Business Daily from THE HINDU group of publications
Sunday, June 29, 2008
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Markets (June 27)
BSE Sensex13802.22 (-619.60)
S&P CNX Nifty4136.65 (-179.20)
US Dollar42.88 (+0.13)


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MARKETS

INVESTMENT BANKING
Overseas investors seeking out Indian partners for advice
New Delhi, June 28 It’s a new KPO format — one that entails outsourcing of investment decision inputs by global funds to Indian investment managers. The trickle has started, but a deluge is expected by industry watchers.New ... More

MUTUAL FUNDS
Mutual funds turning to debt, trim equity
Despite the steep Sensex decline, asset base expands 9% till May More

RETURN TRACKER
Diverging sharply
Equity fund returns More

‘This is a fund-pickers’ market’
More

FIRST LESSONS
Measuring ‘skill’ and ‘earning’ returns
More

Fund Update
Kotak Mutual Fund has revised load in its equity schemes, effective 1 July. An entry load of 2.25 per cent will be charged for investments less than Rs 5 crore and an exit load of 1 per cent will be charged for redemptions and ... More

STOCKS
Reliance
The latest leg of the down-move in Reliance Industries dragged the stock towards our medium-term target at Rs 2,000. It is now obvious that the stock is charting the C wave down from the Rs 3,298-peak. The targets for this wave are Rs ... More

SBI
This stock slipped below the long-term trend line at Rs 1,300 conclusively on June 20 and is now headed towards our next medium-term support at Rs 1,000. The targets of the third leg down from the January peak are Rs 1,337 and then Rs 1,027. ... More

Tata Steel
Tata Steel could not remain immune to the weakness engulfing the other stocks and declined to an intra-week low of Rs 688. This leg of the sell-off has pulled the stock below its long-term moving averages. But a conclusive close below the key ... More

Infosys
Infosys could not muster the strength to move beyond Rs 2,000 and declined to our medium-term support at Rs 1,700 instead. As indicated earlier, the medium-term view for the stock stays positive as long as it holds above Rs 1,700. A reversal ... More

Unitech
We had mentioned in our previous column that the long-term view had turned negative and a move to Rs 160 was imminent. Unitech pulled back from an intra-day low at Rs 160 on June 25. The stock ought to form a long-term trough in the zone ... More

Reliance Infra
Reliance Infrastructure declined below the key psychological support at Rs 1,000 last week though bulls did put up a fight around that level. The weakness in the daily and weekly oscillators implies that the stock has not reached the bottom ... More

FINANCIAL MARKETS
DEBT OUTLOOK
Focus on short-term funds
Reserve Bank of India (RBI) stepped up its efforts to tame inflation by increasing both repo rate and Cash Reserve Ratio (CRR) by 50 bps each. The latest move is a reflection of the reversal in interest rate expectations in 2008. A sharp rise ... More

Building wealth from scratch
I have just migrated to the US for employment. I am 40 years old and my wife is a home maker. We have two daughters aged 4 and 10. I don’t have any savings. I have borrowed huge sums, which I am repaying now. Assume that I am ... More

STOCK MARKETS
Mildly bearish? Here’s a low-risk low-return option strategy
More

Brace yourselves for another dismal week
As expected the Nifty futures began the week on a frail note and ended further down. Markets gave in to the heavy selling pressure despite there being some show of resilience in the middle of the week. Overall, the Nifty future ... More

What has changed with MF portfolios
Domestic mutual funds have unflaggingly pumped money into Indian stocks in 2008, even as foreign institutional investors have been queuing up at the exit doors. With valuations for many fancied stocks and sectors ruthlessly whittled down, buying ... More

Tech School
Novice investors wishing to get acquainted with technical analysis would have been bemused by quaint terms such as head and shoulders, cup and saucer, neckline, double tops, rounding bottoms and so on, that appear frequently in technical ... More

FOREIGN INSTITUTIONAL INVESTORS
MACROTRACKER
Trends in foreign capital inflows
More

RECOMMENDATION
Query Corner
I hold shares of ONGC and ACC purchased at Rs 1,030 and Rs 725 respectively. Please let me know the future prospects of these stocks. Vijay Kumar RahejaOil and Natural Gas Corporation (Rs ... More

HCL Infosystems: Buy
Investments with a one-year horizon can be considered in the shares of HCL Infosystems, considering its well-positioned business in the domestic IT infrastructure market and very reasonable valuations. At Rs 137, the stock trades at 7 times ... More

Aban Offshore: Buy
More

Mundra Port and SEZ: Buy
More

Dabur Pharma: Sell in market
More

DSPML Top 100 Equity Fund: Invest
In a highly volatile market, with an uncertain short-term outlook, large-cap stocks offer a relative safe haven for investors. The large-cap oriented DSPML Top 100 Equity Fund is a good investment option on this score. The fund has generated ... More

Birla Cotsyn India: Avoid
More

DWS Alpha Equity: Hold
More

OUTLOOK
Index Outlook
It was the turn of the bear to thunder through the Indian stock markets last week sending stock prices and the indices tumbling to one-year lows. The tiny mid-week recovery was scuttled by crude prices that spiked above $140 on Thursday. The ... More

PEOPLE
Nuggets
David Dreman is a noted investor who is known for his contrarian investment strategies. In 1977, he founded the first investment firm, Dreman Value Management, Inc., and is serving as its president and chief investment officer. ... More






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