrarian and rural. Most of the urban amenities and information dissipation have still not taken hold in these areas. Even the information and infrastructure penetration in many urban centers is not upto the mark. As a result, even access to basic financial products remains low. In this backdrop, mutual funds, which is a more evolved concept, has had to grapple with the challenge of low financial literacy and under-penetration.
The government has introduced inflation indexed bonds to help investors hedge their portfolio returns against inflation. How far
do you see them succeed, vis-à-vis traditional inflation protection assets such as gold?The inflation index bonds(IIBs) are marked up on WPI inflation numbers. Its success with the retail investor, against other investment products would be dependent on the IIB’s ability to provide positive real interest rates (usually net of consumer inflation) and the ease of liquidity it provides.
Would you advice investors to invest in Gold ETFs at current levels?Gold fundamentally acts as a ‘store of value’, and as such, tends to function inversely in proportion to other asset classes.
“ “WHILE THE INCREASED SHORT TERM RATES MAY ATTRACT INTEREST
RATE ARBITRAGEURS AND MITIGATE SOME PRESSURE ON THE CURRENCY, WE ARE NOT SURE WHETHER THIS IS AN OPTIMAL SOLUTION.
This is why, we advise gold on only that proportion of the portfolio where it can act as a stabilising anchor in times of economic distress. What would be the focus of fund managers in the coming 6-12 months, given the volatility in the markets?At present, discerning debt fund managers are spoilt for choice, as good quality and high standing debt instruments have become available relatively cheap. Having said that, for the initial few weeks, fund managers would be predominantly focused on managing liquidity, and thereafter trying to identify potent investment opportunities.
JULY 2013 Investime 13
14 Investime JULY 2013
CRITICAL ILLNESS INSURANCE POLICY Making an Informed Choice
Feature
With the rising incidence of illnesses such as cancer and heart disease, buying a critical illness policy, either standalone or as a rider added to your regular policy, is a smart idea. Critical illness policies guarantee a lump sum that you can use for any purpose
Contributed by Aditya Birla Insurance Brokers
• Standard medical insurance covers hospitalisation expenses in case of illness or injury;
• Overseas medical insurance insures you from health-related costs while travelling;
• Personal accident policy covers you against death or disability
Health insurance schemes in India are largely classified under public health insurance
schemes such as the Employees’ State Insurance Scheme (ESIS) and the Central Government Health Scheme (CGHS); micro health insurance schemes for
the underprivileged sections of society; and private health insurance schemes.
Private schemes include various types of policies vying for a share of India’s growing, but largely underpenetrated, health insurance market:
covers you for only a fraction of the total costs incurred. This means you have to pay the hefty excess amount from your own pocket.
You may also have to face a break in, or loss of employment, or even need to travel to a different city for specialised treatments. All this involves large, unplanned expenses. With the rising incidence of illnesses such as cancer and heart disease, buying a critical illness policy, either standalone or as a rider added to your regular policy, is a smart idea. Critical illness policies guarantee a lump sum that you can use for any purpose — paying hospital bills, taking care of loans, or as a supplementary source of income during the time you are indisposed.
The checklist Remembering a few simple points can help you choose and manage the policy that is best for you:• Be honest with your medical
history and thorough with your calculations. Age and medical history, including medical conditions running in the family, play an important role in determining the optimum cover that you may need. Hence, do not hide any vital personal information from your insurer. Also, do some research on the cost of treatment of the major illnesses to arrive at a reasonable estimate of the cover you may require.
• Examine the claims history of
the insurer. There are a number of insurance products available in the market, and to make sure you choose the right one, do some research on the insurer’s reputation as far as ease of claim settlements is concerned.
• Make note of the illnesses covered by the policy. It is also important to understand which illnesses are covered by your policy. Most policies cover critical illnesses such as cancer, major organ failure (and transplant), coronary heart disease, stroke, etc. Check for any exclusions, especially for pre-existing medical conditions.
• Check the plan duration, sub-limits, and survival and waiting period clauses. Ask your insurer
whether the policy you are about to buy comes with a lifelong renewal feature or a limited tenure.
• Some insurers may also impose sub-limits on the amount that can be claimed for particular illnesses, so do enquire about this too.
• Most policies also mandate a waiting period after policy issuance, during which the policy cover cannot be used. Be sure you know how long this period is for your policy.
• Insurers could even stipulate that a patient survive a minimum number of days after diagnosis to lodge a claim. Check such clauses with a fine comb.
arising from an accident; and• Critical illness insurance policy.
In this article, we look at what a critical illness insurance policy is all about, and why you need one.
To begin with, there is a misconception that buying a plain vanilla health plan, or being covered by group insurance by your employer, is enough to meet any unforeseen medical requirements. Both of these are flawed assumptions. All health plans don’t cover you for all types of illnesses, and group health plans are only valid for your tenure of employment. Moreover, there is a trend of employers cutting down on the benefits of group coverage, including room rent limits in case of hospitalisation, and removing
parental coverage. So what do you do if you are diagnosed with a critical ailment that takes your expenses beyond the cover promised by your policy? A critical illness insurance policy is the answer.
A stitch in time saves nineAcute or life-threatening medical conditions are every family’s nightmare. Such illnesses could involve exorbitant costs — for instance, according to Business Today, the cost of a single chemotherapy session could be to the tune of R90,000. Add the doctors’ fees, hospitalisation and recuperation costs, and you may well discover that your health policy
“ “CRITICAL ILLNESS POLICIES GUARANTEE A LUMP SUM THAT YOU CAN USE FOR ANY PURPOSE — PAYING HOSPITAL BILLS, TAKING CARE OF LOANS, OR AS A SUPPLEMENTARY SOURCE OF INCOME DURING THE
TIME YOU ARE INDISPOSED.
16 Investime JULY 2013
• Buying a standalone cover or rider? As stated above, you can either buy a standalone critical illness policy, or add one as a rider to your existing health policy. Both have their own advantages. While the sum insured in the case of a rider is typically not more than the sum insured as per your base policy, they are easy to manage as they are clubbed with the base policy. On the other hand, with independent policies, you could opt for a higher sum insured and could also renew it, independent of the base policy. Decide your option based on your need.
• Other product-specific features. Check if your plan comes with a guaranteed or a reviewable premium; whether it allows you to increase your sum insured; whether it offers you a no-claims bonus, etc. Some policies also offer specific benefits to women suffering from breast, ovarian or cervical cancer, and also extend partial coverage to their children and a bonus for their education.With adequate due diligence, a
critical illness insurance policy can add a valuable layer of security to your health insurance portfolio.
Summary of key insights• Critical illness insurance provides
an essential cushion in the case of acute ailments. With high incidence of lifestyle, diseases, alongside rising disposable incomes, the penetration of both health insurance and critical illness insurance policies is expected to increase.
• Increased competition among a large number of players is expected to result in innovative products as well as better service standards. However, the onus will still be on the buyer
to make sure that they choose the right policy based on the checklist given above.
• As with all other sectors of insurance, future performance of the sector will depend on consumer education on the need for insurance as well as the available choices. On the seller’s side, improved transparency on product features and claims processes will help build trust.
Appendix – key health insurance trends in India• The health insurance
industry in India saw 18.7 per cent annual growth in gross written premiums during FY2011-12. Its share in the non-life insurance industry shrank slightly and stood at 22.8 per cent in the same period.
(Source: Towers Watson)• The IRDA has proposed some
new recommendations that are expected to help expand the ambit of coverage, as well as protect the interests of the insured. These recommendations include lifelong coverage, entry age cap at 65 years, no loading on individual claims, standardisation of definitions, exclusions and forms, not reducing the no-claims bonus to zero in case a claim is made, but reducing it at the same rate at which it would have accrued, etc.
• An important change proposed
by the IRDA is that third party administrators will no longer accept or reject claims, shifting that responsibility entirely on the insurers.
• Another emerging trend involves bringing non-allopathic treatment lines (such as those under the government’s AYUSH framework) under insurance coverage, provided treatment is done at accredited hospitals.
• Group health insurance remains a bleeding category for general insurers, with a Hindu Business Line report pegging the claims ratio at 120 per cent. The same report states that group health premiums will stay flat in FY2013, owing to increased price competition from private insurers as well as topline pressures.
18 Investime JULY 2013
PRIME NUMBERSInvestimeSnap shots
Source: NSE, ABML Research
NIFTY RELATIVE VALUATION METRICS (1 YEAR FORWARD)
Index Name June-13 May-13 Absolute (%)INDIAN INDICES
EQUITYCNX Midcap 7,342.40 7,821.80 -6.13
CNX Nifty 5,842.20 5,985.95 -2.40
CNX Nifty Junior 11,546.65 12,312.05 -6.22
S&P BSE MIDCAP 5,964.50 6,389.47 -6.65
S&P BSE Sensex 19,395.81 19,760.30 -1.84
S&P BSE SMALLCAP 5,643.52 5,943.46 -5.05
S&P BSE-100 5,802.30 5,991.11 -3.15
S&P BSE-200 2,323.83 2,409.22 -3.54
S&P BSE-500 7,164.06 7,441.89 -3.73SECTORAL INDICES
S&P BSE AUTO 10,715.77 11,166.34 -4.04
S&P BSE Bankex 13,257.76 14,261.24 -7.04
S&P BSE Capital Goods 9,111.38 9,407.38 -3.15
S&P BSE Consumer Durables 6,134.72 7,695.00 -20.28
S&P BSE FMCG 6,458.09 6,772.13 -4.64
S&P BSE Health Care 8,845.26 8,846.91 -0.02
S&P BSE IT 6,255.10 6,065.34 3.13
S&P BSE METAL 7,753.76 8,503.01 -8.81
S&P BSE Oil & Gas 8,900.41 8,654.79 2.84
S&P BSE Power 1,622.55 1,755.12 -7.55
S&P BSE PSU 6,162.99 6,655.84 -7.40
S&P BSE Realty 1,511.02 1,684.92 -10.32
S&P BSE Teck 3,679.08 3,602.53 2.12
WORLD INDICESCAC 40 3,738.91 3,948.59 -5.31DAX 7,959.22 8,348.84 -4.67Dow Jones 14,909.60 15,115.57 -1.36FTSE 100 6,215.50 6,583.10 -5.58Hang Seng 20,803.29 22,392.16 -7.10Nasdaq 3,403.25 3,455.91 -1.52Nikkei 225 13,677.32 13,774.54 -0.71Straits Times 3,150.44 3,311.37 -4.86Taiwan Weighted 8,062.21 8,254.80 -2.33
INDUSTRY QUARTERLY AVERAGE AUM (R Crores)Fund House June-13 Mar-13 Change % Change
AUM above 30,000 Crs.HDFC Mutual Fund 105,340 102,096 3,244 3.18Reliance Mutual Fund 99,736 96,851 2,885 2.98ICICI Prudential Mutual Fund 91,819 87,968 3,851 4.38Birla Sun Life Mutual Fund 79,846 77,144 2,701 3.50UTI Mutual Fund 74,707 69,450 5,256 7.57SBI Mutual Fund 59,962 55,760 4,201 7.53Franklin Templeton Mutual Fund 42,960 42,897 63 0.15IDFC Mutual Fund 39,091 33,068 6,022 18.21Kotak Mahindra Mutual Fund 37,700 35,945 1,756 4.88DSP Blackrock Mutual Fund 33,041 32,342 699 2.16
AUM BETWEEN 10,000 TO 30,000 Crs.TATA Mutual Fund 20,883 19,897 986 4.95Deutsche Mutual Fund 18,563 18,114 449 2.48Sundaram Mutual Fund 15,459 14,871 588 3.95JP Morgan Mutual Fund 14,883 15,856 -972 -6.13Religare Invesco Mutual Fund 13,836 14,229 -394 -2.77L&T Mutual Fund 13,781 11,169 2,612 23.39Axis Mutual Fund 12,426 12,256 170 1.39
AUM UPTO 10,000 Crs.Canara Robeco Mutual Fund 7,311 8,944 -1,633 -18.26Baroda Pioneer Mutual Fund 7,140 7,303 -163 -2.23LIC Mutual Fund 6,818 7,185 -367 -5.10JM Financial Mutual Fund 6,755 7,411 -656 -8.86HSBC Mutual Fund 5,891 5,230 661 12.63IDBI Mutual Fund 5,587 6,350 -763 -12.01Principal PNB Mutual Fund 4,848 5,573 -725 -13.01Peerless Mutual Fund 4,538 4,875 -336 -6.90Taurus Mutual Fund 4,464 4,731 -267 -5.65Goldman Sachs Mutual Fund 4,309 4,800 -490 -10.22BNP Mutual Fund 3,841 3,726 115 3.08Indiabulls Mutual Fund 3,219 2,639 580 21.97Morgan Stanley Mutual Fund 3,022 2,660 361 13.59Pramerica Mutual Fund 2,544 2,592 -48 -1.86Union KBC Mutual Fund 2,477 3,118 -641 -20.55ING Mutual Fund 1,262 1,325 -63 -4.76PineBridge Mutual Fund 1,206 1,099 107 9.75BOI AXA Mutual Fund 866 1,104 -238 -21.54Mirae Mutual Fund 524 540 -16 -3.00Motilal Oswal Mutual Fund 491 539 -47 -8.76Quantum Mutual Fund 305 293 12 4.19Escorts Mutual Fund 268 255 13 5.01Sahara Mutual Fund 244 254 -10 -3.76Edelweiss Mutual Fund 239 259 -20 -7.62India Infoline Mutual Fund 214 210 5 2.18Daiwa Mutual Fund 131 266 -135 -50.64PPFAS Mutual Fund 114 0 114 -Average Total 852,663 823,195 29,468 3.58
20 Investime JULY 2013
Fund Performance
Birla Sun LifeINSURANCE
Fund Performance as on 30th June 2013
Pension Nourish Growth EnrichInception Date 12-Mar-03 18-Mar-03 12-Mar-03
Fund Return BM Fund Return BM Fund Return BMLast 1 Year 10.23% 10.26% 10.60% 10.17% 9.46% 9.70%Last 2 Year 8.65% 8.66% 8.03% 7.86% 6.33% 6.36%Last 3 Year 7.00% 7.21% 6.69% 6.67% 5.50% 5.54%Last 4 Year 7.22% 6.99% 7.77% 7.02% 7.89% 6.72%Last 5 Year 10.09% 7.90% 11.81% 7.99% 11.38% 7.78%Since Inception 8.20% 6.04% 10.23% 6.96% 11.66% 8.18%Asset Held (R in Crores) 14 38 167
Indivivual Titanium I Titanium II Titanium IIIInception Date 16-Dec-09 16-Mar-10 16-Jun-10
Fund Return BM Fund Return BM Fund Return BMLast 1 Year 9.96% - 9.93% - 9.32% -Last 2 Year 2.16% - 2.49% - 3.58% -Last 3 Year 4.11% - 4.18% - 2.19% -Since Inception 4.76% - 4.50% - 2.28% -Asset Held (R in Crores) 55 24 7
Indivivual Platinum Plus I Platinum Plus II Platinum Plus III Platinum Plus IVInception Date 17-Mar-08 8-Sep-08 15-May-09 15-Sep-09
Fund Return BM Fund Return BM Fund Return BM Fund Return BMLast 1 Year 9.59% - 9.47% - 10.10% - 9.40% -Last 2 Year 1.07% - 0.70% - 1.13% - 0.49% -Last 3 Year 3.10% - 3.18% - 3.30% - 3.35% -Last 4 Year 7.18% - 7.79% - 7.11% - - -Last 5 Year 6.74% - - - - - - -Since Inception 3.88% - 12.10% - 7.14% - 4.48% -Asset Held (R in Crores) 351 607 720 548
Indivivual Balancer Enhancer Creator Magnifier Value MomentumInception Date 18-Jul-05 22-Mar-01 23-Feb-04 12-Aug-04 9-Mar-12
Fund Return BM Fund Return BM Fund Return BM Fund Return BM Fund Return BMLast 1 Year 10.35% 9.81% 10.06% 9.76% 9.36% 9.50% 8.82% 8.19% -2.39% 8.91%Last 2 Year 8.03% 7.18% 7.01% 6.77% 4.89% 5.10% 0.74% 1.20% - -Last 3 Year 6.91% 6.11% 5.88% 5.83% 4.62% 4.64% 1.69% 1.88% - -Last 4 Year 7.98% 6.74% 7.63% 6.74% 8.15% 6.65% 7.42% 5.92% - -Last 5 Year 11.44% 7.78% 9.80% 7.39% 12.55% 7.61% 7.82% 6.38% - -Since Inception 9.87% 6.50% 11.72% 7.97% 12.22% 9.63% 12.45% 3.54% 0.40% 8.27%Asset Held (R in Crores) 35 6598 328 958 7Indivivual Maximiser Multiplier Super 20 Liquid Plus Pure EquityInception Date 12-Jun-07 30-Oct-07 6-Jul-09 9-Mar-12 9-Mar-12
Fund Return BM Fund Return BM Fund Return BM Fund Return BM Fund Return BMLast 1 Year 6.33% 8.23% 1.79% -0.68% 11.04% 9.44% 8.08% 7.53% 12.85% -Last 2 Year -2.28% 0.41% -0.94% -4.11% 4.11% 0.80% - - - -Last 3 Year -1.12% 1.20% -1.74% -3.52% 4.88% 2.23% - - - -Last 4 Year 5.15% 5.78% 9.10% 6.32% - - - - - -Last 5 Year 8.17% 6.10% 11.24% 5.66% - - - - - -Since Inception 5.67% 4.50% 2.50% -0.70% 9.85% 6.89% 7.51% 7.73% 10.21% -Asset Held (R in Crores) 2012 331 260 11 3
Indivivual Assure Income Advantage Protector BuilderInception Date 12-Sep-05 22-Aug-08 22-Mar-01 22-Mar-01
Fund Return BM Fund Return BM Fund Return BM Fund Return BMLast 1 Year 9.95% 8.70% 11.45% 10.34% 10.17% 10.26% 11.15% 10.17%Last 2 Year 9.58% 8.54% 10.67% 9.43% 8.68% 8.66% 8.46% 7.86%Last 3 Year 8.51% 7.41% 8.97% 7.74% 7.13% 7.21% 6.94% 6.67%Last 4 Year 8.36% 6.67% 8.78% - 7.40% 6.99% 8.15% 7.02%Last 5 Year 10.28% 7.49 - - 9.64% 7.90% 10.68% 7.99%Since Inception 9.37% 7.30% 11.91% 6.91% 8.42% 6.04 10.27% 6.96%Asset Held (R in Crores) 129 385 419 276
Indivivual Platinum Premier Platinum Advantage Foresight 5 Pay Foresight Single PayInception Date 15-Feb-10 20-Sep-10 22-Feb-11 22-Feb-11
Fund Return BM Fund Return BM Fund Return BM Fund Return BMLast 1 Year 10.15% - 10.44% - 10.08% - 10.81% -Last 2 Year 1.01% - 2.81% - 2.42% - 3.20% -Last 3 Year 3.24% - - - - - - -Since Inception 4.76% - 0.13% - 3.16% - 3.68% -Asset Held (R in Crores) 904 716 942 68
JULY 2013 Investime 21
Reserve related to tapering of bond buying program.
Crude Oil – Crude oil prices are likely to remain sideways to up. Crucial resistance is at $108 and support is at $101 at Nymex. On MCX, resistance is at R6,500 and support is at R6,000 (August month).Copper OutlookCopper moved up by nearly 4% at MCX and 2% at LME finding support from positive second quarter GDP data from US. As per the data, US economy grew 1.7% during second quarter supported by rise in consumer spending and the data came well above expectations. However prices were unable to break the previous month range as sluggish data from China weighed at higher levels. Latest data from China suggests that its manufacturing activity growth is at 11 month low. China’s official Purchasing Managers’ Index (PMI), released on 1st August, registered a surprise gain for July, rising to 50.3 from 50.1 the previous month. Any reading above 50 indicates activity is expanding. But a separate China manufacturing PMI published by HSBC and Markit said activity was contracting, with the index sinking to an 11-month low of 47.7, down from June’s final reading of 48.2. China is world’s top most consumer of base metals. Going ahead, we expect that these factors will continue to weigh until China shows significant economic recovery.
Copper – Copper prices are expected to remain sideways. At LME copper prices are having crucial resistance at $7100 and support is at $6700. On MCX copper is having crucial resistance at R428 and support is at R405. Break above R430 is crucial for taking prices higher towards R440.
COMMODITIES
InvestimeExpert’s view
Bullion OutlookGold prices recovered from its previous month low finding support from US Federal Reserve statements that it will continue its monetary easing measures for foreseeable future. Also in its latest interest rate meet on 31st August, the Fed gave no indications of timing to taper its monthly bond buying program. US Federal Reserve gave no hints on its QE program in its recent policy meeting and kept interest rates unchanged.The monetary easing policy by major central banks was a key driver for gold rally in past decade. The first indication of an end to monetary easing program after a decade weighed heavily on the bullion complex last month. But no clear direction to end the program provided momentum support this month. Gold prices recovered by 7% at Comex in July on monthly basis and nearly 10% in Indian markets finding support from rupee depreciation. Going ahead we expect gold and silver prices to remain range bound amidst no clear hints over monetary easing program by US Federal Reserve, positive developments in US economy which will reduce safe haven appeal of precious metals. Liquidation of speculative longs if continues will weigh on its prices.
Gold – Gold trend is likely to remain sideways. Key resistance at Comex is $1350 & MCX at R29,000. Key support at Comex is $1300 and at MCX is at R27,000. Silver - Silver is expected to remain sideways. Crucial resistance is at $20.50 and support is at $19.20. Crucial resistance is at R42,500 and support is at R40,000 (Sept Contract MCX).
Energy OutlookCrude oil prices continued its rally for second consecutive month finding support from drop in weekly inventory during the month of July and positive data from US. Prices rallied by 11% at MCX and 9% at Nymex. Prices rose by 5% on monthly basis in June amidst Middle East tension and economic optimism related to US. As per the latest data the inventory is at 364.7 mmbbl (week ending 26/07/13) up by 0.4 mmbbl from previous week and up by 9.0 mmbbl from year earlier. However the overall inventories levels are running above 5 year average levels and for prices to sustain at higher levels, market require support mainly from demand side. Hence positive data from major nations will be major supportive factor for the prices to rally.Going ahead we expect that prices will find short term support from political turmoil, positive data from US and no hints from US Federal
1,2001,2501,3001,3501,4001,4501,5001,5501,6001,6501,7001,7501,8001,850
19,00020,50022,00023,50025,00026,50028,00029,50031,00032,50034,000
5-Au
g-12
19-A
ug-1
22-
Sep-
1216
-Sep
-12
30-S
ep-1
214
-Oct
-12
28-O
ct-1
211
-Nov
-12
25-N
ov-1
29-
Dec
-12
23-D
ec-1
26-
Jan-
1320
-Jan
-13
3-Fe
b-13
17-F
eb-1
33-
Mar
-13
17-M
ar-1
331
-Mar
-13
14-A
pr-1
328
-Apr
-13
12-M
ay-1
326
-May
-13
9-Ju
n-13
23-J
un-1
37-
Jul-1
321
-Jul
-13
Gold prices in MCX & Comex
MCX (LHS) Comex (RHS)
78
83
88
93
98
103
108
113
4,000
4,400
4,800
5,200
5,600
6,000
6,400
6,800
5-A
ug-1
2
22-A
ug-1
2
8-Se
p-12
25-S
ep-1
2
12-O
ct-1
2
29-O
ct-1
2
15-N
ov-1
2
2-D
ec-1
2
19-D
ec-1
2
5-Ja
n-13
22-J
an-1
3
8-Fe
b-13
25-F
eb-1
3
14-M
ar-1
3
31-M
ar-1
3
17-A
pr-1
3
4-M
ay-1
3
21-M
ay-1
3
7-Ju
n-13
24-J
un-1
3
11-J
ul-1
3
28-J
ul-1
3
Crude Oil prices in Nymex & MCX
MCX (LHS) Nymex (RHS)
350360370380390400410420430440450460470
6,0006,3006,6006,9007,2007,5007,8008,1008,4008,700
5-A
ug-1
2
22-A
ug-1
2
8-Se
p-12
25-S
ep-1
2
12-O
ct-1
2
29-O
ct-1
2
15-N
ov-1
2
2-D
ec-1
2
19-D
ec-1
2
5-Ja
n-13
22-J
an-1
3
8-Fe
b-13
25-F
eb-1
3
14-M
ar-1
3
31-M
ar-1
3
17-A
pr-1
3
4-M
ay-1
3
21-M
ay-1
3
7-Ju
n-13
24-J
un-1
3
11-J
ul-1
3
28-J
ul-1
3
Copper prices in LME & MCX
LME (LHS) MCX (RHS)
22 Investime JULY 2013
EQUITIES
InvestimeExpert’s view
Markets ended marginal lower in July, as the sharp fall in rupee spurred concern that
capital outflows will accelerate. Though market supported well by defensive packs of IT, Pharma and FMCG shares, mid and small cap shares continued to trade under pressure, reflecting investors pessimism and expectation of deterioration in the business environment. Rupee weakened ~2% this month and reached to a record low amid concern of tapering QE from Fed would impact capital flows to the country. Government bonds dropped in July, pushing the 10-yr yield up by ~75 bps, the biggest monthly gains since March 2009.
Monsoon rains has been impressive for the season, which is crucial for the agricultural output that contributes around 16% to India’s GDP and the livelihood of approximately 60% of the workforce. Monsoon as of now are 16% above normal, increasing prospects of bumper Kharif and Rabi crop thereby increasing the purchasing power of the rural population besides helping in containing the food inflation. Government is proactively engaged in various reforms measure i.e. inviting FDI in almost 12 sectors including telecom and long awaited defence for ‘state-of-the-art’ technology. While they are steps in the right direction intended to create a dollar deluge, unfortunately these measures have met with little enthusiasm from investors. Recent output data too were not encouraging with core industries growing at 0.1% in June.
Foreign inflows were tepid and down for last two consecutive months. FII’s were net seller ~$1.2 bn in July after a ~2.8 bn sell-off in June. YTD inflows stood at $12.2bn. Sensex ended marginal lower (-0.3%) in July. YTD it is down 0.4% and have significantly underperformed developed markets (YTD - S&P +19%, UK +11%, Japan +31%, Germany +8.7% and France +9.4%).
Sector-wise, banking stocks saw sharp correction after a series of measure announced by RBI to stem rupee fall. It lowered the overall bank
limit for borrowing under the daily LAF for each bank to 0.5% of deposits from 1%. RBI also said banks now need to maintain 99% of their daily CRR with RBI compared with 70% currently. BSE Bankex index fell 13.7%. The shares of wholesale funded banks like Axis Bank (-22%), Yes Bank (-30%) and NBFCs (i.e. LIC Housing down 35%) fell most in July. On results front, private banks like HDFC Bank, IndusInd bank continued to show impressive performance reflecting the respective bank’s ability to withstand the challenging environment.
Realty index was down 12.8%, second biggest index looser. Property shares remained under pressure, after last month cabinet approved a bill to set up a real estate regulator. RBI’s current measures of tightening liquidity are also going to hit on real-estates profitability. DLF fell 17.3% in July.
PSU stocks continued to trade under pressure due to lack of FII participation and continued weakening of domestic growth. Most of the PSU’s companies (offered under disinvestment) already trading below their OFS price. Capital goods, Power and Infrastructure companies had seen sharp fall in share prices. With overall economy in downtrend, poor execution of existing projects, weak rupee and lack of fresh investment, the companies with high debt on book were under pressure. BSE Capital Goods index fell 9.7% and BSE Power down 7.8%. Results so far are of mixed-bag. We have seen dismal results across segment (capital goods). Guidance from L&T is also not encouraging and the future order book is the only positive signal. Project executions continue to remain a major drag.
Only saving grace for markets was IT and FMCG index. BSE IT
index was up 19.2% in July while FMCG up 5.2%. Healthcare index ended 2.6% higher. FMCG results were in-line. Gross margin expanded due to softening of commodity prices. Technology firms i.e. Infosys, TCS, Mindtree, KPIT Cummins posted a healthy revenue growth of 2.5-4% (Q-o-Q). Overall sector commentary marked optimistic outlook and signs of discretionary spending is coming back.
Going forward, markets might continue to be volatile on account of (1) weak currency, (2) poor foreign inflows and (3) continued downtrend in economy growth. Market is expected to remain range bound now as the banking sector (highest weightage on Nifty, Sensex) will struggle to make headway. While valuations and sentiments protect the downside, but draining global and local liquidity and fresh growth uncertainty will cap the upside. Investors continue to focus on quality stocks and are avoiding cyclicals. Falling inflation coupled with pre-election spending to aid consumer spending. With the RBI’s monetary policy meet not throwing any negative surprise, investor will try to gauge the U.S. Fed’s approach on tapering of QE and its likely impact on investors risk preference.
Indices 28-Jun-13 28-May-13 Absolute Returns (%)
BSE IT 7,458.19 6,255.10 19.23 CNX Nifty Index 5,742.00 5,842.20 (1.72)S&P BSE 100 5,707.16 5,802.30 (1.64)S&P BSE 200 2,270.93 2,323.83 (2.28)S&P BSE 500 6,985.56 7,164.06 (2.49)S&P BSE AUTO Index 10,568.80 10,715.77 (1.37)S&P BSE BANKEX 11,440.96 13,257.76 (13.70)S&P BSE Capital Goods 8,227.04 9,111.38 (9.71)S&P BSE Consumer Durables 6,262.38 6,134.72 2.08 S&P BSE FMCG 6,791.78 6,458.09 5.17 S&P BSE Health Care 9,073.98 8,845.26 2.59 S&P BSE METAL Index 6,882.46 7,753.76 (11.24)S&P BSE Mid-Cap 5,543.13 5,964.50 (7.06)S&P BSE OIL & GAS Index 8,578.60 8,900.41 (3.62)S&P BSE Power Index 1,495.56 1,622.55 (7.83)S&P BSE PSU 5,449.81 6,162.99 (11.57)S&P BSE Realty Index 1,316.95 1,511.02 (12.84)S&P BSE SENSEX 19,345.70 19,395.81 (0.26)S&P BSE Small-Cap 5,311.06 5,643.52 (5.89)S&P BSE TECk Index 4,295.35 3,679.08 16.75
JULY 2013 Investime 23
The Index of Industrial Production (IIP) for the month of May declined by 1.59 per cent, its first contraction in 5 months, significantly lower than the market expectations of 1.60 per cent growth. The IIP for April’13 has been revised downwards to 1.89 per cent from 2.3 per cent reported earlier. Core sector growth for June came down to 0.1 per cent growth Y-o-Y from 2.31 per cent growth in May. IIP growth contracted in May and the outlook remains weak going ahead due to global economic slowdown and slow investment by corporates.
Indian exports contracted by 4.6 per cent (Y-o-Y) to USD 23.79 bn, while imports declined by 0.4 per cent(Y-o-Y) to USD 36.06 bn (lowest in last 26 months) which led to a trade deficit of USD 12.25 bn. According to some media report decline in imports were largely due to lower imports of gold and silver to the tune of USD 2.45 bn as compared to USD 8.4 bn in the month of May. Exports’ contraction was a surprise and risks remain in the form of weak global economic growth and the fall of Rupee in the past few months may see higher import numbers and therefore a higher trade deficit.
Overall, interest rates may be under some pressure due to the recent developments both domestic and international, like the probability of the tapering off of the QE3, the Rupee depreciation and the widening current account deficit. Yields are expected to remain high till RBI reverses the measures it has announced. This can happen only if the Rupee stabilizes. Any further fall in the Rupee may invite further measures from the RBI. This may again put pressure on yields. The adverse impact may be felt more at the long end of the yield curve and less at the short end.
24 Investime JULY 2013
RBI has left all the key rates unchanged in the monetary policy review announced on 30th July. It is in accordance with market expectation that RBI may not cut the rates in the light of the
liquidity tightening actions which the RBI introduced in two tranches in the last couple of weeks. RBI has stated that so far, that is, in the last two years the monetary policy actions have been guided by the inflation-growth dynamics. This is basically an internal phenomenon. But now external or global factors have also come in. There is an enhanced influence of global factors on the domestic economy and therefore, the RBI has been guided by the external factors too.
Average liquidity deficit reduced to INR 53,011 Crs in July compared to INR 63,800 Crs in June. Call rates averaged 7.05 per cent in July against 7.20 per cent in June, but it has increased to 9.5 per cent in last week of July. Fall in deficit is due to RBI capping LAF window to 1 per cent of NDTL and then further reducing it to 0.50 per cent of each bank’s NDTL effectively capping repo window to INR 37,500 Crs. 1 year CP & CD rates are around 11.10 per cent and 9.90 per cent respectively.
The Rupee remained weak during the month and has seen some rebound post measures taken by the RBI to make liquidity tighter so that it becomes expensive to borrow funds. FIIs continue to remain sellers in July as they sold USD 3bn of debt and equity on top of the USD 7.5bn in June. FIIs have been selling their debt holdings and have sold USD 3.18bn YTD. Net FII inflows (equity –debt) have become USD 9.1bn. FII investments into India going ahead will be dependent on the Rupee movement and its stability as a weaker Rupee can lead to exits by FIIs due to redemptions seen in emerging markets funds and ETFs. The Rupee has remained range bound since the RBI measures taken during the past few weeks, and will be guided further by RBI actions, FII flows and USD movement.
The Wholesale Price Index (WPI) came in line with the market expectations (4.90 per cent), at 4.86 per cent in June’13 but higher than 4.70 per cent in May’13. WPI for June’12 was at 7.58 per cent. The WPI for April’13 has been revised downwards from 4.89 per cent to 4.77 per cent. Core inflation also fell to 2.02 per cent in June 13 from 2.43 per cent in May’12 and 5.26 per cent in June’12. Inflation may head further down in the coming months supported by base effect and better than expected rainfalls. The lower WPI along with fall in core inflation below 3 per cent provides comfort to RBI to remain dovish. The CPI in the month of June rose to 9.87 per cent against the market expectations of 9.30 per cent due to the rise in food inflation. The CPI for February was the highest number after the series was started in 2010. CPI will start heading down once the base effect takes place along with fall in food prices due to the onset of a better than expected monsoon. Source: CMIE
IIP - Sector Wise Growth Rate (%)May-13 Apr-13 May-12
Sector - WiseMining (5.69) (3.29) (0.69)Manufacturing (2.01) 2.31 2.58Electricity 6.22 4.19 5.87Use Bsed clssificationBasic goods (0.45) 2.03 4.35Capital goods (2.68) (0.14) (8.57)Intermediate goods 1.48 2.61 3.41Consumer goods (4.01) 2.08 4.35Consumer durables (10.38) (8.85) 9.73Consumer non-durables 1.66 11.53 (0.07)IIP (1.59) 1.89 2.47
InvestimeExpert’s view
FIXED INCOME
Performance as on 28th June 2013
DebtMutual Fund Schemes
Investime Top Picks
Benchmark IndexAverage AUM Average
Maturity in Days
Amount Invested
(R)
1 Year 3 Years 5 Years
Total (R Cr) Current Value (R)
CAGR (%)
Current Value (R)
CAGR (%)
Current Value (R)
CAGR (%)
Short Term FundsAxis Short Term Fund(G) Crisil Short Term Bond Fund Index 992 763 10000 10967.10 9.67 12773.75 8.49Birla SL Short Term Fund(G) Crisil Short Term Bond Fund Index 5347 - 10000 11032.32 10.32 12899.70 8.85 15058.31 8.52DWS Short Maturity Fund(G) Crisil Short Term Bond Fund Index 1331 821 10000 11029.22 10.29 12783.98 8.52 15716.13 9.45HSBC Income-Short Term Plan(G) Crisil Short Term Bond Fund Index 1139 673 10000 10926.89 9.27 12689.13 8.25 14423.40 7.59ICICI Pru Short Term Plan(G) Crisil Short Term Bond Fund Index 5564 982 10000 11037.74 10.38 12691.97 8.26 15619.88 9.32IDFC SSIF-ST-Reg(G) Crisil Short Term Bond Fund Index 3854 467 10000 10930.09 9.30 12606.40 8.02 15049.14 8.51JPMorgan India ST Income(G) Crisil Short Term Bond Fund Index 1283 768 10000 10966.87 9.67 12926.23 8.92Kotak Bond-STP(G) Crisil Short Term Bond Fund Index 2214 756 10000 11023.45 10.23 12575.80 7.93 15098.07 8.58Morgan Stanley ST Bond-Reg(G) Crisil Short Term Bond Fund Index 431 517 10000 11049.36 10.49 12930.97 8.94PineBridge India Short Term Fund(G) Crisil Short Term Bond Fund Index 763 424 10000 10918.87 9.19 12893.15 8.83 14175.79 7.22Reliance STF(G) Crisil Liquid Fund Index 3376 956 10000 11030.40 10.30 12708.49 8.31 15405.99 9.02Religare Invesco Short Term Fund(G) Crisil Short Term Bond Fund Index 2681 709 10000 10907.18 9.07 12863.78 8.75 14537.60 7.76Templeton India ST Income Plan(G) Crisil Short Term Bond Fund Index 6306 840 10000 11088.39 10.88 12921.68 8.91 15886.70 9.69Benchmark Crisil Short Term Bond Fund Index 10000 10933.17 9.33 12562.32 7.89 14657.52 7.94
Crisil Liquid Fund Index 10000 10814.46 8.14 12598.47 8.00 14107.71 7.12Income FundsBirla SL Income Plus-Ret(G) Crisil Composite Bond Fund Index 5144 - 10000 11363.94 13.64 13095.87 9.40 16082.13 9.96Canara Rob Income-Reg(G) Crisil Composite Bond Fund Index 359 2493 10000 11202.50 12.03 12885.72 8.81 17584.27 11.94DSPBR Strategic Bond-Reg(G) Crisil Composite Bond Fund Index 3734 2081 10000 11063.39 10.63 12845.81 8.70 14349.52 7.48DWS Premier Bond Fund(G) Crisil Composite Bond Fund Index 1216 1340 10000 11004.35 10.04 12473.80 7.64 16011.30 9.86HDFC Income Fund(G) Crisil Composite Bond Fund Index 5109 3548 10000 11173.12 11.73 12794.31 8.55 15637.88 9.34ICICI Pru Income-Reg(G) Crisil Composite Bond Fund Index 4789 3705 10000 11254.67 12.55 12713.61 8.32 16483.25 10.50JPMorgan India Active Bond Fund(G) Crisil Composite Bond Fund Index 1550 2491 10000 10914.99 9.15 12342.96 7.26 13247.20 5.78Kotak Bond Fund - Plan A(G) Crisil Composite Bond Fund Index 6971 2592 10000 11198.92 11.99 13061.18 9.30 16406.33 10.40Reliance Income(G) Crisil Composite Bond Fund Index 5193 3216 10000 11246.10 12.46 12854.23 8.72 15854.32 9.64SBI Magnum Income(G) Crisil Composite Bond Fund Index 5266 2584 10000 11409.38 14.09 13314.33 10.00 14777.93 8.11Tata Income Fund(G) Crisil Composite Bond Fund Index 1272 2435 10000 11279.74 12.80 12703.60 8.30 13727.56 6.53UTI Bond Fund(G) Crisil Composite Bond Fund Index 2969 1858 10000 11324.59 13.25 13412.34 10.27 15643.68 9.35Benchmark Crisil Composite Bond Fund Index 10000 11072.79 10.73 12592.39 7.98 14641.48 7.92Gilt FundsBirla SL G-Sec-LT(G) I-Sec Li-BEX 549 - 10000 11375.30 13.75 13183.68 9.64 18101.40 12.59HDFC Gilt-Long Term Plan(G) I-Sec Li-BEX 368 3997 10000 11307.41 13.07 12831.83 8.66 14738.50 8.06ICICI Pru Gilt-Invest(G) I-BEX (I-Sec Sovereign Bond Index) 509 4041 10000 11262.20 12.62 13027.38 9.21 17290.64 11.56IDFC G Sec-Invest-Reg(G) I-Sec Composite Gilt Index 294 1924 10000 11475.71 14.76 13655.94 10.93Kotak Gilt-Invest-Reg(G) I-Sec Composite Gilt Index 972 3957 10000 11299.08 12.99 13377.31 10.18 16834.74 10.97LIC Nomura MF G-Sec-Reg(G) I-Sec Composite Gilt Index 52 2604 10000 10901.90 9.02 12401.82 7.43 13615.32 6.36Reliance Gilt Securities Fund(G) I-Sec Li-BEX 290 3143 10000 11438.68 14.39 13026.28 9.20SBI Magnum Gilt-LTP(G) I-Sec Li-BEX 281 2643 10000 11585.99 15.86 13148.92 9.55 13650.62 6.41Templeton India G-Sec-Comp(G) I-Sec Composite Gilt Index 108 3132 10000 11086.07 10.86 12433.71 7.52 15320.52 8.90UTI Gilt Adv-LTP(G) I-Sec Li-BEX 238 2606 10000 11193.39 11.93 13072.46 9.33 15925.38 9.74Benchmark I-Sec Li-BEX 10000 11436.84 14.37 13265.84 9.87 16932.22 11.10
I-Sec Composite Gilt Index 10000 11189.28 11.89 12917.96 8.90 15918.43 9.74I-BEX (I-Sec Sovereign Bond Index) 10000 11302.24 13.02 13077.02 9.35 16507.41 10.54
Monthly Income PlansBirla SL MIP II-Wealth 25(G) Crisil MIP Blended Index 201 - 10000 11122.45 11.22 12289.44 7.11 15761.22 9.52Canara Rob MIP-Reg(G) Crisil MIP Blended Index 248 292 10000 10640.23 6.40 12113.46 6.59 16060.03 9.93DSPBR MIP Fund(G) Crisil MIP Blended Index 550 2048 10000 10964.77 9.65 12514.08 7.75 15539.77 9.21FT India MIP(G) Crisil MIP Blended Index 300 986 10000 11298.27 12.98 12507.25 7.74 15216.26 8.75HDFC MIP-LTP(G) Crisil MIP Blended Index 5185 2537 10000 10921.27 9.21 12287.12 7.10 17104.49 11.32HSBC MIP(G) Crisil MIP Blended Index 189 1581 10000 11047.59 10.48 12218.43 6.90 14896.37 8.29ICICI Pru MIP(G) Crisil MIP Blended Index 491 2183 10000 11001.94 10.02 12460.65 7.60 15317.46 8.89Reliance MIP(G) Crisil MIP Blended Index 3382 2734 10000 11071.04 10.71 12537.97 7.82 18336.07 12.88UTI MIS Adv Plan(G) Crisil MIP Blended Index 526 1394 10000 11065.28 10.65 12199.84 6.85 15666.80 9.38Benchmark Crisil MIP Blended Index 10000 11125.58 11.26 12400.81 7.43 14899.44 8.30
JULY 2013 Investime 25
EquityMutual Fund Schemes
Investime Top Picks
Source: ACE MF Performance as on 30th June 2013
Scheme Name AUM (R Crs) Benchmark Index Amount
Invested (R)1 Year 3 Years 5 Years
Current Value (R) CAGR % Current
Value (R) CAGR % Current Value (R)
CAGR (%)
Largecap FundsBirla SL Frontline Equity Fund(G) 3180 S&P BSE 200 10000 11874.16 18.74 11692.73 5.35 17964.88 12.42Birla SL Top 100 Fund(G) 309 CNX Nifty 10000 11413.58 14.14 11769.88 5.58 16505.15 10.53Canara Rob Eq Diver Fund-Reg(G) 653 S&P BSE 200 10000 10976.68 9.77 11509.36 4.79 19117.74 13.82DSPBR Equity Fund(G) 2180 CNX 500 10000 10544.13 5.44 10227.86 0.75 15595.25 9.28DSPBR Top 100 Equity Fund(G) 3276 S&P BSE 100 10000 10831.88 8.32 11007.03 3.25 15985.02 9.82Franklin India Bluechip Fund(G) 5004 S&P BSE SENSEX 10000 11114.12 11.14 11546.83 4.91 17713.67 12.10HDFC Equity Fund(G) 10824 CNX 500 10000 10643.21 6.43 10605.03 1.98 18420.70 12.98HDFC Top 200 Fund(G) 11335 S&P BSE 200 10000 10800.25 8.00 10825.94 2.68 17940.99 12.39ICICI Pru Dynamic Plan(G) 3572 CNX Nifty 10000 10609.92 6.10 10968.45 3.13 16486.39 10.50ICICI Pru Focused BlueChip Eq Fund(G) 4336 CNX Nifty 10000 11334.17 13.34 12218.45 6.90 19597.39 14.39Kotak 50(G) 722 CNX Nifty 10000 11470.02 14.70 11010.40 3.26 14362.16 7.50L&T Equity Fund(G) 2175 S&P BSE 200 10000 10992.10 9.92 10902.98 2.92 16939.03 11.10Morgan Stanley A.C.E(G) 187 S&P BSE 200 10000 11460.83 14.61 10600.44 1.96 16924.64 11.08Principal Large Cap Fund(G) 327 S&P BSE 100 10000 10826.29 8.26 10228.76 0.76 16134.02 10.03Reliance Reg Savings Fund-Equity Plan(G) 2456 S&P BSE 100 10000 11112.82 11.13 10142.70 0.47 15811.11 9.58SBI Contra Fund(G) 2314 S&P BSE 100 10000 11053.30 10.53 9652.26 -1.17 13892.63 6.79Tata Pure Equity Fund(G) 641 S&P BSE SENSEX 10000 11260.89 12.61 11128.97 3.63 16108.64 9.99Templeton India Growth Fund(G) 604 S&P BSE SENSEX 10000 11166.99 11.67 10151.07 0.50 14730.44 8.05UTI Equity Fund(G) 2269 S&P BSE 100 10000 11339.77 13.40 12119.03 6.61 17841.90 12.26Midcap FundsBirla SL Midcap Fund(G) 1073 CNX Midcap 10000 10771.24 7.71 9938.84 -0.20 15815.39 9.59DSPBR Small & Mid Cap Fund(G) 1034 CNX Midcap 10000 10251.42 2.51 9944.27 -0.19 17173.76 11.41ICICI Pru Discovery Fund(G) 2633 CNX Midcap 10000 10740.04 7.40 11254.39 4.01 20995.90 15.97IDFC Premier Equity Fund-Reg(G) 3344 S&P BSE 500 10000 11307.60 13.08 12382.12 7.38 19973.80 14.82IDFC Sterling Equity Fund-Reg(G) 1350 CNX Midcap 10000 10621.32 6.21 11120.66 3.60 21606.75 16.62Kotak Midcap Scheme(G) 260 CNX Midcap 10000 10603.80 6.04 10531.94 1.74 15040.77 8.50SBI Emerging Businesses Fund(G) 1306 S&P BSE 500 10000 11448.76 14.49 14460.11 13.07 19968.46 14.82Sundaram Select Midcap(G) 1804 BSE MIDCAP 10000 11104.39 11.04 11004.55 3.24 17500.97 11.83UTI Mid Cap Fund(G) 265 CNX Midcap 10000 10595.18 5.95 10341.04 1.12 15959.03 9.79Opportunities FundsDSPBR Opportunities Fund(G) 492 CNX 500 10000 11638.00 16.38 10599.94 1.96 15784.29 9.55Franklin India Opportunities Fund(G) 279 S&P BSE 200 10000 11014.35 10.14 10441.31 1.45 12437.69 4.45HDFC Mid-Cap Opportunities Fund(G) 2746 CNX Midcap 10000 10835.54 8.36 12046.41 6.40 20113.54 14.98Kotak Opportunities Fund(G) 618 CNX 500 10000 11255.03 12.55 10751.34 2.44 14450.05 7.63Reliance Equity Opportunities Fund(G) 5006 S&P BSE 100 10000 11015.73 10.16 12243.69 6.97 21031.52 16.01Tata Equity Opportunities Fund(G) 463 S&P BSE 200 10000 11269.02 12.69 10849.43 2.75 13696.44 6.49UTI Opportunities Fund(G) 3520 S&P BSE 100 10000 11069.60 10.70 12624.50 8.07 19844.29 14.67Thematic/Sector FundsBirla SL Dividend Yield Plus(G) 1202 CNX 500 10000 10110.10 1.10 10493.53 1.62 20164.09 15.04Birla SL MNC Fund(G) 382 CNX MNC 10000 11287.83 12.88 13174.92 9.62 24396.24 19.50Reliance Banking Fund(G) 1730 CNX Bank 10000 11460.45 14.60 12307.47 7.16 24708.22 19.81Reliance Pharma Fund(G) 686 S&P BSE Health Care 10000 12184.40 21.84 13177.78 9.63 30863.43 25.25Tata Dividend Yield Fund(G) 320 CNX 500 10000 10368.83 3.69 11251.35 4.00 17923.04 12.36UTI Banking Sector Fund(G) 352 CNX Bank 10000 11204.99 12.05 11771.11 5.58 22450.18 17.54UTI Dividend Yield Fund(G) 3285 S&P BSE 100 10000 10538.23 5.38 10849.43 2.75 17981.81 12.44BenchmarkCNX Midcap 10000 10202.03 2.02 8999.69 -3.45 13549.99 6.26S&P BSE Mid-Cap 10000 9849.79 -1.50 8326.67 -5.92 10729.93 1.42S&P BSE 100 10000 11265.92 12.66 10552.44 1.81 13838.95 6.71S&P BSE 500 10000 10969.33 9.69 10071.32 0.24 13347.88 5.94S&P BSE 200 10000 11129.72 11.30 10302.13 1.00 13738.77 6.55CNX Nifty 10000 11345.95 13.46 10953.78 3.08 14123.02 7.14CNX 500 10000 11069.56 10.70 10184.34 0.61 13695.75 6.48S&P S&P BSE SENSEX 10000 11415.50 14.16 10912.30 2.95 14052.67 7.03CNX MNC 10000 10944.49 9.44 11801.32 5.67 18530.23 13.11CNX Bank 10000 11612.78 16.13 12174.60 6.77 22294.13 17.37S&P BSE Health Care 10000 13089.68 30.90 15280.67 15.17 21313.62 16.32
26 Investime JULY 2013
KOTAK BOND-STP(G)Inception Date : 02-May-2002
Fund Manager : Deepak AgrawalFund Corpus (R Crs) 2214Company Name %Corporate Debt 63.97 Certificate of Deposit 32.27 Cash & Cash Equivalents 2.63 Commercial Paper 0.94 Government Securities 0.19 Total 100.00
AXIS ST-RET(G)Inception Date : 22-Jan-2010Fund Manager : Devang Shah
Fund Corpus (R Crs) 992Company Name %Corporate Debt 77.78 Certificate of Deposit 12.44 Government Securities 4.45 Cash & Cash Equivalents 2.71 Domestic Mutual Funds Units 2.21 Commercial Paper 0.41 Total 100.00
RELIGARE INVESCO SHORT TERM FUND-A(G)
Inception Date : 24-Mar-2007
Fund Manager : Sujoy Kumar Das
Fund Corpus (R Crs) 2681
Company Name %
Corporate Debt 85.11
Cash & Cash Equivalents 7.82
Commercial Paper 4.09
Certificate of Deposit 1.48
Government Securities 0.78
Floating Rate Instruments 0.72
Total 100.00
DWS SHORT MATURITY-REG(G)Inception Date : 27-Jan-2003
Fund Manager : Nitish Gupta
Fund Corpus (R Crs) 1331
Company Name %
Corporate Debt 45.00
Commercial Paper 24.09
Certificate of Deposit 18.33
Cash & Cash Equivalents 9.37
Deposits 3.22
Total 100.00
MORGAN STANLEY ST BOND-REG(G)
Inception Date : 26-May-2009
Fund Manager : Ritesh Jain
Fund Corpus (R Crs) 431
Company Name %
Certificate of Deposit 44.63
Corporate Debt 42.93
Commercial Paper 8.51
Cash & Cash Equivalents 2.45
Deposits (Placed as Margin) 1.38
Treasury Bills 0.11
Total 100.00
BIRLA SL SHORT TERM FUND(G)Inception Date : 3-Mar-1997
Fund Manager : Prasad Dhonde
Fund Corpus (R Crs) 5347
Company Name %
Corporate Debt 66.23
Cash & Cash Equivalents 17.76
Government Securities 6.69
Certificate of Deposit 6.30
Commercial Paper 3.02 Total 100.00
DWS PREMIER BOND FUND(G)Inception Date : 30-Jan-2003
Fund Manager : Nitish Gupta
Fund Corpus (R Crs) 1216
Company Name %
Corporate Debt 85.89
Certificate of Deposit 8.24
Cash & Cash Equivalents 3.94
Commercial Paper 1.93
Total 100.00
ICICI PRU SHORT TERM PLAN(G)Inception Date : 25-Oct-2001
Fund Manager : Manish Banthia
Fund Corpus (R Crs) 5564
Company Name %
Corporate Debt 63.49
Government Securities 25.54
Certificate of Deposit 6.08
Commercial Paper 2.95
Cash & Cash Equivalents 1.80
PTC & Securitized Debt 0.14
Total 100.00
CANARA ROBECO INCOME(G)Inception Date : 19-Sep-2002
Fund Manager : Akhil Mittal
Fund Corpus (R Crs) 359
Company Name %
Government Securities 50.11
Corporate Debt 41.35
Commercial Paper 5.89
Cash & Cash Equivalents 2.65
Total 100.00
BIRLA SL INCOME PLUS-RET(G)Inception Date : 21-Oct-1995
Fund Manager : Prasad Dhonde
Fund Corpus (R Crs) 5144
Company Name %
Government Securities 39.21
Corporate Debt 31.39
Cash & Cash Equivalents 23.30
Certificate of Deposit 5.71
Floating Rate Instruments 0.39
Total 100.00
INCOME FUNDS
HSBC INCOME-STP-REG(G)Inception Date : 10-Dec-2002Fund Manager : Sanjay Shah
Fund Corpus (R Crs) 1139Company Name %Corporate Debt 60.30 Certificate of Deposit 33.49 Cash & Cash Equivalents 3.68 Commercial Paper 2.53 Total 100.00
JPMORGAN INDIA ST INCOME(G)
Inception Date : 26-Mar-2010
Fund Manager : Namdev Chougule
Fund Corpus (R Crs) 1283
Company Name %
Certificate of Deposit 47.76
Corporate Debt 30.49
Cash & Cash Equivalents 12.44
Government Securities 5.59
Commercial Paper 3.72
Total 100.00
RELIANCE STF(G)Inception Date : 23-Dec-2002
Fund Manager : Prashant Pimple
Fund Corpus (R Crs) 3376
Company Name %
Corporate Debt 74.31
Government Securities 9.51
Certificate of Deposit 7.70
Cash & Cash Equivalents 7.37
Commercial Paper 1.11
Total 100.00
DSPBR STRATEGIC BOND-REG(G)Inception Date : 09-May-2007
Fund Manager : Dhawal Dalal
Fund Corpus (R Crs) 3734
Company Name %
Corporate Debt 37.63
Government Securities 32.46
Cash & Cash Equivalents 16.98
Certificate of Deposit 12.46
Commercial Paper 0.47
Total 100.00
SHORT TERM FUNDS
InvestimePortfolio Pages
IDFC SSIF-ST-REG(G)Inception Date : 14-Dec-2000
Fund Manager : Suyash ChoudharyFund Corpus (R Crs) 3854Company Name %Corporate Debt 81.02 Certificate of Deposit 12.32 Cash & Cash Equivalents 3.80 Commercial Paper 2.86 Total 100.00
TEMPLETON INDIA ST INCOME PLAN(G)
Inception Date : 31-Jan-2002
Fund Manager : Sachin Padwal-Desai
Fund Corpus (R Crs) 6306
Company Name %
Corporate Debt 70.17
PTC & Securitized Debt 11.15
Certificate of Deposit 6.49
Cash & Cash Equivalents 6.28
Commercial Paper 5.90
Total 100.00
PINEBRIDGE INDIA SHORT TERM FUND(G)
Inception Date : 06-Mar-2008
Fund Manager : Vikrant Mehta
Fund Corpus (R Crs) 763
Company Name %
Certificate of Deposit 51.56
Corporate Debt 26.11
Cash & Cash Equivalents 16.94
Government Securities 4.91
Deposits 0.48
Total 100.00
JULY 2013 Investime 27
DSPBR MIP FUND(G)Inception Date : 11-Jun-2004
Fund Manager : Dhaval Dalal
Fund Corpus (R Crs) 550
Company Name %
Debt 66.00
Corporate Debt 38.53
Government Securities 24.03
Certificate of Deposit 3.43
Treasury Bills 0.01
Equity 23.48
Others 10.52
Total 100
ICICI PRU MIP (G)Inception Date : 10-Nov-2000
Fund Manager : Rajat Chandak
Fund Corpus (R Crs) 491
Company Name %
Debt 81.53
Corporate Debt 56.23
Government Securities 23.75
PTC & Securitized Debt 1.55
Equity 14.72
Others 3.74
Total 100
HSBC MIP(G)Inception Date : 24-Feb-2004
Fund Manager : Ruchir ParekhFund Corpus (R Crs) 189Company Name %Debt 78.75Corporate Debt 60.40 Government Securities 12.87 Certificate of Deposit 5.48 Equity 15.10 Others 6.15Total 100
CANARA ROBECO MIP(G)Inception Date : 31-Mar-1996
Fund Manager : Ravi Gopalakrishnan
Fund Corpus (R Crs) 248
Company Name %
Debt 63.61
Certificate of Deposit 36.33
Corporate Debt 27.17
Deposits 0.11
Equity 21.61
Others 14.78
Total 100
FT INDIA MIP(G)Inception Date : 28-Sep-2000
Fund Manager : Anand RadhakrishnanFund Corpus (R Crs) 300Company Name %Debt 30.93Corporate Debt 30.93 Equity 17.94 Others 51.13Total 100
HDFC MIP-LTP(G)Inception Date : 26-Dec-2003
Fund Manager : Prashant Jain
Fund Corpus (R Crs) 5185
Company Name %
Debt 72.57
Corporate Debt 55.38
Government Securities 16.24
Certificate of Deposit 0.95
Equity 23.01
Others 4.42
Total 100
RELIANCE MIP(G)Inception Date : 13-Jan-2004
Fund Manager : Sanjay Parekh
Fund Corpus (R Crs) 3382
Company Name %
Debt 74.88
Corporate Debt 42.91
Government Securities 28.72
Floating Rate Instruments 3.06
Certificate of Deposit 0.10
PTC & Securitized Debt 0.09
Equity 19.40
Others 5.72
Total 100
UTI MIS ADV PLAN(G)Inception Date : 16-Dec-2003
Fund Manager : Amandeep Singh Chopra
Fund Corpus (R Crs) 526Company Name %Debt 69.69Corporate Debt 62.13 Government Securities 7.05 Deposits 0.51 Equity 24.48 Others 5.83Total 100
BIRLA SL MIP II-WEALTH 25(G)Inception Date : 22-May-2004
Fund Manager : Satyabrata Mohanty
Fund Corpus (R Crs) 201
Company Name %
Debt 66.75
Corporate Debt 45.38
Floating Rate Instruments 10.41
Government Securities 10.96
Equity 28.80
Others 4.45
Total 100
MONTHLY INCOME PLANS
InvestimePortfolio Pages
INCOME FUNDS
RELIANCE INCOME(G)Inception Date : 01-Jan-1998
Fund Manager : Prashant PimpleFund Corpus (R Crs) 5193Company Name %Government Securities 51.80 Corporate Debt 31.07 Cash & Cash Equivalents 10.93 Certificate of Deposit 6.20 Total 100.00
SBI MAGNUM INCOME(G)Inception Date : 25-Nov-1998
Fund Manager : Dinesh Ahuja
Fund Corpus (R Crs) 5266
Company Name %
Government Securities 48.57
Corporate Debt 40.04
Certificate of Deposit 10.13
Cash & Cash Equivalents 1.26
Total 100.00
TATA INCOME FUND(G)Inception Date : 28-Apr-1997
Fund Manager : Marzaban IraniFund Corpus (R Crs) 1272Company Name %Government Securities 56.59 Corporate Debt 26.36 Certificate of Deposit 12.02 Cash & Cash Equivalents 5.03 Total 100.00
UTI BOND FUND(G)Inception Date : 17-Jun-1998
Fund Manager : Amandeep Singh ChopraFund Corpus (R Crs) 2969Company Name %Corporate Debt 37.41 Cash & Cash Equivalents 33.49 Government Securities 23.41 Certificate of Deposit 5.67 PTC & Securitized Debt 0.02 Total 100.00
ICICI PRU INCOME-REG(G)Inception Date : 09-Jul-1998
Fund Manager : Avnish Jain
Fund Corpus (R Crs) 4789
Company Name %
Government Securities 62.59
Corporate Debt 35.02
Cash & Cash Equivalents 2.39
Total 100.00
HDFC INCOME FUND(G)Inception Date : 11-Sep-2000
Fund Manager : Shobhit MehrotraFund Corpus (R Crs) 5109Company Name %Government Securities 45.76 Corporate Debt 41.45 Cash & Cash Equivalents 10.27 Certificate of Deposit 2.52 Total 100.00
JPMORGAN INDIA ACTIVE BOND FUND(G)
Inception Date : 27-Jun-2008Fund Manager : Namdev Chougule
Fund Corpus (R Crs) 1550Company Name %Corporate Debt 82.46 Cash & Cash Equivalents 13.56 Certificate of Deposit 3.98 Total 100.00
KOTAK BOND FUND - PLAN A(G)Inception Date : 25-Nov-1999
Fund Manager : Deepak AgrawalFund Corpus (R Crs) 6971Company Name %Corporate Debt 53.44 Government Securities 41.12 Certificate of Deposit 10.24 Commercial Paper 0.35 Cash & Cash Equivalents -5.15Total 100.00
28 Investime JULY 2013
BIRLA SL FRONTLINE EQUITY(G)Inception Date : 23-Sep-2002Fund Manager : Mahesh Patil
Fund Corpus (R Crs) 3180Company Name %Clearing Corporation Of India Ltd. 6.30 ICICI Bank Ltd. 5.54 Reliance Industries Ltd. 5.03 ITC Ltd. 4.96 Housing Development Finance Corporation Ltd. 3.60 Infosys Ltd. 3.39 HDFC Bank Ltd. 3.13 Larsen & Toubro Ltd. 2.90 Dr Reddys Laboratories Ltd. 2.53 NTPC Ltd. 2.51 Other 60.11 Total 100.00DSPBR TOP 100 EQUITY FUND(G)
Inception Date : 10-Mar-2003Fund Manager : Apoorva Shah
Fund Corpus (R Crs) 3276Company Name %CBLO 10.56 CNX Nifty Index 8.89 Reliance Industries Ltd. 8.27 Housing Development Finance Corporation Ltd. 7.64 HDFC Bank Ltd. 7.43 Larsen & Toubro Ltd. 5.35 Bharat Petroleum Corpn. Ltd. 4.79 Infosys Ltd. 4.75 Wipro Ltd. 3.54 Tata Motors - DVR Ordinary 3.49 Other 35.29 Total 100.00
ICICI PRU DYNAMIC PLAN(G)Inception Date : 31-Oct-2002
Fund Manager : Sankaran NarenFund Corpus (R Crs) 3572Company Name %Cairn India Ltd. 10.75 ICICI Bank Ltd. 9.74 NMDC Ltd 6.08 Infosys Ltd. 5.39 Bharti Airtel Ltd. 4.86 Power Grid Corpn. Of India Ltd. 4.84 Net Current Asset 4.74 Standard Chartered PLC 4.14 Bank Of Baroda 2.99 Aditya Birla Nuvo Ltd. 2.70 Other 43.77 Total 100.00
RELIANCE REG SAVINGS-EQUITY(G)Inception Date : 10-Jun-2005
Fund Manager : Omprakash KuckianFund Corpus (R Crs) 2456Company Name %Infosys Ltd. 4.75 Motherson Sumi Systems Ltd. 4.24 DiviS Laboratories Ltd. 4.23 ICICI Bank Ltd. 4.12 Apollo Hospitals Enterprise Ltd. 4.04 United Spirits Ltd. 3.71 Oracle Financial Services Software Ltd 3.46
Larsen & Toubro Ltd. 3.31 Tata Consultancy Services Ltd. 3.24 Torrent Pharmaceuticals Ltd. 3.16 Other 61.74 Total 100
MORGAN STANLEY A.C.E(G)Inception Date : 03-Apr-2008
Fund Manager : Jayesh GandhiFund Corpus (R Crs) 187Company Name %ITC Ltd. 6.16 Tata Consultancy Services Ltd. 5.87 Reliance Industries Ltd. 5.68 Housing Development Finance Corporation Ltd. 5.31 ICICI Bank Ltd. 5.11 Oil & Natural Gas Corpn. Ltd. 4.97 HDFC Bank Ltd. 4.23 Infosys Ltd. 4.20 CBLO 3.58 Idea Cellular Ltd. 3.30 Other 51.59 Total 100
HDFC TOP 200(G) Inception Date : 03-Sep-1996Fund Manager : Prashant Jain
Fund Corpus (R Crs) 11335Company Name %ICICI Bank Ltd. 7.81 State Bank Of India 7.62 Infosys Ltd. 6.33 ITC Ltd. 5.16 Larsen & Toubro Ltd. 4.09 HDFC Bank Ltd. 3.79 Tata Motors - DVR Ordinary 3.70 Tata Consultancy Services Ltd. 3.48 Oil India Ltd 2.85 Oil & Natural Gas Corpn. Ltd. 2.77 Other 52.40 Total 100
FRANKLIN INDIA BLUECHIP(G)Inception Date : 01-Dec-1993
Fund Manager : Anand RadhakrishnanFund Corpus (R Crs) 5004Company Name %ICICI Bank Ltd. 7.15 Bharti Airtel Ltd. 7.08 Infosys Ltd. 6.56 Call Money 6.01 Reliance Industries Ltd. 4.97 HDFC Bank Ltd. 4.74 Dr Reddys Laboratories Ltd. 4.71 Grasim Industries Ltd. 4.42 Oil & Natural Gas Corpn. Ltd. 3.34 NTPC Ltd. 3.20 Other 47.83 Total 100
BIRLA SL TOP 100 FUND(G)Inception Date : 27-Oct-2005Fund Manager : Mahesh Patil
Fund Corpus (R Crs) 309Company Name %Clearing Corporation Of India Ltd. 6.73 ICICI Bank Ltd. 5.93 Reliance Industries Ltd. 5.51 HDFC Bank Ltd. 4.39 ITC Ltd. 4.21 Infosys Ltd. 4.08 Housing Development Finance Corporation Ltd. 4.06 Larsen & Toubro Ltd. 3.38 Bharti Airtel Ltd. 2.95 Mahindra Satyam Ltd.(Amalgamated) 2.69 Other 56.07 Total 100.00
LARGE CAP FUNDS
InvestimePortfolio Pages
SBI CONTRA FUND(G)Inception Date : 06-May-2005Fund Manager : R. Srinivasan
Fund Corpus (R Crs) 2314Company Name %ICICI Bank Ltd. 7.63 State Bank Of India 6.29 Infosys Ltd. 5.05 Larsen & Toubro Ltd. 4.73 CBLO 4.01 Reliance Industries Ltd. 3.57 Merck Ltd. 3.48 ITC Ltd. 3.43 Bharti Airtel Ltd. 3.22 Housing Development Finance Corporation Ltd. 3.17 Other 55.41 Total 100
TATA PURE EQUITY FUND(G)Inception Date : 07-May-1998
Fund Manager : Pradeep GokhaleFund Corpus (R Crs) 641 Company Name %Housing Development Finance Corporation Ltd. 8.10
HDFC Bank Ltd. 7.21 ITC Ltd. 6.92 ICICI Bank Ltd. 6.80 Reliance Industries Ltd. 6.77 Infosys Ltd. 6.17 HCL Technologies Ltd. 4.79 Oil & Natural Gas Corpn. Ltd. 3.38 Grasim Industries Ltd. 2.93 Power Grid Corpn. Of India Ltd. 2.72 Other 44.22 Total 100
HDFC EQUITY(G)Inception Date : 01-Jan-1995Fund Manager : Prashant Jain
Fund Corpus (R Crs) 10824Company Name %ICICI Bank Ltd. 8.60 State Bank Of India 8.17 Infosys Ltd. 6.53 ITC Ltd. 4.55 Larsen & Toubro Ltd. 3.65 Tata Motors - DVR Ordinary 3.44 Reliance Industries Ltd. 2.98 Oil India Ltd 2.93 LIC Housing Finance Ltd. 2.53 Bharat Petroleum Corpn. Ltd. 2.48 Other 54.14 Total 100.00
UTI EQUITY FUND(G)Inception Date : 01-Aug-2005
Fund Manager : Anoop BhaskarFund Corpus (R Crs) 2269Company Name %ITC Ltd. 5.73 Reliance Industries Ltd. 5.55 Tata Consultancy Services Ltd. 5.07 Infosys Ltd. 5.01 HDFC Bank Ltd. 4.91 ICICI Bank Ltd. 4.62 Sun Pharmaceutical Inds. Ltd. 4.03 Shree Cement Ltd. 2.77 State Bank Of India 2.46 Nestle India Ltd. 2.41 Other 57.44 Total 100
TEMPLETON INDIA GROWTH FUND(G)
Inception Date : 05-Sep-2003Fund Manager : Chetan Sehgal
Fund Corpus (R Crs) 604Company Name %ING Vysya Bank Ltd. 12.18 Tata Chemicals Ltd. 11.36 Sundaram Finance Ltd. 8.65 Oil & Natural Gas Corpn. Ltd. 7.34 Reliance Industries Ltd. 7.03 Bajaj Holdings & Investment Ltd 6.80 ICICI Bank Ltd. 6.71 Grasim Industries Ltd. 5.45 Tata Investment Corpn. Ltd. 5.21 Infosys Ltd. 4.36 Other 24.92 Total 100
KOTAK 50(G)Inception Date : 05-Feb-2003
Fund Manager : Pradeep KumarFund Corpus (R Crs) 722Company Name %ICICI Bank Ltd. 8.33 Reliance Industries Ltd. 7.98 HDFC Bank Ltd. 7.38 ITC Ltd. 5.54 Bharti Airtel Ltd. 5.33 Oil & Natural Gas Corpn. Ltd. 4.47 Infosys Ltd. 4.27 Coal India Ltd. 3.01 Larsen & Toubro Ltd. 3.00 Dr Reddys Laboratories Ltd. 2.84 Other 47.85 Total 100
PRINCIPAL LARGE CAP(G)Inception Date : 11-Nov-2005
Fund Manager : Anupam TiwariFund Corpus (R Crs) 327Company Name %Infosys Ltd. 8.04 ITC Ltd. 6.95 Reliance Industries Ltd. 6.62 Housing Development Finance Corporation Ltd. 6.14 ICICI Bank Ltd. 5.79 HDFC Bank Ltd. 4.71 State Bank Of India 4.58 Tata Motors Ltd. 4.26 DiviS Laboratories Ltd. 4.17 CBLO 4.15 Other 44.59 Total 100
CANARA ROBECO EQ DIVERSIFIED(G)
Inception Date : 16-Sep-2003Fund Manager : Ravi Gopalakrishnan
Fund Corpus (R Crs) 653Company NAme %Reliance Industries Ltd. 6.38 ITC Ltd. 6.14 Repo Instruments 5.26 Infosys Ltd. 5.13 ICICI Bank Ltd. 4.72 Housing Development Finance Corporation Ltd. 3.90
HDFC Bank Ltd. 3.75 State Bank Of India 3.63 Tata Consultancy Services Ltd. 3.42 Larsen & Toubro Ltd. 3.15 Other 54.52 Total 100.00
DSPBR EQUITY-REG(G)Inception Date : 07-Jun-2007
Fund Manager : Apoorva ShahFund Corpus (R Crs) 2180Company Name %Reliance Industries Ltd. 7.26 Larsen & Toubro Ltd. 6.33 Bharat Petroleum Corpn. Ltd. 4.89 Infosys Ltd. 4.57 CBLO 4.27 ING Vysya Bank Ltd. 3.93 Eicher Motors Ltd. 3.48 HDFC Bank Ltd. 3.36 United Spirits Ltd. 3.35 Tata Global Beverages Ltd 3.09 Other 55.47 Total 100
ICICI PRU FOCUSED BLUE CHIP EQUITY-RET(G)
Inception Date : 23-May-2008Fund Manager : Manish Gunwani
Fund Corpus (R Crs) 4336Company Name %HDFC Bank Ltd. 8.98 ICICI Bank Ltd. 7.55 ITC Ltd. 6.67 Kotak Mahindra Bank Ltd. 5.82 Infosys Ltd. 5.22 Motherson Sumi Systems Ltd. 4.48 Tech Mahindra Ltd. 4.09 State Bank Of India 3.92 Reliance Industries Ltd. 3.50 CBLO 3.31 Other 46.46 Total 100
L&T EQUITY FUND(G)Inception Date : 16-May-2005
Fund Manager : Soumendra Nath LahiriFund Corpus (R Crs) 2175Company Name %Infosys Ltd. 6.54 HDFC Bank Ltd. 6.35 Reliance Industries Ltd. 5.93 ITC Ltd. 5.81 Housing Development Finance Corporation Ltd. 5.40 ICICI Bank Ltd. 5.17 Tata Consultancy Services Ltd. 4.11 Oil & Natural Gas Corpn. Ltd. 3.92 L&T Liquid Fund(G)-Direct Plan 3.76 Larsen & Toubro Ltd. 3.61 Other 49.40 Total 100
JULY 2013 Investime 29
IDFC PREMIER EQUITY-REG(G)Inception Date : 28-Sep-2005
Fund Manager : Kenneth AndradeFund Corpus (R Crs) 3344Company Name %Clearing Corporation Of India Ltd. 14.08 CNX Nifty Index 8.18 Page Industries Ltd. 5.82 Kaveri Seed Company Ltd. 5.60 Blue Dart Express Ltd. 4.47 Bata India Ltd. 4.09 State Bank Of India 3.56 Asian Paints Ltd. 3.38 United Spirits Ltd. 3.29 Shriram Transport Finance Company Ltd. 3.23 Other 4.98 Total 100
IDFC STERLING EQUITY FUND-REG(G)Inception Date : 07-Mar-2008
Fund Manager : Kenneth Andrade
Fund Corpus (R Crs) 1350
Company Name %
Clearing Corporation Of India Ltd. 14.60
CNX Nifty Index 6.21
Vardhman Textiles Ltd. 4.32
VA Tech Wabag Ltd. 4.29
Bajaj Finance Ltd. 4.19
Strides Arcolab Ltd. 4.05
Mahindra & Mahindra Financial Services Ltd.
3.79
Nestle India Ltd. 3.76
Idea Cellular Ltd. 3.35
Castrol India Ltd. 3.32
Other 48.12
Total 100
MIDCAP FUNDSInvestime
Portfolio Pages
SUNDARAM SELECT MIDCAP(G)Inception Date : 19-Jul-2002
Fund Manager : S. Krishnakumar
Fund Corpus (R Crs) 1804
Company Name %
Ipca Laboratories Ltd. 9.77
FAG Bearings India Ltd. 4.95
Bosch Ltd 4.54
Amara Raja Batteries Ltd. 4.45
Indraprastha Gas Ltd. 4.17
Bajaj Finance Ltd. 3.99
Mahindra Satyam Ltd. (Amalgamated) 3.70
Karur Vysya Bank Ltd. 3.48
Wabco India Ltd. 2.92
Jyothy Laboratories Ltd 2.91
Others 55.12
Total 100
UTI MID CAP(G)Inception Date : 07-Apr-2004
Fund Manager : Anoop BhaskarFund Corpus (R Crs) 265Company Name %Eicher Motors Ltd. 5.38 IndusInd Bank Ltd. 5.22 Sun Pharma Advanced Research Company Ltd. 4.71
Kaveri Seed Company Ltd. 4.43 Supreme Industries Ltd. 4.22 Wabco India Ltd. 3.13 Arvind Ltd. 3.07 MRF Ltd. 3.00 Rallis India Ltd. 2.77 CESC Ltd. 2.45 Others 61.62 Total 100
KOTAK MIDCAP SCHEME(G)Inception Date : 24-Feb-2005
Fund Manager : Pankaj Tibrewal
Fund Corpus (R Crs) 260
Company Name %
Federal Bank Ltd. 4.66
Whirlpool Of India Ltd. 4.29
Kewal Kiran Clothing Ltd. 3.49
Solar Industries (India) Ltd. 3.20
Hawkins Cookers Ltd. 2.93
Jammu & Kashmir Bank Ltd. 2.62
SKF India Ltd. 2.60
Navneet Publications (India) Ltd. 2.46
Torrent Pharmaceuticals Ltd. 2.43
Yes Bank Ltd. 2.39
Other 68.93
Total 100
SBI EMERGING BUSINESSES FUND(G)Inception Date : 11-Oct-2004Fund Manager : R. Srinivasan
Fund Corpus (R Crs) 1306Company Name %Agro Tech Foods Ltd. 6.00 Page Industries Ltd. 5.82 HDFC Bank Ltd. 5.69 Procter & Gamble Hygiene & Health Care Ltd. 5.46
DiviS Laboratories Ltd. 5.36 CBLO 4.77 Shriram City Union Finance Ltd. 4.44 Redington (India) Ltd. 4.44 Kansai Nerolac Paints Ltd. 4.44 Goodyear India Ltd. 4.20 Other 49.37 Total 100.00
BIRLA SL MIDCAP(G)Inception Date : 16-Oct-2002
Fund Manager : Sanjay Chawla
Fund Corpus (R Crs) 1073
Company Name %
Motherson Sumi Systems Ltd. 4.18
Solar Industries (India) Ltd. 3.87
Ipca Laboratories Ltd. 3.48
Shree Cement Ltd. 3.21
Cummins India Ltd. 3.09
Yes Bank Ltd. 3.04
Karur Vysya Bank Ltd. 2.93
AIA Engineering Ltd. 2.69
Madras Cements Ltd. 2.69
Phoenix Mills Ltd. 2.68
Other 68.14
Total 100
DSPBR SMALL & MID CAP-REG(G)Inception Date : 14-Nov-2006
Fund Manager : Apoorva Shah
Fund Corpus (R Crs) 1034
Company Name %
Eicher Motors Ltd. 5.38
ING Vysya Bank Ltd. 4.79
Godrej Industries Ltd. 4.39
Ipca Laboratories Ltd. 4.07
Unichem Laboratories Ltd. 3.91
Tata Global Beverages Ltd 3.78
CMC Ltd. 3.74
Bajaj Finance Ltd. 3.67
Persistent Systems Ltd. 3.65
CBLO 3.45
Other 59.17
Total 100
ICICI PRU DISCOVERY(G)Inception Date : 16-Aug-2004
Fund Manager : Mrinal Singh
Fund Corpus (R Crs) 2633
Company Name %
ICICI Bank Ltd. 6.75
Bharti Airtel Ltd. 4.20
Amara Raja Batteries Ltd. 3.26
Sterlite Industries (India) Ltd. 3.15
GAIL (India) Ltd. 3.09
CBLO 3.09
Jindal Steel & Power Ltd. 3.04
Exide Industries Ltd. 2.55
Mindtree Ltd 2.47
Other 65.05
Total 100
30 Investime JULY 2013
DSPBR OPP-REG(G)Inception Date : 16-May-2000
Fund Manager : Apoorva Shah
Fund Corpus (R Crs) 492
Company Name %
ICICI Bank Ltd. 5.79
Infosys Ltd. 4.66
Reliance Industries Ltd. 3.99
HDFC Bank Ltd. 3.64
CBLO 3.48
Oil & Natural Gas Corpn. Ltd. 3.43
Housing Development Finance Corporation Ltd.
3.42
State Bank Of India 3.12
Bharat Petroleum Corpn. Ltd. 2.87
Dr Reddys Laboratories Ltd. 2.72
Other 62.88
Total 100
FRANKLIN INDIA OPP(G)Inception Date : 21-Feb-2000
Fund Manager : R. JankiramanFund Corpus (R Crs) 279Company Name %ICICI Bank Ltd. 6.70 Yes Bank Ltd. 6.54 HDFC Bank Ltd. 6.29 Reliance Industries Ltd. 6.16 Larsen & Toubro Ltd. 5.29 Bharti Airtel Ltd. 4.36 Call Money 3.96 Housing Development Finance Corporation Ltd.
3.81
Amara Raja Batteries Ltd. 3.39 NTPC Ltd. 3.38 Other 50.12 Total 100
RELIANCE BANKING(G) Inception Date : 28-May-2003
Fund Manager : Sanjay Parekh
Fund Corpus (R Crs) 1730
Company Name %
ICICI Bank Ltd. 19.29
HDFC Bank Ltd. 17.46
Federal Bank Ltd. 5.36
Indiabulls Housing Finance Ltd.
5.24
Bajaj Finance Ltd. 5.14
State Bank Of India 4.99
Axis Bank Ltd. 4.94
Bank Of Baroda 4.76
Canara Bank 4.44
ING Vysya Bank Ltd. 4.12
Other 24.26
Total 100
TATA DIVIDEND YIELD(G)Inception Date : 22-Nov-2004Fund Manager : Rupesh Patel
Fund Corpus (R Crs) 320Company Name %Infosys Ltd. 6.23 CRISIL Ltd. 5.43 HDFC Bank Ltd. 4.91 Repo Instruments 4.46 Sun TV Network Ltd. 4.35 ITC Ltd. 3.91 Coal India Ltd. 3.10 Navneet Publications (India) Ltd. 2.79 Glaxosmithkline Pharmaceuticals Ltd. 2.58
Mahindra & Mahindra Financial Services Ltd. 2.58
Other 59.64 Total 100
UTI BANKING SECTOR(G)Inception Date : 09-Apr-2004Fund Manager : Arun Khurana
Fund Corpus (R Crs) 352Company Name %ICICI Bank Ltd. 27.00 HDFC Bank Ltd. 24.35 State Bank Of India 11.05 Axis Bank Ltd. 10.43 Bank Of Baroda 3.47 ING Vysya Bank Ltd. 3.01 Punjab National Bank 2.94 IndusInd Bank Ltd. 2.50 Canara Bank 2.04 Federal Bank Ltd. 2.00 Other 11.21 Total 100
UTI OPPORTUNITIES FUND(G)Inception Date : 20-Jul-2005
Fund Manager : Anoop Bhaskar
Fund Corpus (R Crs) 3520
Company Name %
ITC Ltd. 6.18
Infosys Ltd. 5.69
HDFC Bank Ltd. 5.57
Reliance Industries Ltd. 4.97
ICICI Bank Ltd. 4.79
Tata Consultancy Services Ltd. 4.50
Larsen & Toubro Ltd. 4.43
Housing Development Finance Corporation Ltd. 4.05
CRISIL Ltd. 3.19
Sun Pharmaceutical Inds. Ltd. 3.19
Others 53.44
Total 100.00
TATA EQUITY OPPORTUNITIES(G)Inception Date : 25-Feb-1993
Fund Manager : Pradeep Gokhale
Fund Corpus (R Crs) 463
Company Name %
HDFC Bank Ltd. 7.96
Infosys Ltd. 7.96
Housing Development Finance Corporation Ltd.
7.51
ICICI Bank Ltd. 6.33
Bharti Airtel Ltd. 5.17
Repo Instruments 4.66
CRISIL Ltd. 3.83
Reliance Industries Ltd. 3.09
Oil & Natural Gas Corpn. Ltd. 3.01
Cadila Healthcare Ltd. 3.00
Other 47.48
Total 100.00
BIRLA SL MNC(G) Inception Date : 27-Dec-1999
Fund Manager : Ajay GargFund Corpus (R Crs) 382Company Name %Bayer CropScience Ltd. 8.26 ING Vysya Bank Ltd. 7.93 Hindustan Unilever Ltd. 6.60 ICRA Ltd. 6.16 Honeywell Automation India Ltd. 5.55 Maruti Suzuki India Ltd. 5.33 CRISIL Ltd. 4.89 Bosch Ltd 4.73 ITC Ltd. 3.46 Bata India Ltd. 3.33 Other 43.76 Total 100
RELIANCE PHARMA(G)Inception Date : 08-Jun-2004
Fund Manager : Sailesh Raj Bhan
Fund Corpus (R Crs) 686
Company Name %
DiviS Laboratories Ltd. 10.11
Sun Pharmaceutical Inds. Ltd. 8.47
Sanofi India Ltd. 8.35
Ranbaxy Laboratories Ltd. 8.11
Dr Reddys Laboratories Ltd. 8.08
Cipla Ltd. 7.98
Glaxosmithkline Pharmaceuticals Ltd. 6.73
Indoco Remedies Ltd. 5.43
Zydus Wellness Ltd 5.22
Abbott India Ltd. 5.12
Other 26.40
Total 100
HDFC MID-CAP OPPORTUNITIES FUND(G)
Inception Date : 25-Jun-2007Fund Manager : Chirag Setalvad
Fund Corpus (R Crs) 2746Company Name %Net Current Asset 6.11 Supreme Industries Ltd. 4.47 Ipca Laboratories Ltd. 3.46 Lupin Ltd. 2.50 Mindtree Ltd 2.48 Torrent Pharmaceuticals Ltd. 2.44 NIIT Technologies Ltd. 2.43 eClerx Services Ltd 2.40 Axis Bank Ltd. 2.31 Bayer CropScience Ltd. 2.22 Other 69.18 Total 100
KOTAK OPPORTUNITIES(G)Inception Date : 09-Sep-2004
Fund Manager : Harsha UpadhyayaFund Corpus (R Crs) 618Company Name %ICICI Bank Ltd. 6.98 Reverse Repo 6.51 Reliance Industries Ltd. 5.48 Tata Consultancy Services Ltd. 5.33 Infosys Ltd. 5.01 IndusInd Bank Ltd. 3.91 Yes Bank Ltd. 3.47 ITC Ltd. 3.25 Zee Entertainment Enterprises Ltd. 3.06 Oil & Natural Gas Corpn. Ltd. 3.04 Other 53.96 Total 100
RELIANCE EQUITY OPPOR-RET(G)Inception Date : 31-Mar-2005
Fund Manager : Sailesh Raj Bhan
Fund Corpus (R Crs) 5006
Company Name %
DiviS Laboratories Ltd. 6.28
Infosys Ltd. 5.09
State Bank Of India 4.37
ICICI Bank Ltd. 4.36
Hathway Cable & Datacom Ltd. 3.97
Trent Ltd. 3.93
Shoppers Stop Ltd. 3.44
Larsen & Toubro Ltd. 3.29
Maruti Suzuki India Ltd. 3.13
Cummins India Ltd. 3.07
Other 59.07
Total 100
BIRLA SL DIVIDEND YIELD PLUS(G) Inception Date : 26-Feb-2003
Fund Manager : Nishit DholakiaFund Corpus (R Crs) 1202Company Name %ICICI Bank Ltd. 6.19 ITC Ltd. 5.19 Infosys Ltd. 3.84 Oil & Natural Gas Corpn. Ltd. 3.53 Akzo Nobel India Ltd. 3.30 NTPC Ltd. 3.20 Clearing Corporation Of India Ltd. 2.99 Hindustan Unilever Ltd. 2.86 Tata Consultancy Services Ltd. 2.70 Tata Motors - DVR Ordinary 2.63 Other 63.57 Total 100
UTI DIVIDEND YIELD(G) Inception Date : 03-May-2005Fund Manager : Swati Kulkarni
Fund Corpus (R Crs) 3285Company Name %ITC Ltd. 6.76 Infosys Ltd. 6.18 State Bank Of India 5.35 ICICI Bank Ltd. 4.48 HDFC Bank Ltd. 3.65 NTPC Ltd. 3.19 Glaxosmithkline Pharmaceuticals Ltd. 3.14
Grasim Industries Ltd. 3.10 Akzo Nobel India Ltd. 2.96 Axis Bank Ltd. 2.92 Other 58.27 Total 100
THEMATIC & OPPORTUNITIES FUNDS
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JULY 2013 Investime 31
Note: The returns are calculated assuming investment in Growth option.
Note: The returns are calculated assuming investment in Growth option. SIP returns are calculated assuming investment of R1000 done on 1 of every month.
Source: ACEMF
The below mentioned table illustrates the yield on monthly Systematic Investment Plan (SIP) and Lumpsum investment for tenures like 1Year,3Year,5Year
Source: ACEMF
SIP Performance
The Incredible Power of SYSTEMATIC INVESTMENT PLAN
SIP Investment Returns (% XIRR) Lumpsum Investment Returns (% CAGR)Scheme Benchmark Inception Date NAV as on 12 July 13 1 Year 3 Year 5 Year 1 Year 3 Year 5 YearLarge Cap FundsBirla SL Frontline Equity Fund(G) S&P BSE 200 27-Sep-02 100.01 6.09 7.42 12.14 17.87 4.77 11.70Birla SL Top 100 Fund(G) CNX Nifty Index 24-Oct-05 25.43 1.52 5.92 10.54 13.11 4.90 9.94Canara Rob Eq Diver Fund-Reg(G) S&P BSE 200 18-Sep-03 62.00 -0.58 5.15 12.50 8.73 4.23 13.05DSPBR Equity Fund-Reg(G) CNX 500 Index 08-Jun-07 16.46 -7.51 -0.74 7.30 4.81 0.00 8.71DSPBR Top 100 Equity Fund-Reg(G) S&P BSE 100 11-Mar-03 107.32 -2.20 2.73 8.40 8.66 3.17 9.26Franklin India Bluechip Fund(G) S&P BSE SENSEX 03-Dec-93 232.57 0.54 4.17 10.69 9.87 4.13 11.47HDFC Equity Fund(G) CNX 500 Index 02-Jan-95 272.40 -5.54 0.19 10.18 6.28 0.71 12.16HDFC Top 200 Fund(G) S&P BSE 200 03-Sep-96 214.42 -3.30 1.81 9.72 8.13 1.88 11.34ICICI Pru Dynamic Plan-Reg(G) CNX Nifty Index 12-Nov-02 112.37 -4.14 2.37 9.70 5.60 2.57 9.84ICICI Pru Focused BlueChip Eq Fund-Reg(G) CNX Nifty Index 26-May-08 18.54 2.91 6.03 13.10 13.07 6.00 13.69Kotak 50(G) CNX Nifty Index 05-Feb-03 110.39 3.37 4.80 8.58 12.96 2.82 6.95L&T Equity Fund(G) S&P BSE 200 16-May-05 37.02 -0.43 2.50 10.00 8.66 1.97 10.61Morgan Stanley A.C.E(G) S&P BSE 200 10-Apr-08 15.46 1.64 3.27 10.68 12.85 0.87 10.75Principal Large Cap Fund(G) S&P BSE 100 17-Nov-05 28.77 -5.71 1.31 8.96 6.40 0.65 9.85Reliance Reg Savings Fund-Equity Plan(G) S&P BSE 100 12-Jun-05 30.60 -6.03 1.44 8.59 9.74 -0.54 8.89SBI Contra Fund-Reg(G) S&P BSE 100 06-May-05 55.83 -3.63 1.50 6.02 10.15 -1.38 5.98Tata Pure Equity Fund(G) S&P BSE SENSEX 15-May-98 108.92 2.78 5.36 10.31 10.27 2.64 9.70Templeton India Growth Fund(G) MSCI India 05-Sep-03 118.12 -2.29 1.54 8.46 9.75 0.18 8.14UTI Equity Fund(G) S&P BSE 100 01-Aug-05 62.94 3.19 6.79 12.35 11.92 6.32 11.99Mid Cap/Multi Cap FundsBirla SL Midcap Fund(G) CNX Midcap 16-Oct-02 109.16 -4.89 0.94 8.82 7.53 -1.27 9.21DSPBR Small & Mid Cap Fund-Reg(G) CNX Midcap 16-Nov-06 17.14 -16.24 -2.87 9.43 1.18 -1.22 10.93HDFC Mid-Cap Opportunities Fund(G) CNX Midcap 05-Jul-07 17.62 -4.04 4.75 14.84 6.61 5.34 14.66ICICI Pru Discovery Fund-Reg(G) CNX Midcap 16-Aug-04 52.59 -9.53 3.14 14.70 4.39 2.93 15.96IDFC Premier Equity Fund-Reg(G) S&P BSE 500 28-Sep-05 37.61 -0.01 6.47 15.59 14.03 5.40 14.93IDFC Sterling Equity Fund-Reg(G) CNX Midcap 07-Mar-08 19.81 -8.42 2.91 13.05 6.16 2.59 16.92Kotak Midcap Scheme(G) CNX Midcap 25-Feb-05 25.62 -10.88 1.11 9.64 5.20 0.35 7.66Reliance Equity Opportunities Fund(G) S&P BSE 100 31-Mar-05 40.39 -6.13 5.60 15.90 8.76 5.44 15.45SBI Emerging Businesses Fund-Reg(G) S&P BSE 500 12-Oct-04 54.08 -5.70 10.70 20.72 12.41 11.46 14.93Sundaram Select Midcap(G) S&P BSE Mid-Cap 30-Jul-02 159.81 -4.45 2.60 11.69 8.79 2.05 11.35UTI Mid Cap Fund(G) CNX Midcap 01-Aug-05 32.86 -6.43 1.25 10.14 6.04 -0.35 9.12Benchmark IndicesS&P BSE SENSEX 10.45 5.12 8.70 13.88 3.95 8.77S&P BSE 100 10.05 5.03 8.85 13.83 3.23 8.89S&P BSE 200 9.00 4.35 8.64 12.96 2.51 8.86CNX 500 Index 8.33 4.04 8.19 12.49 2.08 8.80CNX Nifty Index 10.09 5.41 8.89 13.67 4.30 8.93S&P BSE Mid-Cap -2.64 -2.31 4.89 3.45 -3.55 4.56S&P BSE 500 7.14 3.40 8.13 11.53 1.76 8.30CNX Midcap 1.33 0.27 7.89 5.75 -1.26 9.52
Scheme Benchmark Inception Date NAV as on 12 July 13
Total No. of Installments
Total Amount Invested (R) Present Value (R) Annualized
Yield (%) Fund Manager
Large Cap FundsBirla SL Frontline Equity Fund(G) S&P BSE 200 27-Sep-02 100.01 60 60000 80621.61 12.14 Mahesh PatilBirla SL Top 100 Fund(G) CNX Nifty Index 24-Oct-05 25.43 60 60000 77565.58 10.54 Mahesh PatilCanara Rob Eq Diver Fund-Reg(G) S&P BSE 200 18-Sep-03 62.00 60 60000 81316.97 12.50 Ravi GopalakrishnanDSPBR Equity Fund-Reg(G) CNX 500 Index 08-Jun-07 16.46 60 60000 71717.11 7.30 Apoorva ShahDSPBR Top 100 Equity Fund-Reg(G) S&P BSE 100 11-Mar-03 107.32 60 60000 73662.19 8.40 Apoorva ShahFranklin India Bluechip Fund(G) S&P BSE SENSEX 03-Dec-93 232.57 60 60000 77853.12 10.69 Anand RadhakrishnanHDFC Equity Fund(G) CNX 500 Index 02-Jan-95 272.40 60 60000 76894.21 10.18 Prashant JainHDFC Top 200 Fund(G) S&P BSE 200 03-Sep-96 214.42 60 60000 76049.94 9.72 Prashant JainICICI Pru Dynamic Plan-Reg(G) CNX Nifty Index 12-Nov-02 112.37 60 60000 76002.27 9.70 Sankaran NarenICICI Pru Focused BlueChip Eq Fund-Reg(G) CNX Nifty Index 26-May-08 18.54 60 60000 82495.61 13.10 Manish GunwaniKotak 50(G) CNX Nifty Index 05-Feb-03 110.39 60 60000 73979.19 8.58 Pradeep KumarL&T Equity Fund(G) S&P BSE 200 16-May-05 37.02 60 60000 76555.81 10.00 Soumendra Nath LahiriMorgan Stanley A.C.E(G) S&P BSE 200 10-Apr-08 15.46 60 60000 77829.08 10.68 Jayesh GandhiPrincipal Large Cap Fund(G) S&P BSE 100 17-Nov-05 28.77 60 60000 74670.95 8.96 Anupam TiwariReliance Reg Savings Fund-Equity Plan(G) S&P BSE 100 12-Jun-05 30.60 60 60000 74004.45 8.59 Omprakash KuckianSBI Contra Fund-Reg(G) S&P BSE 100 06-May-05 55.83 60 60000 69519.91 6.02 R. SrinivasanTata Pure Equity Fund(G) S&P BSE SENSEX 15-May-98 108.92 60 60000 77138.78 10.31 Pradeep GokhaleTempleton India Growth Fund(G) MSCI India 05-Sep-03 118.12 60 60000 73754.89 8.46 Chetan SehgalUTI Equity Fund(G) S&P BSE 100 01-Aug-05 62.94 60 60000 81031.26 12.35 Anoop BhaskarMidcap/Multi Cap FundsBirla SL Midcap Fund(G) CNX Midcap 16-Oct-02 109.16 60 60000 74404.75 8.82 Sanjay ChawlaDSPBR Small & Mid Cap Fund-Reg(G) CNX Midcap 16-Nov-06 17.14 60 60000 75518.11 9.43 Apoorva ShahHDFC Mid-Cap Opportunities Fund(G) CNX Midcap 05-Jul-07 17.62 60 60000 86007.53 14.84 Chirag SetalvadICICI Pru Discovery Fund-Reg(G) CNX Midcap 16-Aug-04 52.59 60 60000 85722.32 14.70 Mrinal SinghIDFC Premier Equity Fund-Reg(G) S&P BSE 500 28-Sep-05 37.61 60 60000 87567.92 15.59 Kenneth AndradeIDFC Sterling Equity Fund-Reg(G) CNX Midcap 07-Mar-08 19.81 60 60000 82376.20 13.05 Aniruddha NahaKotak Midcap Scheme(G) CNX Midcap 25-Feb-05 25.62 60 60000 75897.33 9.64 Pankaj TibrewalReliance Equity Opportunities Fund(G) S&P BSE 100 31-Mar-05 40.39 60 60000 88203.41 15.90 Sailesh Raj BhanSBI Emerging Businesses Fund-Reg(G) S&P BSE 500 12-Oct-04 54.08 60 60000 98879.80 20.72 R. SrinivasanSundaram Select Midcap(G) S&P BSE Mid-Cap 30-Jul-02 159.81 60 60000 79749.89 11.69 S. KrishnakumarUTI Mid Cap Fund(G) CNX Midcap 01-Aug-05 32.86 60 60000 76824.04 10.14 Anoop Bhaskar
32 Investime JULY 2013
Investime Direct Equity
EQUITY MODEL PORTFOLIO
Background:We believe the coming months will be exciting for the Indian stock markets. As they are poised for a big momentum, our research experts recommend this is the right time to invest in high quality stocks and steadily create wealth in the coming years.Our “Model Portfolio” consists of 2 equity portfolios - Growth or Value, with the investment horizon of 1 year. These portfolios will be actively managed by our research team to incorporate regular modifications, based on the price objective being reached and for any change in the fundamentals of the industry and macro environment.
Growth Portfolio:Includes select stocks which hold high growth potential but also constitute high risk. Ideal for: If you are an aggressive investor seeking high risk-reward ratio. Value Protfolio:Includes select stocks where risk is comparatively less and hence corresponding returns will also be lower (compared to the Growth Portfolio). Ideal for: If you are seeking less risky investments.
Performance:During the period 8th Jun13 to 30th Jun13, our growth and value portfolios have given a return of -0.5% and 0.2% respectively, as against return of -1.8% for BSE100 index, thereby generating an alpha of 1.3% and 2.0% respectively.
Portfolio % Return Generated Since Inception* AlphaGrowth -0.5 1.3Value 0.2 2.0BSE 100 -1.8 –
GrowthCompany Sector Weightage CMP*(R)HDFC Bank Financials 8% 668.5ICICI Bank Financials 7% 1069.8Yes Bank Financials 8% 461.0LIC HF Financials 6% 254.8TCS IT 5% 1518.4Tata Motors Auto 6% 281.5Maruti Suzuki Auto 7% 1538.0ITC FMCG 13% 324.4Britannia FMCG 8% 671.8Sun Pharma Pharma 5% 1008.5Reliance Inds. Oil & Gas 6% 861.9Cairn India Oil & Gas 5% 289.5Larsen & Toubro Capital Goods 5% 1404.2Bharti Airtel Telecom 5% 291.4Adani Ports Others 6% 149.8
TOTAL 100%
New Addition
*CMP as of 28th June 2013
New Addition
*CMP as of 28th June 2013
ValueCompany Sector Weightage CMP*(R)HDFC Bank Financials 10% 668.5ICICI Bank Financials 8% 1069.8St Bk of India Financials 7% 1953.6Infosys IT 8% 2493.3TCS IT 6% 1518.4Hero Motocorp Auto 7% 1662.3Maruti Suzuki Auto 8% 1538.0ITC FMCG 10% 324.4Godrej Consumer FMCG 5% 815.9Cipla Pharma 5% 391.5Reliance Inds. Oil & Gas 5% 861.9Cairn India Oil & Gas 6% 289.5Larsen & Toubro Capital Goods 5% 1404.2Bharti Airtel Telecom 5% 291.4NTPC Power 5% 143.7
TOTAL 100%
JULY 2013 Investime 33
COM
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in
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34 Investime JULY 2013
COM
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Min
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m fo
r any
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for t
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ame
or re
late
d to
any
oth
er F
Ds.
JULY 2013 Investime 35
Stock of the Month
GUJARAT PIPAVAV PORT LIMITED (GPPL)
Source: NSE, BSE
Company DataBSE Code 533248NSE Code GPPLEquity Capital (rmn) 483.4Face Value (r) 10Market Cap (r bn) 22,214Avg Daily Volume (Qtly) 3,73,50052 week H/L (r) 61/41
Source: BSE
Shareholding (%)
Holders Mar 13
Dec 12
Sep 12
Promoters 43.0 43.0 43.0FIIs 33.0 31.1 27.8MFs/Banks & FI’s 12.1 14.1 13.8Public & Others 11.9 11.8 15.4
Source: NSE, ABML Research
Rating CMP Target Upside / Downside %
BUY 46.0 58.0 26.2
Investment Arguments
Strategically located; Rail and Road Connectivity an added advantage. Port’s strategic location and good rail and road infrastructure has made it connected to majority of the ICD’s and hence it has moved from No. 5 position 3 years ago to No.1 position in terms of handling ICD cargo in December 2012. GPPL handled 250 trains (highest no. of trains handled in March 2013. Port Pipavav’s location is ideally situated to take advantage of a rich hinterland (markets of Rajasthan, Delhi/NCR and Punjab which are landlocked). The northwest markets generate ~60% of India’s cargo which throws huge opportunity for GPPL.
Strong Long term growth story; Capacity constraint at major ports and transition towards containerization to further push the volumes to minor ports. As per Shipping Ministry Coefficient of correlation between GDP and Major and Minor Ports traffic is 0.998. As per DP World container traffic has grown on an average at 1.6x of foreign trade and 2.6x multiple of GDP which portrays strong long term structural story in the sector. Containerization in India @17-20% is far under penetrated when compared to developed country’s 65-70% and therefore a huge long term potential and scope of margin expansion
TAMP and higher utilisation at major ports- going GPPL’s way: Currently, JNPT and Mumbai ports (under TAMP) are running at 100% + capacities and hence are not being able to cater to all liners, and not having timed their capex well is giving nearby ports like GPPL (under GMB) an opportunity. On the contrary, GPPL is undergoing a capex of ~`11bn giving a strong indication of likely volume pick up in medium to long term. Minor ports volumes have grown at a CAGR of 16.2% from 2006-2012 viz a viz Major ports CAGR growth of 4.8% during the same period.
DFC & DMIC – Potential Game Changers. Dedicated Freight Corridor is likely to cover 38% (or 564kms) of Gujarat while Delhi Mumbai Industrial Corridor (DMIC) influence area is expected to cover 62% of the total area of Gujarat (18 / 26 districts). Western Dedicated Freight Corridor (WDFC) is expected to handle 34.3mt in FY17 and 39.9mt in FY22; while DMIC influence area in Gujarat is likely to attract US$30bn (1/3 of total potential investments in DMIC). DFC and DMIC will further push the volume growth and are expected to mark a paradigm shift in the Indian transportation scenario.
Outlook & Valuations: GPPL is a good play in the Indian infrastructure space with an a) efficient and strong underlying operational asset b) Strong parentage and c) robust infrastructure capabilities coupled with strong road and rail connectivity. Overburdened major ports, especially on the West coast make a strong case of traffic diversion to the efficient minor ports like GPPL in the short to medium term. We value GPPL’s port business on a DCF basis and on P/B for its value in Pipavav Rail Corporation (PRCL) and arrive at a May 2014 SOTP target price of `58 giving an upside of 26.2% from current levels and hence we recommend a “Buy” on the stock. At the CMP of `46 the stock trades at a 1.7x CY13E P/B and 11.0x its CY13E EV/EBITDA.
Financial Snapshot (Rmn)In R mn Sales YoY EBITDA YoY Net Profit YoY EPS YoY EBITDA % RoE RoCE P/E P/BV
CY12 4,160 (%) 1,819 (%) 740 (%) (`) (%) 43.7 (%) (%) (x) (x)CY13E 4,294 4.9 2,061 (0.5) 888 7.9 1.5 7.9 48.0 6.1 9.3 30.0 1.8CY14E 4,863 3.2 2,480 13.3 1,195 20.0 1.8 20.0 51.0 6.8 9.5 25.0 1.7
Source: Capitaline
Chart: GPPL vs. Sensex
Analyst DetailsShreyans [email protected]
Risk Return Matrix
Low
M
ediu
m
Hig
h
Retu
rn
RiskLow Medium High
36 Investime JULY 2013
38 Investime JULY 2013
A Stable RUPEE for Stable MARKETS
Feature
The Rupee has seen a marked depreciation in the last six weeks. Countries with large current account deficits such as India, have been particularly affected, despite their relatively promising economic fundamentals
Contributed by ABMML Research
The Reserve Bank of India has hiked the peripheral policy rates with the objective of reducing
volatility in the Dollar/Rupee exchange rate, and stabilising the FII inflows. The measures announced by the RBI to stabilise the Rupee, have hit the equity and debt markets hard. Despite this, it is anticipated that this bitter medicine would heal the ills and usher in some stability in the markets, in the medium term. The secret of happiness is to tide over the short term pains with tact, patience and timely action.
The BackgroundThe measures announced by the RBI have the singular objective of stabilising the Rupee, and thereby contain the depreciation. RBI has clearly indicated the following two factors as the triggers for the current action —(i) “The market perception of the likely
tapering of the US Quantitative Easing has triggered outflows of portfolio investment, particularly from the debt segment. Consequently, the Rupee has seen a marked depreciation in the last six weeks. Countries with large current account deficits, such as India, have been particularly affected, despite their relatively promising economic fundamentals.”
(ii) “The exchange rate pressure also evidences that the demand for foreign currency has increased in part, vis-
this measure. Fresh investments can be looked at during these times, preferably at the short end.
Very short end funds like Liquid and Ultra Short Term, and Short Term Income funds and Dynamic Bond Funds (with lower duration) are the preferred investment options currently. Once the Rupee stabilises, FIIs may be looking to enter the debt market, thereby supporting the Rupee. The hopes of a rate cut from the RBI in the near future is completely out of the question. This is likely to re-establish interest rate differential between the US bond yields and Indian bond yields, and may fuel FII flows in the debt market in the future.
Risks – The UnpredictablesWe need to see how the flows trend out in the next few days. If the currency stabilises, which is most likely, things will settle down. However, if the Rupee slides or continues to remain weak, RBI may be compelled to further tighten the rate hike. It is also heard that the government may issue a foreign currency denominated sovereign bond which could mop up a good amount of USDs on the same lines as the earlier issue of Resurgent India Bonds. This would solve most of the problems to a large extent.
end of the curve. The off–the-run as well as the new 10-year benchmark are presently trading at 8.21 per cent and 8.08 per cent levels, respectively, a surge of more than 50 bps. The rates on CDs and CPs have also moved up to 10 per cent levels and may remain at elevated levels for a while, but corporates are more likely to reduce borrowings at these levels, and thereby, rates may come down over the medium term. The latest yield curve chart is very interesting, as it shows that it has become more inverted compared to a flattish curve on 15th July 2013, and may remain inverted in the near term, once the Rupee stabilises and conditions change. Then it may become flattish again, in the short to medium term.
This is a temporary measure to stabilise the Rupee, and therefore, it may have adverse impact on the market only in the immediate or near term. For a period of 4-6 weeks, going by the previous action taken by the RBI, we may not see any major recovery in the yields, in the near term.
There will be some pain for investors who have entered 2-3 months back, but over 6 months to a 1-year period, yields may eventually come down as this move will put some downward pressure on growth, and the RBI will be compelled to reverse
à-vis the Rupee, because of the improving domestic liquidity situation.”
Action by RBIThe following measures were announced by the RBI: • Marginal Standing Facility
(MSF) rate has been hiked with immediate effect. The facility will be available to banks at 300 basis points above the policy repo rate, i.e., 10.25 per cent.
• Bank Rate has also been hiked to 10.25 per cent, with immediate effect.
• The overall allocation of funds under the LAF will be limited to 1.0 per cent of the Net Demand and Time Liabilities (NDTL) of the banking system, which reckoned at R75,000 Crores for this purpose.
• The RBI has conducted Open Market Sales of Government of India Securities of R12,000 Crores.
The ImpactYields across the board have already risen — from overnight to the long
Fll Flows ($’bn) Debt Equity Total
June -5.68 -1.85 -7.54
July MTD -2.03 -1.05 -3.08
YTD -3.23 12.45 9.22
The Yield Curve
16-July-13
15-July-13
40 Investime JULY 2013
RBI intervenes to PROTECT THE RUPEE... AGAIN
Feature
The Reserve Bank of India has undertaken several measures to contain the volatility in the foreign exchange market. These measures have had a restraining effect on volatility, with a concomitant stabilising effect on the exchange rate
Contributed by ABMML Research
The advent of the monsoons has augmented a shower of reforms by the RBI, with particular
relevance to the declining Rupee and its impact on the uncomfortably high current account deficit (CAD — currently at 4.8 per cent of GDP). With sentiments turning positive in the US, and investors displaying risk-on appetite, the greenback has outperformed its global peers. The Rupee has depreciated by 12 per cent since the beginning of the financial year, making it one of the worst performing currencies in Asia. FIIs
have also been net sellers in debt to the tune of $3.32 Billion in 2013 alone.
In light of the above events and in RBI’s own words: The Reserve Bank of India has undertaken several measures to contain the volatility in the foreign exchange market. Amongst them were some measures intended to check excessive speculation adding to undue volatility in market conditions.
These measures have had a restraining effect on volatility, with a concomitant stabilising effect on the exchange rate. Based on a review of
the measures, and an assessment of the liquidity and overall market conditions, the RBI decided to modify the liquidity tightening measures as follows:• The overall limit for access to LAF,
by each individual bank, is set at 0.5 per cent of its own NDTL outstanding as on the last Friday of the second preceding fortnight. The change came into effect on July 24, 2013. For the purpose of arriving at an individual bank’s limit, the NDTL would be the same as being reckoned for the purpose of maintenance of CRR, during a reporting fortnight.
• Currently, banks are allowed to maintain their Cash Reserve Ratio (CRR) prescribed by the RBI on an average daily basis during a reporting fortnight, with a minimum of 70 per cent of the required CRR on a daily basis. Effective from July 27, 2013, banks are required to maintain a minimum daily CRR balance of 99 per cent of the requirement.
• The RBI also announced auction of Cash Management Bills, with a tenure of 28 days, and 56 days for an amount of R3,000 Crores.
These measures have been termed as “temporary”, with the
Ultra Short Term Funds which have stabilised over the past few days, after the RBI announced the measures to curb the volatility in Rupee on the 15th of July. Long duration funds like Income and Gilt, have seen a major fall in NAVs and returns, and are expected to remain volatile.
Taking cognisance of the current market scenario, the following investment avenues may be considered:• Any immediate deployment of
funds for conservative investors (like those who invest in bank FDs), may be channelised into Fixed Maturity Plans (FMPs), as they are an attractive investment avenue because of the high short-term yields, consequent to the tightening measures by the RBI.
• Investments in Liquid Funds may be done as the very short-term and overnight rates are expected to stabilise. Further, the substantial fall in NAV yesterday gives an opportunity to invest in these funds.
• Investment into the short end of the curve looks very attractive currently, as the yields are high, and any flattening of the curve will be beneficial for the Short Term Income Funds. However, the entry into Short Term Income Funds should be done in a phased manner, in 2-3 tranches, over the next few weeks.
• Dynamic Bond Funds with a lower maturity profile (modified duration
jewellery business/bullion dealers, supplying gold to jewellers.” Last year, India imported around 800 tonnes and exported around 60 tonnes, thereby this year the import volume should come down and exports should increase.
These measures by the RBI had plunged the debt market into a frenzy, with yields spiking by more than 50bps across the yield curve, and the new 10-year government benckmark yield, touching 8.44 per cent. On 24th July, the RBI auctioned R7,000 Crores Of 91-day T-Bills at a yield of 11 per cent, a jump of ~350bps over the previous auction of the same T-Bills on 10th July. This highlights the extent to with the Central Bank is focused on supporting the Rupee, by squeezing out liquidity.
The RBI has also spoken about increasing rates for NRIs in order to improve the Dollar inflow into the economy, and have deffered but not ruled out underwriting a Sovereign Bond. These initiatives by the RBI has stemmed the fall of the Rupee to some extent, with the Rupee trading at R58.94/$ from levels of ~R61.50/$ touched during early July. The yields have also rallied, after receiving some assurance that the Central Bank is unlikely to hike the CRR rate beyond the current 4 per cent, which looked like a possibility before the appreciation in the Rupee brought some comfort to the policymakers and the markets alike.
We may see some volatility in the returns and NAVs of Liquid and
single objective of reducing the uncertainty of the Rupee. Going by history, these steps may likely be reversed in a month to two at the most.
The RBI has also revised the scheme for Gold imports, to bring current account deficit under control. The Revised scheme states that, “Nominated banks/Nominated agencies will ensure that at least one-fifth of every lot of gold imports (in any form/purity, including import of gold coins/dore), is exclusively made available for the purpose of export. They shall make gold available, in any form for domestic use, only to entities engaged in
42 Investime JULY 2013
The Yield Curve
of 2-2.5 yrs) and higher allocation to cash and equivalents, may be looked at in a phased manner over the next few weeks.
• Long Duration Funds, like Income and Gilt funds, should be avoided at this juncture as the yields are very volatile and there may be pains over the next few weeks. The Yield Curve which was flat before
RBI’s announcement, has become inverted and will take time to flatten again, but the immediate impact will be seen at the short end of the curve. The spread between the 1 Year and 10 Year Benchmark Yields had widened to its highest level in last 13 years to 100 bps, as against its previous high of 60 bps. This indicates that the Yield Curve has never been so inverted in last 13 years and the fall in the short-term yields would be steeper than that of the long term yields. However, the flattening of the Yield Curve would be gradual. The yields will be further guided by the Rupee movement, FII flows and any further action by the RBI.
It will be interesting to look at the key rates to comprehend the likely direction of the markets in the coming days, especially in light of the recent developments in the debt market.
Date Security Open High Low Close
31-Jul-13 USD/INR 60.85 61.17 60.35 60.40
31-Jul-13 1 Month USD/INR NDF 61.05 61.30
31-Jul-13 7.16 GS 2023 (Current 10 Yr) Yield [%] 8.32 8.34 8.11 8.17
31-Jul-13 8.15 GS 2022 (Off-The- Run 10 Yr) Yield [%] 8.72 8.88 8.68 8.69
31-Jul-13 US 10 Yr Treasury Yield [%] (Latest & Previous Close) 2.60 2.68
31-Jul-13 1 Yr CD Benchmark Yield [%] 9.96 9.95
31-Jul-13 1 Yr CP Benchmark Yield [%] 10.81 11.12
31-Jul-13 6-Month CD Benchmark Yield [%] 10.46 10.50
31-Jul-13 3-Month CD Benchmark Yield [%] 10.81 11.02
31-Jul-13 6-Month CP Benchmark Yield [%] 11.21 11.46
31-Jul-13 3-Month CP Benchmark Yield [%] 11.50 11.77
31-Jul-13 7.83 GS 2018 (5 Yr) Yield [%] 9.69 9.69 8.79 8.90
31-Jul-13 7.37 GS 2014 (1 Yr) Yield [%] 9.20 9.96
31-Jul-13 10 Yr AAA Benchmark Yield [%] 9.28 9.47
31-Jul-13 5 Yr AAA Benchmark Yield [%] 9.58 9.80
31-Jul-13 1 Yr AAA Benchmark Yield [%] 10.27 10.42
31-Jul-13 CBLO [Overnight T+0] [%] 10.05 10.20 8.00 9.98
31-Jul-13 Call Rate [%] 10.25 10.25 8.75 9.75
*The latest dates as on 31 July, 2013
Date Net FII Equity [USD Mn]
Net FII Debt [USD Mn]
30-Jul-13 37.98 19.08
29-Jul-13 -35.26 -39.90
MTD -1,015.05 -2,010.52
YTD 12,485.80 -3,208.90
DateRepo Bids Received [R Crs]
Repo Bids Accepted [R Crs.]
31-Jul-13 37,699 37,698
30-Jul-13 37,954 37,953
8.7268.676
7.927
OUR BRANCHES
ANDHRA PRADESHHyderabad 6-3-649/8, Nalanda Complex 1st Floor, Amruth Estates Somajiguda, Hyderabad - 500082, Andhra Pradesh, IndiaTel: 040-30567000/7001/2/3/4/5KadappaDoor No. 20/366, Ground Floor, Krishna Circle, Mastaovali Street, Kadappa - 516001, Andhra Pradesh, IndiaTel: 08562-301163/301164/65/66/67Manchirial - Kakani Complex7-10 To 7-14, First Floor Kakani Complex, Opp Rx Enterprises, Ganga Reddy Road, Manchirial - 504208, Andhra Pradesh, IndiaTel: 08736-325600, 08736-325605, 08736-325707Nandyal - Nagalakunta Road2-418/B, Nagulakunta Road, Nandyal, Nandyal - 518501, Andhra Pradesh, IndiaTel: 08514-324930, 08514-324931Secunderabad - BegumpetNo. 1-8-449, First Floor, Opp To Police Line, Fibrolite Building, Above Dhl Courier, Begumpet, Secunderabad - 500003, Andhra Pradesh, IndiaTel: 4032511833, 040-30878949/50/51/52 53/54/55/56/57/58/59/60/61/62/63Warangal - Station RoadDoor No. 8-3-99/1, 1st Floor, Near Warangal Chourastha, Station Road, Warangal – 506002, Andhra Pradesh, IndiaTel: 0870-3203110, 9346211354, 0870-3058200/01/02/03/04Markapur - Nehru BazarNo. 7/273, Y. S. R. Complex, 1st Floor, Nehru Bazar, Markapur, Prakasam Dt, Andhra Pradesh – 523 316, IndiaTel: 08596-222610/11 (BSNL)Nellore - Sunday MarketD/No. 16/230, E Block, II Floor, Kaizen Heights, Subrahmanyeswara Swami Temple Road, Sunday Market, Gandhi Nagar, Nellore – 524 001, Andhra Pradesh, India Tel: 0861-3205641/42/43/44,0861-3051000/01/02/03/04Ongole - Kurnool road2nd Floor, Vasu Plaza, near Addanki bus stand, Kurnool road, Ongole – 523002, Andhra Pradesh, IndiaTel: 08592-320730, 08592-324965/66/67Anakapalle - KVR ComplexNo. 12-1-70, KVR Complex, Opp Rama, Chandra Home Appliance Main Road, Anakapalle – 531001, Andhra Pradesh, India Tel: 08924-329978, 08924-326202Gudivada - Eluru RoadNenis Plaza Door No. 11/218, Eluru Road, Opp Gopalakrishna Theatre, Gudivada – 521301, Andhra Pradesh, IndiaTel: 08674-301101/02/03/04/05Kakinada - Jawahar StreetDoor No. 21-1-3, 1st Floor, Above Popular Automobiles, Jawahar Street, Kakinada – 533001, Andhra Pradesh, IndiaTel: 0884-3293835/3294303/3299383Ponnur - Opp Tenali Bus StopD.No. 17-4-4F, Netajinagar, Opp. To Tenali Bus Stop, Main Road Nidubrolu, Ponnur – 522124, Andhra Pradesh, IndiaTel: 0864-3320038/39Rajahmundry - Gangaiah ColonyDr. Gangaiah Colony, Door No. 8-24-122, 1st Floor, Main Road, Rajahmundry – 533101, Andhra Pradesh, IndiaTel: 0883-3291124,
0883-3042840/841/842/843/844Vijayawada - Labbipet39-9-1 Sailok Complex, M.G. Road, Labbipet, Vijayawada – 520010, Andhra Pradesh, IndiaTel: 0866-3297565, 0866-3297590,0866-3058230/31/32/33/34Vishakapatnam - Old GajuwakaDoor No. 7-15-19, 1st Floor, Appanna Complex, N H -5 Road, Old Gajuwaka, Vishakapatnam – 530026, Andhra Pradesh, IndiaTel: 0891-3298668, 0891-3299657,0891-3082400/01/02/03/04Vishakapatnam - Siripuram1st Floor Praveen Plaza, Vip Road Near Tycoon Heritage Hotel, C.B.M. Compound Siripuram, Visakhapatnam - 530003, Andhra Pradesh, IndiaTel: 0891-3082450/51/52/53/54Vizianagaram - Mayuri JunctionShop No. G - 1, Sai Durga Commercial Complex, Near Mayuri Junction, Railway Station Road, Vizianagaram - 535002, Andhra Pradesh, IndiaTel: 08922-329486, 08922-329516Secunderabad - S.P Road4th Floor, May Fair Complex, S. P. Road, Secunderabad 500003Tel: 040-44175701-57 -(Airtel)
BIHAR Patna - Boring RoadMaa Sharda Complex, East Boring Canal Road, GPO, Post Office, Patna - 800001, BiharTel: 0612-3203936, 0612-3204633 , 0612-3207230, 0612-3264447, 0612-3265517
CHATTISGARH Bhilai - Civic CentreShop No. 132, New Civic Center, Bhilai, Bhilai - 490006, Chhatisgarh, IndiaTel: 0788-3293223, 0788-3299480, 0788-3299520Bilaspur - Jain PlazaShop No. 319, Jain Plaza, Cmd Chowk Link Road, Bilaspur - 495001, Chhatisgarh, IndiaTel: 07752-326100,07752-326393/326399Korba - S. S. PlazaFA - 9, S. S. Plaza, Power House Road, Korba - 495677, Chhatisgarh, IndiaTel: 07759-321990Raipur - Banstal RoadNo. 8 & 9, 3rd Floor, Milliennium Plaza, Banstal Road, Raipur - 492001, Chhatisgarh, IndiaTel: 7713294806, 7713296197/96287/96289
DELHI Delhi - Mayur ViharP-17, I Floor, Pandav Nagar, Mayur Vihar, Phase I, Delhi - 110 091Tel: 011-32227408, 32227411/12/13, 011-30273590/91/92/93/94/95 to 99Delhi-DwarkaT-10, HL Square, Plot No.6, Sec- 5, Dwarka - 110 075Tel: 011-32227418/19011-30273565, 011-30273566/67/68/69 Delhi - Rajindra PalaceNo. 202, 7 - Sethi Bhawan, Rajindra Place, New Delhi - 110008, Delhi, IndiaTel: 011-30273455/56/57/58/59, 011-30273653, 1132553261, 1132094442,1132092888,1132094277
Gurgaon - M. G. RoadNo.403-A, JMD Regent Plaza, M. G. Road, Gurgaon, Delhi, IndiaTel: 0124-4983250 (Airtel PRI Connection)Delhi - Pitampura311, 3rd Floor, A-9, Northex Tower, Pitampura, Delhi -110034Tel: ?????????Delhi - Defence Colony (1st Floor)A -270, 1st Floor, Defence Colony, New Delhi – 110024Tel: 011-43363500/46204400 - (Airtel)
GUJARAT Ahmedabad - Navrangpura1/B, Ravish Complex, 2nd Floor, Opp. Kiran Motors, Swasthik Cross Road, Navrangpura, Ahmedabad - 380009, Gujarat, IndiaTel: 7932511654,7932513074,7932513290,7932513292,7932513303,7932513325, 079-30487104,079-30487105/06/07 to 16 Ahmedabad - ManinagarFF/ 06 - 07, Shivani Avenue Opp. AMCO Bank, Jawahar Chowk Cross Road Maninagar, Ahmedabad - 380008, Gujarat, India7932205010/11/12,7932204705/06, 7932920390, 7932457469, 7932457470, 7932440035, 7932511654, 079-32204706, 079-32442278, 079-32440035, 079-32528223, 079-32457467Ahmedabad - Vastrapur - Mansi CircleNo. 20, G. F. Sunrise Complex, Mansi Cross Roads, Satellite, Ahmedabad - 380 015Tel: 079-32211259/60Ahmedabad - Arya Arcade 202, 2nd Floor, Aarya Arcade, Next to Crossword, Mithakali Six Road, Navrangpura, Ahmedabad-380009Tel: 7932456419, 079-40276000-30 (Airtel)Anand - Near Grid (Recently Shifted)304 – 305, Madhav Complex, Near Grid Crossing, Anand – 388001Tel: 02692-322033/34/36Baroda - ABS Tower402, 4th Floor, Sakar Buildings, Old Padra Road Opp ABS Tower, Baroda – 390007, Gujarat, IndiaTel: 0265-3951828/29/30/31/32,2653260290, 2653264882,Bhavnagar - Waghawadi RoadNo. 8 - A Gangotri First Floor, Waghawadi Road, Opp. Daxinamurti School, Bhavnagar - 364002, Gujarat, IndiaTel: 0278-3984775/76/77/78/79Jamnagar - Aashirvaad ComplexNo. 105 / 106 Aashirvad Complex, First Floor Near Gurudwara, Paanch Bangla Road, Jamnagar - 361008, Gujarat, IndiaTel: 0288-3201202/03/04Morbi - Vasant PlotNo. 2, First Floor, Kirti Sadan, No. 15 Vasant Plot, Morbi – 363641, Gujarat, IndiaTel: 02822- 226444/22646 (BSNL)Rajkot - Star ChambersNo. 204, Star Chambers, Harihar Chowk, Rajkot-1. Gujarat, IndiaTel: 2813241363/64, 2813295650, 2813297591Surat - Poddar PlazaNo. 202-203, Ground Floor, Poddar Plaza Turning Point, Opp Fire Bridge, Surat – 395007.Tel: 0261-3115298, 0261-3021500/5001/5002/5003/5004DahejAditya Birla Money, Main Entrance, Nr. Punching Gate, Post- Dahej,
District- Bharuch, Gujarat – 392 130Tel: Vivekanand Kudiyal - 8437322223HARAYANA Ambala - Nicolason Road6351/14, 1st Floor, Nicolason Road, Ambala Cantt, Ambala – 133001, Haryana, IndiaTel: 1713200113/114/115, 1713248099
JHARKHAND Jamshedpur - Shatabdhi TowerUnit No. 8, 3rd Floor, Shatabdhi Tower, Sakshi, Jamshedpur – 831001, Jharkhand, India Tel: 6573297146, 6573297764/65/66,6573246359, 6573246360, 6573246362Ranchi - TharpakhnaNo. 20, Jail Road East, Tharpakna, Ranchi – 834001 Tel: 6513209752, 6513209757
KARNATAKA Hubli - Koppikar RoadNo. 3002/5, Aar Kay Corner, Ward No. 46, Near Nehru Stadium, Koppikar Road, Hubli – 580020, Karnataka, IndiaTel: 0836-3051750/51/52/53/54 (Airtel) 0836-4254901,0836-4254801,0836-4254701Mangalore - Inland OrnateNo. 206, II Floor, Inland Ornate, Navbharath Circle, Mangalore-575003, Karnataka, India Tel: 8243208424, 8243215314, 8243258742/745/749, 0824-3006500/501/502/503/504Mysore - N. S. RoadAkshaya Mansions, 212 N. S. Road, Near Shantala Theatre, Mysore - 570024, Karnataka, IndiaTel: 0821-3294500/01/05, 0821-3016540/6541/6542/6543/6544Shimoga - Khasif ComplexGround Floor, Kashif Complex, Gopi Circle, Shimoga - 577201, Karnataka, IndiaTel: 08182-308208/09/10/11/11/12Bangalore - Queen’s RoadNo. 15/15/1, First Floor, Above Nissan Motors, Queens Road, Bangalore – 560052, Karnataka, IndiaTel: 080-30801260/1261/1262 to 1278Bangalore - Crown Point #36, 4th Floor, Crown Point, Lavelle Road, Kasturba Cross Road, Bangalore – 560001Tel: 080-42594259, 41473054, 42106015 (Airtel)
KERALA Cochin - PallimukkuUznaz Tower, Opp Medical Trust Office, Church Landing Road Pallimukku, Cochin – 682016, Kerala, IndiaTel: 0484-3957112/113/114/115/116Cochin - PalarivattomNo. 35/1403 C, MKM Buildings, MKM Nagar, Palarivattom, Cochin – 682025, Kerala, IndiaTel: 4913255532, 0484-3957190 to 94Irinjalakuda - City Tower6/465 I, City Tower, Tana 1st Floor, Irinjalakuda – 680125, Kerala, IndiaTel: 0480-3298415, 0480-3292686, 0480-3042600/01/02/03/04Mattanchery - Palace RoadCC -8/1870, Shenoys Building, Palace Road Mattanchery, Cochin – 682002, Kerala, IndiaTel: 0484-3957132/33/34/35
Palakkad - Fort ArcadeNo. 18/77, (29, 44), 2nd Floor, Fort Arcade, Palakkad – 678013, Kerala, India Tel: 4913257909, 4913-260699/260906Trichur - N. P. TowersNo. 40, 1st Floor N. P. Towers, Keralaverma College Stop Guruvayur Road, Post Poothol West Fort, Trichur - 680004, Kerala, IndiaTel: 4873106443/6445, 4873207326/7327Cochin - M. G. Road 2nd Floor, Thekkekara Mansions, M. G. Road, Opp Kavitha Movie House, Cochin – 682035, Kerala, IndiaTel: 0484-2361077, 0484-2352779 (BSNL), 0484-3957193 (Reliance)
MADHYA PRADESH Bhopal - Maharana Pratap Nagar195-A, Zone - 1, 1st Floor, Maharana Pratap Nagar, Bhopal – 462011, Madhya Pradesh, IndiaTel: 0755-3051720/21/22/23/24Gwalior - M. L. B. Road2nd Floor, Shivaji Tower, No. 26/1010, M. L. B. Road, Near Phoolbagh, Lashker, Gwalior – 474002Tel: 0751-3295573,0751-3298068,0751-3299533 Indore - R. N. T. Marg106, 1st Floor, Silver Centura, R. N. T. Marg, Indore – 452001, Madhya Pradesh, IndiaTel: 7313220134, 7313228718/19, 7313229323, 0731-3053660/661/662/663/664, 0731-3084597/98/99/00/01,0731-3053675/3053676/3053677Rewa - Vidya BhawanVidya Bhawan, Civil Lines Opp P.K. School, Sirmour Choraha, Rewa – 486001, Madhya Pradesh, IndiaTel: 7662320450, 7662320451, 7662320452, 7662324595, 7662324605, 7662324615Indore - M G Road312-A, City Centre, 570 M. G. Road, Indore – 452001, Madhya Pradesh, IndiaTel: 0731-3249726, 0731-3220134
MAHARASHTRA Mumbai - DadarSwapnabhoomi Ground Floor, 649 Sopakar Estates S K Bole Road, Dadar West, Mumbai - 400028, Maharashtra, IndiaTel: 2231920306/07/08, 2231928807, 2231923810, 2231907950, 2231924603, 022-24316731/32/33/34/35 (MTNL)Mumbai - Goregaon EastCello Triumph, Unit No. 501-503, 505 & 401, I. B. Patel Road, Off W. E. Highway,Goregaon (East), Mumbai – 400063.Tel: 61207638, 31924601Mumbai - GhatkoparNo. 102, 1st Floor, RNJ Corporate Situated at Final Plot No.9, Jawahar Road, Ghatkopar (E), Mumbai 400 077Tel: 25018183/84/85/86/87/88/89/90/ 91/92/93/94/95/96/97/98/99, 25018200/201/202/203/204/205/206/207/208/209/210/211/212Akola - Civil Line RoadIIIrd Floor, Harsha Sankul, Opp Rlt College, Civil Line Road, Akola - 444001, Maharashtra, IndiaTel: 0724-3052308/09/10/11/12Amravati - Raka Market1st Floor, Raka Market, Jaistambh Square, Amravati – 444601, Maharashtra, IndiaTel: 7213293082, 7213293089Aurangabad - Jalna RoadEthibiz Towers, CTS No. 12996, Jalna Road, Aurangabad - 431001, Maharashtra, IndiaTel: 0240-3913788/89/90/91/92Jalgaon - Dhake ColonyNo. 18 Dhake Corporate Centre, Hotel Jalmahal Opp To ICICI Bank, Dhake
Colony, Jalgaon - 425001, Maharashtra, IndiaTel: 2573200102, 2573204141, 0257-3061830/31/32/33/ 34 Kolhapur - Station RoadNo. AF-16-E, Prabhakar Plaza, Station Road, Kolhapur – 416001, Maharashtra, IndiaTel: 0231-3203920,0231-3203924Nagpur - CA RoadABML, No. 13, Central Avenue, Dosar Bhavan Square, Nagpur - 440 018Tel: 7123273070, 7123218889, 7123273052, 7123273053/54, 7123273060, 7123273062, 7123272915/16/17/19, 7123273071/72, 7123273056/3057, 7123273069, 8514324432Nasik - Sharangpur RoadSuyojit Trade Centre, Block No. S2/A, 2nd Floor, 3rd Floor, Opp Rajiv Gandhi, Sharangpur Road, Nasik - 422006, Maharashtra, IndiaTel: 0253-3253034, 0253-3253043 Pune - Shivaji NagarNo. 14, Barway Memorial Complex, JM Road, Shivaji Nagar, Pune - 411005, Maharashtra, IndiaTel: 020-30454300/01/02/03/04Mumbai - KalinaShiel Estate, 2nd Floor, 158, C.S.T Road, Dani Corporate Park, Kalina, Santacruz - East, Mumbai – 400 098Tel: 022- 42333497/496/499 (Airtel)Mumbai - BorivaliAbhilasha Bldg No. 2, Ground Floor, Punjabi Lane, Off. L. T. Road, Borivali (W), Mumbai – 400 092.Tel: 022-42441700/01/02/03/04/05/06/07/08/09/10/11/15/16 – (Airtel )Mumbai- Thane Ghantali RoadGround Floor, Konark Tower, Opp. Saibaba Temple, Ghantali Road, Panchpakhadi, Thane (West) – 400 602Tel: 022 67210222/23/67955457/ 66099767 (TATA), 022 31924302/03/05, 31928068/69 (Reliance)Pune - Koregaon ParkF P No. 333, Business Avenue, 3rd Floor, TPS Sangamwadi lane 6, Koregaon Park, Pune-411001Tel: 020-41031710 -(Airtel)
ORISSA Cuttack - Gajanan Complex2nd Floor, Gajanan Complex, DolmundaI, Near Akbari Hotel Cuttack – 753001 Orissa, IndiaTel: 6713200127, 6713200129, 6713206128, 6713267955, 6713267956,Bhubaneshwar - Lewis Road3rd Floor, Gitanjali Complex, Lewis Road, Bhubaneswar – 751002Tel: 6743262411, 6743274936/37/38/40,TATA - 0674-6080930/31/32/33/34/35
PUNJAB Chandigarh - Madhya MargSCO 118-119, 1st Floor, Sector-8C, Madhya Marg, Chandigarh - 160008, Punjab, IndiaTel: 0172-3051400/01/02/03/04/05/06Hoshiarpur - Sutehri Road2nd Floor, Above ICICI Bank, Sutehri Road, Hoshiarpur – 146001, Punjab, IndiaTel: 0188-2320120, 0188-2320121, 0188-2320122Jalandhar - Gurmit ComplexSCO I, Gurmit Complex, Crystal Plaza Market, Choti Baradari, Jalandhar – 144 001Tel: 0181-3190651/52/53/54/55Kapurthala - Simmi PlazaPlot No 51, 1st Floor Simmi Plaza, Opp. Post Office The Mall Road, Kapurthala – 144601, Punjab, IndiaTel: 01822-325355/56/57Khanna - G T Road1st Floor, Sood Brother Complex, Above PNB Bank GT Road,
Khanna – 141401, Punjab, India Tel: 01628-325001/325002, 628322380Ludhiana - Skyland BuildingSCO -14, 2nd Floor, Sky Land Building, Feroze Gandhi Market, Ludhiana – 141001Tel: 0161-4310000-13 (Airtel)Chandigarh - Madhya MargSCO 145-146, Sector 8-C, Madhya Marg, Chandigarh – 160017Tel: 0172- 4311559Chandigarh - Sector 9DSCO 59-60, 2nd Floor, Sector 9D, Chandigarh – 160009.Tel: 0172-2747971/72/4635423
RAJASTHAN Jodhpur - Upper Chopasani RoadNarayanam, 2nd Floor, Upper Chopasani Road, Near Bombay Motor Circle, Jodhpur (Raj) – 342001Tel: 0291-5151001- 16 (MTS)Jaipur - Ashok Marg305, Shyam Anukampa, Near Ahimsa Circle, Ashok Marg, C Scheme, Jaipur – 302015Tel: 0141-5190103-115 (MTS) TAMIL NADU Chennai - AdyarBasement 1, No. 1, Ceebros Arcade 3rd Cross Road, Kasturibai Nagar Adyar, Chennai – 600020, Tamil Nadu, India Tel: 044-32001016/17,044-30138950/51/52/53/54Chennai - AmbatturOld No. 358, New No. 347, MTH Road, Ambattur, Chennai - 600053, Tamil Nadu, IndiaTel: 044-32954874, 044-32954876Chennai - Anna NagarAC-153, 1st Floor, 6th Main Road, Near Anna Nagar Tower, Anna Nagar, Chennai – 600040 Tel: 044-30585811/12/13, 044-30138334 to 41 Chennai - Greams RoadNo. 55, Ali Towers, Greams Road, Chennai – 600006, Tamil Nadu, IndiaTel: 044-39190055 (Board Number)Coimbatore - Avinashi Road1050, Damodar Centre, Avinashi Road, Coimbatore - 641018, Tamilnadu, IndiaTel: 4223221388, 9381083080,0422-3061300/01/02/03/04/05/06/07Madurai - ChokkikulamNo. 11, 1st Floor, Gokale Road, Chinna Chokkikulam, Madurai - 625002, Tamil Nadu, IndiaTel: 4523277665, 4523277685, 4523273153, 0452-3021051/52/53/54/55Madurai - KRV ArcadeKRV Arcade A R Plaza, C-1, 2nd Floor, 16/17 North Veli Street, Madurai – 625001, Tamil Nadu, IndiaTel: 0452-3013000,0452-3021074/75/76/77/78/79/80/81Salem - Divya TowersNo. 47/48, Divya Towers, Fort Main Road, Salem – 636001, Tamil Nadu, IndiaTel: 4273202234, 4273202735, 4273255520, 0427-3018050, 0427-3018051/52/53/54, 0427-3918151/152/153/54/155Tirunelveli - Lion ArcadeNo. 01, 2nd Floor, Lion Arcade (ICICI Bank Upstairs), Sindupoondurai West Street, Madurai Road, Tirunelveli – 627001Tel: 0462-3292349,0462-3291330Tirupur - Benny Main RoadNo. 53, Selvam Towers, 1st Floor, Benny Main Road, Tirupur, Tirupur – 641601, Tamil Nadu, IndiaTel: 4213208672, 0421-3048146 to 49Trichy - Thillai NagarA-10, Lakshmi Arcade, 2nd Floor, 11th Cross Main Road, Thillai Nagar, Trichy - 620018, Tamil Nadu, IndiaTel: 4313200112, 4313200113,
4313200701, 4313295966, 4313253118/20, 313254098Coimbatore - R. S. Puram NO. 551-A, 1st Floor, Logamaniya Street, R.S.Puram - West,Coimbatore – 641002Tel: 0422-3061350/51/53/54 (Tel Lines Shifted from Oppanakara Branch)Chennai- Egmore 42, Kuber Towers, Pantheon Road, Egmore, Chennai – 600008Tel: 44-42145711/46467, (Airtel)/044-30138925/26/27/28/29
UTTAR PRADESH Ghaziabad – VaishaliPlot No. 8, 1st Floor, Atlantic Plaza, Sec – 4, Vaishali, Ghaziabad – 201010Tel: 120-3142501/2502/2503Allahabad - S P MargNo. 2, S. P. Marg LDA, Centre, Nawab Yusuf Road, Civil Lines, Allahabad – 211001Tel: 5323292411, 5323292412, 5323292413, 5323295762Kanpur - Krishna TowersNo. 219, Krishna Towers, Civil Lines, Kanpur – 208001, Uttar Pradesh, IndiaTel: 0512-3938100/01/02/03/04Varanasi - Gandhi NagarD - 58 / 12, A - 2 Gandhi Nagar, Sigra, Varanasi – 221010, Uttar Pradesh, IndiaTel: 0542-3255308/309/310Agra - Church Road2nd Floor, Unit No. 9 & 8, C. R. Mall, Church Road Agra (U.P.) – 282002Tel: 0562-3248136/137/138Lucknow - Saran Chamber13 & 14, Ground Floor, Saran Chamber II, Opposite Civil Hospital, Park Road, Lucknow – 226001.Tel: 0522-4154900-914
WEST BENGAL Kolkata - Bidhan NagarP 193/1, Ultadanga Main Road, 3rd Floor CIT Scheme, No VII M Bidhannagar, Kolkata - 700067, West Bengal, IndiaTel: 3332606061, 3332607631, 3332609653, 3332412057Durgapur - City CentreP – 10 Recol Park Ground Floor, Shahid Khudiram Sarani, City Centre, Durgapur – 713216, West Bengal, IndiaTel: 0343-3296400,0343-3298007/08Kolkatta - HazraDevi Darshan No. 83, Shyama Prasad Mukherjee, 3rd Floor, Kolkata – 700026, West Bengal, India Tel: 033-32520287/88, 033-30085755, 033-30085756/57/58/ 59Kolkatta - Commerce HouseRoom 10 & 11, 4th Floor, Commerce House, 2A Ganesh Chandra Avenue, Kolkata – 700013, West Bengal, IndiaTel: 3332622382, 3332622384, 3332627076,3332627078, 3332412058Kolkata - SaltlakeBD - 9, Salt Lake, Sector -1, Kolkata – 700064, West Bengal, IndiaTel:3332590080, 3332597936, 3332597951,3332597952, 3332598165, 3332598167, 3332598184, 3332621666, 3332627607, 3332920896, 3332509705/706/708/709Siliguri - Sevok RoadNanak Complex, Sevok Road, Church Road Junction, Siliguri – 734401, West Bengal, India Tel: 3533290275, 3533290277, 3533290655Kolkata - CICCIC Society, 33-A, Jawaharlal Nehru Road, Kolkata – 700 071, West Bengal, IndiaTel: 3332622270 to 72, 3332625373 to 75,033-30085809/810/811/812/813Kolkata - AJC Bose Road234/3, FMC Fortuna Building, AJC Bose Road, Kolkata – 700 020, West Bengal, IndiaTel: 033-44040301-333-(Airtel)
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India has a great cultural tradition which has had a deep impact on the daily lives of people over the
years. These traditions, in many ways, have an in-depth relation to yogic science. In Kerala, the famous dance format Kathakali is one such art form which has seen many evolutions over the years. Katha means story and kali means play. It’s a dance drama which has been more than mere entertainment to people. The art form has always been the mainstay of temple festivals, and has played an effective role in imparting cultural values through various mythological stories.
I had the good fortune to learn this art form at the International Centre for Kathakali in New Delhi, and much later in Kerala. Being city bred, this art form helped me establish a link with
By G. Vijayakrishnan
KATHAKALI Katha in Dance Form
the traditions and values of cultural India. Over a decade, I realised with experience, that this art form was not just mere dance but has a deep connection with the spiritual self as well. Unlike what the young minds today understand and identify dance as — fun, keeping fit, or Bollywood; traditional dances go much deeper. There is a tremendous amount of training which one has to undergo in order to be considered fit to perform on stage. The training is rigorous — it includes stamina building exercises, endurance exercises, but most importantly, training the mind. The science of it is even more fascinating. The Mudras and the postures are all attuned to the energy circuits which yogic science has prescribed. Breath control is an integral part of any dance form. The control of breath opens up many gateways in channelising one’s energy and perfecting one’s own personality.
The training base for Kathakali and Kalaripayitu (traditional martial art) are the same. It helps each dancer reach remarkable levels of fitness. I had the opportunity to undergo the famous leg massage, which is imparted to select dancers after 3-4 hours of rigorous exercises at 3 a.m., for around 10 days in a year. Those 10 days can be transformational in more ways than one. Flexibility and immunity levels increase, and more or less leaves a permanent imprint on the health front.
In Kathakali, the dance begins with seeking blessings not just from the Almighty but from everything related to the dance i.e.; thirasheela (curtain raiser), people who hold the thirasheela, musical instruments, musicians etc. The dance happens in front of a lighted lamp. It helps the
ego of the dancers remain grounded. Even while wearing the head rest or Kireedom, we seek its blessings. The dancer has to remain focused while on stage as he/she has not only to listen to the music being sung backstage, but also have to match their steps with the raag and taal of the percussion. Let’s not forget the co-ordination with the other players on stage. Complete focus allows the dancer’s mind to transcend to the ‘Zone stage’. By zone stage I mean, a state of mind that allows the dancer complete focus and control of the character he/she is portraying that the dancer becomes that character in every sense. It is indeed a wonderful experience for a dancer and a completely mesmerising experience for the audience. I had one such experience while I enacted the role of the angry Bheema. In that state, one doesn’t have to think of music and dance steps, everything seems to be in perfect co-ordination. I was experiencing the agony of the angry Bheema who was troubled by the Kauravas. My dance steps, expressions, and body movements were in perfect sync. The audience did get the feel that the real Bheema is on stage. For a dancer, it’s a true blessing.
Years on, I have realised that most of the traditional dance forms not only help the dancers remain agile and fit, but also allows them to achieve the right body postures, for life. A deeper training can help a dancer transcend into yogic experiences, which strums a spiritual cord in oneself.
May young India realise the value of these traditional art forms, and accept them into their lives.
(The author was a member of the INVESTIME Editorial Team.)
Vijayakrishnan portrying an angry Bheema from the Mahabharata.
46 Investime JULY 2013