INVESTMENT WORLD
INSIGHT
Medium-sized software companies — Raising a stock of their own
WHEN the stock of Hexaware Technologies, a Mumbai-based medium-sized software company touched a 52-week high of Rs 501 last week, it went largely unnoticed by the investment community. Coincidentally, it came close ...
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Consolidation can pep up market
Within a week, there were talks of M&A activity in as many as five sectors of the economy. If the talk materialises into deals, they could act as a catalyst to galvanise stock prices.
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Mid-cap software stocks: A portfolio perspective
WHILE investing in the mid-cap software service companies, retail investors may need to keep two investment tenets in mind. First, the market has a low tolerance for earnings disappointment or downward revision in ...
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Divergent business models by medium-sized software companies
MEDIUM-sized companies have realised that there is a widening gulf between them and frontline companies, in terms of both revenues and post-tax earnings, and that playing catch-up with their frontline peers is a futile ...
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INDUSTRY ANALYSIS
Power: Reforms gridlocked in politics
THE year since the passage of the Electricity Act in June 2003 has been an eventful one for the power sector. The passage of the Act was seen as a major reform that would wipe clean the mess in the industry. ...
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Transmission bottleneck in power sector
The last eight years have seen the creation of 8,500 MW of inter-State transmission capacity, but there's way to go yet.
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Trading power on the lines
The take-off of power trading business is one of the few showpieces of reforms in the power sector.
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Delhi's discoms
IT IS now two years since the high-profile privatisation of the Delhi distribution circle, where the two heavyweights, Tata Power and Reliance Energy, partially own and operate the distribution companies (discoms). The ...
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MUTUAL FUNDS
Magnum Global Fund: Book profits partially
INVESTORS can use the recent improvement in its performance to book profits on part of their holdings in Magnum Global Fund. The fund, which went through a bad patch in 2000 and 2001, appears to have recovered over the ...
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PruICICI Tax Plan: Hold
INVESTORS can hold on to their units in Prudential ICICI Tax Plan. The fund has outperformed its benchmark the Nifty, both in bull and bear markets. Its performance in recent months, however, lags that of its ...
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PORTFOLIO MOVES
HDFC Capital Builder
THE stock of Balrampur Chini was the only addition to the portfolio of HDFC Capital Builder Fund in July. An exit from the stock of Strides Arcolab was the other major change in the portfolio. The fund has ramped up its holdings in the ...
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New scheme from Kotak Mahindra MF
STOCKS
Larsen & Toubro: Buy
AN investment with a one/two-year perspective can be contemplated in the stock of Larsen & Toubro. The stock has consistently traded at a price in excess of Rs 700 after the demerged engineering and construction ...
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Mahavir Spinning: Buy
AN investment can be considered in the stock of Mahavir Spinning. It has notched up smart gains over the past couple of months, there is, still, room for appreciation. As one of the larger producers and exporters of cotton yarn, Mahavir ...
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IVRCL Infrastructures: Buy
FRESH investment can be considered in the stock of IVRCL Infrastructures and Projects. The stock, which trades at 45 times its expected FY'05 earnings, is attractively valued. IVRCL derives its strength from water supply projects that offer ...
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Pantaloon Retail: Buy
Pantaloon is an aggressive player in the retail space, with a presence across multiple formats. The ability to repeat its strong performance across newer formats would determine its future growth.
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MRF: Buy
LONG-TERM investors may consider inclusion of MRF in their portfolio at the prevailing market price. The dominant position in the industry along with recent signs of improvement in performance and better business ...
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Nestle India: Pare exposures
ONE-OFF factors, such as the phase-out of tax holiday on exports and inadequate milk availability, may have had a hand in Nestle India's surprisingly bad numbers for the April-June 2004 quarter. However, the company is ...
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Vesuvius: Hold
SHAREHOLDERS can retain their holdings in the stock of Vesuvius India. Considering the company's robust growth prospects on the back of strong growth in the steel industry, its focus on selling refractories as ...
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Dewan Housing: Buy (High-risk)
FRESH investments can be considered in the stock of Dewan Housing, which trades at a price-to-earnings multiple of less than four times its per share earnings for the year-ended March 2004. The dividend yield, ...
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e-Serve: Bid at Rs 1,050
SHAREHOLDERS of e-Serve International may bid at Rs 1,050 to sell their shares to the Citigroup through the reverse book-building offer. The Citigroup has offeerd to buy out all the outstanding equity and intends to ...
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TECHNICAL ANALYSIS
Weak trend to persist
AS anticipated, the market sentiment turned bearish last week. After moving to the target zone of 1660-1670, the index turned bearish and closed at 1598.2. The near-term outlook remains weak and the Nifty is likely to drop to 1560-1570 ...
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Query corner
I bought IBP at Rs 530 and Alok Industries at Rs 63. What is the outlook in the near term? Should I hold them or sell? — M.A. Kumar IBP (Rs 544.5): The recent chart pattern indicates that the stock has marginal upside ...
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Focus of the week
Alembic (Rs 126): The stock was covered a few weeks ago. As mentioned then, the stock is on course to move to the target zone of Rs 130-Rs 135. Remain invested with a stop loss at Rs 110. Long positions may also be considered with a ...
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Gann's gyan on reading charts
W.D. GANN was one of the popular traders of 20th century. He was renowned for identifying changes in trends in terms of price as well as time. He maintained that future price trends would have a relationship with past price action. He also ...
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TWO/THREE WHEELERS
Yamaha Fazer: New Faze in the crowd
OF THE Japanese trio of bike manufacturers, it is a no-brainer that Honda is the most popular. Thanks to its extremely successful joint venture with the Hero group, Honda has managed to size up the Indian two-wheeler market like no other overseas ...
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Bike with better appearance
I am an IT professional planning to buy a bike for my daily commute of 20 km. My budget is about Rs 45,000 and I expect a mileage of around 60 kmpl. The aspects that I am looking for are low maintenance, safety and good looks. I am considering ...
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HOUSING FINANCE
Easy Fixed Plus
HERE is a product made for the compulsive saver. Birla Home Finance's "Easy Fixed Plus" has you saving to pay your home loan from Day One. What is more, the scheme of payment is such that you enjoy a substantial tax ...
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SMALL SAVINGS
EPFO pares interest rate
STOCK MARKETS
Inflation and stock prices
THAT Inflation affects our consumption pattern is known. But what is the relation between inflation and the stock market? Typically, higher inflation leads to lower equity values. Why? Take Reliance Industries. Assume ...
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DERIVATIVES MARKETS
Options guide
FIXED DEPOSITS
Jindal Stainless: Good for a year
THE fixed deposit programme of Jindal Stainless is open for investment. Investors can park their money in the one-year option, considering the company's strong fundamentals and the attractive interest rates. Longer ...
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INTERVIEW
`We are confident of making good calls consistently' — Mr Ajay Bagga, CEO, Kotak Mutual Fund
Fund houses roll out new products at regular intervals. If you are interested, a fund's name may not really give you a clear picture of how it plans to invest. In this column, we pose a few queries that you, as an investor, may want to ask a ...
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`Power transmission business is a natural monopoly'
Transmission systems are a vital link in power infrastructure; more so in India where generation capacities are distributed far away from consumption centres. Power Grid Corporation is the utility vested with the responsibility of building ...
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INVESTMENT QUOTIENT
Investment Quiz
INCOME TAX
Father worried about relief for VRS money
My father has retired under a voluntary scheme. He has claimed a sum of Rs 5 lakh as exempt under Section 10(10C). In respect of the excess compensation received over the sum of Rs 5 lakh claimed as exempt, under Section 10(10C), he has ...
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CO-OPERATIVES
RBI curbs on South Indian Co-operative Bank
BOOKS
We're in a secular bear market for the next 7 to 10 years
IN SOCCER, saving a goal is to leap where the ball comes hurtling. Just so in hunting and investing. "Every hunter knows that you don't shoot where the duck is, but where the duck is going to be," writes John Mauldin in ...
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NEW PRODUCTS & SERVICES
Plan 140 from BSNL
BSNL has launched Plan 140, a new scheme for its post-paid mobile subscribers in the Tamil Nadu circle. Under the scheme, local calls to mobile phones or landline will cost Rs 1.50 a minute. STD calls made to mobile ...
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`Easy Fixed Plus' from BHW Birla
New line of Ikon from Ford
Union Bank's insured recurring deposit
New plans from Hutch
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