INDUSTRY ANALYSIS

Subsidies through sunset years
THE group pricing system for urea producers, which came into vogue in April 2003, aims to gradually tighten the purse strings on subsidy payments to the players and smoothen the path to eventual decontrol of the ... More

`Urea prices are unlikely to fall back to $90 levels'
While group pricing has had a negative impact on all the players, we have seen this as an opportunity to examine our own costs, streamline our processes and understand how a decontrolled market operates. More

Fertilise your portfolio
Tata Chemicals/Indo Gulf: Buy
GNFC/Oswal Chemicals/Nagarjuna
Fertilisers/Chambal Fertilisers: Hold More

AUTOMOBILES

Question `n' Auto
I am using a 2002 Maruti 800 DX that has the 12-valve MPFI engine and a five-speed manual transmission as standard fitment. With so many exchange schemes, including those from Maruti's dealers, should I consider trading-in this car for a new ... More

INSIGHT

A window for global diversification
The liberalisation of rules on overseas investments opens up a number of opportunities for Indians. Investing overseas is however complicated. Introduction of suitable products by banks and mutual funds can only deliver value to Indian investors. More

Shareholding pattern: Control by definition
CORPORATE India has been slowly but steadily changing the shareholding pattern over the past decade. The concept of a "promoter group" spearheading the fortunes of a company is becoming passé. Increasingly, ... More

L&T-Grasim: Uncertainty continues
SHAREHOLDER activism can delay the restructuring of Larsen and Toubro's business and capital, and affect the valuation of its stock as well as that of Grasim. L&T shareholders have approved the proposals in the past ... More

Hedge funds defined
YOU may have read reports recently about SEBI regulating hedge fund investment in India. What are hedge funds? A hedge fund differs from a regular mutual fund in its investment strategies. Such funds typically ... More

MUTUAL FUNDS

Alliance Capital Tax Relief: Invest in phased manner
INVESTMENTS can be considered in Alliance Capital Tax Relief '96, an open-end tax savings fund from Alliance Capital. The fund has not been among the top performers over the past year; it has, however, notched up ... More

US-95: Book profits partially
INVESTORS in US-95, a balanced fund managed by UTI Mutual Fund, can consider booking profits on part of their investments. Profit-booking may help investors lock into the high returns of the past year. It may also be ... More

Sundaram Mutual to launch Leadership Fund

IL & FS Growth
Hindustan Lever and BHEL have been the two additions to the portfolio of IL & FS Growth Fund in January 2004. BHEL is one of the top holdings of the fund. It has, however, not exited from any stock. In a volatile month for equities, the ... More

Fund Talk
I purchased units of PruICICI Technology Fund and SBI IT Fund in February 2000 and have suffered losses on both. I invested Rs.60,000 in PrucICICI Technology and Rs.30,000 in SBI IT Fund. Should I sell them at current NAV or hold for one year ... More

STOCKS

Ashok Leyland: Buy
ASHOK Leyland's stock has more than doubled in value in the last six months and there still appears some steam left in it. The stock can be acquired at the current level of Rs 245 for appreciation in the medium term. Ashok Leyland is benefiting ... More

Birla Global Finance: Buy (Long-term)
INVESTMENTS can be considered in the stock of Birla Global Finance. The stock offers exposure to the growing business of mutual funds. Birla Global Finance holds a 50 per cent stake in Birla Sunlife Asset Management ... More

Larsen & Toubro: Hold
SHAREHOLDERS of Larsen & Toubro can hold the stock till the process of de-merger is complete and the two main businesses — engineering and construction, and cement — are listed as separate companies. This ... More

Essar Shipping: Hold/Buy on declines
INVESTMENTS can be considered in the stock of Essar Shipping at price declines from the present level of Rs 25. With volatile trends in equity prices across the board and the possibility of a further decline, it may ... More

Tata Tea: Hold
SHAREHOLDERS can hold on to the Tata Tea stock. Launch of products in 2003-04 augurs well for the revenue growth in the coming quarters. Expectations of steady demand both in the domestic and foreign markets makes for ... More

Dalmia Cement: Hold/Buy on declines
SHAREHOLDERS of Dalmia Cement can retain their holdings as there appears scope for gains over a one-two-year time-frame. Strong fundamentals, space for reduction in interest cost and an improvement in price of cement in ... More

TECHNICAL ANALYSIS

Positive outlook for Reliance
Wipro (Rs 1555.7): As expected, the stock ruled weak and dropped to a low of Rs 1475 on Wednesday. It regained ground to close on a positive note on Friday. The near-term trend appears positive and a move to the Rs 1690-1700 range ... More

Focus of the week
Bank of Baroda (Rs 236.3): The stock appears to have broken out of a "Bullish Flag" pattern. The near-term tend appears positive and a move to the Rs 270-275 range appears likely. A close above Rs 248 would confirm this view. On the other ... More

Query corner
I have position in Arvind Mills at Rs 69. After the recent decline, is it good to hold on this share for medium- term investment? — Tom Arvind Mills (Rs 46.3): There appears a downside risk from current levels. A drop to ... More

LIFE INSURANCE

STOCK MARKETS

DERIVATIVES MARKETS

Using futures/options
In your column dated January 31, 2004, you have explained, "if the open interest in Reliance is 200 contracts, it means that there are 200 long positions and 200 short positions that have not been closed". Would you explain what is long ... More

Risk management system
A SOUND risk management system is integral to an efficient clearing and settlement system. NSE introduced for the first time in India, risk containment measures that were common internationally but were absent from the Indian securities markets. ... More

CREDIT MARKET

INTERVIEW

INCOME TAX

Study is no employment
BY VIRTUE of explanation (a) to Section 6(1)(c) of the Act, if an individual leaves India for employment outside India, it is understood that 60 days stay outside India as contemplated by Section 6(1)(c) is to be ... More

CARTOON

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