Stocks that saw least correction

One of the methods to buy stocks, without going into fundamentals or PE ratios, while looking at opportunities, is to look at two periods - one when the stock prices have run up and second period when the stock prices have corrected.

Stocks that have run up and corrected the least or have actually risen during this period, are the stocks, which look very attractive or maybe in stronger hands. These stocks have good businesses, but have been lower downside.    

Considering such two periods - from August 22 '07 - January 8 ’08, where there was a run up in the stocks and the correction from January 9 until January 23 and here is a list of stocks that look reasonable:

Amara Raja, Akruti City, Bank of India and Welspun Gujarat have risen anywhere between 70-140%, but also have risen during the correction anywhere between 4-16%.

There are a second set of stocks and interestingly, the second set of stocks have a whole host of banking stocks that people are buying into. For instance, Indian Bank, Axis Bank, SBI, Bank of Baroda have run up anywhere from 50-80% in the August-January period and have fallen just about 5-6% during the time of correction.

Another host of midcap stocks that look fundamentally good are Everonn, Shriram Trans Fin, Pidilite, Jain Irrigations, Sadbhav Eng, Indiabulls Financials, that have risen anywhere between 40-160%, but have fallen least about 6-7% totally.

So these are the stocks or this is the methodology to be employed to find out which stocks might be fundamentally good and might be the stronger of the lot.

§       Stocks for long-term investments in 2008
§       Damani's advice to investors
§       Stocks to pick - Tata steel, TCS, Petronet LNG
§       List of the BSE-100 stocks losing most from their ...
§       Lessons from January 2008
§       Zen Technologies:-The scrip to watch out for in th...
§       Find value picks from the day's biggest losers
§       Market update - big fall of 1400 points sector wis...
§       Black Monday again-Biggest ever point fall for mkt...
§       BSE smallcap index: Top gainers and losers
§       Stocks that hit their 52-week lows in todays fall
§       Sensex to see 25K by 2008-end
§       Major IT stocks touched their 52-week lows
§       Not all small stocks caught in turbulence
§       HOT STOCK : GODREJ INDUSTRIES
§       JK LAKSHMI CEMENT LIMITED : Potential MULTIBAGGER

Stocks for long-term investments in 2008

The new themes for this year and the preferred stocks where you can park your long-term investments...

Premium Class

Income inequality, a perennial subject of discussion in India, has acquired a greater significance during the current bull run. Not everyone has gained uniformly from India’s growth story. Those at the top of the food chain — i.e. promoters and directors — have demonstrated a faster growth in their income and wealth than employees and small shareholders.

For many of us, this may be a cause for concern, but for an opportunist investor, this trend provides another opportunity to make money.

Investors are advised to put their money in companies that sell goods and services to the swelling upper-middle class. The potential investment targets can either be manufacturers of high-end consumer goods, lifestyle products or providers of leisure and entertainment.

Increased expenditure in the premium category indicates bullishness. There are many ways to quantify economic inequality in an economy. We have used income and wealth generated by India Inc as a proxy to gauge the income and wealth inequality in India.

As Corporate India tackles several challenges and generates huge profits, the stakeholders — i.e. the promoters, top management, shareholders and employees — are witnessing an unprecedented rise in incomes and therefore, their standard of living.

Financial Sector

The era of ‘lazy banking’ is long dead and gone. The banking and financial sector has acquired a new spanking avataar in a span of just a few years. In fact, today, India has emerged as a hub of banking and financial services at the global level. One big reason is India’s current economic growth story.

A strong surge in the potential growth to 8.5-9% has improved income levels of Indians and hence, the overall surplus cash balances and savings. Banks and other financial services are end beneficiaries of this boom. This is clearly reflected in the composition of gross household finance savings. The share of bank deposits, savings in the form of mutual funds and equity shares has gone up significantly from 38.4% in FY04 to 62.0% in FY07.

Apart from the retail segment, corporates are big users of banking and financial services. Increasing corporate savings are either parked with banks or mutual funds. Investment demand is a major driver for the current surge in economy and will be the same in forthcoming years.

Thus, to finance the huge capital demand, India Inc will rely on banks, non-banking financial companies (NBFCs) or the equity market. So, ample availability of resources, coupled with easing interest rates, will enable banks and other financial services to do well, irrespective of market conditions. Nevertheless, with an eye on maximising future opportunities, banking and financial companies have raised capital or are planning to raise it in the coming years, which will offer a leverage to raise their assets.

Media

Humourists describe advertising as the science of arresting human intelligence long enough to get money from it. Whether or not this definition is true, the year 2008 is likely to be a bonanza year for media stocks, given the huge potential in advertising spends.

Experts feel that ad spends are likely to trace the broader growth in the economy and consumerism. While ad spends will provide a trigger for good performance by broadcasting companies, increasing penetration of content distribution methods, including DTH and CAS, are likely to add sparks to the party.

Apart from broadcasting, content providers also have a busy schedule lined up, given the ever growing number of TV channels and shows. This spells a bonanza for companies which are engaged in the production of TV shows and animation.

Moreover, the increasing number of multiplexes and aggressive promotion of movies mean that companies engaged in the business of production, distribution and exhibition of movies will also have
a good time.

All said and done, the party holds promise for only a handful of players as most of them are already looking richly valued. This means investors have to look for growth stocks. Companies which enjoy a pan-India presence and offer services in various media segments are likely to be the biggest beneficiaries of these trends.

Infrastructure

Infrastructure is the pillar of economic, as well as social development. If various reports and studies are to be believed, India is set to emerge as one of the world’s largest economies. This is not achievable unless infrastructure improves. In the current scenario, lack of proper infrastructure is a bottleneck in the growth of the Indian economy. Sectors like power, rail and ports have to improve substantially if they want to meet the rising demand from India Inc.

Infrastructure investment requires huge initial capital outlay, which was considered to be a big hurdle in the past. With rising government revenues, a bullish stock market, huge foreign capital inflows and burgeoning corporate balance sheets, mega investment projects in infrastructure are no more a dream.

We feel infrastructure growth in India has reached an inflexion point and historical growth may no longer act as guidance for the future. So, will we ultimately see the kind of airports, ports, trains and roads that we have so far seen only in Bollywood movies? Looking at the revolution in the telecom sector, this cannot be ruled out.

This growth will have a cascading effect across a number of sectors, ranging from construction, cement and metals, to capital equipments and project finance, among others. But how big is this opportunity for India Inc and its investors? ETIG does a reality check by benchmarking India’s infrastructure growth against other countries to highlight the gaps and identify the investment opportunities.

§       Damani's advice to investors
§       Stocks to pick - Tata steel, TCS, Petronet LNG
§       List of the BSE-100 stocks losing most from their ...
§       Lessons from January 2008
§       Zen Technologies:-The scrip to watch out for in th...
§       Find value picks from the day's biggest losers
§       Market update - big fall of 1400 points sector wis...
§       Black Monday again-Biggest ever point fall for mkt...
§       BSE smallcap index: Top gainers and losers
§       Stocks that hit their 52-week lows in todays fall
§       Sensex to see 25K by 2008-end
§       Major IT stocks touched their 52-week lows
§       Not all small stocks caught in turbulence
§       HOT STOCK : GODREJ INDUSTRIES
§       JK LAKSHMI CEMENT LIMITED : Potential MULTIBAGGER
§       Parsvnath Dev eyes 120-140% bottomline growth - Pr...
§       For IT, numbers say it all
§       Stocks to pick: Reliance capital,Axis Bank, Moser ...
§       Rakesh Jhunjhunwala's latest Portfolio
§       Tata Nano may expand market by 65%
§       Nano will drive Tata Motors to top position
§       RIL ready with $8bn for coal-based fuel project
§       Rosy Future - Stock Focus - Karuturi networks
§       Multi Bagger - XL Telecom & Energy
§       Revision in BSE Mid-Cap and BSE Small-Cap Indices
§       Future Group to hive off Big Bazaar
§       Brokers bullish on Syndicate Bank, Omaxe, MnM

Damani's advice to investors

Sudhakajaria: Dear Sir, for your faithful chatters, can you not give us a NIFTY CALL now at least, if the market has bottomed out or nearing the bottom. We have purchased Prism at 61, Bluebird at 84, Gail at 550, Igarshi at 114. The whole world is in a bad shape. At this point of time, what do you suggest for your BELOVED ONES? Cash at hand or recommend some screaming buy for us to benefit from this UNUSUAL FALL, or is it better to stay away?

Ramesh Damani: as u know i dont give nifty calls ..my sense is that fmcg and cement will provide safe harbor in the days to come

SONU_SAI: will budget will bring the mkt up or down

Ramesh Damani: the FM will keep an eye on the budget and cut rates for taxes which would be a positive

rp241981: what is ur view about market and what will u do in such market. Im a small investor. what to do now. buy on stay in cash till stability. thnak u sir

Ramesh Damani: i fu find value buy it by all means...crisis of someone can be an opportunity for u if u are a disciplined investor

SONU_SAI: it was said that mkt will see down in feb and march but we are seeing it down ow then what will we consider feb and march as bugettime will be near

Ramesh Damani: cant really predict the market

kanupriyaa: Dear Sir, today when many have burnt their fingers, is there any stock you see from your perspective as a screaming buy, now that the stocks are available even below attractive levels. IFLEX at 900, Bluebird at 44, Prism at 43. Or is it better to stay away from markets as global clouds have attacked our market and WAIT. As you know many stocks have been purchased at a higher price. Do share with us, if we could benefit from this MORE THAN EXPECTED FALL of market due to MARGINS

Ramesh Damani: i think the stocks u mentioned are cheap and could be bought at these rates....

mariappan.m: Wishing you a great year ahead Sir. I have been a silent reader of this chat transscripts and able to learn a lot from you, thanks.

Ramesh Damani: thanks and keep up the investing

ssesh1: Do you see the markets going below today`s low tomorrow?

Ramesh Damani: i think we have made a intermediate bottom at todays low..the poison has been let out...

nivesh3598: Dear Siris this is a correct time to go for buying for blue chip shares ?

Ramesh Damani: it is if u are finding value

samesh_patels: Sir what actually is the reason for this meltdown in the market??

Ramesh Damani: global cues and f&o positions in india

rp241981: Hello Sir, If u want to invest in this market which are the sector will u prefer.

Ramesh Damani: cement, fmcg and logistics

JOEGRANVILLE: well it is a synchorous sell off from shanghai to bovespa to ftse????so clearly with fed indicating it will cut fed rates,so question is where will new liquidy move to ??? TO ME LARGET CAP US stocks r extremely cheap????ur view ????thanks

Ramesh Damani: cheap can be a moving target..citibank has become cheaper by the day

probirkrpaul: what is the short term target of nifty. is correction over or not.

Ramesh Damani: from the look todays low is an intermediate bottom

rushabh_r_shah: Ramesh Sir , how was the marathon ... u finished the race in what time ??

Ramesh Damani: i finished it but not in the time i had set for myself..my knees gave in

yourssid: Dont you feel that smal investors not only loose money but also trust thats really hard to get back now after such a crash

Ramesh Damani: i dont agree with that

miki_im: Sir, good afternoon. What is your take on the power sector especially realiance energy and NTPC? thanks

Ramesh Damani: power sector is under pressure and will underperform

sudz_123: Dear Sir, where do you see the market bottoming out? Or is it really very difficult for you to give an opinion right now. Today when everyone is nervous, do guide us well. Should we be buying any MOUTH WATERING stock at this point of time like TATA STEEL and Tata Tele, or is it best to wait for the dust to settle. Our other stocks have been purchased at a very high price like many have had. If we could benefit in this FALLING KNIFE market, do share with us. Thanks.

Ramesh Damani: i would buy if i spotted value. sectors i have mentioned

nehamathur: Sir holding png gilts from 44 levels. Is it prudent to sit patiently and watch the drama?

Ramesh Damani: i think the logic is still good..at merger we should get a value greater than 50

nehamathur: Though market came down but i believe this is not healty correction. Healthy correction is one which comes down slowly. I dont know how many people sold in this correction. This shows that every rise people will sell off. Your comments.

Ramesh Damani: dificult to predict all this..i concentrate on the stocks in my portfolio mainly

sonali9876: sir,,ONCE AGAIN THANKS for telling us to SELL at exactly right time,,u hav saved us from DISASTER

Ramesh Damani: that was a good but lucky call

maulin_pintu: Hello Sir, I am a small investor and got teribbly scared of the current fall in the market.? My question is WHAT SHALL I DO WITH MY PRESENT HOLDINGS AS THE SAME ARE BELOW 50% MY COST OF ACQUISITION...?

Ramesh Damani: visit the logic of why u bought...if it was a tip be careful..

rishivohra: sir after today will you suggest your chatters to still invest in equity? sir i have 800 rcom at 650/- whats your views.

Ramesh Damani: i almost bullish on equity provided it is cheap

sonali9876: PRISM CEMENT available at DIVIDEND YIELD

Ramesh Damani: yup is attractive

chowlesh: Mr. Damani i rem once u mentioned growth stocks is where one should be.. do u still subscribe to that view ? one would have got butchered today !

Ramesh Damani: that depends on when u bought it and what was the margin of safety

visethi22: sir , is there any relief being provided by govt on FNO holders holding different lots

Ramesh Damani: no

rushabh_r_shah: ramesh sir , panic in the last few days have created buying oppourtunities for lots of fundamentally good companies ... tata-steel ... idfc .. l

Ramesh Damani: the first two looks good

aaditiyaa: do u think there is a need for structural reforms in the stock markets like ipo funding, financing methods to f

Ramesh Damani: teh f&O market should be rethought it has caused much despair

Harinder Rawat: is tomorrow the melting position continue/ what you think. I hope it will continue upto sensex 15000.

Ramesh Damani: i doubt it

MahendraRathod: My pleasure that i got opportunity to talk with you sir. I am holding IFCI, BHEL, PFC, TTML, TCS, MINDTREE, NELCO. But my portfolio is about 40% down. Please advice me sir :)))

Ramesh Damani: dont individual on individual portfolios

sanketsm: Sir, I recently started investing in the stock market (2 months) and have burnt 45% of my portfolio over that time. In the absence of liquidity, is it prudent to weed out the greater loss making stocks, book that loss, and invest in stocks with sound fundamentals?

Ramesh Damani: generally speaking yes

Harinder Rawat: I want to recover the lossed money which I lost yesterday but there is no permission to enter into the market, WHY. Whats the monopoly of NSE?BSE?

Ramesh Damani: u dont need permission to enter the market

sampath05155: Sir, even if you are holding good stock, market corrects. can we hold it or book loss and enter after wards or can we wait for recovery. what do u thing how long will it take to reach 21000 mark

Ramesh Damani: not something i recommend

rajudhs: THANKS A LOT FOR SELL CALL SIR, sold 95% of my stocks on day after the CHAT. now waiting to get in and make a killing :-) Thanks once again

Ramesh Damani: hey great trade...timing was lucky

sudz_123: dEAR sIR, SHOULD WE JUST SIT AND BEAR THE PAIN OR CAN YOU SUGGEST AT LEAST ONE STOCK THAT WE, YOUR LOVED ONES can buy aggresively from the sectors you mentioned, to benefit from this fall. Have you too bought? We would be highly obliged if you share with your chatters. Thanks

Ramesh Damani: going to wait till next week atleast market is too fluid and i may change my mind

phalver: Also why property prices are going up as if there are 100 buyers

Ramesh Damani: logic would suggest property prices have peaked

mkvijayalakshmi: i am a long term investor since 15 years,happy with market. I want to know where i will get rules and regulations of exchanges in respect of deravitives,because without knowing the product in deatil i dont wont to try.Since i have few company shares more than market lots in my portfolio,i want to know whether i can hedge my position in deravitive market

Ramesh Damani: try the nse website or call them they should be able to help

sonali9876: SIR,,do u think RECOVERY will be FAST in mid-caps as they are UNDEROWNED BY FIIS?

Ramesh Damani: recovery will take time...if market recovers too quickly the lessons may not be learnt

pune_swengineer: Balmer Lawrie: Sir, did u go through the results? How did u like it?

Ramesh Damani: they were in line..saw them quickly

Sid_for_you: In a previous chat you had said that this time the wait may be longer than what it was after May 2006 fall.Do you still hold that view?

Ramesh Damani: i think so market cant keep giving u such quick ops but the jury is still out..lets see

veenaarvind: SIr please share your expertise on power sectors like Rpower,Tata, NTPC

Ramesh Damani: sector will struggle for a while..we may see a technical rally for a while..but i would sell into the rallies in the power sector

nehamathur: I think even wise people fell pray to markets. Your recommendation of blue bird for trading is an example.

Ramesh Damani: lots of my stocks fall and dont work out...or work out later that is a part of the market paradign..no one is invincible

uvsrk: most of the frontline stocks got butchered. were they overvalued then? do they look cheap now? where do you see the recovery coming from?

Ramesh Damani: part of the reason was the technical positionof the market

uvsrk: Is there a lesson for SEBI to control huge IPOs keeping in mind the liquidity impact?

Ramesh Damani: no public must take responsibility for what they do..not sebi job to tell u what to do

parimalmithani: Sir I just want to thanks you for your words of wisdom. Also learnt a lesson that in stock market fear is your best friend and greed is your worst enemy.

Ramesh Damani: amen

baracuda: Nucleus: Your comments about the results and you take on the future prospects?

Ramesh Damani: results were ok...orders in the quarter were over 100 crs which is outstanding

ishu_arpit: good evening sir, I was wonder that how can stocks fall so sharply with so little volume trading. can you please explain that. Thanks

Ramesh Damani: its called a panic and typically buyers evaporate happens every few years

GUNGUN: NUCLEUS SOFTWARE : DID U ATTEND CONF. CALL ? DESPITE LOW RESULT THERE WERE LOT OF BUYERS TODAY , ANY PARTICULAR REASON?

Ramesh Damani: order book seems to be robust

verycool: sir i have a question for you. I am 29 yrs old. In the last few days I have lost 20% of my portfolio worth but I am not scared. I invest in equities for my retirement which I hope to take in 2020. What would you advise me? Learn stop losses or hold on if you have the conviction or buy more of the same if possible?

Ramesh Damani: for a young person keep the faith and try and compound that is the best route

mvmakadia: Damaniji; I would like to know your view on this one; shouldnt futures n options b banned; usually mkts collapse or rise leaving behind fundamentals when fno traders unwind their positions; plz suggest this to the relevant authorities as you are a BSE member and Mumbai?s leading investor and analyst;

Ramesh Damani: no they should not be banned but regulated..just like we regulate fire...f&O are imp for the market

sanjayvarun1966: Hello Sir, do you think that the markets can see the previous high levels with a next quarter time.

Ramesh Damani: unlikley

hp8989: there should be a system of quoting the stock prices linked to its fundamentals to avoid falty momentum based valuations

Ramesh Damani: markets work on free pricing, dd and supply

Harinder Rawat: Dear Sir, are you still avilable on chat? My question is it the right time to invest or standby for sometime

Ramesh Damani: the right time to invest is when u see value...they step up and buy it

Sid_for_you: Some how dont agree with you view to re-think F

Ramesh Damani: contine yes...but dont keep crazy scripts in the list..keep overall limits

adpatelji: sir to me u r the ultimate..... what a call on sell.double top etcetc..Thanks got out on time ...wish to reenter,do i now?

Ramesh Damani: thanks

cds987: hi sir, joining first time in live chat from switzerland on a bad day.. what`s the prospect of birla corp (cement).. heavily battered in the last few sessions..thanks in advance

Ramesh Damani: i am bullish on cement stocks are cheap and opportunity is good

kvrkrishna: Damaniji - May we know the investment rational behind Igarashi motors? Apart from the Sales to Market cap, I could not find any other parameter attractive in it. Does it hold value in investments or is it a turn around story or is it a monopoly undervalued?

Ramesh Damani: cars will have motors and they will be the supplier...

nandumadhu: If the fundamentals of the market are strong and the bottomline of companies healthy, why do the prices of healthy stocks tumble so much on global cues? Will they bounce back to normal? When?

Ramesh Damani: that is called an opportunity for a savvy investor

vivekrajanand: hi Mr Damani Im Vivek Raj Anand from Apollo Sindhoori, being in the financial sector has been fun for last 4 yrz now, some hard core optimist mey say we have rebound around corner however dont you feel we are now in a bear market and could be staring at 8000 at Sensex soon

Ramesh Damani: too early to say that..it could happen but i see no evidence of that...yet

chandani: SIR< Please this is very IMPORTANT,today when MARKET WAS DOWN more than 16%, I wanted to buy some real good quality stocka but my BROKER refused, he said there is no credit in your account we can not take your buy order,, MY SON who is on business trip here got very Wild, he says such thing can not occure in USA you must SUE your broker for not allowing you to buytrade in stocks specially when you are paying your dues regularly..so today I lost golden opportunity to invest and trade..

Ramesh Damani: difficult question really....u need to sort it out with your brokre...he is not obliged to buy..but i understand the angst u went through

anandkoppikar: Ramesh Sir, I have been great fan of yours and appreciate and respect your knowledge. I would like to know at what levels index will bottom out and at horizon of 6-8 months were do you think our bse index would be and why? Thankyou. With Regards, Anand koppikar.

Ramesh Damani: cant really predict the index level..we have seen perhaps an intermediate bottom at todays low..if that breaks we should be on red alert

chandani: Sir PLEEEEEASE guide me Can I SUE MY BROKER for not allowing me to buy stocks today???????

Ramesh Damani: dont think so

poondi: Hpoe you will answer this. After the dust settles, for a patient invester, are the stocks that you have been recommending the past year still a good buy. Thankyou!

Ramesh Damani: we willhave to review this case by case

phalver: by how much correction will take place in property prices. today 2 bhk in kandivali is 65-70 lacs. don`t you think this is crazy. I hope you answer this

Ramesh Damani: it will correct sharply...property..prices are crazy i agree

Ramesh Damani: markets fall and rise ..part of the rhythm....investors should be patient, buy value and stick it..good luck and see u all next week bye

Stocks to pick - Tata steel, TCS, Petronet LNG

List of the BSE-100 stocks losing most from their ...

Lessons from January 2008

Zen Technologies:-The scrip to watch out for in th...

Find value picks from the day's biggest losers

Market update - big fall of 1400 points sector wis...

Black Monday again-Biggest ever point fall for mkt...

BSE smallcap index: Top gainers and losers

Stocks that hit their 52-week lows in todays fall

Sensex to see 25K by 2008-end

Major IT stocks touched their 52-week lows

Not all small stocks caught in turbulence

HOT STOCK : GODREJ INDUSTRIES

JK LAKSHMI CEMENT LIMITED : Potential MULTIBAGGER

Parsvnath Dev eyes 120-140% bottomline growth - Pr...

For IT, numbers say it all

Stocks to pick: Reliance capital,Axis Bank, Moser ...

Rakesh Jhunjhunwala's latest Portfolio

Tata Nano may expand market by 65%

Nano will drive Tata Motors to top position

RIL ready with $8bn for coal-based fuel project

Rosy Future - Stock Focus - Karuturi networks

Multi Bagger - XL Telecom & Energy

Mukesh Ambani & Anil Ambani - Sibling Excess in Reliance Empire

The famed and continuing rivalry of the Ambani brothers has hurt neither. On the contrary, their war has generated profits for them and the markets.

Battlelines Mukesh wants to be India's answer to Chevron while Anil aims to be the telecom czar Photo: Shailendra Pandey

TALK INDIA today and everyone's talking astronomical growth. There are the hard numbers, the leaping GDP international conference circuits are so proud of. But there's also an exciting potency: a kind of frisson about what lies ahead, about where this growth story can go. And there are the exciting spin-offs. A real sense of movement and selfconfidence in the urban centres. A real sense of belonging in the world community. A real say in international conversations about nuclear power, climate change, IT, off-shore industries, and telecom. A real sense of being the new investment mecca for the world. India's growth story may have spawned a hundred new dissatisfactions and inequities in rural India, but it has changed the way urban Indians understand opportunity. Changed the way Indians see themselves in the global space.

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In all this talk of growth, in this landscape of complicated change, the story of two men dominated this year. Mukesh and Anil Ambani. The fact that they are estranged brothers makes this more unique and enigmatic. They often grace business weeklies. Preside over powerful conferences. Feature on international covers. Yet, in a curious way, they are almost faceless. Less men than numbers; less men than chemical catalysts. A hundred whispers swirl around them — talk of the parallel governments they run, talk of the backroom deals they cut, the enmities they fix — but no one dares speak of them on record. Those who do, hedge even their praise in the blandest terms. They are the magic ions multiplying the fortunes of others. No one's too interested in their personal story. The story of their numbers is enough.

Barely two years ago, in 2005, the talk on the brothers was completely different. Their acrimonious battle for their father's giant empire led to a bitter and highly public split. The matriarch Kokilaben had to step in. Still, it was mid-2006 before the behemoth Reliance Industries was cut up, the debris tidied, and the partition lines made functionally clear. At the time, industry watchers predicted both, or at least one, of the brothers would drown, probably the younger, given his lesser share. Dhirubhai was the wizard, the wise said, the boys were just pale facsimiles. No one could anticipate how wrong the doomsayers were.

Far from drowning, the bruised brothers turned their fight into a kind of competitive piston — steroid-edged, determined — and clocked tremendous growth in the year and half since they split. When Dhirubhai Ambani died in July 2002, his sons' estimated combined net worth was $2.8 billion. (Enough to warrant him a funeral attended by the President of India.) In 2005, around the time of the split, the two had a collective net worth of $7 billion. This year, in the Forbes' list of the world's richest persons, Mukesh alone was valued at $49 billion, while Anil was valued at $45 billion. Forbes called their fighting a "silver lining." During a tea break at a Reuters conference in Mumbai recently, Finance Minister P. Chidambaram reportedly told journalists, "Who cares if the brothers are fighting, the markets are growing because the two are trying to outdo each other."

That's almost an understatement. The Ambanis have driven almost 30 percent of the bourse this year — that's roughly one-third of the country's growth chart. As many as 364 mutual fund schemes are invested in Mukesh and Anil's flagship companies, Reliance Industries (RIL) and Reliance Communications (RCom) respectively — an all-time record in the history of Indian markets. Ramesh Damani, a top broker in the Bombay Stock Exchange (BSE), calls the Ambanis the thunderball effect that's driven the Sensex to a record high of 20,000 points this year. No wonder he also calls them, "a tsunami that brings benefits". Much of the Ambanis' fabled power is rooted in their pedigree on the stock market. Although only about 3 percent of Indians (that is a mere 7 million Indians out of a working-age population of 321 million) invest in the share market, one out of every 4 stock-owning Indians own Reliance shares. And the others would like to own some. A measure of the astonishingly disproportionate hold the Reliance name has on middle-class Indian imagination.

Stock run A record 364 mutual fund schemes have invested heavily in companies owned by the two brothers PHOTOS: AP

Damani, who often joins Anil Ambani on his mandatory 10-km jog on the Nariman Point seafront, quotes figures from Value Research to prove his point. Last year, 170 mutual fund schemes were invested in Mukesh's RIL, with a net worth of Rs 3,542 crore. This year the number has jumped to 201 funds, up almost 18.23 percent, with a total value of Rs 7,572 crore. Similarly, the number of schemes holding Anil's RCom stocks has increased by around 50 percent. From 109 schemes worth Rs 1,513 crore last year to 163 schemes worth Rs 3,774 crore this year.

MORE SHOCK-and-awe numbers: In the last three months, the Sensex spiked about 30 percent before losing some ground. In the same phase, Mukesh's Reliance Petroleum climbed 90 percent, Anil's Reliance Energy surged 130 percent and his gas trading firm, Reliance Natural Resources, skyrocketed more than 250 percent. The shares of Anil's flagship RCom have risen more than 35 percent in the past three months, propelling its market capitalisation to $35 billion, while RIL's stock price has jumped 60 percent, making it India's largest listed company, with a market value of nearly $100 billion.

Market crash: A quick guide for young investors
Two simple habits to help you create wealth
Buying is more important than Selling!

All of this within a year and half of the split. No one's talking any more about the brothers' squabbles or Sunday breakfasts with their mother at Sea Winds, the Colaba mansion that is still home to both. No one's overly interested in Mukesh's slow reaction time to business plans or Anil's many pilgrimages (he is the only industrialist to have circled the Kailash Mansarovar thrice). "What has replaced gossip is growth," says Krishnan Sitaraman, Crisil's financial sector rating head. "Fund managers love to park their money in stocks that ensure a cushion in a bearish market. And these two companies are constantly on a growth curve." Chari Lokapriya, who manages 950 million dollars worth of stocks in India, Brazil and China at BNP Paribas Asset Management, London, says, "The brothers are geniuses in the market. They have consistently recognised the drivers of growth and built businesses to cater to that demand."

The ability to recognise drivers of growth is certainly the main fulcrum on which the brothers' gift for making money turns. The Ambanis believe in being first movers. Dhirubhai's ambition was to reduce phone call rates to 65 paise — the price of a post-card. He understood the untapped potential of mass markets. Reward your shareholders in your pursuit to be number one, he said. His sons have retained his mantra. Anil Ambani is always first to announce special rates for mobile users. And in the last year and half alone, he has amplified and diversified his interests in power, entertainment, hotels, real estate and communications. Mukesh, on the other hand, has consistently raised the stakes of the hydrocarbon game, investing thousands of crores in his refineries, developing the KG D-6 gas basin off the Andhra Coast, and buying oil exploration blocks across the world. His ambition: to become India's answer to Chevron. Similarly, his 6-billion dollar retail game plan, which involves setting up subsidiary stores across 1,500 cities and towns, seeks to destroy India's generations- old middlemen chain — supposedly to ensure low prices in his Reliance Fresh stores.

But acumen is not the only fulcrum on which the brothers turn. It is axiomatic that men cannot make astronomical wealth unless they have learnt to manage the world and bend it to their convenience. In a success-drunk society, that is part of their mystique. Two year earlier, when the Ambani empire was being sliced in half, it was rumoured that one of the thorniest divisions was their political access. In a country driven by favour rather than public policy, how were the famed hotlines to be shared? How were the Central and state bureaucracies to be divvied up? Itconvenience. In a success-drunk society, that is part of their mystique. Two year earlier, when the Ambani empire was being sliced in half, it was rumoured that one of the thorniest divisions was their political access. In a country driven by favour rather than public policy, how were the famed hotlines to be shared? How were the Central and state bureaucracies to be divvied up? It is impossible to map such ground accurately, yet many of the boundaries seem public. When Mukesh had trouble over the pricing of his gas wells off the coast of Andhra, his company blamed it on Chief Minister YS Rajasekhara Reddy, a supposed well-wisher of the younger sibling. Similarly, when Anil faces trouble with his airport, power and telecom projects, the unsubstantiated suggestion is that Civil Aviation Minister Praful Patel, Petroleum Minister Murli Deora and Telecom Minister A. Raja are playing ball for his brother. Anil himself is publicly close to Mulayam Singh Yadav, CPI leader AB Bardhan and CPM leader Sitaram Yechury. Mukesh, less conspicuously, is supposedly an intimate of 10, Janpath and has the goodwill of men like Prime Minister Manmohan Singh and Finance Minister P. Chidambaram.

Some suggest Anil's friendship with Mulayam Singh Yadav and Amar Singh was the seed of the split. "But Anil is a friend's man," says a confidant in Delhi, of course, on condition of anonymity. "He connects within five minutes or he doesn't. If you ever ask him about his associates, he will say, 'Do I ask you whom you mix with and why you mix with them?'" Driven by friendship or function, the brothers' shadowy presence in the political life of the country is unmistakable. They are often said to mould business- friendly policy behind the scenes. This may outrage purists and competitors, but makes their stakeholders immeasurably happy.

FOR THE moment though, neither acumen nor political connection is as powerful a fulcrum as the competitive piston between the brothers, fuelled by a subterranean need to emerge the best. Colleagues and analysts say nothing is driving the brothers' growth more than their fight to flourish. At the time of the split, they had signed a non-competitive clause that would hold valid for five years. They were not to encroach on each other's interests. The resolve dipped in barely a year. Both brothers have bid for the hi-profile Mumbai Trans Harbour Sea Project, which will construct the first bridge across the sea in India, linking Sewri Island to Navi Mumbai; both have bid for the Mumbai airport development project; and Anil has begun to express interest in NELP (New Exploration Licencing Policy) and in bids for oil fields across the globe — his brother's core terrain.

Earlier this year, Mukesh was deliberating with his top honchos at around 9pm in his Makers Chamber office in Mumbai, when news came that Anil had decided to turf him and his employees out of the sprawling Dhirubhai Ambani Knowledge Centre (DAKC) in a month's time.DAKC now belonged to the younger brother and though the eviction could have waited till 2008, Anil was in a hurry. Finding room for 1,200 employees at a month's notice in space-challenged Mumbai seemed bleak, given that Mukesh's own Reliance Corporate Park, located half a kilometre away, was still under construction. But neither brother is accustomed to defeat. Mukesh stayed late in office that night burning the lines. In three week's time — 22 days to be precise — 1,200 RIL employees had been relocated in a new office six kilometres away.

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But the race expresses itself in other — healthier — ways too. Days after Mukesh's company discovered a gas well in the Godavari basin a month ago, Anil was seen negotiating with the New York-based Starwood Hotels and Resorts to launch its upscale St Regis brand. Simultaneously, Anil's RCom is also set to expand its BPO operations over the next two years, moving from its current strength of 7,800 employees to 30,000 employees. (According to Nasscom, the Indian BPO industry, which currently employs 5,53,000 people, is expected to increase its exports to $11 billion from the current $6.3 billion figure.)

Both brothers are a chip off the old patriarch; both have an instinct for trouble-shooting. This makes the race more complex, more acetylene. 2007 has seen both brothers firefighting: Mukesh with his troubled retail ventures in UP and Jharkhand; Anil with rivals Vodafone and Airtel over the GSM tangle. Interestingly, their approaches have been similar. If either group is visibly enveloped in tension for a day, be assured the next day they will be clinching a mega deal in some other part of the world. And announcing it. Both brothers understand the Reliance name must always exude buoyancy.

Examples abound: 24 hours after a Bangalore- based lawyer, released a book questioning Mukesh's business ethics, RILVice President EVS Rao announced plans to invest a whopping Rs 17,000 crore in oil and gas exploration over the next five years. The markets ignored the first news but reacted instantly to the second.

Similarly, days after Anil had upped the ante in the ongoing spectrum war by writing a letter to Communications Minister A. Raja in November, accusing GSM operators of cornering spectrum under the valuable 900 MHz, and triggering tensions on the bourse, his company — the country's number two mobile services operator, which already operates CDMA services in 21 of India's 23 telecom zones — announced that it was placing an order for 70 million new GSM lines in the coming year, valued at $5.6 billion, and is pushing to keep the per line cost at around $50 as against the current market rate of $80. The shares faithfully vaulted.

Little wonder that, at least on paper, the ascent of many Reliance companies' stocks has been huge and propped the two Ambanis at close to $100 billion (Rs 3.96 trillion). "The rise in share prices of these companies is much higher than fundamentals should allow," says veteran analyst SP Tulsian. "But it is growing simultaneously on both sides of the fence, primarily on market rumours of better profits and new expansion plans.

"They are experts in manipulating the system to their benefit. Government after government has moulded policies to suit the
undivided Reliance, and now, the divided Reliance. The Birla family issue is still in the courts, the Bajaj tension is very much in the news, but you will see not a line about the animosity between the brothers. Maybe someone told them to fight in private and get on with business," says public interest lawyer Prashant Bhushan, who has been tracking the company for years and questions many of their practices. He has hardly ever seen the Ambanis file defamation suits against those who malign them. "Perhaps they know better ways to handle such crises in life," he says wryly.

SOCIAL ACTIVIST Sanjay Kaul has another insight into the brothers' functioning. At a time when older blue-chip companies like the Tatas are constantly in the news over social conflicts related to their projects, Reliance has managed to keep a surprisingly low profile. When tensions mounted recently in Haryana and Punjab over land acquisition for their SEZ, RIL officials apparently spent long hours with the farmers explaining why they should not agitate because the value of their land — sold cheaply to the state government — had gone up. "I've not heard of any agitation thereafter. I don't know if they promised everyone jobs at the SEZ," says Kaul.

Nobody would deny the brothers understand buoyancy, market sentiment, and how to bend the world to their will.

So far the brothers have displayed many of the famed qualities of the father: doggedness, acumen, foresight, gumption, and a pragmatically elastic view of business ethics. But what are their individual traits? What will drive them in the future when the impetus of the feud has waned a little? No one will hazard the psychoanalysis. But a few incidents offer insight.

Mukesh, to use Praful Patel's words, "is a nononsense man whose only focus is work, work, and work." That focus seems to have yielded the no-nonsense man impossible personal wealth. This year, Mukesh famously outstripped Bill Gates, Warren Buffet and Carlos Slim Helu to be the richest man in the world; famously gifted his wife Nita a Rs 250-crore customised jet; and is famously building a 27-storey house in South Mumbai, which will house 370 servants, a helipad and 6-floors of car parking. As some starryeyed wannabe computed: if Mukesh spends one crore a day, it will take 400 years for him to run through his current wealth. Says ad guru Alyque Padamsee, "Mukesh is like a Pharaoh who keeps building these pyramids one after another, so big that people forget the last one."

But curiously, the pharaoh does not seem to revel in the pharaoh's luxuries. Or, at least, in reports of them. When news of him pipping Gates and Buffet made headlines, Mukesh apparently called Suhel Seth, Delhi's most networked ad man, and lamented, "When will the dailies know such news does not make me happy? I wish the papers would write about my vision and my difficulties in putting my plans in place instead." Minutes after the wires reported the development, RIL issued a quick clarification asserting the calculations were inaccurate. And later, at a shareholders' meeting, Mukesh brought up the subject again. "There have been several reports in the media about my personal wealth. Frankly, I'm amused. It matters little to me whether my personal fortunes are measured in billions or millions," he said. (Kukaswada, the village Dhirubhai came from — a poor, saline settlement in the Junagadh district — and which has benefited very little from the association, might wonder why Mukesh won't share out the difference. But that is a hypothetical argument.)

The younger brother has a different metabolism. In a sense, he has more to prove. Divested of his father's logo, he is working on creating another identity: the Anil Dhirubhai Ambani Group. Six agencies, including McCann and JWT and Profit, a US-based brand strategy group, are working on his identity. Megastar Amitabh Bachchan and son Abhishek are on board as ambassadors. So is Mahendra Singh Dhoni. Analysts say Anil's group is associated with all the virtues of the old company: size, stability and performance. What its added to itself is the image of a youthful company trying to take on the world. Think Bigger is their magic mantra. Anil acted quickly on that with the branding of his FM channel. The agencies had branded it Radio Mango. Anil vetoed that for Big FM, a campaign personally supervised by him.

Suno Sunao, Life Banao is their tagline. That works equally for both brothers.