The Hindu Business Line : Sunday, September 21, 2003

Obstacles to good financial reporting
COMPANY filings today contain more information than they have at any time in history. But when we talk about things like fair value or intangible assets, it is not entirely clear that we are getting good quality ... More

OPEN OFFERS

Godavari Fertilisers: Take the market route
Risk-averse: Sell in market
Others: Accept More

INDUSTRY ANALYSIS

Medium-sized software companies — Programming a revival
THE smiles are back. And the body language of key executives has turned more confident and the mood among employees relatively upbeat in select medium-sized software companies over the past six-nine months. For the ... More

Evolving business models
THE economic downturn in the US and Europe in the past two years has been a sobering experience for the software sector. After a consistent revenue growth of over 50 per cent during the bullish phase in the late ... More

Mapping the risks
FROM an investment perspective, investors have to be fully aware of the risk variables that dictate the valuation of medium-sized software companies. On a relative basis, frontline software companies are better ... More

INSIGHT

A market high on drugs
STOCK prices of pharmaceutical companies have had a scorching run over the past nine months, with 25 prominent players in different segments collectively registering a 78 per cent value increase in this period. The ... More

Pharma Stocks: Bounty of good returns
INVESTORS who shopped for pharma stocks early this year are sitting on a veritable bounty of returns. As the Table shows, an investment of Rs 100 in the set of 25 stocks considered for this analysis would have returned ... More

Expectations `peg' values higher
Robust earnings expectations are behind the price surge of a majority of stocks. In fact, the valuations of most stocks resemble those of growth stocks now. Conservative investors may find the associated risks unpalatable. More

Sterlite Industries: Shifting plans, confusing signals
Having rolled back its plans for the demerger of its copper business, Sterlite can create sustainable value by outlining a clear business model. which also encompasses Madras Aluminium, Balco and Hindustan Zinc. More

HPCL/BPCL privatisation — The SC verdict and after
The abrupt halt to the privatisation process brought about by the apex court has restored status quo in the oil industry. More

MUTUAL FUNDS

Franklin India Internet Opportunities: Pare exposures and switch
FRESH investments can be avoided in Franklin India Internet Opportunities Fund. Launched at the height of the bull-run in February 2000, its performance has been insipid. It has, however, recovered some of its losses in ... More

Prudential ICICI Income Plan: Invest
PRUDENTIAL ICICI Income Plan recorded an annualised return of 14.5 per cent in the last three years. Retail investors who propose to invest in just one debt fund can buy units in this plan. The fund may not be suitable ... More

PORTFOLIO TRACKER
Sundaram Mid-Cap: Pare exposures
INVESTORS, especially in the growth option, can consider cutting exposures partially in the Sundaram Mid-Cap Fund to lock into the gains of about 60 per cent in the NAV over the past year. The fund has capitalised on ... More

PORTFOLIO REVIEW
Magnum FMCG Fund: Pare exposures
INVESTORS in the Magnum FMCG Fund can cut exposures and switch to diversify funds with a good track record. The fund has turned in an unimpressive performance since its launch in August 1999. The recent run-up in the ... More

STOCKS

L&T: Cash in on the uptrend
SHAREHOLDERS of Larsen & Toubro can book profits to cash in on the 62 per cent rise its stock price over the past five months. Re-entry can be contemplated at lower levels or upon listing of the engineering sector company's stock. The rally in ... More

Carborundum Univ: A good value play
FRESH exposures can be contemplated in the stock of Carborundum Universal at the current price of Rs 180. The business outlook appears good due to the better growth prospects for its key product - abrasives - growing demand for ceramic ... More

Canara Bank: Buy
FRESH investments can be considered in the stock of Canara Bank. The stock is attractively valued compared to peers such as Punjab National Bank and Bank of Baroda. The stock trades at a price-to-earnings multiple of ... More

Chettinad Cement: Sell
SHAREHOLDERS of Chettinad Cement can cut exposures in the stock as the prospect of a further equity expansion looms. However, even the infusion of further equity is unlikely to make a major dent in its debt burden. ... More

Centurion Bank: Pare exposures
With substantial expansion in equity on the cards, the market capitalisation of Centurion Bank does not appear to be in tune with the size of the business or its prospects. Shareholders can, therefore, prune exposures to the stock, says < B>Suresh Krishnamurthy. More

Concor: Buy
FRESH investments can be contemplated in the Container Corporation of India (Concor) stock from a one/two-year perspective. Revenue and earnings growth rates could move to a higher level than the sub-15 per cent trend ... More

Dredging Corporation: Buy
INVESTORS can consider fresh exposures in Dredging Corporation of India (DCIL), a leading PSU engaged in dredging services for ports. The Government's thrust on port development enhances the scope for growth in the ... More

TECHNICAL ANALYSIS

Pare exposures in M&M
ITC (Rs 797): The stock moved in sync with expectations. It ruled weak and dropped to the projected target zone of the Rs 785-790 range that was mentioned last week. After dropping to Rs 770 on Thursday, it recovered sharply to close at Rs ... More

Weakness may persist on indices
Preferred view: The index ruled weak as anticipated and also broke the support level of 1330-1340 that was mentioned last week. Going by the recent price action, the downward correction does not appear complete as yet. The index is likely ... More

Query corner
Please advise me on the prospects of Hindustan Construction & Finolex Industries. — K.S. Hegde Hindustan Construction (Rs 77.4): The stock has been stuck in a trading range in the recent weeks. The overall outlook appears ... More

TWO/THREE WHEELERS

Questions `N' Auto
I WOULD like to buy a motorcycle for personal use. At the moment, I am trying to decide between two bikes — the TVS Victor and Hero Honda Splendor. My budget for the bike is not more than Rs 42,000. Which one ... More

HOUSING FINANCE

CHECK IT OUT

New housing loan norms for Central staff

LIFE INSURANCE

INSURANCE CORNER

Aviva's EasyLife Plus
`EASYLIFE Plus' is an endowment plan that allows you to accumulate a certain amount at the end of a specific term through regular savings and also provides life cover. The product provides an in-built ... More

STOCK MARKETS

Of chaos and complexity
STOCK market research has never been so esoteric. There are research papers that use high-level physics, such as quantum mechanics, to explain price patterns in the stock market. In this regard, there seems to be some ... More

Up `N' Down the Street

DERIVATIVES MARKETS

Positive undertone prevails
FUTURES' premium have reduced, open interest across September contracts have decreased with the exception of Nifty contracts and contracts on Oriental Bank, Dr Reddy, Reliance, Digital Globalsoft and Grasim. However, the put-call ratio levels of ... More

Using Futures/Options
A short position would mean that you are on the sell side and a long position is on the buy side. Only long in-the-money or at-the-money positions are exercised. # Short position cannot be exercised as a seller or writer of option; you ... More

Options guide

Futures guide

INTEREST RATES

CHECK IT OUT

RBI caps interest rates on NRE deposits

Corporation bank too cuts NRE deposit rates

GOVT BONDS

BOND WATCH
Bonds remain biddish
YIELDS remained tight week-on-week. The 10-year yield closed at 5.30 per cent, 4 bps lower than the previous week. The intra-week volatility was, however, high due to expectation of a liquidity problem relating to RIB repayment and news about the ... More

CREDIT CARDS & DEBIT CARDS

For motorists... Filling fuel is now on the cards, literally
"Cash or card?" cashiers ask, regardless of whether you are at a pharmacy or a petrol pump. Payment options, such as petro and co-branded credit cards, have opened new avenues for motorists to settle up ... More

FIXED DEPOSITS

Saw Pipes: Power in the pipeline
THE fixed deposit programme of SAW Pipes Ltd (SPL), a Jindal group company, is an attractive option for those with a penchant for risk. Given the company's strong fundamentals and attractive interest rate, an ... More

INCOME TAX

VRS optees are eligible for 89(1) relief
SECTION 88 has been amended by the Finance Act, 2003 to provide for a rebate in respect of tuition fee for education of the individual, the spouse or child of such individual or in case of HUF for any member of the ... More

RIGHTS ISSUES

TCM: Unattractive
SHAREHOLDERS of TCM can stay away from the rights offer. The company's financial position is weak (five consecutive years of losses) and the rights issue price of Rs 10 is higher than the current market price of Rs ... More

NEW PRODUCTS & SERVICES

CHECK IT OUT

Philips India launches new mobile phone
Philips India has launched Philips 530, a mobile phone that enables users to create and mix music. Users can now create their personal sounds on the phone, do real time mixing up to nine music tracks and store them as ring tones or SMS alerts. ... More

CHECK IT OUT

Hero Honda rolls out `Passion Plus'

Comments & Letters to the Editor to: bleditor@thehindu.co.in
Subscribe to: Business Line