The Hindu Business Line : Sunday, October 23, 2005

Crisil: Buy
Crisil's acquisitions are proving to be significantly accretive to earnings making the stock attractive from the valuation perspective. Crisil is into a number of businesses such as rating of debt instruments, infrastructure advisory, fund ... More

Zee Telefilms: Sell
SHAREHOLDERS of Zee Telefilms may reduce exposures, as we expect the company's performance to remain lacklustre; there are no visible triggers that could serve as growth drivers. The stock has declined sharply following ... More

Yes Bank: Buy
FRESH investments in the Yes Bank stock can be considered. Since its listing in July 2005, the stock has appreciated by 43 per cent. The valuation is still attractive considering the growth prospects for a small bank ... More

TVS Srichakra: Book profits
INVESTORS in TVS Srichakra, especially those who have entered at fairly lower levels, may pare exposure. The recent trend of rising sales and pressure on profitability is likely to continue in the near term. The scope ... More

Petronet LNG: Hold
SHAREHOLDERS in Petronet LNG can stay invested for now. The stock has run up sharply in recent months but further gains can be had in the medium term. The company has wiped out its accumulated losses and is doubling the ... More

INSIGHT

Paint stocks take on a richer hue
IT may not boast the visibility of information technology services or the interest associated with a high-growth sector such as retailing, but the paint industry has proved it is certainly not trailing behind in ... More

Mid-caps: Going beyond their face value
Contrary to the popular notion, mid-cap stocks are not instant money-spinners. They are only for the patient investor and require a fairly long investment horizon. More

Behind the correction — Global reasons dominate
Global linkages, and not fundamentals, are causing undue volatility in stock prices in the short term. Domestic investors, too, seem partly to blame as their entire behaviour is reactive. Better industrial performance and higher economic growth can b reak this cycle, but fiscal and monetary policies should facilitate the right environment for this. More

INVESTMENT QUOTIENT

Investment quiz
1. Nifty futures are traded on the stock exchange of which country apart from India, in the National Stock Exchange? 2. The hundred-dollar note is the highest denominated currency in the US. What is it popularly known as? 3. Having ... More

OPEN OFFERS

Wendt India: Reject
SHAREHOLDERS of Wendt India may reject the open offer made by the Wendt group. As the fundamentals appear robust and the growth prospects bright, there may be scope for appreciation over a one- to two-year period. ... More

Sangam India: Reject
SHAREHOLDERS need not tender their shares in the open offer for Sangam India. The offer price of Rs 47.1 is below the current market price. Holdings in the stock can be retained for the time being. The company has ... More

COURTS/LEGAL ISSUES

Insurance policy cancelled `behind the back'
AN INTERESTING question of `vast legal importance' came up before the Kerala High Court in Oriental Insurance Co Ltd vs Sivankutty. A Division Bench of the court had sent this poser for reference: "Whether the insurer is liable to pay ... More

MUTUAL FUNDS

`Derivatives require more attention than small stocks'
A more urgent focus is required on the effect of a huge derivatives market on the cash market — given the magnitude of open positions and contracts. More

Kotak Mid-Cap: Hold
UNITHOLDERS of Kotak Mid-Cap can retain their holdings. The fund has delivered a return of 32 per cent since its launch in February. Its performance over the past six months closely matches that of several new mid-cap funds launched over the past ... More

Standard Chartered Classic Equity: Hold
INVESTORS in Standard Chartered Classic Equity can stay with the fund. Although its performance has been unimpressive, it would be better to give the fund manager more time to prove his case. Performance: Classic Equity was launched ... More

FT India Life Stage Fund of Funds: Invest
THE FT India Life Stage Fund of Funds is a good investment option for investors who would like to own a portfolio of equity and debt funds, without actively managing their portfolio. The Life Stage Fund of Funds offers an entry point into six ... More

Dividend spree from MFs
The fund will focus on sectors that can benefit from the boom in consumer demand for services. Emerging service sectors such as retail, BPO, aviation and tourism will be targeted by the fund apart from conventional services such as software ... More

FUND TALK
Timing your SIPs right
I am a retired person and have invested 5 per cent of my savings in mutual funds: UTI Master Share, UTI Brand Value, UTI Growth & Value, Reliance Equity Opportunities and Standard Chartered Classic Equity, aggregating Rs 2 lakh. I feel that ... More

PORTFOLIO MOVES
Chola Multi-Cap
LARGE-CAP stocks have survived the recent decline in stock values much better than the mid- and small-cap stocks. In the scenario, the stance that the various multi-cap funds have adopted, of retaining a significant large-cap exposure, has stood ... More

TECHNICAL ANALYSIS

Query Corner
Should I hold or sell Ennore Foundries bought at Rs 190? — Shridhar Bhat Ennore Foundries (Rs 143.6): Though there is a possibility of a rally to Rs 165-170, such a pull back would be in the nature of a technical correction. ... More

Positive short-term outlook
Preferred view: The market action was in line with expectations. After moving to the short-term resistance zone at 2500-2510, the index turned weak since Tuesday. As anticipated, the drop below 2430-2440 resulted in a sharp ... More

Moderate upside in pivotal stocks
SBI (Rs 887): The stock ruled weak and also dropped to the target zone of Rs 845-850. The recent price pattern does not indicate the completion of the downtrend. Yet another test of the support zone at Rs 845-850 appears likely. Investors ... More

Focus of the week
ACC (Rs 446.2): After touching a high of Rs 501, the stock has been in a corrective phase in the past few weeks. The recent downtrend does not appear complete. There is a possibility of the resumption of the downtrend on the completion ... More

CARS

How to finance a car purchase
NEXT to a house, owning a car is probably uppermost on the wish list of most middle- and upper-class households. New cars are flooding the market, with variants to suit every segment. The auto boom has been catalysed by cheaper finance. ... More

Beware buying used cars during floods
I live in Pune and am in the market for a used car. Though this will be my first car, I would like to buy a sparingly used sedan in the Rs 5-6 lakh range. My colleagues warn me that this time of the year may not be the best period to be in the ... More

WHEELS N' DEALS
BMW to set up plant near Chennai
BMW of Germany is to set up a plant on the outskirts of Chennai at a cost of 20 million euros (about Rs 106 crore). The facility will roll out BMW's 3 and 5 Series, which would be positioned against Merc's C and E classes respectively. BMW's ... More

Maruti tops in J.D. Power study
For the sixth straight year, Maruti topped the J. D. Power Asia Pacific's customer satisfaction study for 2005. Mahindra emerged the most improved brand in its study; Ford and Honda were the only others to have increased their scores. The ... More

Hyundai plans diesel engine plant
The diesel space in the small car segment is hotting up with a turbocharged Indica from Tata Motor, Maruti's upcoming diesel engine plant, and Hyundai considering setting up a similar facility. Hyundai plans to capitalise on the preference for ... More

STOCK MARKETS

Stop-loss!
CONSIDER this. Your friend has bought 2,000 shares of Karur Vysya Bank at Rs 575 per share and 2,000 shares of Tata Steel at Rs 410 per share. Assume that his portfolio generated profits of Rs 2.5 lakh this month from purchase and sale of 10 ... More

Letter of offer and pricing
The shares of the target company will be deemed to be infrequently traded if the annualised trading turnover in that share during the preceding six calendar months prior to the month in which the Public Announcement is made is less than 5 per cent (b y number of shares) of the listed shares. More

DERIVATIVES MARKETS

F&O POINTERS
Nifty at critical juncture
AFTER witnessing depressed sentiment in the earlier part of the week, the Nifty almost wiped its entire losses on Friday aided by a smart turnaround in sentiment and placing the Nifty in a critical juncture. For the week ahead, we expect the ... More

Suzlon makes debut
WITH settlement round the corner, the derivative segment at the NSE witnessed robust activity last week. Despite depressed sentiment during most part of the week, the average daily turnover improved to Rs 22,336 crore against the previous ... More

INTERVIEW

`Either you are big or niche or dead'
Mr Akshaya Bhargava, CEO and MD, Progeon
ARTICULATE, composed and knowledgeable. Presenting Mr Akshaya Bhargava, CEO and MD spearheading Progeon, the BPO subsidiary of Infosys Technologies. Charting the BPO (business process outsourcing) strategy of handling end-to-end processes for ... More

INCOME TAX

More on the `fringe' menu
I UNDERSTAND that individuals are not subject to the fringe benefit tax (FBT). What is the position with regard to a proprietary concern? In the case of partnership firms, companies and so on, will the FBT be payable even in respect of telephones ... More

NSC interest
WILL interest on National Savings Certificates (NSC) qualify for deduction under Section 80C? V. Dundur Reply Under the NSC VIII issue, which is in operation now, the interest, except in the last year, is not paid but credited to the ... More

IPOS

Bannari Amman Spinning: Invest at cut-off
INVESTORS could consider subscribing to the initial public offer of Bannari Amman Spinning. At the upper end of the price band, the offer values the stock at about 16 times its earnings per share on post-offer equity, ... More

Prithvi Information Solutions: Avoid
INVESTORS can refrain from investing in the book-built initial public offering (IPO) of Prithvi Information Solutions. The price band for this offer is Rs 250 to Rs 270 per share. The company's onsite business ... More

Vikash Metal and Power: Avoid
INVESTORS can give this public offer from Vikash Metal and Power (VMP) a miss as the risks outweigh the scope for capital appreciation in the medium term. Given the stiff valuations, a lacklustre performance, ... More

PBA Infrastructure: Invest
INVESTORS can subscribe to the initial public offer of PBA Infrastructure. A comfortable order book and consistent financial track record are positives for this construction company that operates in the roads and ... More

RIGHTS ISSUE

APW President Systems: Invest
As equity will rise by a modest 20 per cent and the performance in the first four months of this year points to a growth of 30-40-per cent in profits, the time-lag in earnings from new facilities is unlikely to weigh on the valuation of the stock . More

BOOKS

Success is a way of being, not just a shopping list
SO many apparently intelligent people chase after success `in the most foolhardy and bird-brained manner', and pay for `cock-eyed success' dearly — "with peptic ulcers, broken marriages and crazy lifestyles," writes Robert Holden in ... More

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