The Hindu Business Line : Sunday, August 31, 2003

San Geo: Accept
SHAREHOLDERS in SanGeo Services can accept the open offer made by the acquirer for Rs 8.60 per share. The book value is the only measure to value the company in the absence of any income or profits for the last three ... More

FINANCIAL SERVICES

Frequently asked questions at investor depository meets
NSDL considers it necessary to create awareness about the depository processes and reassure the investors about the benefits and safety of the depository system through multiple channels of communication. More

TELECOMMUNICATIONS

Reliance Infocomm offers international SMS
Reliance Infocomm has launched an international short messaging service (SMS) for both its Reliance India Mobile and Reliance IndiaPhone (fixed wireless) subscribers. The subscribers will be able to send, receive, reply and forward simple text ... More

AUTOMOBILES

Question `n' Auto
I live in Chennai and need a bike to go to college. The options I am considering are the TVS Fiero F2, Bajaj Pulsar, Bajaj Caliber 115 and TVS Victor. I need good mileage and a comfortable ride. Can you compare these bikes and suggest which ... More

INSIGHT

Demergers: Dividing to multiply
AFTER the drive down the mergers and acquisitions avenue, India Inc has turned into the road of de-mergers as it speeds towards corporate restructuring. Be it the Birla group's decision to break up Indo Gulf ... More

When to spin off the profits
HOW can investors in the stock of a company benefit from a de-merger situation? For long-term investors, there is no rule of thumb that can be applied across all de-merger situations. There are wide divergences in ... More

Delisted companies and minority shareholders — Using 100 for 100
The use of Section 100 to buy out minority shareholders, legal as it is, raises some questions of propriety and procedure. More

SEBI must keep both eyes on the bull
TRADING volumes on the stock exchanges have spurted sharply over the last three months. The combined volume of the spot and derivative markets — at about Rs 15,200 crore per day — outpaces the numbers of the ... More

Pension reforms: Flexibility essential
The proposed pension plan has run into controversy, though the criticisms levelled against it seem misplaced. However, the Government needs to enhance the plan's credibility to ensure its widespread acceptance. More

Derivatives and the median quarter sigma rule
THE NSE recently introduced eight bank stocks in the derivatives segment. In this context, queries have been raised about the median quarter sigma, one criterion that SEBI prescribes for this introduction. What is this ... More

MUTUAL FUNDS

Sundaram Income Plus: Invest
SUNDARAM Income Plus (Growth) returned 11.5 per cent since its launch last July. The fund is suitable for investors wanting to construct a diversified bond portfolio. Investors need to consider the following factors ... More

SBI Magnum Contra Fund: Sell
INVESTORS in the SBI Magnum Contra Fund can sell their holdings and switch to diversified equity funds with a better track record. The fund's performance over different time periods has been unimpressive. Even the ... More

Assets under management: Jostling to level with UTI Mutual
THE gap between UTI Mutual Fund and three of the larger private sector funds continues to narrow. HDFC Mutual (assets under management of Rs 12,421 crore at the end of July 2003), Prudential ICICI Mutual (Rs 13,107 ... More

Taurus the Starshare: Sell
DIVERSIFIED equity funds have registered a sharp appreciation in value over the past year, in many cases, generating much higher returns than the broad market. This may be an opportune time for investors to exit ... More

DSP Merrill Equity: Pare exposure
INVESTORS in DSP Merrill Lynch Equity Fund can contemplate paring exposures to take advantage of the rise of over 50 per cent in the NAV over the past year. The fund's overall track record has not been impressive ... More

Canbank Mutual Fund new schemes

STOCKS

HCL Technologies: Pare exposures
Mixed signals are emerging from the restructuring put through by HCL Technologies in 2001-02. While its acquisition strategy has worked well so far, the growth in its existing software business is yet to gather momentum, says Krishnan Thiagarajan . More

Ballarpur Industries: Book profits
SHAREHOLDERS of Ballarpur Industries (BILT), especially those who had availed themselves of the rights offer at Rs 38 per share in 2002, should consider booking profits. Investors can use any uptrend linked to the ... More

Thomas Cook: Hold
SHAREHOLDERS can continue to hold on to the stock of the travel services major, Thomas Cook. Those contemplating investments in the stock can do so when the business prospects become clear, once the inbound traffic ... More

Jay Bharat Maruti: Buy
EXPOSURES can be considered in Jay Bharat Maruti (JBM), an auto component manufacturer deriving a major portion of its revenues from Maruti. Buoyant growth prospects for its primary customer, Maruti Udyog, attempts at diversifying the customer ... More

Tata Tea: Hold/Buy on declines
FRESH investments can be contemplated in Tata Tea at price declines of about 15 per cent from the current levels. Existing shareholders can remain invested. The company is likely to maintain its earnings growth in the ... More

Dalmia Cement: Still some steam left
EXPOSURES can be contemplated in the Dalmia Cement stock by investors with a penchant for high risk at the current price of Rs 210. Business Line had recommended a buy at a price of Rs 160 in early June 2003. There is room for further ... More

Century Textiles: Risky, but a value play
INVESTMENTS can be considered in the Century Textiles' stock at Rs 110. With the outlook for the cement and paper business looking up, scope for appreciation exists. A sharp six-fold jump in sustainable earnings in the April-June quarter ... More

TECHNICAL ANALYSIS

Buy Century Textiles on declines
ITC (Rs 832.3): The stock ruled firm in line with last week's expectations. The outlook for ITC continues to remain positive. As mentioned last week, a move towards the Rs 850-860 range appears likely. Existing holders could remain ... More

Query corner
I like to know the outlook of IFCI and Nilkamal Plastic shares. — Mushtaq Ahamed IFCI (Rs 15.7): The share price of the company could seek higher levels in the near term. However, there is a possibility of a short-term ... More

Further upside likely
Preferred view: As mentioned last week, the overall outlook for the market continues to remain positive. There is no hint of the reversal of this trend as yet. The index has also managed to break above the resistance level of 1340-1350 ... More

TWO/THREE WHEELERS

The Winds of change
AFTER much talk and hype about the world bike from Bajaj Auto, the motorcycle "breezily" entered the market early this month. Called Wind 125, to create the vision of speed and smoothness in the minds of bikers, ... More

INTERNET

Google launches Indian version
GOOGLE, one of the most widely used search engines, has launched Google India (www.google.co.in), which offers a choice of interfaces in Hindi, Bengali, Telugu, Marathi and English. It also provides additional search functions by enabling ... More

HOUSING FINANCE

Kotak Mahindra Bank cuts home loan rates
Kotak Mahindra Bank has reduced its home loan rates by 25 basis points. With this rate cut, a five-year home loan is now pegged at 7.75 per cent on a monthly reducing balance. BL Research ... More

LIFE INSURANCE

INSURANCE CORNER

LIC's Komal Jeevan
LIC's Komal Jeevan is a child money-back policy taken on the life of the child. The policy pays a certain percentage of the sum assured in four regular instalments after the child becomes a major. Premium payments cease ... More

Aviva Life Insurance policy for SHGs

STOCK MARKETS

Healthy bout for pharma cos
IT has been a comeback for pharma stocks. Both front line and mid cap pharmaceutical stocks had a heady run over the week propelled by company specific news. For instance, Morepan Labs appreciated 60 per cent on the back of rising demand for its ... More

Up `n' down the street
Ranbaxy Labs (Rs 1,001): The stock rose 13 per cent. This has to be seen in the light of the recent approvals given by the US Food & Drug Administration for multiple drugs of the company. Morepen Labs (Rs 16): The stock surged by ... More

DEBT MARKET

Downside bias
THE bond curve shifted down marginally week-on-week. The 10-year bond currently trades at 5.25 per cent, down 30 bps over the previous week. Going forward, bonds are likely to trade in a range, with a somewhat downside bias. The bond market ... More

DERIVATIVES MARKETS

New entrants active
THE week saw a lot of activity with the panic Monday, hectic Tuesday, expiry of August contracts on Thursday and new entrants on Friday. Put volumes have increased, especially in stock options. With the entrance of CNX IT and other bank stocks, ... More

Using futures/options
If I have written an option, how do I anticipate Assignment? — Gauri If you have written option contracts (short positions), whether a call or a put, you should expect it to be assigned (called upon to make payments) when it is ... More

CNX IT- Derivatives
On August 29, 2003 futures and options on CNX IT is introduced. Some facts about the index and the contracts: CNX IT is an index comprised the most liquid and large capitalisation IT stocks, traded on the NSE, engaged in the ... More

Options guide

PRIVATE BANKS

`Anywhere Banking' from Federal Bank

FIXED DEPOSITS

HDFC: Housed in strong fundamentals
THE fixed deposit programme of Housing Development Finance Corporation (HDFC) is open for investment. The company's fundamentals are strong. Also, the depositors have an added incentive, as the interest income on ... More

INCOME TAX

Taxability of foreign-earned income
I WAS in the US from March 1999 to August 2001 on a H1B Visa. I still have a bank account there as I have a refund due from the IRS. I would like to bring the balances in my bank account (earned in the US) to India. On ... More

Deduction of medical expenses
IT WAS mentioned in these columns (Business Line, August 10) that the deduction under Section 80DDB would be Rs 40,000, and, in the case of senior citizens, Rs 60,000 or the sum actually spent, whichever is ... More

BOOKS

BOOK VALUE

Therapy for traders
MARKETS have a mind, and you mind the markets. But do you mind your mind? Stock market traders make money, but they can make more money if only they don't stand in their own way. It is possible for traders to identify, ... More

CARTOON