The Hindu Business Line : Sunday, June 29, 2008

STOCKS
HCL Infosystems: Buy
Investments with a one-year horizon can be considered in the shares of HCL Infosystems, considering its well-positioned business in the domestic IT infrastructure market and very reasonable valuations. At Rs 137, the stock trades at 7 times ... More

Aban Offshore: Buy
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Mundra Port and SEZ: Buy
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Dabur Pharma: Sell in market
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INSIGHT
What has changed with MF portfolios
Domestic mutual funds have unflaggingly pumped money into Indian stocks in 2008, even as foreign institutional investors have been queuing up at the exit doors. With valuations for many fancied stocks and sectors ruthlessly whittled down, buying ... More

DEBT OUTLOOK
Focus on short-term funds
Reserve Bank of India (RBI) stepped up its efforts to tame inflation by increasing both repo rate and Cash Reserve Ratio (CRR) by 50 bps each. The latest move is a reflection of the reversal in interest rate expectations in 2008. A sharp rise ... More

Regret Aversion and how to avoid it
Financial markets have come a long way since Eugene Fama propounded the Efficient Market Hypothesis. Psychologists and neuroscientists now study how our thought processes affect asset price movements. Studies have shown that asset price does ... More

INVESTMENTS
FIRST LESSONS
Measuring ‘skill’ and ‘earning’ returns
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Make sense of market jargon
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Nuggets
David Dreman is a noted investor who is known for his contrarian investment strategies. In 1977, he founded the first investment firm, Dreman Value Management, Inc., and is serving as its president and chief investment officer. ... More

Building wealth from scratch
I have just migrated to the US for employment. I am 40 years old and my wife is a home maker. We have two daughters aged 4 and 10. I don’t have any savings. I have borrowed huge sums, which I am repaying now. Assume that I am ... More

FOREX
MACROTRACKER
Trends in foreign capital inflows
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MUTUAL FUNDS
RETURN TRACKER
Diverging sharply
Equity fund returns More

DSPML Top 100 Equity Fund: Invest
In a highly volatile market, with an uncertain short-term outlook, large-cap stocks offer a relative safe haven for investors. The large-cap oriented DSPML Top 100 Equity Fund is a good investment option on this score. The fund has generated ... More

DWS Alpha Equity: Hold
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Fund Update
Kotak Mutual Fund has revised load in its equity schemes, effective 1 July. An entry load of 2.25 per cent will be charged for investments less than Rs 5 crore and an exit load of 1 per cent will be charged for redemptions and ... More

TECHNICAL ANALYSIS
Index Outlook
It was the turn of the bear to thunder through the Indian stock markets last week sending stock prices and the indices tumbling to one-year lows. The tiny mid-week recovery was scuttled by crude prices that spiked above $140 on Thursday. The ... More

Query Corner
I hold shares of ONGC and ACC purchased at Rs 1,030 and Rs 725 respectively. Please let me know the future prospects of these stocks. Vijay Kumar RahejaOil and Natural Gas Corporation (Rs ... More

Reliance
The latest leg of the down-move in Reliance Industries dragged the stock towards our medium-term target at Rs 2,000. It is now obvious that the stock is charting the C wave down from the Rs 3,298-peak. The targets for this wave are Rs ... More

SBI
This stock slipped below the long-term trend line at Rs 1,300 conclusively on June 20 and is now headed towards our next medium-term support at Rs 1,000. The targets of the third leg down from the January peak are Rs 1,337 and then Rs 1,027. ... More

Tata Steel
Tata Steel could not remain immune to the weakness engulfing the other stocks and declined to an intra-week low of Rs 688. This leg of the sell-off has pulled the stock below its long-term moving averages. But a conclusive close below the key ... More

Infosys
Infosys could not muster the strength to move beyond Rs 2,000 and declined to our medium-term support at Rs 1,700 instead. As indicated earlier, the medium-term view for the stock stays positive as long as it holds above Rs 1,700. A reversal ... More

Unitech
We had mentioned in our previous column that the long-term view had turned negative and a move to Rs 160 was imminent. Unitech pulled back from an intra-day low at Rs 160 on June 25. The stock ought to form a long-term trough in the zone ... More

Reliance Infra
Reliance Infrastructure declined below the key psychological support at Rs 1,000 last week though bulls did put up a fight around that level. The weakness in the daily and weekly oscillators implies that the stock has not reached the bottom ... More

Tech School
Novice investors wishing to get acquainted with technical analysis would have been bemused by quaint terms such as head and shoulders, cup and saucer, neckline, double tops, rounding bottoms and so on, that appear frequently in technical ... More

Bull's Eye
E-mail your response by Tuesday to BullsEye@thehindu.co.in.

REAL ESTATE & CONSTRUCTION
Now, book a `condotel'
With an overall slowdown in real-estate looming large, developers and promoters are looking to new formats to improve sales. One such is vacation home sales with a rent-back agreement. This format ensures buyers that their investments not ... More

Inflation, the latest worry
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RBI moves may further rock the ground for realty
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HOUSING FINANCE
Canara Bank spares home loans

Canara Bank has left home loan and auto loan borrowers out of the purview of the hike in interest rates it announced on Friday.The bank had announced a 50 basis point hike in BPLR (benchmark prime lending rate), taking it ... More

STOCK MARKETS
FOLLOW THE MONEY
Asia may falter until oil peaks
Crude oil futures closed at $140.21 a barrel on Friday, throwing global stock markets, including Asia into a fit. Investors have been fleeing Asian markets at a hurried clip this month. According to fund flow tracker EPFR Global, Asia ... More

Why we herd
It is not just animals that herd. Last December, my friend invested most of his savings in momentum stocks. His investments are currently down 30 per cent; his blood pressure up considerably. Looking back, he wonders why he made such a foolish ... More

Baskets of X
E-mail your guess before Tuesday to: BasketsofX@gmail.com

Rising inflation in emerging markets
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DERIVATIVES MARKETS
Mildly bearish? Here’s a low-risk low-return option strategy
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Brace yourselves for another dismal week
As expected the Nifty futures began the week on a frail note and ended further down. Markets gave in to the heavy selling pressure despite there being some show of resilience in the middle of the week. Overall, the Nifty future ... More

CRR & BANK RATES
TOP OF THE MIND
Taming inflation
The RBI’s decision to hike the cash reserve ratio (CRR) and the repo rate by 50 basis points has dominated the headlines this week. Some say the hikes were necessary, at a time when inflation is touching a 13-year high. Controlling ... More

INTERVIEW
‘Chinese cost advantage is over’
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‘This is a fund-pickers’ market’
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INCOME TAX
Claiming credit for the tax paid in UK
I am an IT employee. In the last financial year I was transferred to UK for about eight months. During the period when I was in UK, the salary was paid to me there after deducting the taxes that are payable ... More

IPOS
Birla Cotsyn India: Avoid
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VENTURE CAPITAL
GROUND REALITIES
Private equity optimistic

Consumers in the real-estate sector may complain about increasing interest rates and property prices going out of reach. And developers may complain about increasing costs, tightening fund flow and a slowdown in the market. But ... More

BOOKS
Financial intelligence makes you wealthy
Does money make you rich? The answer is ‘No,’ declares Robert T. Kiyosaki in ‘Increase Your Financial IQ’ ( www.landmarkonthenet.com). ... More