The Hindu Business Line : Sunday, January 16, 2005

Equities for the long term
Allocating more than 30 per cent of your portfolio to equities is not recommended now. Such a proportion would be justified only if the volatility of returns from debt increases considerably. This is likely when administered interest rates are cut sh arply. Till then, a dominant part of your long-term portfolio should be invested in small-savings schemes. More

RBI Governor did not link FIIs and volatility
The impression created after the RBI Governor's speech last week is that the stock market is very volatile, FII flows are the reason and capping FII flows would reduce volatility. The truth, however, is that Dr Reddy did not even hint that FII flows are leading to stock market volatility. More

AUTOMOBILES

AUTO TECH

Crumbling in, for your safety
THESE are extraordinary times for the automobile industry. Despite its chequered history, replete with great advances, the automobile industry globally (and that includes India) is undergoing a transformation never seen ... More

MUTUAL FUNDS

HDFC Prudence: Invest in small lots
HDFC Prudence, the balanced fund from the HDFC stable, has regained its place among the top performing balanced funds over the past year with returns of about 17 per cent. Given the fund's impressive five-year ... More

HSBC Equity: Invest in small lots
AN INVESTMENT may be contemplated in the HSBC Equity Fund as it continues to remain one of the superior performers. It has an impressive track record since its launch in December 2002. The portfolio as of end December ... More

Franklin Templeton launches Franklin India Flexi-Cap

STOCKS

Century Textiles: Long-term Buy
AN investment can be considered in the stock of Century Textiles with a one-to-two year perspective as its profitability and scale of earnings could improve. Its revenues and earnings are dependent on the cement and textiles business. These ... More

NDTV: Hold
SHAREHOLDERS of New Delhi Television Ltd (NDTV) can remain invested, as there could be a scaling up of revenues and earnings over a one/two-year period. The recommendation is also underpinned by our positive view on ... More

Exide Industries: Hold
HELPED by the robust demand from the automobile segment, battery major Exide Industries recorded a 28 per cent growth in turnover for the quarter ended December 2004. As the leader in the original equipment market of ... More

Rajasthan Spinning: Hold
SHAREHOLDERS can hold on to the stock of Rajasthan Spinning. One of the larger players in the blended yarn segment, the company has been on an aggressive expansion and modernisation drive in preparation for the ... More

Pidilite Industries: Hold
SHAREHOLDERS can retain their holdings in the Pidilite stock, which trades at about Rs 390. Business Line had a `buy' recommendation outstanding on the stock when it was trading at the Rs 220 level. Since ... More

TAXATION

Weighed down by tax in securities transactions
I HAVE purchased and sold some shares. On all transactions of purchase and sale, I am charged a service tax and also a securities transaction tax. The service tax also includes a component towards education cess. The ... More

TECHNICAL ANALYSIS

Weakness ahead in Reliance
Reliance Ind (Rs 513.4): The stock is yet to close above the crucial positive trigger level of Rs 548. Though it did move past this level on Monday, the break was not too convincing and the stock closed on a weak note at the end of the ... More

Nifty breaches key support levels
Preferred View: The index ruled weak as anticipated. The expected short-term bounce ahead of the downtrend did not, however, materialise. The sharp decline witnessed during the week resulted in the breach of key support levels. In ... More

Focus of the week
Andhra Sugar (Rs 139.4): A move to the Rs 155-160 range appears likely. The stock appears to have completed the downward correction and the next leg of the rally appears underway. Hold with a stop-loss at Rs 125. Fresh buying may also ... More

Query corner
Shall I hold or sell Cipla (bought at Rs 320) and Mcdowell (Rs 146)? — S. Gomathi Cipla (Rs 265.7): The outlook for the stock has been covered in recent weeks. The price breached the stop-loss level of Rs 272 (mentioned in ... More

TWO/THREE WHEELERS

How the 150cc models stack up
I HAVE been riding the Yamaha RX 135 for three years. I now plan to sell the bike and am looking at purchasing either the new Bajaj Pulsar 150 DTS-i or the Honda Unicorn. What will you recommend? Rajesh ... More

ECONOMICS

Costs when you `hold'
ALL of us are familiar with buy and sell recommendations given by equity analysts. Often, we come across a "hold" recommendation. Some argue that such a recommendation goes against the opportunity-cost principle in ... More

DERIVATIVES MARKETS

Futures guide
Futures: A futures contract is an agreement between two parties to buy or sell an underlying asset at a certain time in the future at a certain price. It has standardised date and month of delivery, quantity and price. Spot price: ... More

Options guide
Call option: A call option gives the buyer `the right but not the obligation' to buy the stock at a specified price on a future date. Put option: A put option gives the buyer `the right but not the obligation' to sell a stock ... More

Further downside in Nifty likely
THE selling pressure continued for the second consecutive week and with the foreign institutional investors joining the bandwagon, it was a free fall for the benchmark indices. FIIs' open interest position dropped sharply in the Index futures ... More

Derivative contract
THE Standing Committee on Finance, a Parliamentary Committee, at the time of recommending amendment to Securities Contract (Regulation) Act, 1956 had recommended that the minimum contract size of derivative contracts traded in the Indian ... More

FIXED DEPOSITS

FD OPTIONS

Options for a year
Jubilant Organosys: Investors can consider the fixed deposit programme of Jubilant Organosys for a one-year lock-in period. The minimum deposit is Rs 10,000 and both cumulative and non-cumulative options are available. The company ... More

INTERVIEW

"We need more Rs 1,000-crore-plus funds"
"Fund size tends to grow with the markets. If you want the equity cult to grow in India, you cannot have limits on fund size. I would say that the number of Rs 1,000 crore funds needs to expand. If we have ten funds of this size, then funds will have a greater influence on the stock markets." More

INCOME TAX

Tax relief for contributions to tsunami relief
THE CBDT has issued Circular No. 6 of 2004 dated December 6, 2004. Through this circular, the CBDT has clarified issues relating to tax deduction at source from salaries for the financial year 2004. The salient ... More

PUBLIC OFFERS

Swaraj Mazda: Accept and buy at lower levels
THE open offer being made by CDC Agribusiness Management Ltd and the South Asia Regional Fund is a good opportunity for shareholders of Swaraj Mazda (SML) to book profits if they have not already taken advantage of the ... More

Jaipur Polyspin: Accept
SHAREHOLDERS of Jaipur Polyspin can tender their shares to the offer made by its acquirer, Rajasthan Spinning. The recent run up in the stock price was mainly due to the open offer rather than any change in ... More

Blue Dart: Accept
SHAREHOLDERS of Blue Dart can consider tendering their holdings in Blue Dart as part of the open offer being made by DHL Express (Singapore) Pte. Limited (DHLSG), at Rs 350 per share. There is the possibility of a ... More

RIGHTS ISSUES

Dewan Housing Finance: Invest
AN investment in the rights offer of Dewan Housing Finance can be considered. The offer is being made at Rs 35 per share. The offer price is almost the same as the market price as well as the book value of the ... More

BOOKS

Older the things get, the more interested he is
A trader is likely to have an addictive personality, who prefers games of luck over games of skill. More

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