Indian ADRs gain $6 bn in a week; ICICI mkt cap climbs $3.4 bn

New York, May 24 (PTI) Indian stocks listed on the
American bourses saw their cumulative market valuation jumping
by USD 6 billion in the last week, with private sector lender
ICICI Bank accounting for over half of the gains.

For the week ended May 21, the 16 Indian entities listed
as American Depository Receipts (ADRs) on the New York Stock
Exchange and the Nasdaq added USD 5.94 billion to their total
market capitalisation.

The valuation of ICICI Bank jumped by USD 3.4 billion.
However, the market cap of IT bellwether Infosys plunged
by USD 2.5 billion during the same period.

The market capitalisation of private sector lender HDFC
Bank rose by USD 1.89 billion, while that of copper producer
Sterlite Industries went up by USD 1.25 billion.

Tata Motors added USD 904 million to its market cap
during the week. IT major Wipro saw a rise of USD 394 million
in its market valuation in the last week.

Meanwhile, market values of outsourcing firm Genpact and
telecom major Mahanagar Telephone Nigan Ltd increased by USD
161 million and USD 151 million, respectively.

Pharma major Dr Reddy's Laboratories gained USD 146
million in market capitalisation whereas Satyam Computer
Services' valuation rose by USD 118 million.

Other gainers include telecom major Tata Communication,
IT firm Patni Computer System and Internet firms Rediff.com
and Sify Technologies, which gained in the range of USD 1
million to USD 35 million.

On the other hand, apart from Infosys the market
valuations of BPO companies WNS and EXLService by USD 6
million and USD 2 million, respectively.

Last week, the American markets were mostly in the
negative territory amid fresh fears about the health of the
global economy. PTI SP
AM
NNNN


Ambani groups gain Rs 90k crore on UPA mandate

Mumbai, May 24 (PTI) India's Ambani brothers — Mukesh and
Anil — have emerged among the biggest beneficiaries of the
people's mandate in favour of the Congress-led UPA government
as their group companies added close to Rs 90,000 crore of
wealth in just five trading sessions after the results were
declared.

While market valuation of the Anil Ambani group rose by
over 35 per cent, that of the companies belonging to the group
led by elder brother Mukesh improved by over 12 per cent,
against an overall market appreciation of close to 20 per cent
during this period.

As a result, the nine listed companies of the two groups
together accounted for about 12 per cent of the total gain in
the overall investors' wealth, measured in terms of total
market capitalisation of all the listed entities.

In absolute terms, Mukesh Ambani group recorded a bigger
gain of over Rs 44,000 crore, against a gain of about Rs
43,800 crore for the Anil Ambani group.

In five trading sessions between May 18 and May 22 — after
results of the general elections were declared on May 16 — the
overall investor wealth rose by about Rs 7,51,000 crore — from
Rs 38,07,000 crore to close to Rs 45,60,000 crore.

Markets were closed on May 16 and the next day because of
weekend holidays and the first trading after the election
results was held on May 18.

Since the poll outcome came in favour of a second term
for the UPA government to be headed by Manmohan Singh, the
Ambani groups together have seen their market cap rise by over
Rs 88,000 crore — from about Rs 4,84,500 crore before the
announcement of the election results to close to Rs 5,73,000
crore now.

Separately, the collective market-cap of three Mukesh
Ambani group firms — Reliance Industries, Reliance Petroleum
and Reliance Industrial Infrastructure Ltd — has increased to
close to Rs 4,07,000 crore.

At the same time, the total market-cap of six Anil Ambani
group firms — Reliance Communications, Reliance Capital,
Reliance Power, Reliance Infra, Reliance Natural Resources Ltd
and Adlabs Films — has increased to about Rs 1,66,400 crore.

Among the companies from the two groups, the biggest rise
in terms of percentage terms has been recorded by Reliance
Capital, the market cap of which has surged by over 52 per
cent during this period.

But in absolute terms, Reliance Industries has recorded
the biggest gain of close to Rs 37,000 crore. RIL is the
country's most-valued firm with a market-cap of about Rs
3,43,500 crore.

In the Anil Ambani group, Reliance Communications is the
most-valued firm with a market-cap of close to Rs 65,000
crore.

None of the companies from the two groups saw a decline
in their market-cap during this period. PTI BJ
AM
NNNN


India buys US debts worth 38.2 bn dlr in just one year

New York, May 24 (PTI) As the recession-hit US economy is
groping in the dark over uncertain financial position, India
has increased its exposure to American debt securities by over
three-fold to USD 38.2 billion till March compared to the
year-ago period.

The emerging nation's investment in the US debt stood at
USD 11.8 billion in March 2008.

According to the data from the US Treasury Department,
India has bought American debt instruments worth USD 38.2
billion till March 2009.

Interestingly, India's exposure to US debt has surged by
about USD 20 billion since October 2008, when the ongoing
financial turmoil turned for the worse. The world's largest
economy was rattled by the then-famed Lehman Brothers filing
for bankruptcy in mid-September.

Considered to be one of the safest investment bets, India
had invested USD 18.3 billion in October 2008 in the American
securities, which soared to USD 38.2 billion in March.

Among the foreign countries, neighbouring China has the
highest investment of USD 767.9 billion.

Japan, the world's second largest economy has invested
USD 686.7 billion in US debts till March 2009.

The American economy officially entered into recession in
December 2007 and has contracted at a rapid pace in the
previous two quarters.

In the first three months of this year, the US GDP shrank
6.1 per cent, whereas it had declined 6.5 per cent in the
December quarter.

Though corporates, banks and other financial institutions
can purchase the bonds, in the case of India, the Reserve Bank
accounts for large part of the lending.

On the other hand, the number of bank failures in the US
are rising almost every week, reflecting the weak financial
situation. More than 46 banks have been closed since September
2008 and a majority of them are small and regional lenders.

The US authorities has come up with many measures,
including the USD 700 billion rescue package and plans to mop
up toxic assets worth nearly USD 1 trillion from the financial
system, to revive the economy. PTI RR
AM
NNNN


Post-poll stock rally makes govt richer by Rs 2,50,000 cr

Mumbai, May 24 (PTI) The historic welcome rally in Indian
stock markets after the Congress-led UPA got a clear mandate
in elections seems to have benefitted most the government
itself as the value of its stock portfolio zoomed by about Rs
2,50,000 crore in just five trading sessions after the poll
results were out.

With such a massive gain in the value of shares held by
it in the listed companies, the government has cornered nearly
one-third of the overall surge of about Rs 7,50,000 crore in
the market since the general elections results were declared
on May 16 which gave a clear mandate to Manmohan Singh and his
team to form the government for second consecutive term.

As the markets were closed on May 16 and the next two
days were weekend holidays, there have been only five trading
sessions -- from May 18 to May 22 -- since the results were
declared.

This five-day gain of about Rs 2,50,000 crore in the
government's stock portfolio is equivalent to nearly half of
the total gain witnessed during the five years of the first
term of the UPA government, beginning in May 2004.

The government's shareholding across all the listed
companies is at present valued at about Rs 11,30,000 crore.

This includes about Rs 11,15,000 crore from the public
sector firms in which government holds promoter stake, while
another Rs 15,000 crore comes from companies in which it has
non-promoter holding, such as Hindustan Zinc and IDFC.

While the government owns equity as promoter in more than
80 companies, there are more than 100 other companies in which
the government holds shares but as non-promoter shareholders.

A vast majority of shares, in terms of their value, are
held by the central government, while various state
governments also own shares in many companies.

Before the results of the recent Lok Sabha elections were
announced on May 16, the value of the government's holding
stood at about Rs 8,80,000 crore.

The market value of the government's stock holding stood
at about Rs 3,00,000 crore when the UPA government first
assumed office in May 2004, while it appreciated by over Rs
5,00,000 crore during its first five-year term.

Together, the market value of government's stock holding
has appreciated by about Rs 8,00,000 crore ever since a UPA
government assumed office five years ago, despite a sharp
initial plunge seen in the market in May 2004 on the news of
the government was formed with the support of Left Parties.

However, the market later saw a sharp bull rally, which
continued untill a severe meltdown, due to the global economic
downturn, hit the domestic bourses in January 2008.

In the run-up to the results of the latest general
elections, the market started moving upward again and a
historic rally was witnessed on May 18 when it became clear
that the Congress-led UPA would form a stable government
without the support of Left parties.

Since May 18, the total market capitalisation of all the
listed companies has grown to about Rs 45,60,000 crore --
marking a gain of about Rs 7,50,000 crore in just five trading
sessions so far.

This includes a gain of over Rs 3,00,000 crore in the
market value of the public sector companies alone, where the
government holds promoter stake.

With an average holding of more than 50 per cent in these
companies, the government holds a lion's share in these firms,
whose market capitalisation grew from about Rs 11,25,000 crore
to over Rs 14,25,000 crore during the past five sessions.

The companies having registered significant gains during
this period in their market cap include MMTC, ONGC, NMDC, SBI,
NTPC, SAIL, BHEL, Indian Oil, Power Grid, Neyveli Lignite,
Nalco and Hindustan Copper.

Energy giant ONGC is the most valued PSU firm in the
country with a market cap of about Rs 2,24,000 crore, which
includes shares worth over Rs 1,65,000 crore held by the
government. Besides, the government's holding also exceeds Rs
1,00,000 crore in companies like NTPC, MMTC and NMDC.

The companies where the government holding is in excess
of Rs 50,000 crore include BHEL, SBI, SAIL and Indian Oil
Corp. PTI BJ
AM
NNNN


Maoist leader Patel Sudhakar Reddy killed in police encounter

Warangal (AP), May 24 (PTI) Top Maoist leader of India's
southern state Andhra Pradesh Patel Sudhakar Reddy, allegedly
involved in several high-profile cases including a bid on the
life of former chief minister N Chandrababu Naidu, was killed
along with a colleague in an encounter with police here
Sunday.

Acting on a tip-off, a police team was conducting combing
operations at Lavella forest area in Tadwai Mandal of Warangal
district at about 6.00 AM IST when they confronted a group of
Maoists, Superintendent of Police V C Sajjanar said.

The Maoists opened fire on policemen which was
retaliated, resulting in the death of two Naxals, he said.

The two have been identified as Patel Sudhkar Reddy, a
member of CPI (Maoists) Central Committee, and Venkataiah, a
member of Maoists district committee, he said.

Reddy, a native of Kurthirao Cheruvu in Mahabubnagar
district, was allegedly involved in the bid on life of former
Chief Minister Chandrababu Naidu at Tirupati in 2003 and
killing of then Home Minister A Madhava Reddy in 2000.

He was also allegedly involved in an attack on the elite
Greyhounds policemen in Balimela reservoir in Andhra-Orissa
border last year and the killing of senior IPS Officer K S
Vyas in the 1990s.

Reddy Alias Srikanth Alias Suryam carried a reward of Rs
12 lakh on his head. He was currently in-charge of Maoists
activities in Karnataka, police said.

He joined the Naxal movement in the early 1980s when he
was pursuing PG in Osmania University in Hyderabad, police
said.

Venkatiah Alias Pranay belong to Inapur village in
Cheryal Mandal of Warangal district, he said. PTI COR
AM
NNNN