The Hindu Business Line : Sunday, July 11, 2004

Question 'n' Auto
I am planning to buy a bike. The options that I am considering are the Bajaj Boxer or the TVS Centra. However, since I have some problems on my right leg, I would like to have a self-start option retrofitted to the bike, which to the best of ... More

INSIGHT

Budget proposals — Managing investments made easy
YOU kept investing in 2003 when the market was going up. You sat on huge profits in January 2004. Though you may have been convinced that stock prices were overvalued, you were afraid to sell then, as you would ... More

Budget, revenues and profit growth
The targeted tax collection along with the possibility of a rise in interest costs do not augur well for profit growth of the order seen in the past two financial years. Assuming that earnings would grow in line with past average appears more prudent now. More

Beyond tax breaks on capital gains
FOR long- and short-term investors, Budget 2004 should be a cause for cheer. Yes, for every transaction put through on a stock exchange, a buyer will now have to fork out 0.15 per cent of the price to the government. ... More

Budget: A delicate balancing act
YOU have to grant it to the man. Given the pulls and pressures of a coalition that leans heavily on Left support, the Finance Minister, Mr P. Chidambaram, has managed to keep a delicate balance in his Budget. You can ... More

Let's walk the Budget
IN THE next seven months, you may have to spend at least 2 per cent more on whatever you buy, be it a car, a bottle of sauce or that fancy imported DVD. Your take-home salary has just reduced a bit more due to the new ... More

BUDGET

Reforms on track
THIS is a carefully thought out Budget with due consideration being given to the poor. The thrust on agriculture, housing and water management is evident and necessary. The proposed implementation of VAT, removal of ... More

ECONOMY

Constant inflation index notification
Cost inflation index for the year 2004-05 is notified at 480. The index is as shown in the Table.

BL Research bureau

MUTUAL FUNDS

Kotak Global India Fund: Hold
INVESTORS can hold on to their units in Kotak Global India Fund. The fund has turned in an impressive performance since its inception in January 2004. However, investors should evaluate the progress over the next year ... More

Budget and mutual fund investments — How to rejig your strategy
THE Budget makes several changes to the tax dispensation for mutual fund investments. Here is what the proposals mean for retail investors and how they may have to rejig their strategy for mutual fund investments: ... More

UTI Software Fund
While the net asset value of the fund has risen by 4 per cent over the month, the net assets of the fund have fallen by nearly 10 per cent. This outflow has occurred even as the fund turned in a positive return of 2.5 per cent over the quarter ... More

Fidelity Fund gets SEBI nod

Fidelity Fund Management, one of the world's leading financial services providers, has received an in-principle approval from SEBI for starting its mutual fund business in the country. The fund house hopes to start operations towards the ... More

STOCKS

Mahindra & Mahindra: Long-term buy
INVESTORS with a long-term perspective can consider taking exposures to the stock of Mahindra & Mahindra (M&M). At Rs 510, the stock is trading at a price-earnings multiple of 17 times its trailing per share earnings of Rs 30. M&M could be one of ... More

Satyam Computers: Buy
INVESTORS may consider taking an exposure in the stock of Satyam Computer Services. At Rs 308, the stock tradesi at a price-earnings multiple of 17 times its per share earnings of Rs 17.5 for 2003-04. On a relative ... More

Mico: Buy
MOTOR Industries Company, better known as Mico, would rank amongst the top portfolio picks from the auto-ancillary segment. The conservative dividend payout policy and the even more conservative accounting policy are ... More

Alfa Laval: Buy
EXPOSURE can be considered in the stock of Alfa Laval at Rs 470. The stock trades at 12 times the trailing 12-month per share earnings. Valuations look attractive as a bottomline growth of 15 per cent appears ... More

Swaraj Engines: Hold
SHAREHOLDERS of Swaraj Engines (SEL) can continue to hold on to the stock at the current price of Rs 316. The stock holds upside potential in the medium-term based on the prospects for the company this fiscal. The ... More

Nilkamal Plastics: Hold
INVESTORS can continue to retain their holdings in the stock of Nilkamal Plastics. The company makes moulded plastic furniture and crates. Its strong brand equity, stable demand for its products, wider geographical ... More

India Cements: Hold
SHAREHOLDERS of India Cements with a penchant for risk can remain invested in the stock as there is the possibility of gains linked to restructuring of ownership claims. Despite an improvement in operational parameters ... More

TAXATION

Budget and you — The road ahead for the taxpayer
It is, however, proposed to increase the tax and surcharge that is payable, by a further additional "cess" of 2 per cent computed on such tax and surcharge. This additional surcharge is also to be included while determining the rate at which tax ... More

Search for infrastructure investment to make the cap
I WANTED to invest Rs 30,000 in equity shares of a public company engaged in infrastructure development so as to be eligible for a rebate in respect of the investment. I invested Rs 10,000 in IDBI but could not find any ... More

Scalping the scalpers
THE proposal to introduce turnover tax in the Union Budget means that you will henceforth pay 0.15 per cent on the purchase price of stocks, equity derivatives and bonds. Students of economics will notice that such a ... More

TECHNICAL ANALYSIS

Near-term outlook remains weak
Preferred view: The movement in the index was in line with last week's expectations. After a sharp drop on the Budget day, the index staged an equally sharp recovery on Friday. The market action last week has not helped in resolving ... More

Pivotals waiting for a breakout
ONGC (Rs 670.6): The stock continues to oscillate within the confines of a narrow trading range. The price movement continued to be volatile during the week. This has made the task of analysing the near-term trend that much more ... More

Focus of the week
Cipla (Rs 230.1): The short-term outlook for the stock is bullish. A move to the Rs 255-Rs 260 range appears likely. A close above Rs 234 would confirm the possibility of the move to this target zone. Remain invested with a stop loss at ... More

Query Corner
I hold Wockhardt purchased at Rs 320 and Vardhaman Spinning purchased at Rs 138. Should I hold or sell? — Waheeda Wockhardt (Rs 265.6): The stock is ruling close to the support level of Rs 234-Rs 236 range. A drop below ... More

LIFE INSURANCE

SBI Life Money Back Plan
MONEY-BACK plans are among the more popular insurance policies. With the launch of its money-back plan a few days ago, SBI Life is the latest to join the list of insurance companies with such a plan in its portfolio. ... More

DEBT MARKET

A post-Budget view
While the absence of an increase in small-savings rate could be seen as a positive, it also means that rates are unlikely to fall further from current levels. More

DERIVATIVES MARKETS

Negative outlook for Nifty
AS expected, the market remained firm last week till the presentation of the Union Budget, and turned volatile after that. The introduction of tax on transactions on stock exchanges played spoilsport; this affected the trading volumes on Friday ... More

Check your cost now
THE Budget proposals to introduce a turnover tax on transactions is a blow to the traders in the futures and options market as the costs will rise sharply. This could lead to a decline in speculative interest, at least, in the near term. ... More

Do the derivatives

Options guide

Futures guide

GOVT BONDS

Budget of Bonds and Rates
THIS is a good Budget and has gone down a new and desirable path (if for a second you look beyond the discussion around the turnover tax). It has attempted to take reforms to the next level of the economy. The last few ... More

FIXED DEPOSITS

HDFC: Take cover under it
INVESTORS can park their money in the fixed deposit programme of Housing Development Finance Company (HDFC). The company's fundamentals are strong. The interest on deposits is eligible for deduction under Section 80 L ... More

INTERVIEW

`India can make steel much cheaper than China'
Tata Steel is reorienting its business strategy and is poised to enter a new growth phase, with its steel production capacity set to double to 7.5-8 million tonnes. Reinforcing his bullishness on the long-term prospects for steel, Mr B. ... More

PROMOTIONS & OFFERS

Fly Delhi-Mumbai at Rs 500

BOOKS

Greenmail is a form of blackmail
TRANSACTION is a stimulus plus response is how those groomed in TA-101 would aver, but the Finance Minister sees it as a good avenue for tax. As a prowling tiger he has struck securities transactions with a 0.15 per ... More

NEW PRODUCTS & SERVICES

Sumo Victa from Tata Motors

SBI Life's Money Back Plan

Maruti Udyog's new look Esteem

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Union Budget 2004-2005

Economic Survey 2003-2004

Railway Budget - 2004-05

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Mumbai Mosaic

Beyond tax breaks on capital gains

Budget and you — The road ahead for the taxpayer

Near-term outlook remains weak

Budget, revenues and profit growth

Budget: A delicate balancing act