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Summary
of Contents
PULSE
TRACK
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Fed keeps
interest rate unchanged—positive for equities
SECTOR UPDATE
Telecom
Stay
connected
During the month of July, the Indian wireless
telephony service operators added 5.4 million new users (a growth of
4.9% over June 2006), taking the total user base to 114.7 million.
The GSM segment reported a healthy addition of 3.93 million
subscribers (a growth of 5% over the subscriber base at the end of
June 2006) taking the user base to 82.4 million. On the other hand,
the CDMA operators added 1.46 million new users in July (a growth of
4.8% over June 2006) taking the user base to 32.2
million.
Automobile
Higher sales
despite monsoon
Even though it is usually a lean month due to
the monsoons, the automobile sector registered a strong growth in
July this year with a slight slowdown in the two-wheeler sales
during the month. The overall automobile sales volume rose by 20.95%
with the domestic and export sales rising by 17.9% and 19.4%
respectively.
MUTUAL
GAINS
Sharekhan's top equity fund picks
We have identified the best
equity-oriented schemes available in the market today based on the
following parameters: the past performance as indicated by the
returns, the Sharpe ratio and Fama (net selectivity).
The
past performance is measured by the returns generated by the scheme.
Sharpe indicates risk-adjusted returns, giving the returns earned in
excess of the risk-free rate for each unit of the risk taken.FAMA
measures the returns generated through selectivity, ie the returns
generated because of the fund manager's ability to pick the right
stocks. A higher value of net selectivity is always preferred as it
reflects the stock picking ability of the fund
manager.
MUTUAL
FUNDS: WHAT'S IN—WHAT'S OUT
Fund Analysis: August
2006
An analysis has
been undertaken on equity and mid-cap funds' portfolios, indicating
the favourite picks of fund managers for the month of July 2006.
Equity funds comprise of all diversified, index, sector and tax
planning funds, whereas midcap funds include a universe of 17 funds
such as Reliance Growth, Franklin India Prima Fund, HDFC Capital
Builder, Birla Mid-cap Fund etc.
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