The Hindu Business Line : Sunday, December 26, 2004

Large-cap stocks: Breaking the barrier to create value
THERE is usually wealth creation beyond belief when a company makes the transition from mid- to large-cap status, crossing a milestone in its history. The process usually stretches over decades, and the number of ... More

A jolly good year for investing
For 2005, investors need to: * Step up exposure to equities * Stick to a proper asset allocation plan * Deal prudently with home loan commitments * Be wary of unit-linked insurance plans (ULIPs) More

RIL buyback: Debating the method
THE board of Reliance Industries (RIL), the flagship of the Reliance group, will consider a share buyback proposal tomorrow (December 27), primarily to stem the precipitous decline in the stock in recent times. Since ... More

INDUSTRY ANALYSIS

Automotive tyres — Treading a rough path
DESPITE the buoyancy in the economy, the pick-up in industrial growth and the booming stock market, tyre producers may not be on a roll. Be it the financial performance or the share price returns, the tyre majors have ... More

FINANCIAL SERVICES

Nomination and transmission
Nomination can be made only by individuals holding beneficiary accounts either singly or jointly. Non-individuals, including society, trust, body corporate, partnership firm, karta of Hindu undivided family (HUF) and power-of-attorney ... More

MUTUAL FUNDS

Small investors, here's ELSS
SCOUTING for equity funds where you can invest for three years or more? Try an ELSS fund and pocket some tax savings in the process. Investments in an ELSS (equity linked savings scheme) fetch tax rebate under ... More

Morgan Stanley Growth Fund: Invest
INVESTMENTS in Morgan Stanley Growth Fund can be considered. The fund is trading at an attractive discount of about 27 per cent to its net asset value. Buying at this price could lead to above-average returns if ... More

FUND TALK
Towards a diversified portfolio
Ten is a large number of equity funds to hold in your portfolio. Holding a large number of funds makes it difficult to track the portfolio and also adds to your paperwork. More

Birla Dividend Yield Plus: Invest in phases
INVESTORS may consider adding Birla Dividend Yield Plus to their portfolio through the systematic investment plan. The fund's stringent parameters for the selection of dividend yield stocks and its good track record ... More

Sundaram MF launches Floating Rate Fund

STOCKS

Tata Investment Corporation: Buy
Investors can accumulate the shares of Tata Investment Corporation, an investment company that is part of the Tata group. The stock is trading at a discount of more than 50 per cent to its fair value. Investments made now offer considerable ... More

Running on radials
MRF: Buy
Goodyear India: Buy
Apollo Tyres: Buy
JK Ind: Hold
Ceat: Hold More

Aztec Software: Hold
INVESTORS can retain their holdings in the Aztec Software (Aztec) stock. Since our last recommendation at Rs 33 in end-August, the stock price has nearly doubled. Our latest `hold' recommendation stands bolstered by the ... More

Composite financial services firms — Ready to make the big bang
Kotak Mahindra Bank: Buy
Sundaram Finance: Hold
Cholamandalam Finance: Buy More

Lupin: Buy
FRESH exposure can be considered in the Lupin stock, which now trades at about Rs 725. Any decline in the stock price, linked to weakness in the broad market, can also be used to accumulate holdings. Among a clutch ... More

Bombay Dyeing: Buy
FRESH exposure can be considered in the stock of Bombay Dyeing. The stock trades at about 16 times its trailing earnings per share. There is, however, room for further appreciation. While the DMT (dimethyl ... More

TECHNICAL ANALYSIS

Bearish outlook on Reliance stays
Reliance Ind (Rs 523.6): Contrary to expectations, a distinctly positive trend prevailed last week. The share buy back proposal helped the stock recover. The upward trend witnessed last week has not however negated the bearish outlook. ... More

Near-term outlook turns positive
Preferred view: The market sentiment remained distinctly bullish during the week. Not only did the Nifty manage to hold above the negative trigger level of 2000, it also moved past the positive trigger level of 2050. The latter ... More

Focus of the week
The price has also moved past earlier mentioned price targets. The trend remains bullish and the stock could move to Rs 205-Rs 210 range. A drop below Rs 165 would blunt the positive outlook. Hold with a stop loss at Rs 160. Long positions may ... More

Query corner
I hold Cholamandalam Investment purchased long ago. Will it be advisable to capitalise on this stock market boom by selling my investments? P. Seshadri, Paleti Srinivas Cholamandalam Investment (Rs 71.6): It is not advisable to ... More

CARS

Music on the move
GOOD music can be intoxicating. But, thankfully, this is a perfectly legal stimulant while you are in the car. In fact, music does much to ease the strains of driving in city or on ... More

TWO/THREE WHEELERS

Honda Unicorn: A better option
I AM 24-year-old employed in a software company in Bangalore and am planning to buy a new bike. For the past six years, I have been using a Kinetic Honda DX 1991 model. I must say that riding a Kinetic Honda makes ... More

LIFE INSURANCE

ING Vysya Life's Future Perfect
ING Vysya Life has recently launched unit-linked plans, which is in keeping with the current market favour for such products. `Future Perfect' is an insurance-cum-savings plan with all the regular features of a ... More

ECONOMICS

A mental shortcut
WE make decisions based on some reference point. Behaviour finance professionals term this as the "anchoring" effect. What is anchoring? Suppose you decide to buy a second-hand car. A well-trained salesman who attends ... More

DERIVATIVES MARKETS

Upswing likely to sustain
WITH the settlement for December contracts barely a week away, activity picked up at the derivatives segment on the NSE last week. Rollover of open interest positions was also quite hectic in most of the contracts, especially the Nifty. The ... More

Using Futures/Options
The cost-of-carry model suggests that the price of futures should always be higher than the spot price; else it gives rise to arbitrage opportunities. I would be glad if you can explain why at times futures are at a discount to the spot price ... More

Margining system
NSCCL has developed a comprehensive risk containment mechanism for the Futures & Options segment. The most critical component of a risk containment mechanism for NSCCL is the online position monitoring and margining system. The actual margining ... More

Options guide

Futures guide

FIXED DEPOSITS

KCP: Blend for a year
THE fixed deposit programme of KCP can be considered by investors willing to take risk. The interest rate on offer is higher compared to other FD options available. Most manufacturing companies now offer rates between ... More

INCOME TAX

An engineer at sea counting days of residence

Claim for a second rebate

BOOKS

Business giants of the world
END of the year is the right time to look back, but here is a book that traverses two hundred years to identify 50 Companies that Changed the World, and profile the organisations, big and small, that ... More

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RIL buyback: Debating the method

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Upswing likely to sustain

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