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Sunday, December 31, 2006
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INVESTMENT WORLD

STOCKS
Marico Industries: Buy
A focus on beauty and wellness and a string of acquisitions make the stock a strong growth play, but peg up risks as well. More

Kirloskar Brothers: Buy
Investments with a long-term perspective can be considered in the stock of Kirloskar Brothers (KBL), which manufactures and exports pumps and takes up turnkey water management and irrigation projects. At current market price, the stock trades ... More

Bihar Caustic: Buy
The shift to energy-efficient membrane-cell technology would further strengthen the company's cost-competitive advantage. More

Lakshmi Machine Works: Buy
The LMW's story looks intact with robust growth in the order book, economies of scale due to high volumes and the improvement in operating margins. More

Larsen & Toubro: Buy
With a sound track record, L&T has not only managed to capitalise on the domestic infrastructure and industrial capex boom, but also successfully managed to expand its geographical footprint through strategic tie-ups. More

TECHNICAL ANALYSIS
Query Corner
Please advise whether I should hold BASF bought at Rs 240. Krishnan Seshan BASF (Rs 230.2): The stock is reacting downward after hitting a high of Rs 250 in early October. The intermediate-term outlook for this stock ... More

SBI
The movement last week concurred with our view that the downward move from the peak of Rs 1,378 has entered in to its second leg. This second wave can chart a flat or a triangle pattern and keep the price oscillating between Rs 1,300 and Rs ... More

Reliance
The stock stayed in a narrow band last week thus keeping our view unaltered. As written before, the stock is moving in an upward channel since the low of Rs 810 made in June. The lower boundary of this channel is positioned at Rs 1,220. The ... More

Index Outlook
In 2005, the Sensex broke free of the shackles that bound it to the sub-6000 level and began a tentative flight upward. In 2006, Indian markets discovered that sky is the limit. Milestones were crossed effortlessly and corrections were taken in ... More

Tata Steel
The scrip held on to the gains recorded in the previous week though it could not make any fresh progress. It remained stuck to the range between Rs 474 and Rs 488. The Rs 495 level that we had indicated last week remains an important ... More

Infosys
The stock was among the strong performers last week, recording a gain of 3 per cent. The medium-term trend in this stock is sideways. A triangle seems to be complete since the peak formed in the third week of November. It is hard to determine if ... More

ACC
The scrip continued to build on the pullback rally that is on from the low of Rs 910. The minor C of this move is on currently and has the target of Rs 1,111 and then Rs 1,179. The Rs 1,100 level is an important resistance as it falls at ... More

ONGC
The stock rose on Tuesday to an intra-week high of Rs 891 before spending the rest of the week moving sideways. Our view for this stock remains unaltered. The move from Rs 765 can be the third leg of the intermediate term rally from the low of ... More

Trader's Corner
We had discussed the scalping style of trading in last week. This week, we turn our attention towards another style of trading called swing trading. As the term denotes, swing trading is done to take advantage of one swing (or move) in the ... More

Chart Focus
We recommend a buy on the stock with a stop below the recent low at Rs 365. The correction that began from the top of Rs 630 in April could have terminated at the recent low of Rs 371. As long-term support for this stock exists in the zone ... More

INSIGHT
The thrills and spills of year 2006
2006 scores high in terms of both returns and volatility. While it proved exciting for those on the sidelines watching the market action unfold, the same cannot be said for investors holding the wrong kind of stocks. More

On target, and off
Here is an analysis of how the Busines Line research team's various calls panned out in 2006. Suffice it to say that it's been perhaps the most difficult year for stock calling, over a four-year period. Just over 300 recommendations were made ... More

Feel like a million bucks in a Maybach
The Maybach makes a statement of style, understated elegance and opulence even when it is standing still More

MUTUAL FUNDS
Magnum Global Fund: Invest
The fund's strategy and track record suggest that it is ideally suited to investors willing to assume a high degree of risk for superior return potential. More

Sundaram BNP Paribas S.M.I.L.E — Auto, construction stepped up
Sundaram BNP Paribas S.M.I.L.E (Small and Medium Indian Leading Equities) Fund is an open-ended equity fund. It defines small and mid-cap stocks as any equity stock whose market capitalisation is equal to or lower than that of the largest stock ... More

HDFC Equity Fund: Invest
HDFC Equity Fund is a reasonable investment option for risk-averse investors. The fund's three and five-year performance record is impressive, with annual returns over these periods at 41 per cent and 51 per cent respectively. It has performed ... More

Fund Talk
I want to invest Rs 1,20,000 in ELSS for tax saving. What are the parameters to select a tax-saving fund? Please suggest some good ELSS to invest. Do I invest Rs 10,000 every month in one mutual fund for 12 months or spread it across five ... More

Market View
The sharp rise in the equity market does warrant a closer look at various risks that could manifest over the short to medium term. First and foremost is the global liquidity situation, which was one of the prime reasons for the ... More

Update
Mutual fund investors investing Rs 50,000 or more will have to obtain a mutual fund identification number (MIN) effective from January 1, 2007. To comply with regulatory provisions, mutual funds have to follow enhanced Know-your-customer ... More

LIFE INSURANCE
CALL CENTRE
Rest insured
One of the by-products of the opening up of the insurance sector to private players is the emergence of the concept of Unit Linked Insurance Product (ULIP). This is an alternative to the traditional insurance plan, where, as per the IRDA ... More

STOCK MARKETS
Mere blips or serious dips?
The past couple of months have seen stock market players swing from shock and pessimism to business-as-usual, with the indices correcting sharply before staging a recovery. With so many developments to mull over, opinions were, as usual, divided ... More

The Sisyphean task of forecasting
In today's dynamic, ever-evolving, just-in-time world, predicting the market is quite a Herculean and often imprecise task. More

Value versus growth strategies
It is difficult to adhere to either a pure value or pure growth strategy. Most of the investors employ a combination of value and growth investing styles seeking growth at a reasonable price. More

Wisdom of crowds
A marine biologist, an aeronautics engineer, a doctor and a software geek got together to manage money. A year later, they comfortably beat the market. Their success can be primarily attributed to "methodological individualism." If you decide ... More

Prominent Bulk Deals
More

Baskets of X
E-mail your guess before Tuesday to: BasketsOfX@gmail.com

More

Bull's Eye
E-mail your response by Tuesday to: BullsEye@thehindu.co.in

More

7 ways to get savvier, wiser in 2007
Once you buy or sell a stock, stop fretting over your decision More

DERIVATIVES MARKETS
Nifty at critical stage; may turn weak
More

INTERVIEW
Money Talk
Mr Deepak Mehrotra, 42, is the CEO of Bharti Airtel's Karnataka circle. He has been in charge of the company's mobility services business in this circle for the past three years. He began his career in sales and marketing but ... More

EVENTS

  • Corporate Recap

    INCOME TAX
    Time no bar for LTA
    To claim tax exemption under Section 10(5) in respect of LTA (leave travel allowance) is it required that I should travel for a stipulated minimum number of days? If I travel by air to Mumbai from Chennai and return the next day, can I claim ... More

    RIGHTS ISSUE
    Birla VXL: Invest
    As the company remains heavily leveraged, interest costs will continue to be a drag on profitability in the immediate term. It might take a while before the company makes a complete turnaround. More

    PEOPLE
    SMART MESSAGE
    Activist investor
    She is one of those rare investors who can proudly claim that her daughter's education in the US was funded by selling a portion of her HLL shares! She is also an example of how you do not have to be a financial wizard to make profits in equity. ... More

    Investment Nuggets
    President of the Chicago-based Acorn Fund, run by investment firm Harris Associates, Ralph Wanger adopts theme-driven investment approach in smaller companies for the medium-to-long term. The Acorn Fund returned 17.2 per cent annually ... More

    AUTOMOBILES
    Maintaining speed on growth highway
    A year-end recap of how the auto sector fared More

    BOOKS
    The market is simple
    From understanding to mastery, the only path is to think and practise. More






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    Top Stories
    On target, and off

    Nifty at critical stage; may turn weak

    Query Corner

    Mere blips or serious dips?

    The Sisyphean task of forecasting

    Looking back
    Dec. 24-Dec. 30
    Ultra-low bids for ultra-mega power projects

    It's boom time for equipment makers with the...
    Power sector on high voltage


    The on-screen multiplier effect

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