The Hindu Business Line : Sunday, July 20, 2003

Ten-year returns from stock market: Buy-and-hold may not always work
INVEST in the stock market, stay on patiently through its ups and downs, and you will be rewarded with higher returns than from any other asset class. This is the advice often handed out to investors who complain of ... More

Difficult to avoid entry-exit pitfalls
THE above story suggests that even if you are prepared to hold your investments for ten years, the timing of your entry and exit into stocks can influence your returns. Two strategies are suggested to lay investors ... More

Include stocks to deliver pension
Subsidies have a way of entrenching themselves in the system. Pension subsidies are no different. Using investments in stocks to deliver pension can potentially reduce their impact. More

Car sales — On the fast track
PASSENGER car sales have set a scorching pace this summer. The first quarter ended June 30 saw a 28 per cent growth in sales volumes; the highest since the first quarter of 1999-00 when the industry ran up a sales ... More

Bull market — Sense from SEBI, for now
FOR the first time, the top management of the Securities and Exchange Board of India (SEBI) has taken a sensible view on the bullish trends in stock prices. The views expressed by the SEBI Chairman, Mr G. N. Bajpai, ... More

Relationship between inflation and PEM
INVESTORS are now willing to pay higher price-earnings multiple (PEM) for a stock than they did three-four years ago. Apart from better earnings potential, the low inflation condition may be one reason for the ... More

PENSION PLANS

Varishtha Pension Bima Yojana — Reason to smile for pensioners
WORRIED how you will sustain your lifestyle after the salary cheques stop coming? Are the retirement blues on you? The unveiling of the Varishtha Pension Bima Yojana scheme will bring some cheer to would-be ... More

INVESTMENTS

Chevrolet Optra: Luxury redefined
DECADES after it left Indian shores, the Chevrolet brand and the internationally acclaimed bow-tie logo returned to the country riding on the Isuzu Impreza, re-engineered and re-christened the Chevrolet Forester. Now, ... More

MUTUAL FUNDS

Franklin India Prima Fund: Invest
FRESH investments can be considered in Franklin India Prima Fund as it has built an impressive track record over time. The consistency across different phases of the market and over most quarters in the past five years ... More

K-Gilt Investment Plan: Invest
K-GILT Investment Plan (Growth) generated an annualised return of 19 per cent in the last three years. The fund invests primarily in medium- and long-term bonds. This increases the downside risk for investors whose ... More

Mastershare to go open-ended
MASTERSHARE, the oldest mutual fund scheme in India, is set to undergo a major transformation. When its extended maturity period runs out, the scheme is to be converted into an open-end fund. Mastershare was launched in ... More

IL&FS Growth & Value Fund: Hold
INVESTORS in IL&FS Growth & Value Fund can continue to hold on to their units. The fund's performance in the last year has been impressive. Fresh investments in, or enhancing exposures to the fund need not be ... More

Inflows in tandem with rally
RECENTLY released data on mutual fund flows show that fresh investments into equity funds picked up sharply in June 2003. Gross inflows into equity funds during the month totalled Rs 920 crore, much higher than inflows ... More

Sundaram Mid-Cap: Hold
INVESTORS in Sundaram Mid-Cap can stay with the fund as it has done fairly well in its one-year tenure, helped by a sharp, across-the-board rally in mid-cap stocks. Over the last year, the fund turned in returns of ... More

STOCKS

PROGRAMMS IN CONTRAST

Hughes Software: Hold
SHAREHOLDERS can stay invested in the Hughes Software Systems' (Hughes) stock in the light of the improved earnings performance and guidance. However, investors who had entered the stock at the sub-Rs 200 levels can ... More

Wipro: Pare exposures
At the current market price, investors may consider cutting exposures in the Wipro stock. The valuation of the software services sector continues to remain in a state of churn and may take at least one more quarter to reach a steady state. In ... More

GE Shipping: Buy
INVESTORS can contemplate exposures in the stock of Great Eastern Shipping, especially on declines from the current level of Rs 46.Modest declines may be in store as the stock has started to trade on an ex-dividend ... More

MRF: Buy
THE sustained increase in automobile production along with the steady progress of the monsoon could have positive implications for tyre demand. The market leader, MRF, could be among the major beneficiaries of the ... More

Goodlass Nerolac Paints: Buy
FRESH exposures may be considered in the Goodlass Nerolac Paints stock as it holds the potential to appreciate in the medium-to-long term. Any correction in price could also be utilised to enhance holdings in the ... More

Bharat Forge: Buy
FRESH exposures can be contemplated in Bharat Forge, especially on any declines from the current market price of Rs 373 despite the sharp run-up in the last few months. Business Line had recommended `Pare ... More

Oriental Bank: Pare exposures
INVESTORS in the stock of Oriental Bank of Commerce can consider booking profits. The stock is now trading at about 1.62 times its price to book value ratio. This is the highest among public sector banks. A value higher than book value may be ... More

Second-rung steel stocks: Cash out
STOCKS such as Essar Steel, Lloyds Steel, Bhushan Steel, Ispat Industries, Mukand Ltd, the Jindal group , Monnet Ispat and Rathi Udyog have been in the thick of a bull run over the last few months. The continued increase in domestic steel prices ... More

TECHNICAL ANALYSIS

Book profit in Cosmo Films
ITC (Rs 744.9): As anticipated, a subdued trend prevailed in the counter last week. The stock dropped below the support level of Rs 745 on Tuesday and managed to recover ground as the week progressed. The stock is critically poised at the ... More

Nifty: Downward correction sets in
Preferred view: After threatening to break above the key resistance level of 3760, the trend turned bearish during the just-concluded week. The much-awaited correction materialised during the week. As mentioned last week, a drop to the ... More

Query corner
What is the outlook for Larsen & Toubro that I bought at Rs 285 long time ago? Also provide your views on BEML bought at Rs 100 and Tata Power at Rs 157. — T. Suresh, Saurab Jain. Larsen & Toubro (Rs 273.9): The stock ... More

LIFE INSURANCE

MetLife Junior MB
METLIFE Junior MB is a non-participating money-back policy for children. The policy is taken on the child and, hence, no benefit is payable on the death of the parent. How it ... More

STOCK MARKETS

Tata Infomedia gains 38 pc
Mercator Lines (Rs 75): Close on the heels of the announcement that the company had obtained a Rs 100-crore order from MRPL, the stock of the shipping company surged by over 90 per cent during the just-ended trading week. Tata ... More

Bulls on the run, again
IT was the best ever quarter for the global stock market in nearly five years amid growing hopes that the global economy will improve (particularly after the Iraq war). While the end of the Iraq conflict imparted a ... More

Engg stocks in focus
After a sharp rally, pharma stocks showed some weakness last week. Both, first-rung and second-rung stocks, slid through the week. Dr. Reddy's, Ranbaxy, Shasun, Glenmark Pharma, Divi's Labs and Neuland Labs still closed higher as compared with ... More

DEBT MARKET

Bonds likely to remain bid
BONDS traded in a tight range week-on-week. The 10-year bond currently trades 5.72 per cent, the same level as the previous week. Going forward, bonds are likely to remain bid, but may continue to trade in range. Consider the factors. Liquidity ... More

DERIVATIVES MARKETS

Tata Steel hardens on number hopes
NSE recorded all-time-high volume in the derivatives segment - Rs 5,654.87 crore on Thursday. The previous highest was Rs 5,124.81 crore recorded on July 15, 2003. The implied volatility of most of the contracts has increased this week. ... More

Using futures/options
If I have bought options for a certain stock when it was cum dividend, and when I sell, it is trading ex dividend. Do I get any part of the dividend? If so, when, or how is it adjusted? To give an example, suppose I have bought the Tata Steel ... More

Options guide

FIXED DEPOSITS

Wheels India — Well-aligned
FRESH investments can be considered in the fixed deposit programme of Wheels India for three years. At 8 per cent the rate is 50 basis points higher than that offered by other companies in the similar risk class. ... More

INCOME TAX

The long and short of capital gains
Where there is no employer-employee relationship, the income received by way of honorarium will be chargeable under the head `profits and gains of business or profession'. More

Buildings and fixtures: Effects of own use and letting out
I HAD let out a building along with fixtures, UPS and other facilities on rent but received rent only for a period of four months. The sum payable by the tenant was split as follows: Rs 25,000 per month towards rent and ... More

FOREX

Forex limit for education, medical treatment raised

TELECOMMUNICATIONS

AirTel One State, One Rate scheme
AIRTEL is to launch its One State, One Rate scheme on July 21, when calls made in the Tamil Nadu and Chennai telecom circles will be billed as a local one. This means AirTel customers can now call any other mobile ... More

BPL announces mobile offer in Kerala

International calling cards

AirTel long-distance calling cards

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