The Hindu Business Line : Sunday, January 22, 2006

Texmaco: Buy
The stock trades at 20 times its FY06 per-share earnings. A substantial pick up in wagon demand, contribution from its steel foundry division (expected to go on stream in mid-2006) and the solid pick up in demand for its heavy engineering segment ... More

OPEN OFFERS

JMT Auto: Reject
SHAREHOLDERS can reject the open offer made by Bach and ChrysCapital for the shares of JMT Auto. The offer price at Rs 100 is unattractive as it is way below the market price of Rs 140. The former is at 13 times trailing 12-month per share ... More

AUTOMOBILES

WHEELS 'N' DEALS

Tata's XETA
TATA Motors has launched a new version of its small car. Christened Indica V2 XETA, the petrol-powered car with a 1.4-litre engine is said to deliver a mileage of 14 kmpl under standard test conditions. The XETA's engine, delivering 70 PS, is far ... More

INSIGHT

Dealing with fund manager churn
WITH India emerging as the hot new destination for global investors, the stock market is soaring. Investors have enjoyed a long, uninterrupted spell of breathtaking returns from their equity funds. But a buzzing ... More

Managers lost, and found
THERE'S not a single fund house that hasn't seen a reshuffle in its fund management team over the past two years. We talked to three fund-houses to find out how they have tackled attrition. SBI Mutual Fund: ... More

Profit from arbitrage in stocks
THE Web site riskglossary.com defines arbitrage as free lunch — a transaction that enables you to make profits without taking risk. It is rare to find potential for arbitrage transactions in an efficient ... More

Telecom battles just got bigger
HERALDING the next phase of robust growth, the mobile phone industry has notched four straight months of record subscriber additions. In December 2005, the GSM mobile additions at 3.2 million touched a new all-time high, topping three months of ... More

MUTUAL FUNDS

Tata Infrastructure Fund: Hold
INVESTORS can retain their holdings in the Tata Infrastructure Fund(NAV Rs.16.2). Fresh exposures to the fund can be avoided for now, as the fund is yet to notch up a track record, having been launched just a year ago. ... More

SPOTLIGHT
UTI Money Market Fund: Invest
REDEMPTIONS of India Millennium Deposits have taken out close to Rs 32,000 crore from the financial system. Supply and demand for money is finely balanced. Interest rates could go up sharply from present levels or stay ... More

Franklin MF suspends sale of India Prima scheme

Franklin Templeton Mutual Fund will suspend fresh sales under its Franklin India Prima scheme. The suspension is effective from February 4, 2006, for a period of six months. Investors can however redeem their investments at any time. ... More

TAXATION

Happy home renovating!
I HAVE taken a Rs 1 lakh housing loan and a further loan of Rs 40,000 for renovating the house. These loans are taken from a bank and the house is self-occupied. The repayments for the financial year 2005-06 will be Rs ... More

How is capital gain taxed?
I HAVE earned capital gains from sale of shares in the financial year 2004-05. How is the capital gain to be taxed? Ravi Singh Reply If the gain is long term and if securities transaction tax has been paid at the time of sale of the ... More

TECHNICAL ANALYSIS

Query Corner
What is the outlook for Jindal Stainless bought at Rs 115 and Hindustan Construction at Rs 125? — S. Nair Jindal Stainless (Rs 97): The outlook does not appear positive. There is a possibility of a drop to Rs 80-Rs 82 if the ... More

Positive outlook for Nifty
Preferred View: The market action was in line with expectations. The Nifty ruled weak initially and staged a recovery right at the support zone of 2790-2800 that was mentioned last week. After hitting a low of 2783, the trend turned ... More

Focus of the week
Nava Bharat Ferro Alloys (Rs 46.2): The share price was in a major uptrend that was completed at the high of Rs 91 in March 2005. The stock has been in a corrective phase. This corrective phase appears complete at the recent low of Rs 42. ... More

Upward trend likely in Reliance
Reliance Ind (Rs 704): The scheme of demerger took effect from Wednesday. The near-term outlook appears positive. A move to Rs 735-Rs 740 appears likely. The positive outlook would be negated on a close below Rs 685. Remain invested with a ... More

CARS

Driving through the Auto Expo
THE biannual Auto Expo in New Delhi, India's answer to the Frankfurt, Geneva, Tokyo and Detroit auto shows, has been a platform for some of the big car and bike launches during the past decade and more. Cars and bikes that have since redefined ... More

The hot spots
THE two most exciting stalls at the 8th Auto Expo were that of the Audi and Honda. Both had snazzy, hi-tech cars that were technology showcases, and also promising new cars that are likely to hit Indian roads later this year. Audi took the ... More

LIFE INSURANCE

Birla Sun Life SimplyLife
NEW product launches from private insurance players may no longer be a flurry as was the case a couple of years ago, but they have not completely died down either. This week, we look at the features of SimplyLife, Birla ... More

STOCK MARKETS

Portfolio Manager
Any person who pursuant to a contract or arrangement with a client, advises or directs or undertakes on behalf of the client (whether as a discretionary portfolio manager or otherwise) the management or administration of a portfolio of ... More

Tactical asset allocation
MY FRIEND is a discerning trader. He ruthlessly cuts his losses and rides his profitable positions well. Importantly, he successfully engages in tactical asset allocation. What is asset allocation? Most of us buy ... More

DERIVATIVES MARKETS

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

FIXED DEPOSITS

FD OPTIONS
Wheels India: Invest in 3-year option
Wheels India: An investment may be considered in the three-year FD option of Wheels India. The rate of 7.5 per cent on offer is attractive. Choose the cumulative option, as it would offer a slightly higher yield of 7.7 per cent. The ... More

INTERVIEW

"Policy changes will make subsidy more transparent"
Mr V. Ravichandran, President, Coromandel Fertilisers
GM crops have eliminated one kind of pest. In the natural order of things, when one pest is eliminated, there are always others to take its place. There has been robust demand for certain molecules alongside with the expansion in GM acreage. More

IPOS

Entertainment Network — Music to investors' ears
OUR recommendation for Entertainment Network is underpinned by the following factors: Benevolent policy framework: Radio Mirchi will now operate in a policy environment that is friendlier to private sector players in FM radio. The new ... More

Entertainment Network: Invest at cut-off
INVESTORS should bid for shares in Entertainment Network (India) Ltd, which owns and operates radio networks under the popular Radio Mirchi brand, as it is likely to be the premier listed play in the FM radio space for some years to come. The ... More

Jagran Prakashan: Avoid
The offer appears stiffly priced, even if we factor in the quantum rise in earnings this year. FIIs will be able to buy only up to 5 per cent of the company's equity as that would exhaust the permitted limit of 26 per cent. This could also cap the va luation of the stock. Given the political sensitivity of the FDI-in-print issue, we do not expect the limit to be raised in a hurry. More

Gujarat State Petronet: Invest
THE IPO of Gujarat State Petronet Ltd (GSPL) can be considered for investment with a two/three-year perspective. The returns on the investment being made by the company now in expanding its pipeline network will begin to be felt only from the ... More

RIGHTS ISSUE

Ceat: Invest
SHAREHOLDERS can sell their holdings in the secondary market and subscribe to the rights offer. To cater to the long-term working capital requirements, automotive tyre major, Ceat, is raising Rs 52.7 crore through a rights offer in the ratio of ... More

Pantaloon Retail: Invest
OFFERED at a discount of more than 60 per cent to the current market price of about Rs 1,600, Pantaloon Retail's rights issue provides shareholders the perfect opportunity to reduce their average cost of acquisition. With the offer proceeds, the ... More

Agro Dutch Industries: Invest
INVESTORS can subscribe to the rights offer from Agro Dutch Industries at Rs 25. The pricing is reasonable and may leave scope for capital appreciation over the next one-to-two years. The scaling up of capacities proposed in this project ... More

Dolphin Medical Services: Avoid
INVESTORS can give the rights issue of Dolphin Medical Services the skip. Though the issue is priced at a discount of close to 50 per cent compared to the stock's current market price, the manifold expansion in equity, competition in the ... More

Priyadarshini Spinning: Avoid
SHAREHOLDERS need not subscribe to the rights offer of Priyadarshini Spinning Mills (PSML). The offer price of Rs 25 is at a modest discount to the current market price. At this price, the offer is valued at about eight times its annualised per ... More

BOOKS

Miles to go in equity analysis
RAJESH Chakrabarti of Georgia Institute of Technology has analysed the Indian stock markets in his new book titled, The Financial Sector in India: Emerging Issues, from Oxford (www.oup.com). He ... More

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