MARKETS
OPEN OFFERS
Aventis CropScience: Accept
THOUGH the open offer price of Rs 157 per share is not very attractive, shareholders in Aventis CropScience India may tender to the offer. Even if a portion of the company's shareholders do so, it is likely to reduce the liquidity in the stock ...
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MUTUAL FUNDS
Growth pangs in fund industry
THE Indian mutual fund industry is hardly a decade old. While it does not account for a significant portion of the Indian savings, especially household savings, it is undergoing substantial changes with the prospect of a few large players making ...
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New AMC for UTI-II
THE new asset management company for UTI-II will be formed by Punjab National Bank, State Bank of India, Bank of Baroda and Life Insurance Corporation. UTI-II will comprise the assets of the UTI's NAV-based schemes. The move to float the AMC ...
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Birla Mutual Fund plans to outsource fund accounting
BIRLA Mutual Fund has proposed to outsource fund accounting for all its 14 domestic schemes. It has initiated talks on the subject with two major fund accounting service providers - Deutsche Bank and J P Morgan. The outsourcing proposal is ...
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UTI's stake in banking arm to go to UTI-I
UNIT Trust of India's 42 per cent shareholding in UTI Bank will be transferred to UTI-I after the public sector mutual fund is split into two under a Government-sponsored rehab package. A senior official of the bank said the promoters' holding ...
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JM Mutual plans bonus issue for gilts scheme
JM Mutual is working on a bonus issue for investors in its G-sec fund, said to be a first of sorts from any fund house in the private sector. While the bonus ratio is being kept as a closely-guarded secret, sources aware of developments suggest ...
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Kotak Mahindra K-30: Switch
INVESTORS in Kotak K-30 can consider switching out of the scheme. The fund is morphing into an asset allocation fund rather than a strict diversified equity fund. The change in strategy is in tune with the change in fundamental attributes of the ...
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UTI Master Value Unit Plan: Hold
UNITHOLDERS in the Master Value Unit Plan (MVUP), the close end equity fund from the Unit Trust of India can stay with in the fund for now. MVUP is proposed to be made open-ended from January 1, 2003. Thereafter, unitholders will have the option ...
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Tactical funds need support
TACTICAL balanced funds, launched recently, appear to be worthy ideas that seem to suffer solely because of the built-in passive equity component. This may not be solely the fault of the asset management companies. In fact, they may have had no ...
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K-Bond Deposit Plan: Invest
THE K Bond Deposit Plan (growth) returned 14.45 per cent since last November. Investors can take small exposures in the fund. The recommendation is based on the following factors: The fund's portfolio consists of corporate bonds, and ...
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Prudential ICICI Power: Hold
INVESTORS in Prudential ICICI Power can stay with the fund. Its performance last year has been impressive relative to that of its peers. That has also given a sizeable lift to its longer-term performance record, which has been inferior to that of ...
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CONSUMER FINANCE
Loans against shares — Using equity to good effect
YOU are urgently in need of funds to tide over a contingency, but your money is locked in select equities. With depressed stock market conditions, you are not too keen to dispose them off, as you think they hold considerable upside potential. ...
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DERIVATIVES MARKETS
Tech stocks in limelight
EQUITIES firmed up last week on the heels of significant buying in blue chips. It is difficult to pinpoint the reason for the surge in investment. All that can be said with a degree of certainty is that investors perceive value in blue chips once ...
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Where derivative markets should go
SEBI Advisory Committee on Derivatives under the chairmanship of Prof. J.R. Varma submitted its report on the "Development and Regulation of Derivative Market in India" with the following recommendations: Derivative Products: SEBI and ...
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Explaining volatility smile
A RECENT NSE publication on the Indian capital market carries a small article on the volatility smile in options. What is volatility smile? If you plot the implied volatilities of all the strike prices of options of a particular maturity (say, ...
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REGULATORY BODIES & RULINGS
Grasim open offer for L&T — SEBI may slap notice on Morgan Stanley
THE Securities and Exchange Board of India is likely to issue a show-cause notice to J.M. Morgan Stanley, merchant banker to the Grasim open offer to L&T shareholders, for the delay in disclosing the regulator's advice to put on hold the open ...
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L&T open offer — SEBI rightly puts Grasim on the mat
THE Securities and Exchange Board of India has taken the right course in putting on hold Grasim's open offer at Rs 190 per share for Larsen & Toubro. SEBI had initially failed to critically evaluate the Grasim-Reliance deal (priced at Rs 306 per ...
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COMMENTARY
Book profit in Satyam
NIFTY (1020.15): The index witnessed a strong uptrend during the week gone by. As anticipated, the index touched the target zone of 1015-1020 mentioned last week. As of now, the near-term trend continues to remain positive. Existing ...
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Arvind Mills perks up over 10 pc
IDBI Bank (Rs 21): The stock price of IDBI Bank, went up this week by 11.3 per cent. This has to be viewed in the context of the interest displayed by foreign banks and financial institutions in this stock since the Government announced a ...
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Positive outlook for Sterlite Opticals
THE stock market sentiment was distinctly bullish during the week gone by. The Sensex has also convincingly broken above the downward sloping trend line, which also indicates bullish undertone. Sensex (3141.61): Technically, the Sensex ...
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Nasdaq: Uptrend in force
AFTER a relatively subdued beginning, the market sentiment at the American bourses improved as the week progressed. Flow of weak economic data coupled with earnings warning from Home Depot affected market sentiment on the first two trading days ...
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RECOMMENDATION
Fertiliser stocks: It can only get better
FERTILISER stocks, which witnessed a brief surge between March and June 2002 on expectations of a "normal" monsoon and a change in the fertiliser policy, have since dropped. After a promising start to the year, DAP and other complex fertiliser ...
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SBI: Hold/Buy on declines
SHAREHOLDERS of State Bank of India can hold on to the stock. The improving financial ratios of the bank vis-a-vis its levels of non-performing assets and operational costs indicate the scope for further improvement in profitability. This ...
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Indian Oil Corporation: Hold
THE first question that strikes one about the second quarter performance of Indian Oil Corporation is: How has the company managed a five-fold jump in net profits to Rs 2,513.69 crore when turnover has risen by a piffling 4.35 per cent in the ...
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Blue Dart: Buy
INVESTORS who are not averse to taking risks can consider an exposure to the stock of Blue Dart Express, which trades now at Rs 73. The company is the market leader in the express courier business with a share of 38 per cent. It recently ...
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PNB Gilts: Hold
PREDICTING the trend in interest rates is difficult at the least. The importance of the measure to the economy, however, ensures that a large number of people are engaged in predicting interest rate movement. One company that does it diligently ...
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SKF Bearings: Buy
THE sustained improvement in automobile production since the second half of the previous fiscal has had a positive impact on the performance of quite a few companies. Bearings producer, SKF Bearings, is once such company that has benefited ...
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L&T: SEBI decision will take long time
EXISTING shareholders of Larsen & Toubro can stay invested till the cloud of uncertainty over the open offer by Grasim Industries clears up. The Securities and Exchange Board of India (SEBI) has put on hold Grasim's open offer at Rs 190 per ...
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IPOS
Canara Bank: Buy
CANARA Bank's initial public offer can be considered for investment. The bank has the financial health (reflected in lower net non-performing assets) to deal with adverse developments and the ability to grow without resorting to equity expansion ...
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