Sundaram Mutual: Sundaram Mutual announced the launch of its new open-ended equity scheme, Sundaram Bluechip Fund, primarily for investing in large-cap blue-chip stocks on September 16.
“This new fund offer (NFO) is an open-ended equity scheme. The scheme will be investing in a diversified large-cap portfolio of 45-50 growth and value stocks without any sector bias. Stock selection will be based on a three-pronged framework of quality of management, of the business model and of financials,” Sundaram Mutual said in a media release.
The NFO will open for subscription on September 17, 2020, and close on September 30, 2020. It will reopen for ongoing subscription and redemption from October 14, 2020.
Portfolio construction will be a blend of bottom-up stock-picking with top-down selection based on sectoral and macro trends. The fund can invest up to 20 percent of assets in mid-caps, the press release said.
RBI Governor Shaktikanta Das: RBI Governor Shaktikanta Das said high-frequency indicators point to a trough in economic indicators. He added that the RBI stands battle-ready and whatever measures are required will be taken up.
“Recovery is not yet fully entrenched. Uptick notices in June and July seem to have levelled off now for some sectors,” CNBC-TV18 quoted Das saying so.
Das said despite a substantial increase in the government borrowing programme, surplus liquidity conditions have facilitated the non-disruptive mobilisation of resources.
Das said the monetary policy’s COVID response has been to prioritise economic recovery. He said the central bank is outlining five new areas to focus including human capital, food processing and associated industry.
Motilal Oswal on Indraprastha Gas: Motilal Oswal has a neutral call on the stock with a target price of Rs 470, a 12 percent upside from the stock’s closing of September 15 on BSE. As per the research firm, IGL has about 75 percent of its volumes coming from CNG. This segment led growth for the last couple of years, led by the proliferation of CNG stations and higher conversions.
“However, opening up of schools and normalisation of public transportation (for CNG) and commercial space like malls and restaurants (for PNG) may take more time,” the brokerage firm added.
Buzzing Stock: Lakshmi Vilas Bank share price jumped 10 percent after the bank said the mutual due diligence process for merger with Clix Group is substantially complete and both parties are in discussions on the next steps. Under the non-binding LOI, the proposed amalgamation is subject to completion of mutual due-diligence, regulatory and other customary approvals. As per the mutual understanding between parties, the exclusivity period was extended till September 15 due to the prevailing pandemic situation.
Buzzing Stock: Share price of Vedanta gained 2 percent after The Supreme Court has rejected government’s plea challenging USD 499 million arbitral award for Ravva Oil Fields in company’s favour. The Court has uphold Delhi High Court Order which refused to interfere with arbitral award.
Aviation Min tells Rajya Sabha, relief has been sought by airline operators. Excise duty on ATF to be reduced from 11% to 0% pic.twitter.com/CYI23idRZE— CNBC-TV18 (@CNBCTV18Live) September 16, 2020
Japan exports fall 15% in August as pandemic pummels trade: Japan’s trade surplus widened in August as the pandemic pummeled a wide array of industries and sapped consumer demand. The 15 percent drop in exports from a year earlier was outpaced by a more than 20% decline in imports, according to preliminary data from the Finance Ministry released Wednesday. The 15 percent drop in exports from a year earlier was outpaced by a more than 20% decline in imports, according to preliminary data from the Finance Ministry released Wednesday. Read More
Yoshihide Suga elected as Japan’s new Prime Minister: Yoshihide Suga has been elected as Japan’s new Prime Minister, after Shinzo Abe’s resignation, Reuters reported. Suga will become the country’s first new leader in eight years.
Hareesh V, Head of Commodity research, Geojit Research:: Optimism of economic recovery continues to hit the safe haven demand and thus the price of gold. Meanwhile, hopes of fiscal stimulus measures and a weak dollar will continue to offer lower level support to the metal. However, investors may take cautious bets today ahead of the US Fed policy decision and the news conference from Chairman Jerome Powell later in the day.
A range bound trading inside USD 1,880-1,975 an ounce is expected initially and breaking any of the sides would suggest a fresh direction to the commodity.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments: We have moved a wee bit closer to the 11,550 level this morning, We need to get past this for an impulsive rally to commence. Until then we will be stuck within a low volume range of 11,400 – 11,550. Once we cross the levels of 11,550-11,575, we can look forward to 11,800 and then 12,000.