The Hindu Business Line : Sunday, April 09, 2006

OCL India: Buy
Prospects for OCL India's cement and refractory businesses appear bright. Buy this small-cap stock with a two-to-three year perspective. OCL India appears well placed to benefit from the favourable industry dynamics in the cement sector. It ... More

Mphasis BFL: Hold
Offer aims to avoid the Oracle experience
Synergy benefits likely to be significant
Prospect of offer price revision
Critical offshore presence for EDS
Downside if EDS does not get 52 per cent and dumps the bid More

Greaves Cotton: Buy
Restructuring process close to completion.
Reduction in financial risk
A sharply focussed business profile
Broader range of products
Set to benefit from infrastructure/rural thrust. More

INVESTMENT QUOTIENT

Investment Quiz
1. Name the private equity investment firm that made a pile buying into Bharti Tele-Ventures several years ago ahead of its IPO. It completed its exit last year with gains in excess of $1.5 billion. 2. ... More

TELECOMMUNICATIONS

THE BIG DEAL
Battle for an `Idea'
The bitter battle that has been brewing between the Tatas and the Birlas over the ownership and control of Idea Cellular appears to be approaching a final solution. With the Tatas considering Malaysia's Maxis Communications as a `preferred ... More

AUTOMOBILES

It's worth waiting for new Palio
I am planning to buy my first bike and am convinced that it should be a Hero Honda product. My priorities are good looks, safety, easy maintenance and high mileage. I had earlier decided to buy the Hero Honda Splendor+, but after the launch of ... More

WHEELS & DEALS
Platina from Bajaj
Bajaj Auto on Saturday launched a new entry-level bike, `Platina,' starting at Rs 34,000 (ex-showroom Delhi). The new 100cc bike comes in two versions with the low-end one priced cheaper and the high-end version with alloy wheels priced at Rs ... More

INSIGHT

Break-ups create wealth
While spin-offs do create value for shareholders, gains were sustained over a long term where resources were unlocked for the company as well. Restructuring through de-mergers and spin-offs unlocks significant value for shareholders. In nine out of a sample of ten companies studied by Business Line, significant value was unlocked for shareholders, with returns ranging from 20 per cent to 200 per cent. More

MUTUAL FUNDS

HDFC Long Term Advantage: Invest
Though there has been a slackening in the fund's performance over the past six months, exposures may be considered based on its track record. More

PruICICI Dynamic: Invest
Over 60 per cent of the assets are invested in stocks with over Rs 2,000-crore market cap — a strategy that has delivered steady returns. More

PORTFOLIO MOVES
Sundaram Leadership
From an initial asset base of Rs 75 crore, Sundaram India Leadership's net asset value has trebled to Rs 215 crore in February 2006. Although large-cap stocks continue to dominate the portfolio, the fund sports a good number of mid and small-cap ... More

Tata Select Equity: Invest
While it is a theme fund, it invests in a wide cross section of sectors, lending the portfolio a diversified look. More

Fund Talk
I have invested in the following funds: HDFC Premier Multi-Cap, HDFC-MIP-Long Term Plan, Franklin India Flexi-Cap, Pru ICICI TaxPlan, Pru ICICI Income Multiplier, SBI Magnum Contra, Fidelity Tax Advantage Fund and ABN Amro Tax Advantage Plan. ... More

SEBI's fiat on initial expenses
The Securities and Exchange Board of India has disallowed open-ended funds from charging initial issue expenses in new fund offers from the NAV. Open-ended schemes now have to meet sales, marketing and other expenses connected with sales ... More

TAXATION

The dilemma
I am retired and trade online. I average about one transaction a day. I don't trade in futures and options. I hold the shares on an average for 2-3 weeks. The primary motive of the investment is to earn profit. I have not employed anyone and ... More

TECHNICAL ANALYSIS

Weak trend in pivotals
The stock moved in line with expectations. A positive trend prevailed and the stock moved to the target zone of Rs 1,010-1,020. The short-term outlook is bearish and a drop to Rs 930-940 appears likely. A close below Rs 960 would confirm the ... More

Chart Focus
The price action over the past few years indicates that the uptrend is not complete as yet. Investors willing to wait may find opportunity to exit from the stock at Rs 58-60. In the near term, the stock could move to the immediate target zone ... More

Follow-up
As anticipated last week, a positive trend prevailed. The stock ruled firm and appears on course to move to the target zone of Rs 205-210. The positive outlook would be in force as long as the stock holds above Rs 142. As it would not be ... More

Strategy
The concept of overbought or oversold is subjective in nature and may vary across time and with the overall trend in the market. If the price of a stock or an index moves up too fast in too short a span, then the instrument concerned would be ... More

Trading Tips
Never try to fight a trend by taking positions against the prevailing trend. Though it may be always tempting to buy a stock that is falling with an intention to lower the average cost of acquisition, such a practice should be ... More

Query Corner
Please advise whether to hold or sell Titan Industries bought at Rs 842. K. Meenakshi Titan Industries (Rs 811): Though the long-term outlook is positive, there is a possibility of a drop to lower levels in the near-term. ... More

CARS

New Scorpio: Stings that excite
The new-look Scorpio has as many as 43 new features. Most of the changes have been driven by customers' opinions and internal feedback. More

STOCK MARKETS

Bull's Eye
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Baskets of 'X'
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Evolutionary finance
A biology professor I know is a fairly successful equity trader. He does not borrow any strategy from his biology textbook, but insists that there is some relationship between evolution and the capital market. ... 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

FIXED DEPOSITS

Fenner: Invest in one-year scheme
Fenner: An investment may be considered in the one-year option of Fenner (India). The rates on offer for the two- and three-year options are not attractive; the rate for the latter does not offer any premium for longer maturity. The ... More

INCOME TAX

What of one flat, two loans
I have taken a housing loan from ICICI Home Finance of Rs 10 lakh to purchase a flat. I have also borrowed a further sum of Rs 6 lakh from other banks for renovation of the same flat. Will the interest on both of these loans qualify for ... More

IPOS

Reliance Petroleum: A high-octane offer
The project is designed to capitalise on the twin aspects of rising demand in the West for high quality fuels that meet stringent emission standards and the widening price gulf between heavy and light crude oils. More

Reliance Petroleum: Focus on risks
A repeat of the story with the original Reliance Petroleum whose project was delayed by four full years could prove dangerous for the new RPL. More

Lokesh Machines: Invest
This small-cap stock appears to have the potential to deliver growth, as demand drivers are in place. Buy with a one/two-year perspective. More

BOOKS

Enter the largest financial market
"Currency trading may not be to everyone's disposition." For, forex is "the purest of all speculative adventures." More