ISSUE - 139
12th JANUARY [THURSDAY]
SYNOPSIS
- SWATI VERMA
Lets welcome this new year with fresh news about the happenings around the globe. The IBS Times comes again to enlighten you further. Get ready for the scintillating first read of the year. The Lok Pal saga continues and still there are different views that emerged during the debate outside the parliament. Firstly, it is was a weak bill not worth passing in the present form. Secondly, it is better to have some sort of Lokpal even if it is not what it ought to be and lastly the bill will create a monstrous institution that will undermine the Indian democracy, especially as it would affect the functioning of legislators and the Prime Minister. Get further insights on this political hot potato through Cover Story this week. As we step forward into this new year, in our Opinion column the writer tries to give a glimpse of what India is poised at. Be it from the point of view of economic growth forecasts that need to be maintained or taming the inflation, get a comprehensive view of the Indian story from different aspects. This week through our Brand Track column we are discussing about a time-tested friend who has always helped bring comfort and soothe life's little pains, Crocin is more than a pain and fever reliever. It has also been a maternal first line of defense. Get all the details of the growth trajectory of this brand through this column. There is infusion of fresh blood in Tata group with appointment of Cyrus Mystry. We get all the insights into his life and how he could change the fortunes of this group through our Focus column. Moreover we have our regular sections of Fast Track, Quick Bites, Market Watch and a special dose of News @ IBS to give all of you a glimpse of the happenings last week on campus! Cheers!! Swati Verma
SYNOPSIS COVER
1 OPINION 2 BRAND
5 FOCUS 6 NEWS @ IBS
8 9
FAST-TRACK
3 QUICK BITES
7 MARKET
10
THE IBS TIMES
COVER STORY–INDIA AGAINST CORRUPTION-THE POLITICAL PULSE
The failure of a constitutional body like the Election Commission to check the growing scale of corrupt practices has important lessons for the reform of the existing watchdog institutions and the Lokpal.
The legislatures should check corruption but it cannot be the case if the elected are beholden to the corrupt or are themselves corrupt. The problem is political and it cannot be resolved through the technical fixes or by having more laws as they are anyways being circumvented.
- AVLEEN KAUR SARNA
The Lokpal Bill failed to become law in 2011. The Lok Sabha passed it after some acrimony, but the Rajya Sabha did not even vote for it. There were different views that emerged during the debate outside the parliament. Firstly, it is was a weak bill not worth passing in the present form. Secondly, it is better to have some sort of Lokpal even if it is not what it ought to be and lastly that the bill will create a monstrous institution that will undermine Indian democracy, especially as it would affect the functioning of legislators and Prime minister. Many parliamentarians argued that Indian democracy is one of the best in the world, so why disturb it by creating a new institution that would have the powers over the peopleâ€&#x;s representatives. It is evident that politicians often make public statements only to deny them later, showing utter disregard foe public opinion. It was considered that the absence of constitutional status would weaken the Lokpal as it is better than the statutory status to help curb corruption. However, India that consists of several such constitutional bodies like the Comptroller and Auditor General and Central Vigilance Commissioner to check malpractices yet illegality has only grown. Another such constitutional body is the Election Commission, which has announced the steps to curb the role of black money in elections but the politicians have proved cleverer and circumvented it all. The failure of a constitutional body like the Election Commission to check the growing scale of corrupt practices has important lessons for the reform of the existing watchdog institutions and the Lokpal. There are regulatory authorities like the Securities and Exchange Board of India and the Telecom Regulatory Authority to check private business activity but they could not prevent the 2G scam or insider trading in the stock markets. Similarly, the Information Commission oversees the right to information, as increasingly the whistle-blowers are being eliminated and its success has remained limited to the highly literates. Thus in India, neither the independence of functioning nor the constitutional status has helped watchdog institutions to effectively perform their assigned tasks and the reason for the same is that the democracy, the super-watchdog which should deliver the all-round accountability has become weak in India. The ruling party has played havoc with the watchdog institutions so as to control their narrow ends because of which the Lokpal gained momentum. It seems as if the democracy is becoming formalistic. The legislatures should check corruption but it cannot be the case if the elected are beholden to the corrupt or are themselves corrupt. The problem is political and it cannot be resolved through the technical fixes or by having more laws as they are anyways being circumvented. A weak democracy presents a no- win situation as the corrupt gets elected and they misuse their autonomy. Thus, only a conscious public, not rules and law can deliver autonomous and incorruptible legislators. That is why today there is a need for political movements that can change the national consciousness, a task being addressed by the movement against corruption and foe Lokpal.
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FAST-TRACK NEWS
THE IBS TIMES -SHILPI KALWANI
Giffords leads Tucson shooting anniversary remembrance Bells tolled, girls in white dresses danced and Arizona Congresswoman Gabrielle Giffords led a recitation of the Pledge of Allegiance, one year after a shooting spree that claimed six lives and left her gravely wounded. Giffords, still recuperating from the head wound she suffered in the shooting, topped off a daylong series of anniversary tributes and remembrances by attending a candlelight vigil with her husband, retired astronaut Mark Kelly.
Lions Gate nears $400M deal for 'Twilight' maker Lions Gate is close to buying Summit Entertainment, the maker of the teen hit „Twilight‟ series for about $400 million in cash and stock. Talks on a deal are in the late stages and could be finalized this week. Summit also has about $300 million in debt linked to its movies. That debt is expected to be paid off quickly, especially after the last movie in the series, „The Twilight Saga: Breaking Dawn Part 2‟hits theaters in November.
Europe may avoid recession this year, IMF says Europe as a whole may avoid a recession this year and there were reasons to be more upbeat about prospects for the region, South Africa's Business Day newspaper quoted International Monetary Fund head Christine Lagarde as saying. The euro-zone scene has changed massively over the last 18 months or so ,there are reasons to be a little bit more upbeat about the prospects.
BMW aims for top spot in 2012 as luxury sales soar BMW posted record car sales for 2011 and forecast a boom in luxury cars would keep it ahead of rivals this year as the world's number one maker of luxury cars enjoys strong demand from China and the United States. The Munich-based company said on Monday that worldwide sales of BMW, MINI and Rolls-Royce cars rose 14.2 percent to 1.67 million last year.
Stock index futures signal mixed open Stock index futures pointed to a mixed open for equities on Wall Street , with futures for the S&P 500 down 0.1 percent, for the Dow Jones up 0.1 percent and for the Nasdaq 100 up 0.1 percent. The unofficial start of corporate earnings season kicks off on Monday when Alcoa , the largest U.S. producer of aluminum, reports after the bell.
Venezuela's Chavez welcomes ally Ahmadinejad Venezuelan President Hugo Chavez dismissed a U.S. warning to avoid close ties with Iran , denouncing what he said was Washington's attempt to dominate the world as he welcomed the Iranian president to the Latin American nation. Iran's Mahmoud Ahmadinejad arrived at the start of a tour to shore up support from the region's leftist leaders, as tough new Western sanctions aim to isolate the Islamic republic and target its vital oil exports. Savior Plan- This type of plan can fail because of high borrowing costs, which may not be paid back quickly enough to obtain a return on the investment. Also, savior plans do not guarantee that the company will begin to operate efficiently after the buyout.
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THE IBS TIMES Euro sinks to 16-month low The euro fell below $1.28 for the first time in 16 months, as the eurozone debt crisis rolled on. The euro tumbled as low as $1.2698, a level last seen in early September 2010, extending losses after breaching $1.28 earlier this week as US economic data supported the dollar. By 1900 GMT the single currency had rebounded to $1.2792, near Thursday's level, but the malaise remained.
UK's Cameron vows to block EU-wide Tobin tax British Prime Minister David Cameron said on Sunday he would veto a European-wide financial transaction tax unless it was adopted globally, deepening a confrontation with European Union heavyweights France and Germany.
U.S. moves toward legal action against Swiss bank U.S. authorities are moving toward taking legal action against Wegelin & Co, which could lead to an indictment of one of Switzerland's last pure private banks, on charges that it enabled wealthy Americans to evade taxes, according to two persons with knowledge of the case.
Malaysia opposition's Anwar freed of sodomy charge Malaysian opposition leader Anwar Ibrahim's surprising acquittal from sodomy charges is good news not just for him. It is a court-sent gift for the very government he wants to topple. The verdict will pre-empt public outrage that a conviction would have sparked in a likely election year and it also buttresses Prime Minister Najib Razak's claims that he does not interfere with the judiciary and that his promises of ensuring civil liberties are serious.
NASA questions Apollo 13 commander's sale of list NASA is questioning whether Apollo 13 commander James Lovell has the right to sell a 70-page checklist from the flight that includes his handwritten calculations that were crucial in guiding the damaged spacecraft back to Earth. The document was sold by Heritage Auctions in November for more than $388,000, some 15 times its initial list price.
Tebow rules in OT, too: Broncos 29, Steelers 23 Tim Tebow finally flexed his left arm and found one more fantastic finish up his sleeve. After Ben Roethlisberger rallied the Pittsburgh Steelers from a two-touchdown deficit, the Denver Broncos won the overtime coin toss, and on first down, Tebow tucked the ball in Willis McGahee's belly like he'd done all afternoon.
Olympus sues current president, ex-directors Japan's Olympus Corp has sued its current president and three ex-directors for several million dollars in compensation, sources told Reuters, as the company seeks to draw a line under one of the nation's worst accounting scandals. The maker of cameras and medical equipment filed suit against its president, Shuichi Takayama, with the Tokyo district court, along with three former executives identified by investigators as having engineered or helped cover up a $1.7 billion fraud the firms. Icahn Lift- The name given to the rise in stock price that occurs when Carl Icahn begins to purchase shares in a company. The Icahn lift occurs because of Mr. Icahn's reputation for creating value for the shareholders of the companies in which he takes an interest.
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THE IBS TIMES
OPINION FORUM– REGAIN MACRO-ECONOMIC BALANCE BEFORE IT IS TOO LATE
Economically too India’s not doing great either. It stands on the brink of an extended slowdown.
First, there needs to be a very significant correction of macroeconomic policies. Mercifully, as a result of the base effect, inflation should moderate, and this will give the RBI room to man oeuvre rates down.
-ANKIT SHARMA
Beginning this New Year, on an optimistic note was but natural. However, if we give a deeper thought to the disturbed politico-economic landscape, coupled with the global environment crises, it will become hard to maintain this sense of optimism for long. Let's take the political landscape first. We have a government that has completed Year 3 of its five year journey. After eight years of effort in running a country as complex as India, surely some of these leaders must be tired and running out of fresh ideas. I am sure the idealism of making things happen must have long ago been replaced by the enduring slog of simply staying in power. And while power is itself an elixir, there must be those in government who must wistfully be looking at the opposition benches and envying them for their role of simply being able to criticize. Their tails must surely be up, but the wait is still long. Two years is a long time in politics, and while there must be hope, there must also be some anxiety about the long period of time left. After all, where was the euro zone crisis last January? Inflation had not yet reared its ugly head and growth was sizzling at close to 9%. Hence, while the opposition will bay for blood and do its utmost to loosen the grip of the government on power, it knows that it too must bide its considerable time. Meanwhile, the 2G scam will now meander its way through the judicial system. This will be a leisurely affair, some of the accused having already served time, and unless new revelations surface, will slowly begin to fade from public memory. The public too seems to be getting dulled by more fasts, more debates (between the same faces on TV, and in Parliament), more CAG disclosures and more mining scandals. It seems everybody was in on the act all along, something that in any case mostly everybody knows. Economically too India‟s not doing great either. It stands on the brink of an extended slowdown. What could be deduced as a mere possibility at the beginning of last year has now turned into a reality. The Budget forecast of 9% growth now seems hopelessly optimistic, as was the 7% inflation forecast. However, nominal growth will still end up at 16% but with 7% growth and 9% inflation - which was always on the cards even when the Finance Ministry so bravely stood to read out his Budget and the assumptions therein. The real tragedy is around the fiscal deficit and the high interest rate environment. I am not sure whether in the minds of the economic minders of this government, that feeling of pressure is yet being manifest. As with many other things this year, the outcome on economic policy action will depend on the elections in Uttar Pradesh. If the government does better than expected, it might either be emboldened to act with new-found confidence, or it might feel vindicated that reforms don't really matter to their voters. So, it can cut both ways and only time will tell which way we move. So, what can the government do to move things forward this year that it did not do last year? What could be the government's economic agenda for the year? First, there needs to be a very significant correction of macroeconomic policies. Mercifully, as a result of the base effect, inflation should moderate, and this will give the RBI room to man oeuvre rates down. This is absolutely critical. Second, the government must set a much tighter and more believable plan to reduce its fiscal deficit for the next financial year. This year's number is already shot. Third, day-to-day decision-making in the key economic ministries needs to restart so that projects are cleared faster and the investment cycle can move forward again. Fourth, cooperation with state governments is critical and the Centre must take the lead in this and pass long-pending tax reforms such as the goods and services tax and the Direct Taxes Code. Finally, financial sector reforms including making long-term funds, which include FDI, more freely available for infrastructure projects. The reality is that we all know this. The trick continues to be in making it happen. And with a government that looks jaded for now, and a country that at least in the short term is losing confidence, we need change to happen fast, else we will continue our drift into a 6% growth trajectory - which will neither create jobs fast enough, nor will it help close the gap on the developed world. The alarm bells have gone off and now there is simply no time left. Else, 2012 will be another lost year.
Salad Oil Scandal- One of the worst corporate scandals of its time. It occurred when Allied Crude Vegetable Oil Company discovered that banks would make loans secured by its salad oil inventory. When the ships full of salad oil would arrive in the docks, inspectors would test it and confirm that the ship was full of salad oil. that oil floats on water.
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THE IBS TIMES
BRAND TRACK– CROCIN –YOUR PAIN RELIEVING COMPANION
Crocin is more than a pain and fever reliever, it is a time-tested friend that has always helped bring comfort and soothe life's little pains. It has also been a maternal first line of defence!
This worked in the favour of GSK and today we all acknowledge the different Crocin’s for different purposes.
- POOJA DALAL
Crocin is a legacy brand, deep rooted in pharmacological history. Over the decades it has brought relief and a gentle touch of care to perhaps hundreds and millions of people – quickly and safely. For entire generations, Crocin is more than a pain and fever reliever, it is a timetested friend that has always helped bring comfort and soothe life's little pains. It has also been a maternal first line of defence! As infants, the single drop of Crocin syrup she administered brought instant relief; to children it was the spoonful of fruity drink and for adults the magical white pill. At every stage of life there has always been a Crocin to fall back upon! For centuries, the most used cure for fever was quinine. But it‟s scarcity in the 19th century forced the „Pharma Community‟ to search for a synthetic preparation that would work the same way. It led to the discovery of Nacetylpaminophenol – now popularly known as paracetamol. This formula was launched in commercial form in India by Duphar Interfran Limited (now DIL Limited) – a Mumbai-based pharmaceutical firm under the brand name of Crocin. Crocin was sold over the counter (OTC). Thus it was proving to be a major threat to SmithKline Beecham‟s Calpol- a prescription drug also used for fever and pain relief purposes. Thus the brand Crocin was acquired by SmithKline Beecham (now Glaxo Smith Kline) in 1996. DIL had very successfully positioned the brand as a quick cure for fever (antipyretic). But it was an equally effective remedy for minor aches. And because the analgesic segment was much larger than antipyretic market, GSK had to reposition the brand. It took vigorous marketing campaign and a big budget to turn it around. Kapil Dev was signed as the brand ambassador for Crocin-pain relief. Thus GSK laterally expanded the brand to include various variants of simple paracetamol. This included products like Crocin analgesic (that is 500mg paracetamol and caffeine), Crocin-Cold and flu (new drug offered relief from multiple symptoms of colds such as blocked nose, headache, body ache and mild fever), Crocin -pain relief and Crocin quick. While most of these products are sold in tablet form, Crocin is also available in oral liquid dosage form for paediatric use. The paediatric formulation is offered in the form of peppermint-flavoured drops for infants and a strawberry and mixed fruit flavoured suspension for children between the ages of one and twelve. With introduction of these new and innovative drug formulations the form of promotions also made a huge difference. The advertisements included real people from real work situations reaching out for a Crocin to get relief from the pain. This worked in the favour of GSK and today we all acknowledge the different Crocin‟s for different purposes. But brand building is not easy for pharmaceuticals. Diseases mentioned under the Drugs and Magic Remedies (Objectionable Advertisement) Act included fever and thus no advertisement that claims to cure it can be advertised freely. Furthermore not much differentiation is possible where analgesics are concerned. But GSK overcame the challenge by rigorous R&D. It introduced ingredients like caffeine etc were added to its existing formulation. Also there exist two forms of cures for fever. Aspirin based and paracetamol based drugs. Extended use of aspirin based drugs resulted in many side effects such as liver toxicity, gastrointestinal bleeding, gastritis, liver-related problems and dizziness, amongst others. In contrast, paracetamol based drugs were very safe. This was tapped as a USP by Crocin and thus safety and trust became the propositions on which Crocin was based. Thus out of a total of 33 million people who reach out for a paracetamol everyday, 18% choose Crocin! So when faced with a big project or voluminous assignment, take the stress in your stead and don‟t forget to keep your friend-Crocin at hand to keep at bay the pain that comes with gigantic opportunities.
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THE IBS TIMES
QUICK BITES- NEWS THAT CAN’T BE MISSED !
-SWATI VERMA
Big Shots… A R Sekar acting chief New India Assurance NK Nanda appointed acting CMD of NMDC Lombard Odier hires ING Investment Management's Pranay Gupta for first Asia CIO role Grant Thornton India appoints Munesh Khanna as Senior Partner Private lender ING Vysya Bank today appointed Sanjay Shukla as the head for consumer assets and sales; he is a former business head of TCHF
Company Talks… Bajaj Hindustan net profit dips by 48% in FY'11 Lombard Odier hires ING Investment Management's Pranay Gupta for first Asia CIO role Rajeev Agarwal of BSNL to join Trai as Secretary Daiwa‟s local arm appoints new research head Kartik Mehta JP Morgan elevates Namdev Chougule as head of fixed income vertical Reliance invests in TV18 group, gains content Raj Kumar appointed ED of Indian Bank Wipro replaces highest paid executive Martha Helena Thomas Cook dumps directors in leadership clearout MRF net up 70% for year ended Sept 2011 Reliance Industries profit may fall 22% on quarter: Credit Suisse Nifty 50 companies including Infosys Technologies and Bharat Petroleum reversed profit drop due to extraneous factors
Asian Paints: Competition, rising ad spend a negative Rajeev Agarwal of BSNL to join TRAI as Secretary
Economy Speaks… India's real GDP to touch $2.5 trillion by 2021: PHD Chamber PMO to monitor capex plan of state-run firms Labour unions seek higher returns on SDS for better EPF yield Government determined to pass Companies Bill in Budget session: Corporate Affairs Minister M Veerappa Moily Credit Suisse expects 1.25% cut in India interest rates New currency security features to reduce counterfeiting: Pranab Mukherjee Forex reserves dip $646 million in 2011 India's forex reserves fall to $296.688 bn RBI relaxes overseas borrowing guidelines Government committed to infra projects: Prime Minister Manmohan Singh to industry Narendra Modi's Rs 78,000 cr hi-tech city GIFT to try new concepts; may shape future city technologies Tariff, purchasing pact revisions may help government meet power target
The Captains of the Ships… Finance Minister- Pranab Mukherjee Tata group CEO- Cyrus Mystry RBI Governor- D. Subburao
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THE IBS TIMES
FOCUS OF THE WEEK– CYRUS MISTRY- NEW BLOOD IN THE KINGDOM!
- ATREYEE SENGUPTA
2011 bid farewell to many surprises and uprisings but the one puffed-up mystery still remains to be the successor of Ratan Tata, chairman of $83 billion (Approx) Tata Empire. This 43 year old mystery man is none other than the youngest son of construction tycoon Pallonji Shapoorji Mistry who, valued at $8.8 Billion also happens to be the holder of 18.5 per cent stake in Tata Sons, making him the single largest shareholder in India's largest private conglomerate Tata Group. Cyrus Mistry currently the Managing Director of Shapoorji Pallonji Group is not actually a surprise choice but happens to be a perfect fit as told by the industry insiders. HIGHLIGHTS OF HIS ACHIEVEMENTS: Under Cyrus' stewardship, the companies registered many firsts in India – construction of the tallest residential towers, the longest rail bridge, the largest dry dock and the largest affordable housing project
"the appointment of Cyrus P Mistry as deputy chairman of Tata Sons is a good and far-sighted choice. I have been impressed with the quality and caliber of his participation, his astute observations and his humility."
A graduate from Imperial College, UK (1990) in Civil Engineering and a M.Sc. in Management from London Business School (1997).He took his family business to new heights by evolving it from pure construction to executing projects under design & build and EPC (Engineering, Procurement and Construction) delivery methodologies, implementing complex projects in the marine, oil and gas, rail sectors(Delhi Metro). Under Cyrus' stewardship, the companies registered many firsts in India – construction of the tallest residential towers, the longest rail bridge, the largest dry dock and the largest affordable housing project. The group's international construction business is now present in over 10 countries. Cyrus was responsible for building the infrastructure development vertical in the Shapoorji Pallonji Group starting in 1995 with a 106 MW power project in Tamil Nadu followed by the development of the India's largest biotech park near Hyderabad in partnership with the Andhra Pradesh government. The Infrastructure vertical has also developed two large road projects totaling an investment of USD 550 million. Shapoorji Pallonji Group's recent foray into agriculture & bio fuels, with the leasing of 50,000 hectares in Ethiopia, was also overseen by Cyrus P. Mistry. On the personal front Cyrus is described by his friends and colleagues as a soft-spoken, reserved and candid individual who believes in consensus. However his sharp business acumen and meticulous approach makes him more outgoing as most of the time he is seen supervising at the sites rather than sticking out at his cabin. His management style is participative and is known for his perfection. His professional counterparts describe him to be very high on emotional quotient and someone who prefer a level-headed approach towards problem-solving.However this salt-to-software conglomerate Tata group is supposedly hungry for more. Cyrus Mistry is not only expected to prove his critics wrong but also doubly assure his status as the closest associate and confidante of Ratan Tata who has complete confidence in the choice of the selection committee which is evident from his statement, "the appointment of Cyrus P Mistry as deputy chairman of Tata Sons is a good and far-sighted choice. I have been impressed with the quality and caliber of his participation, his astute observations and his humility." Many believe that exactly two decades ago even the successor of J.R.D. Tata was all but unknown and here he is successfully sailing the ship with the same vigor unperturbed by the occasional hailstorms. Ratan Tata is confident that his one year guidance will be enough for Mr. Mistry to take up the challenges ahead. All said and done Mistry might have been an unknown entity in the corporate world till now but what we have seen or heard is just the tip of the ice berg. A real warrior can only be tested in the face of difficult times and Cyrus Mistry is yet to be discovered.
E-Mini -An electronically traded futures contract on the Chicago Mercantile Exchange that represents a portion of the normal futures contracts. E-mini contracts are available on a wide range of indexes such as the Nasdaq 100, S&P 500, S&P MidCap 400 and Russell 2000.
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THE IBS TIMES
NEWS @ IBS– ALL HAPPENINGS IN IBS HYDERABAD!
- KRISHNA SHARMA
th
9 INTERNATIONAL CONFERENCE ON BUSINESS AND FINANCE IBS Hyderabad hosted 9th International Conference on Business and Finance from 6th Jan, 2012 to 7th Jan, 2012 on Business and Finance. The inaugural session was addressed by Dr. J Mahender Reddy, Vice Chancellor, IFHE University, India and Sri Rakesh Sharma, Chief General Manager, State Bank of India. The conference was graced by noted speakers like Prof. Ajay K. Singh (Professor and Bolton-Perella Chair of Finance, Perella Department of Finance, Lehigh University, USA) and Sri Sudip Bandyopadhyay (MD and CEO, Destimoney Securities, Mumbai, India). Apart from this there were highly educated research scholars not only from different states but also from countries like U.S.A. and Germany. The conference ended with the valedictory session comprising the best paper awards given to three awardees along with a cash prize of Rs. 10,000. The vote of thanks was given by Dr. Vighneswara Swamy (Conference Chair -ICBF 2012, IBS-Hyderabad).
KAIZEN -OFERTAS KAIZEN the operations club of IBS Hyderabad came up with what it is best at - the operation concept in the form of game named “OFERTAS”. This game was basically based on Supply Chain Management (SCM). Here the participants were needed to control their price by controlling the SCM. The participants needed to fix the price of their product. The winners of this event were “Shabrish & Sriharsha”.
V.A.P.S - IPL IBS Hyderabad successfully conducted IPL from 6th Jan 2012 to 8th Jan 2012 for all the cricket frenzy people. The boys and girls team were formed with equal enthusiasm and élan. People who were best at it formed their teams and participated at their complete liberty.
INFINITY– DABBANG Once again on 7th Jan, 2012 the entertainment club of IBS Hyderabad Infinity came to relax the students from the study pressure. Entire time hero Salman Khan‟s movie „Dabbang‟ was enjoyed by the student this weekend.
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THE IBS TIMES MARKET WATCH
- KRITIKA SETHI
The first week of 2012 started on an optimistic note, witnessed by a change in investor focus from the European woes to the developments in the US economy. A series of data including lower unemployment rate in the US helped the world markets post considerable gains this week. The Indian stock markets were up by 2.8% during the week. All the sectors ended in the green apart from FMCG which were down marginally by 0.1%. Positive global cues along with lower food inflation number helped boost investor confidence in the market during the week. In fact, food inflation entered into the negative territory for the first time in about 6 years, raising hopes that the Reserve Bank of India could start cutting interest rates soon. Government of India gave a New Year gift to the stock markets this week. On last Sunday, an announcement was made thereby allowing qualified foreign investors (QFI) including overseas individuals to invest directly in Indian stock markets. This has been done with the intention of widening the profile of investors and attracting more foreign funds in the wake of foreign institutional investors (FIIs) money being withdrawn from the markets. The move is also expected to reduce market volatility and deepen the Indian stock markets. Earlier, QFIs were permitted to invest only in mutual find schemes. The foreign nationals could earlier invest into Indian markets through opening accounts with SEBI registered FIIs or through participatory notes. The week saw an all round positive performance. All sectoral indices, except FMCG which was down by 0.1%, ended the week on a positive note. Gains were led by banking up to by 6.4% and capital goods stocks which was up by 5.9%.
Movers and Shakers of the week
SURGES
%Change
DOWNFALLS
%Change
MMTC HINDUSTAN COPPER RCF
73.1 66.2 25.2
STERLING BIOTECH ADANI ENTERGUI STATE
22.3 14.3 9.8
News from the automobile sector, Tata Motors is planning to expand its operations in Myanmar. With Myanmar expected to go for political reforms thereby attracting more investments, Tata Motors does not want to miss the opportunity. Although the inflation has started showing signs of slowdown, we will have to wait for RBI to start reducing interest rates. In its recent policy review, the RBI has indicated chances of rate cuts in future but it will be quite a while before it actually happens and gets reflected in corporate financial statements. Automobile company Mahindra & Mahindra Ltd. (M&M) is likely to launch six new models by the end of the next fiscal. This would include a compact sports utility vehicle (SUV) and a shorter version of its sedan Verito. It will venture into the eco-friendly technology segment through the launch of electric car NXR. M&M will introduce 49 tonne truck Navistar and a van based on the platform of commercial vehicle Maxximo too. Three of these products will be launched by the end of 2012.
Global cues Amongst the other world markets, the investor sentiments were optimistic. Barring the markets in China which were down by 0.5%, Japan by 0.8% and France down by 0.7%, nearly all the global stock markets ended the week higher from where they started.
16,000.00 15,900.00
S E N S E X
12500
15,939.36
15,882.64
15,800.00
12,418.42
15,700.00
15,857.08
15,867.73
12400 12,415.70
12,397.38
12350 12,359.92
15,600.00
15,500.00 15,400.00
12450
12300
12250 15,517.92
12200
15,300.00
12150
15,200.00
12100
15,100.00
12050
15,000.00
12000 02-Jan-12
03-Jan-12
04-Jan-12
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06-Jan-12
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D J I A
THE IBS TIMES MARKET WATCH JANUARY 72NOVEMBER 2012 2011
3 JANUARY 8 NOVEMBER 2012 2011
4 JANUARY 9 NOVEMBER 2012 2011
JANUARY 10 5NOVEMBER 2012 2011
JANUARY 11 6NOVEMBER 2012 2011
Sensex Sensex
15,517.92 -
15,939.36 17569.53
15,882.64 17362.10
15,857.08 -
15,867.73
Nifty Nifty
4,636.75 -
4,765.30 5289.35
4,749.65 5221.05
4,749.95 -
4,754.10 5168.85
DJIA DJIA
12068.39
12,397.38 12170.18
12,418.42 11780.94
12,415.70 11893.79
12,359.92 12153.68
HangSeng HangSeng
19677.89
18,877.41 19678.47
18,727.31 20014.43
18,813.41 18963.89
18,593.06 19137.17
FTSE100 FTSE100
5510.82
5,699.91 5567.34
5,668.45 5460.38
5,624.26 5444.82
5,649.68 5545.38
Gold Gold($/oz.) ($/oz.)
1586.70 1791.90
1598.20 1789
1613.90 1760.40
1624 1766.80
1616.60 1788.5
Crude($/bl) Crude($/bl)
111.08
109.40 113.79
111.73 113.13
111.67
113.76
INR INRv/s v/sUSD USD
53.80 49.04
53.87 49.40
54.02 49.59
53.92 50.16
53.68 50.75
INR INR EURO EURO
69.69 67.59
69.68 67.99
70.24 68.31
70.11 68.81
69.10 68.86
17192.82
v/s v/s
EAFE Index-An index created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia. This international index has been in existence for more than 30 years.
BUSINESS JARGONS BY – SHILPI KALWANI
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EDITORIAL TEAMANKIT SHARMA,ATREYEE SENGUPTA ,AVLEEN KAUR SARNA, DEVANSHI PODDAR, KRITIKA SETHI, KRISHNA SHARMA,POOJA DALAL, SHILPI KALWANI, SWATI VERMA.
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