The Hindu Business Line : Sunday, August 10, 2003

Fund of funds: Dynamic alternative to balanced funds
INNOVATION has been the hallmark of mutual fund operations in India in the last couple of years. The latest is the funds of funds concept, in which one mutual fund seeks to ride on the performance of others. ... More

Pinning hopes on tactical asset allocation
Given that AMCs may be reluctant to offer investors the benefit of investment across funds, a fund of funds that practises tactical asset allocation may score in terms of better returns for investors. More

Value from trading in rights/buybacks
SEBI's proposal to allow trading in rights and buybacks is promising. Such trading can provide valuable information to market participants — especially, retail investors — about the value of rights and buybacks. More

The engineering rally
Stocks of many companies in the capital goods industry have doubled in value over the past one year. More

Rich harvest for CDC
SMART moves by the Commonwealth Development Corporation (CDC), close on the heels of the acquisition of a significant stake in Punjab Tractors, are likely to give it bigger bang for the buck. Its proposed open offers ... More

What are third-party warrants?
SEBI recently put out a concept paper that discusses the introduction of new instruments in the capital market. One such instrument is the third party warrant. What is this instrument? Third-party warrant is a ... More

INDUSTRY ANALYSIS

Oil and gas — upstream: A gush of activity
AFTER an extended spell of inactivity, action is now hotting up in the upstream oil and gas sector. And the two main protagonists — Oil and Natural Gas Corporation (ONGC) and Reliance Industries — are ... More

Interest in gas flares up
Reliance's gas find has the potential to double the production and change the energy map of the country. More

The action at Mumbai High
A SHORT, 45-minute helicopter ride away from Mumbai is the Mumbai High oil field, the heart of the country's oil map. Though popularly known as Mumbai High, the region actually consists of three major assets — ... More

The stocks to barrel
ONGC: Hold
Gail: Hold
Reliance: Hold
More

MUTUAL FUNDS

Birla IT Fund: Sell
INVESTORS in Birla IT Fund can consider paring their exposures. Birla IT Fund's performance in the last couple of years has been impressive. But its investment objectives are being changed. In this backdrop, reducing ... More

Franklin India Taxshield: Invest in phases
UNITHOLDERS can stay invested in Franklin India Taxshield, a tax savings scheme from the Franklin Templeton stable. Bunching of fresh investments can be avoided, given the sharp spurt in stock prices. But the fund's ... More

Alliance '95 Fund: Book profits
INVESTORS in the Alliance '95 Fund can use the recent run-up in NAV to book profits and exit. After consistently figuring among the top three balanced funds until 2000, the fund has been displaced by some of its ... More

IL&FS Growth and Value: Hold
THE IL&FS Growth and Value Fund has turned in an impressive performance in the past year, with a 57 per cent appreciation in NAV. The bulk of the returns was accumulated over the past three months. The returns have ... More

STOCKS

Indian Hotels: Buy
FRESH investments can be considered in Indian Hotels at the current market price of about Rs 270. The stock holds potential to appreciate in the medium-to-long term in the light of its improved ... More

EIH: Hold
SHAREHOLDERS of EIH can remain invested in the stock. The Oberoi group company has been indifferent over the past few years and the stock suffered. If the decline in earnings persists, it would have further downside. ... More

Nestle India: Book profits
SHAREHOLDERS can book profits in the Nestle India stock at current price levels of Rs 575. At its current price-earnings multiple of around 25 times its trailing 12-month earnings, the stock is expensive when viewed in ... More

Crompton Greaves: Buy (High Risk)
INVESTORS with high-risk appetite can consider fresh exposures in Crompton Greaves. The stock was re-rated on the back of improving fundamentals and has run up sharply in the past few months. Debt reduction, ... More

Foseco India: Hold
THE Foseco India stock has climbed up to Rs 188 now, from about Rs 102 at the beginning of May. Investors can continue to hold on to the stock at the current levels and benefit from the potential improvement in ... More

i-flex solutions: Hold
SHAREHOLDERS were recommended to "pare exposures" in the stock in in early June. Since then, the company has announced a 1:1 bonus. Considering the strong licence fee order-book, good momentum in the product business ... More

Clariant: Book profits
SHAREHOLDERS of Clariant (India) can consider booking profits at the current price of Rs 170. Re-entry may be considered at lower levels. The Clariant stock has been a traditionally low volume, not-so-volatile counter. The recent spike in the ... More

Balaji Telefilms: Cash-out of the show
SHAREHOLDERS of Balaji Telefilms can consider booking profits in the stock at the current price of about Rs 76. Any strength, on the back of liquidity flows into the market, can especially be used to cut exposures. We had recommended a buy on the ... More

OPEN OFFERS

Noble Explochem: Accept
SHAREHOLDERS of Noble Explochem (NEL) can consider tendering their shares to the open offer. The offer is for mopping up 20 per cent of the share holding. The offer price is Rs 7 for fully paid-up shares and Rs 2 for ... More

Kadri Mills: Accept
KADRI Mills is a Coimbatore-based cotton yarn manufacturing and trading company. The acquirers had made an open offer for 22.77 per cent of the equity at Rs 5.5 in January 2001. The offer was stalled due to low pricing. ... More

LIFE INSURANCE

Group term assurance plans — To keep the flock together
IN THE intensely competitive age we live in, organisations across the globe have displayed an inclination to go that extra mile to retain their best employees. And why not? After all, an organisation's position among ... More

INSURANCE CORNER
Aviva Life's Amar Suraksha
AMAR Suraksha is a term plan with return-of-premium option from Aviva Life. Like other term policies, it pays the sum assured on death. But on survival at maturity, all premiums paid are returned without interest. ... More

STOCK MARKETS

Power equipment stocks stage a comeback
POWER equipment stocks have been inching ahead on the back of good order book position and a bright business environment. After a brief correction, these stocks are back on the uptrend. BHEL, Siemens, ABB and Crompton Greaves rose sharply on ... More

D-Link India gains over 26 pc on good numbers
BHEL (Rs 294): BHEL gained 11.5 per cent on talk that it might bag an order from NTPC. Orders secured this week from Tata Power and Hindustan Zinc also appear to have aided the rally. JB Chemicals & Pharma (Rs 234): JB Chemicals ... More

Yearly highs beckon many stocks
Interestingly, the banking sector, which has witnessed a significant re-rating in 2003, has only two stocks - Centurion Bank and ING Vysya Bank - that are at their yearly highs. More

1999-2003: A wild swing in market mood
THE global markets saw both a peak and a bottom during the 1999 - 2003 period, with sentiment swinging wildly on both sides. After reaching record low levels in the previous three years, equity markets broadly across the globe, were able to ... More

DEBT MARKET

Bonds may see volatile trading
The yield curve shifted down marginally week-on-week, with the 10-year bond closing at 5.55 per cent. Going forward, bonds are likely to remain biddish, but may see some volatile trading. The amount accepted by RBI under repos declined to Rs ... More

DERIVATIVES MARKETS

DO THE DERIVATIVES
Vega, Greek The IV
HAVE you wondered why these option premiums keep changing but never in the same proportion of the change in the underlying stock? The knowledge of the Greeks will help in explaining why the option premium changes the way they do. Recap: ... More

Using futures/options
* Equity options being of American type can be exercised before the expiry date. What is the procedure for exercising before the date? I bought five July options of Tata Power of Rs 130 at a price of Rs 13. Subsequently the spot price went up ... More

Improved activity in Tata Steel, Reliance, Satyam
WITH the benchmark index, Nifty jumping by around 2.25 per cent during last week, trading activity picked up further at the futures & options segment. The average daily turnover during the week improved to about Rs 6,119 crore from the previous ... More

Options guide

FIXED DEPOSITS

Axles India: Gear in for a year
THE fixed deposit programme of Axles India, a TVS Group company, is open for investment. The company is in profits after two consecutive years of net losses. An investment up to one year can be considered in FD ... More

INTERVIEW

`We have to be an integrated oil company'
OIL and Natural Gas Corporation (ONGC) is all abuzz these days. From a staid PSU that was content pumping out the oil that it already had, ONGC has turned aggressive in pursuit of fresh finds, both in India and abroad. Piloting this effort is ... More

INCOME TAX

Income for rebate purposes
WOULD long-term capital gains be treated as part of total income for computing the percentage of rebate that an assessee can claim under Section 88 given that long-term capital gains is excluded in computing the rebate ... More

Making deposits from loan funds
I HAVE a term deposit in a bank. On the security of this deposit, I have taken a loan from the same bank which loan I have used for making deposits in companies. Can I claim a deduction of the interest paid on the ... More

CARTOON