Ketan Parekh Still Active says SEBI

Big bull Ketan Parekh’s shadow still looms large over Indian markets. Five-and-a half-years after he was banned from trading, the capital market regulator has discovered that he is still executing trades through front-entities.

While banning 26 entities from dealing in the securities market, the Securities and Exchange Board of India has asked the income tax department, the Enforcement Directorate, stock exchanges and depositories to investigate the matter further. The regulator has used pointers from income tax records, trading data, phone records and off-market transaction to establish a link involving a complex chain of transactions.

Meanwhile, Sebi has given the banned entities 15 days to respond.

In a 114-page report that was put up on the regulator’s website late this evening, Sebi said preliminary investigations revealed that Parekh “has conveniently used the connected clients at will as his conduits to execute trades desired by him in the securities market”.

Sebi stumbled on Parekh’s presence in the stock markets when it was probing a case of synchronised trading by five entities — Maruti Securities, Kundan Leasing and Finance, Chandra Financial Services, Jay Investrade and HSM Financial Services.

These entities were under scrutiny for executing synchronised deals in Cals Refineries, Confidence Petroleum, Bang Overseas, Temptation Foods and Shree Precoated Steels, now known as Ajmera Realty & Infra India, over 26 months, starting January 2007.

During the investigations, Sebi observed that many of the entities, which executed 255 synchronised deals during the period under investigation, were located at the same premises in Mumbai. In addition, two individuals — Harsh Shirish Maniar and Jay Shirish Maniar — were directors in three of the companies.

The permanent account number of these two individuals revealed that their father, Shirish Shantilal Maniar, had been chargesheeted by the Central Bureau of Investigation (CBI) along with Ketan Parekh and others, in the scam involving the Madhavpura Mercantile Co-operative Bank.

Sebi depended on inputs received from the income tax department, which had investigated the source of funds for loan repayments to Madhavpura Bank by Parekh. The tax department observed that in August 2008, Rs 26.43 crore was paid by the KP Group of companies to Madhavpura Bank.

To do so, Parekh is said to have opted for multi-layered transactions through which the payment originated from group company KNP Securities and was routed through various entities.

Sebi said the fund flow chart, prepared by the income tax department, showed many of the connected clients named in the order appeared as conduits for the funds originating from the Parekh group company.

The five entities that were being probed for synchronised trading were found to have dealt among themselves and also transferred shares through off-market transactions, thereby creating unnatural market volumes.

What also raised suspicion was the fact that clients claimed to have received an interest-free loan, which was immediately ‘on-lent’ as an interest free loan to the other party. “This is highly strange and inexplicable,” the report said. In addition, the parties did not have any return loan agreement.

From the trading data, it was observed that in the scrips of Cals and Bang, connected clients had substantial trading concentrations in August 2008, when the funds originating from a KP company were flowing to the connected clients.

The Sebi order also pointed to the possibility of the connected clients acting as conduits for layering and integration of money. Citing one case, Sebi said the tax department had observed that during August 2008, M R Share Brokers, which was at the sixth layer of payment, denied having made payments of Rs 50 lakh as claimed by Jay Investrade.

Source : Business Standard

Post Session Commentary - June 2 2009

The domestic market closed the session on a mixed note as Indian benchmark index BSE Sensex closed just above the dotted line while NSE Nifty closed marginally lower. Tracking the positive global markets, the Indian benchmark indices opened with decent gains but did not able to sustain at the higher level as the profit booking takes a lead across the selective indices. The weak start of European markets and weakening of Asian markets after initial surge dampened the sentiments of the investors to some extent that led to selling pressure across the certain counters. However, the market made a smart turnaround in the final hours of the session due to some favoring domestic data like the India’s infrastructure sector output jumped 4.3% in April from 2.3% in the same month last year. Moreover, the output has risen 2.7% in the March 2009 fiscal as against 5.9% growth in 2007/08.
The Indian stock market witnessed strong volatility throughout the trading session as the investors takes calculated steps to book further position after four straight day of continuous rally. However the late buying at the lower levels led the market to pare mst of its losses to close almost on a flat note. Moreover, in the global arena, the US Markets closed in green on the back of good economic data. Flurry of economic data pleased the investors bringing broad based buying sentiments that pushed S&P 500 to fresh highs for 2009 and the index also managed to close above 200-day moving average for the first time since December 2007. The personal income for the month of April recorded a surprise growth of 0.5% and on the other hand the personal spending for April declined a better than expected 0.1%. Construction spending for the month of April showed a surprise growth of 0.8% month-over-month. The ISM Manufacturing index for May was also inline with the expectations at 42.8. However, benchmark indices showed volatility during the session with BSE Sensex closed above 14,850 level and NSE Nifty above 4,520 mark. From sectoral front, investors on-loaded position across the sectors led by Consumer Durables, Metals and Auto while Realty, Power and PSU index remained on the sellers radar.
Among the Sensex pack 13 stocks ended in green territory and 17 in red. The market breadth indicating the overall health of the market remained firm as 1,664 stocks closed in positive while 1,130 stocks closed in negative and 56 stocks remained unchanged in BSE.
The BSE Sensex closed up by 34.28 points or 0.23% at 14,874.91 and NSE Nifty closed marginally lower by 4.65 points or 0.10% at 4,525.25. BSE Mid Caps and Small Caps closed with gains of 42.47 and 56.20 points at 5,246.68 and 6,252.98. The BSE Sensex touched intraday high of 14,994.31 and intraday low of 14,608.23.
Gainers from the BSE Sensex pack are Tata Steel (8.24%) followed by HDFC (4.19%), Sterlite Industries (3.87%), Tata Motors (3.31%) and M&M (2.10%).
Losers from the BSE Sensex pack are ACC Ltd (5.83%), Ranbaxy Labs (4.50%), Reliance Infra (4.34%), Tata Power (3.36%), DLF (2.43%) and HDFC bank (2.41%).
On the global markets front the Asian markets which opened before the Indian market, closed mixed. Hang Seng, Strait Times and Seoul Composite closed lower by 2.64%, 0.18% and 0.16% at 18,389.08, 2,375.82 and 1,412.85. While Nikkei and Shanghai Composite closed up by 0.27% and 0.11% at 9,704.31 and 2,724.30.
European markets which opened after the Indian market are trading mixed. In Frankfurt the DAX index is trading up by 0.11% at 5,148.42 and in London FTSE 100 is trading lower by 0.53% at 4,482.49.
The BSE Consumer Durables index increased (2.63%) or 74.62 points to close at 2,906.55. Main gainers are Rajesh Export (9.56%), Blue Star (3.99%), Titan Industries (2.31%) and Gitanjali Gems (1.89%).
The BSE Metal index surged (2.48%) or 283.62 points at 11,740.89. Scrips that mostly gained are Ispat Industries (11.34%), Tata Steel (8.24%), Gujarat NRE (9.68%), Hindustan Zinc (6.68%), Jai Corp (4.99%) and Sterlite Industries (3.87%).
The BSE Auto index also ended higher by (1.37%) or 64.25 points at 4,764.30. Ashok Leyland (7.82%), Tata Motors (3.31%), Bajaj Auto (2.40%), Hero Honda (2.24%) and Mahindra & Mahindra (2.10%) ended in positive territory.
The BSE Realty index fell (2%) or 80.67 points to close at 3,954.92. Losers are Phoenix Mill (3.05%), DLF (2.43%), Omaxe Ltd. (2.26%), Ansal Infra (1.55%) and Parsavnath (1.18%).
The BSE Power slipped (1.65%) or 48.93 points at 2,908.12. Losers are Tata Power (3.36%), Neyiveli Lig (3.27%), GVK Power (2.07%), Torent Power (2.31%) and Suzlon Energy (2.08%).
The BSE IT index gained (0.17%) or 5.37 points to close at 3,121.34. Gainers are Rolta Ind (11.42%), Tech Mahindra (7.09%), Patni Computer (4.99%), NIIT Ltd. (3.18%) and HCL Technologies (3.87%).
The BSE Bankex decreased (0.31%) or 25.18 points at 8,163.03. Losers are Bank of India (4.55%), Indus Ind Bank (4.05%), Kotak Bank (2.95%), Oriental Bank (2.88%), PNB (2.55%) and HDFC Bank (2.41%).
Punjab National Bank fell 2.55%. The Bank will be raising Upper Tier II Bonds as PNB Upper Tier II Bond Issue Series IX through an issue size of Rs 500 crore. The proposed date of opening is June 04, 2009 and proposed date of closing is June 04, 2009.
Hindustan Petroleum Corporation Ltd (HPCL) slipped 3.12%. The company has posted a net profit of Rs 51040.40 million for the quarter ended March 31, 2009 as compared to Rs 3845.10 million for the quarter ended March 31, 2008. Total Income has decreased from Rs 317794.90 million for the quarter ended March 31, 2008 to Rs 255804.60 million for the quarter ended March 31, 2009.
Ambuja Cements Ltd galloped 2.40% after cement shipments rose 8.26% to 16.38 lakh tons in May 2009 over May 2008.
Hero Honda Motors Ltd gained 2.24% to Rs. 1,397.30 after vehicle sales rose 22.5% to 3.82 lakh units in May 2009 over May 2008.
Shree Cement Ltd spurted 1.52% after cement shipments surged 32.19% to Rs 7.35 lakh tons in May 2009 over May 2008.

Sensex measly up

Starting firm on strong global cues, the Sensex rallied sharply in morning trades touching an intra-day high of 14994. Consumer durable and metal stocks moved up sharply, whereas realty and power stocks remained subdued. The index however saw profit booking towards mid of the day and entered negative territory to touch the day's low of 14608. At one point of time, the market appeared to be heading towards a negative close on the back of strong bout of selling. But the market recovered on buying in few pivotal stocks and the Sensex closed at 14875, up 34 points. The 50-stock index, Nifty, ended the session at 4525, down 5 points.
The market breadth, the number of advancing shares to declining ones, was positive. Of the 2,850 stocks traded on the BSE, 1,664 stocks advanced, whereas 1,130 stocks declined. Fifty six stocks ended unchanged. Seven of the 13 sectoral indices on the BSE remained above their yesterday’s close. BSE CD gained 2.63% followed by BSE Metal (up 2.48%), BSE Auto (up 1.37%) and BSE CG (capital goods; up 1.37%). However, BSE Realty (down 2%), BSE Power, BSE PSU, BSE Bankex, BSE Teck and BSE Oil & Gas closed with marginal losses.
Among the Sensex stocks, Tata Steel was the leading gainer, soaring 8.24% at Rs474.05 for the day. HDFC advanced 4.19% at Rs2,394.95, Sterlite Industries jumped 3.87% at Rs690.50, Tata Motors shot up by 3.31% at Rs349.15, Mahindra & Mahindra added 2.10% at Rs725.40, while State Bank of India, Grasim Industries, ICICI Bank, Larsen & Toubro and Sun Pharmaceutical Industries closed with marginal gains. Among laggards, ACC tumbled 5.83% at Rs784.50, Ranbaxy Laboratories shed 4.50% at Rs262.25 and Reliance infrastructure declined by 4.34% at Rs1244.45. Tata Power, DLF and National Thermal Power Corporation lost 1-3% each.
Over 6.85 crore shares of Satyam Computer Services changed hands on the BSE followed by Essar Oil (5.78 crore shares), Ispat Industries (4.68 crore shares), Unitech (3.25 crore shares) and IFCI (3.23 crore shares).

BSE Bulk Deals to Watch - June 2 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
2/6/2009 521070 ALOK INDUSTR NIRVAN HOLDINGS PVT. LTD B 2585000 23.27
2/6/2009 521070 ALOK INDUSTR SONATA INVESTMENTS LTD S 3000000 23.07
2/6/2009 530715 ALPS INDUST BEAUMARIS INVESTMENTS LIMITED S 285000 13.65
2/6/2009 512149 AVANCE TECHN CHANDRAKANTBSHAH B 35025 20.16
2/6/2009 531733 BAFNA SPINNI SURSHING GOVINDBHAI PARMAR B 200000 2.46
2/6/2009 531733 BAFNA SPINNI PUKHRAJHIRACHANDBAFNA S 1030000 2.45
2/6/2009 530809 BNR UDYOG LT CHETAN RATHI B 60000 7.50
2/6/2009 530809 BNR UDYOG LT B N RATHI SECURITIES LIMITED S 60000 7.50
2/6/2009 531682 CAT TECHNOL BASMATI SECURITIES PVT LTD B 376069 6.30
2/6/2009 531682 CAT TECHNOL JMP SECURITIES PVT LTD S 230000 6.25
2/6/2009 505923 CEEKAY DIAKI ISF SECURITIES LIMITED B 20312 35.96
2/6/2009 531337 CHAN GUIDE I MANOJ HIRACHAND MOTTA B 50000 19.90
2/6/2009 531337 CHAN GUIDE I VIJAYKAPURCHANDSHAH S 50000 19.90
2/6/2009 531270 DAZZEL CONFI TAPANKUMAR C JOGATAR HUF B 50000 7.34
2/6/2009 531270 DAZZEL CONFI PARESHDHIRAJLALSHAH S 35342 7.34
2/6/2009 511636 DJS STOCK SH RADHESHYAM CHOUDHURYRADHESHYAM CHOUDHURY S 31800 26.70
2/6/2009 500134 ESSAR OIL LTD. CITI GROUP GLOBAL MARKETS MAURITIUS PVT. LTD B 12453327 150.00
2/6/2009 500134 ESSAR OIL LTD. MATTERHORN VENTURES S 30000000 153.35
2/6/2009 505790 FAG BEARING INDIA PRIMA FUND S 103931 372.07
2/6/2009 523277 G V FILMS LT JMP SECURITIES PVT LTD S 2137102 2.84
2/6/2009 532857 GLORY POLY HANURANG VINIMAY PVT LTD S 88655 27.08
2/6/2009 504701 GONTERM PEIP STATE BANK OF INDIA S 100000 27.09
2/6/2009 514034 JBF.IND.LTD VAIDICRE SOURCES PRIVATE LIMITED B 481000 67.65
2/6/2009 514034 JBF.IND.LTD SPARC PESTI CHEM LIMITED S 481000 67.65
2/6/2009 532642 JINDAL SOUTH QUANTUM ENDOWMENT FUND N V S 77000 575.38
2/6/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL B 41801 29.85
2/6/2009 516078 JUMBO BAG LT SEEMAHEMANDRAAGARWAL S 50000 29.78
2/6/2009 524826 JUPITER BIOS FAIRDEAL INFIN SERVICES PVT. LTD. B 110145 78.58
2/6/2009 524826 JUPITER BIOS DYNAMIC STOCK BROKING INDIA PVT LTD B 109883 81.77
2/6/2009 524826 JUPITER BIOS FAIRDEAL INFIN SERVICES PVT. LTD. S 104145 76.54
2/6/2009 524826 JUPITER BIOS ABN AMRO BANK NV S 500000 78.38
2/6/2009 524826 JUPITER BIOS DYNAMIC STOCK BROKING INDIA PVT LTD S 85883 81.06
2/6/2009 524826 JUPITER BIOS HSBC BANK (MAURITIUS) LIMITED S 331698 76.37
2/6/2009 523876 JYOTI OVERSE NAROTTAM DAS SOMANI S 25177 2.69
2/6/2009 532081 K SERA SERA OUDH FINANCE & INVESTMENT PVT LTD B 640301 15.57
2/6/2009 532081 K SERA SERA S V ENTERPRISES B 1756636 15.42
2/6/2009 532081 K SERA SERA S V ENTERPRISES S 1756636 15.77
2/6/2009 532283 KASHYAP TEC JMP SECURITIES PVT LTD B 7511711 1.33
2/6/2009 532283 KASHYAP TEC MAHESH KUMAR & SONS HUF B 3011775 1.29
2/6/2009 532283 KASHYAP TEC JMP SECURITIES PVT LTD S 8512144 1.33
2/6/2009 532283 KASHYAP TEC MAHESH KUMAR & SONS HUF S 3081775 1.30
2/6/2009 590041 KAVERI TELE IMAGE EVENTURES LTD. S 52751 56.95
2/6/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. B 59505 7.49
2/6/2009 530255 KAY POW PAP SUNDERDASSAGARWAL B 104599 7.40
2/6/2009 530255 KAY POW PAP B.S.KHANDELWAL B 53300 7.05
2/6/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. S 56240 7.60
2/6/2009 530255 KAY POW PAP KAY CHANDRA IRON ENGINEERING WORKS PRIVATE LIMITED S 200000 7.01
2/6/2009 530255 KAY POW PAP SUNDERDASSAGARWAL S 106799 7.24
2/6/2009 519570 LAKSHMI OVER COPTHALL MAURITIUS INVESTMENT LIMITED S 497521 94.60
2/6/2009 509048 LANCOR HOLDS GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD S 217222 36.38
2/6/2009 500256 LOK HOUSI CO SPOT LIGHT SECURITIES PRIVATE LIMITED S 300000 38.25
2/6/2009 511551 NETWO ST BRO SALASAR STOCK BROKING LIMITED B 91071 48.34
2/6/2009 511551 NETWO ST BRO TRINITY CAPITAL S 72874 48.50
2/6/2009 532722 NITCO LTD ALBULA INVESTMENT FUND LTD B 169945 61.70
2/6/2009 590057 NORTHGATE TE Naman Securities & Finance Pvt. Ltd. B 314072 49.09
2/6/2009 590057 NORTHGATE TE JMP SECURITIES PVT LTD B 471796 48.13
2/6/2009 590057 NORTHGATE TE BP FINTRADE PRIVATE LIMITED B 217268 49.16
2/6/2009 590057 NORTHGATE TE Naman Securities & Finance Pvt. Ltd. S 411368 48.94
2/6/2009 590057 NORTHGATE TE JMP SECURITIES PVT LTD S 362494 49.13
2/6/2009 590057 NORTHGATE TE BP FINTRADE PRIVATE LIMITED S 206257 49.00
2/6/2009 523483 PACIFIC INDU WITHAL COMMERCIAL PVT LTD B 13000 264.25
2/6/2009 523483 PACIFIC INDU ASHOKA FINSTOCK LTD B 13000 255.97
2/6/2009 523483 PACIFIC INDU ASHOKA FINSTOCK LTD S 13113 264.25
2/6/2009 531769 PFL INFOTECH MEHERDADKERMANI S 31000 3.59
2/6/2009 532675 PRITHVI INFO A.A.DOSHI SHARE & STOCK BROKERS LTD B 128649 76.04
2/6/2009 532675 PRITHVI INFO A.A.DOSHI SHARE & STOCK BROKERS LTD S 128649 76.03
2/6/2009 509839 PUNJAB WOOLC DEEPINDERSINGHPOONIAN B 59853 7.13
2/6/2009 509839 PUNJAB WOOLC IFCI LTD S 59000 7.00
2/6/2009 524037 RAMA PHOS LT HI TECH STRUCTURES PVT LTD B 28440 14.83
2/6/2009 590077 RANKLIN SOLU V MANIKYALA RAO B 36484 29.60
2/6/2009 513558 REAL STRIP L SHANTILALSHETH S 25025 50.00
2/6/2009 500366 ROLTA IND GENUINE STOCK BROKERS PVT. LTD. B 908260 139.39
2/6/2009 500366 ROLTA IND MORGAN STANLEY MAURITIUS COMPANY LIMITED B 1100681 138.52
2/6/2009 500366 ROLTA IND GENUINE STOCK BROKERS PVT. LTD. S 908260 139.50
2/6/2009 526753 ROSELABS LTD NIRMALADEVITRILOKCHANDAGRAWAL S 94199 10.27
2/6/2009 524446 SABE ORG GUJ CLEARWATER CAPITAL PARTNERS (CYPRUS) LIMITED S 150250 23.12
2/6/2009 530073 SANGHVI MOV KOTAK MAHINDRA (U.K.)LTD. A/C MONSOON INDIA INFLECTION FUND B 883064 157.25
2/6/2009 530073 SANGHVI MOV TRIPLE M INVESTMENTS LIMITED S 936226 157.87
2/6/2009 531898 SANGUINE MD NOVAIDJAVEEDMERCHANT B 100000 3.79
2/6/2009 531898 SANGUINE MD DHIRAJLAL V SANGHVI HUF S 250000 3.78
2/6/2009 531898 SANGUINE MD DWARKESH RESTAURANT PVT LTD S 250000 3.79
2/6/2009 531898 SANGUINE MD HIMANSHU AGRAWAL S 88890 3.58
2/6/2009 500376 SATYAM COMP TRANSGLOBAL SECURITIES LTD. B 6211098 61.77
2/6/2009 500376 SATYAM COMP TRANSGLOBAL SECURITIES LTD. S 6211098 61.84
2/6/2009 512105 SHREENATH BEENA DEVI KANDA B 1500 65.00
2/6/2009 512105 SHREENATH BRIJ MOHAN KANDA B 1500 65.00
2/6/2009 512105 SHREENATH KRISHNA KUMARKEDIA B 1500 65.00
2/6/2009 512105 SHREENATH GEETAKEDIA B 1500 65.00
2/6/2009 512105 SHREENATH SARIKABANSAL B 1500 65.60
2/6/2009 512105 SHREENATH SEEMABANSAL B 1500 65.60
2/6/2009 512105 SHREENATH PRIYANKABANSAL B 1500 65.60
2/6/2009 512105 SHREENATH OMBANSAL B 1500 65.60
2/6/2009 512105 SHREENATH S K INVESTMENTS S 10600 65.32
2/6/2009 512105 SHREENATH ASHWIN C JAIN (HUF) S 1500 65.60
2/6/2009 512105 SHREENATH SALONIMITTAL S 2000 65.30
2/6/2009 512105 SHREENATH PREETIDHINGRA S 2000 65.30
2/6/2009 512105 SHREENATH VIPULDHINGRA S 2000 65.30
2/6/2009 526133 SUPERTEX IND PATEL NITABEN SHAILESHBHAI S 50000 49.11
2/6/2009 532765 USHER AGRO MAVI INVESTMENT FUND LTD. S 200000 30.84
2/6/2009 532765 USHER AGRO OODNAP AGROTECH LIMITED S 692117 31.06

NSE Bulk Deal Watch - June 2 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
02-JUN-2009,ABAN,Aban Offshore Ltd.,WARD FERRY MGMT LTD A/C WF ASIA FUND LIMITED,BUY,268000,949.75,-
02-JUN-2009,ADLABSFILM,Adlabs Films Limited,A TO Z STOCK TRADE PRIVATE LIMITED,BUY,419387,379.46,-
02-JUN-2009,ALOKTEXT,Alok Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,3658151,23.53,-
02-JUN-2009,BARTRONICS,Bartronics India Limited,MANISH VRAJLAL SARVAIYA,BUY,145770,139.31,-
02-JUN-2009,ESCORTS,Escorts India Ltd.,NIRSHILP SECURITIES PVT. LTD.,BUY,177821,77.31,-
02-JUN-2009,ESCORTS,Escorts India Ltd.,TRANSGLOBAL SECURITIES LTD.,BUY,608430,77.16,-
02-JUN-2009,EVINIX,Evinix Accessories Limite,HI-GROWTH CORPORATE SERVICES PVT. LTD.,BUY,856690,3.87,-
02-JUN-2009,GSSAMERICA,GSS America Infotech Limi,NAGARJUNVALLURIPALLI,BUY,18000,181.05,-
02-JUN-2009,IFCI,IFCI Ltd.,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,3996272,51.49,-
02-JUN-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,3890866,51.43,-
02-JUN-2009,IFCI,IFCI Ltd.,AMBIT SECURITIES BROKING PVT. LTD.,BUY,4830912,51.95,-
02-JUN-2009,IFCI,IFCI Ltd.,JAYPEE CAPITAL SERVICES LTD.,BUY,4702394,51.37,-
02-JUN-2009,IFCI,IFCI Ltd.,NIRSHILP SECURITIES PVT. LTD.,BUY,3712422,51.71,-
02-JUN-2009,INDOWIND,Indowind Energy Limited,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,264098,40.82,-
02-JUN-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,13502289,25.10,-
02-JUN-2009,KSERAPRO,K Sera Sera Productions L,OUDH FINANCE & INVESTMENT PVT LTD,BUY,648173,15.20,-
02-JUN-2009,LITL,Lanco Infratech Limited,TOP MANAGERS PACIFIC ALPHA FUND 2,BUY,1130058,366.92,-
02-JUN-2009,NORTHGATE,Northgate Technologies Li,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,242170,47.94,-
02-JUN-2009,PRAENG,Prajay Engineers Syndicat,BP FINTRADE PRIVATE LIMITED,BUY,220329,43.67,-
02-JUN-2009,RIIL,Reliance Indl Infra Ltd,C D INTEGRATED SERVICES LTD.,BUY,137219,1182.83,-
02-JUN-2009,RIIL,Reliance Indl Infra Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,87834,1164.42,-
02-JUN-2009,RIIL,Reliance Indl Infra Ltd,PRB SECURITIES PRIVATE LTD.,BUY,98457,1188.51,-
02-JUN-2009,ROLTA,Rolta India Ltd.,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,824880,139.63,-
02-JUN-2009,ROLTA,Rolta India Ltd.,GENUINE STOCK BROKERS PVT LTD,BUY,1192970,139.95,-
02-JUN-2009,ROLTA,Rolta India Ltd.,MORGAN STANLEY MAURITIUS COMPANY LTD,BUY,2915000,138.50,-
02-JUN-2009,SASKEN,Sasken Commu Techno Ltd,MANISH VRAJLAL SARVAIYA,BUY,357603,113.38,-
02-JUN-2009,SATYAMCOMP,Satyam Computers Ltd,OM INVESTMENTS,BUY,6415254,62.15,-
02-JUN-2009,SATYAMCOMP,Satyam Computers Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,5873887,61.87,-
02-JUN-2009,SELMCL,SEL Manufacturing Company,KANUDIA CAPITAL & MANAGEMENT SERVICES PVT. LTD.,BUY,93127,85.66,-
02-JUN-2009,VENKEYS,Venky's (India) Limited,KOOKMEN SECURITIES P LTD,BUY,100,141.65,-
02-JUN-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1399059,22.74,-
02-JUN-2009,ADLABSFILM,Adlabs Films Limited,A TO Z STOCK TRADE PRIVATE LIMITED,SELL,419387,380.21,-
02-JUN-2009,ALOKTEXT,Alok Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,3658258,23.53,-
02-JUN-2009,ALPSINDUS,Alps Industries Ltd.,BEAUMARIS INVESTMENTS LIMITED,SELL,315000,13.80,-
02-JUN-2009,BARTRONICS,Bartronics India Limited,MANISH VRAJLAL SARVAIYA,SELL,145770,141.30,-
02-JUN-2009,CLASSIC,Classic Diamonds (India),HSBC BANK (MAURITIUS) LIMITED,SELL,286194,17.54,-
02-JUN-2009,ESCORTS,Escorts India Ltd.,NIRSHILP SECURITIES PVT. LTD.,SELL,475421,77.08,-
02-JUN-2009,ESCORTS,Escorts India Ltd.,TRANSGLOBAL SECURITIES LTD.,SELL,650551,77.09,-
02-JUN-2009,EVINIX,Evinix Accessories Limite,HI-GROWTH CORPORATE SERVICES PVT. LTD.,SELL,868493,3.88,-
02-JUN-2009,EVINIX,Evinix Accessories Limite,LEAPFROG ENTERPRISES P,SELL,600000,3.69,-
02-JUN-2009,GSSAMERICA,GSS America Infotech Limi,NAGARJUNVALLURIPALLI,SELL,68765,174.89,-
02-JUN-2009,IFCI,IFCI Ltd.,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,3932732,51.63,-
02-JUN-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,3875106,51.55,-
02-JUN-2009,IFCI,IFCI Ltd.,AMBIT SECURITIES BROKING PVT. LTD.,SELL,4830928,51.96,-
02-JUN-2009,IFCI,IFCI Ltd.,JAYPEE CAPITAL SERVICES LTD.,SELL,4702394,51.47,-
02-JUN-2009,IFCI,IFCI Ltd.,NIRSHILP SECURITIES PVT. LTD.,SELL,371546,51.60,-
02-JUN-2009,INDOWIND,Indowind Energy Limited,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,264098,40.94,-
02-JUN-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,14355417,25.19,-
02-JUN-2009,JINDALSWHL,Jindal SouthWest Hold Ltd,Quantum Fund N.V.,SELL,94113,583.65,-
02-JUN-2009,LAKSHMIEFL,Lakshmi Energy and Foods,Copthall Mauritius Investment Ltd,SELL,555000,94.48,-
02-JUN-2009,NILKAMAL,Nilkamal Limited,ARISAIG INDIA FUND LTD,SELL,77000,88.83,-
02-JUN-2009,NORTHGATE,Northgate Technologies Li,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,321925,48.70,-
02-JUN-2009,NUCLEUS,Nucleus Software Exports,Copthall Mauritius Investment Ltd,SELL,317168,92.15,-
02-JUN-2009,PRAENG,Prajay Engineers Syndicat,BP FINTRADE PRIVATE LIMITED,SELL,211283,43.58,-
02-JUN-2009,RIIL,Reliance Indl Infra Ltd,C D INTEGRATED SERVICES LTD.,SELL,137219,1183.69,-
02-JUN-2009,RIIL,Reliance Indl Infra Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,87834,1164.28,-
02-JUN-2009,RIIL,Reliance Indl Infra Ltd,PRB SECURITIES PRIVATE LTD.,SELL,90415,1185.36,-
02-JUN-2009,ROLTA,Rolta India Ltd.,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,824880,139.44,-
02-JUN-2009,ROLTA,Rolta India Ltd.,GENUINE STOCK BROKERS PVT LTD,SELL,1192970,139.79,-
02-JUN-2009,SASKEN,Sasken Commu Techno Ltd,MANISH VRAJLAL SARVAIYA,SELL,357603,113.89,-
02-JUN-2009,SATYAMCOMP,Satyam Computers Ltd,OM INVESTMENTS,SELL,6415254,62.19,-
02-JUN-2009,SATYAMCOMP,Satyam Computers Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,5873897,61.88,-
02-JUN-2009,SELMCL,SEL Manufacturing Company,KANUDIA CAPITAL & MANAGEMENT SERVICES PVT. LTD.,SELL,93127,84.84,-
02-JUN-2009,SELMCL,SEL Manufacturing Company,MAVI INVESTMENT FUND LTD.,SELL,100000,83.76,-
02-JUN-2009,VENKEYS,Venky's (India) Limited,KOOKMEN SECURITIES P LTD,SELL,50192,149.62,-
02-JUN-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1389059,22.86,-
02-JUN-2009,XLTL,XL Telecom Limited,JM MUTUAL FUND. A/C CONTRA FUND,SELL,100000,63.75,-

Turnover rises

SBI June 2009 futures at discount
Nifty June 2009 futures were at 4524.30, at a discount of 0.95 points as compared to the spot closing of 4525.25. Turnover in NSE's futures & options (F&O) segment surged to Rs 63,624.63 crore from Rs 58,484.39 crore on Monday, 1 June 2009.
State Bank of India (SBI) June 2009 futures at discount at 1876.90 compared to the spot closing of 1906.90.
Housing Development & Infrastructure June 2009 futures were at premium at 306.80 compared to the spot closing of 305.65.
IFCI June 2009 futures were near spot price at 53.30 compared to the spot closing of 53.
In the cash market, the S&P CNX Nifty lost 4.65 points or 0.10% at 4,525.25.

Tata Steel spurts as Sensex extends gains for the fifth day in a row

Key benchmark indices saw divergent trend with the BSE Sensex logging small gains and Nifty ending slightly lower in what was a highly choppy trading day. The BSE Sensex extended gains for the fifth straight day as stocks staged a comeback in late trade after an early slump caused by profit booking, weak European markets and on Asian markets turning negative after early gains. Index heavyweights Reliance Industries and ICICI Bank played a lead role in the recovery in the key benchmark indices from lower level. Turnover on BSE's cash segment surged to Rs 9,438 crore as compared with Rs 8,177.61 crore on Monday, 1 June 2009.
The BSE 30-share Sensex rose 34.28 points, or 0.23%, recovering 266.68 points from the day's low but off 119.31 points from the day's high.
Volatility was high. Profit taking pulled the market off the higher level after an initial surge that took the barometer index BSE Sensex within striking distance of the psychological 15,000 level. The market slipped into the red in early trade. The market cut losses after the latest data showed India's infrastructure sector output grew 4.3% in April 2009 from a year earlier. Weak European markets pulled the Sensex to intraday low in early afternoon trade. The market cut losses later. The BSE Sensex moved into green from red in choppy late trade.
The Sensex is up 5227.60 points or 54.18% in calendar year 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 6714.51 points or 82.28%.
But a glut in share shares will soak liquidity from the secondary market and cap upside on the bourses in the medium term. Indian companies or their founders have collected $3 billion over the past three weeks, either by transferring existing stock or selling new shares, and more local companies plan to raise at least four times that number, Credit Suisse Group AG said in a note to clients on 25 May 2009. According to Goldman Sachs Group, Indian companies may raise $4 billion to $6 billion from initial public offerings in the 12 months ending 31 March 2009 and another $5 billion to $7 billion through share placements over the next two to three months.
Nevertheless, there are reasons to believe that the recent strong rally may continue in the near term. For one, equity analysts are raising earnings forecasts of India Inc on hopes that the new government will focus on infrastructure sector and push economic reforms to boost growth.
The market may see a pre-budget rally over the next one month on hopes of accelerated economic reforms and pro-reforms announcements. The UPA government's comfortable victory, without the support of the Left parties, has raised expectations that the government may revive disinvestment programme. The Congress party had in its manifesto released before polls promised to go ahead with disinvestment while retaining a majority holding in the state-run companies. Disinvestment programme was earlier put on backburner due to stiff opposition from the Left front.
Investors expect financial sector reforms such as increase in the cap on foreign direct investment in insurance sector to 49%, from 26% at present. Finance Minister Pranab Mukherjee on 26 May 2009 said that a sustained stimulus to economic growth is possible by next round of reforms. He said reviving growth momentum is a top priority for the government adding that fiscal prudence will also be kept in mind.
Mukherjee said the government will stick to fiscal deficit target of 5.5% of GDP in the current financial year that ends on March 2010 (FY 2010). He said the government is committed to fiscal consolidation in 2-3 years. The minister said he would be able to announce the full-budget for FY 2010 by the first week of July 2009 and try to get it approved by 31 July 2009. He said the common man will be the focus of the government policy.
The newly elected UPA government convened the first session of the 15th Lok Sabha on Monday, 1 June 2009. The session will last till 9 June 2009. As regards the business of the first Lok Sabha session, the first two days are reserved for oath of affirmation to the newly elected members. On 3 June 2009, election for the Lok Sabha Speaker would be held, followed by the President's address to both the houses of parliament on 4 June - the date of commencement of Rajya Sabha session. In all, the Parliament session will have seven sittings
Investors will keenly watch President's address to the Lok Sabha on 4 June 2009, which will unveil the new agenda of the government. On Monday, 1 June 2009, Civil Aviation Minister Praful Patel said the government will consider bringing out an initial public offer for flag carrier Air India and list it on the bourses. However, he did not give any time frame
Recent data has reinforced expectations that the economy is recovering. India's infrastructure sector output grew 4.3% in April from a year earlier, government data showed on Tuesday. Output had risen 2.3% in the same month last year, and climbed 2.7% in the fiscal year ended March 2009 compared with 5.9% growth in 2007/08. The infrastructure sector accounts for 26.7% of India's industrial output.
Data during trading hours on Monday 1 June 2009 showed that the Market Purchasing Managers' Index (PMI) based on a survey of 500 companies, rose to 55.7 in May 2009 from April's 53.3, well above the threshold of 50 that separates expansion from contraction.
The manufacturing index was boosted mainly by the new orders index, which rose to 59.1 in May 2009 from 54.9 in April 2009. Manufacturing makes up about 15% of India's gross domestic product. Although domestic demand improved, the pricing power of manufacturers was hurt by intense competition, while higher commodity prices also pushed up input prices, Market economist Gemma Wallace said
The latest data showed cement sales surged in May 2009 even as auto sales data depicted a mixed picture. Aditya Birla Group's cement shipments 19.5% to 3.18 million tonnes in May 2009 over May 2008. The shipments of the country's third-largest cement maker Ambuja Cements surged 8.3% while Shree Cement witnessed a 32.1% growth during the month.
Car market leader Maruti Suzuki India sold a total of 79,872 vehicles in May 2009, up 15.6% year-on-year (yoy). This includes 9,087 units for export, up 87.1%. M&M recorded an almost flat growth in the total volume for the month of May 2009 at 30,366 units (30,123). Its auto Segment reported an 18.3% yoy decline to 16,866 whereas the tractor segment reported a 42.6% yoy jump in volume (including sales figures of Punjab Tractors).
Tata Motors' domestic sales for the month of May 2009 were 38,392 units, an 11% decline yoy. However, they were 6% higher compared to the 36,257 units sold in the previous month (April 2009). The company's sales of commercial vehicles in the domestic market, in May 2009, were 23,004 units, a 3% decline yoy.
In the two-wheelers segment, Hero Honda clocked a robust 22.5% yoy growth in May 2009 to 382,678 units (312,317). TVS Motors recorded a 5.2% yoy growth in May 2009 to 118,574 (112,770). Its export volumes declined 20.9% yoy during the month to 11,135, while domestic volumes grew by 7% yoy.
Two-wheeler maker Bajaj Auto on Tuesday reported an 8.13% fall in motorcycle sales in May 2009 at 1,65,049 units as against 1,79,649 units in the same month last year. Total two-wheeler sales during the month stood at 1,65,697, an 8.42% decrease over the same month last year.
On the back of higher government spending, India's economy expanded 5.8% in the fourth quarter ended March 2009 compared with a year earlier. That matched a revised gain of the previous quarter, government data announced on Friday, 29 May 2009 showed. Economists were expecting a 5% increase. The GDP grew 6.7% in the year ended March 2009, slowing from 9% in the previous year.
Foreign funds are aggressively buying Indian stocks. Their inflow in 2009 totaled Rs 21,937.30 crore (till 1 June 2009).
European markets were trading lower today, 2 June 2009 as investors resorted to profit taking following a recent sharp surge. Key benchmark indices in UK, France and Germany were down by between 0.02% and 0.51%.
Stocks in Hong Kong, Taiwan, South Korea and Singapore were down by between 0.07% and 2.65% on profit taking after recent strong gains. Yet, select Asian markets were trading higher as US manufacturing data reinforced hopes that demand will stabilise, while automakers such as Toyota Motor Co and Honda Motor Co climbed after General Motor's bankruptcy filing removed some uncertainty from the market. Key benchmark indices in China and Japan rose 0.11% and 0.27% respectively
Trading in US index futures showed the Dow could rise 17 points at the opening bell on Tuesday, 2 June 2009.
US markets rallied on Monday, 1 June 2009 despite General Motors filing for bankruptcy, as strong manufacturing and construction reports raised hopes of a global economic recovery. The Dow Jones Industrial Average jumped 221.11 points, or 2.6%, to 8,721.44. The Standard & Poor's 500 Index gained 23.73 points, or 2.58%, to 942.87 and the Nasdaq Composite index rose 54.35 points, or 3.06%, to 1,828.68.
The Institute for Supply Management (ISM) manufacturing index rose to 42.8 in May 2009 from 40.1 in March 2009. Construction spending also jumped 0.8% in April 2009, doubling the 0.4% increase seen in March 2009.
GM filed for bankruptcy on Monday, 1 June 2009 after years of taking heavy losses, becoming the largest-ever US manufacturer to seek court protection. The US government will extend $50 billion of loan to the automaker and will convert it into a 60% stake in the reorganized company, according to a filing in US Bankruptcy Court in New York.
The BSE 30-share Sensex rose 34.28 points, or 0.23%, to 14,874.91, its highest closing since 9 September 2008. The Sensex opened 101.58 points higher at 14,942.21. The Sensex rose 153.59 points at the day's high of 14,994.22 in early trade. At the day's low of 14,608.23, the Sensex lost 232.40 points in afternoon trade.
The BSE Sensex has gained 1285.68 points or 9.46% in five trading days from 13589.23 on 26 May 2009 to 14,874.91.
The S&P CNX Nifty was down 4.65 points, or 0.10%, to 4525.25. The Nifty struck an intra-day high of 4586.40, its highest level since 12 August 2008. Nifty June 2009 futures were at 4524.30, at a discount of 0.95 points as compared to the spot closing.
Turnover in NSE's futures & options (F&O) segment surged to Rs 63,624.63 crore from Rs 58,484.39 crore on Monday, 1 June 2009.
The market breadth, indicating the overall health of the market, was positive. The breadth gyrated between positive and negative zone during the day. On BSE, 1699 shares advanced as compared with 1128 that declined. A total of 52 shares remained unchanged.
The BSE Mid-Cap index was up 0.82% to 5,246.68 and the BSE Small-Cap index was up 0.91% to 6,252.98. Both these indices outperformed the Sensex
BSE clocked a turnover of Rs 9438 crore as compared with Rs 7040 crore by 14:25 IST. The turnover was boosted by 3 massive bulk deals of 1 crore shares each in Essar Oil counter in opening trade. Essar Oil was the top traded counter on BSE with turnover of Rs 987.15 crore.
Other turnover toppers were Unitech (Rs 300.21 crore), DLF (Rs 289.14 crore), Tata Steel (Rs 271.04 crore) and HDIL (Rs 221.92 crore).
Sectoral indices on BSE displayed mixed trend. The BSE Consumer Durables index (up 2.63%), the BSE Auto index (up 1.37%), the BSE Metal index (up 2.48%), the BSE Capital Goods index (up 0.31%), outperformed the Sensex.
The BSE FMCG index (up 0.15%), the BSE Power index (down 1.65%), the BSE IT index (up 0.17%), the BSE TECk index (down 0.08%), the BSE PSU index (down 1.14%), BSE Realty index (down 2%), the BSE Oil & Gas index (down 0.26%), the BSE Healthcare index (up 0.16%), the BSE Bankex (down 0.31%) and underperfomed the Sensex.
Among the 30-member Sensex pack, 16 slipped while the rest gained. HDFC (up 4.76%), Grasim (up 1.14%), Infosys (up 0.57%), and Larsen & Toubro (up 1.15%), edged higher from the Sensex pack. However ACC (down 5.65%), Jaiprakash Associates (down 1.48%), and Tata Power (down 3.12%), edged lower from the Sensex pack.
Metal shares advanced on strong domestic demand and firm prices on the London Metal Exchange (LME). The world's sixth largest steel maker by sales Tata Steel jumped 10.71% to Rs 484.85, extending yesterday's 7.79% surge after its unit, Tata Steel UK, won approval from banks to ease conditions on a 3.7 billion pounds loans it took to buy Anglo-Dutch Corus. The announcement was made on Saturday, 30 May 2009. It was the top gainer from the Sensex pack.
India's largest copper market by sales Sterlite Industries gained 3.57% to Rs 688.50 after its American depository receipt surged 6.99% on Monday, 1 June 2009.
Ispat Industries (up 10.71%), Steel Authority of India (up 3.62%), and Hindustan Zinc (up 6.66%), edged higher.
LMEX, a gauge of six metals traded on the LME, rose 4.18% to 2,355.20 on Monday, 1 June 2009
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) slipped 0.29% to Rs 2274.30, rebounding from day's low of Rs 2205. Earlier the stock came off day's high of Rs 2309. The Directorate General of Hydrocarbons has reportedly contested the authenticity of claims of gas reserves at Krishna Godavari basin blocks D-3 and D-9 by Hardy Oil & Gas Plc.
UK-based Hardy Oil, late last month, said RIL may have an estimated 20 trillion cubic feet of natural gas reserves in two areas off the east coast, more than double the quantity of its biggest field. The D-3 and D-9 fields may hold as much as 9.5 trillion cubic feet and 10.8 trillion cubic feet of gas, respectively, it had said. Hardy Oil & Gas Plc has 10% stake each in the two blocks where RIL is the operator with 90% interest.
Cairn India rose 1.99% after Goldman Sachs raised its 12-month target price to Rs 290 from Rs 240 earlier, saying the company was set to produce oil from its Rajasthan fields within the next few weeks.
HPCL lost 3.23% to Rs 349 despite reporting 32.74% rise in net profit to Rs 510.40 crore in Q4 March 2009 over Q4 March 2008. The results were announced during market hours today, 2 June 2009.
India's largest private sector bank by net profit ICICI Bank and a heavyweight in the 30-share BSE Sensex gained 2.05% to Rs 738, after sliding to a day's low of Rs 704. The bank's ADR rose 3.02% on Monday, 1 June 2009
India's largest bank by net profit and branch network State Bank of India (SBI), too, recovered sharply from an intra-day low of Rs 704 to settle 2.05% higher at Rs 738. The country's largest lender, State Bank of India (SBI), today said it has increased its stake to 55% in joint venture Nepal SBI from 50% earlier.
India's top tractor maker by sales Mahindra & Mahindra (M&M) advanced 2.02% to Rs 724.80 on surge in tractor sales in May 2009. The sales figures were announced after market hours on Monday, 1 June 2009.
India's top truck maker by sales Tata Motors rose 4.88% to Rs 354.45 after the company's American depository receipt (ADR) jumped 4.75% on Monday, 1 June 2009.
Bajaj Auto advanced 1.73% to Rs 1074 after total vehicle sales surged 9.59% to 1.85 lakh units in May 2009 over April 2009. The company's motorcycle sales rose 10% to 1.65 lakh units in May 2009 over April 2009. The sales figures were announced during market hours today, 2 June 2009.
India's top pharma company by sales Ranbaxy Laboratories fell 4.59% to Rs 262. The stock slipped on profit booking after it jumped 65.47% in one month to 1 June 2009.
However, India's largest pharma company by market capitalisation Sun Pharmaceuticals rose 0.53% to Rs 1225 on reports the company will spend Rs 332 crore in research & development (R&D) of low-cost versions of original drugs to be sold in the domestic and global markets. The Mumbai-based drug maker had last year spent Rs 290 crore on R&D activities.
India second largest private sector power generation firm by sales Reliance Infrastructure plunged 4.22% to Rs 1246. The stock slipped on profit booking after advancing 87.12% in one month to 1 June 2009.
India's second largest listed cellular services provider by sales Reliance Communications (RCom) slipped 0.67% to Rs 318.60 on profit booking. The stock had risen 4.89% on Monday, 1 June 2009 on the company's plans to raise funds through the qualified institutional placement route. The announcement was made after market hours on Friday, 30 May 2009.
RCom will seek shareholders' approval to garner funds from qualified institutional investors, either through a share sale or an issue of a variety of instruments including fully convertible, partly convertible or non-convertible debentures with warrants or any other security. Although the company did not say how much it planned to raise reports suggested it may be around $500 million and will be used to strengthen financial position for a planned participation in the upcoming auction for nationwide 3G and Wi-Max spectrum allocation by the Indian government.
Realty stocks cooled off on profit booking after a recent solid surge triggered by expectations that stability at the Centre will attract more money from foreign investors into the sector which in turn will boost growth.
DLF (down 2.82%), Housing Development & Infrastructure (down 0.85%), Indiabulls Real Estate (down 5.96%), and Unitech (down 0.54%), edged lower. DLF slipped on profit booking after surging 79.67% in one month to 1 June 2009.
In the last six weeks, three realty firms Unitech, DLF and Indiabulls Real Estate, have together raised Rs 8000 crore through qualified institutional placements (QIPs).
North India's largest cement firm by sales Ambuja Cements rose 1.89% after its shipments rose 8.3% to 1.64 million tonnes in May 2009 over May 2008. The figures were announced after market hours on Monday, 1 June 2009.
Grasim Industries rose 1.14% while UltraTech Cement slipped 1.90% despite the Aditya Birla Group's shipments rose 19.5% to 3.18 million tonnes in May 2009 over May 2008. Production rose 20% to 3.24 million tonnes in the same period. The group's cement business includes flagship Grasim Industries and unit UltraTech Cement, with combined production capacity of 42 million tonnes a year.
Shree Cement rose 1.91% to Rs 1060 after cement shipments surged 32.19% to Rs 7.35 lakh tonne in May 2009 over May 2008. The company made this announcement after market hours on Monday, 1 June 2009.
Essar Oil, too, led volume chart with over 57 million shares traded on the BSE today. It was followed by Ispat Industries (46.97 million), Unitech (32.58 million), IFCI (32.42 million) and Reliance Natural Resources (18.77 million).
Rashtriya Chemicals and Fertilizers (up 9.98%), Nagarjuna Fertilizers & Chemicals (up 4.96%), Deepak Fertilisers and Petrochemicals Corporation (up 1.49%), Tata Chemicals (up 3.12%), and Chambal Fertilisers & Chemicals (up 1.76%), rose on governments plan to maximise domestic production of fertilisers through modernisation and restructure of existing fertilisers production units.
Some mid and small-cap software shares gained on buying momentum. Aztecsoft (up 4.94%), Core Projects (up 5.60%), Firstsource Solutions (up 6.90%), KPIT Cummins (up 9.09%), 3i Infotech (up 8.57%), Patni Computer (up 5.14%), Polaris (up 3.56%), and Tech Mahindra (up 6.85%), surged
Sanghvi Movers jumped 8.65% to Rs 169.50 after a block deal of nine lakh shares was executed on BSE at Rs 162.10 a piece. The block deal constituted 2.08% of the company's equity.
Pantaloon Retail (India) rose 0.29% on reports France's Carrefour will buy stake in Future Fashion Merchandise, a company formed after a restructuring of Pantaloon earlier this year.
KGN Industries was locked at 5% upper limit after the company said its board will meet on 6 June 2009 to consider a 10-for-1 stock split. The company announced the board meet during trading hours today, 2 June 2009.
Among other side counters, Mindtree (up 18.78%), Bartronics (up 19.96%), Hawkins Cookware (up 20%), Ankur Drugs (up 19.98%), and Sasken Communications (up 15.46%), surged.
However, Metrochem Industries (down 11.01%), Sundaram Finance (down 8.42%), and HT Media (down 7.35%), slipped.

7 ways to get right info on right stocks

There are many lessons to learn from the 2008 market crash. One of the most important is: understand a company before investing in it.  If you do, the market is offering a good chance to pick quality stocks at reasonable prices.

The problem is that without sound information, any investment decision would be based on weak reasoning and is unlikely to support your overall portfolio performance.

But how do you know that the information you have is accurate? For that, you need to do your research well and look at the right place for the right information. Here are seven parameters you should look at and the places you can find information on them.

1. Market Capitalisation

What is it?

Market capitalisation (cap) is calculated by multiplying a company's outstanding shares (paid-up equity capital divided by the face value) with the current market price (CMP). This indicates the worth of the company in terms of its shares. To calculate the market cap of, say, GlaxoSmithKline (GSK) Consumer Health-care, multiply the CMP -- Rs 815 as on 13 May -- with the 4.20 crore (42 million) outstanding shares, which comes to Rs 3423 crore (Rs 34.23 billion).

Where to look

• => The financial results section or the company related page on stock exchange websites (www.nseindia.com or www.bseindia.com) give details of outstanding shares
• => The quotes page on these sites give CMP
• => Financial dailies publish market cap data of select companies

2. Trading Volumes

What is it?

It is the total number of stocks of a company traded at an exchange. It is a measure of the liquidity and also shows the level of market participation in the stock. This figure is especially important in the case of low-volume stocks (below 2,000 shares). During tough market conditions, liquidating low-volume stocks becomes difficult. The 2-week average quantity of Dabur India shares is around 2.2 lakh, which is a comfortable number. On the other hand, the number for MMTC is only 500-600 shares for the same period.

Where to look

• => Stock exchange sites
• => Financial dailies

3. Historical Price Data

What is it?

This information helps understand how a stock's price has behaved over a period of time. Information on whether a stock is at a new peak or a new low helps evaluate the quality of the stock. For instance, if a stock has breached its yearly low, you should get into the reason behind it.

Where to look

• => The quotes page or the stock reach page on the NSE and BSE sites share the yearly high and low data
• => Use the 'charting function' of exchange sites for graphical representation. This will help you find whether the stock is trading at a new low or a new high. The co-movement option helps compare the performance of the stock with the index
• => On www.nseindia.com, go to the equity, market information, historical data section. Click on the security-wise data section, get the security symbol and choose the dates for which you want information. On www.bseindia.com, go to the archives section

4. Company Developments

What is it?

Developments in a company such as a new product, capacity expansion or a new clientele can affect the stock's performance. Find out what impact these developments can have on the stock. Also, find out about the company's competitors, government regulations related to it, and their impact on its operations.

Where to look

• => Financial dailies
• => Corporate announcements on exchange sites have information about developments in a company
• => Analyst meets or conference call updates on company sites throw light on the company's future plans
• => To understand the operations of a company, read its latest annual report. The director's report and management discussion and analysis will give you a detailed perspective on the company's current performance and outlook
• => Follow the notes published at the end of the statutory advertisements that companies release to gather information on disclosures
• => Investors can also become a member of online investment clubs. You will derive a lot of information which can, subsequently, be validated from a reliable source

5. Financial Data

What is it?

Before buying a stock, it is important to know about the company's financial performance. Growth in sales and profit over the last four to five quarters will help you understand its performance in the light of the recent market scenario. Its growth rate in the last 4-5 years will give an insight into the pace of growth in the past. Look at the operating margin growth as well, especially so in the current tough operating environment.

Remember to look at the consolidated, and not the standalone performance. Consolidated performance includes the results of all subsidiaries, joint ventures and investments in associate companies. Its importance is evident from the impact it has on the performance of some companies.

Where to look

• => Company website. Results and annual reports need to be read carefully. For example, in case of Dabur India, go to www.dabur.com, click on investor relations and get into financial presentations. You will get quarterly results, annual report, investor communications and analyst conference call transcripts there
• => The financial results section on stock exchange websites

6. Balance Sheet

What is it?

Many companies, especially those from the pharmaceutical and IT sectors, are under stress due to high debt and losses on foreign currency borrowings. Many investors ignored the foreign currency convertible bond (FCCB) details before the 2008 stockmarket crash.

FCCB is a type of convertible bond issued in a currency different from the issuer's domestic currency. The mix of debt and equity instruments it has gives the bondholder an option to convert the bond into a stock.

Due to the sharp stockmarket dip, the companies are unable to offer the bondholders the option of converting the bonds into equity at a premium. Instead, bondholders had to exercise the debt option. Companies would now have to decide on how to service their FCCBs.

The balancesheet will also help you understand the financial leveraging capacity of the company. Calculate the debt-equity ratio to get this. It is arrived at by dividing the total liabilities by the stockholders' equity.

Take the case of Aurobindo Pharma. It has outstanding FCCB of $260 million. A part of it will come up for redemption in the beginning of 2010. This stock got butchered when the FCCB issue became a major concern and is currently trading at more than 80 per cent discount to its FCCB conversion price.

Recent updates on the NSE website suggest that the company has plans to buy back its outstanding FCCBs in small lots. The company's debt-equity ratio is 1.5. This should be considered before investing because high debt-equity (normally above one) suggests that the company has been aggressive in financing its growth through debt. If the company's operation is under stress due to the economic environment and its balancesheet is debt-burdened, then it would be better to stay away from its stock.

Where to look

• => Annual report and news releases on the company website
• => Corporate announcements available on stock exchange sites

7. Basic Calculations

Deduct any preferred stock dividends from the net profit after tax and divide the balance by the number of outstanding shares. This will give you the earnings per share (EPS) of a company.

To assess a stock, calculate the trailing 12 months' EPS (for the last four quarters). Then, calculate the price earning ratio (PE) -- CMP divided by EPS.

For example, GSK Consumer's EPS grew steadily from Rs 30 in December 2006 to Rs 51.30 in March 2009. The company follows the calendar year and this data can be sourced from the exchange sites and also the company's website, www.gsk-ch.in. The latest EPS and CMP (Rs 815) translate into a PE ratio of 15.9.

To evaluate whether a PE is high or low, compare it with the industry PE and index PE. This data is also available on exchange sites. Go to the industry index information to get the PE details of a particular industry. The BSE FMCG Index's PE, for instance, as on 13 May is 23.54 while GSK Consumer's PE is 15.9. This suggests a comparatively low PE for the company.

Where to look

• => Profit & loss account on exchange sites or company website
• => Quarterly or annual results published by the company also carry EPS information

India's 11 largest M&A deals

The proposed merger between Bharti Airtel and South Africa's MTN would be India's biggest-ever M&A deal. The potential value of the Bharti Airtel-MTN deal would amount to $23 billion.

As per the exploring agreement, MTN and its shareholders would acquire around 36 per cent economic interest in Bharti Airtel, while, the Sunil Mittal-promoted Bharti Airtel would acquire 49 per cent stake in South African telecom giant MTN.

Let us now take a look at the 10 largest M&A transactions involving an Indian company until now

Tata Steel-Corus: $12.2 billion

1. Tata Steel-Corus: $12.2 billion

On January 30, 2007, Tata Steel purchased a 100% stake in the Corus Group at 608 pence per share in an all cash deal, cumulatively valued at $12.2 billion.

The deal is the largest Indian takeover of a foreign company till date and made Tata Steel the world's fifth-largest steel group.

Vodafone-Hutchison Essar: $11.1 billion

2. Vodafone-Hutchison Essar: $11.1 billion

On February 11, 2007, Vodafone agreed to buy out the controlling interest of 67% held by Li Ka Shing Holdings in Hutch-Essar for $11.1 billion.

This is the second-largest M&A deal ever involving an Indian company.

Vodafone Essar is owned by Vodafone 52%, Essar Group 33% and other Indian nationals 15%.

Hindalco-Novelis: $6 billion

3. Hindalco-Novelis: $6 billion

Aluminium and copper major Hindalco Industries, the Kumar Mangalam Birla-led Aditya Birla Group flagship, acquired Canadian company Novelis Inc in a $6-billion, all-cash deal in February 2007.

Till date, it is India's third-largest M&A deal.

The acquisition would make Hindalco the global leader in aluminium rolled products and one of the largest aluminium producers in Asia. With post-acquisition combined revenues in excess of $10 billion, Hindalco would enter the Fortune-500 listing of world's largest companies by sales revenues.

Ranbaxy-Daiichi Sankyo: $4.5 billion

4. Ranbaxy-Daiichi Sankyo: $4.5 billion

Marking the largest-ever deal in the Indian pharma industry, Japanese drug firm Daiichi Sankyo in June 2008 acquired the majority stake of more than 50 per cent in domestic major Ranbaxy for over Rs 15,000 crore ($4.5 billion).

The deal created the 15th biggest drugmaker globally, and is India's 4^th largest M&A deal to date.

5. ONGC-Imperial Energy: $2.8 billion

The Oil and Natural Gas Corp took control of Imperial Energy Plc for $2.8 billion, in January 2009, after an overwhelming 96.8 per cent of London-listed firm's total shareholders accepted its takeover offer.

Speaking about India's fifth largest M&A deal, ONGC chairman R S Sharma said the company owed the acquisition to government support, which has seen OVL in the past seven years increase its number of projects to 39 in 17 countries, from just a single project in Vietnam.

6. NTT DoCoMo-Tata Tele: $2.7 billion

Japanese telecom giant NTT DoCoMo picked up a 26 per cent equity stake in Tata Teleservices for about Rs 13,070 crore ($2.7 billion) in November 2008.

This is the 6^th-largest M&A deal involving an Indian company.

With a subscriber base of 25 million in 20 circles DoCoMo paid Rs 20,107 per subscriber to acquire the stake. DoCoMo picked up the equity through a combination of fresh issuance of equity and acquisition of shares from the existing promoters.

7. HDFC Bank-Centurion Bank of Punjab: $2.4 billion

HDFC Bank approved the acquisition of Centurion Bank of Punjab for Rs 9,510 crore ($2.4 billion) in one of the largest mergers in the financial sector in India in February, 2008.

CBoP shareholders got one share of HDFC Bank for every 29 shares held by them. Post-acquisition, HDFC Bank became the second-largest private sector bank in India.

The acquisition was also India's 7th largest ever.

Tata Motors-Jaguar Land Rover: $2.3 billion

8. Tata Motors-Jaguar Land Rover: $2.3 billion

Creating history, one of India's top corporate entities, Tata Motors, in March 2008 acquired luxury auto brands -- Jaguar and Land Rover -- from Ford Motor for $2.3 billion, stamping their authority as a takeover tycoon.

Beating compatriot Mahindra and Mahindra for the prestigious brands, just a year after acquiring steel giant Corus for $12.1 billion, the Tatas signed the deal with Ford, which on its part chipped in with $600 million towards JLR's pension plan.

Tata Motors' buyout of JLR is India's 8th-largest in history.

Sterlite-Asarco: $1.8 billion

9. Sterlite-Asarco: $1.8 billion

Anil Agarwal-led Sterlite Industries Ltd's $1.8 billion Asarco LLC buyout deal is the ninth biggest-ever merger and acquisitions deal involving an Indian firm, and the largest so far in 2009.

This is despite the deal size falling by almost $1 billion, from a projected estimate of $2.6 billion in May 2008, due to devaluation of mining assets and a sharp fall in copper prices.

Sterlite, the Indian arm of the London-based Vedanta Resources Plc, acquired Asarco in March 2008.

Suzlon-RePower: $1.7 billion

10. Suzlon-RePower: $1.7 billion

Wind power major Suzlon Energy in May 2007 acquired the German wind turbine manufacturer REpower for $1.7 billion. The deal now ranks as the country's 10th largest corporate takeover.

REpower is one of Germany's leading manufacturers of wind turbines, with a 10-per cent share of the overall market.

Suzlon is now the largest wind turbine maker in Asia and the fifth largest in the world.

11. RIL-RPL merger: $1.68 billion

Reliance Industries in March 2009 approved a scheme of amalgamation of its subsidiary Reliance Petroleum with the parent company. The all-share merger deal between the two Mukesh Ambani group firms was valued at about Rs 8,500 crore ($1.68 billion).

This makes it India's 11th largest M&A transaction till date.

Post-merger, RPL shareholders received one fully paid equity share of Rs 10 each of the company for every 16 fully paid equity shares of Rs 10 each of RPL held by them.

The RIL-RPL merger swap ratio was at 16:1. The merger became effective from April 1, 2008.

8 Indian cities among world's riskiest BPO spots

Here comes another overseas study and another bout of India-bashing.

India may have been hailed for long as the world's top outsourcing destination, but according to a survey in the annual Black Book of Outsourcing, as many as 8 Indian cities are among the world's 25 riskiest places for offshoring.

And what are the reasons for this, according to this study? Mainly, concerns like terrorism, pollution and geopolitical issues, etc.

Meanwhile, global management consulting firm A T Kearney says that although India is the world's favoured back-office, the Middle East and the North African region are slowly emerging as promising offshoring destinations because of large, well educated population and proximity to Europe.

Anyway, for whatever the study is worth, here are the eight riskiest offshoring destinations from India.

Delhi, Gurgaon, Noida: 6th riskiest

The national capital region comprising Delhi, Gurgaon and Noida has earned the dubious distinction of being the worst offshoring destination within the country.

In the overall global list, NCR has been ranked as 6th riskiest.

Mumbai: 9th riskiest in the world

The National Capital Region is followed by Mumbai as the second riskiest offshoring hub within India, and 9th riskiest globally.

In terms of terrorism threats Mumbai has been ranked as the location with the highest risk, followed by Delhi NCR and Jerusalem in Israel.

Further, Delhi NCR has been ranked as the riskiest place when it comes to heightening trans-national and geopolitical concerns.

Chandigarh: 15h riskiest in the world

Chandigarh has been ranked the 15^th riskiest offshoring spot by the Black Book of Outsourcing.

The rankings of safest and riskiest places are based on factors like high terrorist or rebel target threats, uncontrolled environment waste and pollution, corruption and organised crime, unstable currency, geopolitical conditions and unsecured networks and technology.

Pune: World's 20th riskiest

Pune has been ranked 20^th riskiest offshoring destination in the world.

Meanwhile, no Indian city has managed to find a place on a separate list of 25 safest offshoring destinations. Both the lists have been published in the 2009 edition of the Black Book of Outsourcing, brought out every year by US-based Brown-Wilson Group.

The publication is considered as a major independent analysis and advisory research for the outsourcing players and investors globally.

Chennai: 21st riskiest in the world

Chennai has been ranked the 21st riskiest offshoring destination in the world.

India accounts for the maximum number of cities in the 25 riskiest places, while China and Mexico lead the tally in the 25 safest list with three cities each. There is just one Chinese city, Dalian, among the 25 riskiest places at 12th place.

In the safest 25 list, Singapore is followed by Dublin (Ireland), Santiago (Chile), Krakow/Warsaw (Poland) and Toronto/Montreal (Canada) in the top five. The three Chinese cities -- Beijing, Shenzen and Shanghai -- have been ranked as 9th, 22nd and 24th safest destinations, respectively.

Bangalore: 23rd riskiest

Bangalore has been named the 23rd riskiest offshoring destination in the world.

Bangalore, another leading outsourcing destination in the country, has been ranked as the riskiest place in terms of uncontrolled environmental waste and pollution.

Hyderabad: 24th riskiest

Hyderabad was ranked the 24th riskiest offshoring destination in the world.

Overall, Colombian city Bogota has been ranked as the riskiest in the world, while Singapore has been named as the safest offshoring destination.

Kolkata: India's least risky BPO destination

Kolkata is the least risky offhsoring destination in India, according to the study and ranks 25th riskiest in the world.

In the riskiest 25 list, Bogota is followed by Bangkok in Thailand, Johanesburgh in South Africa, Kuala Lumpur in Malaysia and Kingston in Jamaica among the top five.

The survey also stated the global financial crisis has slowed recent offshoring moves, the percentage of companies' staff offshore may very well increase as a result of the crisis.

1 cr jobs in textiles sector: Maran's promise

The UPA government will work on creating one crore (10 million) new jobs in the textiles sector and attract an investment of Rs 1.55 lakh crore in the next five years, Textiles Minister Dayanidhi Maran said after taking charge.

"We will equip the textiles industry to withstand the pressure of import penetration and maintain its dominance in the domestic market," Maran said.
Maran, whose tenure as IT and Telecom Minister was cut short in the previous government, has said this tenure is going to last for five years. "My agenda of creating one crore additional employment is for five years. I want to complete my five-year term this time," he said.

When asked whether he was happy with the ministry allocation given the fact that the industry and telecom consumers were expecting him to come back in the IT ministry,

Maran said, instead of spectrum there would be "a spectrum of colours" in his new job. He said the target would be to work for an annual growth of 8 to 10 per cent in the $52-billion industry.

India's textiles industry, which employs largest number of people after agriculture, is going through a tough time with sharp fall in exports.
Maran said with exports on decline, the emphasis would be on increasing the domestic consumption. Out of the $52 billion, the domestic consumption includes $31 billion.

The Textiles Ministry is in liaison with organizing committee of Commonwealth Games to ensure representation of Indian handloom and handicraft at the ceremonies in the games next year.
Last year, the industry attracted an investment of Rs 30,000 crore (Rs 300 billion).

Salaried? Save tax the smart way!

Earning a salary? Looking to save tax the smart way? Then you have two options.

First is salary restructuring and second is tax saving instruments.

Two individuals having the same cost-to-company (CTC) package can actually earn different take home salaries. It all depends on the way the salaries are structured.

If you can negotiate your salary structure smartly, as explained further on, your tax outflow will be lesser and hence the take home pay much higher. Here we take a look at ways to save tax smartly.

Salary restructuring

As the term implies, salary restructuring allows you to redesign your salary, so as to reduce your total tax liability. Here are some steps you can take in order to reduce your tax liability.

• => Do you need a house? Does your employer offer Rent Free Accommodation or House Rent Allowance? Then go for it, as the amount gets deducted from your total taxable income.
• => Does your company expect you to wear uniform at work? If so, the expenses incurred on buying and maintenance the uniform will not be taxed.
• => Does your employer provide you with allowance for your children's education and hostel accommodation? Then use it to claim exemption under section 10 (14).
• => Does your company provide you with a telephone facility in your home? Then it is not taxed. However, be warned against taking telephone allowance, since it is totally taxable and will increase your taxable income.
• => Opt for the car facility, since the value of the perk is much lower than the actual expenditure incurred on the car.
• => We all have to visit the doctor at some point of time. So save tax by claiming medical reimbursements up to Rs15,000 per annum. But don't take any medical allowance, since it is completely taxable.
• => If your employer pays Fringe Benefit tax (FBT), then sum of fringe benefits, is tax-free for you. Also, if salary is paid in arrears or in advance, claim relief under section 89 (1).
• => Always ask your employer to include dearness allowance and dearness pay along with commissions earned in your salary. It will lower your tax liability on house rent allowance, gratuity and pension.
• => If you are eligible for a pension, always get it commuted, as commuted pension is tax-free for government employees and partially exempted for others. You can get tax relief under section 89(1).
• => If your current employer is participating in an authorized provident fund, and you change your employer within 5 years of joining the firm, ensure your new employer is also a member of the authorized provident firm. It will let you transfer the corpus in your provident fund to the new company without paying any tax. Also insist your employer fix his contribution to your provident fund to 12% of your salary, as it is the highest limit for tax exemption.
• => Plan your retirement or resignation at the start of the financial year in order to lower the tax on retirement benefits.
• => As leave travel concession is not taxed if certain criteria are fulfilled, try to claim this incentive to the highest possible level, without having to pay any tax.
• => Let us assume your annual salary is Rs 200,000. You get HRA of Rs 10,000 and your medical reimbursement is Rs 5,000. Your employer gives you an allowance of Rs 15,000 for your son's educational expenses. So instead of Rs 2,00,000 your total taxable salary now becomes Rs 170,000 (200,000 - 10,000 - 5,000 - 15,000). This will effectively reduce your tax liability.
• => Now that we have seen how to design your salary let us take a look at the most effective tax saving instruments available.

Tax-saving instruments

While these instruments do help you save tax, they have a maximum limit of Rs. 1,00,000. Any income above this limit attracts tax.

• => Insurance: All payments made towards both life and health insurance are eligible for tax benefits. Even contributions made towards pension payments can be eligible for tax benefits. Health insurance can let you save Rs. 15,000 over and above the ceiling of Rs. 1 lakh.
• => PPF: It is one of the safest tax saving investments available. Both interest and capital withdrawal from the fund are tax free. However its drawback is the lock-in period of 15 years.
• => NSC, Post office (CTD) accounts: These are government savings schemes available at post office, with a lock-in period of 5 years.
• => Bank deposits: These are special tax saving FDs offered by banks with a lock-in period of 5 years.
• => ELSS: These are tax savings instruments offered by mutual funds, with a lock-in period of 3 years. They invest in various quality stocks.
All these instruments carry different degrees of risks. While PPF, NSC, Post office accounts, insurance (except ULIPs) and FDs are safer, they offer lower returns and are not very liquid, due to their long lock-in period.

On the other hand, ELSS has a short lock-in period but is more risky, while ULIPs carry the risk of ELSS but without the liquidity benefit. So while investing for tax -aving purpose, take into account factors like your risk appetite, returns generated by the instrument, liquidity, capital appreciation and safety of capital.

Remember, if you are young riskier options are better for you, since over a long time, these instruments can generate higher returns for you, and minimize the risk of capital erosion. Also diversify your investment portfolio.

If these options are not enough for you, then here are some more:

• Housing loan and education loan:
• Donation to charities/religious trusts

To summarize, first thing to do is to structure your salary so as to minimize your tax liability. This will minimize the need to invest for tax saving. This is because as with any investment, you must have the necessary capital to invest.

Also the instruments that tend to be safer, have a longer lock-in period with low returns. This means you must keep on investing with fresh capital every year and in turn get meager returns.

Those investments with higher returns mean you may not be able to withdraw your money even after the lock-in period, if the value of your investment is lesser than the capital invested.

Take all these points into consideration before opting for tax saving plans.

General Motors finds a buyer for Hummer brand

Beleaguered auto maker General Motors said on Tuesday it has reached a tentative deal with a buyer for the sale of its famed Hummer brand, which could save as many as 3,000 jobs in the US.

The announcement comes a day after the iconic car maker filed for bankruptcy protection, being bogged down by huge losses and plunging sales in recent months.

Without revealing the identity of the buyer, General Motors said it has entered into a memorandum of understanding with a buyer for Hummer, its premium off-road brand.

General Motors said in a statement the deal is anticipated to secure more than 3,000 US jobs in manufacturing, engineering and at Hummer dealerships around the country.

The sale is expected to close by the end of third quarter of 2009.

"Hummer is a strong brand. . . I am confident that Hummer will thrive globally under its new ownership. And for GM, this sale continues to accelerate the reinvention of GM into a leaner, more focussed, and more cost-competitive auto maker," president of GM North America Troy Clarke said.

According to the statement, the transaction also includes plans by the investor to aggressively fund future Hummer product programmes.

As part of the proposed transaction, Hummer would continue to contract vehicle manufacturing and business services from GM during a defined transitional time period.

"The proposed agreement will enable us to continue that growth and maximise the brand's potential through new, innovative off-road vehicles with improved efficiency and alternative fuel powertrains," Hummer chief executive officer James Taylor said.

Citi acted as financial advisor to the General Motors for the proposed deal.

General Motors has been looking to sell off many of its brands including Hummer as part of streamlining its operations. Another brand Pontiac would be phased out in the coming months.

Soon after the auto maker sought bankruptcy protection, US President Barack Obama on Monday said, "The filing for bankruptcy protection paves way for transformation from an old GM to the beginning of a new GM."

Why General Motors went bankrupt

General Motors Corp filed for bankruptcy on Monday, forcing the 100-year-old iconic car major which has been one of the most visible symbols of American capitalism and economic might into uncharted waters of nationalisation or government ownership.

This is the third-largest bankruptcy filing in American history and the largest-ever US bankruptcy in the manufacturing arena.

US Chapter 11 bankruptcy protection gives GM time to restructure its finances while being protected from its creditors.

The bankruptcy is likely to change GM drastically and 20,000 workers are likely to lose their jobs. GM has 92,000 employees in the United States and supports 500,000 retirees under the contract filed with the workers' union.

So why has the world's best known car company gone bankrupt? What led to the fall of the giant and how will the developments unfolding in the US affect GM India?

A killer combination

In a nutshell, very high labour costs, rising competition from foreign car makers, a frightening spike in fuel prices, freezing of credit, the collapse of the American economy, drop in sales caused by lack of purchasing power among Americans due to the recession, et cetera have formed a lethal concoction leading to the bankruptcy of the iconic carmaker.

Unmanageable labour costs

Over the years, protesting workers' unions at GM managed to get the company to agree to contracts that provide lifetime benefits to the members. This excessive cost of lifetime benefits pushed labour costs through the roof.

These costs have now reached an unmanageable proportion and the automotive giant just does not have enough money to either make these payments or to keep the company afloat, given the decline in sales and plummetting profits. Expansion, upgrade, new investments were totally out of the question.

No cash, few receivables and huge expenses

Reports suggest that GM is paying more than $1,500 per car that is built as just benefits to people who are not even working for the auto giant any more. An interesting bit of statistics says that the cost of steel used in a car made by GM is less than what it pays its retired union members in terms of benefits.

Added to this is the huge pay that GM workers draw even for low-level jobs at the company.

The company does not have much cash and even if it adds receivables to this, it accounts payable and accrued expenses are many times higher than that figure. Even adding the company's current assets (inventories, equipment on lease, etc) to this still leaves it way behind it current liabilities.

Government aid

The United States government, mindful of the impending death of GM, gave it over $19 billion from taxpayer money to keep it alive. It also sacked its legendary chief executive Rick Wagoner and decided to monitor the company's restructuring itself.

However, that has not helped revive the fortunes of the world's second-largest car company, after Toyota.

Once it goes into bankruptcy, the US government will infuse yet another tranche of about $30 billion to refinance and restructure GM.

The first signs of trouble

The first signs of GM's gargantuan financial troubles began to surface in early 2008. When by mid-2008, the prices of furl touched a historic high, there was a stunning change in consumer behaviour with Americans deciding to keep off big fuel-guzzling cars and SUVs in favour or smaller, fuel-efficient vehicles.

The sudden rise in the price of oil, the deepening recession and the falling sales led to Detroit's Big Three - GM, Chrysler, and Ford Motor Co - almost throwing in the towel.

Hard-to-get car loans and crazy fuel prices hurt GM

Car loans too were difficult to come by as banks, already reeling under the world's greatest financial crisis, decided to freeze credit. More and more people failed to qualify for loans, leading to a huge drop in car sales. Companies like GM found it almost impossible to raise funds or borrow from the market to keep from going belly up.

A study conducted by the car firms said that the historic spike in fuel prices was the '500-pound gorilla' that almost single-handedly kayoed GM and other carmakers.

By the end of the year, car giants were begging for help and the then George W Bush-led US administration decided to extend carmakers a lifeline and pumped in taxpayer money to keep the companies from collapsing.

ay own 70 per cent stake in the restructured General Motors, the ailing auto maker which is battling to avert a possible bankruptcy.

Under the GM restructuring plan, the United Automobile Workers union would hold up to 20 per cent through its retiree health care fund, and bondholders and other parties will get the remaining share. Shareholders would be virtually wiped out.

Some thorny questions

The prospect of GM being effectively owned by the government raises a number of thorny questions: Countless policy decisions -- on matters such as fuel economy standards, tax incentives to replace aging cars and green technology initiatives -- will present conflicting interests.

President Barack Obama's aides, meanwhile, have consistently said they would be reluctant shareholders, and they plan no operating role in the company. The day-to-day running of the firm would be left to professional managers and the government would not be involved in decisions about closing factories, renegotiating contracts or selecting product lines.

A news report said that the auto maker expected the UAW's health care trust, called Voluntary Employee Beneficiary Association or VEBA would receive 39 per cent of the company, bondholders 9 per cent, shareholders 1 per cent, and the rest going to the Treasury.

The Treasury Department which has lent GM about $18 billion since December, required the company to make deals with the union and bondholders to cut debt and expenses by June 1, the report said.

GM India not to be impacted

However, there are some questions on whether the new US government aid help revive the company's fortunes. There are a lot of uncertainties involved here too: no one is quite sure when will the US economy start turning around and when will consumer demand for new cars give GM any hope of coming out this mess.

The sales of new cars have plummeted by as much as 40 per cent since early 2009 and even Toyota, the world's biggest car maker, is suffering losses.

Amidst all this turmoil, General Motors India has kept a brave face. The company feel that there is little reason for it to panic as the Indian automobile market, even during this slowdown, is still growing faster than in most other economies.

An Economic Times report, quoting a GM India source, said that the bankruptcy will not have any impact on Indian operations. The bankruptcy proceedings are only for the reinvention of the US operations of GM. In the US, bankruptcy or Chapter 11 is used to make a brand stronger to suit the changing business environment. Therefore, it will only make GM stronger, the newspaper said.

MF industry's assets cross Rs 6 lakh cr in May

The mutual fund industry crossed a record Rs 6 lakh crore- (Rs 6 trillion-) mark in assets in May, with the country's largest fund house, Reliance MF, alone accounting for over Rs 1 lakh crore (Rs 1 trillion).

The mutual fund industry's average assets under management grew by Rs 86,355.19 crore (Rs 863.55 billion), or 15.66 per cent, and analysts said the increased inflows into fund houses show that investors are regaining confidence in equity schemes.

The combined average AUM of the 35 fund houses in the country increased to Rs 6,37,609.41 crore (Rs 6,376.09 billion) in May compared to Rs 5,51,25,422 crore (Rs 5,51,25,4.22 billion) in April, according to the data released by the Association of Mutual Funds in India.

Reliance MF maintained its top position as the largest fund house in the country with Rs 14,342.17 crore (Rs 143.42 billion) or 13 per cent jump in AUM to Rs 1,02,730.16 crore (Rs 1,027.3 billion) at May-end.

It had an AUM of Rs 88.387.98 crore (Rs 883.87 billion) at the end of April. The second-largest fund house, HDFC MF, gained Rs 11,525.47 crore (Rs 115.25 billion) in its AUM at Rs 75,406.10 crore (Rs 754.06 billion).

"The market has gone up substantially and the investors are also showing interest in equity schemes. With increased inflows, the subscription is also increasing," Sahara Mutual Fund CEO Naresh Garg said.

ICICI Prudential and state-run UTI MF added Rs 9,500.58 crore (Rs 95 billion) and Rs 8,947.88 crore (Rs 89.47 billion), respectively, to their assets last month.

ICICI Prudential's AUM stood at Rs 65,549.86 crore (Rs 655.49 billion) at the end of May, while UTI MF had assets worth Rs 63,437.87 crore (Rs 634.37 billion).

"Investors are now waiting for some kind of reforms in the upcoming budget. Any further gains in AUMs would depend on the speed of reforms," Garg said.

Further, LIC Mutual Fund saw an increase of Rs 2,483.49 crore (Rs 24.83 billion) in its AUM at Rs 28,598.76 crore (Rs 285.98 billion) last month.

The other fund houses which saw an increase in their average AUM in May include -- Canara Robeco MF, IDFC MF, DSP BlackRock, Deutsche MF and Kotak Mahindra MF.

The BSE benchmark index Sensex saw a 28 per cent gain in May and had settled at 14,625.25 points.

The fund houses had seen the combined AUM hitting the Rs 5-lakh crore (Rs 5-trillion) mark after a gap of two months at the end of April.

MTNL unveils pre-paid 3G service for Rs 300

Mahanagar Telephone Nigam Limited brought 3G services on Tuesday to the masses by introducing a prepaid option for this high-end service at just Rs 300.

Announcing the launch of the pre-paid 3G service, company CMD R S P Sinha said, "MTNL is launching 3G Jadoo Prepaid Services so that customer should be able to avail the latest 3G/3.5G services at an affordable price".

Since pre-paid is the preferred by customers, the 3G service will be available for only Rs 300 with lifetime validity, whereby a customer can make local video calls at Rs 1.8/minute and data download at Rs 3/MB.

In addition, a subscriber can also choose any of the data coupons to avail free data downloads coupled with free video calling to suit ones individual requirement, Sinha said.

Sinha expects the launch of pre-paid 3G services to increase it customer base.

He said the PSU has around 400 subscribers for its recently-launched 3G service and expects 2,00,000 to 3,00,000 users for in the first year of operations.

The company introduced 3G services in Delhi in December and in Mumbai last month.

The state-run telecom operator expects to add new capacity to accommodate 8,00,000 users, he said.

"Now the coverage is in parts of Delhi and Mumbai. We would cover 90 per cent by August," Sinha said. Over 95 per cent of mobile phone users in India use pre-paid services.

A Rs 300 prepaid Jeevan Sathi (Lifetime Trump) card has a talk value of Rs 15 and on 3G calls (local video calls) are charged at Rs 1.80 a minute to another MTNL 3G phone, while for other networks it is Rs 3 a minute.

STD video calls are priced at Rs 3.75 a minute and ISD video calls are charged at Rs 30 a minute. Data download rates are Rs 3 per MB.

The PSU also introduced 3G Data coupons ranging from Rs 99 to Rs 2,500 with slabs at Rs 250, Rs 450 and Rs 750.

Both the PSUs -- MTNL and BSNL -- have started their 3G services while private operators are still waiting for spectrum auction to start 3G services.

GST: Traders pin hopes on Budget

Traders are placing great hopes that the next Budget will have some concrete measures on implementation of Goods and Services Tax but some experts doubt the new tax may take more time than expected.

The GST is proposed to be implemented from April 1, 2010, but its rates have not been decided yet. GST will replace excise duty, service tax at the Centre and VAT at state-level.

Confederation of All India Traders General Secretary Praveen Khandelwal said, "The draft of GST was to be issued in 2007. Now, with a stable government in place at the Centre, the process of implementation of GST may move fast."

Tax expert and chartered accountant Amarnath Singla said, "Finance Minister Pranab Mukherjee may announce plans about GST in the Budget to be presented in July."

On tax rates, he said that GST can be implemented in four slabs. These could be zero per cent, 4 per cent, 20 per cent and a uniform rate of 15-16 per cent.

Assocham president Sajjan Jindal said, "We have asked the government to implement GST as soon as possible, as it is big step towards tax reforms. But, this is a complex tax system and its complete implementation may take time."

Parliamentary committees won't scrutinise Budget 2009

For the first time in recent history, the Union Budget will be passed without the statutory scrutiny by the parliamentary standing committees of various ministries

Paucity of time has forced the United Progressive Alliance government to approach the Opposition for the passage of the FY09-10 Budget in July without scrutiny.

Pranab Mukherjee, it is learnt, is in touch with Bharatiya Janata Party and the Communist Party of India (Marxist), while Parliamentary Affairs Minister Pawan Kumar Bansal and Commerce and Industries Minister Anand Sharma have been asked to liaise with the smaller parties to ensure the Budget moves smoothly through Parliament.

Under a practice adopted a few years ago, Parliament adjourns for three to four weeks after the first stage discussion of the Budget to let small committees of MPs scrutinise the Budget proposals in detail before they are returned to the Lower House for passage.

The government's stand is that there is no time for such an elaborate exercise this time as the vote-on-account taken in February is valid only until July 31 and the Budget needs to be passed before that date.

Since Finance Minister Pranab Mukherjee has already declared that he is preparing for the presentation of the Budget in the first week of July, it can be passed in another three weeks only by eliminating the standing committees' scrutiny and discussing it in Parliament, mainly in the Lok Sabha. The government's financial business does not require passage by the Upper House.

The government could have come up with another vote-on-account to have sufficient time for the main Budget, but it does not want to delay unleashing a slew of fiscal measures and reforms that can take care of the economic slowdown to some extent.

Bansal had called on Opposition leader Lal Krishna Advani to seek his cooperation in bypassing the standing committee route of the Budget. His plea was that the Lok Sabha will be able to discuss the Budget sufficiently before it is put to vote, hence the standing committees can be dispensed with as a one-time exception.

Mukherjee is already working in tandem with Sharma to decide the Budget concessions that can help the sectors still under recession.

While Sharma has repeatedly talked of a special package for exporters, the Budget is expected to also provide sops to the manufacturing and labour-intensive sectors as also farmers, besides giving a further boost to a score of the rural programmes taken up by the previous UPA government.

Mukherjee to offer sops for exporters

Finance Minister Pranab Mukherjee on Tuesday met exporters, a day after the release of the April export data which showed the sharpest fall in overseas shipments in 14 years, assuring them he would do his best in the Budget.

The heads of eight export promotion councils (EPCs) and the Federation of Indian Export Organisations (FIEO), in turn, promised to take exports to the $200 billion level this fiscal if their demands are met.

"His (Mukherjee's) response was very positive. He clearly said that we (government) understand the problem ... are very sensitive to the problem...will do the best in the Budget," FIEO president A Sakthivel said quoting the Finance Minister.

Secretaries in the revenue, expenditure, finance and commerce department as also Chief Economic Adviser Arvind Virmani were present in the meeting.

The country's merchandise exports barely grew by 3.4 per cent to $168.70 billion, hit by drastic decline in the second half of 2008-09 due to the global downturn. But the shipments have been dropping for the past seven months in a row costing five million jobs, as per FIEO estimates.

Commerce Secretary G K Pillai who has been batting for exporters, said, "He (Finance Minister) will take appropriate decision at the right time".

Mukherjee on Monday held pre-Budget consultations with industry leaders. He had said that Budget would be presented in the first week of July.

Mamata may present Rail Budget on July 8

Railway Minister Mamata Banerjee is likely to present the Rail Budget in the Lok Sabha on July 8.

"The Rail Budget is likely to be presented on July 8. The ministry is preparing a status report to be presented before the Railway Minister. The report is to be submitted in a day or two and after that the budget outline will be drawn by the minister," a senior ministry official said.

The ministry is likely to shell out about Rs 14,000 crore (Rs 140 billion) to its staff because of the implementation of the Sixth Pay Commission in the current fiscal.

The current operating ratio of 88 per cent is likely to be affected due to the implementation of the Pay Commission report, said the official.

Railways have often drawn flak from passengers for low quality food being served and unhygienic conditions prevailing in trains and platforms.

"Some drastic measures need to be taken to improve passenger amenities like food quality and cleanliness in trains," the official said.

Enhancing capacity of rolling stock including gauge conversion, doubling and laying new lines, acquisition of new coaches and wagons are some of the priorities of the ministry.

Beside work in major projects like Kashmir rail link, Dedicated Freight Corridor, the budget will also focus on the security upgrading of stations in metropolitan cities keeping the threat perception in mind.

TRIO, India's first tri-fuel car

In their endeavour to produce a cost-effective and environment-friendly vehicle, the students of  Maharishi Markandeshwar University, Mullana, Ambala, have developed the first of its kind tri-fuel car: TRIO.

Four BTech students of MM University -- Ankit Kakkar, Mohit Goyal, Varun Dhir and Piyush Saini -- have proved their mettle by developing the TRIO.

The car can run on conventional fossil fuel, i.e. gasoline and LPG, as well as on electricity. The basic aim of TRIO is to reduce the cost of transportation and pollutant emission of the vehicle.

The TRIO will use petrol, liquefied petroleum gas and battery packs. It can run solely on any of these fuel sources. The usage of these different sources will depend upon the engine RPM, torque required and speed of the vehicle.

TRIO has an in-build generator to produce electricity.

The cost of running TRIO on various fuels are:

• Electricity @ Rs 0.83/km,
• Petrol @ Rs 3.2/km, and
• Gas @1.8/ km.

Applauding the efforts of the students, Tarsem Kumar Garg, Chancellor, MM University said, "Long thought to be inexhaustible, fossil fuels have already reached their peak for oil extraction and production, and it is only a matter of time before natural gas and coal follow suit."

"These near-term concerns about oil supply have led to increasing focus on, and exploration of, alternative sources of petroleum. We are proud of our students for providing an option to combat the problems of rising fuel cost and environmental threats."