Readings: MF redemptions, PSU oil profits, RBI Sundays
- Hindu Business Line: Numbers belie fears over MF redemptions
Equity AUM has itself fallen by around 25.9 percent from the start of this year. This is largely explained by the erosion in market value of NAVs over this period.
One key trend in equity fund inflows during this period was the shift in fresh money from new fund offers (NFO) to older open end funds from fund houses.
As much as 21.9 percent of the assets under management with Income funds were redeemed during October. 70 percent of redemption has been on open-ended funds while about 19 percent is from the closed-end category.
- Economic Times: Public sector oil firms make profit on petrol, diesel sales
Public sector oil companies have for the first time in more than a year started making profit on sales of petrol and diesel, strengthening the case for a fuel price cut soon. But the oil companies do not want to reduce prices now as they continue to lose Rs 82 crore per day on PDS kerosene and domestic LPG. Kerosene is being sold at a loss of Rs 22.40 a litre and LPG at Rs 343.49 per cylinder.
The government compensates the three refiners for half of their revenue loss on fuel sales by way of oil bonds. Another one-third of the losses are met by companies like ONGC and OIL by way of discounts on crude oil they sell to them.
- Business Standard: More steps to combat crisis
The Reserve Bank of India today announced a slew of measures to attract foreign currency deposits and boost liquidity to mutual funds, non-banking finance companies and exporters.
. . . it raised the interest rate on foreign-currency deposits by 75 basis points with immediate effect and extended until March the special repo window to meet the liquidity requirements of mutual funds and non-banking finance companies.
. . . it would consider proposals from Indian companies to buy back foreign-currency convertible bonds. The buyback will be financed by the company’s foreign currency resources held in India or abroad and/or out of fresh external commercial borrowing (ECB).
The bank also reduced the risk provisioning for the commercial real-estate industry to 100 per cent from 150 per cent.
The RBI continues to work weekends. I imagine things are looking ugly from their end.
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