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Sunday, September 22, 2002

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MUTUAL FUNDS


Evaluating mutual fund costs: Initial issue expenses
HOW do you choose one mutual fund scheme over another? You will, undoubtedly, pore over its performance track record, dissect the credentials of its fund manager and ponder over whether you are comfortable with its investment style. But do you ... More

UTI Regular Income Scheme: Unattractive
THE UTI Regular Income Scheme is an open-end fund designed to invest a minimum of 90 per cent of its assets in debt instruments, with the balance in equities. The fund is currently open for subscription. The offer opened on September 12 and ... More

Birla Mid-Cap Fund: Unattractive
INVESTMENTS in the new Birla Mid-Cap Fund can be avoided now. There is, no doubt, a place for such funds. But in the backdrop of the rally in mid-cap stocks in 2002, the timing could prove detrimental. This is despite the fact that mid-cap stocks ... More

Bonds for UTI investors
Investors in the assured return schemes of the Unit Trust of India will be offered an option to take either cash or tax-free bonds. The latter will be the 7 per cent tax-free bonds launched on October 1. But the Government has indicated that no ... More

Sundaram Balanced Fund: Hold
IN THE two-and-a-half years since launch, Sundaram Balanced Fund comfortably outperformed its balanced benchmark, though it generated lower returns than some of the top-performing balanced funds, such as Zurich India Prudence Fund. Investors can ... More

Dhanavarsha (13): Set for premature redemption
LIC Mutual Fund's assured return scheme Dhanavarsha (13) is set to be redeemed prematurely on September 30. The units will be redeemed at NAV on this date, at least at Rs 10 per unit for the monthly / yearly income options and at the NAV for the ... More

UTI Petro Fund: Hold
INVESTORS in UTI Petro Fund can stay invested. The fund's NAV has declined sharply in the wake of the Government's decision to put off disinvestments in the oil-refining sector. Stocks such as BPCL and HPCL, the fund's mainstays, dipped more than ... More

UTI Index Select Equity Fund: Hold/Avoid fresh exposures
INVESTORS in the UTI Index Select Equity Fund can stay invested for the present if they find the scheme's positioning in line with their investment objective. The fund has, within the confines of its objective, done fairly well by outperforming ... More

Bonds for MIP investors
THE proposal to issue 7 per cent tax-free bonds to investors in the monthly income plans of the UTI that will mature over the next few years may not find favour with investors. That is so because there are better options in the market. The ... More

K-30: Hold
INVESTORS in the open-end growth scheme, K-30 of Kotak Mahindra Mutual Fund can stay invested and use any uptrend in the market to re-evaluate their exposures. The fund's overall performance since December 1998 has been modest, though it stayed ... More

STOCK MARKETS


1-for-4 reverse split in Satyam Infoway ADS
SATYAM Infoway Ltd has announced that its board of directors has approved a 1-for-4 reverse split of the company's American Depositary Shares (ADS), which are listed on the Nasdaq. This is being done to meet the minimum bid price requirements of ... More

Protecting the markets
THE Finance Ministry appears determined to contain the fallout of the US-64 crisis on the equity market. If large-scale redemptions from US-64 happen as expected in May and June 2003, it could have an adverse impact on the stock market. This may ... More

Cracking the Nifty mould too often
IN WHAT has almost become a chore now, the S&P CNX Nifty Index (Nifty) has had one more set of changes in the past week. This is the third recast in 2002. The number of changes to the basket has almost made it a quasi-actively managed portfolio ... More

CNBC takes off Hinduja share quotes
MUMBAI: CNBC India has said it had withdrawn the share quotes of Hinduja group companies as well as the advertising spots of Gulf Oil from the channel, in protest against Incablenet `blacking out' the channel. According to a CNBC India ... More

DERIVATIVES MARKETS


PSU petro stocks remain active
ADVERSELY impacted by the growing opposition within the Government to the disinvestment programme and Standard & Poor's downgrade of India's rupee denominated debt, the stock market indices finished the week on a weak note. The BSE Sensitive ... More

Why puts are costlier than calls?
PUTS are typically priced higher than calls. The October 230 Satyam puts, for instance, carry an implied volatility (vols) of 39 per cent against 36 per cent for the 230 calls (implied vols is the output you get if you input data into an option ... More

Exercising option and selling
I SAW your writeup 'In-the-money options', Sunday, the 15th September. You say that a 3000 expiry option which is deep in the money at 3450 should be held on for further rise or fall which may not be true. Options per se is not an instrument used ... More

REGULATORY BODIES & RULINGS


JPC probe into CSE transactions — Haribhakti to begin fact-finding exercise
HARIBHAKTI & Co, the consulting firm engaged by Stock Holding Corporation of India Ltd (SHCIL) to report, inter alia, on the fallout of certain transactions on the Calcutta Stock Exchange, has visited Kolkata for the first time, marking ... More

JPC member questions current auditor appointment system
A MEMBER of the Joint Parliamentary Committee (JPC) probing the stock market scam of March 2001 today questioned the suitability of the existing system of appointment of statutory auditors for public limited companies in the country. "Though ... More

COMMENTARY


Dreary outlook for key pivotals
AS observed last week, the Nifty (969.6) appears to be headed towards the target zone at 945-950. In line with expectations, the close below 985 imparted weak undertone. On the upside, the index could face resistance around the 980-983 band. ... More

Depressed sentiment
THE hangover of the delayed privatisation plans of the Central Government and bearishness in the US markets continued to affect the stockmarkets in Mumbai. Towards the latter half of the week, the sentiment was further depressed by the rating ... More

Pare exposure in Bajaj Auto
THE stock market went through a distinctly bearish phase last week. The Sensex registered a net week-on-week drop of 71 points while the NSE Nifty dropped by about 22.4 points. The weakness in American bourses affected domestic market sentiment. ... More

United Phosphorus, Zee move southward
THE markets turned bearish this week, with the exception of Tuesday that saw the markets going up ephemerally due to the rally of technology stocks and select PSUs. Grim US economic data, firm stance taken by the US on Iraq, poor rating given by ... More

Nasdaq: Weak undertone
THE American bourses passed through yet another week that was marked by distinct bearishness. The benchmark indices registered week-on-week loss for the fourth week in succession. The Dow Jones Industrial Average slipped below the psychological ... More

RECOMMENDATION


Nedungadi's proposed merger with PNB: Not a credit-worthy proposition
Recommendation
PNB: Hold
Nedungadi Bank: Sell More

Ballarpur Industries: Hold
SHAREHOLDERS can stay invested in the Ballarpur Industries' stock This may enable them to take advantage of any upside in the valuation of the stock if the recovery in the paper industry takes firm hold. Capped upside: But the upside ... More

Nifty companies: Struggling to stay ahead
THE report card for the 50 companies comprising the Nifty index for the year-ended 2001-02 indicates that Corporate India has been struggling to pep up demand in the economy. Meanwhile, it has been tightening up its costs and improving internal ... More

NRB Bearings: Hold
THE recent improvement in automobile production has resulted in an improvement in business prospects for quite a few companies with exposure to the auto sector. NRB Bearings is one such company whose financial performance has seen sharp ... More

Monsanto India: Hold
WITH Pharmacia Inc. recently divesting its residual stake in Monsanto Inc. (the parent of Monsanto India), the uncertainty about a change in ownership of Monsanto India at the global level has dissipated. But this fiscal, Monsanto India's ... More

Atlas Copco: Capitalise on the rise
CONSIDERING the spurt in the share price of Atlas Copco in the last four months and the low liquidity in the stock, conservative investors can book profits at the current market price of Rs 180. The share price has doubled in 2002 from around Rs ... More


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