Rishabhdev Technocable IPO to open on June 4

Rishabhdev Technocable, a cable manufacturing and trading company is entering the capital market with its initial public offer of 90,00,000 equity shares of Rs 10 each. The issue will open on June 4, 2009 and close on June 9, 2009. The price band is fixed at Rs 29-33 per share.

The issue comprises a promoters contribution of 21,45,500 equity shares and a net issue to the public of 68,54,500 equity shares. The net issue to the public would constitute 46.66% of the fully diluted post-issue equity share capital of the company.

The existing equity shares of the company are listed for trading on the Pune Stock Exchange (PSE) and the Jaipur Stock Exchange (JSE). The fresh issue of shares of the company are also proposed to be listed on the Bombay Stock Exchange.

The company is expanding into manufacturing of Power and Control Cables on a major level. The objects of the issue include amongst others, expansion cum modernization of existing manufacturing facilities at Daman and setting up new facilities for manufacturing of Control and Power Cables at Daman and Silvassa respectively.

The book running lead managers to the Issue are IDBI Capital Market Services Limited and PL Capital Markets Private Limited.

Source: moneycontrol.com

Pranab Mukherjee is New Finance Minister: Key Portfolios Announced

Dr Manmohan Singh took over as the twenty-first Prime Minister of India on May 22, 2009. Today, it was announced that Pranab Mukherjee was elected as the Finance Minister, while P Chidambaram would retain his position as the Home Minister. AK Antony has been appointed as the Defence Minister and Mamata Banerjee will take over as the Railway Minister. Sharad Pawar has been given the position of the Agriculture Minister, Food and Civil Supplies. SM Krishna is the new External Affairs Minister.

Finance Minister Pranab Mukherjee said his task is to encourage the economy. "We will address all economic issues. Efforts will be made to return to high growth as soon as possible." He said the government will present the Budget in due course to remove uncertainty. Mukherjee will assume charge on May 25.

Other Cabinet members sworn in on May 22 include: Ghulam Nabi Azad
Sushil Kumar Shinde
Veerappa Moily
Jaipal Reddy
Kamal Nath
Vayalar Ravi
Meira Kumar
Murli Deora
Kapil Sibal
Ambika Soni
BK Handique
Anand Sharma
CP Joshi

Source: Moneycontrol.com

Buy largecaps, midcaps on dips; sell on every rise: Experts

It was a day of stark contrasts on Dalal Street. The frontline indices faced substantial selling pressure and continued to slide lower, while broader indices were in an orbit of their own, clocking stupendous gains The Nifty closed at 4,270, down 48 points, while the Sensex shut shop at 14,060, down 241 points.

Deven Choksey of KR Choksey Securities sees the Nifty trading between 4,150 and 4,500 in the short-term.

Anu Jain, Vice-President - IIFL Private Wealth Management, India Infoline, said the Nifty needs to consolidate at current levels. "The last 200 point consolidation on the Nifty happened between 3400 and 3600. Post that, it rallied further on. This is the same phase which is coming again."

Speaking on the rally in midcaps, Choksey said topline stocks have started becoming expensive and valuations are getting stretched, so investors have started catching up with some of the neglected midcap stocks at this point in time.

However, he was quick to caution that investors may fall into a trap because in many midcap stocks, fundamentals are not supporting these companies immediately. "It might take at least six-nine months before we could see the first results coming out from some of these companies. Some midcaps would be moving up and may discount the future in advance. That is where some investors may lose out on money."

Choksey advises investors to retain at least 70% portfolio and book profits in around 25-30% of the portfolio when the markets are rallying on the upside. "Investors should buy on dips and sell on rises. One will have to continue this activity for 25-30% part of the portfolio." Investors need not rush to make fresh investments in markets, he added.

Jain too advises investors to buy largecaps and midcaps on dips.

Source: Moneycontrol.com

Don't get carried away with euphoria in markets: Experts

Yesterday, the benchmark indices closed on a flat note today amid huge volatility and also reported the highest ever turnover of Rs 157877.29 crore after seeing two upper circuits on Monday.

Commenting on the market's move, Dipan Mehta, Member of the BSE and NSE, said there was a massive buy order in the futures segment in the first few minutes of trade and because of the sharp rise in the implied volatility, there have been huge increases in the margins. "In some instances the margins have gone up anywhere from 4–5 times from what was there on Friday. That is causing a bit of a concern on the liquidity of the brokers." He added there may be some pressure on the clients or at least on traders who are in the futures market to try and unwind their short positions.

Mehta expects the market to get into a healthy trading range––maybe 200 points for the Nifty and about 600 points for the Sensex with today’s close being the midpoint.

On the whole, Mehta feels, the market will get into a nice rhythm and will see increased participation in terms of players as well as in terms of stocks. However he cautioned, it is important not to get carried away by the euphoria but still look for opportunities to increase exposure to equities.

While Amitabh Chakraborty, CFA, FRM President (Equites), Religare Capital Market, said one should be cautious at this point of time. He added though that there is a lot of optimism getting built-up on what the government will do in the budget or the next 100 days. Given the bureaucratic situation, he said, the new government may not be able to deliver in the next 100 days as the market is expecting.

However, Chakraborty added that with a stable government in place a lot of things would be happened––India would be re-rated from the S&P or Moody's point of view, the investment climate will improve and India would be a capital investment story. He added if India’s growth rate improves to 6–6.5% that will account to about 20%–22% of the global growth. According to him, a country that gives such kind of growth cannot be ignored. "So I expect USD 4–5 billion investments coming in the full year from the FII side." However, Chakraborty, like Mehta, added a cautious note saying, "I think retail investors should be cautious at this point in time."

Rajat Bose of rajatkbose.com expects a further upside on the Nifty. He said that 4,327 mark for the Nifty is a very crucial level. "If Nifty were to stay above that on a closing basis on a persistent basis then we can expect further upside."

According to him, between 4,450 and 4,469 is another resistance level. He feels now this band would be 4,300 to 4,475, or 4,500 at best.

Bose expects some kind of consolidation, especially after a vertical move of about 700 points. "So we require some kind of consolidation, and possibly, in that consolidation unless we see 4,549 not being crossed decisively by the spot Nifty, then maybe that support at 4,327 might be broken."

Source: Moneycontrol.com

How votes will be counted on Saturday

All eyes are on Saturday's vote count. A glance at the arrangements the Election Commission has made for the mammoth exercise across the country:

* Total counting centres: 1,080
* Total counting halls: 4,260
* Counting staff deployed: approximately 60,000
Secure arrangements for counting agents of candidates to witness the counting procedure.
* A micro-observer at every table
Random checking of electronic voting machines (EVMs) by recounting of two counted machines after every round by micro-observers.
* Proceedings in the counting hall shall be video-graphed.
* Tabulated data to be verified by observers.
* Each counting centre has one counting hall for every segment of the constituency, one data centre and one media centre.
* The result sheet from each counting hall after the end of every round shall be sent to data centre and the media centre simultaneously.

Source: Moneycontrol.com

World's 8 Biggest Stock Exchanges

You either make or break your fortune in stock markets, it is said. And rightly so. While we often get to hear of men turning paupers overnight when the stock markets crash, tales of people like Warren Buffett and Rakesh Jhunjhunwala inspire us to dream big.

Here we present information about the world's eight biggest stock markets. They have not been ranked. Read on...

1. New York Stock Exchange: $21.79 trillion share trades
The New York Stock Exchange (NYSE) is nicknamed the 'Big Board'. This is the largest stock exchange in the world by dollar volume with 2,764 listed securities. It has the second most securities of all stock exchanges.

The NYSE originated on May 17, 1792. On that day, the Buttonwood Agreement was signed by 24 stock brokers outside New York's 68 Wall Street under a buttonwood tree.

The first office of NYSE was a room at 40 Wall Street rented for $200 a month. NYSE was gutted in the Great Fire of New York in 1835 and reconstructed soon after. In 1865, it moved to 10-12 Broad Street.

2. NASDAQ: $11.81 trillion share trades
The NASDAQ is the acronym for National Association of Securities Dealers Automated Quotation System. An American stock exchange, NASDAQ is the largest electronic screen-based equity securities trading market in the US.

It is owned and operated by the NASDAQ OMX Group.

With about 3,200 companies in its ambit, NASDAQ has more trading volume per day than any other stock exchange.

NASDAQ came into being in 1971 by the National Association of Securities Dealers. The latter divested themselves of it in a series of sales in 2000 and 2001.

NASDAQ was the successor to the over-the-counter (OTC) and the 'Curb Exchange' systems of trading. As late as 1987, the NASDAQ exchange was commonly referred to as the OTC.

3. The London Stock Exchange: $7.57 trillion share trades
London Stock Exchange, or LSE, is located in London, England. It is part of the London Stock Exchange Group plc.

At present, it is situated in Paternoster Square close to St Paul's Cathedral in the City of London. One of the largest stock exchanges in the world, LSE was founded in 1801.

The trade in shares in London began with the need to finance two voyages: The Muscovy Company's attempt to reach China via the White Sea north of Russia, and the East India Company voyage to India and the east.

Unable to finance these costly journeys, the companies raised the money by selling shares to merchants, giving them a right to a portion of any profits eventually made.

4. Tokyo Stock Exchange: $5.82 trillion share trades
The Tokyo Stock Exchange, or TSE, located in Tokyo, Japan, is the second largest stock exchange in the world by market value, second to the New York Stock Exchange, but 4th in terms of worth of shares traded.

It currently lists 2,271 domestic companies and 31 foreign companies.

The Tokyo Stock Exchange was established on May 15, 1878, as the Tokyo Kabushiki Torihikijo under the direction of then Finance Minister Okuma Shigenobu and capitalist advocate Shibusawa Eiichi. Trading began on June 1, 1878.

In 1943, the exchange was combined with 10 other stock exchanges in major Japanese cities to form a single Japanese Stock Exchange. The combined exchange was shut down and reorganised shortly after the bombing of Nagasaki.

5. Euronext: $3.85 trillion share trades
Euronext N.V. is a pan-European stock exchange based in Paris with subsidiaries in Belgium, France, Netherlands, Luxembourg, Portugal and the United Kingdom.

In addition to equities and derivatives markets, the Euronext group provides clearing and information services.

Not too long ago, Euronext merged with NYSE Group to form NYSE Euronext, the 'first global stock exchange'.

Euronext was formed on September 22, 2000 in a merger of the Amsterdam Stock Exchange, Brussels Stock Exchange, and Paris Bourse.

In December 2001, Euronext acquired the shares of the London International Financial Futures and Options Exchange, which continues to operate under its own governance.

6. Deutsche Borse: $2.74 trillion share trades
Deutsche Borse AG is a marketplace organiser for the trading of shares and other securities. It also is a transaction services provider. It gives companies and investors access to global capital markets.
Deutsche Borse was founded in 1992. The headquarters are in Frankfurt, Germany.

More than 3,200 employees of the exchange serve customers in Europe, the US and Asia. Deutsche Borse has locations in Germany, Luxembourg, Switzerland, Czech Republic and Spain, as well as representative offices in London, Paris, Chicago, New York, Hong Kong, and Dubai.

FWB Frankfurter Wertpapierborse (Frankfurt Stock Exchange), is one of the world's largest trading centers for securities. With a share in turnover of around 90 per cent, it is the largest of the German stock exchanges.

Deutsche Borse AG operates the Frankfurt Stock Exchange.

In 2001, Deutsche B�rse tried to merge with the London Stock Exchange, followed in 2006 by a takeover bid, both rejected by LSE.

7. Borsa Italiana: $1.59 trillion share trades
The Borsa Italiana S.p. A., based in Milan, is Italy's main stock exchange. It was privatised in 1997, and was acquired by the London Stock Exchange in October 2007.

Borsa Italiana has managing responsibility for Italy's derivatives markets and its fixed income market.

Milan's Borsa di Commercio (Commodities Exchange) opened under a vice-royal decree on 16 January 1808 and it operated under public ownership until 1998.

It was sold to a consortium of banks, and operated under a S.p. A. holding company between January 2, 1998 and an all-share takeover by the London Stock Exchange on October 1, 2007.

8. SWX Swiss Exchange: $1.40 trillion share trades
SWX Swiss Exchange is Switzerland's stock exchange, based in Zurich.

The main stock market index for the SWX Swiss Exchange is the SMI. The index consists of the 20 most significant equity-securities based on the free float market capitalisation.

The exchange also trades other securities such as Swiss government bonds and derivatives such as stock options.

The SWX is the first stock exchange in the world to incorporate a fully automated tradingsystem in 1995..

The SWX is the joint owners of the Eurex, world's largest futures and derivatives exchange along with their German partners Deutsche Borse. In July 2004, the Swiss Stock Exchange rejected a proposal of merger from the German company.

In September 2006, the Swiss Market Index crossed its previous all time high set nearly eight years ago.

Source: specials.rediff.com