INVESTMENT WORLD
INVESTMENT QUOTIENT
Investment quiz
1.Strategic financial investment by a couple of institutional investors in an Indian construction company, a couple of years ago, was a key turning point that led to a re-rating of the stock as well as the sector. Name the ...
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AUTOMOBILES
Karizma offers a sportier ride
I am interested in buying a powerful bike and a used luxury sedan. As for the bike, I am considering the Bajaj Pulsar 180 DTS-i and the Hero Honda Karizma. Since I own a 2001-year model Hero Honda CBZ disc brake version in Chennai, I ...
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WHEELS & DEALS
Honda lowers sedan prices
Honda has slashed the prices of the City ZX, the EXi and the GXi by Rs 2,000 and the City ZX VTEC by Rs 10,000. It has also reduced the price of its premium sedan Accord by Rs 15,000. However, Honda has raised the price of its SUV, the Honda ...
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INSIGHT
Budget and your investments — Sizing up the tax breaks
The message of the Budget is quite clear. Investment planning with an eye on the tax implication is now more important than ever to secure your finances. It is well recognised that strong economic growth does not automatically ...
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Balanced funds forced towards stocks
For balanced mutual funds, this is one Budget where the devil is truly in the detail. By tweaking the definition of equity-oriented funds to include only those funds that have invested at least 65 per cent of ...
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Profit growth: FM hopes for encore
Investors should stay invested in equities and avoid shifting from debt to equity now.
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SBI Mutual Fund: A smooth transition
In October-November last year, SBI Mutual Fund was in the spotlight due to the churn in its equity fund management team. The fund house lost its Head of Research, Mr Sandip Sabharwal, to a private equity fund and hired Mr Sanjay ...
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MUTUAL FUNDS
HSBC India Opportunities: Hold
Investors can retain their exposure in HSBC India Opportunities Fund. The fund has maintained a steady performance in the two years since launch. It has, however, sailed through a predominantly bull market and is yet to build a track ...
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Birla Dividend Yield Plan: Hold
Unitholders can retain their holdings in Birla Dividend Yield Plus as its focus on dividend-paying value stocks can help contain downside risk in a volatile market. As value funds follow a defensive investment strategy, their ...
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PORTFOLIO MOVES
Chola Global Advantage
In January 2006, Chola Global Advantage Fund had about 25 stocks in its portfolio and had increased its cash holding between October 2005 and January 2006; about 50 per cent of the net assets are invested in stocks with a market capitalisation of ...
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FUND TALK
Defensive tilt
Considering the present stock market conditions, with high valuation levels, which among these will be the best diversified equity funds to own? I am looking at Magnum Contra, PruICICI Discovery, Tata Equity P/E and Birla Dividend Yield Fund. ...
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STOCKS
Areva T&D : Buy
An investment may be considered in the Areva T&D stock at Rs.550. Our recommendation is underpinned by its solid performance over the past three quarters, a substantial expansion in profitability levels and the further scope for ..
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Era Constructions: Buy
Execution of contracts with better margins, entry into new segments and a rise in order-book position bring earnings visibility to the Era Constructions stock (Rs 278). The Budget, through its fund allocation, has further ...
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Balaji Telefilms: Buy
Balaji Telefilms is well-placed to remain one of the preferred picks in the entertainment sector. It is set to come out of a three-year period of stagnating revenues and sharply slipping margins. The company is likely to end FY-06 ...
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Bajaj Electricals: Buy
The stock of Bajaj Electricals holds potential for upside from the current levels. Our recommendation is based on the substantial growth potential for the company's engineering and projects business that caters to the power and the ...
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Automotive Axles: Buy
Investors can consider taking exposure in the Automotive Axles stock. With favourable trends in automobile offtake and new capacity, the momentum in earnings growth is likely to be sustained. The expected pick-up in export earnings ...
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TECHNICAL ANALYSIS
F&O OUTLOOK
Nifty may show weakness
Rise in open interest, volume put/call ratio
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Index outlook
The market sentiment was distinctly bullish during the week gone by. The sharp spurt on Wednesday and Thursday took everyone by surprise. The index dropped to the support zone at 3020-3030 and staged a recovery on Tuesday. The bullish trend ...
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An upside breakout imminent in Reliance
The stock price is yet to break out of the sideways consolidation phase. Typically, such a pattern is followed by a sharp move when the stock breaks out of the trading range. The recent price patterns indicate that a breakout on the upside and a ...
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Query corner
Sesa Goa (Rs 1,162): The outlook is positive and a move to Rs 1,275-1,300 appears likely in the short-term. Hold with a stop loss at Rs 1,130 for a portion of the holding and at Rs 1,050 for the balance. Take partial profits on the evidence ...
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SBI: Trend bullish
The long-term outlook remains bullish and the stock appears on course to move to the target zone at Rs 1,100-1,150. The short-term outlook is also positive and a move to Rs 920-930 appears likely. Shareholders may remain invested with a stop-loss ...
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Titan Industries: Long-term outlook positive
The price movement was in line with expectations. After an initial weakness, the trend turned bullish as the week progressed. The recent price patterns have confirmed the long-term positive outlook outlined last week. The stock appears on course ...
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Tata Steel: Long-term bullish
The short-term outlook, too, is bullish and a move to Rs 468-475 appears likely. Short-term traders may remain invested with a stop-loss at Rs 444. Fresh exposures may also be considered with the same stop-loss. Consider partial profit-booking ...
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Power plays
Should I hold or exit from Siemens bought at Rs 4,537 and BHEL at Rs 1,900? Rajesh, Shrihari Kulkarni Siemens (Rs 4,975): The company has been amongst the star performers at the stock market in the past few years. Despite the ...
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Satyam Computer: Near-term positive
The stock moved closer to the target zone of Rs 815-820 that has been mentioned in the recent weeks. After touching a high of Rs 811, the trend turned bearish since Thursday. The near-term outlook remains positive and a move to Rs 835-840 ...
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Infosys: Short-term outlook bearish
The short-term outlook remains bearish and a drop to Rs 2,700-2,710 appears likely. The stock could bounce back to Rs 3,150-3,200 if it holds above this support zone. A close below this support level would have negative consequences and could ...
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GlaxoSmithKline Pharma: Uptrend likely
After registering a peak at Rs 1,435 a few weeks ago, the stock has been in a corrective phase. The corrective phase took the shape of a "zig-zag" pattern in Elliott Wave parlance and a "bull flag" pattern in the traditional chart pattern ...
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Balrampur Chini: Upward move likely
After a sharp run-up in price in January, the stock has slipped into a sideways consolidation pattern in recent weeks in a corrective phase to the earlier rally. On completion, the stock is likely to see an upward move. A move past Rs 159 will ...
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CARS
Geneva Motor Show — A concept called Cliffrider
Droves of desi tourists are yet to arrive on their annual summer yatra to the land of pristine snow and soothing sights — Switzerland. The long Swiss winter shows no sign of abating and even as March ...
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THE BIG DEAL
Small wonder
Rarely has a single company benefited from a fiscal measure, as has Maruti from this year's Budget. A cut in the excise duty by eight percentage points and a liberal definition of what a `small car' is has given the company a distinct advantage ...
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How long is 'small'
The Finance Minister, Mr P. Chidambaram, and his ministerial team have chosen to define a small car for the purpose of excise duty cut as one whose overall length (size class) falls within 4,000mm . Another parameter that will ...
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STOCK MARKETS
Incremental sale method
Consider this. You hold 1,000 shares of Voltas, which you had bought at Rs 715. The stock then declines to Rs 580 and later climbs to Rs 785. You sell your shares at a profit of Rs 70 per share. In less than 12 trading sessions, ...
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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 ...
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INTERVIEW
Growth triggers are in place
We are strongly focussing on boosting productivity, services delivery and automating operations.
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INCOME TAX
Making sense of the Budget
What are the proposed amendments on the charge of Fringe Benefit Tax (FBT)? The Finance Act, 2005 saw the introduction of a new tax in the form of FBT. It is proposed to amend Section 115WB to provide that expenditure on distribution ...
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IPOS
Solar Explosives: Invest
Investors with a long-term perspective and seeking to diversify their portfolio to rake in the opportunities in the coal mining sector can consider investing in the initial public offering by Solar Explosives. Growth opportunities in ...
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Malu Paper: Avoid
Exposures may be avoided in the initial public offering of Malu Paper, as the scope for appreciation appears limited. We have not factored into our recommendation any gains on listing, which we believe may at best be modest. Malu ...
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Rohit Ferro-Tech: Avoid
Investors can refrain from subscribing to the initial public offer by Rohit Ferro-Tech. At the offer price of Rs 30 per share, the price-to-earnings multiple works out to 6-7 times its expected FY 07 earnings, on an expanded equity ...
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Gallantt Metal: Avoid
Investors can give this public offer from Gallantt Metal a miss, as the potential for capital appreciation appears low. The absence of a proven track record, the high level of debt financing, the low earnings visibility and the ...
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RIGHTS ISSUE
United Western Bank: Avoid
Shareholders may reject the rights offer from United Western Bank (UWB) at Rs 24, despite the steep discount to the current market price. The potential for the stock to generate returns commensurate with the risks appears weak. The ...
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BOOKS
This fish market will have you hooked
In the rarefied world of finance, the last person you may ever want to rub shoulders with is the fishmonger. Yet, off we go this week to a fish market: Pike Place Fish. It is in the "open air market located in the heart of Seattle, ...
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