Markets set to cheer UPA Victory, expect Spectacular opening

sensex The Results of General Assembly elections might have taken even the pundits of politics by surprise, however even a layman can tell you that markets are going to sky rocket on Monday. Yes, predicting Monday’s market opening is not a rocket science anymore. After a gap of 25 years, the Indian voters have been able to give a clear mandate to a single party to form a government and markets could not have wished better than this.

A 800-1000 Points gap up Opening Possible

Markets have built in an expectation of hung assembly and have been caught on a wrong footing! It is very likely that there will be mad rush of traders, who built on hopes of hung assembly and taken significant short positions, to cover up their trades and this may push sensex intraday rise in the range of 800-1000 points. Investors are advised to be cautious and not to buy shares on Monday for Investment purposes and wait for the euphoria to die down. However, traders can make a killing as the markets turn volatile.

I see these results as an opportunity for the markets to cheer up as the stable government would be able to take up reforms at a much better pace as compared to last 5 years since communist would not be seen in the new parliament. After the news of Global Recession, there was no major reason for markets to hold up and hence they are not likely to miss this opportunity.

FII’s are also expected to speed up their investments since they have more clarity on the political front. Domestic Investors and Mutual funds are also expected to jump on the bandwagon.

Which Stocks likely to move up?

Virtually every stock on Nifty is expected to move up since this would be a secular and broad based rally. However more focus will be on stocks which fall under sectors where the UPA government is going to focus as a part of its Manifesto.

The UPA Manifesto has out emphasis on Rural Development Schemes and Infrastructural development projects. Hence Stock of companies related to Agricultural products like irrigation and Fertilisers are set to catch fire. Keep an eye on Stocks like Nagarjuna Fertilisers and Jain irrigation. Infrastructure related companies in field of Power, Cement and Construction will also see a significant catch up. Keep a watch on stocks like ACC, GVK Power & BHEL .

Congress Manifesto also provides thrust on Education. With this stock like Educomp Solutions and Aptech are likely to remain in Limelight.

Another segment likely to fire up will be banks. Rumors are that the government may soon announce another stimulus package to drive further liquidity in the markets and decisions can be taken on revising the Bank Rates. Keep an eye on stocks like PNB and SBI and HDFC Bank.

Besides the Manifesto, the Ruling party is also expected to bring back on track its program of disinvestment in PSU companies. This had hit roadblock due to strong resistance from Left parties. Though this may not be on immediate agenda of the government, it would pave the way for Re-rating of the PSU stocks.

How long will this Rally continue ?

This a hard nut to crack. Though the new strong government has given a reason for sensex to rejoice, it would at best be a short term stimulus. The fact is that the Global economy is still in the clutches of recessionary forces created by its ill-doings. India being a open economy cannot escape the burnt. However, the First quarter result has not been as bad as thought of. This shows that the impact of slowdown in India (caused by global recession) would be lesser than perceived.

The best thing India and its government did was to get proactive in dealing with the situation. This is the difference between U.S. and India. They woke up only after ruining themselves while we were proactive enough to take steps to combat the slowdown. This may led us to believe that the worst is behind us and sensex may not retest its earlier lows. However, a lot depends on the global scenario in the coming quarters and any adverse development may well leave scars on our markets too.

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Verdict Out : Indians prefer Weak PM to Communal PM

Historical verdict shows Indians voted for Development and stability

 incThe India’s political theatre has come out with an unprecedented show of results. Though the final results are yet to be declared, the leads show that Congress and its allies have managed to secure a astounding victory over the BJP led alliance by a huge margin. The red Flag of Left has been teared to pieces. The political blackmailers like SP and RJD have been shown the exit door. The election results have given a clear indication that Indian public wanted a government who can take the country forward to the path of progress and prosperity while maintaining stability and peace and the mandate has been clearly in favor of congress. BJP was unable to impress the public with its campaign of a determined leader in the form of LK Advani.

The Weak PM Campaign Backfired on BJP

The PM-in-waiting Mr. Advani has made it a major propaganda that Man Mohan Singh was the weakest Prime minster India ever had. However, this message didn’t went well among the voters. Advani’s main election plank of a weak PM actually Backfired on him and I feel this one factor itself did a huge damage to the party’s prospects. Why ?

Manmohan Singh’s image as a politician is of a very clean, Honest and a intelligent person. To put it more clearly , the work done Mannohan singh as a finance minster in the Narashima Rao government still lies deep rooted in the minds of the people. If you ask me , I would say that he is one person whose image of a clean and honest person and a person who has transformed the country’s fortune by his visionary economic wisdom is unparalleled even if you combine the intellectual wisdom all all the leaders of BJP.

Indian voters rejected Advani’s plea that Manmohan singh was a weak prime minister and this time they have made sure that he can emerge even more stronger.

Rahul Gandhi’s Acceptance among the Youth of India

rahul Rahul Gandhi was successful in projecting himself as a leader who is capable of representing the youth of India. The charisma of Gandhi family, Rahul’s handling of the election campaign and his show of emotional attachment to the villages of India and the poor & backward people worked really well and transformed into a huge success of party not only in the written off state of U.P., but also helped it clinch a large number of seats due to acceptable of Rahul Gandhi among the youth’s. Rahul has definitely emerged as the youth icon of India and has established a place in their hearts.

People want development and not Temples

Every time elections happen, BJP starts its old tune of Jai Shree Ram and its promise of construction of Lord Ram’s Temple. This time also the party repeated its rhetoric but the Indian voters have made up their mind. They had enough of these slogan to arouse their religious sentiments for generating votes and have made up their mind that Ram Mandir should not be the criteria of choosing a party to lead the nation. They wanted a government who can make their lives better and work on developmental issues.

BJP didn’t offered a Unique Proposition

The lack of unity among the second rung leaders in BJP was clearly visible and the party didn’t offered any unique proposition to the public to vote for them. L K Advani could not impress the public with his promise of a determined leadership to the country. He proved too weak to steer the party on its own and projections of people like Narendra Modi as a future prime minister also proved self destructive to party’s image among the voters.

To summarize the election outcome, the Indian public has placed its trust on the performance of the UPA government and wants it to continue to take the nation on the path of development and prosperity. The task on hand is for sure a litmus test for the UPA and the expectation levels have gone up for sure.

Coming Next : Impact of Election results on Stock Markets

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Mhada Lottery draw to be held on 19th May

[Mhada1[4].jpg]The fate of lacs of applicants for the allotment of 3863 Flats under Mhada Scheme is soon going to be decided. Mhada is going to held a draw  by lottery to declare the successful applicants on Tuesday, 19th May,2009.

Around 4.35 Lac applicants are trying their luck to get a pie of the 3863 flats. Out of these, 5300 applications have been rejected due to lack of documentation. The list of applicants who are eligible to participate in the draw has been put on the Mhada Website. The lottery draw will be held at Rangsharada Auditorium at Bandra (W)

If you want to witness the lottery process, Mhada will distribute free passes on First cum first serve basis between 11-2 PM at the Mhada Head-office at Bandra (E). Results will also be displayed outside the Auditorium on the LED Screen.

The whole process of lottery would be video recorded to ensure transparency

List of Eligible Applicants

Mhada Circular on Lottery Results

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MHADA offers 3683 Flats at 50% of Market Price

Update : To view the list of persons qualified for the lottery of 3863 tenements to be held on 19th May 2009, click on the respective scheme code below

190A 203 214 223 232
191A 206 215 224 233
192A 207 216 225 234
193A 208 217 226 235
195A 209 218 227 236
196A 210 219 228 237
200 211 220 229  
201 212 221 230  
202 213 222 231  
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Shubh Griha- Application Form and Details

shubh_griha_logo Details are now available on the Tata Housing Website for “Shubh Griha” township. Application forms will be available from Monday May 11th,2009 at select branches of SBI.

Expected Date of Allotment : 29th June,2009

Expected Date of Possession: May 14th, 2011

Forms will be available at Boisar, Virar, Vasai, Palghar, Nallasopara,Dahanu Road, Thane, Borivali(W), Andheri East branches of SBI. For details and address of the branches click the link below

List of  SBI branches where forms will be available from 11th May 2009

In addition the forms would also be available at the Fort Regional Office of Tata Housing.

Salient features of Shubh Griha

  • Two types of Flats are available –
    • One Room and Kitchen
    • One Room, Hall & Kitchen


  • The Township will provide amenities like School, Playground,Community Center, Shopping Center, Jogging Track and Hospital.


  • The structure will be Ground Floor + 2 Additional Floors, hence it will three Floor apartments.


  • All Rooms and Kitchen will have Ceramic Tiles flooring. Living room will have Oil bound distemper.


  • Bedroom and Kitchen will have Overhead Storage space.


  • Flats will be handed over with premium quality bathroom fittings and sufficient Electric fittings.

Types of Flats

1 BHK - 465 Sq. Ft.                   No. of Flats 660   Price : Rs. 6,74,250    See Flat Plan

1 RK Large - 360 Sq. Ft.           No. of Flats 474   Price : Rs. 5,04,000    See Flat Plan

1 RK Small - 283 Sq. Ft.           No. of Flats 108   Price : Rs. 3,90,540    See Flat Plan

Payment Plan

  • Rs. 10,000 have to be deposited with the Application form.
  • 7.5% –8.5% (depending on type of flat) of the amount to be deposited within 15 days of allotment letter
  • 85% of the amount to given in 7 Quarterly Installments starting from September,2009
  • Balance 5% to be deposited at the time of Possession.

For Detailed payment plan click here

Shubh Griha Website

Update: Application forms are also available at Regional Offices at Kolkata, Delhi, Bangalore and Chandigarh.

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Stocks in News: MIC Electronics, Aptech, Godrej Industries

MIC Electronics

Investment major Fidelity has bought 20.3 Lac shares of MIC Electronics at a average price of Rs. 28.99. Hyderabad based MIC Electronics is a global leader in the design, development & manufacturing of LED Video Displays, high-end Electronic and Telecommunication equipment and development of Telecom software. The company has recently launched High Efficiency Solar LED. At the current market price of Rs. 30, the stock trades at a Price to Book value of 1.33 and a PE Multiple of 3.94 with Industry PE at 8.87.


India’s most well known Investor Rakesh Jhunjhunwala has bought 10 Lac Shares of Aptech at a price of Rs. 113. Prior to this Rakesh has bought 5 Lac Shares of Aptech on 19th December,2008 at a price of Rs. 81. Rakesh Jhunjhunwala also holds the position of Chairman in Aptech Ltd. Aptech Limited is a global retail & corporate training solutions provider headquartered in Mumbai, India, with a presence across 5 continents. The company commenced its IT training business in 1986. Over the years, Aptech Limited has trained over 5 million students. At the Current Market Price of 113 the stock quotes at a Price to Book Value of 3.93 and a PE of 110.49 against the Industry PE of 39.

Godrej Industries

The stock price zoomed after the announcement of Buy-Back offer by the company of 57 Lac shares at a price not exceeding Rs. 275 per share. The stock is currently quoting at  Rs.101 and has gained around 30% in last few days. At Current price the stock carries a Price to Book Value of 3.12 and PE multiple of 114 against industry PE of 23.95.

Godrej Industries Limited is India's leading manufacturer of oleo chemicals and makes more than a hundred chemicals for use in over two dozen industries. It also manufactures edible oils, vanaspati and bakery fats. Besides, it operates real estate. GIL operates two plants, one at Valia in the Indian state of Gujarat and a second at Vikhroli in suburban Mumbai. The company's products are exported to 40 countries in North and South America, Asia, Europe, Australia and Africa, and it leads the Indian market in the production of fatty acids, fatty alcohols and AOS.

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Tata Housing to launch Sub Rs. 4 Lac Flats

Launches Subha Griha project in Boisar near Mumbai

flat Here comes another low cost offering from the Tata Stable. After the launch of the world’s cheapest car Nano, the Tata’s has unveiled its ambitious project “SUBHA GRIHA” which aims to provide low cost affordable housing in Suburbs of Mumbai.

Booking starts from May11,2009 and forms would be available for Rs. 200. Allotment would be made on basis of Lottery draw.

  • The township will be located in Boisar, which is at a distance of about 100 Kms. from Mumbai

  • The township will consist of 1200 One Room Kitchen Flats starting at Rs. 3.91 Lacs

  • The construction is expected to be completed in 24 Months time.

  • The project is targeted to address housing problems of migrants who currently opt for rented accommodation

  • The project would offer community Halls, School and Hospital within the township.

  • There will a range of options available and the flats could cost between 3.91- 7 Lacs depending on specifications

  • The company proposes to put a “No sale Clause” for a period of Nine months from the date of allotment to curb speculative sale purchase of these flats.
About Boisar

Boisar is a town in Thane district in the state of Maharashtra. It is located 45 kms (28 miles) north of Virar on the Western Railway line of Mumbai Suburban Railway. By Road, it can be reached from National Highway NH-8, {{convert22kmmi} off from Chilhar Phata. There are regular state transport buses from Palghar, Thane, Bhiwandi and Wada.

Subha Griha Project in Delhi & Bangalore

Tata Housing has intends to launch the affordable flats scheme in NCR and Bangalore in this year itself. It will launch this Scheme in other major cities including Chennai and Kolkata in the coming years.

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Yamuna Expressway : Residential Plots Scheme 2009

YEIDA Scheme Extended till 15th May,2009

(This article has been further updated on 4th October,2009 )

The notice says that the Scheme has been extended till 15th May,2009 due to demand from Public. However, things don’t look that rosy. The Scheme has not been able to muster good response from investors as expected by the Yamuna Expressway Authority (previously known as Taj Express Way).

About Yamuna Expressway Residential Plot Scheme

These residential plots will be developed along under construction Noida-to-Agra Yamuna Expressway. The proposed site / sector is about five minutes drive from the proposed Formula One Racetrack . The land on which the plots would be developed is under the process of acquisition.

Details of Plots is as under

CategorySize (Sq. Mtr)No. of PlotsGen. Cat.Farmer Cat.Registration Amount

The rate of the land of the residential plots under this scheme is Rs. 4,750 per sq. mtr. The tentative date of draw is 10th August,2009.

Why did the Scheme failed in getting Response ?
  • With the current downtrend in Real estate prices, investors are worried about the returns from the Scheme

  • The Rate of Rs. 4,750 per Sq. Mtr. is considered to be aggressive given that the Scheme may take at least 8-10 years to develop.

  • Investors have doubts about the progress on the proposed Noida - Agra Expressway itself and any dealy on this project would also delay development under the Scheme.

  • The Agra Noida area is more prone to petty crimes and hence reduce the attractiveness of the scheme from Safety point of view.

Update on YEIDA Residential Scheme 2009 Draw

As per the Public Notice issued by the Yamuna Expressway Industrial Development Authority, the draw for YEIDA residential Scheme 2009(1) will be held on 14th October,2009 and 17th November,2009.

  • Draw for All Types (A,B,C,D & E) of Farmer Categories of Plot and General Category A-4000 Sq. Mtr, B-2000 Sq. Mtr. and C-1000 Sq. Mtr. will be held on 14th October,2009 at Community Center, Sector Delta-II Greater Noida at 10:00 AM. This will be a Manual Draw.
  • Draw for Category D-500 Sq. Mtr. and Category E-300 Sq. Mtr. will be held on 17th November,2009 at India Expo Mart, Greater Noida at 10:00AM. This will be a computerised draw.

Details of Eligible Applicants (whose application will be considered for draw) will be posted on the YEIDA Website from 5th October,2009. Click here to check your Application Status.

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