The Hindu Business Line : Sunday, January 04, 2004

Equity outlook for 2004: Top fund managers cautiously exuberant
IT LOOKS as though there is no containing the party on Dalal Street. Equity analysts and market experts have been trying to caution investors, asking them to be careful investing in a market that had spurted about ... More

2003: `Dividend dogs' beat active funds
In 2003, a strategy of investing in high-dividend yield stocks forming part of BSE-100 delivered returns for the seventh year in a row. However, 2004 could prove to be tough year as high-dividend yield stocks have been marked up sharply. More

Hold on to those PSU stocks
STOCKS of public sector undertakings (PSUs) appear set for another good year, following a star turn in 2003. Disinvestment and enhancement of floating stock are likely to be the key drivers. This may lead to ... More

Software sector in 2004 — Gung-ho, but check the pulse
The software sector has ended 2003 on an optimistic note, but frontline companies will have to gear up for the challenges ahead. More

INVESTMENT QUOTIENT

Quiz

FINANCIAL SERVICES

Union Bank of India's bill payment service
Union Bank of India has launched `Union Billpay,' a utility bill payment service, through which customers can pay their insurance and mobile telephone bills. Two options are available for payment of bills — `autopay' and `onlinepay'. The ... More

TELECOMMUNICATIONS

Tata Indicom's CUG facility
TATA Indicom has launched "closed user group" (CUG), a facility that allows subscribers unlimited local call access to every other member within the defined user group, at a flat rate of Rs 50 per month. The CUG service ... More

MTNL's new WLL services
The Mahanagar Telephone Nigam has launched "Economy Plan," for its Garuda services with refurbished handsets at an equated monthly instalment of Rs 225 effective January 1. BL Research ... More

MUTUAL FUNDS

Index funds: Still the poor cousins
IF YOU believe that the Sensex or the Nifty are about to break from the past and sail ahead of their all-time highs, investing in index funds may appear to be a tempting prospect now. But one should first consider ... More

Templeton India Growth: Invest
IT may be better for risk-averse investors to hold off fresh investments in the equity markets at this juncture. But for those who are willing to assume a degree of risk, the Templeton India Growth Fund (TIGF) is among ... More

Alliance Equity: Book profits partially
INVESTORS in Alliance Equity Fund can partially trim exposures to capitalise on the rise of about 100 per cent in its NAV over the past year. Business Line had maintained a `hold' stance for much of 2003 on the ... More

Monthly Income Plans: Sell
INVESTORS in Monthly Income Plans (MIPs) can consider reducing their exposures. This recommendation will apply to MIPs such as Alliance MIP, Birla MIP, FT India MIP, Principal MIP, Prudential ICICI MIP, SBI Magnum MIP ... More

PruICICI Dynamic: More liberal expense structure
PRUDENTIAL ICICI has proposed to change the expense structure for the PruICICI Dynamic Plan. The revised recurring expense limit would be as permitted by the SEBI regulatory framework. Now it is 2 per cent. The change ... More

MFs: Quality disclosures needed
THE dawn of 2004 has the mutual fund industry in a particularly strong position. More investors are reposing faith in fund managers, particularly after the strong performance of equity and debt funds over the past ... More

UTI Petro Fund: Buy
INVESTMENTS can be made in the UTI Petro Fund. It offers a window to the oil, gas and petrochem sectors. The NAV is Rs 24.9. The fund managed by UTI Mutual has a good track record over the past three-and-half years. Its performance has been ... More

STOCKS

NIIT: Hold/Avoid fresh exposures
A good order pipeline and operational flexibility may be the beneficial fallout of the proposed demerger of the software solutions segment by NIIT. However, the learning solutions segment may continue to be a drag on valuation, says Krishnan Thiag arajan. More

ACC: Buy
EXPOSURES can be contemplated in the ACC stock. Improvement in profitability, driven by strength in prices and volume growth, and the scope for revenue expansion through acquisitions, point to room for valuation gains. ... More

Tata Coffee: Book Profits
INVESTORS can book profits in the Tata Coffee stock to capitalise on the sharp uptrend in its price over the past six months. The stock has appreciated by 115 per cent since Business Line's `buy' recommendation ... More

CRISIL: Hold
SHAREHOLDERS of CRISIL can continue to hold the stock. They, however, will need to nurse a long-term perspective for the stock to deliver returns that are commensurate with risk. Regulatory ... More

Ceat: Buy
LONG-TERM investors can contemplate equity exposure in Ceat. It is among the major tyre producers and has a presence across all major segments of the industry. The recent restructuring initiatives and the pick-up in ... More

Balaji Telefilms: Buy
INVESTORS with a penchant for high risk can contemplate exposures in the stock of Balaji Telefilms at Rs 108, especially on any declines. We have reconsidered our view on the stock. Having recommended a `buy' on the stock at Rs 52 and Rs 63 in ... More

TECHNICAL ANALYSIS

Firm undertone in Reliance, HLL
Wipro (Rs 1762.3): Though the stock managed to close above the positive trigger price of Rs 1750, it lacked the bullish momentum that was evident in the other index stocks. The near-term trend remains positive and a move to the Rs ... More

Query corner
I had bought Pfizer recently at Rs 454. Can you advise me whether to hold or sell at present levels? Would you recommend adding the stock at every decline? I do not mind holding on to this scrip for 2 to 3 years if the prospects in your ... More

Positive near-term trend
Preferred view: The market sentiment remained distinctly positive during the just concluded week. The New Year commenced on a very positive note for equities. The Nifty ruled firm as anticipated last week. The index managed to move past ... More

Focus of the week
Alok Industries (Rs 61.5): The stock has comfortably moved past the earlier mentioned (Edition dated November 2, 2003) target price of Rs 50. The near-term outlook remains positive and a move to the Rs 75-80 range appears likely. Remain ... More

CARS

Question `n' Auto
I plan to buy a car and my budget is Rs lakh. Can you suggest which car I should opt for? Should it be new or second-hand? Also, what finance options can I expect to find? The car is for family trips, and emergencies only. I commute to work by a ... More

Getting true value from used cars
WANT to buy a car and still be left with cash to deck it up with that Blaupunkt CD changer and alloy wheels that your neighbour has been flaunting? Then head to the nearest company-owned used-car dealer. Smart car buying really begins with ... More

LIFE INSURANCE

INSURANCE CORNER

LIC's Jeevan Akshay II
LIC's Jeevan Akshay II is an immediate annuity plan open to people between 40 and 79. On the payment of a fixed lumpsum at the commencement of the plan, one would start receiving the annuity on a ... More

HDFC Standard launches two plans
HDFC Standard has launched two products — HDFC Unit Linked Endowment plan and HDFC Unit Linked Pension plan. The unit-linked endowment plan comes with five options and allows the customer to choose the level of life insurance cover and ... More

ECONOMICS

What is current account surplus?
RESERVE Bank of India (RBI) statistics show that India has a current account surplus. But what does current account mean? We do business with other countries in goods and services and this is collectively called as ... More

STOCK MARKETS

Buy... buy... 2003
MOST equity markets across the world ended the year 2003 on a firm note, thanks to several feel-good developments at the regional and at international levels. Healthy US numbers: First to induce the positive sentiment was the US data on ... More

DERIVATIVES MARKETS

Positive sentiments underlie Nifty
ACROSS-THE-BOARD buying interest carried the Nifty to the above 1900 level. The weakness in the Nifty mid-week (down by 0.8 points on Tuesday) proved short lived. Riding on the smart gains of Reliance, ONGC and most PSUs, the Nifty has closed the ... More

Capital requirements
A clearing member (CM) is required to meet the base minimum capital (BMC) requirements prescribed by NSCCL before activation. The CM has also to ensure that BMC is maintained in accordance with the requirements of NSCCL at all points of time, ... More

Using futures/options
In the article dated 28/12/2003, you have said that on being assigned, one has to settle the difference in cash, as all contracts are cash settled on NSE. In cases where covered calls are written against the holding of shares, can the ... More

Options guide

CREDIT MARKET

Canara Bank launches `CanMahila loan'
Canara Bank has launched `CanMahila loan,' a new scheme to meet the financial requirements of women. Under this scheme, women aged between 18 and 55 years, (married or single, employed, self-employed or housewife) can take the loan to buy items ... More

FIXED DEPOSITS

Sundaram Finance: High on credit
THE fixed deposit programme of Sundaram Finance (SFL) is open for investment. The interest rates on offer are lower than other auto finance companies such as the Ashok Leyland Finance but higher than the bank deposits ... More

Central Bank's gesture to senior citizens
Central Bank of India has increased its interest rate by 50 basis points for senior citizens above 70 years, effective January 1. This means the senior citizens will now get one percentage point above the interest rate offered to other ... More

SBI cuts deposit rates
The State Bank of India has cut deposit rates on particular maturities by 25 basis points, effective January 1. The deposit rate for periods between one and three years is now 5 per cent. The interest rate for periods over three years has been ... More

INTERVIEW

`Integration critical in newly acquired units'
Emotional integration was also critical towards integrating these newly acquired companies. You cannot go into a company and be seen as only emphasising technology and intellectual integration because while there are brands, there are also customers and employees. More

INCOME TAX

Taxability of interest from your PF
WHERE an employee has interest from a recognised provident fund in excess of 9.5 per cent of the balance standing to his credit , it is understood that the same would be chargeable to tax. Will such interestqualify ... More

Preoccupied with a vacant house
I BOUGHT an apartment in July 2001. The possession of the apartment was given to me in June 2002. The property remained vacant from then until May 2003. I have taken a loan from HDFC for purchasing this apartment for ... More

BOOKS

Financial health is but balance-sheet deep
COMPETING with infiltrating terrorists, violent insurgents and backstabbing politicians are the shifty accountants when it comes to stories that hog the headlines. "The parade of catastrophic accounting scandals" never ... More

CARTOON