Stock Markets - in Run Up to The Budget

[chetan]

Historical precedent does not favor the market for the next two months. The markets are usually flat in the month ahead of the budget and, in two out of three years, fall in the month following it.

Indeed, in the period 1979-2009, March was the market’s worst month with two out of three years witnessing negative returns averaging 2.7%. The 15-day period post the budget produces an average negative return of nearly 4%. The extent of sell-off has been worse over the past three years with the market losing 9% on an average in these years.

And the expectations the Analysts on the street have built up are - push forward on policy reforms including a roadmap for GST, reduction in deficit, divestment plan, acceleration in infrastructure spending and a definite time line for direct tax reforms.

[pawankumar]

In the MF market While crop funds are increasingly becoming popular among investors, some of the conservative market experts fear a deep credit squeeze or a string of payment defaults could result in loss of investments.i wonder how true that fear is?

Currently fund houses like Templeton, DWS, Reliance Mutual, Religare Mutual and Kotak Mutual Fund have crop funds with varying investment styles and structures.

[pawankumar]

Reliance Mutual Fund has announced the declaration of dividend on the face value of Rs 10 per unit under dividend option in retail & institutional plan of Reliance Interval Fund - Quarterly Interval Fund - Series II. The record date for dividend has been fixed as 6 May 2010.

      The quantum of dividend will be 100% of distributable surplus as on the record date. The NAV of retail plan was at Rs 10.1116 per unit and Rs 10.1162 per unit for institutional plan as on 29 April 2010.