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Ask Mint | On investments

Ask Mint | On investments
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First Published: Sun, Jun 08 2008. 10 57 PM IST
Updated: Sun, Jun 08 2008. 10 57 PM IST
I have 100 shares of Ready Foods Ltd in physical form. Are these shares currently traded?
Ajit Singh Rawat
Ready Foods Ltd is not being traded on any exchange as of now.
I hold shares in physical form in VBC Industries (100 shares), Mangalore Refinery and Petrochemicals Ltd (250 shares), Arvind Products Ltd (100 shares), Nova Udyog Ltd (100 shares), Willard India Ltd (200 shares), Oswal Fats and Oils Ltd (100 shares), Chambal Fertilisers and Chemicals Ltd (100 shares) and Nagarjuna Fertilizers and Chemicals Ltd (200 shares).
All these shares were allotted to me through initial public offerings. For the last 10-12 years, I am not getting any information from these companies. Do these companies exist?
C.A. Nedungadi
Out of the companies mentioned by you, some are very good and are paying dividends—such as Chambal Fertilisers, Mangalore Refinery, etc. You must contact the companies directly for clarifications and I am sure your problem will be sorted out. These types of problems happen when an investor changes his address and does not inform that to the company. Also, many of your stocks such as Arvind Products Ltd, Mangalore Refinery, Willard India, Chambal Fertilisers and Chemicals and Nagarjuna Fertilizers are being traded regularly. Regarding the companies that are not being traded, there are not many options with an equity investor. However, you may still lodge your complaint with the Securities and Exchange Board of India.
I want to invest in a pension plan. My annual income is about Rs6 lakh. Please suggest a specific company and plan. Ram Mohan
Since your query is specific to pension plans, out of the current schemes, Tata AIG (Mahalfe Gold), Aviva (Pension Plus) and Bharti’s (Dream Life Pension) pension plans are good. However I must say, for planning so long you should opt for mutual funds as the Indian economy and stock market are poised to grow manifold from current levels. So, practically the options in case of mutual funds are more and so are the opportunities.
I hold 150 shares of Gangotri Textiles (since 2005), 60 shares of Raj TV (since 2006) and 100 shares of TVS Motor (since 2006). What will be the scope for these stocks. Can I keep them on a long-term? S. Krishnakumar
Gangotri Textiles is near its bottom at around Rs12 a share, so you should hold it as of now. However, you should reconsider investment in this stock, if it goes up to Rs20. Raj Television Network Ltd is also near its 52-week low of Rs95. However the stock has strong resistance at Rs145. If the stock crosses this level, then you may get a level of Rs185-190. So you should hold this stock for at least three months now. TVS Motor Co. Ltd is an underperformer and is having a strong resistance at Rs45. If the stock crosses this level in another one-two months, then it will have a fairly good chance of touching Rs56. So you should hold this stock as well for now.
I plan to invest Rs3 lakh in mutual funds through systematic investment plans and Rs2 lakh in stocks. Can you recommend some stocks for me for a short term (six months). I have picked some stocks such as DLF, HPCL, JP Associates, Thermax, etc. Can u pick some stocks in small and mid-cap space for me? Dennis
DLF Ltd has fallen to attractive levels. However, since more declines are expected, you may get even better opportunities in time to come. You may start buying your stocks from Wednesday and should buy in small lots. JP Associates is also a good choice for a short-term portfolio. However some other good candidates could be Reliance Industries Ltd, Larsen and Toubro Ltd, Bajaj Finserv, Punj Lloyd, Bharat Heavy Electricals Ltd, etc. Please remember, since this is a falling market, you should wait and watch and then take the decision. Also you should buy in very small lots so that you may take advantage of falling prices.
I had bought units in SBI Global fund in 2006 and this year, it has not given any returns. My funds blocked are of Rs5 lakh. Would you advise to quit and invest elsewhere? My time horizon is three-five years and I want a dividend payout scheme. Opinder Singh
A better choice for your portfolio would be DSP Merrill Lynch TIGER as this fund is well diversified and has allocation in sectors such as energy, financial services, metals and metal products, services and technology with the best stocks such as Reliance Industries Ltd, Larsen and Toubro Ltd, Bharat Heavy Electricals Ltd, ICICI Bank Ltd, etc as the key stocks in its portfolio. I think, with this combination, you can expect better returns than the scheme you are having. You may also consider schemes such as HDFC Top 200, DSP ML Equity, Kotak Opportunities, SBI Magnum Contra, BNP Paribas Select Midcap, Reliance Growth, etc. for your investment. Alternatively you can break your portfolio in multiple schemes rather than having one.
I have invested in Reliance Capital at a price of Rs1,135 a share. I have 100 shares in my portfolio and I am prepared to hold on to it for 12 months. I want to know what return can be expected from this. I also own Reliance Natural Resource Fund (January 2008) and would like to know about expectations on it. Also, I am looking for buying into Tata Power at Rs1,300 a share and Reliance Industrial Infrastructure at Rs1,200 a share. Is this the right buying time, or should I wait for the share prices to fall further? Aman
Markets are likely to witness some more fall, before they bottom out and witness a good rally. Regarding Reliance Capital, you need not worry much as the stock will bounce back sharply than the market, though there is some more fall in offing in this stock in the short run. In the long run, the stock will give you decent returns. Also, in view of more declines, you should hold your buying decision in stocks such as Tata Power and Reliance Industrial Infrastructure. However on signs of bottoming out, these stocks may offer very good opportunity to buy.
I have Reliance Petroleum bought at Rs171, GMR Infrastructure at Rs155, Gujarat Mineral Development Corp at Rs287, Reliance Natural Resources at Rs144 and Hexaware at Rs77. What are the prospects for these stocks? Satish
Reliance Petroleum Ltd is a blue chip and a must have for all long-term portfolios. So do not worry due to the current turmoil in the market as far as this stock is concerned. GMR Infrastructure Ltd is also a very good stock with great future. You may add this stock on decline to take advantage of low prices. Gujarat Mineral Development Corp. Ltd is now showing signs of bottoming out after witnessing a sharp fall from its November 2007 highs. Since your acquisition price is not very high in comparison with the market price, you have some room to hold.
Reliance Natural Resources Ltd is in a down phase and has more pain left. You may expect a price such as Rs78-82 in near future, which will be an opportunity to buy more of this stock. Hexaware Technologies Ltd is also south bound and may shed more before bottoming out. However, I would not suggest you to buy more of this stock and just wait for the right time to exit. The stock has a strong resistance at around Rs90. If the stock crosses this resistance with high volumes, then you may expect a rally in this stock.
What will be the best mutual fund to invest right now in the Indian market? Debasish
The choice of investment in mutual fund is based on many factors such as expectation of returns, risk profile, and time frame of investment, etc. In the absence of these important information, it is difficult to pinpoint any good mutual fund scheme.
I have bought Man Industries shares at Rs101 each. What is your outlook on this stock? I am a investor with a medium-term view. Ranjit
Man Industries Ltd is a good stock for long term. However in medium term, this stock may face an important resistance at Rs128. If the stock crosses this level with higher volumes, then you may expect a target of Rs154. So being a medium term investor, please hold your shares and wait for the stock to bounce back.
Answers are based on a technical analysis of the markets and individual stocks. The views expressed on this page are not the newspaper’s opinion and are provided for information purposes by Vipul Verma. Readers are requested to do their own research before participating in the stock markets. Neither the paper nor the information provider will be responsible for any outcome based on information provided here.
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First Published: Sun, Jun 08 2008. 10 57 PM IST