The Hindu Business Line : Sunday, October 12, 2003

Reject open offer for Swaraj group cos
AFTER acquiring about 23.5 per cent of equity in Punjab Tractors (PTL) from the Punjab State Industrial Development Corporation (PSIDC), CDC Group Plc of UK (the erstwhile Commonwealth Development Corporation), through ... More

INDUSTRY ANALYSIS

Tea: A cup that cheers no longer
OVER the past few years, the industry that provides us with a refreshing cuppa has been characterised by one dominant feature: The pressure to survive, what with profitability showing no signs of picking up to healthy ... More

Tata Tea: The sip that pays
THE tea industry is passing through a difficult phase. The ballooning costs and consecutive losses of many companies have dampened investor sentiments. Among the established large players, the market share in the ... More

Small brands, strong brew
IF TEA plantations are suffering from declining commodity prices and a glut in production, players in the branded (packet) tea market are not exactly having a good time either. Small, local players, through regional ... More

Reading the policy leaves
THE industry has been lobbying hard with the Government for additional sops and concessions to tide over the difficulties. So far, the changes have taken the form of an excise duty cut (in the recent Budget) and ... More

Strained by problems
BESET with structural problems for quite some time, the tea industry has felt their pronounced impact over the past couple of years. The key trouble spots for the industry are: Customer preferences shift: ... More

`We have never asked for help in the past'
Mr C. K. Dhanuka, Vice-Chairman, Indian Tea Association, and Chairman, Dhunseri Group of Industries, shares his views with Business Line on the outlook and issues ailing the tea industry and the industry's expectations from the ... More

INSIGHT

Shareholding pattern — The FII stock is rising
ARE foreign institutional investors prodding the bull that is running up the market. For, the ownership pattern of listed companies for the last three quarters reveals that the FIIs are slowly garnering a larger ... More

Value picks in FI portfolios
Stocks in which ICICI, IDBI and IFCI hold stakes have run up sharply in value, backed by expectations of an economic revival. In most cases, it is an opportunity for shareholders to reduce exposures. However, in a few cases, there may be an investmen t opportunity. More

Marked-to-monsoon
THE good monsoon has added its bit to the rising stock market. But in what is a common failing of a bull market, the good tidings are getting factored in too quickly. Good monsoon effect: Anticipating a ... More

Alliance's assets — SEBI's unconvincing stand
IN ITS second order in the case involving Mr Samir Arora, former Chief Investment Officer of Alliance Capital Asset Management (India), the Securities and Exchange Board of India has come up with rather weak arguments ... More

The ARCH process
PROF Robert Engle, awarded the 2003 Nobel Prize for Economics, is well known for his work on Autoregressive Conditional Heteroskedasticity (ARCH). What is ARCH process? Suppose you decide that the past prices of ... More

MUTUAL FUNDS

HDFC Capital Builder Fund: Hold
THE HDFC Capital Builder Fund has registered a sharp improvement in returns after a shift in its investment strategy in the first quarter of 2003. With returns of around 63 per cent in the first nine months of 2003, the ... More

PruICICI Growth: Hold
INVESTORS can retain their exposures in Prudential ICICI Growth Fund. Over the past 18 months, the fund has consolidated on its performance as well as revealed a more consistent investment strategy. It has outperformed ... More

UTI Petro Fund: Invest
INVESTORS with a penchant for risk may consider exposures in the UTI Petro Fund. The NAV has run-up sharply as oil sector stocks have been in the limelight in 2003. But there may be room for further gains as higher oil ... More

Templeton India Pension Plan: Invest
INVESTORS in the Templeton India Pension Plan can hold on to their present investments in the fund, in light of the fund's good five-year track record. The fund continues to be a reasonable long-term investment option ... More

STOCKS

Infosys Technologies: Hold
INVESTORS can hold on to the Infosys Technologies stock, which now trades at a price to earnings multiple of just over 25 times its estimated earnings per share for the year ended March 2004. Uncertainties over revenue ... More

Unichem: Buy
FRESH exposures can be considered in the stock of Unichem Laboratories, a Mumbai-based mid-sized pharma company that predominantly derives its revenues from the domestic formulations business. The stock has appreciated ... More

Balrampur Chini: Buy (High Risk)
IMPROVING prospects for the sugar business have led to a sharp uptrend in the Balrampur Chini stock over the past four months, with the stock appreciating by nearly 50 per cent to Rs 165 levels. However, investors with ... More

MphasiS BFL: Hold
SHAREHOLDERS can stay invested in the MphasiS BFL stock. Factors such as the liquidity-driven price rally and the expected turnaround in pricing power of IT service companies suggest that it may not be prudent to pare ... More

Blue Dart: Couriering returns
FRESH investments can be considered in Blue Dart Express, the country's leading player in the express courier market. As Blue Dart's prospects hinge considerably on overall activity within the economy, the likely GDP growth of over 7 per cent ... More

Goodlass Nerolac: For a dash of colour
FRESH exposures can be contemplated in the Goodlass Nerolac stock, the country's second largest paint manufacturer. We continue to maintain a positive outlook on the stock, in spite of a sharp run-up in price over the past two months, as business ... More

Hughes Software: Hold
AIDED by a strong order pipeline, Hughes Software Systems (Hughes) recorded a robust performance and exceeded the higher end of the financial guidance for the second quarter ended September 30. The salient features of ... More

TECHNICAL ANALYSIS

Further upside in Apollo Tyres
ITC (Rs 889.2): As anticipated, the stock ruled firm and moved past the target zone of Rs 850-860 that was mentioned last week. The outlook remains positive and the stock has the potential to yield a return of at least 25 per cent for a ... More

Query corner
Kindly inform me the short and medium-term prospects of Global Trust Bank purchased at Rs 26. — Selvin Global Trust Bank (Rs 21.2): The stock has been stuck in a range in the recent weeks. The overall outlook does not ... More

Nearing crucial levels
Preferred view: The index ruled firm and moved past the target zone of 1490-1500. After halting for a couple of days at this range, the index resumed its uptrend in the last couple of trading sessions. In the process, Nifty has now managed ... More

TRAVEL & PLACES

US scraps visa issuance fees
The US Embassy and its consular sections have scrapped issuance fees for student, exchange visitors, transit and crewman visas issued to Indian nationals, effective from October 11. The fees for other visitors and business visas are also reduced ... More

CARS

Ferrari 360 Modena: Formula behind the power drive
THE Beautiful Beast is here and with more than its share of publicity too. No, we are not talking about the Walt Disney classic, but about that blazing red Ferrari 360 Modena that Fiat, Italy, has gifted to Sachin ... More

Question `n' auto
What is your take on buying a second-hand Maruti Esteem VX model? I am looking at affordability and a car for a family of five? Which year's model to go for? Can you suggest any other alternative car? Gangadharan Mani A second-hand or ... More

LIFE INSURANCE

Aviva Young Scholar Child Endowment Plan
YOUNG Scholar is a regular premium child endowment plan from Aviva. The plan insures the life of the parent. Risk cover For a given regular premium you can choose the SA or risk cover ... More

SBI Life launches assured return policy
SBI Life Insurance Company has launched `Setubandhan', a policy with an assured return of 5 per cent. The product features are:

Resident Indians and NRIs between the ages of 18 and 60 can avail of this ... More

STOCK MARKETS

Emerging markets steal the thunder
The three-month period ending September 2003 was the best third quarter since 1991 as investors' enthusiasm for shares has been rekindled on the back of an expected upturn in the global economy. More

Up `n' down the street
UCO Bank (Rs 19): The stock surged 62 per cent after making its debut in the bourses this week, at a 43 per cent premium to its issue price of Rs 12. CESC (Rs 83): The stock of this electricity generation and distribution company ... More

DEBT MARKET

Remains tight
BOND yields remained tight week-on-week, though the market did witness high intra-week volatility. The 10-year yield, after marching towards 5 per cent during the week, closed at 5.11 per cent. Going forward, bonds are likely to remain ... More

DERIVATIVES MARKETS

High premiums due to increase in volatility
The October futures on the CNX IT had increased trading interest. With quarterly results for most of the tech stocks to be announced, almost all tech options have high IV. More

GOLD & SILVER: How to trade their futures
FUTURES contracts in 2 precious metals — Gold and Silver as approved by Forward Markets Commission are available for trading with effect from October 3, 2003. The futures contracts will remain open concurrently for 3 months (December 2003 ... More

Options guide

INTEREST RATES

SBM cuts rates on term deposits, loans
The State Bank of Mysore has cut its interest rates on domestic deposits by 25 to 75 basis points. The new rates are effective from October 1. The bank has also lowered its interest rate on personal loans and tractors loans. BL ... More

CREDIT MARKET

P&SB's special festival loan scheme
Punjab and Sind Bank has launched a special festival loan scheme under which a salaried person can take a loan five times his net carry-home salary with a ceiling of Rs 1 lakh. For self-employed and professionals, the quantum of loan is 20 per ... More

FIXED DEPOSITS

KSE: A balanced meal
THE fixed deposit programme of (KSE) is best for investors with a penchant for risk. Considering the attractive interest rate, low gearing levels and healthy interest cover, an investment up to one year can be ... More

INTERVIEW

`IT products still not a commodity market'
FLEXCUBE is probably the fastest-ever banking software sold. It gained points on account of its mission critical architecture, by virtue of its young age, availability of different channels, scalability and the India advantage. Mr Deepak Ghaisas , CEO (India Operations) and Chief Financial Officer, i-flex solutions. More

INCOME TAX

Effects of buyback price revision
CASTROL Ltd had offered to buy back its shares in November 2000 at Rs 350 per share. The company had, however, stated in the offer that it would pay an extra sum if so ruled by the High Court. I have offered the ... More

IPOS

Vijaya Bank: Invest
FRESH investments in the initial public offer of Vijaya Bank can be considered. The offer, priced at Rs 24, holds the potential for capital appreciation. The stock is available at a price-to-earnings (PE) multiple of ... More

NEW PRODUCTS & SERVICES

Kodak launches EC-100
Kodak India has launched a user-friendly camera for amateur beginners at a price tag of Rs 895. Named the EC-100, the 35-mm camera comes with an all-time flash, a big viewfinder and a two-year warranty. BL Research ... More

Kinetic Engineering launches Velocity
Kinetic Engineering has launched a 115 cc, four-stroke engine motorcycle. Branded `Velocity', the executive segment bike is priced at Rs 38,000 (ex-showroom). BL Research ... More