The Hindu Business Line : Sunday, December 07, 2003

Earnings growth can sustain valuations
The earnings growth factored into stock prices suggest that valuations have not scaled irrational heights. However, there could be a slight downside risk if economic growth does not materialise. More

MUTUAL FUNDS

K-Gilt Investment Plan: Invest
K-GILT Investment Plan (Growth) generated a three-year annualised return of 20 per cent. The annualised return does not, however, capture the high fluctuation in the monthly risk-adjusted returns. Despite this, the fund ... More

UTI MNC Fund: Sell
INVESTORS in the UTI MNC Fund can contemplate cutting exposures and switching to diversified equity funds, which could offer superior returns. Given its objective of investing in MNC stocks, it is no surprise that fund ... More

HDFC Capital Builder: Book profits partially
INVESTORS in HDFC Capital Builder should consider reducing their exposures to the fund. Having trailed or mirrored the performance of S&P CNX 500 for most part of 2003, the returns of Capital Builder has risen sharply ... More

Templeton India: Hold
INVESTORS in the Templeton India Growth Fund can retain their exposures in the wake of the impressive performance of the fund during the past year. The fund had between 2000 and 2002 demonstrated its ability to weather ... More

Do not go by a fund's name
There are several cases of products with different risk characteristics and portfolios, sporting similar names. More

TECHNICAL ANALYSIS

Weak near-term outlook for Infosys
Wipro (Rs 1509): The stock ruled firm on the first two days of the week and turned weak thereafter. The near-term trend appears weak. A drop to the Rs 1420-1450 range appears likely. A drop below Rs 1420 would lead to further weakness and ... More

Short-term correction likely
Preferred view: The market movement was in line with last week's expectations. The index ruled firm and managed to move to the earlier mentioned target zone of 1675-1700. After touching a high of 1688, a bearish trend prevailed on ... More

Query Corner
HPCL (Rs 388.7): The long-term outlook for the chart is positive. A move to Rs 440-450 appears likely. However, the uncertainty relating to divestment of government stake is the hitch. Any development in this front could have an overriding ... More

Focus of the week
LIC Housing Finance (Rs 193.7): Long-term investors may buy this stock as it could move towards the Rs 225-230 level in the near term. The positive view would be negated if the share price drops below Rs 170. Existing holders may remain ... More

STOCK MARKETS

Punjab Tractors climbing up — Poor response to open offer
THE increase in stock prices of Punjab Tractors Ltd over the last four months, given the company's poor financial condition, has stumped market watchers. So much so, that the open offer by the UK-based private equity investor CDC Capital Partners ... More

On the move

DERIVATIVES MARKETS

Nifty may remain lacklustre
THE nine-day rising trend in the Nifty has come to a grinding halt with the index declining below the 1650 level on the last trading day of the week. There was an all-round closing out of positions on Friday. However, positions were stepped up in ... More

Using futures/options
I buy options and sell them when I am in-the-money. I have been making small profits. My friend tells me that I could also make money by buying one type of option and selling another. How do I go about this? - Ranganathan Unlimited ... More

Beware the risk in time spreads
CONSIDER this: You observe that the December (near month) Nifty 1640 calls trade at Rs 28 per option, and the January Nifty 1640 calls (farther month) trade at Rs 65 per option. You buy the January calls, and ... More

FOREIGN INSTITUTIONAL INVESTORS

Lupin EGM okays hike in FIIs limit to 33 pc
LUPIN Ltd has informed the Bombay Stock Exchange that its EGM approved increasing the limit of investment by foreign institutional investors (FIIs) to 33 per cent of the paid-up share capital of the company. Its board has also approved `in ... More

RECOMMENDATION

Cranes Software: Buy (High Risk)
INVESTORS may consider taking exposure in small lots to participate in the growth story of Cranes Software International (Cranes Software). Considering the focussed nature of products and services offered by the company ... More

Ramco Systems: Invest
SHAREHOLDERS may subscribe to the rights offer of Ramco Systems at the Rs 200 per share. However, this offer may be suitable only for shareholders who are investing with a time-horizon in excess of two years. They ... More

Larsen & Toubro: Buy
INVESTMENTS can be considered in the Larsen & Toubro (L&T) stock from a medium-to-long term perspective. Any decline linked to the broad market can, especially, be used to take exposure in the stock. This represents ... More

Shaky structure
NCCL: Buy (high risk)
IVRCL: Hold/Buy on declines
Madhucon: Hold More

Grasim: Hold/Buy on declines
SHAREHOLDERS can retain their exposures despite the almost three-fold jump in the stock price this year. Fresh exposures can be considered on price declines, especially on any weakness linked to the broad market. ... More

P&G Hygiene: Hold
IN WHAT is a big move for an FMCG stock, the P&G Hygiene (PGHH) stock has appreciated by 60 per cent since August this year, to trade at Rs 765. Over the same period, the price-earnings multiple has improved from 13 ... More

Wheels India: Buy
LONG-TERM investors can include the Wheels India stock in their portfolio. Catering to almost all companies in the automobile industry, Wheels India is among the largest manufacturer of automobile wheels. Helped by the ... More

UTI Bank: Buy
FRESH investments in the stock price of UTI Bank can be considered now. Investments at this price hold the potential to deliver attractive returns. Sustainable ... More

Maruti Udyog: Long-term buy
THE stock price of Maruti Udyog (MUL) has doubled since it was listed on July 9, 2003. At about Rs 355, the stock trades at a price earnings of 17 times the current year's annualised earnings. Investors with an appetite for high risk may ... More

Kirloskar Oil: Buy
EXPOSURES can be considered in the stock of Kirloskar Oil Engines by investors, who are willing to hold on for over a year. At Rs 303, the stock is trading at 12 times its trailing 12-month earning per share of Rs 26. Kirloskar Oil Engines, which ... More

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