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Sunday, May 11, 2008
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Markets (May 9)
BSE Sensex16737.07 (-343.58)
S&P CNX Nifty4982.60 (-99.10)
US Dollar41.61 (-0.17)


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MARKETS

INVESTMENTS
‘Our biggest problem is an acute home country bias’
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Transporting LDI to private wealth management
Liability-driven investment (LDI) is now the norm in the pension-fund industry. This refers to matching the risk and horizon of the investment portfolio with that of the liabilities. LDI is commonly followed by defined-benefit plans. This concept ... More

NEW FUND OFFER
Update
Kotak Mahindra Asset Management Company has launched an exchange change traded fund - Kotak Sensex ETF. The scheme will focus on investing in the stocks in the BSE Sensex. The investment objective of the scheme is to provide ... More

MUTUAL FUNDS
April shows renewed interest in gold ETFs
5% growth over March; market sees spot gold push More

UTI Equity Fund — Heavy on capital goods
UTI Equity Fund is the new avatar of erstwhile UTI Master Gain. The fund’s NAV dropped by 14 per cent in the past six months while the benchmark BSE 100 has shed 20 per cent. During the same period, the fund’s assets under ... More

STOCKS
MIC Elec to consider stock split
MIC Electronics Ltd has informed the BSE that a meeting of its board of directors will be held on May 19 to consider the sub-division of face value of an equity share of Rs 10 each into 5 equity shares of Rs 2 each, subject to the approval of ... More

STOCK MARKETS
Query Corner
I am holding shares of Varun Shipping. Please let me know the future prospects of this stock. Shantappa N MundasVarun Shipping (Rs 79.3): This stock is in a long-term consolidation ... More

DO THE DERIVATIVES
Using Bull Call spreads
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HOW-TO-GUIDE
What the put-call ratio signals
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Reliance Industries
RIL moved in a very narrow range just below the key resistance at Rs 2,700 before buckling under the selling pressure on Friday. The sideways consolidation since April 15 now appears to be in a final corrective pattern. But the near-term ... More

SBI
The laboured rally in SBI since the first week of April came to an end last week with a bearish engulfing candle in the weekly candlestick chart. It is now fairly certain that SBI would re-test its April trough at Rs 1,600 in the near-term. ... More

Tata Steel
This stock bucked the trend in the general market and closed the week in the green. Tata Steel is however still flirting with the intermediate resistance at Rs 850. We remain with the view that fresh longs should be initiated only above ... More

Infosys
Infosys reversed downward from an intra-week peak at Rs 1,875. The near-term trend is currently down and the daily oscillators are moving down from the overbought region. The stock can move lower to Rs 1,700 or Rs 1,650 in the near-term. ... More

FOLLOW THE MONEY
Asian markets stare down the oil barrel
Chances are that most of us would have never heard of the Nigerian Stock Exchange All Shares Index, Venezuela Stock Market Index or even the Teheran Stock Exchange Price Index. But equity investors across the world certainly felt the ... More

Unitech
Unitech took a breather last week, as anticipated in our previous column. The harami candlestick pattern in the weekly chart reflects this indecisive mood. Short-term traders can hold their trading longs with a stop at Rs 275. A decline below ... More

Reliance Energy
The nascent up trend in Reliance Energy received a sharp set back last week, contrary to our expectation, as the stock closed with a 14 per cent weekly loss. But the short-term outlook will turn overtly negative only if it declines below Rs ... More

Tech School
We had taken a look at the simpler method of identifying supports and resistances in last week’s column. But these key levels can be found through other methods as well. Few of these are discussed below.In our previous lessons, we ... More

FOREIGN INSTITUTIONAL INVESTORS
Property shopping goes global
Villas in Mauritius, studio apartments in London and beachfront houses in Miami — these are some of the properties global realty players are showcasing to the affluent here in India. Global realty players who made a beeline to tap the ... More

OVERSEAS INVESTMENTS
Indian mutual funds shop globally to woo locally
Gold, realty and natural resources feature on the investor menu More

RECOMMENDATION
IRB Infrastructure Developers: Buy
Investors with a 3- to 5-year perspective can consider investing in the stock of IRB Infrastructure Developers. With a portfolio of 11 operating toll roads and three under execution through special purpose vehicles, the company’s revenue ... More

Pantaloon Retail: Buy
More

Gokul Refoils and Solvents — IPO: Invest at cut-off
More

MIC Electronics: Buy
More

DSPML Opportunities Fund: Hold
Investors can continue to hold the units of DSPML Opportunities Fund, considering its long term track record in delivering steady returns. The fund is one of the few “Opportunities” funds with a five-year track record. The fund ... More

Anu’s Laboratories - IPO: Invest
More

JM Contra: Hold
Investors can retain their units in JM Contra. While the fund’s return of 8 per cent since inception in September 2007 has underperformed its benchmark BSE-500, there has been a marked improvement in returns in 2008. The ... More

OUTLOOK
Downtrend may continue in Nifty future
As we had expected, the Nifty future saw a sharp fall last week. It closed at 4986.7 as against the previous week’s close of 5246.5, shedding a good five per cent in the process. The week also saw Nifty future’s premium over the ... More

Index Outlook
Stock markets wilted last week as market participants decided to follow the maxim, ‘sell in May’, at least partly, by taking some profit off the table. With the simmering crude oil prices stoking inflation fears in most countries, ... More






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