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COVER STORY
Suspension of Sugar Futures: The Rationale Behind the Move
-- VDMV Lakshmi
Amidst concerns of speculation in sugar futures, the commodities regulator, the Forwards
Market Commission has, recently, suspended trading in sugar futures in order to ensure that the price
of the sweetener is affordable to the common man. However, experts opine that the ban will not
be able to check the sharp rise in sugar prices, which have more to do with the
demand-supply mismatch than speculation in the futures market.
© 2009 IUP.All Rights Reserved.
EQUITY
Stock Markets in Zoom
-- M Bhaskar and P Padmaja
Since March 2009, Indian stock markets are witnessing a dramatic rally after a year of
plunging share prices. Various sectors in the market have performed distinctively in the current rally.
While some sectors have outperformed the sensex, others have underperformed. This article analyzes
the key reasons that influenced the performance of these sectors.
© 2009 IUP.All Rights Reserved.
MUTUAL FUNDS
Equity Funds: Are They Affected by the Downturn?
-- Pankaj Pandey
The equity funds have failed to match the pace of the markets in the recent times. While they
have not lost by huge margins, yet these funds have not been able to beat the performance of the
stock market indices. However, going forward, over a longer period of time, equity funds
could outperform their respective benchmarks and, therefore, remain the best option to invest
in, especially for retail investors.
© 2009 IUP.All Rights Reserved.
MUTUAL FUNDS
Arbitrage Funds: The New Ideal Investment Funds
-- Rachana Baid
, Nirmal Kumar
With the Indian financial markets still reeling under uncertainty, arbitrage funds have emerged
as safe havens for investors, especially for those who have a low risk appetite but want decent
returns. This article provides an insight into the basics of arbitrage funds.
© 2009 IUP.All Rights Reserved.
INVESTMENT
Investing in Mid Cap and Large Cap Funds
-- Amar Ranu
Mid cap stocks are increasingly being perceived as attractive investment options with high
growth potential, especially in the current market scenario. However, investors must recognize that
the risk of investing in mid cap companies is considerable as even a slight turbulence in the
economy can send these companies on a downward spiral.
© 2009 IUP.All Rights Reserved.
PERSONAL FINANCE
Financial Literacy: Imperative for Investors
-- Sanchita S Roy
The economic growth and the expansion of the financial markets, have given the Indian consumer
a plethora of investment products to direct his/her income towards. However, the low levels
of financial literacy prevent the individual from making a judicious choice with regard to
his/her financial planning. This brings to light the need for financial literacy in India.
© 2009 IUP.All Rights Reserved.
INDUSTRY
Bidding Adieu to Poison Pills?
-- Y Bala Bharathi, Sanjoy De
The poison pill, which has so far successfully been used by the corporates as an effective strategy
to counter hostile takeover bids, is now losing its charm among the corporates. But given the
striking absence of powerful alternative anti takeover strategies, it may not be the end of poison pill.
© 2009 IUP.All Rights Reserved.
INDUSTRY
Leveraged Buyout: An Indian Perspective
-- Soumya Saha, Munmun Dey
The process of a Leveraged Buyout (LBO), involves the acquisition of a company by using a
small portion of equity and a large portion of debt financing. While, the concept of LBO is well
accepted globally, domestic buyout of one Indian company by another is not favored due to various
reasons. This article explains the concept and advantages of an LBO and identifies the reasons that
make execution of LBOs difficult in the current environment.
© 2009 IUP.All Rights Reserved.
CASE STUDY
Effect of Financial Performance on Share Price
-- V Dheenadhayalan
This article uses the correlation analysis, factor analysis and the multiple linear regression
to analyze the impact of financial performance on the market price of the share. It concludes that
the market price of a share is mainly determined by the forces of supply and demand of a security
in the market.
© 2009 IUP.All Rights Reserved.
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