Mutual fund accounts drop by over 29 lakh in April-January
New Delhi: Mutual fund industry has lost an estimated over 29 lakh investors, measured in terms of individual accounts or folios, in the first 10 months of the current fiscal, mainly due to profit-booking and various merger schemes. Of more than 29 lakh investors lost during April 2013 to January 2014, most of the folio closures were seen in the equity portfolio despite the efforts of the mutual fund industry to educate investors about staying invested for the long-term. According to Sebi data on total investor accounts with 45 fund houses, the number of folios fell to around 3.99 crore at the end of January 2014 from 4.28 crore in the last fiscal, indicating a decline of 29.41 lakh. Folios are numbers designated to individual investor accounts, although one investor can have multiple folios. Market participants attributed the sharp fall in the number of folios to profit-booking and various merger schemes in the mutual fund industry, among other reasons. They further said that the trend of folio closures is expected to decline in the coming months as investors are getting confident about the economy and the market in general. During April-January, the number of investor folios in equity schemes fell by over 35 lakh. The total number of folios were 2.96 crore at the end of January 2014 against 3.32 crore at March 2013. The mutual fund industry has been facing consistent equity folio closures for the past few months.
FIIs withdraw Rs 2,000 crore from Indian equities in a fortnight
New Delhi: Overseas investors pulled out more than Rs 2,000 crore from Indian equities in a fortnight following a further reduction in the bond buying programme by the US Federal Reserve. Thus, Foreign Institutional Investors (FIIs) also turned net sellers of equities this year. After buying $20 billion (over Rs 1.23 lakh crore) worth of stocks in 2013, they have sold equities totalling Rs 1,298 crore since January. FIIs were gross buyers of equities worth Rs 25,573 crore and sellers of stocks to the tune of Rs 27,586 crore till February 14, resulting in net outflow of Rs 2,012 crore ($322 million), according to the data of market regulator Sebi. Market experts attributed the sell-off by FIIs to global events like further scaling down of the economic stimulus programme for the American economy by the US Federal Reserve.
Seven blue-chips add Rs 25,098 cr in M-cap
Mumbai: The combined market valuation of seven blue-chip Sensex companies surged Rs 25,098 crore last week with Tata Motors, the new entrant in the top-10 list, emerging as the biggest gainer. Barring Coal India, ITC and HDFC Bank, rest of the seven firms including TCS, RIL, ONGC and Infosys saw addition in their market-capitalisation (m-cap) for the week ended February 14. Tata Motors’ m-cap climbed Rs 5,814 crore, to Rs 1,04,571 crore. ONGC’s market value soared Rs 5,604 crore to reach Rs 2,35,960 crore, while the m-cap of Infosys surged Rs 4,531 crore at Rs 2,09,343 crore and TCS added Rs 4,486 crore to touch Rs 4,24,309 crore. The value of RIL rose by Rs 2,327 crore, to Rs 2,65,481 crore, while Sun Pharmaceutical Industries’ m-cap shot-up by Rs 1,580 crore to touch Rs 1,26,119 crore. Similarly, the market-cap of Wipro went up by Rs 756 crore and stood at Rs 1,39,067 crore. However, CIL’s value plunged Rs 5,622 crore, to Rs 1,64,572 crore; ITC lost Rs 2,858 crore at Rs 2,53,927 crore and that of HDFC Bank fell by Rs 1,474 crore to Rs 1,53,783 crore. In the ranking of top-10 firms, TCS was at the numero-uno position, followed by RIL, ITC, ONGC, Infosys, CIL, HDFC Bank, Wipro, Sun Pharma and Tata Motors. Over the last week, the Sensex lost 9.74 points — the third straight weekly drop.