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November 2011

Indian equity markets like its global peers bounced back in style in the festive month of October, after being subdued for a long time. Equity markets ended the month of October on an encouraging note as both the broader indices showed significant upward movement. BSE Sensex and S&P Nifty both posted positive gains of 7.60% and 7.76% respectively. Small and Mid cap stocks under performed the broader markets as the BSE Small Cap Index and BSE Midcap Index reported a growth of just 1.36% and 2.75% respectively. BSE Auto and BSE IT were the top performing sectors registering a growth of 11.52% and 10.48% respectively. BSE Metal was one of the worst hit sectors in the month losing 9.11%.

Developments towards resolution of Eurozone crisis was one of the biggest contributing factors that led to this splendid recovery world over. 

In its monetary policy announcements on 25th October, 2011, RBI gave banks the liberty to fix the savings accounts interest rate. It also hiked the repo and reverse repo rate by 25 basis points. The RBI has also revised down its growth forecast for the fiscal from 8% to 7.6% with a downside bias. Inflation for the month of September was a whopping 9.7% and is expected to moderate only from December 2011 although economic growth has already been seen to be moderating thanks to the impact of past monetary actions.

It is again that time of the year when you will have to do your tax planning. Through Magnum Taxgain Scheme, our flagship ELSS scheme we have been among the pioneers in offering investors an avenue to get potential gains from the equity markets, and at the same time save tax under Section 80C. Please feel free to approach your nearest SBI Mutual Fund Investor Center to know more about how to save taxes with Magnum Taxgain Scheme.

On the debt side, we would continue to recommend our investors to invest in SBI Dynamic Bond Fund and benefit from the spike in bond yields. Besides you can also look at liquid schemes and Short term funds to invest your short term surplus funds.

We are absolutely committed to providing unparalleled service to our investors and to cater to your information, investment and servicing needs. Please feel free to call at our dedicated customer care numbers 1-800-425-5425 (MTNL/BSNL users only) and 080-26599420 from Monday to Saturday (8am – 10pm) or write to us at customer.delight@sbimf.com with your queries. Alternatively you can also visit your nearest Investor Service Centre / Investor Service Desk for any assistance.

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