India's mutual fund industry presented two contrasting images this week: one in which some leaders blamed Sebi rules and lack of reforms for the Templeton fiasco, and another in which one industry leader took a long hard look inward to find that the industry "has stopped respecting valuations" and is busy chasing 'stories'. In an industry where investors are being made to live with abrupt closure of schemes, sidepocketing of securities and things like that, the latter kind of self-assessment holds out hope that the mutual fund sahi hai slogan will not die a premature death.
MARKET CUES: Where we stand >>>  | Nifty futures on the Singapore Exchange traded 103 points higher at 7 am (IST) in signs that the market may attempt a rebound on Dalal Street |
| On Thursday, Nifty slipped below the 9,200 level and formed an Inside Bar on the daily chart, signalling indecisiveness among investors. The index has been making lower highs for last four sessions and needs to negate this trend to get out of the weak trade setup |
| India VIX moved down 3.20 per cent to 39.93 level on Thursday, negating its lower high - low sequence of last five weeks. This signalled further selling pressure ahead on any bounce. |
| Elsewhere in Asia, stocks rose Friday as investors continued to weigh moves to reopen economies against data illustrating damage to economies. Japan saw gains of more than 1%, the largest moves, while shares also rose in Hong Kong, Shanghai, Seoul and Sydney. |
| US equity benchmarks closed positive overnight, finishing off their best levels. Dow rose 211 points, or 0.9%, while the S&P500 added 32.77 points, or 1.2%, and the Nasdaq 125 points, or 1.4% |
| Oil prices backed off with Brent futures down 26 cents, or 0.9%, at $29.46 a barrel, and US crude losing 44 cents, or 1.8%, to $23.55. |
| The rupee depreciated 9 paise to close at 75.72 against the US dollar on Wednesday, following a strong US currency overseas and fears of a renewed trade war between the US and China |
| The dollar slipped on Friday as investors defied a broader sense of doom and found reasons to buy riskier currencies. The Dollar Index against six major currencies slipped to 99.829 from Thursday's high of 100.40. The euro edged back to $1.0835 |
| LOOK WHO'S |  |
Corp bond sales swell... Corporate bond sales trebled in April as banks lent to the bluest of Indian blue chips — Reliance, the Aditya Birla Group, the Tatas, and the Mahindra conglomerate — after Mint Road opened a special window that gave highstreet lenders access to more long-term financing at lower costs. During the month, companies sold bonds worth Rs 71,628 crore, compared with Rs 23,738 crore in the corresponding period last year, show data compiled by JM Financial.
Read More Startups dole out Esops amid pay cuts… Some of India's leading consumer internet startups are offering additional stock options to employees in a bid to retain them following broad pay cuts due to economic upheaval triggered by Covid-19. Online food delivery major Zomato, hospitality chain Oyo Hotels & Homes, grocery delivery company Grofers and mobility venture Bounce are among those bulking up Esop pools, after initiating salary reductions across the board.
Read More Push to bring rupee derivative market home… India is taking its first baby steps to tackle a growing offshore market for its currency. Two exchanges -- India International Exchange and NSE IFSC -- will on Friday begin trading foreign-exchange settled rupee derivatives as part of a push to bring the market back home. The launch comes amid the world's most expansive coronavirus lockdown, which has crippled businesses and hurt trading volumes in the country's financial markets.
Read More | AND WHO'S |  |
Franklin told to return money... Markets regulator Sebi has come down heavily on Franklin Templeton Mutual Fund for its global chief Jennifer M Johnson's comments that one of the reasons for the closure of six schemes was due to a decision by the regulator in October 2019. Late Thursday, Sebi asked Franklin Templeton MF to "focus on returning the money to investors" stuck in these funds "as soon as possible". It said some unlisted debt papers in which a few of the fund houses invested in had opaque structures and lacked financial disclosures.
Read More Fuel taxes rise to 70% of retail prices... Taxes now comprise 70% of retail prices of petrol and diesel after Tuesday's duty hike that also cut oil companies' record-high fuel marketing margin by three-fourths. Central and state governments, starved of revenue due to a nationwide lockdown, are increasingly resorting to fuel tax hikes to capture most gains from a global oil crash that began early March, leaving little benefits to the consumers.
Read More Labour shortage haunts India Inc… India Inc and hundreds of small and medium businesses across the country are grappling with surging labour costs as workforce shortage intensifies and wages are increased to keep migrants from leaving for villages. Business leaders and corporate executives say the problem is already evident in sectors such as construction, consumer goods and ecommerce, and may hit major manufacturing sectors once these resume full-scale operations after the lockdown ends.
Read More Meanwhile... Look, who bought HUL shares... Societe Generale lapped up bulk of the HUL shares when GlaxoSmithKline sold its stake in India's largest block trade on Thursday. The transaction came in pursuance of GSK's two-year programme to split itself into two entities after it made costly bets on experimental cancer treatments and future cell and gene therapies. The drugmaker cashed in on the 5.7% stake that it had taken in HUL as payment for the sale of its malted drink brand Horlicks and other nutrition brands to Unilever in 2018.
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