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Sunday, August 05, 2007
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INVESTMENT WORLD

STOCKS
Indian Hotels: Buy
An investment can be considered in the stock of Indian Hotels, trading at a price earnings multiple of 26 times its trailing per-share earnings (on a stand-alone basis). The valuation is more attractive on a consolidated basis (22 times 2006- ... More

Crompton Greaves: Buy
With sizeable domestic business opportunities and an increasing contribution from overseas subsidiaries, earnings visibility is high. More

What’s ahead?
Greaves Cotton, HCL Technologies, RS Software and Sundaram Clayton are some companies that are expected to announce their June quarter results next week. Given the snowballing impact of US sub-prime market rout, investors and ... More

Tech Mahindra: Buy
A roster of blue-chip clients and focus on Europe where growth prospects for telecom services are strong, make the company’s stock a good investment option. More

Satyam scores
Satyam Computers has signed two multimillion dollar contracts to support FIFA and its major forthcoming events. It will develop a customised Event Management System and an Extranet and Intranet for FIFA over the next 12 months, ... More

Punj Lloyd bags order
Punj Lloyd’s subsidiary, Sembawang Engineers and Constructors (Sembawang) have secured a contract worth about Rs 660 crore for sub-structural works at the Sentosa Integrated Resort Development. The project includes construction, ... More

Biocon in Dubai
Biocon has signed a MoU with Neopharma to establish Neobiocon, a joint venture company in Dubai’s biotechnology and research park. The venture expands Biocon’s global network to provide bio therapeutics. ... More

Nursing a dream
Apollo Hospitals has formed a joint venture company with a unit of the Mauritius-based British American Investment (BAI), to set up a multi-speciality hospital in the country. In the joint venture, Apollo will hold 26 per cent while the rest ... More

TECHNICAL ANALYSIS
Query Corner
I have purchased IDBI at Rs 114 per share and shares of HPCL at Rs 275 per share. Will you please explain the short-term and medium-term prospects of these stocks? Ramesh. RIDBI (Rs 108.15): IDBI has been struggling to ... More

Index Outlook
The capricious ways of the stock markets were amply on display last week. Instead of preparing for the 16K celebrations, market participants were fighting with their backs to the wall, defending 15000. They managed to pull the Sensex back from ... More

Trader's Corner
Anyone who has spent more than five years watching the stock markets would know that initiating that perfect short position at the market’s peak or going long at the trough is an elusive dream. Trepidation and nervousness caused by ... More

Weakness in Reliance
The savage cut received by RIL on Wednesday has resulted in an evening star pattern in the weekly chart. The stock reversed from the 50-day moving average line at Rs 1,750 last week but the gravestone doji made on Friday indicates lack of ... More

SBI
SBI recorded a 9 per cent gain last week. The movement last week has negated our assumption that a 5-wave impulse move from the March low has been completed. We are back to wondering if this is a consolidation in an up-trend or a terminal ... More

Tata Steel
The long-legged doji in the weekly chart indicates that the stock could swing either way next week. The intra-week low of Rs 620 has retraced 33 per cent of the gains recorded from the March trough. That completes the minimum retracement ... More

Infosys
Infosys took a tentative step lower last week. The stock is now poised just above the lower boundary of its current trading range at Rs 1,900. The momentum indicators in both the daily as well as the weekly chart are displaying ... More

Bharti Airtel
Bharti Airtel has been moving in an upward moving trend channel since February. The current correction from the peak at Rs 960 has dragged the stock towards the lower boundary of this channel. The presence of the 50-DMA also at Rs 856 makes ... More

ONGC
ONGC recorded a 2 per cent loss last week in line with our expectation. Momentum indicators are implying a weak trend for the short-term. The down-move in ONGC last week was halted by the long term average positioned at Rs 870. The medium term ... More

CARS
Sonata Embera diesel automatic — Half the effort, twice the fun
Driving the new Sonata Embera CRDi in automatic mode was enjoyable. The best feature of this car is the automatic transmission, which is designed not to override the manual selection while driving in H-matic mode. More

Toyota’s road safety drive
To create awareness about traffic safety among the drivers of tomorrow (children), Toyota Kirloskar Motor (TKM) has launched an ambitious road safety education programme. The programme is set to cover over 20,000 school children across ... More

INSIGHT
Challenging first quarter, managed well
Allaying market fears of a reversal in fortunes, India Inc has put out a robust earnings card for the June quarter. Despite last year’s bigger base, Corporate India scored a 17 per cent increase in revenues, while earnings grew about 36 per ... More

MUTUAL FUNDS
Absolute truths on relative returns
Jayesh is puzzled by his mutual fund update. The markets underwent a major downward correction from the time he invested. Yet the fund he invested in was at the top of the rankings. Can a fund with a negative performance be at the top? ... More

Fund Talk
I am an employee aged 41 with salary of Rs 2.4 lakh per year. I have about Rs 11 lakh in mutual fund portfolio. My investment time horizon is 20 years. I am saving for retirement. I am saving Rs 6,000 per month through SIP in HDFC TaxSaver. I ... More

Sundaram CAPEX Opportunities — Favouring metals, energy
Sundaram BNP Paribas CAPEX Opportunities, among the top performers over the past year, focusses not so much on companies that are in a capital spending phase but on those suppliers of products and services that benefit most from the investment ... More

ICICI Prudential Dynamic Plan: Hold
More

HDFC Equity Fund: Invest
HDFC Equity Fund appears to be a good investment option for investors looking for a diversified large cap fund. The fund has consistently outpaced its benchmark, the CNX 500, over a five-year period. Over a three-year period, it has generated ... More

  • Update

    PHARMACEUTICALS
    Take Solutions — IPO: Invest at cut-off
    Though the asking price is stiff, the focus on niche segments and presence in a relatively uncontested market are positives. More

    ECONOMICS
    Grandmother psychology

    My friend’s grandmother has a fixation for pricey goods. If she wants to buy, say, a box of chocolates, she will choose the costliest among the ones available in a superstore. As is typical of elderly people, ... More

    STOCK MARKETS
    Baskets of X
    More

    Bull's Eye
    More

    Prominent bulk deals on NSE and BSE
    More

    COMMODITY MARKETS
    Role of margin money
    In an earlier article in these columns, we looked at Forward and Futures contracts and saw how futures transactions are carried out through recognised exchanges and regulated. Under the Forward Contracts (Regulation) Act, 1952, forward ... More

    DERIVATIVES MARKETS
    Nifty continues in uncertain terrain
    More

    INTERVIEW
    Take stock of the markets
    Do stock markets lead or follow the business cycle trend? “They lead it,” assert Deborah Owen and Robin Griffiths, authors of Mapping the Markets ( www.vivagroupindia.com). ... More

    Bullish on emerging markets
    Despite the short-term concerns stemming from the collapse in the US housing market, we remain positive on the prospects of emerging market stocks. More

    INCOME TAX
    Teacher with a tax problem
    I am a teacher and my income from salary after taking into account all deductions under Section 80-C is Rs 92,000. I also have a profit of Rs 7,000 from dealing in shares, which were held by me for a period not exceeding 12 ... More

    IPOS
    KPR Mills — IPO: Avoid

    Investors can avoid the initial public offer from KPR Mills as the offer price appears stiff. At the price band of Rs 225-265, the offer is valued at about 12-14 times its 2006-07 per-share earnings. On an expanded equity base, ... More

    OUTLOOK
    Market View
    While there was widespread belief that RBI would remove the Liquidity Adjustment facility (LAF) corridor or put a higher ceiling to the current limit of Rs 3000 crore, once again RBI Governor has surprised the market by putting no limit on LAF ... More

    PEOPLE
    Investment Nuggets
    Driven to the brink of personal and business bankruptcy in 1991, the story of New York real-estate magnate Mr Donald John Trump has ups and downs that are unexpected for someone born with a silver spoon. He is the CEO of Trump ... More

    BOOKS
    The ROC formula
    Managers should ROC around the clock, say Don Peppers and Martha Rogers in ‘Return on Customer’ ( www.crosswordbookstores.com). ROC, they declare, ... More


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    Union Budget 2007-08

    Railway Budget 2007-2008

    Economic Survey 2006-2007

    Top Stories
    Bullish on emerging markets

    Query Corner

    Nifty continues in uncertain terrain

    Sonata Embera diesel automatic — Half the effort, twice the fun

    Take stock of the markets

    Role of margin money

    Looking back
    Jul. 29-Aug. 4
    Volatile conditions may continue

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