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Sunday, September 07, 2008
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INVESTMENT WORLD

TECHNICAL ANALYSIS: Index Outlook
Sentiment on Indian bourses seesawed between hope and despair last week. The strong mid-week surge caused by crude oil’s decline below $110 was thwarted by the global wave of selling in equities that seeped into the Indian stock markets, ...

AUTOMOBILES: Automobiles: Working on a better product mix
The pause in demand due to high interest rates coupled with rising input costs have battered the auto sector in recent times. Raw material costs for five majors — Tata Motors, Ashok Leyland, Mahindra and Mahindra, Maruti Suzuki and ...

PERSONAL PRODUCTS: FMCGs: Price hikes, forward purchases save the day
With the cost of almost every input ranging from palm oil and milk to packaging material zooming upwards, FMCG companies have had plenty of cost-side pressures to contend with over the past year. But many of them have emerged relatively ...

ENGINEERING: Capital goods: New moves on procurement
Capital goods companies have begun to feel the heat from spiralling commodity prices. The average operating profit margins of companies in this space have fallen a good two percentage points, to about 16 per cent, in the June quarter. Raw ...

REAL ESTATE & CONSTRUCTION: Infrastructure: The escalation clauses start kicking in
Efforts by infrastructure and construction companies to protect margins have revolved around attempts to pass on raw material price hikes to clients. Steel, cement, bitumen and diesel can account for as much as 60-65 per cent of the total ...

BANKING: Banks: Higher lending rates hold the key


STEEL: Steel: Creating backward linkages


INVESTMENTS: Making sense of the rupee movement
Ever thought of making the connection between the rupee’s exchange rate against other currencies and the earnings of software and hardware companies? ...

STOCKS: SAIL: Buy
Investors can consider buying the SAIL India stock, now trading at a price-earnings multiple of about 8.2 times its 2007-08 earnings. The valuation is at a discount compared to Tata Steel (9.4 times) and global steel majors. SAIL’s ...

MUTUAL FUNDS: Tata Equity P/E Fund: Invest
Investments can be considered in Tata Equity P/E Fund based on its improved performance over the past two years. The fund underperformed the benchmark Sensex by a significant margin in 2006, thus impacting its last three-year performance. ...

INCOME TAX: Deductions on medical treatment
I am suffering from chronic renal failure and undergoing treatment for the same. I am already getting about 80 per cent of the total money spent for the treatment as reimbursement from my employer. ...

INVESTMENTS: Strike an investment bond!
Here’s the low-down on this less popular investment, the options available and the returns the investor can look forward to.. Investment in bonds may not appear to be as inviting as investing in equity. If you thought so, you are ...

MUTUAL FUNDS: Sundaram BNP Paribas Select Midcap Fund: Hold
Investors can continue to hold the units of Sundaram BNP Paribas Select Midcap Fund (Sundaram Midcap), considering its long-term track record in generating returns. The fund has delivered an annual return of 42.1 per cent over a five-year ...

REAL ESTATE & CONSTRUCTION: Thrust on basics — and beyond
The Second Master Plan for Chennai seeks to address the demands that a rapidly growing population places on natural resources, infrastructure and basic needs, says Ms Susan Mathew, Vice-Chairperson, Chennai Metropolitan Development ...

TECHNICAL ANALYSIS: Query Corner: What the charts say
Please let me have your views on Ashok Leyland bought at Rs 56 and Jayaswal Neco purchased at Rs 81. Chandra ...

INTERVIEW: High interest rates will not last more than 6-9 months
“We wanted to give some kind of a breather to our customers in the form of low-interest rates”, said Mr Mudit Gupta, SME Business Head, SREI Infrastructure Finance, when asked about what prompted the company to hold interest rate ...

BOOKS: Charting and cricket
Investing or trading in the stock market without any knowledge of technical charts and chart patterns is akin to facing the very first ball of a match without any protective gear like helmet, pads, gloves, etc., says Ashwani Gujral in ‘
CORPORATE: When a buyback isn’t investor friendly
DLF recently proposed a buyback offer for its shares, setting aside Rs 1,100 crore to buy back 2.2 crore equity shares from the market at a maximum price of Rs 600 per share. As with many open market buybacks, the company may or may not go ...

STOCKS: PSL: Buy
Investments with a long-term perspective can be considered in the stock of PSL, which is the country’s largest manufacturer of high grade helical pipes. ...

ECONOMICS: Of investors and auto drivers
Consider this. It is late evening and you want to go shopping. It is one of those days when there is huge demand for autos. Yet, eight of ten auto drivers that you ask tell you that they are heading home to retire for the day! Their behaviour ...

INTERVIEW: ‘Only 3.5 crore are covered by health insurance’
Over the last few years, medical costs have grown by leaps and bounds and it has gone out of reach for the Indian middle and lower income class. But despite that, the penetration of health insurance in our country is abysmally low. ...

REAL ESTATE & CONSTRUCTION: Dreaming big but…

The debate on the strengths and weaknesses of the Second Master Plan for Chennai Metropolitan Area 2026 notwithstanding, the adoption of a master plan for the city is cause for some cheer even if it comes more than three decades ...

REAL ESTATE & CONSTRUCTION: Mixed reactions to master plan


TECHNICAL ANALYSIS: Tech School: Descending triangles
We resume the discussion on continuation patterns with the descending triangle this week. These are bearish patterns and portend that the security is likely to decline once the pattern terminates. ...

STOCK MARKETS: Bull's Eye
E-mail your response by Tuesday to

STOCK MARKETS: Baskets of X
E-mail your guess before Tuesday to:
TECHNICAL ANALYSIS: Tata Steel
Tata Steel moved listlessly between Rs 580 and Rs 600 in the early part of the week before recording a new closing low for 2008 on Friday. ...

TECHNICAL ANALYSIS: Reliance Infra
Reliance Infrastructure reversed lower just under our near-term resistance at Rs 1,052 last week. ...

TECHNICAL ANALYSIS: Infosys
Infosys achieved our first near-term target at Rs 1,800 before reversing lower last week. Despite Friday’s correction, the stock is halting just above the long-term average lines. The stock has immediate supports at Rs 1,680 and then Rs ...

TECHNICAL ANALYSIS: Reliance
Reliance reversed from the intra-week peak at Rs 2,225 and declined towards the key short-term support at Rs 2,050. We adhere to the view that traders can hold their longs until this level holds. However, the ferocity of the decline in the ...

TECHNICAL ANALYSIS: Unitech
The mid-week surge in Unitech took it to an intra-week peak at Rs 173 before the stock reversed lower again. ...

TECHNICAL ANALYSIS: SBI
This stock moved in line with our expectation, rallying to an intra-week peak at Rs ...

STOCKS: Everest Kanto Cylinders: Buy
Fresh investments can be considered in the stock of Everest Kanto Cylinders, a leading manufacturer of high-pressure CNG (compressed natural gas) and industrial cylinders. At the current market price of Rs 288, the stock trades at about 14 ...

STOCKS: Bank of Baroda: Hold
Bank of Baroda (BoB) shareholders can consider staying invested in the stock at the current price of Rs 294.65. The stock trades at 1.13 times the company’s 2007-08 book value and 7.5 times the earnings, translating into 0.93 times ...

MUTUAL FUNDS: ICICI Pru S.M.A.R.T Fund — Complex structure
ICICI Pru Structured Methodology Aiming at Returns over Tenure (S.M.A.R.T) is a close-ended debt fund that seeks to provide investors with equity market linked returns while aiming to protect against downside. The fund will invest up to 95 per ...

INTERVIEW: Meet the Manager
A host of new fund houses are set to debut with their offerings over the next few months. Religare AEGON may be among the earliest to do so. Vetri Subramaniam, who joined the fund house as Head of Equity Funds in ...

STOCK MARKETS: Beta exposure: Is direct investment better than index funds?
Readers may be aware of the core-satellite approach to portfolio management. This involves constructing a core portfolio for the beta (market) exposure and a satellite portfolio for the alpha (excess) returns. There were couple of interesting ...

DERIVATIVES MARKETS: Nifty future may drift lower
Markets seem to have lost their momentum midway. After witnessing wild swings intra-week, the Nifty September future finished marginally lower at 4352.2 points against the previous week’s close of 4370.55, shedding little over 0.4 per ...

NEWSPAPERS & PUBLISHING: A de-merger that won’t benefit small shareholders
As a small shareholder in Macmillan India, I have a few points to make about the company’s recent de-merger scheme, which I feel is unfair to minority shareholders.
DERIVATIVES MARKETS: Here’s a way to lock-in minimum gains on your investments
If you took pride in your stock picking skills during the bull run not long ago , the currently volatile markets could have shaken some of that confidence. ...

NEW FUND OFFER: Update
Bharti AXA Investment Managers has launched Bharti AXA Equity Fund an open-ended equity scheme. The minimum investment is Rs 5,000.The new fund offers closes on October ...






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Everest Kanto Cylinders: Buy

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