Finergo Episode 27 08june09

04 KALEIDOSCOPE

ERGO Monday, June 8, 2009

News you can use Buy and sell international stocks Kotak Securities has announced the launch of Kotak Trader, a trading platform that will allow investors to trade in stocks of 24 different international exchanges. Thus individual investors who wish to use the USD 2,00,000 allowed by the RBI to be invested out of India can now look at equity investments in foreign companies too. Kotak Trader is a joint effort of Kotak Securities and Denmark-based Saxo Capital Markets.

Renew the view on energy

Mini Quiz A. For the first time in its history Bharti Airtel declared a dividend of ____% on 29 April 09 1. 10% 2. 55% 3. 200% 4. 20% B. The Minister of State in the Ministry of Finance is 1. Palanimanickam 2. O. Paneerselvam 3. Montek Singh Ahluwalia 4. YV Reddy

Fundamental analysis for stock investments

Send your answers to [email protected] or SMS your answers to 92813 98889. For example if you choose 1 as the answer to question A and 2 as the answer to question B type it as A1B2 and send it. Winner will be chosen by lucky draw from all correct answers.

Answers for last week’s quiz 1. Custodian 2. Singapore 3. Taurus Ethical fund 4. 24 years 5. Penny stock 6. Securities Transaction Tax 7. Short term 8. 15078 9. 1,498,000 10. 5,760,000

LAUNCHING SOON Initial Public Offerings Rishabdev Trechnocable Limited Gemini Engi Fab Limited PSU IPOs which could be launched soon National Hydro Power Corp Oil India

NFO’s Of Mutual Funds Religare Gold Exchange trade fund IDFC Hybrid Portfolio fund Reliance Gold Saving fund Reliance International Equity fund

KARTHIKEYAN JAWAHAR [email protected]

T

here has been a lot of talk since the last few years on renewable energy sources, particularly since India started discussions with the USA on the nuclear agreement. Previously, talk on wind turbines was limited to companies talking about putting up one for taxsaving purpose. The sudden jump of crude prices to over US $145 sparked the renewed view on renewable energy. Experiments with bio-fuels have backfired, with the conversion of food into fuel creating a virtual rise in prices and real rise in political sentiments. Critics now argue that bio fuels consume more of earth’s resources than nonrenewable fuels. Nuclear energy, however clean, is also exhaustible. So what is the way out? Solar and solar-related sources seem to be the best alternative for long-term sus-

tainability. But the current methods of conversion of solar energy to usable energy (electricity, steam) are less efficient. The new Renewable Energy Policy of the Government of India, which envisages every building beyond a certain square feet of construction to have energy being generated used in the form of solar panels, solar heaters and mini-wind turbines, is a welcome measure. This will help reduce the price of the items and also increase their efficiencies by increasing the R&D budgets. Apart from this, we can all contribute to the revolution by consuming less power. Suggestions to turn off lights, ACs, fans and the omnipresent computer before leaving the office need to be implemented more diligently now than ever before. Can business leaders start thinking of having more video conferences than commutes to the airport? Can we have the office ACs running at a few

degrees higher temperature? How about reusing things more often (as opposed to recycling, as recycling also consumes energy)? The abovementioned things are going to be a part of our lives sooner than later, as supplies are running out. So why an article on renewable energy in a personal finance column? Imagine the opportunities for investment in the field. Wind, solar, communication infrastructure, designer townships (to reduce commute), water purification and reuse systems, LPG & LNG (though nonrenewable, they burn clean and hence will substitute petrol and diesel to a larger extent), energy education and electric vehicles are just some of the areas where we can find aggressive growth of companies. Do we have Indian companies in the above fields? Oh yes, and I would definitely invest in those companies. Happy investing in a cleaner, greener, sustainable energy future! ■