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Portfolio Organizer


March'03
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Investment Trends
Why are Stock Markets so Unpredictable?
State of the Equity Market 
Time to Take a Bigger Bite of Equities 
Privatization and Technology will be the Key Stories
Technical Analysis : To Make a Prominent Impact
Online Trading: Do it Yourself 
Information: Set to Revolutionize the Investment Landscape
Regulatory Challenges Facing Equity Markets
Debt Markets - A Fast Changing Scenario 
March Towards Excellence
Trends in the Indian Mutual Fund Industry
Who is Hedging Whom? 
Equity Derivatives - Just Taking Off
Derivatives Market... New Opportunities
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Special Issue

Investment Trends


-- G Kumaraswamy Naidu, Consulting Editor, Portfolio Organizer, Kamakshya Prasad Prusti, Member, IUP Research Team

If short-term developments are significant for the markets, a look at the long-term trends open up a plethora analysis for everybody. Indian markets have progressed appreciably over time; time for a look at the trends.

Why are Stock Markets so Unpredictable?

-- Parag Parikh

Why are stock markets so unpredictable? This question has engaged thousands of researchers in their respective areas of research for years. This very unpredictability of the market is the attribute that draws the brave and the cunning to its playground. Some are gifted to rise in the swing of the market and the lesser mortals are reduced to doing self-analysis.

State of the Equity Market 

-- Prof. Binay Bhushan Chakrabarti

Equity markets, by virtue of their simplicity, come best in terms of understanding, even for a common man. The question most frequently asked by the crowd is about the state of the market and its course. The question is relevant for the current market conditions also.

Time to Take a Bigger Bite of Equities 

--Krishnan Ramchandran

Several times the equities have been termed as an asset class of great potential. The Indian equity markets have learnt many lessons already and its time for the market to put all these understanding into practice.

Privatization and Technology will be the Key Stories 

-- Rajiv Handa

Expect a good but not a gala time in the current year. A section of the market is optimistic that the current year would present them with better and bigger fishes in their nets. This is already evident in the market outlook pages circulated by fund managers and institutional investors. Truly, they have a reason for being so. With a more stable macroeconomy and fewer tussles in the political horizons, the current year in many ways appears better equipped to invite the investors back to the market.

Technical Analysis : To Make a Prominent Impact 

--Prasoon Dalal

Increased market volatility has presented the study of technical analysis as an indispensable tool for the investors. Smart usage of the technique can see the investors through these turbulent times with relative case.

Online Trading: Do it Yourself 

-- Anoop Bagchi, Chief Operating Officer, ICICIDirect.com.

The Indian Capital market has come a long way since the days of globalization. The market has adopted various industry practices as followed by the players in the international markets. In recent times there has been a wave of operational standards and best practices that have been introduced into the market. The whole idea revolves around creating a better market place for everybody. In this journey, the contribution made by the online trading service providers would be defining.

Information: Set to Revolutionize the Investment Landscape 

-- Amit Abraham, Head, Research and Advisory, ASIAN CERC Ltd.

The benefit of information encompasses all the faculties from business, research, war to trading in an overwhelming fashion. It can revolutionize even the mundane of the activities into an exciting one. If that were to be the case, imagine what it can do to the capital market whose second name is enthusiasm

Article Price : Rs.50

Regulatory Challenges Facing Equity Markets 

--Prof. V Panchapagesan

Absence of regulation or little of it is of no explicit distinction. Especially in the context of the securities market, the regulator's seat is always bombarded with ideas and criticisms. Nevertheless, the market has to be controlled subtly enough to discourage any mischief at the same time promoting innovation and growth.

Article Price : Rs.50

Debt Markets - A Fast Changing Scenario 


-- Ramgopal Kundurthi, Chief Investment Officer

Opportunities presented by the debt market nearly four quarters ago are not there any more. That was expected and therefore the prudent players have started devising suitable strategies already. It's now time to take stock of the situation and face the next round of uncertainties with a renewed spirit.

Article Price : Rs.50

March Towards Excellence 

-- Nilesh Shah

The fixed income market has given investors what they needed at a time when the equity portfolios were busy eroding investor's wealth. The interest rate order of India is likely to pose challenge to the managers of the fixed income securities, a far distant case roughly a year ago. All machineries of the financial system regulators, journalists, academics, researchers and even astrologers have to decide on a new course of action.

Article Price : Rs.50

Trends in the Indian Mutual Fund Industry 


-- Prof. G Sethu, Dr. Rachana Baid

The benefit of an enhanced activity level in the Indian mutual fund industry is evident in the industry structure. The industry is beginning to show signs of moving towards maturity. This paper aims to capture the developments in the industry over the years.

Article Price : Rs.50

Who is Hedging Whom? 

-- GRK Murty, Consultant, IU

Investors are aware of their risk return trade-offs. Therefore, the quest to nullify their share of risk is undertaken with no less passion. Futures market, in these cases come with some proven solutions and prospects to benefit the investors with its offerings.

Article Price : Rs.50

Equity Derivatives - Just Taking Off 

-- Raghu Iyer

Derivatives market, within a short span of its launch has managed to pick-up in terms of volume. Now that the start has emerged satisfactorily, the market participants are more concerned to clear away the tiny issues of convenience. With these, the segment would be all set for a take off.

Article Price : Rs.50

Derivatives Market... New Opportunities 

--Prakash Gaba, Member, Society for Technical Analysts, London.

Introduction of the derivatives was anticipated by the market players since long. Contribution of the derivatives is going to be defining to the development of the capital market in India, at a time, when benefit and convenience continues to be the most favorable arguments in favor of the derivatives. How far these complicated products would be understood and accepted by the common investor is the question that remains.

Article Price : Rs.50

 
 
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Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.

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