ISSUE - 109
26th FEBRUARY [SATURDAY]
EDITOR’S DESK
- TANIYA BANERJEE
Someone has rightly said that money won is twice as sweet as money earned. Perhaps this is the reason why we are so keen on wanting to see betting get legalized. With the cricket season back with full vigor and with the world cup back in action huge money is at stake leading to critics saying that its high time that betting in cricket be legalized in India. Get further insight into the matter from our cover story. „The scent of jasmine‟ wondering what this is? Well its not some weak flower that can be trodden under foot I am talking about. It is the name of the revolution that changed the political face of many a countries with its lead. The rulers and the autocrats of the Africa and the Arab world might be seeing their very last days of regime because of this phenomenon. Catch our writers opinion on this and get to know more about the news that is currently rocking the world. Volkswagen „the people‟s car‟ is the brand that we are covering this week. It is the automaker that gave us masterpieces like the beetle. Catch up on the history and growth of this giant in this section for this week. The volatility of the market has been in news for quite sometime. With the market in jitters the investors are all the more wary about making the right choice. Catch all the happenings in our „Focus of the week‟. Along with all of this we bring to you Fast-Track, Quick-Bites for a quick glance of various important news throughout the week. And your favorite market watch section for tracking all the recent ups and downs in the market. I hope all of you have loads of fun reading this issue as well! Cheers, Taniya Banerjee Editor.
EDITOR COVER
1 OPINION 2 BRAND
5 FOCUS 6 MARKET
FAST-TRACK
3 QUICK BITES
7
8 9
THE IBS TIMES
COVER STORY– BETTING IN CRICKET: TIME TO LEGALISE
- RAJAT MONGA
Vishal, a trader in Kolkata is just like any other Indian. He loves watching sports especially cricket and follows it closely. But in the World Cup opener of India vs. Bangladesh match, he was praying for Sachin to get out before he reached a half century. And when Sachin did, Vishal walked away with a neat Rs. 50,000 rupees on an investment of Rs.10,000. Welcome to the world of betting, and since it is banned in India, „illegal betting‟. With the world cup kicking off in style at Dhaka, it is busy time for bookies and punters. The cup has come back to India after a gap of 15 years and the bookies are making the most of it. India is after all the nerve center of illegal betting racket of the world. That all the scandals which have hit cricket since 2000 where someway or the other linked to Indian bookmakers says all about it. The illegal industry in India is enormous. For any cricket game there could be thouWith the world cup kick- sands of bookies that are running illegal operations, trading money and taking bets for the games .Experts estimate the industry to be roughly worth USD ing off in style at Dhaka, 4 billion and it is not limited to international matches. The last it is busy time for bookies edition of IPL sources say, saw bets worth USD 427 million. The biggest draw is India Pakistan matches with at least and punters. Rs.100 crore riding each time the arch rivals go head on. With clear evidence of such a massive industry, is not it time for the government to legalize betting in India. As they say, the best way to regulate something is to legalize it. It is absurd that in a cricket crazy country like India, other forms of betting are allowed and not on cricket. Take an example of betting on horse racing which is legal in India has a market of Rs.1000 crores. There are strong arguments for legalizing it. People have continued betting illegally and there are many suspicions that the money that is made from the illegal gambling is used for even worst activities. The money used for gambling may be used to illegal drug trade or even terrorist activities. With the money going to these sorts of destinations the country has been trying to determine the best way to slow down the illegal betting. Even courts of India gave an answer that surprised many. The court in its observation said that the best saw to deal with this menace is to legalize it and money collected as taxes can be used for the welfare of the society. There are figures to back this logic. Lotteries, which are another kind of gambling is legal in some states. Calculations from an RBI report, 'State Finances - A study of Budget 2002-03,' show that there is a tremendous increase in states' profits from lotteries. The aggregate losses of Rs 71.41 crore (Rs 714.1 million) in 2000-01 turned into whopping profits of Rs 503.21 crore (Rs 5.232 billion) in 2002-03.Lotteries are a major contributor to the revenues of states and when you look at betting in sports industry which is much larger then lotteries, the revenues would be substantial. India will not be the first country to legalize betting in cricket. It is a well regulated legal indusWith the money going to try in western countries. England for example has a huge industry. In 2008, gambling was rethese sorts of destinations sponsible for 3 billion pounds ($4.65 billion) in gross value-added terms and helped create 40,700 equivalent jobs. The industry is well regulated by the Gaming Commission which takes the country has been tryall the major decisions. A gradual legalizing of betting with proper regulation will bring billions of dollars to the legal ing to determine the best economy and will go a long way to tackle the menace of match fixing. By the way, bookies are way to slow down the praying that India does not win the cup as they will loose a lot of money since India is a favorite. So whom are you betting on?! illegal betting.
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FAST-TRACK NEWS
THE IBS TIMES -SAINYAM KUMAR & SHILPA MALHOTRA
Centre lifts ban on onion exports The protests by farmers and exporters finally paid off as the Government lifted the ban on export of onion. The onion prices hit the sky-rocketing Rs.80 per kg two months back but have been coming down since then and hence the ban that was imposed last December was finally called-off. But the Minimum Export Price (M.E.P) has not been decided yet as the competition from Pakistan is getting intense and might hit the Indian exporters as both the countries are fighting for the same market. No hike in taxes in Corporation budget The Chennai Corporate budget for 2011-12 has left the professional and property tax rate untouched. This has come in spite the Government continuing to work for the welfare on the health and education front. One of the highlights of the budget was the launch master health check-up consisting of 18 tests for Rs.500 at Corporation diagnostic centers. The centers are spread across the state and would help bring the much needed reform on the health front. No need for third alliance partner: Sena 22 year old alliance of BJP-Shiv Sena will remain intact and no third party will be included in the alliance was the announcement from Shiv Sena‟s leaders. The rumors of a possible tie-up with Maharashtra Navnirman Sena (MNS) have been doing rounds since last year when they visited BJP headquarters but the rumors have been answered by Ravi Shankar, BJP‟s spokes person, as not concrete in nature. Nilekani to head task force on direct subsidies With an aim to target the subsidies on cooking gas (LPG), kerosene and fertilizers towards the country‟s poor, the Government announced that an inter-ministerial task force will be set up under Unique identification Authority of India headed by Nandan Nilekani. The Government said that a separate task-force was required to ensure better accountability of the whole procedure which is vital during the soaring inflation rates. Antrix-Devas deal annulled The Cabinet Committee on Security, headed by Manmohan Singh, announced that it will not be able to provide the orbit slot in the S-band and thus paved the way towards annulling the agreement signed between Antrix (commercial arm of ISRO) and Devas Multimedia. Antrix was to provide 70 MHz of the scarce S-Band wavelength and Devas was to pay a sum of $ 300 million over the period of 12 years. Tata forms venture with Lockheed Martin Tata Lockheed Martin Aerostructures is the new joint venture company arising out of the JV between Lockheed Martin Corporation and Tata Advanced Systems for manufacturing aero structures for C-13 aircraft. The new facility is export oriented and will help Lockheed a lot in competing with the international competition for C130 brand of planes. Ratan N. Tata, Chairman, Tata Sons, said, “We believe it will raise the level of capability of the aerospace industry in India as also complement the efforts of our Defence Public Sector Undertakings.”
Adani forms venture with Australian firm
Adani Group has signed a MoU with Carbon Energy to form a joint venture. The new entity has been formed with an aim to pursue underground coal gasification (UCG) projects in India. UCG is a process through which the un-worked coal can be converted into combustible gas which can be used for both domestic and industrial purposes. The MoU has been signed for a period of 18 months.
Form 8606 – A tax form distributed by the Internal Revenue Service (IRS) and used by filers who make nondeductible contributions to an IRA. A separate form should be filed for each tax year that nondeductible contributions are made.
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THE IBS TIMES BHEL bags $436 m order in Yemen
Bharat Heavy Electricals Ltd. said that they have bagged $436 m for setting up a gas based power project in Yemen. The project, Marib gas-based power project (Phase II), is financed by the Arab Fund for Economic and Social Development, the Saudi Fund for Development and the Government of Yemen. The company is executing 45contracts in 23 countries totaling 12500 MW. Moreover, Yemen‟s plans to further expand its power capacity gives a lot of opportunities to BHEL.
China does not favor G4 call on UNSC reforms
India, Brazil, Germany and Japan (G4), said that they would take steps to expand the permanent and nonpermanent membership of United Nations Security Council but China called it a “premature step” that would undermine the unity of member states. Although not in favor of the step, China is not expected to out rightly make a move against this step as India is involved in the decision making and China would not take the risk of spoiling its relations with its neighbor.
Switzerland makes it easier to spot overseas tax offenders
Swiss authorities have relaxed the conditions for sharing information with foreign authorities over the secret bank accounts of foreign tax offenders. However, to bring this development into effect, the double-taxation agreements between Swiss Government and other Governments would need to be revised. The Swiss Government has made it clear that the interested authorities should seek specific information rather than trawling through to find „something‟.
Egypt's army suspends constitution, sets 6-month timeline for elections
By dissolving the parliament and setting the timeline of 6 months for the presidential elections, the military seems to have tightened their grip on the Egyptian establishment. Going against the opposition‟s demand of a fresh constitution, the military announced that a committee is being set-up to amend the present constitution. The opposition on the other hand said that the amended constitution should be a temporary and a second committee should be formed to draft a fresh constitution.
Libya crackdown claims 84 lives
The security forces in Libya have killed 84 people by mainly using live ammunitions. With brute force and a blinding media blackout, the regime is trying to put down the revolt, which has already left scores of people dead. Friday was the bloodiest day since the start of the protests as 35 people were gunned down but people say that the build up to Friday had started on Thursday itself as 20 people were killed on that day. The protests in Libya are a result of the events in Egypt resulting in the people‟s protests being agreed upon.
Liverpool held to a goalless draw
English giants, Liverpool, were contained by Czech side Sparta Prague as the former‟s dreams of making a winning return to the European competition were crashed. Liverpool manager, Kenny Dalglish said that the home team could not put pressure on them and 0-0 was a fair result. Liverpool has not had a great domestic season this year and the European silverware seems like the last hope. Liverpool‟s dreams of title have got a major hit after the star striker Fernando Torres moved to Chelsea.
Only 10 teams for 2015 WC: Lorgat
ICC CEO Haroon Lorgat confirmed that 2015 cricket world cup will have only 10 teams as against 14 seen in 2011 WC. The main premise behind this decision is that the 50-over format is a skill based one and should be allowed for the top teams only. The T-20 cup on the other hand will play host to 16 teams as T-20 is considered the best format for making the sports world-wide. The current test playing nations have said that the tier 2 teams are not competent enough to cause any upset in the competition.
Barbell- A bond investment strategy that concentrates holdings in both very short-term and extremely long-term maturities. This is also known as the "dumbbell" or "barbelling."
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THE IBS TIMES
OPINION FORUM– THE SCENT OF JASMINE
- ADHIRAJ SOOD It began with the Jasmine Revolution in Tunisia, went on to Egypt where it was called Sidi Bouzid revolt and now this scent of Jasmine which is rocking Middle East and Africa is also sending jitters across to China. Has Africa and the Arab world finally woken up? Have they realized the need of democracy? Are they ready to govern themselves and not be ruled by RULERS or in today‟s world called AUTOCRATS?
There was also extensive use of social media sites like Twitter and Facebook to bring awareness among the people and to unite them to a common goal i.e. freedom.
These are the questions that have been running in my mind and probably the minds of many young and old for past few days. It was December the 17th, 2010 when a street vendor called Mr. Mohamed Bouazizi woke up and stood in protest against the corruption, poverty, unemployment, human right violation, famine he had been facing since his birth on his beloved motherland. His self-immolation started a chain of unrest across Tunisia. There were unprecedented series of uprisings, protests and demonstrations all over the nation; followed by marches and rallies. There was also extensive use of social media sites like Twitter and Facebook to bring awareness among the people and to unite them to a common goal i.e. freedom. Freedom to live, decide, choose for them, something that had been missing in Tunisia for a very-very long time. And finally, these actions lead to the goal that Tunisians had long awaited for; the 24-year-old rule of Mr. Zine El Abidine Ben Ali ended. With this a new era of revolution began its journey across Africa and the Arab world. This scent of freedom spread across Egypt; with Egyptians putting an end to Mr. Mubarak 30 years old reign, the scent spread further west and east across the other nations in Africa and Asia. Similar turmoil and, increasingly, bloody retaliation from government has been seen in Libya, Bahrain, Yemen, Iran, Jordan and Algeria since the spread. Coming back to my first query i.e. has Africa and Arab world finally woken up? If you would ask me? yes they have. Tired of sitting jobless, with no money, no food and over and above a corrupted government, the people have realized that nothing is going to change that could not be changed in the past three decades. If something has to be changed, than it is them who have to bring about that change.
Revolution Governmental changes Major protests Minor protests Other MENA states Other states
My second doubt was whether they have realized the need for democracy? On this, I am not sure that whether they have. For me they are just sick, tired and torn because of the previous regime. They need a change, but whether that representative is going to be chosen from amongst themselves or some other leader who would rule for three more decades, I am not sure and I do not think either they are. I think they truly do not understand what democracy is, they just want to try another form of leadership, hoping that it would bring about an end to all their woes. The last question, are they ready to govern themselves and not be ruled by RULERS or in today‟s world called AUTOCRATS? Again I am doubtful about this too. Africa was ruled by the Europeans for so many years like their South Asian counterparts, but they could not be institutionalized. They remained the same even after freedom. So, I am not sure whether they are ready for such a huge leap forward. The thing we all need to realize is that if the democratic government that comes into play is not strong enough, these nations can fall into much deeper pit than they are already in. One thing that has really come out good of this revolt is that, Islam as religion was always judged by people as a very violent religion; Muslims were always linked to terrorist activities. But probably this is the time when Islam can shout aloud and say it to the world, how it has attained its goal by non violence. Well! These are my doubts, thought and queries. These questions still remain unanswered for now but not for long. I am sure this revolution would answer all our doubts, and questions. We would definitely see the change in front of our own eyes. We would definitely see history re writing itself.
Overnight Position– Trading positions not closed by the end of the trading day and held overnight. For securities trading, overnight positions expose the investor to risk because a number of events can negatively impact a position while the trading floor is closed.
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THE IBS TIMES
BRAND TRACK- VOLKSWAGEN: THE STORY OF A WINNER!
-SUPRIYA MAMGAIN
Here is a brand which makes for a great story of struggle and triumph in its endeavor to sustain its name in the market. The brand which is known for its reliability came into existence when one of the most controversial figures in the history of mankind gave an approval to its product design. The brand is Volkswagen and the controversial man is Adolf Hitler. The brand name which means „People‟s Car‟ in German was established by Adolf Hitler and Ferdinand Porsche, to provide cost effective automobile to the people of Germany.
The brand has seen various changes over the years be it through its innovative ad campaigns or different marketing campaigns as
Beetle, the small car which has been used several times to save Volkswagen in the market was designed in 1931 and it was introduced in the public in 1938. The brand gained its name in the U.S. market when Beetle with the logo of VW (Volkswagen) was featured as “Herbie the love bug” in a series of family movies by Disney. This lead to an increase in the popularity of Volkswagen in 1964 supported by the advertisement “Think Small” which caught the attention of consumers everywhere, by 1972 over 15 million Beetles had been sold leaving behind the Ford Model T as the most popular design. The brand hit roadblock when in 1979 when it went out of production in the U.S. The brand to boost its sales switched to another tagline called „Fahrvergnugen: It is what makes a car a Volkswagen‟. This tag line being odd and hard to spell was quite memorable though it did not help the brand to impress new customers as the sales remained sluggish in the U.S. It was in 1995 that Volkswagen realized that their young middle-class customers enjoyed driving and being the driver. One of the first TV ads showed two twenty something guys cruising in Golf where the ad ended with a voiceover saying “Introducing the German-engineered Volkswagen Golf. It fits your life. Or your complete lack thereof. On the road of life there are passengers, and there are drivers”, this ended with the new tagline “Volkswagen: Drivers Wanted”. The Volkswagen brand rode smoothly with this tagline as the sales in the year 2000 reached 355,000 units. The brand positioned itself as a smart choice, that it was not just a car but a personal statement. Volkswagen has played with various advertisements with changes made in its taglines and brand positioning. Some critics have pointed that the marketing of VW suffers from lack of consistency as it moves from positioning itself as a „people‟s car‟ to „driver‟s wanted‟. One of the controversial ads of Volkswagen was when VW showed „real life‟ car crashes and the use of airbags to save the life of the driver.
it tracks the changing consumer trends.
Beetle, Fox, Golf, Jetta, Passat, Scirocco, Tiguan, Eos and Phateon are few cars that sell under the brand VW, with each car having variations to its model. Volkswagen has a portfolio of about 150 vehicles worldwide. Therefore, when a brand has so many sub brands, the brand promise should be delivered with each model. This was a concern for the Volkswagen Group as the sales began to slip during the period of 2001-2004 to over 30% due to the problem of poor quality. The warranty claims increased as quality ratings hit the floor. This is the anecdote of a brand which failed to deliver the brand experience in its brand promise. Audi and Skoda are both owned by the Volkswagen Group which make the task of the marketers at VW challenging as they need to avoid the over lapping of the parent brands with the subsidiaries owned by it. In India, the Skoda brand is positioned over Volkswagen brand though in Europe it is exactly opposite. There is the fear of sales cannibalization when a brand needs to battle with its sister brands, therefore strict orders have been given by Volkswagen Group head of design Walter D‟Silva to not to stop on each others toes.
Beetle, the small car which has been used several times to save Volkswagen in the market was designed in 1931 and it was introduced in the public in 1938.
In India, VW has been struggling to become a successful brand even after the launch of Vento. The brand wants to back its marketing philosophy on three core brand values which it relies on worldwide i.e. the brand needs to be innovative, responsible and valuable at all ends. The market strategy for Volkswagen as pointed out by Lutz Kothe, Head Marketing, Volkswagen Group, has been developed keeping in mind that the Indian customer is highly rational when it comes to factors like mileage, price, cost of ownership on the other hand he is emotional. The brand has seen various changes over the years be it through its innovative ad campaigns or different marketing campaigns as it tracks the changing consumer trends. The brand with 500,000 or more fans on Facebook has one of the largest fan communities in the automotive industry. It has made use of social media with the launch of its competition “App my ride”, where it gave prizes to the participants with the best developments of applications for car infotainment systems. Surely Volkswagen is a brand that has been on a high and a low journey, but it has continued to bring smiles to people. It is indeed a nameplate which has delivered value and innovation!
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THE IBS TIMES
QUICK BITES- NEWS THAT CAN’T BE MISSED !
- SUPRIYA MAMGAIN
Big Shots… Google‟s Chief Executive Eric Schmidt feels that Nokia should have chosen Android operating system over Microsoft, as Nokia and Microsoft announced the formation of a broad strategic partnership. Rolls Royce India sales jumped seven times over 2009 or about 400% giving Mr.Otvos,Global Chief Executive of Rolls Royce Motor Cars, reason to beam in the success story of the car company in India. French drugmaker Sanofi-Aventis SA is ready to buy Genzyme Corp with a $20.1 billion cash offer, the deal is the second biggest in the biotech history. Mahindra Satyam plans to sue the former Satyam management and the company‟s auditor PriceWaterhouse for monetary damages, this will help the company to reduce its financial liability arising out of the settlement.
Company Talks…
The Netherlands world cup cricket team will be sponsored by our very own Gujarat-based Dairy giant „Amul‟. Fiat‟s lower than expected sales has led Tata Motors to redraw the distribution plans for the Italian carmaker, which will now have its own independent brand showroom to showcase its products. The world‟s largest drinks maker, Coca-Cola shot its new TV advertising segment with 3-D technology but it will be airing them in 2-D as most of the Japanese homes are still not equipped with 3-D TVs. Barista will launch its loyalty programme, „Bean-O-holic‟, with its aim to acquire new customers and retain the old ones. DLF the realty giant will invest Rs.200 cr to open retail outlets of various brands across the country. Infosys announced its plan for expansion as it inaugurated its first Software Development Block at its Technopark Campus (SEZ) in Kerala‟s capital, Thiruvananthapuram. Moser Baer Forays into information and web security, this new product portfolio will include end-toend data security solutions.
Economy Speaks…
India to seek action by the G20 group of nations against tax havens as PM Manmohan Singh‟s government is under pressure to bring back the funds which are stashed abroad. Agents will lose their licenses if half the policies they sell lapse by March 2014 according to IRDA. Cotton demands remain robust as Cotton futures surged by 26% in the week ended February 3rd. The European Union considers easing import barriers for feed grains and sugar as livestock breeders and food producers in the bloc face shortages and surging prices. Turnover on commodity futures exchange looks to exceed that of stock and index futures since their inception seven years ago, as cumulative turnover on commixes jumps 50% against 7% in stock and index futures this financial year. Sensex jumped 473 pts with the crude oil‟s decline to 10 week low after the Egyptian Mubarak was forced out after three decades. For the first time India will export potatoes to Russia as farmers in Jalandhar get ready to export 5000 tonnes of potato to Russia, which is facing a supply shortage.
The Captains of the Ships...
CEO, Sanofi-Aventis- Mr. Chris Viehbacher Chief Marketing Officer, UTI AMC-Mr. Jaideep Bhattacharya Governor, Bank of England-Mervyn King CIO, Daimler AG-Mr.Hemlut Mahler President&CEO, Adobe Systems-Mr. Shantanu Narayan Chairman, SEBI-Mr. Upendra Kumar Sinha
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THE IBS TIMES
FOCUS OF THE WEEK–BARGAIN BUYING AT THE MARKET!
- SANYA DHAWAN
After closing at an all time high of 21,004.96 on November 5, 2010 the Sensex has been dipping the past three months. The Sensex saw the about 18,000 mark last week. The markets have been falling. But since the past week, things seem to be looking better. And the two main factors are slowing food inflation coupled with weak crude prices. This has greatly boosted the confidence of investors. The food inflation rate slowed to a nine-week low of 11.05% year-on-year in the week ended Feb.5, sharply lower than the 13.07% recorded a week earlier, according to data issued Thursday by the Ministry of Commerce and Industry. The markets were also helped by the fact that international crude oil prices have fallen about 6% since January 31, which should also ease inflationary pressure on the Indian economy. Couple it with low share prices; the conditions of the markets have become better as now a lot of buying activity is being seen as “Bargain Buying”.
Even though the above mentioned macroeconomic factors seem to be encouraging, my estimate is that the sensex will be range bound at about the 18,000 mark in the coming quarter as.
Even though the above mentioned macroeconomic factors seem to be encouraging, my estimate is that the Sensex will be range bound at about the 18,000 mark in the coming quarter as. But, the investors sentiments are dependant highly on the Budget to be announced on February 28. As we all know, where markets are concerned there is no „best time‟ for buying, but right now is obviously a good time to start building a portfolio keeping the above mentioned factors in mind. Since beginning of this year, we have seen a lot of factors which have led to negative sentiments in the market. Foreign institutional investors (FIIs) have pulled out roughly $2.7 billion while domestic institutions have pumped in around $1.7 billion since January 2011. Other factors include ballooning inflation, rising interest rates, pricier commodities and crumbling governance (read current telecom scandal). But it is not all bad. The quarter 3 results are out. And, some of these stocks have corrected in line with the overall market trend, and thus offer significantly cheaper bargains. In fact, 50% of Sensex earnings are accounted for by sectors where earnings downgrades are extremely unlikely from here on: financials, energy and software. The Sensex earnings estimate for 2011-12 is a little over Rs 1,200 a share. On this, markets are currently trading under 15 times, which may not be dirt cheap but certainly does not look overpriced either. For the long-term investor, this offers a reasonable entry point, so again, buying sentiments seem to be warming up. This week‟s data analysis is as followsThe Bombay Stock Exchange's Sensitive Index fell 295 points, or 1.6%, to close at 18211.52. The benchmark had gained 6% in the previous five sessions and ended the week 2.7% higher.
But it’s not all bad. The
On the National Stock Exchange, the 50-stock S&P CNX Nifty fell 87.5 points, or 1.6%, to end at 5458.95.
quarter 3 results are out.
Trading volume on the BSE rose to 37.12 billion rupees ($820 million) from Thursday's 33.03 billion rupees. Gainers lagged decliners 773 to 2,085, while 122 stocks were unchanged.
And, some of these stocks
Of the 30 Sensex constituents, 25 finished lower Friday.
have corrected in line with the overall market trend, and thus offer significantly cheaper bargains.
Some of the performances of the top gainers and losers for the week are as followsTATA MOTORS slipped 3.9% to 1,201.95 rupees on profit-taking after adding more than 9% over the past one week because of robust October-December earnings Banking shares were dragged lower by ICICI Bank, which has the third-highest weight in the Sensex. The stock closed 3.1% lower at 1,025.65 rupees while State Bank of India fell 0.9% to 2,755.3 rupees.
Coattail Investing - An investment strategy in which investors mimic the trades of well-known and historically successful investors.
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THE IBS TIMES MARKET WATCH
- SAINYAM KUMAR
Wow!! The investors, for sure, had a sound sleep last week. The markets picked up through out the week (except for Friday). Don‟t be jealous if you are not an investor, you can still smile because the inflation eased to 11.05% for the first week of February. With the fiscal deficit in the economy on the rise but the inflation showing a down ward trend (although due to the large base effect), it will be interesting to see the steps that would be resorted to in the budget to come out on February 28th. The return of the BSE-Bankex and BSE-Smallcap beating the market seems to have brought the good times back to Indian markets. The corporate news of the week continued to be dominated by the 2G scam as the CBI took the bigshots, Anil Ambani (ADAG), Sanjay Chandra (Unitech) and Prashant Ruia (Essar), into its purview. Investigators are trying to find out any link between these companies and Etisalat DB telecom (earlier known as Swan Telecom). Another projection that can affect the market trend is the sudden increase in the consumption of eggs and chicken. The increase in income has caused a shift to this protein rich diet and by the time the farmers shift to poultry, the lag is expected to lead to a further shortage of food items. With the wholesale price of an egg already hovering around Rs. 2, this can post a major threat to the inflation.
The Movers & Shakers of the Week
SURGES
%Change
DOWNFALLS
%Change
HINDUSTAN COPPER
29.9
JUBILANT LIFESCIENCES
-11.7
GMR INFRA
28.2
SHREE RENUKA SUGARS
-11
EDUCOMP SOLUTIONS
21.9
UNITECH
-10.6
Global Cues: The whole world had a party time during the week. All the key markets of the world witnessed an up trend for the week ending February 19. The “good” news from across the globe was factored in the markets this time. Easing of political tension in Egypt, inflation easing in India, robust corporate earnings in China and the signs of double dip recession in US slowly fading away were the reasons for the town being painted green. .
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THE IBS TIMES MARKET WATCH Sensex
14 February 2011 18,202.20
15 February 2011 18,273.80
16 February 2011 18,300.90
17 February 2011 18,506.82
18 February 2011 18,211.52
Nifty
5,456
5,481
5,481.7
5,546.45
5,458.95
DJIA
12,268.19
12,226.64
12,288.17
12,318.14
12,391.25
HangSeng
23,121.06
22,899.78
23,156.97
23,301.84
23,595.24
FTSE100
6,060.09
6,037.08
6,085.27
6,087.38
6,082.99
Gold ($/oz.)
1,362.00
1,373.30
1,375.60
1,384.60
-
Crude($/bl)
98.24
99
98.68
99.77
-
INR v/s USD
46.3061
45.8113
45.7552
45.7524
45.6122
INR v/s EURO
62.7577
61.8435
61.8038
61.8851
61.9382
* Figures were not available Muriel Siebert - A pioneer for women in the world of finance. Known as "the first woman of finance", Muriel Siebert is the president and founder of Siebert Financial Corp., a holding company which owns and operates a discount brokerage and investment banking business. Muriel Siebert was also the first woman to own a seat on the New York Stock Exchange, and the first woman to serve as superintendent of banks in the state of New York. BUSINESS JARGONS BY– TANIYA BANERJEE
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DisclaimerThis newsletter is just a compilation of news from various sources. Thus, readers are expected to cross-check the facts before relying upon them. Though much care has been taken to present the facts without error, still if errors creep in, necessary feed back will be always welcomed. Editors will not be responsible for any undertakings. The newsletter is not meant for sale and hence, no part of the newsletter should be used without the prior permission of the editorial team.
SourcesThe Economics Times, The Hindu Business Line, Times of India, Business Standard, Financial Ex-press, Financial Times, Business Week, Business World, The Economist, Wall Street Journal, Bloomberg, Reuters, Moneycontrol.com, Vccircle.com, yahoofinance.com, Business Today, India Today, Investopedia.com, Wikipedia.com, DNA, The Deccan Chronicle, The Hindu, The Tele-graph.
EDITORIAL TEAMADHIRAJ SOOD, RAJAT MONGA, SAINYAM KUMAR, SANYA DHAWAN, SHILPA MALHOTRA, SUPRIYA MAMGAIN, TANIYA BANERJEE.
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