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<ul><li><keyword id="19914160" type="General" weightage="20" keywordseo="Groww" source="keywords" meta.keywordsubtype="org" meta.entityname="Groww" meta.hostid="261" meta.entityid="Groww">Groww</keyword> has received SEBI approval to launch the <keyword id="21425700" type="General" weightage="20" keywordseo="Nifty-Non-Cyclical-Consumer-Index-Fund" source="keywords">Nifty Non-Cyclical Consumer Index Fund</keyword>.</li><li>The Nifty Non-Cyclical Consumer <keyword id="21293774" type="General" weightage="20" keywordseo="index-fund" source="keywords">Index Fund</keyword> will be launched through an <keyword id="20498936" type="General" weightage="20" keywordseo="NFO" source="keywords">NFO</keyword>.</li><li>The Nifty Non-Cyclical Consumer Index Fund is expected to be launched in the first week of May.</li></ul>Financial services company Groww has received approval from the <keyword id="19970553" type="General" weightage="20" keywordseo="Securities-Exchange-Board-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Securities Exchange Board of India" meta.hostid="261" meta.entityid="Securities Exchange Board of India">Securities Exchange Board of India</keyword> (SEBI), the country’s securities market regulator to launch the Nifty Non-Cyclical Consumer Index Fund through a new fund offering (NFO). This will be the country’s first non-cyclical index fund and is expected to go live in the first week of May. The minimum investment amount for the NFO will be ₹500 and in multiples of ₹1 for purchases and ₹0.1 for switching. The redemption amount has been set at a minimum of ₹500 and in multiples of ₹1 thereafter. “The investment goal of the Nifty Non-Cyclical Consumer Index Fund is to generate long-term capital growth by investing in securities of the Nifty Non-Cyclical Consumer Index (TRI) in the same proportion/weightage to offer returns before expenses that track the total return of the Nifty Non-Cyclical Consumer Index, subject to tracking errors,” Groww said in a statement. Groww acquired the mutual fund business of Indiabulls Housing Finance last year for ₹175.6 crore. <cmsannotation type="cmsannotation" annotationid="What is a non-cyclical consumer index fund?" comment="subhead" text="What is a non-cyclical consumer index fund?">What is a non-cyclical consumer index fund?</cmsannotation> A non-cyclical consumer index fund focuses on companies that provide essential goods and services which tend to remain stable in demand regardless of the economic cycle. This type of fund is designed to protect against market volatility by investing in stocks from industries such as utilities, healthcare, consumer staples, and sometimes financials. In this instance, the fund is benchmarked against the Nifty Non-Cyclical Consumer Index (Total Return Index). This tracks the performance of the top 30 stocks under sectors such as consumer goods and services, telecom and more. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/jiocinema-introduces-new-ad-free-premium-plans-starting-at-29/articleshow/109581033.cms">An Ambani disruption in OTT: At just ₹1 per day, you can now enjoy ad-free content on JioCinema</a> <a href="https://www.businessinsider.in/tech/news/gigabyte-aorus-co49dq-49-inch-qd-oled-144hz-curved-gaming-monitor-launched-in-india/articleshow/109563798.cms">GIGABYTE AORUS CO49DQ 49-inch QD-OLED 144Hz curved gaming monitor launched in India</a> <a href="https://www.businessinsider.in/tech/news/apple-let-loose-event-scheduled-for-may-7-ipads-expected-to-be-launched/articleshow/109553148.cms">Apple Let Loose event scheduled for May 7 – New iPad models expected to be launched</a>

Groww receives SEBI approval to launch Nifty non-cyclical consumer index fund

<ul><li>The core of the fund’s portfolio, (at least 80%), will be allocated to stocks that fall under the non-cyclical consumer theme within the basic industries. </li><li>The fund will track the Nifty India Consumption Index (TRI). </li><li>Thematic funds are considered risky due to their concentrated focus which limits diversification. </li></ul><keyword id="6431261" type="General" weightage="20" keywordseo="hdfc-mutual-fund" source="Orion">HDFC Mutual Fund</keyword> has launched the HDFC Non-Cyclical Consumer Fund, an open ended equity scheme. The new fund offer for the scheme will open for subscription on June 23, 2023, and close on July 7, 2023. The investment objective of the fund is to generate long-term capital appreciation by investing predominantly in equity, and equity related securities of companies with a focus on a non-cyclical consumer theme. The fund will track the Nifty India Consumption Index (TRI). It is a benchmark index that measures the performance of the Indian consumption sector, including companies engaged in consumer goods, consumer services, and related industries, providing a comprehensive view of the overall performance of the consumption theme in the Indian stock market. The core of the portfolio, (at least 80%), will be allocated to stocks that fall under the non-cyclical consumer theme within the basic industries. These industries include consumer goods, consumer services, telecom, healthcare, media, entertainment, and publication. The scheme would invest across segments, and market capitalisation. HDFC MF says that the investment strategy involves targeting companies that are either market leaders, or experiencing growth in market share due to factors such as superior execution, scalability, and effective adoption of technology. The fund will be equally focussed on companies that are likely to witness steady and secular growth, and also companies that have a possibility of a turnaround. The companies the fund will invest in will be from the consumer discretionary, fast moving consumer goods (FMCG), telecom, and healthcare industries. <cmsannotation type="cmsannotation" annotationid="subhead" text="What is the purpose of such a fund?">What is the purpose of such a fund?</cmsannotation> Thematic mutual funds focus on a particular investment theme, such as technology, healthcare, renewable energy, or any other sector or trend that is expected to experience significant growth, or market potential. These funds aim to capitalize on the potential growth opportunities within the chosen theme by investing in companies that are directly related to or benefit from that theme. Says Direndra Kumar, CEO, ValueResearch, “All mutual fund companies keep launching funds and keep doing activity. There is nothing in this fund which cannot be done in another fund. The agents get a new excuse to talk to the investors, and also when it is a new fund, they do not need to justify why they have not performed well. Mutual funds are a consumer product and a new fund gives you an opportunity to tell a new story.” There are already about seven funds in this space which are over 10 years old. However, this is the first such fund from HDFC Mutual Fund. <cmsannotation type="cmsannotation" annotationid="subhead" text="Historical performance of thematic consumption funds">Historical performance of thematic consumption funds</cmsannotation> <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Funds </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3 year return (%) </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5 year return (%) </td></tr><tr><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Aditya Birla Sun Life India GenNext Fund - Direct Plan </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">27.33 </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15.34 </td></tr><tr><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Canara Robeco Consumer Trends Fund - Direct Plan </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">29.26 </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">16.71 </td></tr><tr><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mirae Asset Great Consumer Fund - Direct Plan </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30.52 </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">16.24 </td></tr><tr><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nippon India Consumption Fund - Direct Plan </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">31.28 </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">18.01 </td></tr><tr><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nippon India ETF Nifty India Consumption </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">22.06 </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.97 </td></tr><tr><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">SBI Consumption Opportunities Fund - Direct Plan </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">36.25 </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15.08 </td></tr><tr><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sundaram Consumption Fund - Direct Plan </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">23.79 </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.34 </td></tr><tr><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tata India Consumer Fund - Direct Plan </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">26.36 </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">12.54 </td></tr><tr><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">UTI India Consumer Fund - Direct Plan </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">20.76 </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.07 </td></tr></tbody></table> Source: Value Research <cmsannotation type="cmsannotation" annotationid="subhead" text="Should you invest?">Should you invest?</cmsannotation> Thematic funds are considered to be among the riskier categories of mutual funds. This is primarily because these funds construct portfolios based on specific themes, which can limit the range of investment opportunities available. Thematic funds typically focus on investing in stocks that are directly related to the chosen theme, which may result in a semi-diversified portfolio. “My advice to any investor is to never invest in a new fund. When it comes to mutual funds, all you have is some track record - where it has invested, how it has performed. Here I do not know anything. My other advice is that never invest in a sectoral, or a thematic fund. My primary goal of investing in a mutual fund is that I should diversify. The very basic thing is not being achieved in case of a thematic fund,” says Kumar. In other words, in the case of thematic funds, because the concentration is on a specific theme or a sector, the fund's performance is more susceptible to the fluctuations. Therefore, investors should be aware of the potential risks and carefully consider their investment objectives and risk tolerance before investing.

HDFC Mutual Fund launches its first non-cyclical consumer fund – Should you invest?

<ul><li>The latest hurdle that shook the mutual fund companies was an amendment in the <keyword id="123776" type="General" weightage="20" keywordseo="finance-bill" source="Orion">Finance Bill</keyword> that proposed to do away with <a href="https://www.businessinsider.in/business/news/debt-schemes-of-mfs-lose-edge-over-bank-deposits-as-budget-proposes-to-scrap-ltcg-indexation-benefits/articleshow/98965932.cms">long-term capital gains tax benefits on debt investments</a>.</li><li>Along with this, tightening SEBI norms and heightened competition in the 42-player industry has also been impacting the growth of asset management companies.</li><li>Stocks of four listed AMCs have been deeply battered in 2023, especially after the government proposed FY24 Budget amendments on March 24. </li></ul>Shares of asset management companies have been sliding this year as regulatory changes and a challenging market environment weigh on their smooth growth. The latest hurdle that shook the mutual fund companies was an amendment in the Finance Bill that proposed to do away with <a href="https://www.businessinsider.in/business/news/debt-schemes-of-mfs-lose-edge-over-bank-deposits-as-budget-proposes-to-scrap-ltcg-indexation-benefits/articleshow/98965932.cms">long-term capital gains tax benefits on debt investments</a>. As per the proposed changes in the Finance Bill, investors in debt funds will have to pay tax according to their income slabs. Investors have so far benefited from indexation while calculating long-term capital gains from debt funds but this will now longer be available from 1 April, 2023. Along with this, tightening norms by Securities and Exchange Board of India (SEBI) and heightened competition in the 42-player industry has also been impacting the growth of asset management companies (AMCs). Stocks of four listed AMCs have been deeply battered in 2023, especially after the government proposed FY24 Budget amendments on March 24. “AMC stocks are under pressure mainly because of heightened competition, SEBI restrictions on expense ratios, slow growth in asset under management (AUM) and now the budget provisions on debt schemes is an additional factor stressing them. Adding to the pressure, most equity schemes by asset management companies have underperformed benchmark indices recently,” said Deepak Jasani, head of retail research at HDFC Securities. The benchmark Nifty50 index is down 6.7% so far this year. The removal of taxation benefits on debt funds have been seen as a negative for mutual companies – analysts believe debt funds will no longer be attractive for the long term as fixed deposits or FDs will replace them. “After the change in Finance Bill, most debt funds will be used for short-term investment while FDs for the long term,” added Jasani. While analysts believe change in debt fund taxation is negative for mutual funds, according to CLSA, the measure would have a moderate to low impact on profitability as bulk of the revenue/profitability for AMCs accrues from equity assets and non-liquid debt AUMs are neither higher growth nor higher profitability segment. For AMCs under our coverage, revenue contribution from non-liquid debt products is 11-14%. We believe this is moderate to low impact as bulk of the revenue/profitability for AMCs accrues from equity AUMs and non-liquid debt AUMs are neither higher growth nor higher profitability segments. Apart from these expected downturns for the industry, the prevailing market volatility has also impacted the share prices of these companies. <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Asset management companies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Last 5 days </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">YTD </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Aditya Birla Sun Life AMC </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-14% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-32% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">UTI AMC </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-7% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-26% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nippon Life India AMC </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-6% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-20% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HDFC AMC </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-4% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-23% </td></tr></tbody><tbody></tbody></table>Source: NSE "In debt mutual funds, indexation was the most important narrative for the industry’s efforts to retailise debt. With the proposed amendments, surely the overall ecosystem will get impacted, especially the NBFC space,” said DP Singh, deputy managing director and chief business officer at SBI MF. Besides, as per reports, the Securities and Exchange Board of India (SEBI) is considering taking action against big fund houses that charge very high expense ratios from their customers. Currently as per SEBI’s rules, mutual funds can charge a total expense ratio (TER) of up to 2.25%, if the AUM reaches ₹500 crore. However, the regulator might now reduce this expense amount to benefit investors. Also, since distributors earn more commission by selling new funds, there are cases of mis-selling. Hence to protect investor interest, the regulator is looking to <a href="https://economictimes.indiatimes.com/opinion/et-editorial/make-mf-schemes-more-affordable/articleshow/98485116.cms?from=mdr">bring a uniform expense ratio </a>for mutual fund schemes. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/lic-to-wipro-and-vodafone-idea-stocks-which-hit-a-new-52-week-low-today/slidelist/99065647.cms">LIC to Wipro and Vodafone Idea: Stocks which hit a new 52-week low today</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/telecom/news/increased-competition-delayed-tariff-hikes-could-effectively-lead-to-a-jio-airtel-duopoly/articleshow/99065537.cms">Increased competition, delayed tariff hikes could effectively lead to a Jio-Airtel duopoly</a>

Tax hit on debt funds is just the latest punch to reeling mutual fund companies

<ul><li>Seven financial stocks were amongst the top ten losers on the Nifty50 index, while the overall sentiment was negative with 35 out of 50 stocks in the index ending in red.</li><li>All sectoral indices were in the red except FMCG – PSU Banks, financial service and realty were among top losers. </li><li>Adani Enterprises continued to fall after <keyword id="6431877" type="General" weightage="80" keywordseo="care-ratings" source="Orion">CARE Ratings</keyword> on Thursday downgraded the outlook on the company to negative from stable amid the ongoing regulatory and legal scrutiny.</li></ul>India’s benchmark indices <keyword id="6484188" type="General" weightage="100" keywordseo="sensex" source="Orion">Sensex</keyword> and Nifty50 slumped lower for second consecutive session with 1% each on Friday led by a heavy sell-off in banking, financial services and realty stocks. The <keyword id="45123" type="General" weightage="80" keywordseo="hdfc" source="Orion">HDFC</keyword> twins were amongst the top five losers. The fall in the Indian indices comes ahead of crucial US jobs data set to be released later today. Investor worries have risen following hawkish comments by the US Federal Reserve chairman <keyword id="1727754" type="General" weightage="80" keywordseo="jerome-powell" source="Orion">Jerome Powell</keyword> this week. The jobs data will be one of the key deciding factors for future rate hikes. All sectoral indices were in the red in the Indian markets except FMCG – PSU Banks, financial service and realty were among top losers. The 30-stock Sensex closed 1.12% or 671 points lower at 59,135, while the 50-stock Nifty50 ended 1% or 177 points lower at 17,413. On Thursday, the Sensex and the Nifty50 had closed 0.9% lower. “The global market's cautious attitude towards the probability of a sharper rate hike was exacerbated by further negative signs from the US market. Selling intensified as the market awaited the release of US unemployment and non-farm payroll data, which will have a significant impact on the upcoming Fed meeting,” said <keyword id="224336" type="General" weightage="80" keywordseo="vinod-nair" source="Orion">Vinod Nair</keyword>, head of research at Geojit Financial Services. Adani Enterprises continued with its losses after CARE Ratings on Thursday downgraded the outlook on the company to negative from stable amid the ongoing regulatory and legal scrutiny. The stock was the top loser on the 50-stock index with a 3% fall. Seven financial stocks were amongst the top ten losers on the Nifty50 index, while the overall sentiment was negative with 35 out of 50 stocks in the index ending in the red. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Top 10 losers on Nifty50 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% change </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Adani Enterprises </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-3.02% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HDFC Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-2.61% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Apollo Hospitals </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-2.33% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HDFC </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-2.07% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IndusInd Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-2.03% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">SBI </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-2.01% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Axis Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.94% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bajaj Finserv </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.71% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">M&amp;M </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.64% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ICICI Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.61% </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> Source: NSE, March 10, 2023 Crude oil prices fell for the fourth consecutive session on worries over potential interest rate hike in the US hitting fuel demand. Brent crude oil price fell 0.63% to $81.11 per barrel. Foreign institutional investors sold Indian equities worth ₹2,061 crore on Friday while domestic institutional investors bought equities worth ₹1,350 crore. “While markets are down sharply today, one should not be surprised since the current markets are grappling with questions around various aspects including interest rates and expected economic slowdown, to which there are no clear answers. In such a scenario there will be events that have the potential to cause spiralling damage. These need to be watched for stabilisation. Some panic is therefore understood, adding to a sell-off, which happened today,” said <keyword id="282224" type="General" weightage="80" keywordseo="nitin-rao" source="Orion">Nitin Rao</keyword>, CEO at InCred Wealth. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Indian sectoral indices </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% change </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty PSU Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-2.19% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.87% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty Pvt Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.84% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty Fin Service </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.80% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty Realty </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.03% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty Media </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.01% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty Metal </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-0.83% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty IT </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-0.66% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty Auto </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-0.31% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty Pharma </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-0.14% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty FMCG </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.16% </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> All the markets in Asia were in the red too on Friday on rate hike worries. The Hang Seng fell the most at 3.04%. The Nikkei 225 was down 1.67%, Taiwan Weighted closed down 1.55%, the Shanghai Composite was down 1.40% and KOSPI down 1.01%. <cmsannotation type="cmsannotation" annotationid="US’ Silicon Valley Bank’s plunge to have limited impact on Indian banking stocks" comment="subhead" text="US’ Silicon Valley Bank’s plunge to have limited impact on Indian banking stocks">US’ Silicon Valley Bank’s plunge to have limited impact on Indian banking stocks</cmsannotation> Meanwhile in the US, shares of Silicon Valley Bank, a prominent US bank that caters to nearly half of the venture capital-funded startups in the US, plummeted on Thursday amid mounting concerns about the bank’s health. Its stock sank over 60% on Thursday, and over the last one year, it is down over 80%. This has spooked investors as there are worries of a ripple effect. The Dow Jones Industrial Average fell 1.66% while the S&amp;P 500 was down 1.85%. The tech-heavy Nasdaq was down 2.05%. However, this is likely to have limited impact on Indian banking stocks, say analysts. “This is a US-specific issue and will not have an impact on Indian banking stocks. But the sentiment impact can be negative,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services. The origins of Silicon Valley Bank’s crises trace back to 2021, when flush with deposits worth $189 billion at the end of 2021, the bank invested over $80 billion in mortgage backed securities (MBS). Most of these instruments have a 10-year maturity and a yield of 1.56% – much higher than the 0.25% yield on treasury bills. By mid-2022, the US Fed embarked on an aggressive rate hike path to tame inflation. Fast-forward to 2023, the bank is now in a crisis with venture capitalists like <keyword id="380555" type="General" weightage="80" keywordseo="peter-thiel" source="Orion">Peter Thiel</keyword> asking startups to withdraw their money from the bank. “Overnight developments in US banking: markets, analysts, investors underestimate the importance of financial stability for the balance sheet of a bank. When interest rates move up 500 bps from zero in a year, an accident was waiting to happen somewhere,” <a href="https://twitter.com/udaykotak/status/1634035500096040960">said</a> <keyword id="45051" type="General" weightage="80" keywordseo="uday-kotak" source="Orion">Uday Kotak</keyword>, CEO, Kotak Mahindra Bank. <div type="javascript" title="Custom" contenttype="Text"><cdata><![CDATA[]]></cdata></div> SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/tata-technologies-files-drhp-with-sebi-all-you-need-to-know-about-this-tata-motors-subsidiary/articleshow/98539244.cms">Tata Technologies files DRHP with SEBI: All you need to know about this Tata Motors subsidiary</a> <a href="https://www.businessinsider.in/entertainment/news/without-hbo-and-ipl-15-million-subscribers-could-flee-disney-hotstar-in-2023/articleshow/98517377.cms">Without HBO and IPL, 15 million subscribers could flee Disney+ Hotstar in 2023</a> <a href="https://www.businessinsider.in/stock-market/news/mutual-funds-raise-bets-on-mid-small-cap-stocks-amid-volatile-markets/articleshow/98516460.cms">Mutual funds raise bets on mid &amp; small-cap stocks amid volatile markets</a>

Sensex, Nifty50 drop 1% dragged down by banking, financial services and realty stocks

<ul><li>HDFC is looking to bring in more capital in the wake of the coronavirus pandemic to the tune of ₹14,000 crore. </li><li>India’s biggest mortgage lender plans to raise ₹10,000 through qualified institutional placement (QIP) and ₹4,000 in warrants. </li><li>Another ₹9,000 will be issued as secured redeemable non-convertible debentures.</li><li>Check out the latest news and updates on <a href="https://www.businessinsider.in/">Business Insider. </a></li></ul>India’s biggest mortgage lender Housing Development Finance Corporation (HDFC) is on the hunt for capital and that's boosting its share price. HDFC’s stock value jumped by 1.5% in early morning trade after the company announced that it has plans to raise ₹14,000 crore through its new equity fundraising program. Around ₹10,000 crore will come from qualified institutional placement (QIP) and ₹4,000 crore in warrants. <div type="image" title="HDFC BANK stock price (1)" msid="77385963" hostid="261" caption="&amp;lt;p&amp;gt;HDFC share price jumps 1.5% as markets open today morning&amp;lt;/p&amp;gt;"></div> The floor price for the equity shares has been set to ₹1,838.94 and the board of directors will meet again on August 10 to determine the issue price. In addition to the ₹14,000 crore, HDFC will also be issuing secured redeemable non-convertible debentures worth ₹9,000 crore. This is the third time in the last 12 years that HDFC is raising capital through such an offering. It did so once in 2009 and then again in 2015. HDFC's first full quarter in the face of the coronavirus pandemic saw a loss of 4.7% at the end of June. Its gross non-performing loans stood at ₹8,631 crore accounting for 1.87% of HDFC’s loan portfolio. The company already has ₹12,285 in the bank as provisions to serve as a cushion once the Reserve Bank of India’s (RBI) moratorium ends on August 31. It even added another ₹1,199 this quarter specifically for COVID related accounts. Despite having safeguards in place, many companies are going down the QIP route to shore up capital against the uncertainty of the coronavirus pandemic. This includes Kotak Mahindra Bank, Info Edge and — most recently to lay down its offering — <a href="https://www.businessinsider.in/finance/banks/news/axis-bank-finalises-10000-crore-share-sale-to-raise-funds-at-a-floor-price-of-442-19/articleshow/77354177.cms">Axis Bank for a whopping ₹ 10,000 crore</a>. Others either have approved fundraising plans on stand by or are in the process of putting out their own QIP. SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/airtel-amazon-team-up-to-take-on-jio-microsoft-in-the-battle-for-indias-cloud-market/articleshow/77371744.cms">Airtel-Amazon team up to take on Jio-Microsoft in the battle for India’s cloud market</a> <a href="https://www.businessinsider.in/business/corporates/news/tech-mahindra-wants-25-30-of-its-employees-working-from-home-permanently-by-june-2021/articleshow/77346959.cms">INTERVIEW: Tech Mahindra wants 25-30% of its employees working from home permanently by June 2021 — CFO explains how they got to that number</a>

HDFC’s share price opened 1.5% higher after announcing ₹14,000 crore fundraising

<ul><li>The public issue of circuit board maker Cyient DLM was subscribed 2.65 times on day 1. </li><li>The retail portion of the issue was subscribed nine times over, its <keyword id="123344" type="General" weightage="50" keywordseo="qib" source="Orion">QIB</keyword> portion is yet to be fully subscribed. </li><li>Non-institutional investors also showed good interest in the issue as this portion was subscribed by 3.57 times. </li></ul>The public issue of circuit board maker Cyient DLM was subscribed 2.65 times the number of shares on offer, on the first day of issue on Tuesday. Like the public issue of IdeaForge, this issue too saw tepid response from qualified institutional buyers while retail investors were active in bidding for the shares. While the retail portion of the issue was subscribed nine times over, its QIB portion is yet to be fully subscribed. Non-institutional investors also showed good interest in the issue as this portion was subscribed by 3.57 times. IdeaForge, which is also currently open for subscription, was subscribed 6.38 times over the shares on offer, with a spectacular r<a href="https://www.businessinsider.in/stock-market/news/ideaforges-ipo-subscription-status/articleshow/101300676.cms">esponse from retail investors</a>. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Category </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">No of times subscribed </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">QIBs </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.03 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Non institutional investors </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.57 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Retail </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">9.82 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.65 </td></tr></tbody></table>Source: BSE About the company The company manufactures printed circuit boards, cable harnesses, and box builds used in aviation and medical diagnostic sectors. The price band of the issue has been fixed at ₹250-265, and it plans to raise as much as ₹592 crore via the public issue. It has already raised ₹259 crore from 20 anchor investors like ICICI <keyword id="118708" type="General" weightage="50" keywordseo="prudential" source="Orion">Prudential</keyword>, HDFC MF, <keyword id="127140" type="General" weightage="50" keywordseo="tata-infrastructure-fund" source="Orion">Tata Infrastructure Fund</keyword>, Societe Generale, LIC MF and more. Its revenues went up by 15 percent in FY23 to ₹832 as compared to FY22. Its FY23 net profit however fell by 20 percent to ₹31.7 crore as compared to the year before. The IPO is a complete offer for sale, and the it intends to use the net proceeds towards working capital, capex, debt repayment, and general corporate purposes Funded via IPO proceeds, acquisitions can bring its manufacturing operations closer to customers and increase wallet share, a critical monitorable, says <keyword id="84326" type="General" weightage="50" keywordseo="anand-rathi" source="Orion">Anand Rathi</keyword> which gave a ‘subscribe’ rating on the IPO. The IPO has been commanding a grey market premium of ₹100, as per media reports. Grey market premium (GMP) is the premium at which an unlisted stock is traded in an unofficial market. SEE ALSO <a href="https://www.businessinsider.in/finance/news/almost-one-in-five-of-indias-future-unicorns-has-dropped-off-the-race-as-funding-winter-bites/articleshow/101313249.cms">Almost one in five of India’s future unicorns drop off the race as funding winter bites</a> <a href="https://www.businessinsider.in/stock-market/news/usha-martin-turns-multibagger-after-escaping-debt-trap/articleshow/101301290.cms">This multibagger is charting a growth path after escaping a debt trap</a>

Cyient DLM IPO subscribed 2.65X on day 1 with good response from retail investors

It looks like <keyword id="15561167" type="General" weightage="20" keywordseo="sunshine-days-for-the-Indian-banking-sector" source="Orion">sunshine days for the Indian banking sector</keyword> after having struggled with a seemingly <keyword id="15561168" type="General" weightage="20" keywordseo="never-ending-gloom-of-rising-non-performing-assets" source="Orion">never-ending gloom of rising non-performing assets</keyword> (NPAs) and the Covid-19 pandemic, which hit their profits hard. The September quarter results of <keyword id="6355548" type="General" weightage="20" keywordseo="public-sector-banks" source="Orion">public sector banks</keyword> (PSBs) seem to have brought cheer for the Indian banking sector with all the major 12 PSBs recording net profits worth Rs 25,685 crore during the period under review. On September 7, Finance Minister Nirmala Sitharaman had lauded all the 12 PSBs for their outstanding fiscal performance. In a series of tweets, she said that "the continuous efforts of our government for reducing the NPAs and further strengthening the health of PSBs are now showing tangible results. All 12 PSBs declared net profit of Rs 25,685 cr in Q2FY23". She said that the combined net profits of public sector banks recorded a year-on-year growth of 50 per cent. Similarly, in the first half of the current fiscal, the 12 state-owned banks recorded total profits of Rs 40,991 crore, which were 31.6 per cent higher year-on-year. Country's largest lender State Bank of India (SBI) reported a 74 per cent jump in profit to Rs 13,265 crore, while Canara Bank reported an 89 per cent jump in profit to Rs 2,525 crore. UCO Bank reported a huge 145 per cent jump in profit to Rs 504 crore, while the Bank of Baroda reported 58.70 per cent profit of Rs 3,312.42 crore in the September quarter of 2022-23. Experts have said that the financial performance of PSBs is expected to improve in the current fiscal of 2022-23 over the previous financial year, as NPAs are coming down and leverage of corporates too has been cut. They informed that NPAs of banks were brought out especially after the asset quality review measure was introduced by the government in 2015. While rising NPAs seem to be under control as of now, the Indian banking system had faced a serious threat from these in 2011, when they started rising and had reached a climax in 2017-18, when they reached 11.18 per cent. Though now the NPAs have come down, experts say that it is a cyclical thing as they keep rising and falling. To help PSBs tide over the NPA problem, the government had infused Rs 3 lakh crore in these banks, which went a long way in stabilising them financially. On the basis of this stability, state-owned banks are now able to issue bonds and raise funds from outside, which is gradually making them more financially independent, industry experts said. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/psb-stocks-on-52-week-high-riding-on-record-profits-double-digit-loan-growth/articleshow/95621602.cms" style="">PSB stocks on 52-week high riding on record profits, double-digit loan growth</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/rupee-slips-6-paise-to-close-at-81-70-against-us-dollar/articleshow/95604868.cms" style="">Rupee slips 6 paise to close at 81.70 against US dollar</a>

Crunching Numbers: 12 PSBs end Sept quarter notching up ₹25K+ cr net profit

<ul><li>India’s benchmark indices opened Wednesday in the green amid positive global cues after the US reported a slowdown in inflation.</li><li><keyword id="6484188" type="General" weightage="20" keywordseo="sensex" source="Orion">Sensex</keyword> rose 153 points to open higher at 62,686, while <keyword id="2931774" type="General" weightage="20" keywordseo="nifty50" source="Orion">Nifty50</keyword> gained 63 points to open higher at 18,671 on Wednesday.</li><li>Paytm, HDFC, TVS Motor and others will be amongst the <keyword id="73648" type="General" weightage="20" keywordseo="stocks-to-watch" source="Orion">stocks to watch</keyword> out for on Wednesday. </li></ul>India’s benchmark indices Sensex and Nifty50 opened higher on Wednesday amid positive global cues. US indices surged on hopes of the Fed delivering a slower rate hike after a cool down in inflation, while Asian equity markets also in the green on Wednesday. Sensex rose 153 points to open higher at 62,686, while Nifty50 gained 63 points to open higher at 18,671 on Wednesday. “Indian markets could open higher, in line with largely positive <keyword id="35189" type="General" weightage="20" keywordseo="asian-markets" source="Orion">Asian markets</keyword> today and higher <keyword id="123399" type="General" weightage="20" keywordseo="us-markets" source="Orion">US markets</keyword> on Tuesday,” said Deepak Jasani, head of retail research at HDFC Securities. “Nifty closed in the positive on Dec 13 after a flat session on Monday. Nifty closed 0.60% or 110.9 points higher at 18608. Softer CPI numbers in India boosted sentiments while poor IIP numbers restrained the rise. Nifty could now rise towards the 18668-18729 band while 18410 could offer support,” Jasani added. While the US inflation print came in cooler at 7.1% – the lowest since December 2021 – all eyes will be on US Fed chair Jerome Powell’s interest rate announcement today. Global markets traded higher on hopes of cool down in rate hikes Global market cues were positive on Wednesday as data showed US inflation slowed to 7.1% in November from 7.7% in October, raising hopes that the US Fed will go easy on the pace and size of interest rates hikes. The US markets ended on a higher note on Tuesday with S&amp;P 500 up 0.73%. The tech heavy Nasdaq closed 1.01% higher while Dow Jones ended 0.30% higher. “U.S. stock indexes ended higher in volatile trade on Tuesday, but ended off their best levels, as investors shifted focus to the Federal Reserve’s next rate decision on Wednesday after inflation data showed more signs of cooling,” said Jasani. Asian markets were also trading higher on Wednesday with Taiwan SE Weighted Index up 1.24%, Nikkei 225 up 0.67%, Hang Seng 0.22% higher while Shanghai SE Composite Index was up 0.10%. Rupee opened Wednesday on a positive note at 82.4, gaining 23 paise against the US dollar. Brent crude oil prices hovered around $80.4, edging up from the $76 level at the end of the last week. Stocks to watch out for Paytm: The fintech company announced a buyback of 52.46 lakh equity shares at a price not more than ₹810 per share. The ₹850 crore share buyback will happen through the open market route. Shares of Paytm closed ₹538.40. HDFC: The mortgage lender has received approval from exchanges for the transfer of non-convertible debentures (NCDs) to its subsidiary HDFC Bank. TVS Motor: The company is planning to expand its presence in Turkey with the launch of the TVS Jupiter, TVS Ntorq Race Edition, TVS Raider, and TVS Apache RTR 200 4V. Adani Transmission: Incorporated a new wholly-owned subsidiary, Adani Cooling Solutions, which will carry on district cooling system business. Axis Bank: The private bank received board approval to raise INR 12,000 crore via non-convertible Tier II bonds on a private placement basis. Stocks under F&amp;O ban Bharat Heavy Electricals (BHEL), Gujarat Narmada Valley Fertilizers &amp; Chemicals and Delta Corp are stocks banned in the F&amp;O list on Wednesday. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/inflows-into-equity-mutual-funds-plunge-sharply-in-november-mfs-trim-holdings-in-icici-bank-hcl-tech-kotak-mahindra-bank/articleshow/96200043.cms">Inflows into equity mutual funds plunge sharply in November; MFs trim holdings in ICICI Bank, HCL Tech, Kotak Mahindra Bank</a> <a href="https://www.businessinsider.in/business/news/indias-jet-set-heres-how-billionaires-earned-lost-and-donated-in-2022/articleshow/96206744.cms">India’s jet-set: Here’s how billionaires earned, lost and donated in 2022</a> <a href="https://www.businessinsider.in/stock-market/news/retail-investors-lap-up-droneacharya-ai-ipo-subscribed-23x-on-day-1/articleshow/96203527.cms">DroneAcharya AI IPO subscribed 23x on day 1 as retail investors lap it up</a>

Sensex, Nifty50 open higher amid positive global cues – Paytm, HDFC, TVS Motor among stocks in focus

<ul><li>Indian benchmark indices <keyword id="6484188" type="General" weightage="20" keywordseo="Sensex" source="Orion">Sensex</keyword> and <keyword id="2931774" type="General" weightage="20" keywordseo="Nifty50" source="Orion">Nifty50</keyword> opened flat on Wednesday ahead of the <keyword id="30067" type="General" weightage="100" keywordseo="rbi" source="Orion">RBI</keyword> monetary policy outcome. </li><li>Economic jitters impacted crude oil prices, too – the Brent crude oil fell below the $80 per barrel level for the second time in 2022. </li><li>Sensex opened 11 points lower at 62,616 while the 50-stock index Nifty50 opened 4 points down at 18,639. </li><li>Vedanta, HDFC AMC, <keyword id="1953208" type="General" weightage="80" keywordseo="bikaji-foods" source="Orion">Bikaji Foods</keyword> are amongst the stocks to watch out for on Wednesday. </li></ul>Indian benchmark indices Sensex and Nifty50 opened flat on Wednesday ahead of the RBI monetary policy outcome and weak cues from global markets. <keyword id="90570" type="General" weightage="20" keywordseo="SGX-Nifty" source="Orion">SGX Nifty</keyword>, an early indicator of how the Indian markets may perform, was down 26.5 points, or 0.14% early morning today. <a href="https://www.businessinsider.in/stock-market/news/india-vix-cools-down-to-pre-covid-levels-heres-why-and-where-it-is-headed/articleshow/95743166.cms">India VIX</a>, the volatility index, was up 2.3% today at 14.04. Sensex opened 11 points lower at 62,616 while the 50-stock index Nifty50 opened 4 points down at 18,639. On Tuesday, indices <a href="https://www.businessinsider.in/stock-market/news/sensex-nifty50-end-lower-as-it-pharma-and-metal-stocks-decline/articleshow/96031407.cms">closed lower</a> as caution loomed ahead of the crucial Reserve Bank of India decision on interest rate hikes due today, December 7. Rupee plunged 82 paise to close at 82.62 against the US dollar on Tuesday, marking a month’s low. “Indian markets are likely to open on a flat to negative note on the back of weak global cues. Investors will keenly await the RBI’s bi-monthly policy outcome wherein it expects RBI to raise repo rates by ~35 basis points to 6.25%,” said ICICI Direct. <cmsannotation type="cmsannotation" annotationid="RBI could announce a 35 basis points rate hike" comment="subhead" text="RBI could announce a 35 basis points rate hike">RBI could announce a 35 basis points rate hike</cmsannotation> The Reserve Bank of India is <a href="https://www.businessinsider.in/finance/news/slower-rate-hikes-on-the-cards-say-analysts-ahead-of-rbis-december-monetary-policy-meet/articleshow/95881537.cms">expected to announce</a> a 35 basis points rate hike on Wednesday. The expectations of RBI moderating the pace of rate hikes come at a time when there are talks of the US Fed also slowing down and reflecting on the impact of the hikes so far. India Inc., too, has sought a slowdown in rate hikes after <a href="https://www.businessinsider.in/business/corporates/news/india-inc-q2-fy23-revenue-rises-to-25-6-lakh-crore-here-are-the-winners-and-losers/slidelist/95577982.cms">reporting</a> a decline in net profit growth for the <a href="https://www.businessinsider.in/business/corporates/news/india-inc-s-rockstars-of-q2-and-things-that-investors-should-look-out-for-according-to-analysts/articleshow/95859858.cms">September quarter</a> – net profit of 1,917 Indian companies declined 5.4% to ₹2.18 lakh crore, while revenue grew 24% year-on-year to ₹25.6 lakh crore. <cmsannotation type="cmsannotation" annotationid="Crude oil price below $80" comment="subhead" text="Crude oil price below $80">Crude oil price below $80</cmsannotation> Crude oil price fell below the $80 per barrel level for the second time in 2022 amid concerns of economic slowdown. “Crude will take cues from China’s Covid situation that has been haunting oil markets as well as the Russian oil cap that kicked off on Monday. With the EU embargo and the price cap on Russian oil, along with China’s Covid situation, the price might witness wild moves from one direction to another,” said Ravindra Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities. <cmsannotation type="cmsannotation" annotationid="US and Asian markets in red" comment="subhead" text="US and Asian markets in red">US and Asian markets in red</cmsannotation> Benchmark US indices closed in the red on Tuesday fearing recession while expecting the US Fed to slow its pace of interest rate hike when it meets next week. The benchmark S&amp;P 500 shed 1.44% on Tuesday and closed at 3,941 while Nasdaq Composite dipped 2% to 11,014, Dow Jones Industrial Average dropped 1% to close at 33,596. Following this, Asian markets also trended lower today with the Taiwan TSEC 50 Index falling 0.59%, China’s Shanghai SE Composite declining 0.48% and Nikkei 225 falling 0.46%. Meanwhile, Hong Kong’s Hang Seng was flat with a marginal decline of 0.01%. <cmsannotation type="cmsannotation" annotationid="Stocks to watch out for on Wednesday" comment="subhead" text="Stocks to watch out for on Wednesday">Stocks to watch out for on Wednesday</cmsannotation> HDFC Asset Management Company: The company’s promoter abrdn Investment Management will sell its entire 10.2% stake in the company and cease to be a co-sponsor of HDFC Mutual Fund. Vedanta: The Anil Agarwal led company will consider raising ₹500 crore via non-convertible debentures (NCDs) on December 9 in one or more tranches. Bikaji Foods International: The snacks company has reported 43% on year growth in consolidated net profit at ₹40.92 crore while revenue grew by 32% on year to ₹577 crore. Maruti Suzuki: India’s largest carmaker has recalled 9,125 units of Ciaz, Brezza, Grand Vitara, XL6 and Ertiga manufactured between November 2-28, 2022, to fix a fault with the seat belt assembly. <cmsannotation type="cmsannotation" annotationid="Stocks under F&amp;O ban on NSE" comment="subhead" text="Stocks under F&amp;O ban on NSE">Stocks under F&amp;O ban on NSE</cmsannotation> Punjab National Bank, Indiabulls Housing Finance and Gujarat Narmada Valley Fertilizers are in the F&amp;O ban list on NSE on Wednesday. SEE ALSO: <a href="https://www.businessinsider.in/finance/news/slower-rate-hikes-on-the-cards-say-analysts-ahead-of-rbis-december-monetary-policy-meet/articleshow/95881537.cms">Slower rate hikes on the cards, say analysts ahead of RBI’s December monetary policy meet</a> <a href="https://www.businessinsider.in/stock-market/news/us-india-and-china-markets-are-rallying-on-single-narratives-investors-need-to-be-cautious-say-experts/articleshow/96024939.cms">'One-trick' ponies – US, India and China markets are rallying on single narratives, investors need to be cautious, say experts</a> <a href="https://www.businessinsider.in/stock-market/news/uniparts-india-ipo-here-is-how-you-can-check-the-allotment-status/articleshow/96043984.cms">Uniparts India IPO: Here’s how you can check the allotment status</a>

Indian markets open flat ahead of RBI policy outcome – Vedanta, HDFC AMC, Bikaji Foods among stocks to watch out for

<ul><li>Market regulator SEBI has sought explanation from mutual funds for delaying payments due to investors.</li><li>Top mutual funds in India are citing reasons to delay repaying investors' money.</li><li>The crisis in India's shadow banks caused by massive defaults by IL&amp;FS and Essel Group is unraveling.</li><li>The Economist had warned of such a crisis earlier calling it India's 'Lehman moment'.</li></ul>When an investor buys a mutual fund, specifically invests in a fund that lends money to corporate borrowers, for a fixed period of a time, it is expected that the fund would return the money to the borrower at the end of the tenure based on the agreed terms. That trust that keeps the mutual fund market running is being tested in India. Two of the country's biggest fund houses, that invest the money pooled in from eager investors, have sought <a href="https://economictimes.indiatimes.com/mf/mf-news/essel-group-troubles-have-hdfc-kotak-mutual-fund-seeking-roll-overs/articleshow/68828851.cms" data-type="tilCustomLink" target="_blank">to delay the payments due to the clients</a>. Market regulator, the Securities and Exchange Board of India, has finally swung into action and has written to Kotak Asset Management Company and HDFC Asset Management Company seeking clarification regarding delays in repayment to investors of fixed maturity plans, <a href="https://www.cnbctv18.com/finance/fmp-crisis-kotak-mutual-funds-hdfc-amc-under-sebi-lens-2942511.htm" data-type="tilCustomLink" target="_blank">according to a CNBC-TV18 report</a>. On Monday, Kotak Mutual Fund informed its investors that it would not be able to redeem the securities held by the investors because one of its loans, to the struggling Zee Group has soured. The borrower has sought additional time to repay the debt, and the investors who had trusted their savings with the fund have become collateral damage. 
 <div type="image" title="cotakBI8 (1)" msid="68843945" hostid="261"></div>



 HDFC Mutual Fund, the country’s largest, said it would roll over one of its fixed maturity plans, which is due for redemption on April 15. However, this financial services major that manages billions of people's wealth, has given the payment delay an ironic twist. “The purpose of rollover/ extension is due to current interest rate scenario and portfolio positioning, the yields prevailing in the short maturity bucket present an option for investors to lock in their investments at current prevailing yields,” HDFC MF told its investors. Break it down In simple words, the company is citing high interest rates for short-term loans as an opportunity to reinvest the money that is due. However, can they take that decision unilaterally, without the investors' consent? "Extensions are not possible unless the investors agree. Something like 75% of the investors in that particular scheme have to agree to a rollover. Otherwise a close-ended debt fund has to mature and the money has to be given," Ananth Narayan, professor of finance at SP Jain Institute of Management and Research, told a television channel. The question to ask is will a bank give you more time to pay your dues because someone else failed you? No. Similarly, the fund house is trusted to repay the investors' at maturity, the end of a previously agreed time period. At that point, the choice is with the investors if they want to roll-over the investment for a longer duration or redeem it right away. "We will have to wait for more details. It seems similar to the Kotak situation where some papers might not be liquid enough which is why this option is being provided to investors. I will be very happy if I am wrong and the company clarifies very soon.," Narayan added in his comments. If indeed HDFC Mutual is in a hurry to make the most of rising short-term interest rates in the market, it could start a new fund and investors can be invited to pool in money again based on a new agreement. What seems to be missing in the fund's offer is an explicit consent. Lehman moment The fear in the market is that an increasing number of mutual funds are trying to brush their bad investments in companies like IL&amp;FS, Essel Group etc. under the carpet. In late 2018, many bad business decisions of the past led a set of Indian behemoths to default on their loans leaving behind a financial mess that <a href="https://www.economist.com/business/2018/11/08/indias-banking-system-is-flirting-with-a-lehman-moment" data-type="tilCustomLink" target="_blank">the Economist called India's Lehman moment</a>. The reference is to the collapse of the global investment bank, Lehman Brothers, in 2008 that led to the <keyword id="83197" type="ORGANIZATION" weightage="20" keywordseo="Global-financial-crisis">global financial crisis</keyword> and a widespread panic that shut all taps for credit across the world. The fear was more Indian financial firms may face losses in the days to come that may lead to a cash crunch and panic within the country, something that seems increasingly plausible with the recent sequence of events. The shadow banks, non-banking financial companies and mutual funds, which had lent money to IL&amp;FS and Essel Group to stand have their backs broken by the massive unpaid dues. IL&amp;FS had a debt of $13 billion when it defaulted on some of it. About 10 fund houses had lent to 16 companies belonging to Essel Group with the promoters' shares as security. To their surprise, the fund managers found out later that some of those shares were already pledged to other lenders. India's problem with unpaid loans, and those at the risk of default, is much bigger than these two. In <a href="https://www.business-standard.com/article/finance/npa-woes-india-beats-italy-to-be-world-s-worst-non-performing-loan-ratio-119021900322_1.html" data-type="tilCustomLink" target="_blank">February this year</a>, the country beat Italy to bag the infamous of having the world's highest proportion of bad loans. What was earlier seen as a problem limited to the banks, it is now becoming evident that the damage may be far wider. Now, the small investors fear for their money that is stuck with the stressed mutual funds. The market regulator SEBI that is expected to protect small investors is still silent. SEE ALSO: <a href="https://www.businessinsider.in/markets/lok-sabha-elections-2019-adds-to-the-markets-fears-from-us-fed-minutes-and-imf-forecast/articleshow/68826392.cms" data-type="tilCustomLink" target="_blank">India's 2019 election is only one of the market's many worries</a>

You Searched For "hdfc non cyclical fund" and got 10 results

Groww receives SEBI approval to launch Nifty non-cyclical consumer index fund

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Sensex, Nifty50 drop 1% dragged down by banking, financial services and realty stocks

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HDFC’s share price opened 1.5% higher after announcing ₹14,000 crore fundraising

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Cyient DLM IPO subscribed 2.65X on day 1 with good response from retail investors

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Sensex, Nifty50 open higher amid positive global cues – Paytm, HDFC, TVS Motor among stocks in focus

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