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Sunday, August 26, 2007
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INVESTMENT WORLD

STOCKS
Alstom Projects: Buy
Investors can consider adding the stock of Alstom Projects India (Alstom) to their portfolio with a 2-3 year perspective. A sizeable order book, dominant position in the manufacture and servicing of hydro power plants and rising prominence in ... More

HCL Technologies: Buy
A focus on big ticket deals, expanding geographic coverage and an aggressive hedging policy make the company a good investment option among the large IT companies. More

KEC International: Buy
The planned merger with two group companies is likely to synergise operations and fetch a share of the telecom infrastructure market. More

Stock ideas for the medium term
ICICI Bank (Rs 834): Sub-prime concerns have trimmed valuations for this stock to a level that is at a discount to other private sector peers. A focus on retail lending, where growth prospects are strong and the possibility of value ... More

Prime Focus: Buy
High visibility on the earnings front and presence in a niche business make Prime Focus a preferred play within the media sector. More

Cementing presence
Cement major Holcim plans to further increase its 32.3 per cent stake in Ambuja Cements by acquiring another 3.9 per cent from its founding families, at Rs 154 per share. Holcim thus exceeds the limit of 5 per cent per fiscal and is obliged to ... More

Deal valley
BHEL has won contracts for setting up two units of 500 MW each in Jharkhand and two similar units in West Bengal from Damodar Valley Corporation (DVC). The contracts, valued at over Rs 6,500 crore, are for projects that are identified to ... More

Blackstone strikes
The promoters of Gokaldas Exports have entered into a share purchase agreement with private equity giant Blackstone to sell 50.10 per cent of their stake. Blackstone also proposes to mop up an additional 20 per cent — 6,875,200 equity ... More

Toy story
Hanung Toys & Textiles has signed an export order with IKEA (Sweden) for exporting soft toys/kids furnishing to the extent of Rs 600 crore (€108 million). The company expects business from IKEA to touch €15 million in the first ... More

  • What’s ahead

    INVESTMENTS
    COMMODITY CONCEPTS
    Farm realities
    India is an agrarian economy. Agriculture is the country’s largest private sector activity. Close to 60 per cent of the population (nearly 60 crore people) depend on agriculture and related activities for their livelihood. The ... More

    SMART MESSAGE
    Debt: Your portfolio’s shock absorber
    More

    INSIGHT
    Making sense of Sensex moves
    Sensational headlines such as “Sensex in free fall”, “Bloodbath on D-Street” and “Market faces mayhem” would have surely stirred up a storm in your teacup as you read the morning newspaper in recent weeks. ... More

    Taking stock after the correction
    In the sweeping correction that has caused global stock markets to tumble like nine-pins, the BSE Sensex has shed 9-10 per cent off its peak value. Stocks in sectors such as telecom, steel and construction have plummeted 15-30 per cent the past ... More

    MUTUAL FUNDS
    DSPML Top 100 Fund: Invest
    For investors looking to invest in blue chip, large-cap stocks at attractive levels, a fund such as DSPML Top 100 may be a good option. As the name suggests, the fund invests in stocks that figure in the top 100 companies when ranked by ... More

    SPOTLIGHT
    Buying opportunities in funds with large-cap focus
    With recent global events triggering a 10 per cent decline in Sensex levels, several large cap stocks have retreated significantly from their earlier highs. For investors with a 3-5 year investment horizon looking to make equity investments, ... More

    Birla Advantage Fund: Strong on capital goods
    Birla Advantage Fund is an open-ended growth fund with the objective of achieving long-term growth of capital at relatively moderate levels of risk through a diversified investment strategy. Over past five years, the performance of the fund ... More

    Fund Talk
    If an open-ended fund’s size remains very small over the years, it indicates the inability of the fund to prove reasonable performance and add to its assets. More

    Update
    The Securities and Exchange Board of India (SEBI) has come out with a proposal to waive entry load for direct applications made in mutual fund schemes. The proposal states that entry load is normally used by fund houses for meeting the ... More

    TECHNICAL ANALYSIS
    Volatility to be order of the day
    More

    Query corner
    I have purchased Gujarat Industrial Power Corporation at the rate of Rs 93. What are the prospects of this company? Shall I hold on to the share? Varghese John Gujarat Industrial Power Corporation (Rs 60.6): GIPCL continues ... More

    Index Outlook
    Global markets partied last week as the spectre of a financial crisis started dissolving in to the background. The Sensex was, however, held back from joining in the celebrations thanks to the pandemonium on the political front. The Sensex ... More

    Reliance
    Reliance has turned in a steady performance, moving in a 100-point between Rs 1,700 and Rs 1,800. The short-term trend has turned down from the peak of Rs 1,948. A cautious approach is warranted at this stage as this sideways move can be the ... More

    SBI
    SBI followed our script very closely last week, reversing below the resistance at Rs 1,600 and falling to an intra-week low of Rs 1,400. The stock has retraced 38.2 per cent of the intermediate term up-move that began at the March lows. ... More

    Tata Steel
    Tata Steel moved sideways between Rs 540 and Rs 600 in line with our expectations. The stock is holding above the long-term moving average at Rs 530. Short-term investors can hold the stock as long as it trades above this support. The ... More

    Infosys
    Infosys took a decisive step lower last week though the weekly loss was just two per cent. The 10-week ROC oscillator failing to move above the zero line implies that there could be further fall in the medium term. The tentative recovery ... More

    Bharti Airtel
    Bharti was the star performer last week with a nine per cent gain. The stock moved past our outer target of Rs 858 to record an intra-week high of Rs 872. The next resistance band for the stock lies between Rs 880 and Rs 900. Once this band is ... More

    ONGC
    ONGC moved in a tight range last week emulating the other pivotals such as Reliance Industries and Tata Steel. The medium term outlook stays negative for the stock. However, the support at Rs 743 needs to be firmly breached before the stock ... More

    Trader's corner
    Anyone who has dabbled with charts would agree that one of the easiest tools available in technical analysis is the moving average. It gives buy and sell signals at the apt juncture that can be used by traders and investors alike to take or ... More

    CARS
    Air filters: Making cars breathe easy
    More

    Question & Auto
    I am staying in Navi Mumbai and own a Hyundai Santro XP, which I bought in June 2004. It has run 16,000 km. Currently I drive the car only on Sundays and holidays. However, with my office shifting shortly, the daily commute will go up to around ... More

    ECONOMICS
    Power of context

    If you like behavioral science, observe the auto drivers, especially the ones in Chennai. Ask a driver at any auto stand to take you to your destination and he will quote almost twice the “normal rate”. The exorbitant ... More

    STOCK MARKETS
    Prominent bulk deals on NSE and BSE
    More

    Baskets of X
    More

    Bull's Eye
    More

    INTERVIEW
    Time to get into secular high-growth stocks’
    More

    ‘16,000 looks difficult for Sensex this year’
    With political troubles within the country and global uncertainties, investors are naturally reluctant to buy. But better value may emerge in the next couple of months. More

    INCOME TAX
    Counsel for faculty on royalty
    I am a faculty working in a Central University. I receive salary and also am in receipt of royalty since I have authored some text books. Until the financial year ended March 31, 2006, no tax was deducted at source on the ... More

    PEOPLE
    Investment Nuggets
    Benjamin Graham, also known as the “Father of Value Investing” and the “Dean of Wall Street”, was a pioneer in driving home to investors the importance of crunching numbers. He popularised the examination of ... More

    BOOKS
    No ‘get rich quick’
    Is all price volatility due to speculation? How do the regulators control price volatility? Do circuit breakers have a flip side? What is the structural arrangement of a mutual fund (MF)? How is NAV (net asset value) calculated? If an index fund ... More


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    Union Budget 2007-08

    Railway Budget 2007-2008

    Economic Survey 2006-2007

    Top Stories
    KEC International: Buy

    Query corner

    Time to get into secular high-growth stocks’

    ‘16,000 looks difficult for Sensex this year’

    Volatility to be order of the day

    Making sense of Sensex moves

    Looking back
    Aug. 19-Aug. 25
    Integration may be a cushion against stock market declines

    Query Corner

    ‘Underweight on India due to valuation concerns’

    Motilal Oswal Financial Services: Invest at cut-off

    What’s on the menu for tax savings

    All India needs to do now is to invest, invest and invest

    TVS Apache RTR 160 — The tribe’s new symbol of speed


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