The Hindu Business Line : Sunday, May 23, 2004

Verdict 2004: Catalyst for a market makeover
MAY 1996: The election verdict had thrown up a hung Lok Sabha. Sensex shed about 3.5 per cent in the first ten days of the month and then moved sideways for the whole of May. The politics of coalition had taken ... More

Active funds teach a lesson or two
Mutual funds have once again lived up to their promise of beating their benchmarks in a market downturn. The mutual fund strategy over the last couple of weeks also highlights, for ordinary investors, the importance of hedging risks arising from even ts such as elections. More

Markets await policy direction
PHEW! What a week it was? Be it the merry go-round on the political front or the incessant gyrations of the stock market, it was, by any yardstick, a week with few parallels in Indian history. Clearly, the FUD factor ... More

MUTUAL FUNDS

Franklin India Prima Fund: Invest
THE recent drop in market levels has trimmed the valuations of a range of mid-cap stocks to more reasonable levels. Mid-caps hold better potential for higher returns than large-cap stocks; but come with higher ... More

Birla Equity Plan: Invest in small lots
INVESTORS may consider Birla Equity Plan as one of the options through which they can route their tax-saving investments this year. This ELSS (equity linked savings) fund carries a three-year lock-in period. The ... More

Kotak 30
A sharp surge in inflows is the key feature of the Kotak 30 equity fund in April. Compared with assets of about Rs 125 crore at end-March 2004, the corresponding figure at the end of April was Rs 173 crore, a jump of about 40 per cent. The ... More

Canbank Mutual to float CanIndex

Fundtalk

STOCKS

GlaxoSmithKline Pharma: Buy
GLAXOSmithKline Pharma (Glaxo) has turned in a robust performance for the quarter ended March 2004. On the back of a 21 per cent growth in its pharmaceutical business on a year-on-year basis (double the rate at which ... More

Picks for the patient investor
AFTER this week's carnage, the markets are likely to remain range-bound or move with a negative bias till policy-related uncertainties are put to rest. In this backdrop, investors may be better off staying away from sectors which are closely ... More

Balrampur Chini: Hold
RISING sugar prices and contributions from new facilities have helped Balrampur Chini Mills (BCML) turn in impressive numbers for 2003-04. After a sharp fall from Rs 440 levels, the BCML stock price has now edged up to ... More

Madhucon Projects: Buy
FRESH exposures can be considered in Madhucon Projects, a Hyderabad-based construction company. The company's robust order book position and its continued focus on road segment augurs well for its earnings growth. The ... More

Bharat Petroleum: Hold
BHARAT Petroleum Corporation's results for the fourth quarter of 2003-04 are largely in line with expectations. That is, after adjusting for the one-time income of about Rs 200 crore in the fourth quarter of 2002-03. ... More

Carborundum Universal: Buy
EXPOSURES can be considered in the Carborundum Universal (CUMI) stock. At Rs 241, the stock trades at five times its 2003-04 per share earnings. From a relative valuation perspective too the stock appears attractive. ... More

Tata Steel: Hold
SHAREHOLDERS of Tata Steel can hold on to the stock at the current Rs 328 level. At this price, the stock is trading at a price-earnings multiple of less than seven times. It is expected to follow the broad market trend ... More

CARS

Question `n' Auto
I plan to sell my Maruti Esteem and buy a new C-segment sedan. The main pointers that I am looking for in the new car are trouble-free running (low maintenance cost), stability and safety, high seating position and a spacious and comfortable ... More

LIFE INSURANCE

Birla Sunlife's Classic Life
BIRLA Sunlife Classic Life is a market-linked savings-oriented plan. Though similar to other plans available in the market, it is better suited for high net worth individuals. The high minimum premium and the sum ... More

STOCK MARKETS

Margin calls and stock prices
MARKET participants attribute margin calls as one of the reasons for the sharp fall in the market on Monday (May 17). What is margin call? Suppose you offer a portfolio worth Rs 1 lakh as a collateral to borrow money ... More

Sensex tumbles
IT happened for the first time in the history of Indian stock markets. The sharpest single-day loss was followed by the highest intra-day gain on the stocks markets. As the stock fundamentals took over the sentiment of investors, most stocks were ... More

DEBT MARKET

Credit Policy's impact on debt market
THE growth-oriented Credit Policy was more or less along expected lines and is a reiteration of the last year's policy. As expected, the RBI left the key rates unchanged and has struck a cautious note on inflation in ... More

DERIVATIVES MARKETS

Volatile condition may remain
THE fear of unstable government coupled with high volatility left many market participants stranded on the NSE during the week. The average daily turnover at the futures and options segment on the NSE dropped viciously to Rs 7,628 crore ... More

Using futures/options
On going through the quotes particularly in ONGC, I have noticed the following: Cash/spot price of ONGC is Rs 705; May futures price of ONGC is Rs 709; June futures price of ONGC is Rs 707. If I buy June futures and sell May futures (profit ... More

Who should trade in Options?
INVESTORS belonging to the following categories, depending on their financial goals and investment objectives generally consider trading in options.

Investors who want to participate in the market without trading or holding a large stock ... More

Futures guide

Options guide

FIXED DEPOSITS

SIDBI: Interesting offer
THE fixed deposit programme of Small Industries Development Bank of India (SIDBI) is open for investment. The interest rates on offer are 25-50 basis points higher than that offered by banks. Investors with a ... More

INTERVIEW

`Low linkages to China make Indian markets attractive'
AFTER stints at Citibank, Pioneer ITI and SBI Cards, Mr Ajay Bagga, the newly-anointed CEO of Kotak Mutual Fund, appears to be at ease with the ups and downs of both the stock and debt markets. Business Line met up with him practically in ... More

`Products should sell across bank counters too'
When a venture has the backing of the banking behemoth State Bank of India, it should, by no means, be reckoned a lightweight. SBI Life, the insurance venture between SBI and Cardiff, is no exception. Riding on the back of its clout in the ... More

INCOME TAX

Sale to wife of father's land, for a house to build
I HAVE inherited a piece of land from my father. I intend to sell half of it to my wife. We then propose to apply for a loan jointly for construction of a house. Both of us have income chargeable to tax. Can we claim ... More

One house too many
I OWN more than one house property. Can I claim the interest in respect of the housing loan for each of the properties as a deduction? Will the principal repayment on the housing loans for each of the properties qualify ... More

INVESTMENT QUOTIENT

Investment Quiz

FINANCIAL SERVICES

How to bank through the Net
ALOK reaches his office at 9 a.m. He has a meeting at 9.30. But before that, he has to send money to his father, pay his credit card and telephone bills and also update himself on what stocks his wife has bought. Can he do all this in ... More

Stanchart's `Parivaar' savings account
A FAMILY outing to the bank? Not so outlandish, if you open the "Parivaar" savings account with Standard Chartered Bank. The advantage of the product is that the quarterly minimum ... More

BOOKS

Straight from Satan
OVER the past few days, markets have earned many epithets, ranging from rubble to bubble, from handiwork of manipulators to numbers of irrelevance. For some, Sensex is the Satan's apple one should keep away from. Now, ... More

CARTOON