The Hindu Business Line : Sunday, June 19, 2005

Dividend or growth option: No easy choice
"THE fund I bought five years ago has doubled in value over the past year. Should I book profits or stay invested?" This is a dilemma that investors in equity funds face quite often. Yet it is not easy ... More

Indexing boosts mid- and small-cap stocks
GROUP together a number of stocks, give that group a name and then wait for the stock prices to skyrocket. This happened in January when the BSE launched the Indonext platform and introduced the `S' Group stocks. It has now happened with ... More

Giving telecom the right policy push
Basic lessons from China
Policy-makers need to correct the skew between basic and mobile telephony and encourage greater competition if the basic-mobile gap is not to widen. More

OPEN OFFERS

Colour Chem: Accept at Rs 467.2/Reject at Rs. 318
THE Clariant group — promoters of Colour Chem — intends to acquire up to 20 per cent of the equity through the open offer. The offer is at Rs 318 per share. A section of the shareholders is entitled to an ... More

COURTS/LEGAL ISSUES

Bullocks are no milestones
ON SEPTEMBER 18, 2002, around 7 p.m. one Shekhar Basawaneppa Bodaki and his wife were returning home from their agricultural land in a cart drawn by two bullocks. Even as the cart trudged towards Hirebagewadi, duly observing traffic rules, a ... More

MUTUAL FUNDS

SPOTLIGHT

Sundaram SMILE: Hold
SUNDARAM SMILE, the fund that seeks to invest in leading small and medium sized companies, has out-performed the CNX Midcap 200 since its launch. This is a notable achievement as almost all mid-cap funds have struggled to beat CNX Midcap 200 ... More

Principal Resurgent India Equity: Hold
UNITHOLDERS of Principal Resurgent India Equity can retain their holdings. The fund, which invests in stocks of companies that are likely to benefit from turnaround or restructuring, has delivered good returns over the past year. Its return of ... More

FUND TALK
Why the NAV falls when dividend is declared
Every dividend from a fund correspondingly reduces the fund's net asset value as it represents an outflow from the fund. More

UTI launches Opportunities Fund

SBI Mutual has declared a dividend of 102 per cent for SBI Magnum TaxGain Scheme 1993. The record date for the dividend is June 10.

UTI Mutual has launched UTI Opportunities Fund. This will be available for subscription for ... More

STOCKS

Reliance Industries: Buy
AN investment may be considered in the stock of Reliance Industries, as there could upside potential over a one-year period. The nuts and bolts of the arrangement between the Ambani brothers may be settled over such a period and complete ... More

Gujarat Ambuja Cements: Hold
SHAREHOLDERS of Gujarat Ambuja Cements can remain invested, as there could be further gains linked to an improvement in fundamentals. There could also be an upward bias once the stock starts to trade on a bonus (one ... More

Satyam Computers: Buy on weakness
INVESTORS can consider taking fresh exposure in the Satyam Computers' stock on declines linked to the broad market. We are comfortable recommending the stock in the Rs 450 range, as this entry point has the potential ... More

Tata Coffee: Book profits
SHAREHOLDERS can book profits in the stock of Tata Coffee, which trades at a price-earnings multiple of 18 times its FY-05 earnings. This is substantially higher than the valuation commanded by other plantation companies. Interest in the stock ... More

GIC Housing: Buy
INVESTMENTS can be considered in the stock of GIC Housing Finance,which trades at a multiple of 6.5 times its earnings for FY-05. The stock also offers attractive dividend yield of about 3.5 per cent. Despite considerable improvement in the ... More

TAXATION

Tax on gains depends on the nature of transaction
I EARN by buying and selling of shares on the same day, buying and selling derivatives and from buying shares and taking delivery thereof and selling the same in less than 364 days. I pay securities transaction tax ... More

Taxed housewife
I AM a housewife. I do not have any income other than short-term capital gains from share trading. What will be the tax slabs at which I will be assessable? Am I eligible for tax rebate ? Shikha Ranjan Reply One thing that is not ... More

TECHNICAL ANALYSIS

Query Corner
Will it be advisable to enhance exposures when the stock declines so that the average price comes down? Earlier you had mentioned in your column that PNB Gilts will touch Rs 25-27 but it is hovering around Rs 18-19. Kindly advise on the ... More

Firm trend likely in the Nifty
Preferred View: The market action was in line with the view indicated last week. The trend turned positive after a test of the 2070-2080 range. Except on Thursday, the index managed to close on a firm note. The Nifty also managed to stage ... More

Bullish outlook for Reliance
Reliance Ind (Rs 600.9): The stock ruled firm as anticipated last week and moved comfortably past the target zone of Rs 575-580. The near-term trend remains bullish and the stock could move to the Rs 630-635 range. This move could be ... More

Focus of the week
Aftek Infosys (Rs 90.9): The stock appears to be headed towards higher levels. After having completed the corrective phase, the stock appears to have commenced the next leg of the upward move. The recent upward move could take the stock to ... More

TWO/THREE WHEELERS

Bajaj's confidence built in the Avenger
I AM planning to purchase a cruiser bike and the options available in the market seem to be too few. I am lean and 6 feet 3 inches tall. I am afraid that sitting on a short bike like the Bajaj Eliminator or the ... More

Bajaj cruises in with Avenger
WE Indians are very good at packing in the experience of an otherwise expensive product into one that is within our budget. Be it `Bollywood' and its world of make-believe or duplex apartments that give buyers the feel ... More

ECONOMICS

Market ecology
IF YOU actively trade in options, you may be aware of a few market intricacies. The traders, for instance, do not use valuation models to find out the fair value of options. Instead, they use a rule of thumb. If an option trades at more than 3 ... More

STOCK MARKETS

SEBI GUIDE
Nuts and bolts of allotment
A company making an issue to public can reserve some shares on "allotment on firm basis" for some categories as specified in DIP guidelines. Allotment on firm basis indicates that allotment to the investor is on firm basis. The SEBI guidelines ... More

DERIVATIVES MARKETS

Options guide

FIXED DEPOSITS

FD options
Cholamandalam Investment: The one-year fixed deposit programme of Cholamandalam Investment and Finance Company appears an attractive option. The company offers 6 per cent with interest being paid either quarterly or annually. To ... More

INTERVIEW

`We have contributed to the re-rating of construction stocks' — Mr. R. Balarami Reddy, Director of Finance, IVRCL Infrastructures & Projects
THE stock of IVRCL Infrastructures & Projects has been one of the star performers in the bull market of the past two years as construction sector stocks started to attract investor fancy on a scale never seen in the past. The Hyderabad-based ... More

IPOS

MSP Steel and Power: Avoid
AN INVESTMENT in the initial public offering (IPO) of MSP Steel and Power can be avoided, as the risks far outweigh the scope for returns, if any. Given the weak fundamentals, stiff valuation, a high level of financial ... More

RIGHTS ISSUES

Trent: Invest
SHAREHOLDERS can consider investing in the rights offer of Trent, which owns the Westside chain of departmental stores. The company is offering its shareholders one partly convertible debenture of Rs 900 and a warrant ... More

INVESTMENT QUOTIENT

Investment quiz
1) The European Aeronautic Defence and Space Company is the joint owner of one of larger companies in the world. It holds a stake of 80 per cent in this company and the rest is held by BAE Systems, the successor to British Aerospace. Which ... More

BOOKS

Towards the selectively open kimono
DEALING with financial markets absorbs on an average a fourth of the CEO's time, and almost a third of the CFO's attention, informs Mark C. Scott in "Achieving Fair Value," from Wiley (www.wiley.com) . The ... More

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