The Hindu Business Line : Sunday, September 21, 2003

Mapping the risks
FROM an investment perspective, investors have to be fully aware of the risk variables that dictate the valuation of medium-sized software companies. On a relative basis, frontline software companies are better ... More

MUTUAL FUNDS

Franklin India Internet Opportunities: Pare exposures and switch
FRESH investments can be avoided in Franklin India Internet Opportunities Fund. Launched at the height of the bull-run in February 2000, its performance has been insipid. It has, however, recovered some of its losses in ... More

Prudential ICICI Income Plan: Invest
PRUDENTIAL ICICI Income Plan recorded an annualised return of 14.5 per cent in the last three years. Retail investors who propose to invest in just one debt fund can buy units in this plan. The fund may not be suitable ... More

PORTFOLIO TRACKER
Sundaram Mid-Cap: Pare exposures
INVESTORS, especially in the growth option, can consider cutting exposures partially in the Sundaram Mid-Cap Fund to lock into the gains of about 60 per cent in the NAV over the past year. The fund has capitalised on ... More

PORTFOLIO REVIEW
Magnum FMCG Fund: Pare exposures
INVESTORS in the Magnum FMCG Fund can cut exposures and switch to diversify funds with a good track record. The fund has turned in an unimpressive performance since its launch in August 1999. The recent run-up in the ... More

STOCKS

A market high on drugs
STOCK prices of pharmaceutical companies have had a scorching run over the past nine months, with 25 prominent players in different segments collectively registering a 78 per cent value increase in this period. The ... More

Pharma Stocks: Bounty of good returns
INVESTORS who shopped for pharma stocks early this year are sitting on a veritable bounty of returns. As the Table shows, an investment of Rs 100 in the set of 25 stocks considered for this analysis would have returned ... More

Expectations `peg' values higher
Robust earnings expectations are behind the price surge of a majority of stocks. In fact, the valuations of most stocks resemble those of growth stocks now. Conservative investors may find the associated risks unpalatable. More

TECHNICAL ANALYSIS

Pare exposures in M&M
ITC (Rs 797): The stock moved in sync with expectations. It ruled weak and dropped to the projected target zone of the Rs 785-790 range that was mentioned last week. After dropping to Rs 770 on Thursday, it recovered sharply to close at Rs ... More

Weakness may persist on indices
Preferred view: The index ruled weak as anticipated and also broke the support level of 1330-1340 that was mentioned last week. Going by the recent price action, the downward correction does not appear complete as yet. The index is likely ... More

Query corner
Please advise me on the prospects of Hindustan Construction & Finolex Industries. — K.S. Hegde Hindustan Construction (Rs 77.4): The stock has been stuck in a trading range in the recent weeks. The overall outlook appears ... More

STOCK MARKETS

Margin trading triggered fall in stock prices?
MARGIN trading is again seen as a trigger that caused stock prices to fall over the last few trading sessions as traders failed to pay the additional margin money, brokers said. According to brokers, there has been across the board selling ... More

Of chaos and complexity
STOCK market research has never been so esoteric. There are research papers that use high-level physics, such as quantum mechanics, to explain price patterns in the stock market. In this regard, there seems to be some ... More

DEBT MARKET

BOND WATCH
Bonds remain biddish
YIELDS remained tight week-on-week. The 10-year yield closed at 5.30 per cent, 4 bps lower than the previous week. The intra-week volatility was, however, high due to expectation of a liquidity problem relating to RIB repayment and news about the ... More

DERIVATIVES MARKETS

Positive undertone prevails
FUTURES' premium have reduced, open interest across September contracts have decreased with the exception of Nifty contracts and contracts on Oriental Bank, Dr Reddy, Reliance, Digital Globalsoft and Grasim. However, the put-call ratio levels of ... More

Using Futures/Options
A short position would mean that you are on the sell side and a long position is on the buy side. Only long in-the-money or at-the-money positions are exercised. # Short position cannot be exercised as a seller or writer of option; you ... More

Options guide

Futures guide

COMMENTARY

Up `N' Down the Street

RECOMMENDATION

L&T: Cash in on the uptrend
SHAREHOLDERS of Larsen & Toubro can book profits to cash in on the 62 per cent rise its stock price over the past five months. Re-entry can be contemplated at lower levels or upon listing of the engineering sector company's stock. The rally in ... More

Carborundum Univ: A good value play
FRESH exposures can be contemplated in the stock of Carborundum Universal at the current price of Rs 180. The business outlook appears good due to the better growth prospects for its key product - abrasives - growing demand for ceramic ... More

Canara Bank: Buy
FRESH investments can be considered in the stock of Canara Bank. The stock is attractively valued compared to peers such as Punjab National Bank and Bank of Baroda. The stock trades at a price-to-earnings multiple of ... More

Chettinad Cement: Sell
SHAREHOLDERS of Chettinad Cement can cut exposures in the stock as the prospect of a further equity expansion looms. However, even the infusion of further equity is unlikely to make a major dent in its debt burden. ... More

Centurion Bank: Pare exposures
With substantial expansion in equity on the cards, the market capitalisation of Centurion Bank does not appear to be in tune with the size of the business or its prospects. Shareholders can, therefore, prune exposures to the stock, says < B>Suresh Krishnamurthy. More

Godavari Fertilisers: Take the market route
Risk-averse: Sell in market
Others: Accept More

Concor: Buy
FRESH investments can be contemplated in the Container Corporation of India (Concor) stock from a one/two-year perspective. Revenue and earnings growth rates could move to a higher level than the sub-15 per cent trend ... More

TCM: Unattractive
SHAREHOLDERS of TCM can stay away from the rights offer. The company's financial position is weak (five consecutive years of losses) and the rights issue price of Rs 10 is higher than the current market price of Rs ... More

Dredging Corporation: Buy
INVESTORS can consider fresh exposures in Dredging Corporation of India (DCIL), a leading PSU engaged in dredging services for ports. The Government's thrust on port development enhances the scope for growth in the ... More