The Hindu Business Line : Sunday, November 09, 2008

INVESTMENT WORLD

INSIGHT: Banking on inherent resilience
Having outperformed the Sensex , from 2002-2007, the BSE Bankex, which represents the leading listed banks, has barely kept pace with it over the past year. A steep increase in interest rates, tightening liquidity, higher reserve ratios, ...

TECHNICAL ANALYSIS: Index Outlook
Even as the world raised a toast to United States of America that voted for a new order in which racial hierarchy ceases to matter, stock markets reversed downwards. It was probably President-elect, Barack Obama’s grim reminder about ...

STOCKS: Mahindra and Mahindra: Buy
The Mahindra and Mahindra (M&M) stock has shed over 30 per cent since our earlier recommendation in end-September. While a large part of the fall can be attributed to broader market volatility, a fall in profits in the second ...

STOCKS: YES Bank: Buy
Investors can consider accumulating the YES Bank stock at the current market price (CMP) of Rs 81.9. The stock has gained 49 per cent from its all-time low of Rs 55 on October 27, but remains a good investment option for investors with ...

STOCKS: IRB Infrastructure Developers: Buy
We reiterate a buy on the stock of IRB Infrastructure Developers. The stock had taken a sharp hit over the last few months on concerns of high interest rates affecting project internal rate of returns (IRRs). Signals of a softening interest ...

MUTUAL FUNDS: IDFC Classic Fund: Invest
Investments with a long-term perspective can be considered in IDFC Classic Fund. Our recommendation is underpinned by the fund’s sound portfolio of fundamentally strong companies that hold potential to generate superior ...

MUTUAL FUNDS: Templeton India Pension Plan: Invest
Templeton India Pension Plan is an open-ended debt-oriented balanced fund with maximum allocation of 40 per cent to equity, and the rest in debt. The fund marginally beat the category average over a five-year time-frame and outpaced the ...

INVESTMENTS: Dealing with the FMP scare
Investors, seeking shelter from vicious swings in the equity market, have poured money into fixed maturity plans (FMPs) floated by mutual funds over the past ten months. “Indicative yields” provided at the outset, protection ...

FINANCIAL MARKETS: Confidence-building across the globe
Much has been written about the US sub-prime crisis, the failure of big investment banks and how that led to a tightening of liquidity and credit in the global banking system.But what are governments and the central banks doing to address ...

INSIGHT: Aluminium — feeling the heat
Aluminium, one of the most popularly traded base metals, currently trades at around $2,036 per tonne at the London Metal Exchange (LME) and Rs 95 per kg at the Multi-Commodity Exchange (MCX) in India. The prices have fallen by about 12 per cent ...

REAL ESTATE & CONSTRUCTION: Time to buy...
Is it time to look at purchasing property? Has the correction set in? These are questions most property seekers want answers ...

TECHNICAL ANALYSIS: Query Corner:What the charts say
I have bought Sesa Goa at Rs 200. Should I hold the shares or book loss and switch to another company? Sandeep Kalra, S ...

STOCKS: Bartronics India: Buy
The IT hardware and software segment sports many stocks that are at ‘attractive’ valuations. But many of them are grappling with businessand/or currency risks that make them a risky investment even at single-digit ...

BANKING: The long-term outlook for bank stocks
Despite concerns about tight liquidity at present, credit growth for Indian banks is likely to remain quite strong over the next few years, helped by corporate demand for credit. To cite an example, infrastructure spending in the Eleventh ...

TECHNICAL ANALYSIS: Infosys
This stock reversed from the peak at Rs 1,457 on Monday and closed the week with an 8 per cent decline. If we consider the movement of the stock over the last four weeks, it is moving in a band between Rs 1,100 and Rs 1,400. The short-term ...

TECHNICAL ANALYSIS: Maruti Suzuki
MUL built on the gains made in the previous week and went on to an intra-week peak at Rs 635. Though it retracted a little from this level, the short-term view on this stock stays ...

TECHNICAL ANALYSIS: Tata Steel
It was another disappointing show by Tata Steel. The sharp decline from the peak at Rs 250 shows that bears have a stranglehold on this counter. It is currently hovering around the key short-term support at Rs 180. If this level holds, the ...

TECHNICAL ANALYSIS: Reliance Ind
RIL reversed downward with a giant engulfing candle formation in the daily chart. The high volumes recorded on this day make it a key ...

TECHNICAL ANALYSIS: ONGC
ONGC rose to Rs 808 by Wednesday and spent the rest of the week moving sideways. The short term trend in the stock continues to be up. Near-term supports for the stock are at Rs 700 and then Rs 640. Short-term traders can hold their trading ...

TECHNICAL ANALYSIS: SBI
The stellar rally in SBI in the first half of last week was stalled at the resistance at Rs ...

TECHNICAL ANALYSIS: Prominent bulk deals on NSE and BSE
...

REAL ESTATE & CONSTRUCTION: Gujarat builders woo non-residents
Property show in US showcases investment options. Property developers in Gujarat are devising ways to tap the lucrative `Non Residential Gujarati’ market to get them to invest in the ...

REAL ESTATE & CONSTRUCTION: Small is beautiful, again
The huge demand for small dwelling units, and funding limitations, are encouraging developers in Pune to look at compact housing and the once popular 1-BHK (One-bedroom, hall and kitchen). A few weeks ago, the Promoters and ...

BOOKS: Lid off the modern Pandora’s box
August 9, 2007, was the date on which the lid came off the modern version of Pandora’s box, write Larry Elliott and Dan Atkinson in The Gods that Failed: How Blind Faith in Markets has Cost us our Future ( ...

INCOME TAX: Gift from son need not be declared in returns
I am a senior citizen. My son gave a gift to me and my wife. Is it necessary to declare the same in his income-tax return? Is there any documentation that is required as this is a gift to parents? - Vinod ...

TECHNICAL ANALYSIS: Runaway or measuring gap
Runaway or measuring gaps are a familiar sight on technical charts. They are also otherwise known as continuation gaps. Following a breakaway gap the price-move begins to progress for awhile, somewhere in the middle of the move the price ...

GENERAL INSURANCE: Taking the pain out of ‘cashless’ facility
You have paid your medical insurance premium and are fully covered for hospitalisation expenses. You should be able to just walk into a hospital, undergo the treatment and go home without a worry about the bills. It ought to be that easy. But ...

CRR & BANK RATES: Prime lending rate
Text-books define PLR or prime lending rate as the rate of interest at which banks lend to their credit-worthy or favoured customers. It is treated as a benchmark rate for most retail and term ...

ECONOMICS: Do drug prices enhance placebo?
My father-in-law recently fell ill and was hospitalised for nearly a month. During that period, he developed an infection and had to be treated with a strong antibiotic. The antibiotic was very expensive but he was rid of the infection in ...

INTERVIEW: ‘Ball is in developers’ court’

National Housing Bank, the refinance and development institution to support the housing sector, is pushing for the supply of affordable housing. There is a core demand for housing which is, for now, slow because of the ...

DERIVATIVES MARKETS: Nifty future may see sideways movement
Thanks to sharp gains on Friday, the spot Nifty and the Nifty futures were able to end the week on positive notes. Short-covering coupled with additions of fresh long positions, particularly on Thursday and Friday, helped the Nifty future fetch ...

MUTUAL FUNDS: Dividend payout — Cash to the rescue
Cash remained king in volatile markets such as the one witnessed this year. Many mutual fund schemes may have realised this, as a good number of them distributed hefty dividends in 2008. Over 80 equity schemes distributed dividends ranging ...

INVESTMENTS: Fund-of-funds: Can it offer tailored investment solutions?
According to the Web site of the Association of Mutual Funds of India (AMFI), there were 1,043 funds in the country as on September 30, 2008 with assets under management totalling Rs 4,20,862 crore. With 280 equity funds and 471 debt funds, it ...

CORPORATE: How money flows
Besides the balance-sheet and profit and loss account, the statement of cash flows is also a key disclosure forming part of a company’s annual report. It is a summary of receipts and payments disclosing the movement of cash during ...

STOCK MARKETS: Sensex continues its winning streak
The Sensex ended the week at 9964.3 points, marginally higher (1.8 per cent) than the previous week’s close. This rally in the market followed a strong 1000-points plus rally in the previous week. The decision of the Reserve Bank of ...

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

STOCK MARKETS: Baskets of X
E-mail your guess before Tuesday ...

INVESTMENTS: Planning vital for less affluent
I am aged 34, working in a Gulf country as an engineer earning Rs 1.5 lakh month. I can save Rs 20,000 a month after utilising my income for family expenses. My wife (32) is employed and her salary is Rs 1 lakh a month. For all our ...

INVESTMENTS: Fund Talk
I want your advice and guidance about my portfolio. I am 33 years old and intend to start SIPs totalling Rs 10,000 per month. What funds do I need to invest in? I am a long-term investor and intend to continue with the SIPs for ...

CRR & BANK RATES: Relief for borrowers post rate cuts
The repo rate, the rate at which banks borrow from the RBI, has often been used as the signalling rate for short-term changes in interest rates. After a series of hikes in the repo rate, the RBI cut it by 100 basis points (bps) to 8 per cent ...

MUTUAL FUNDS: Update
Canara Robeco Floating Rate Fund will henceforth be managed by Mr Akhil Mittal. The fund was earlier managed by Mr A. K. Rao. Mr Mittal was earlier a senior manager in ...