The Hindu Business Line : Sunday, May 16, 2004

As China cold rolls economy... Indian metal makers feel the heat
THE stock price of Hindalco Industries, the non-ferrous metal powerhouse, has dropped by over 25 per cent since end-April and settled at Rs 890. Before this fall, the stock price had soared over the past year. Such a rise and fall is no ... More

Prolonged correction or reversal of direction?
With efforts on to cool the over-heated Chinese economy, there can be a severe slowdown ahead. This will lead to commodity inventory liquidation and depress prices temporarily. More

Staying invested, uncertainties and all
Uncertainties are a part of investing today. Staying invested through such uncertainties is the only option to make money in the current market situation. Exiting the equity market now does not appear prudent. More

Don't panic, there is much to look forward to
IS it a knee-jerk reaction? Or is there some justification in the fears of the financial markets over the statements of our could-be rulers on the economy? Investors are sure to be troubled by these thoughts over the ... More

MUTUAL FUNDS

HDFC Prudence: Invest
HDFC Prudence, a balanced fund, is a good option for investors who wish to build an exposure to equities over the long term, but do not wish to expose their investment completely to equity risks. The fund has an ... More

Templeton India Growth Fund: Invest
FRESH investments can be considered in Templeton India Growth Fund (TIGF), as the fund has an impressive track record. Investments may, however, be made in a phased manner, in the wake of the current uncertainty ... More

Fund Talk
I am new to mutual funds but want to invest in a suitable tax saving fund. How does Alliance Capital Tax Relief compare with other tax saving funds? I read that the fund has a good track record over six years, but has under-performed the index ... More

HDFC Top 200
FRESH exposures in the steel sector and enhanced exposures in the oil & gas sector appear to be the main changes in the portfolio of HDFC Top 200 in the last two months. The fund has added SAIL and Tata Steel to its portfolio, which together ... More

HDFC Mutual to launch diversified equity fund

STOCKS

Indian Overseas Bank: Buy
FRESH investments can be considered in the stock of Indian Overseas Bank (IOB). In terms of relative valuation parameters, the bank's stock is not undervalued; it is not richly valued either as it trades at a ... More

Monsanto India: Buy
INVESTORS with an appetite for risk can consider exposures in the Monsanto India stock, at its current price levels of Rs 1,243. The stock may appear expensive at a valuation of about 15 times its trailing 12-month ... More

Bombay Dyeing: Buy
FRESH investments can be considered in the Bombay Dyeing stock, which quotes at a price-earnings multiple of about 10 times. As the stock is likely to follow the current broad market trend, additional exposures can be ... More

IVRCL Infrastructures: Buy
FRESH exposures can be considered in the stock of IVRCL Infrastructures and Projects. The robust order-book position, continued focus on the water segment and the improving fundamentals augur well for the company's ... More

Bharat Forge: Buy
THE long-term prospects for Bharat Forge appear bright and investors can consider accumulating the stock. The factors in its favour are:

The breakthrough export order for passenger cars, which would show up in ... More

Eicher Motors: Hold
SHAREHOLDERS of Eicher Motors (EML) can continue to hold the stock at the current price of Rs 220.Subject to political stability and macro-economic indicators such as the continuance of the current high growth of the ... More

Two picks for the long term
LAST week's bloodbath in the market has laid low quite a few stocks that are fundamentally sound. These are stocks that deserve superior valuations but find themselves caught in the downward current in the market. These will be amongst the first ... More

TECHNICAL ANALYSIS

Reliance may seek lower levels
Wipro (Rs 1545.6): The price action in the stock was in line with expectations. As anticipated, the share price moved to target zone of Rs 1585-1600 and turned weak thereafter. The stock could move to the immediate resistance at the Rs ... More

Focus of the week
Neyveli Lignite (Rs 47.4): The near-term outlook for the stock is weak. A drop to the Rs 32-35 range appears likely. Existing holders may look for opportunities to reduce exposures. Only a move past Rs 74 would reinstate positive trend. ... More

Weakness to prevail
Preferred view: The market sentiment remained distinctly bearish during the week gone by. As anticipated, the index ruled weak and is now ruling close to crucial support level at 1570. A break below this level would result in a test of ... More

Query corner
Please let me to know the future prospects Gail. — Ramakrishna S. Bhat Gail (Rs 164.6): The near-term trend appears weak and a drop to the Rs 145-150 range appears likely. The stock could resume the uptrend after testing the ... More

CARS

Maybach: The palace on wheels
MAHARAJAHS who are tired of roaming around the hundreds of opulent rooms in their palaces, business tycoons holidaying in their ranches that rival small countries in size and Sheikhs who have struck it big with their barrels of black gold have a ... More

Question `n' Auto
I am 42 and have been driving a Maruti 800 for more than 16 years. The car I drive now is my second in 16 years. I am used to driving in a sporty fashion with appropriate gear selection and quick acceleration. Though my car is in a pretty good ... More

LIFE INSURANCE

LIC's Jeevan Sathi
LIC's Jeevan Sathi offers a single policy for a working couple that not only covers the lives of both the husband and the wife but also gives a lumpsum on maturity. Eligibility The ... More

STOCK EXCHANGES

NSE can become more cost-effective
AN interesting paper, though written sometime back, is "Policy Issues in the Indian Securities Market", by Ajay Shah and Susan Thomas. It finds a place in a 2004 publication of Oxford University Press, "Reforming ... More

DEBT MARKET

How to evaluate debt funds
RETURNS from our investments are only as good as the homework we do before we invest. Past returns, while giving us some idea of performance, are no measure of future returns that can be expected from an investment ... More

Yield curve flattens
With the rally in G-secs and the flattening of the yield curve, our funds have reduced their exposure to very long maturity. More

DERIVATIVES MARKETS

Derivatives taxability
TREATING income as from normal business is fiscally prudent. The Income-Tax Act does not have any specific provision regarding taxability from derivatives. The only provisions, which have an indirect bearing on derivative transactions, are ... More

Using futures/options
Kindly tell me as to how one can trade in futures and options from India and from abroad? Do I need to get in touch with the NSE or with the Indian brokers if I want to commence trade? You need not get in touch with the National ... More

Futures guide

Options guide

GOVT BONDS

On capital-indexed bonds
THE Reserve Bank of India (RBI) may soon issue capital-indexed bonds to raise money for the Government. What is this instrument? Suppose you invest in a one-year Government bond with a face value of Rs 100 carrying an ... More

FIXED DEPOSITS

Cholamandalam Investment: Vehicle of growth
THE fixed deposit programme of Cholamandalam Investment and Finance (CIFL) is open for investment. The interest rates are on a par with that offered by such auto finance companies as Lakshmi General Finance, but lower ... More

INTERVIEW

`There is potential for export of ethanol'
Riding the ethanol wave, Praj Industries, a Pune-based process equipment manufacturer, has almost doubled its revenues over the past couple of years to Rs 109 crore. With seven patents to its credit, its R&D division is focussing on clean ... More

INCOME TAX

Varied incomes, but worried about rebate
MY SOURCES of income are as given in Table 1. These incomes relate to the financial year 2003-04. All the incomes other than the salary income and interest on bank deposits are computed after allowing all permissible ... More

INVESTMENT QUOTIENT

Quiz

FINANCIAL SERVICES

Pension disbursement account from HDFC Bank
WORRIED about how to invest your retirement money safely and prudently? Fortunately, quite a few investment options are available to get the best out of your pension funds. The `Pension Disbursement Account' from HDFC ... More

BOOKS

Watching bazaar on TV is no homework
ARE you ready, not for wisdom of `Harvard Business School' but of `thousands of ordinary people who have successfully accomplished their own personal financial objectives, largely as do-it-yourself investors'? If yes, ... More

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