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Sunday, September 23, 2007
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INVESTMENT WORLD

INVESTMENTS
Growing problems
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INSIGHT
Sops by way of ESOPs
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A profit-only options approach
A bull spread strategy is appropriate for investors who do not want to take a directional call on a stock, but anticipate trading within a range. More

FIIs: Keeping tabs on the movers and shakers
The current calendar year is likely to be the best for inflows from foreign institutional investors ever since FIIs started investing in the Indian stock market in the early 1990s. As of September 19, FIIs had invested $9.88 billion in the ... More

How and where they invested
FIIs seem to largely follow a stock-specific strategy. It does not matter whether the sector or industry is doing well or is an under-performer at the time of investment. More

MUTUAL FUNDS
Update
DSPML World Gold Fund, which opened for continuous purchases and sales this week, has seen a sharp appreciation in its NAV within the first couple of days of its opening. The NAV stood at Rs 12.63 per unit on September ... More

PRODUCT PRIMER
What is an ETF?
Exchange Traded Fund (ETF) is an open-ended fund that can be traded like a share on a stock exchange. It is also an index-tracking collective investment fund that aims to track the performance of the underlying index by holding a portfolio of ... More

HDFC Taxsaver: Invest
HDFC Tax Saver is a good investment candidate for investors seeking a tax-saving option, based on its three- and five-year performance records. In both periods, it outpaced its benchmark CNX-500 by a good margin. However, despite being ... More

Magnum Global Fund: Hold
Unit holders can retain their investments in Magnum Global Fund. The fund has been a stellar performer over the last three years, but in recent months has seen a slowdown. Huge inflows have caused the fund to hold significant cash ... More

JM Basic, StanChart Premier — Scoring on selection
Recent stock price gains have added significantly to equity fund returns. The top performers for a one-year-period have managed returns of between 40 per cent and 78 per cent. The rankings feature a diverse mix of funds with differing sector ... More

Market View
The US economy has shown moderations in the first half of this year. Housing activity continued to worsen and employment slackened. Though retail sales showed a pick up last month, the general trend was one of a slowdown. The after ... More

STOCKS
Nagarjuna Construction: BUY
Investors with a 3-5 year perspective can consider taking exposure to the Nagarjuna Construction stock. Expansion into high margin segments, higher net worth that would help bid for larger sized projects and the traction gained by subsidiaries ... More

Satyam Computer Services: Buy
Reasonable valuations relative to other TierI players, addition of clients with a less cyclical profile and a strong global delivery model strengthen the case for investment. More

Zee Entertainment: Hold
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Deccan Aviation: Accept
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Valuable rigs
Aban Offshore has received orders worth Rs 2,000 crore from ONGC for deployment of three rigs for a period of three years each. This followed completion of their existing contracts with ONGC. ... More

Treasure hunt
IFCI has announced the name of 10 bidders who have expressed their interest to pick up a 26 per cent stake in the institution. Names include General Electric Capital, a consortium of Sterlite Industries and Morgan Stanley & Co and ... More

Gulf dreams
Lanco Infratech has entered into an MoU with the UAE-based Gulftainer Company, to co-operate on a variety of port and transportation projects coming up for bidding. ... More

TECHNICAL ANALYSIS
Query Corner
I purchased Balrampur Chini at Rs 85 some two years ago. Since then the stock has seen a high of Rs 220. What is your take on the stock? I am a long-term investor. Vimal BhatiaBalrampur ... More

Index Outlook
Mr Ben Bernanke’s largesse sparked a boisterous party in markets across the globe last week. The Sensex used this impetus to clamber atop the 16000 peak and is now eyeing the next summit at 17000 that appears to be well within reach. ... More

Reliance
The Reliance Industries stock led from the front last week, leading the charge with 11 per cent gain. The shallow correction witnessed since early September can now be labelled as the second wave from the Rs 1,700 trough. The target for this ... More

SBI
SBI stock moved higher after a protracted running correction last Wednesday; past our medium term target of Rs 1,787. The near term outlook for the stock is positive as long as it trades above Rs 1,745. But negative divergence in ... More

Tata Steel
Despite a relatively muted performance, Tata Steel emulated the other pivotals in rallying to a record peak last week. The fourth wave from the Rs 533 low ended last week and the fifth wave can now take the stock higher to Rs 768 and ... More

Infosys
Though the down trend that commenced in February continues to be in force, the sideways move between Rs 1,700 and Rs 1,950 could be a terminal corrective preceding an upward reversal. Investors need not fret as long as the stock remains above ... More

Bharti Airtel
The short-term correction in Bharti Airtel halted above the support at Rs 800 and the stock has resumed its uptrend, as we had anticipated. The targets for this move are Rs 894, Rs 948 and then Rs 1,034. Partial profits on short-term ... More

Satyam Computer
The up-move from the August 22 trough turned out to be a dead cat bounce and contrary to our expectation, Satyam Computers is once more testing the intermediate term support at Rs 400. Friday’s recovery from an intra day low of Rs 401 ... More

Consider shorting Nifty Sept futures
More

Trader's Corner
An alert investor/trader would know intuitively when the markets are nearing a peak or about to form a significant bottom. For instance, I would know that the market is about to form a long-term top when my sedate, academically oriented ... More

CARS
Now a plusher, safer City
To coincide withthe 10thanniversary ofHonda'sintroduction of theCity in India, all ofthe variants of theZX now get new,additional comfortand safety features. More

TWO/THREE WHEELERS
Bajaj XCD: Value upgrade at entry level
With the launch of the new XCD, Bajaj claims to have identified a big future trend in the entry-level bike segment — a shift in customer preference from 100cc to 125cc. The rationale behind the new XCD seems simple: Provide premium features and fuel-efficiency at entry-level prices. More

Bajaj Auto's tech focus pays off
Bajaj Auto’s investments into building a strong in-house research and development department was initially focused at enabling the company climb out of its dependence on geared scooters, a rapidly falling segment during the late 1990s ... More

ECONOMICS
De-congesting traffic, the simple way
The other day, the driver of the auto that we hired demanded a tariff which was twice the “normal fare”. His justification for extortion was that the traffic was heavy. In one way, extortionist auto-drivers like him may be the ... More

STOCK MARKETS
Prominent bulk deals on NSE & BSE
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Baskets of X
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Bull's Eye
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  • What’s Ahead

    FOREIGN INSTITUTIONAL INVESTORS
    SMART MESSAGE
    Track the big guys
    More

    INCOME TAX
    Father’s loan for daughter’s education
    I have availed an educational term loan for my daughter’s education. I am paying around Rs 24,000 per annum as interest on the said loan. Will it be possible for me to deduct the said interest paid ... More

    IPOS
    Supreme Infrastructure India: Avoid
    More

    BOOKS
    Not easy to sell family business
    Some entrepreneurs start a business, build it up, sell and start all over again. To most owners, though, it is not easy to decide about selling off, says Peter Leach in ‘Family Businesses: The Essentials’ (More


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    Union Budget 2007-08

    Railway Budget 2007-2008

    Economic Survey 2006-2007

    Other Top Stories
    How and where they invested

    Query Corner

    A profit-only options approach

    Consider shorting Nifty Sept futures

    Sops by way of ESOPs

    Bajaj XCD: Value upgrade at entry level

    Satyam Computer Services: Buy

    Looking back
    Sep. 16-Sep. 22
    ‘Power, railway expansion, airports to drive capex spending’

    Query Corner

    Reliance, Bharti, Infosys widely held across equity portfolios

    Bank of India: Buy


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