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Price surge in Reliance Industries Ltd.’s share,Problem for India’s equity mutual funds.

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4 years ago

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The scorching rally in Reliance Industries Ltd.’s shares is becoming a problem for India’s equity mutual funds.

The stock has more than doubled from a March low, thanks to Chairman Mukesh Ambani’s fundraising blitz. The run up has increased the company’s weighting in the S&P BSE Sensex to 17.4%, from 11% at the end of 2019.

Money managers have hit a regulatory wall because of the surge. They can’t buy more of India’s most valuable company as actively-run plans aren’t allowed to own more than 10% of a single stock. This means funds can’t add rising stocks, such as Reliance, and therefore risk trailing the market, said Nilesh Shah, managing director of Kotak Asset Management Co.

“Clients don’t understand this technicality so it’s hard to explain to them why a particular fund is under-performing,” said Shah, who is also chairman of the Association of Mutual Funds in India. “Funds have no option but to book profits in such cases to comply. We have asked Sebi to allow us to align our holdings with changes in the stock’s weighting.”

Listless performance has been one of the reasons behind the waning popularity of equity funds in recent months, with many individuals taking direct bets on a market that has erased a bulk of the virus-induced losses. Large-cap funds have risen 8% on average over the past six months, data on Morning star Investment Adviser’s website show. The Sensex is up 9% in the same period.

Reliance’s shares rose 12% to a record last week, lifting the company’s market value past the $200 billion mark, as people familiar said Amazon.com Inc. and KKR & Co. are in talks to buy stakes in its retail business.

But money managers trimmed their combined holdings in Reliance by 5 million shares worth 10.3 billion rupees in August, making it the most sold stock by value, Edelweiss Financial Services Ltd. said in a note Friday.

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Apple is giving a huge discount on its gadgets: Details inside

Published

3 years ago

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May 5, 2022

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If you want to buy an iPhone and were waiting for a nice offer, then we have a piece of good news for you! Amazon Summer Sale May 2022 has begun and they are offering major discounts on various smartphones, laptops, and smart TVs, among others.

The sale is live now on the e-commerce platform with no-cost EMI options and exchange discounts on various products. In addition to this, Amazon has also partnered with several banks including ICICI, Kotak Bank, and RBL so that customers get instant discounts of up to 10% using their cards and EMI transactions.

Customers can easily enjoy this summer sale and get massive discounts on iPhones. They can also compare prices on Flipkart Big Saving Days Sale 2022 before making a purchase.

 

Amazon Summer Sale May 2022: Discount offer on iPhone 13 

Apple’s coveted phone model iPhone 13 in the 128 GB storage model will be available during the Amazon Summer Sale May 2022 for Rs 64,900. The MRP of the phone is Rs 79,900. This means that the customers will be able to enjoy a discount of up to Rs 15,000 on the purchase of the iPhone 13.

If you have an old iPhone in working condition then you will also be eligible to receive another additional discount worth up to Rs 17,000 on the iPhone 13.

Buy at Rs. 64,900 (MRP – Rs. 79,900)

Features of Apple iPhone 13 

The iPhone is powered by an A15 Bionic processor with 6 core CPU. Apart from this, it has 16 core neural engines. With the iPhone 13, up to 512 GB of storage will be available. The iPhone 13 has a 6.1-inch Retina XDR display with 1000 nits brightness.

The iPhone 13 has a 12-megapixel dual rear camera setup. This time a new wide-angle camera has been given, whose aperture is f/1.6. With this, there is support for sensor optical stabilisation. Night mode has been made better than before. The second lens is also 12 megapixels ultra-wide and has an aperture of f/2.4.

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