The Hindu Business Line : Sunday, October 24, 2004

Equity fund performance: Absolute returns may be misleading
MENTION UTI Mastergrowth and it is quite likely you will not recall the scheme being part of any list of top performing equity funds. Yet, in terms of risk-adjusted returns, UTI Mastergrowth is up there with the ... More

Templeton India Growth Fund: Invest
INVESTORS with a long-term perspective can contemplate investments in Templeton India Growth Fund (TIGF). Though its performance has trailed that of other diversified equity funds in the past year, the fund has, ... More

SPOTLIGHT
UTI Petro Fund: Hold
INVESTORS in UTI Petro can stay with the fund, while fresh exposures can be avoided. The risk to our recommendation would be any move by the government to require oil companies to bear a higher share of the deficit than ... More

EQUITY OUTLOOK
Kotak Mutual
ALL tax changes relating to capital market came into effect from October 1, 2004. The imposition of transaction tax and changes in capital gains tax will have far-reaching implications on the Indian capital market. ... More

Reliance launches two schemes for NRI

Birla Sun Life Mutual Fund has acquired the rights to manage the funds of Alliance Capital Mutual Fund. The deal with Alliance will help Birla Mutual's asset base cross Rs 10,000 crore.

Franklin Templeton has proposed a dividend ... More

AUTOMOBILES

Question 'N' Auto
I want a bike with loads of performance and good riding comfort for long weekend trips. I have two bikes in my mind — the Bajaj Pulsar 180 DTSi and the Hero Honda Karizma. Is the Rs 11,000 premium over the ... More

INSIGHT

Readymade garments — Making the right designs
READYMADE garment is really becoming big business. With the quota regime on textiles and clothing set to go in 2005, the garment industry should get greater access to international market. The domestic market too ... More

FDI: Benefits will flow only with open, consistent policy
IN YET another reaffirmation of the reformist credentials of the UPA Government, the Union Cabinet hiked the FDI (foreign direct investment) cap on domestic private airlines from 40 per cent to 49 per cent last week. ... More

Profit-booking will enhance returns
Over the past seven years investors have had to contend with large losses and large gains. This indicates that the need to book profits is as important as staying invested through a bearish phase. Such a strategy will enhance returns. More

STOCKS

Looming risk of rising crude prices
THERE has been a smart rally in equities over the past couple of months, with mid-cap stocks at the forefront. The large-cap stocks joined the rally at the end. The rally has been driven by liquidity boosted by FII participation and robust ... More

Indian Petrochemicals Corporation: Hold
IT HAS been a roaring first half of 2004-05 for Indian Petrochemicals Corporation (IPCL) with post-tax earnings, at Rs 261 crore, almost trebling compared to the first half of last year. The first half profit is almost ... More

Ranbaxy Laboratories: Hold
SHAREHOLDERS of Ranbaxy can retain their holdings in the stock. Though the current valuation may appear rich, Ranbaxy does represent one of the better plays in the generics market of the US and Europe, given its robust ... More

Everest Industries: Hold
SHAREHOLDERS can retain their holdings in the stock of Everest Industries (formerly Eternit Everest). The steady growth prospects in the asbestos cement sheets industry, the company's focus on the non-asbestos segment ... More

Omax Autos: Hold
TAKING into account the buoyancy in the automobile industry and the initiatives recently undertaken by Omax Autos, the long-term growth prospects appear encouraging. Shareholders may hold the stock and use price ... More

TAXATION

Tax benefits for housing loans
I HAVE taken a 15-year housing loan. The loan amount is Rs 3 lakh and I pay a yearly EMI of Rs 35,000. I would like to know what are the tax benefits that I can get? Navin Reply The principal repayment will ... More

TECHNICAL ANALYSIS

Weak trend in the offing
Preferred View: As anticipated, the market sentiment remained bearish. Except for a strong rally on Tuesday, the Nifty ruled weak in the remaining three days of the week. As observed in earlier weeks, the 1830-level is a crucial ... More

Reliance may seek lower levels
Reliance Ind (Rs 538.9): The stock ruled firm in the early part of the week and turned bearish in the last couple of trading sessions. The weakness in the stock was instrumental in imparting a bearish sentiment to the market. The near-term ... More

Focus of the week
Chennai Petroleum (Rs 215.9): The stock appears to be headed towards the Rs 235-240 range in the near term. A drop below Rs 193 would negate the positive outlook. Shareholders may remain invested with a stop-loss at Rs 193. Fresh buying ... More

Query Corner

TWO/THREE WHEELERS

Cometh the hour, Comet the bike
PASSION is beyond reason, beyond common logic and all-consuming. At times, it evokes a kind of, if we may borrow the term from the US Fed Chief's dictionary, irrational exuberance. In the world of performance biking, ... More

LIFE INSURANCE

Tata AIG Starkid child endowment plan
WITH the birth of a child come responsibilities for parents. The burgeoning cost of education make it imperative to secure the financial future of the child especially if an unfortunate development were to befall the ... More

ECONOMICS

What comparative advantage?
IN A recent paper in Journal of Economic Perspectives, Prof Paul Samuelson has suggested that the US may be actually losing because of globalisation. This conclusion goes against one of the greatest theories in ... More

DERIVATIVES MARKETS

Negative bias seen on Nifty
TRADING activity was relatively on low key at the derivative segment on the NSE last week despite it being the penultimate week for the settlement of October contracts. Even, the roll-over of positions from October to November contracts was ... More

Using Futures/Options
The National Stock Exchange (NSE) does not put out statistics on put-call ratio. You would have to get that from some of the other Web sites such as indiainfoline.com that track the market. Or, you can read Business Line on Sundays ... More

Futures guide

Options guide

INTERVIEW

`Branded apparel can be priced lower' — Mr Darshan Mehta, President, Arvind Brands
These are exciting times for the readymade garment business. Arvind Brands, which owns brands such as Arrow, Lee, Wrangler and Newport, is certainly in the thick of all the action. Mr Darshan Mehta, President of Arvind Brands, with experience ... More

RIGHTS ISSUES

CESC: Invest
INVESTORS can subscribe to the rights offer of CESC at Rs 60 per share. At the offer price, the stock trades at four times its trailing 12 month per share earnings. The company is expected to post good earnings ... More

Futura Polyesters: Avoid
SHAREHOLDERS of Futura Polyesters can give this rights offer the go by. The company has posted losses in the last two years — 2002-03 and 2003- 04 — and has defaulted on the repayment of loans. Margins in ... More

GIC Housing: Invest
The rights offer valuation is not demanding. A price-to-earnings multiple of less than three and a dividend yield of about 8 per cent will give decent returns even if the profit grows in single-digits. More

BOOKS

Eight ways to get kismet smile at you
TO get money, you pray for luck, as when faced with exams. But "most lucky people are not lucky at all, they simply create their own luck," says Susan RoAne in How to Create Your Own Luck from Wiley ... More

CARTOON