Market

The supply of pulses is likely to improve in the next one week as the government has taken a series of steps to smoothen processes across entire value chain. So far, dall mills have been complaining of a squeeze due to the closure of mandis, labour shortage and unavailability of transport facilities, following the 21-day lockdown.

Dal mills are currently operating at less than 40 per cent of their installed capacities due to the shortage of raw materials, as supply of whole-grain pulses deteriorated due to the closure of agricultural mandis across the country. The sudden announcement of the lockdown has brought transportation of all essential and non-essential commodities to a halt. While intermittent transportation continues with permission from the local authorities, mathadis, truckers and others involved in the supply value chain remained apprehensive, resulting in massive disruptions in pulse supplies.

Commodity traders have asked India’s markets regulator to restore trading hours till 11.30 pm to contain trading volatility and losses seen after the coronavirus pandemic since December 2019.

Narinder Wadhwa, president of Commodity Participants Association of India (CPAI), said in a letter to Santosh Kumar Mohanty, executive director and whole-time director of Securities and Exchange Board of India (Sebi), said the request is based on an opinion poll of its members who voted for restoration of the original trading timing.

After the government imposed a nationwide lockdown to prevent the spread of the coronavirus, Sebi reduced the trading hours on commodity markets to 9 am-5 pm from the earlier 9 am-11:30 pm to help exchange employees and traders practise social distancing.

However, the shortened trading hours, the association claimed, have increased their risks and thus, the possibility of losses.

The Rs 27-trillion mutual fund (MF) industry could see some slowdown in March, with estimates (up to March 27 for 80 per cent industry assets) suggesting a dip of 10-15 per cent to Rs 9,100-9,700 crore in the equity segment. Industry players say flows have shown resilience in a highly-volatile month that also saw closure of MFs’ branch offices due to Coronavirus-induced lockdown.

Compared to the last 12-month average of Rs 6,984 crore, the estimated equity flows are still 30-38 per cent higher.

The monthly flows for industry are typically released with lag of 7-10 days.

“The flows have been robust, even though there is some decline. The current sell-off has also given fund managers an opportune time to deploy cash in markets with several stocks in mid- and small-cap segment trading at attractive valuations,” said a fund manager.

SBI Mutual Fund (MF) and DSP MF have opened up their small-cap funds for accepting lump sum investments amid the sharp correction in valuation of these stocks in the recent market sell-off.

Lump sum investments are like tactical infusions that one can make at any point of time, based on his view. They differ from systematic investments that are routed through SIPs on a monthly basis.

Starting Monday, SBI Small Cap Fund will allow lump sum investments till it receives net inflow of Rs 1,000 crore. SIPs were allowed in the scheme with certain caps.

From April 1, DSP MF has decided to revoke the temporary suspension of lump sum investments in units of DSP Small Cap Fund.

“Over the last two years, the S&P BSE Small Cap TRI (total return index) has fallen cumulatively by 56 per cent. We currently have the ability to invest in great businesses