>Money Advisor (RELIANCE MONEY)

SYNOPSIS

Mutual Fund Update
The report reviews the performance of all open ended equity schemes and debt schemes covered by Reliance Money. The performance has been reviewed as on March 2009.

Performance Overview
The markets witnessed a sharp correction in the beginning of the month of March, 09, however by the end of the month investors started investing money since the valuations were looking attractive and the markets have recovered by almost 10%. Mutual funds who were holding tightly to cash positions have now slowly started deploying the money however many fund houses are still cautious with their investment approach. The overall performance of the schemes has gone up in the last month. Among large cap funds, Templeton India Growth Fund and Principal Large Cap Fund emerged as toppers on a monthly basis with 10.73% and 8.03% absolute returns as against the category average of 5.5%. While on a yearly basis, IDFC Imperial Equity Fund and DSP BlackRock Top 100 Equity Fund have topped the charts outperformed their benchmark indices as well as exceeded category average.

The Midcap and Smallcap category have continued to under perform as a whole as compared to other equity categories. However with the recovery in the markets the funds within this category performed well on a one month basis. Within this segment SBI Magnum Midcap Fund and Franklin India Prima Plus were gainers and reported 7.9% and 6% absolute returns respectively. While on an annualized basis, Franklin prima plus and Reliance Growth were among the leaders while Fortis Future Leaders Fund and SBI Magnum Sector Umbrella - Emerging Business Fund were among the laggards.

Being the tax saving month, ELSS witnessed a net inflow of Rs.547 crore in the month of March 2009 which was higher as compared to industry expectation given the market conditions. However the inflows were subdues as compared to the figures of previous fiscal. Among ELSS funds, ICICI Prudential Tax Plan and Reliance Equity Linked Saving Fund - Series I were among the toppers.

Gold ETF is another category which has come in the limelight with the recent upsurge in gold prices. Gold ETFs have outperformed every other asset class rising 22.8% for the year ending March 30, gold funds that invest in gold mining
companies and mutual funds (MFs), which have an exposure in such companies, too, have joined the Bull Run.

To see full report: MONEY ADVISOR

>Cement Sector (EMKAY)

Q4FY09 - Strong dispatch numbers, better realizations and lower costs

* We expect Q4FY09 to be a strong quarter for the cement sector mainly driven by a 9.4% dispatch growth, better realizations and easing of cost pressures.

* Following strong growth in dispatches cement prices have defied consensus expectations and have risen by Rs15 bag and are currently ruling at Rs246/bag as compared to Rs231/bag in early January 2009. However it is to be noted that since most of the hikes were effected form mid February 2009 the average price increase in Q4FY09 over Q3FY09 has been just Rs3 per bag i.e. Rs238/bag in Q4FY09 as compared to Rs235 in Q3FY08. On a yoy basis, Q4FY09 cement prices are up Rs6/bag or 2.6%.

* We expect the cement companies under our coverage to report a 10.6% yoy topline growth. Pure cement sales are expected to be up 15.5% driven by volume growth of 7% and net realisation improvement of by 8.5% (benefits of excise duty cuts not passed on).

* At operational level, we expect cement companies in Emkay universe to witness a decline of 293bps yoy in EBITDA margins to 26.3%. However on a qoq basis, the same is expected to improve by 264bps on account of better realisations and easing cost pressures during the quarter.

* Overall we expect the cement companies to report a marginal 0.2% decline in their EBIDTA as compared to a huge 19.3% decline witnessed in Q3FY2009. Infact pure cement EBDITA is expected to improve 8.1% yoy. EBITDA/ton is expected to touch Rs1064 as compared to Rs907 in Q3FY2009, i.e. a huge 17% improvement QoQ.

* Rising interest cost and higher depreciation charge on account of continuous capex will lead to net profit of Emkay cement universe falling by 6% yoy. However the same is significantly lower than 21.1% decline witnessed in Q3FY2009.

* We have been positive on the sector on account of sharp moderation in cost pressures, better than expected dispatches and higher cement prices. Maintain positive view on the sector and believe that impending consensus earnings upgrade and severe under ownership of the sector will continue to fuel outperformance. ACC, Ambuja Cement, Ultratech Cement and India cement are our top pick in the sector.


To see full report: CEMENT SECTOR

>Results Preview (KARVY)

Bank of India (Rs258) - Results Preview
BUY - Target Price: Rs455

Andhra Bank (Rs54) - Results Preview
BUY - Target Price: Rs74

Lupin (Rs696) - Results Preview
BUY - Target Price: Rs900

To see full report: RESULTS PREVIEW

>Gold higher on physical, safe-haven buying

London -Spot gold rose for the second straight day Tuesday on physical demand from Asia and doubts about the nascent recovery in equity markets. The tumble in financial stocks Monday unnerved investors, prompting them to seek cover in safe-haven assets like gold. Further equity losses could drive gold above its near-term resistance at $890 a troy ounce, traders said. At 0956 GMT, spot gold was trading at $888.80/oz, up 0.4% on the day. Spot silver followed gold's lead and was 1.1% higher at $12.18/oz. Spot platinum bounced 0.5% to $1,165.50/oz, while spot palladium was 2% higher at $226.50/oz. The Dow's reversal Monday after six weeks of gains gave fresh life to worries that the banking industry remains vulnerable. "It goes to show...you get some bad data and the old fears reassert themselves very quickly," said a precious metals trader in London. Further weakness in equity markets are likely to sustain investor interest in gold and force more shorts to cover, he said. Traders said a break above $890/oz could lead to a test of $900/oz. If gold closed above that level, it would break its recent downtrend and possibly generate enough momentum to rally to $940/oz, said James Moore, an analyst at TheBullionDesk.com. European equity markets were higher Tuesday, which could damp some of that safe-haven demand. Should equity markets retain those gains, gold may retrace but hold above last week's lows, traders said. Physical demand from India remains steady since its reappearing recently after being absent in the first few months of 2009. Demand from East Asia is also healthy, and this stronger bid should continue to provide a near-term bottom at $865/oz, which may keep investors interested, said Narayan Gopalakrishnan, a trader at Swiss bullion house MKS Finance. "As long as we hold $865/oz, we can still see minor interest coming in," Gopalakrishnan said.

Source: COMMODITIESCONTROL