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Sunday, February 26, 2006

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INVESTMENT WORLD

INVESTMENT QUOTIENT


Investment Quiz
1. `Do No Evil' is the informal motto of which cutting-edge global player in information technology? 2. Name the two companies that were forced by SEBI to indicate in their offer document that there was insider/circular trading in the stocks? ... More

OPEN OFFERS


Unitech: Reject
Shareholders may reject the open offer made by Prakausali Investments to acquire 14.4 per cent stake in Unitech. Prakausali Investments, along with the persons acting in concert, at present holds 42.9 per cent of the equity. The offer ... More

AUTOMOBILES


Fitting A/c in Omni LPG will not be effective
I have purchased a Maruti Omni LPG van (company-fitted option), which runs on dual fuel and features a 50-litre LPG tank and a five-litre petrol tank. I want to know whether the small five-litre petrol tank can be replaced with the 36-litre ... More

INSIGHT


New Fund Offers — The money spinners
Quick deployment of assets and a freer hand in fund management could explain the strong performance of new funds. No single theme has, however, emerged a winner in the bull market over the past year. More

Bracing for Budget effect
We may be poised for a period of lacklustre price trends. To handle such a trend, it may be better to hedge risks by buying Nifty puts or short futures than bowing out of the equity space. More

Reliance Infocomm: Value likely on listing
Key indicators
Margins show improvement.
Balance-sheet sports a cleaner look.
Scope for new business initiatives.
IPO is imminent.
More

MUTUAL FUNDS


Franklin India Bluechip: Invest
Exposures may be considered in Franklin India Bluechip, as it may be an appropriate vehicle if the market goes through a lacklustre phase. It has an impressive track record over a long period, though there was evidence of a ... More

HDFC Capital Builder: Invest
Investors looking for a diversified fund with a subtle mid-cap tilt can consider investing in HDFC Capital Builder. After coming under the HDFC banner in 2003, the fund has shown steady performance. The change in strategy by focussing on mid- and ... More

UTI Mastergrowth: Hold
Investors in UTI Mastergrowth can retain their units in the fund. Over the years, UTI Mastergrowth has turned out to be a steady performer, its consistent showing continuing through 2005. In terms of returns, though, it ... More

Tata Equity Opportunities
Tata Equity Opportunities Fund aims at providing regular income and possible capital appreciation. Its strategy is to capitalise on opportunities offered by the equity market. We take a look at the churn in its portfolio between October 2005 and ... More

UTI MF launches UTI Contra Fund
Fidelity Fund Management has added two more fund managers to its team who will work along with Mr Arun Mehra. The new recruits are Mr Sameer Kulkarni, bond fund manager from Franklin Templeton to focus on debt and Mr Rajesh Singh from ... More

Too many new offers for comfort
I work as a lecturer in New Delhi. I have invested Rs 1.5 lakh in the following funds: SBI Magnum Midcap, SBI Multicap, Fidelity Equity, UTI Dividend Yield, UTI Equity Tax Saving Plan (ELSS), Tata Tax Saving Fund (ELSS), Tata Contra Fund and ... More

STOCKS


IVRCL Infrastructures: Buy
A robust order-book, pre-qualification for a wide range of infrastructure projects and expanding margins that lend earnings visibility make IVRCL Infrastructures & Projects an attractive option; buy with a one-to-two year perspective. The stock . More

Marico Industries: Buy
Skin care, hair care, salon services, grooming... Marico Industries has just the right businesses in its portfolio to capture the rising spend on lifestyle products by the Young Indian. With the company's growth rates already moving ... More

Rajesh Exports: Buy
The Rajesh Exports stock, which trades at 10 times its expected FY-06 earnings per share, could offer decent returns from current levels. The company's planned retail foray by end-FY-06 and the recent entry into branded jewellery, ... More

Tata Tea: Buy
Alagappan Arunachalam More

Savita Chemicals: Buy
Investors can consider taking exposure in Savita Chemicals (Rs 365), which quotes at about 10 times its trailing 12-month earnings. The company is likely to maintain healthy growth in its lubricants and transformer oil businesses ... More

TECHNICAL ANALYSIS


Nifty may head south — Indicators suggest negative bias
We expect the Nifty to exhibit weakness for the coming week, as indicators such as put/call ratio, implied volatility and cost of carry point towards such a trend. If the Nifty is able to sustain the current level and sweep past 3075-80, then ... More

Chart Focus
The stock was one of the star performers in 2005. After moving to a high of Rs 863 in December, the stock has been in a corrective phase over the past couple of months. This phase appears to have been completed at the low of Rs 665 recorded a few ... More

Index View
The market action was in line with expectations. The index dropped to the support zone of 2950-2960 that was mentioned last week. After touching a low of 2955, the index staged a recovery on Monday. Though there is still a case for a rally ... More

Reliance consolidates ahead of uptrend
The stock moved within the confines of the resistance level at Rs 705 and support at Rs 685, and failed to close beyond either of these levels. The price movement in the recent weeks suggests that the stock is in a consolidation phase and ... More

Query corner
I bought a huge quantity of VBC Ferro Alloys at Rs 194. Please advice whether to sell or hold these shares. M.M. Sikkandar VBC Ferro (Rs 120): Time and again we get to see investors holding on to their investment even after ... More

Outlook for large-cap stocks
Featured below is the outlook for a few large-cap stocks. We have received queries on these stocks from Shrikant, Satish S. Kkhadke, Nitin R. Kolhe, Kulwant Singh Nagpal, R.Sakunthala Premkumar, R.K.Gupta, A Mahendran and K ... More

CARS


`Innova'-ted for the customer
Anniversaries are a good time to go car shopping. Anniversaries marking milestones for the car itself, that is. With increasing price competition and new models, manufacturers often fall back on this oft-resorted-to marketing ... More

Wheels & Deals
If you thought hedging is only for investors and businessmen, think again. GM has come out with a win-win offer on its Chevrolet: You don't lose whatever the outcome of the Budget. If the excise duty is hiked, you get to save; if it is slashed, ... More

TWO/THREE WHEELERS


Chinese checker
Imitation, they say, is the best form of flattery. Or is it? Bajaj Auto is unlikely to concur with this after its recent discovery of a certain `Gulsar' brand from the Land of the Dragon zipping on the streets of Latin America. If ... More

STOCK MARKETS


Downside averaging
One of our clients has a typical trading pattern. He identifies a stock and buys the entire quantity on a single day. He buys more of the stock if it is likely to decline subsequently. The logic is simple. As you buy at lower levels, ... 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

INTERVIEW


Indian companies need to spot game-changing ideas
There are plenty of $30-200-million deals for application business and sustainable demand for the next three to four years. More

INCOME TAX


Taking stock of interest
I have taken a loan and invested the amount in stocks. Will the interest payment on the loan be allowed as a deduction in computing the capital gains when I sell the shares? I have taken a personal loan and given it as a loan to my wife and ... More

IPOS


Visa Steel: Avoid
Investors can give this public offer from Visa Steel a miss, as the risks outweigh the scope for capital appreciation in the medium term. Given the steep valuation, a high level of gearing and operational risks, the IPO may not ... More

RIGHTS ISSUE


BhagwatiAutocast: Avoid
Shareholders can avoid the Bhagwati Autocast rights, though it is being offered at a substantial discount to the market price, as the risks are high. Substantial earnings volatility across business cycles, the lack of an export market ... More

BOOKS


Getting inside the mind of the traders
To understand markets, try out, Traders, written by Mark Fenton-O'Creevy, Nigel Nicholson, Emma Soane and Paul Willman, from Oxford (www.oup.com). The book is based on a study, over three years, of more than a hundred ... More



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Pick a Winner Stock Market Contest

Top Stories
New Fund Offers — The money spinners


Nifty may head south — Indicators suggest negative bias

Reliance Infocomm: Value likely on listing

Indian companies need to spot game-changing ideas

Bracing for Budget effect

`Innova'-ted for the customer

In Focus

Infrastructure woes stare IT sector
IPO Scams
FDI in retail sector
Dynamic Tirupur
Surging Sensex
Gold scaling new highs
More

In Depth

Gender Justice
Simple Economics
Tax Talk
More

Looking back
Feb. 19-Feb. 25
Momentum wanes in the Nifty

`We will not be slicing and dicing the market with funds'
Mr Ajit Dayal, Director, Quantum AMC


Who pays for new fund expenses?

How new offers drive the growth engine

IPOs: Rich on listing, lacklustre later


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