Street signs: Nifty nears resistance zone, Sebi mulls exit load, and more

Worldwide, liquid funds do not have a concept of exit loads and Sebi could be stepping on tricky terrain, especially if it prescribes a specific load amount, say experts

Nifty nears resistance zone

Improvement in the macro situation thanks to a drop in crude oil prices, stability in the rupee and retreat in bond yields have buoyed stock prices. The benchmark Nifty has rallied nearly six per cent this year. Even as fundamental factors remain positive, the markets are approaching a key resistance zone from a technical point of view. Experts say it would be challenging for the Nifty to breach 10,755 levels, where the 200-day moving average for the index is currently. The 50-share index on Friday ended at 10,682. Samie Modak

Sebi mulls exit load on liquid funds

The Securities and Exchange Board of India (Sebi) is mulling introducing an exit load for liquid schemes to prevent money from flowing out when a crisis like Infrastructure Leasing & Financial Services unfolds. The load levied could be up to 50 basis points on an annualised basis, if the money is pulled out before five days, sources said. Worldwide, liquid funds do not have a concept of exit loads and Sebi could be stepping on tricky terrain, especially if it prescribes a specific load amount, said experts. As of October 2018, assets under management of liquid schemes totalled Rs 4.5 trillion, a fifth of the total mutual fund assets. Ashley Coutinho

Arbitrage at play

Bosch and Hathway Cable are among the stocks that retail-focused brokerages are advising their clients to take position into. They say investors can pocket gains up to 10 per cent in a few weeks in these stocks thanks to the corporate action in them. Bosch has announced a Rs 21.6-billion buyback programme, where the repurchase price is Rs 21,000, 11 per cent more than the current market rate. Similarly, the open offer price by Reliance Industries in case of Hathway is Rs 32.50, 6 per cent more than the current market rate. Samie Modak