Outlook for the day: Nifty (3620) Support-3587/3540/3476 Resistance 3668/3702/3754-VIX-57.02

Market to open flat as Indian Election plays important role; Nifty range can be 3580-3670 breaking the range would be direction. Nifty failing to move above 3670 correction would continue as we have seen a Break-down from Inside day and political uncertainty can put more downside pressure. Going by indication of political parties and their statement only 2major combination could form a Government so fears of unstable government can recede if this becomes true. Coalition politics has taken stream out of Indian reforms started in 1991, last 5years had been wasted on political comprise with no major move toward reforms. If we need better sustained growth we don't need stimulus but continuation of reform in many areas Legal, Labour, Land, Social reform and many more is need of the hour. IRDA has given 15-20days to LIC; chalk-out a plan to reduce its stake where it holds over 10% would have negative impact. 4Wheeler Auto, Telecom and Cement stocks to see profit booking along with politically influenced RELAINCE stocks (RIL, REL.CAP, REL.INFRA, RCOM, RNRL and RPL). US-based Reputation Institute has placed TATA Group 11th among world's most reputed firms, State Bank of India, Infosys Technologies and Larsen & Toubro are among 17 Indian industrial houses that rank among top 50 in a list of the world's 200 most reputable companies. CII Survey: India Mfg Sector Showing Signs of Revival is positive. The uncertainty about elections is always like a hanging sword and one has to keep good cash levels going into results this week. Already we have a list of buys over 10-12 months and at this point of time investing only 30% of the corpus is advisable for safety purposes.

MAH&MAH (Rs.493) this stock has more than doubled from low of Rs.235 (03/12/2008) has reached a high of Rs.571 (04/05/2009) in almost 5months. Now this stock is showing profit booking where a correction till Rs.442 is possible. LIC holding 17.3% stake which it has to bring down by 10% as per IRDA guidelines and strike in its Nashik

L&T's infotech journey has just begun L&T chairman AM Naik continues to look for options and hopes even the 8% stake will fetch him good returns. Naik is ready to take on the world once again not just by buying more companies but with a very aggressive plan to go all out on his core businesses, a glimpse of which he promises will emerge in the next few weeks.

Pipe manufacturer PSL Ltd said it has completed supplying 471 kms of pipes for GAIL's Vijaipur-Dadri-Bawana pipeline project worth Rs 1,928 crore in record 10-month time.

Tata Group has been ranked above global giants like Google, Microsoft, General electric, Toyota, Coca-Cola, Intel and Unilever, in a survey of the world's most reputed firms. The Tata Group, State Bank of India, Infosys Technologies and Larsen & Toubro are among 17 Indian industrial houses that rank among top 50 in a list of the world's 200 most reputable companies. According to the survey undertaken by the US-based Reputation Institute, the Tata Group, with a pulse score of 80.89, ranks 11th among world's most reputed firms.

http://www.domain-b.com/companies/companies_t/tata_group/20090509_tata_group.html

Hindustan Unilever Block deal of 3.33 lakh shares was executed on NSE at Rs 233.25 per share.

Birla Corporation net profit declined 17.80% to Rs 323.51 crore in the year ended March 2009 over the year ended March 2008.

http://www.domain-b.com/finance/banks/20090509_indian_banks.html

A rare change of position by Jupiter, which stargazers say happens once in 30 years, is likely to have a mixed astrological effect on  India. With Jupiter changing its position and entering a new zodiac sign — from Capricorn to Aquarius — astrologers predict good times for Indian economy, but also warn against political turbulence in the days ahead. If astrologers are to be believed, the new government formed after May 16, would not last for more than one-and-a-half years and there are strong indications for another general election in late 2010 or early 2011. http://economictimes.indiatimes.com/articleshow/4507868.cms

ANTI-ASTHMA medicines are expected to cost less than a tenth of their prices now after the regulator, the National Pharmaceutical Pricing Authority (NPPA), brought the bulk drug, doxofylline, under price control. Ranbaxy and Dr Reddy's Laboratories (DRL) are among over a dozen companies that produce these medicines. NPPA found that doxofylline is a derivative of theophylline, which was already under price control. Brands of medicines produced from the bulk drug include Synasma (Ranbaxy), Doxobid (Dr Reddy's), Doxflo (Lupin), Zordox (Cipla) and Doxolin (German Remedies). Prices of all these will drop sharply to just Rs 5.74 per strip of 10 tablets. This is just a fraction of the Rs 78 that Dr Reddy's now charges for Doxobid (400 mg) and Rs 75 Ranbaxy charges for Synasma.

India's finance ministry and the Reserve Bank of India have asked the Securities and Exchange Board of India to examine whether a proposal by Temasek Holdings and Government of Singapore Investment Corp. to raise their holdings in ICICI Bank Ltd. means they would have to make an open offer to buy an additional 20%, the Business Standard reported Monday, citing unnamed sources. The two companies are planning to increase their stakes in ICICI to 10% each, from 8% and 2.3% respectively, the Web site reported. SEBI has yet to make a final decision on the issue, which depends on whether the two entities are treated as one, the Web site reported the sources as saying.

http://www.business-standard.com/india/news/temasek-gic-stake-rise-in-icici-bank-under-scrutiny/357695/

India's pharmaceutical industry is to ask for an upward revision to drug prices and will submit a report to the drug price regulator, the National Pharmaceutical Pricing Authority, the Economic Times reported on its Web site Monday, citing the president of the Indian Drug Manufacturer's Association, Daara Patel. "We have been asked to submit the report by the first week of next month. Once that is done, we expect the government to implement the new pricing order by July," the Web site quoted Patel as saying. Alkem Laboratories, Divis Laboratories and the Indian subsidiary of French major Sanofi Aventis (SAN.FR) are expected to submit the report on the increase in conversion and packaging costs on behalf of the industry, Patel said, the Web site reported. Production costs have increased more than 25% in the last year, the Web site reported a senior executive as saying. http://economictimes.indiatimes.com/News-by-Industry/Pharma-cos-seek-rise-in-drug-prices/articleshow/4507500.cms 

 By ANANDRATHI-A.K.Prabhakar