24 August 2008

Stock Analysis:BL

TECHNICAL ANALYSIS: Index OutlookIt was an irresolute trading week on the Indian bourses. There were no positive triggers to enthuse the market participants. On the other hand, the plethora of negatives that have been analysed thread-bare, do not appear to have the power to ...

STOCKS: Dabur India: BuyA large repertoire of FMCG (fast moving consumer goods) brands, a healthy pace of new launches and ability to manage margins amid volatile input costs make Dabur India a good addition to any long-term investor’s portfolio. ...

VENTURE CAPITAL: Clinching VC fundingHaving ambitions of becoming an entrepreneur? Do you have a commercial idea that you think is viable? Venture Capitalists (VCs), who provide money for nascent businesses, are the people you should get in touch with. ...

CEMENT: Cement: Lower valuations trigger M&AWith a volume growth of over 9 per cent per annum in the last three years, the Indian cement industry has drawn the attention of many foreign bigwigs over the years. The stimulus for entry into the Indian cement sector is getting stronger with ...

TECHNICAL ANALYSIS:
Reliance Infra (August 24, 2008)
Unitech (August 24, 2008)
Infosys (August 24, 2008)
Tata Steel (August 24, 2008)
Reliance Ind (August 24, 2008)
SBI (August 24, 2008)
Index Outlook (August 24, 2008)

Query Corner: What the charts say

STOCKS: Tata Steel: BuyInvestors can consider buying the Tata Steel stock trading at Rs 594, which is a price-earnings multiple of eight times its standalone earnings and about five times its likely consolidated earnings for FY-09 . The company’s integrated ...

STOCKS: Elecon Engineering: HoldInvestments can be retained in the stock of Elecon Engineering, an established player in both material handling equipment (MHE) and industrial gears business. At the current market price of Rs 112, the stock trades at about 11 times its likely ...

STOCKS: Motherson Sumi: BuyInvestors with a long-term perspective can consider exposure to the Motherson Sumi stock. At the current market price of Rs 80, the stock trades at a price-earnings multiple of about 15 (estimated FY-10 earnings). Though this valuation may ...

DERIVATIVES MARKETS: Derivative strategies: Using puts for discount buysTraders extensively use limit-orders to buy a stock at a discount to the market price. The present market structure does not allow traders to use Good Till Cancelled (GTC) order to buy or sell a stock at a certain price. Everyday, a trader has ...

INVESTMENTS: Go for gold‘Gold’, as an investment option, has been in the news in recent times. Suddenly every analyst is suggesting that gold should form part of every portfolio. And they are right. ...

DERIVATIVES MARKETS: Nifty future may drift further downThe Nifty August future lost another 2.5 per cent over the week to close at 4324.1 points against its previous week’s close of 4434.9. With just four days left for the settlement, Nifty August future is yet again under siege of ...

STOCK MARKETS: Baskets of XE-mail your guess before Tuesday to:

STOCK MARKETS: Bull's EyeE-mail your response by Tuesday to


For more: http://www.thehindubusinessline.com/iw/index.htm


Source: BusinessLine.

Growth: Can India catch up with China?

Growth: Can India catch up with China?



Can China and India sustain their current growth rates?

A traditional answer to this question is conditional: yes, provided they continue to implement policy reforms. But historical experience allows a less guarded answer.

There are few examples of countries that have grown as strongly and for such long periods as India and China have - 6 per cent and 10 per cent, respectively, for nearly three decades - and then suffered a sharp slowdown or collapse.

If history is a reliable guide, then barring major upheavals, economic growth looks likely to continue in both countries until some threshold level of prosperity is attained.
But why does growth beget more growth? One mechanism is simply that growth signals the fact of profitable economic opportunities, which encourages investors to rush in, first in response to these opportunities but then in response to each other - this is growth as a confidence trick - creating a virtuous circle.


If countries are relatively poor, if their markets are large, and if their policy framework is basically sensible - all of which are true of China and India - the chances of the growth-begetting-growth dynamic taking hold are high.

But in addition to the signalling effect, growth may itself cause changes which have in turn a growth-reinforcing effect - a kind of positive feedback loop. A good example is education.
For long, development economists bemoaned the poor levels of educational attainment in India, directing their critique at the government's failure to supply better education. But economic growth changed the education picture dramatically.


It increased the returns to, and hence the demand for, education. And if government supply remained weak, consumers simply turned to the private sector to meet their demand for education.


Improvements in educational attainment over the last 15 years are attributable in part to more rapid growth..



For more: http://specials.rediff.com/money/2008/aug/21slide2.htm



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Source:Rediff