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
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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
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