The Hindu Business Line : Sunday, July 24, 2005

Palio's USP is not fuel efficiency
I HAVE a few queries on a 2002 Fiat Palio 1.6 GTX I am looking to buy. It has run 17,500 km. I am looking to use this car for at least another four years without major repair work. Is this model worth buying? Is the Palio 1.6 too expensive ... More

WHEEL 'N' DEALS
The Discover tempts
BAJAJ has launched a new version of the Discover DTS-I, making it even more tempting. The 125-cc bike comes with attractive body graphics, stickers, alloy wheels and rides on the SNS (spring-in-spring) suspension at the rear. The 17-inch alloy ... More

INSIGHT

Life insurance: The cover drive
THE life insurance sector, dealing as it does with something as mundane as life and death, may lack the glamour associated with automobiles or diamond jewellery. But its growth rate could well be the envy of ... More

Why size is no problem for equity funds
Fund size is a relative metric. Size is not yet an issue for a diversified fund that can choose any stock in the Indian investment universe. The pattern of inflows into a fund and the churn in its assets play a far greater role in performance. More

Rising dividends can support valuations
Over the next few years, companies cannot afford to ignore dividends. Investors are looking for higher payouts and need the assurance of a stated dividend policy. More

Online trading: Paperless and convenient
HAVE you wanted to buy or sell a stock urgently, but could not reach your broker? Or, has your well-meaning broker disregarded a buy/sell order because he felt it was against your best interests, and you ended up losing? Such instances can really ... More

MUTUAL FUNDS

PruICICI Income Multiplier Fund: Hold
INVESTORS in PruICICI Income Multiplier Fund can stay with the fund. Its performance since its launch in February 2004 has been encouraging, and far superior to that of many monthly income plans. This confirms the ... More

SPOTLIGHT
Birla Dividend Yield Plus: Invest
INVESTING in a portfolio of high dividend-yielding stocks has repeatedly delivered good results in the Indian markets. For investors who would like to try this strategy, the Birla Dividend Yield Plus is a good ... More

MFs wary of accepting fresh applications

Reliance Capital Mutual has announced that it will not accept fresh applications for the Reliance Growth Fund after August 14, 2005 or when the corpus exceeds Rs 1,700 crore, whichever is lower. The fund will be closed for investment for a ... More

FUND TALK
How do I plan my portfolio?
Commit to SIPs in these funds on year at a time, so that you will have the flexibility to change your investment mix when you desire. More

STOCKS

Andhra Sugars: Buy
INVESTORS may consider buying in to the stock of Andhra Sugars, which at Rs 140 trades at a PE of 10 times its FY-05 earnings. The company derives revenues of about 40 per cent each from caustic soda and sugar, while energy and other ... More

i-flex Solutions: Book profits
SHAREHOLDERS may consider booking profits on part of their holdings in i-flex Solutions as the stock has run-up by over 50 per cent since the earnings announcement in end April. At Rs 920, the stock commands a rich price earnings multiple of 25 ... More

Cosmo Films: Sell
SHAREHOLDERS can sell their holdings in the Cosmo Films stock, which quotes at 15 times its earnings for FY-05 and about 1.2 times its book value. The company faces a number of challenges in its business and there are many other players in ... More

L&T: Hold
SHAREHOLDERS of Larsen & Toubro can retain their holdings in the stock. Despite the rich valuations and inconsistent order flows seen in FY-05, we remain positive on the company's ability to capitalise on imminent macro opportunities. At Rs ... More

SAIL: Buy
SHAREHOLDERS can consider fresh exposures in the stock of Steel Authority of India Ltd (SAIL). Attractive valuations, improved financial profile, gains from capacity expansion, positive earnings outlook, synergies from ... More

KPIT Cummins: Sell
SHAREHOLDERS can consider pruning their exposures in the stock of KPIT Cummins in the light of the downward revision in the revenue and post-tax earnings guidance for 2005-06 and disappointing first quarter ... More

Corporation Bank: Pare exposures
SHAREHOLDERS of Corporation Bank can consider reducing their exposure to the stock, which trades at valuations that are far superior to the stocks of other public sector banks. Corporation Bank's performance, ... More

Taj GVK: Hold
SHAREHOLDERS can hold the Taj GVK stock. Sustained buoyancy in tourist arrivals and shortage in supply of rooms in key metros are likely to ensure that the hotel industry enjoys another year of strong growth. Taj ... More

TECHNICAL ANALYSIS

Query corner
What is your opinion on Kesoram Industries and Bell Ceramics purchased at Rs 132 and Rs 30 respectively? — B. Vijay Kumar, Krishan Kumar Kesoram Industries (Rs 129.4): The sharp recovery over the past few weeks could lead ... More

Indices present bullish picture
Preferred view: The market movement was in line with expectations. The Nifty ruled firm and moved to the target zone of 2250-2300. The near-term outlook appears positive. The Nifty is headed towards the immediate resistance zone at the ... More

SBI appears on course to touch Rs 760
SBI (Rs 721.1): The share price has been moving in a trading zone in the recent weeks. The recent sideways movement is likely to end soon and the earlier uptrend is expected to resume shortly. The earlier view of a rally to Rs 755-760 is ... More

Focus of the week
Bombay Dyeing (Rs 372.1): As observed in earlier weeks, the stock is in a long-term uptrend. It could move to the Rs 415-420 range. After a sharp rally, the stock has been in a corrective mode since early April. This corrective phase ... More

CARS

Corsa Elite: Exclusive additions in the Special Edition
GENERAL Motors India has relaunched the special edition Opel Corsa 1.4 litre Elite version. GMI says that the fully loaded Corsa Elite is back on popular demand, and as with the previous special edition this too will be available in limited ... More

Cruiser in jeep's clothing
A TOYOTA Land Cruiser was imported in the name of one Simon Pavoo Paliekara, a storekeeper in Dubai, informs the text of the Mumbai tribunal's order in a recently reported case, Mahendra Kumra Kate vs Commissioner of Customs. Simon was in ... More

ECONOMICS

Potter economics?
J. K. ROWLING'S book "Harry Potter and the Half-blood prince" seems to defy the basic principles of economics! Why? You may have read reports about how teenagers stood in front of bookshops just to buy a copy on the day of the book ... More

DERIVATIVES MARKETS

Heightened rollover
The average daily turnover declined to Rs 13,656 crore against the previous week figure of Rs 15,517 crore. Hectic activity in puts was seen. Huge rollover of positions were seen in the Nifty and some frontline stocks. The Nifty August ... More

F&O POINTERS
Weak outlook for Nifty
Nifty outlook: Last week, we had expected the Nifty to remain in the 2240-2160 range and said if it crossed the 2240 barrier, it could surge to 2280 levels on the upper side, and to 2150-35 levels on the lower side if it dips below 2160. ... More

FIXED DEPOSITS

FD OPTIONS

Attractive offer from JK Paper
JK Paper: An investment can be considered in the fixed deposit programmes across tenures. As the paper business is subject to a high degree of cyclically, the longer tenures are risky. But the rates on offer appear attractive. The ... More

REGULATORY BODIES & RULINGS

What's red herring prospectus?
What is the difference between an offer document, RHP, a prospectus and an abridged prospectus? What does it mean when someone says "draft offer doc"? "Offer document" means Prospectus in the case of a public issue or offer for sale and ... More

INCOME TAX

FAQs on Fringe Benefit Tax
Section 115WA provides that the rate of tax on the value of fringe benefits will be 30 per cent. Section 2(9) of the Finance Act also provides that such rate is to be increased by a surcharge. Additional surcharge (Education Cess) will also apply ... More

Housing loan
I HAVE purchased a house at Cochin. For this purpose I had taken a housing loan from a bank. Due to reasons of employment I am constrained to stay in Bangalore. My parents and brothers are staying at my house at Cochin. Will it be possible ... More

BOOKS

`Real' isn't a four-letter word to abstain from
IF you want to get started in real estate, here is a short programme for you from Robert Shemin: "40 Days to Success in Real Estate Investing," from Wiley (www. wiley. com). "Anyone can follow these ideas and become an investor," assures Shemin. ... More

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Indices present bullish picture

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