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Street signs: A breather before a new high, Parag Milk on HNI radar & more

The slew of regulatory changes has kept the mutual fund industry and officials of Association of Mutual Funds in India (Amfi) on their toes over the past few weeks

defaults, NPA, growth, credit, economy, gdp, market, shares, stocks, valuation, growth, profit, loss — The benchmark Nifty index has rallied over 10 per cent in the past 10 trading sessions

Sundar Sethuraman Ashley Coutinho Samie Modak Thiruvananthapuram/Mumbai

2 min read Last Updated : Oct 11 2020 | 8:08 PM IST

A breather before a new high

The benchmark Nifty index has rallied over 10 per cent in the past 10 trading sessions. On Friday, the index closed at 11,914, just 3.6 per cent shy of its all-time high. Technical analysts say the markets could take a breather before climbing new highs. “The possibility of a temporary breather in 12,000-12,100 range cannot be ruled out. However, we believe, such a breather should not be construed as negative as the broader structure remains positive. Instead, dips should be capitalised as an incremental buying opportunity in quality stocks,” said Dharmesh Shah, head-technical, ICICI Direct.

Sundar Sethuraman

Spate of regulatory diktats hit MFs

The slew of regulatory changes has kept the mutual fund industry and officials of Association of Mutual Funds in India (Amfi) on their toes over the past few weeks. Amfi’s committees have been meeting every other day to discuss the challenges in implementing the new guidelines. Industry officials say the spate of changes has caught everyone by surprise, more so as the regulator has not followed a consultative approach in some of these. A new category definition for multi-cap funds, rejigging the riskometer, changing the nomenclature of dividend schemes, and restrictions on inter-scheme transfers are some of the key diktats issued in the past month. The regulator also recently announced it would issue guidelines aimed at improving the liquidity of debt mutual funds and meeting redemption requests at a short notice.

Ashley Coutinho

Parag Milk on HNI radar

Shares of Parag Milk Foods surged 15 per cent on Friday on the buzz that Radhakishan Damani has picked up a stake in the company. It couldn’t be ascertained if the buzz is true as the dairy company is yet to disclose its September quarter shareholding pattern. In the past, stocks of several companies have surged after it has emerged that billionaire investor and retailer Damani has acquired a stake. Market observers say Parag Milk lately has been on the radar of high net-worth individuals (HNIs).

On Friday, wealthy investor Amal Parikh picked a 1.7 per cent stake in the firm known for its Gowardhan- and Go-branded milk products.

Samie Modak