The IBS TIMES 136th Issue by Stock Yard

ISSUE - 136

14th DECEMBER [WEDNESDAY]

SYNOPSIS

- KRITIKA SETHI

The IBS Times comes again this week to enrich you with the happenings across the globe. We try to touch on issues affecting people globally; bringing in our own perspectives to make you think in an alternative context. Gear up for yet another scintillating read. The scenario we all feared is upon us. The Government seems to have buckled down under the pressure of political groups who just aim to garner votes by „sympathizing‟ with the farmers and the kinara shops, not looking at the wider picture. How this would affect our economic growth and the opportunities we thought we would leap at, is the issue we discuss through the Cover Story this week. Carol Ann Bartz is the leading lady of this week‟s Focus. This woman of substance entered in a seemingly male dominated area and made her presence felt, loud and clear. We try to capture her journey from Autodesk to Yahoo! that made her who she is today…‟The Turnaround Queen‟ Burberry is the next fashion destination we visit this week. This English brand can be spotted around the globe and is a major participant at almost all leading fashion shows. Starting from being an English casual cult to football firms to an uber cool fashion brand, we trace the journey of Burberry in Brand Track this week. Human Rights is what we bring to you this week. Human Rights are being abused day in and day out across the world, but we try to focus on India this week touching on aspects like J&K, the seven sisters, Child Abuse and the self proclaimed protectionists of the Indian Culture through the Opinion Forum this week. 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!

Happy Reading! Cheers Kritika Sethi

COVER

1 OPINION 2 BRAND

5 FOCUS 6 NEWS @ IBS

8 9

FAST-TRACK

3 QUICK BITES

7 MARKET

SYNOPSIS

THE IBS TIMES

COVER STORY– GOVERNMENT BOWS TO WHOLESALE POLITICS, PUTS RETAIL FDI ON HOLD!!

-AVLEEN KAUR

In a move to build consensus among the key allies, the government has decided to put on hold its policy to open up the country‟s 470 billion dollar retail industry to foreign supermarkets. It was bowing to the intense pressure from within and outside that government announced „suspension‟ of its decision, backtracking one of its boldest reforms in years. Although, the decision to allow FDI in retail was taken by the union cabinet on November 24 but since the very next day the opposition has not allowed the Parliament to function by demanding a discussion on the issue under a rule that entails voting. This move to allow foreign investments by Wal- Mart and other supermarket giants in India‟s retail industry was the first big reform to be announced since the government began its second term in 2009. Two years down the line, the decision to put it on hold came in less than two weeks after it was announced , the

This move to allow foreign investments by Wal - Mart and other supermarket giants in India’s retail industry was the first big reform to be announced since the government began its second term in 2009

retreat that is another nail in the coffin of Prime Minister Manmohan Singh‟s economic reform programme just as Asia‟s third largest economy suffers growth slowdown and falling investment. Apart from that not only has the government failed to sell the reforms to the opposition, but it has not been able to convince its allies also. Since the support of parties such as Trinamool Congress and the National congress party (NCP) is must for its survival, the government is scared of pressing ahead the initiatives they don‟t back. Putting that aside, the leader of the opposition Sushma Swaraj held that „Government has bowed to the wishes of the people. To bow before the will of the people is not defeat‟. Now the matter of concern is that although the government‟s decision to hold back FDI in retail may have bought peace with the opposition and various allies, but voices of disapproval have started coming in from India Inc. The Corporate India has given a thumbs down to this decision as they are frustrated by the policy paralysis as allowing foreign direct investments into a retail industry dominated by small shops was trumpeted by congress as a policy that would help ease stubbornly high inflation, improve supply chain infrastructure and create millions of jobs. The business leaders have already rounded on the government for flip-flopping. This decision has certainly delayed creating new economic activity and was to the detriment of the vast majority, as per the belief of many. While on the other side, the foreign players in the sector were waiting for a political consensus to be arrived soon in the interest of the consumers and farmers as a lot of them are coming out in support of this. Disagreeing with all

The government has stumbled amid corruption scandals this year and has not passed a single major reform bill. The economy grew at its weakest pace in more than two years, revealing the toll that stubborn inflation, rising interest rates and crisis hit global capital markets

such things, the opponents of foreign investments in retail chain claim that it would jeopardize the livelihoods of farmers and traders by allowing entry of foreign chains like Wal-Mart, Tesco and Carrefour SA into India. In fact, the government still argued that it would bring down prices and create millions of new jobs. However, now moving ahead with these issues the silver lining is that the opposition will now stop disrupting parliament after two weeks of adjournment, allowing the government to pass other key reforms. The government has stumbled amid corruption scandals this year and has not passed a single major reform bill. The economy grew at its weakest pace in more than two years, revealing the toll that stubborn inflation, rising interest rates and crisis hit global capital markets. But the quick about turn and obvious disarray among government ministers has raised questions as to who is running India.

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FAST-TRACK NEWS

THE IBS TIMES -DEVANSHI PODDAR

Kingfisher, AI accounts frozen over Rs 220crore service tax dues Kingfisher airlines and Air India, within a span of a month have got their accounts frozen twice now for non-payment of service tax though collected from the passengers. Air India being the privileged one of the two, because it is a PSU, is enjoying the leverage of not being put through the cash and carry. However, Kingfisher pays on a daily basis in Mumbai and Delhi to operate the severely truncated flight schedule this winter. India, China agree on steps to cool border tension, bolster military CBMs The two sides, led by defense secretary Shashikant Sharma and PLA's deputy chief of general staff General Ma Xiaotian, had a three hour long bilateral annual defense dialogue (AAD), and agreed that the two large armies would ensure peace and tranquility till the resolution of the long-fostering boundary reached a result. Team Anna urges people to protest 'weak' Lokpal bill Team Anna is not happy with the Lokpal Bill passed on Friday and urge that people should join them in the protest. According to them there have not been many changes made and moreover they cannot trust a Lokpal which does not have any independent investigating body and has to depend on the government and many more criticisms. According to them this will only lead to increase in corruption rather than decreasing it. Pakistan ties in a mess, admits US Pakistan-US ties became strained following the May 2 commando raid to kill Al Qaeda leader Osama bin Laden that worsened after the NATO airstrikes on two Pakistan Army check posts left 24 soldiers dead. The Council‟s Centre for Preventive Actions took out a list of possible conflicts that U.S might face in the new year oil crisis and euro crisis to name a few from the list. Virender Sehwag hits double century in ODIs On Thursday, Virender Sehwag played an outstanding inning of 219 runs in just 149 balls and became the only second player, after Sachin Tendulkar, to get a double century in ODI‟s. He also broke the outstanding record of 200 of Sachin Tendulkar. India won the match and lead the series 3-1 against West Indies. DB Realty names Vinod Goenka as Executive Chairman. DB Realty Ltd. has named Vinod Goenka as Executive Chairman and managing director, and Shahid Balwa as Vice Chairman and Managing Director from Saturday, weeks after they were granted bail on charges over telecom licences . All accused in the telecom case have been denied of any wrong doing. RBI will intervene in forex market only on volatility: Government Indian analysts are worried about the depreciation of the rupee against dollar and worried the pressure on the inflation signaling a loss of confidence and also widen the current account deficit. Though some experts believe that the volatility is due to the global currency market and has got very little to do with India. Indian government had for the first time intervened in the forex market on September, 2011 and would do so again on volatility concerns .

Open Ended Investment Companies (OEICs) - Have taken over from their older cousins, unit trusts, as the UK‟s most widely held mutual funds. Their pricing is easier to understand than unit trusts as they only have one price.

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THE IBS TIMES Nabard sanctions Rs 615 crore loan to Maharashtra Government. National Agricultural Bank for Rural Development (Nabard) has sanctioned Rs 615.33 crore to Government of Maharashtra, out of its Rural Infrastructure Development Fund (RIDF) for development of roads and bridges, minor irrigation, Kharland projects and construction of Anganwadi centres projects in the state. After this sanction, the total amount which has been given to Maharashtra government becomes 615 crores. Buyback of shares by PSUs an option for disinvestment: Gujral With less than 4 months left in the current fiscal, government is looking out for new and innovative ways of disinvestment in public sector with buyback being one of the options. Though the government had tried to disinvest in the last fiscal with a target of 40,000 crore it could reach only 22,144 Crores through it. Under the buyback, Government can raise money by selling the equity in the company to the PSU‟s itself. Vedanta-Cairn deal biggest ever for Indian energy sector Vedanata group led by Anil Agrawal acquired Cairn India for USD 8.6 billion making it the biggest Mergers andAcquisition deal in the history of Indian energy sector. Vedanata paid USD 8.6 billion for 58.5% stake in Cairne India including 20% through its Sesa Goa unit. This deal would give Vedanata the control of nation‟s biggest onshore oilfield in Rajasthan and 9 other properties in India and only one in Sri Lanka were a gas discovery was made recently. China may add stimulus as exports weaken Chinese Premier Wen Jiabao and officials may be encouraged to add more stimulus while mapping economic policies for 2012 as a shrinking trade surplus shows Europe‟s debt crisis hitting. Government may be prompted by the decline in the surplus and the flow of capital out of the country to keep cutting banks‟ reserves requirements to sustain growth. Commodity wrap: gold again emerges as safest bet As EU leaders fail to come down on a fiscal plan., commodities fail to hold on to previous gains. The falling demand for commodities and the ECB‟s interest rate cuts signaled that bond purchases are less likely , thereby strengthening the investments in gold. EU to cut aid to 19 emerging countries from China to Brazil The European Commission on 7th December decided that from 2014 they will be providing aid to only 19 emerging countries which will include – China, India and Brazil among them. This decision was made to strengthen the relations with emerging countries with a focus of the aid on the poorest countries between 2014-2020. Carbon Credit prices may go up after deal on Kyoto extension The uncertainty of the extension of Kyoto was one of the reason for the prices of the carbon credit to fall to as low as euro 5 per unit along with the euro crisis being the main reason for it. The continuation of the same protocol i.e. Kyoto protocol for another five years can result in the price rise of the credits, thus securing the long-term fundamentals of the Indian Greenhouse Gas emission reduction market.

Pari Pasu - Used in financial parlance to denote any set of securities or contracts that have equal rights to payment. New shares are generally issued pari pasu to carry the same rights and obligations as the company‟s existing shares.

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THE IBS TIMES

OPINION FORUM– DAY OF RIGHT OR DECADE OF VIOLATION?

-SHILPI KALWANI

“Know your rights in order to fight for it.”- rightly quoted by Justice G.P. Mathur, Member, NHRC (National Human Rights Commission) at New Delhi's Teenmurti Bhavan on Saturday to observe World Human Rights Day (10th December, 2011). It was on this day in 1948, that the General Assembly of United Nations had adopted the Universal Declaration of Human Rights. Despite an overarching commitment of respecting citizens' freedom to express their views, peacefully protest, and form their own organizations, the Indian government lacks the will and capacity to implement many laws and policies designed to ensure the protection of rights. On 28 July ,2011, Farrakh Bukhari, an 18-year-old student of mass communication, in Kreri, Baramulla district of North Kashmir, stepped out in the market and some kind of protest was going on. Fourteen days later his body was found dumped outside the Chaura police station. While India claims that its national and state human rights commission ensures protection of human rights, these commissions are not fully independent-their members and chairpersons are appointed by the government-they lack sufficient resources to conduct their own investigations and they are not empowered to investigate violations by the army.

Human Rights v/s J&K

Kashmiris believe that many of the thousands disappeared’ over the last two decades were dumped into unmarked graves. The government has ignored calls for an independent investigation by human rights group to determine the fate of the victims.

Kashmiris believe that many of the thousands „disappeared‟ over the last two decades were dumped into unmarked graves. The government has ignored calls for an independent investigation by human rights group to determine the fate of the victims. Widespread protests erupted in Jammu and Kashmir after a decision of the state government, in May 2008, to transfer forest land to a Hindu trust to build temporary shelters for them during an annual Hindu pilgrimage called „Amarnath Yatra.‟

Impunity at Manipur and Other Northeastern States Violence has continued in the Northeast, where over 300 people, including nearly a hundred civilians, were killed in the armed conflict in 2008. A series of bomb attacks in Guwahati and other cities in Assam killed 84 people injuring many.

Fighting Naxalites or Initiating Child Abuse ? Maoist armed groups, also called Naxalites, continue to carry out bombings, abductions, beatings, and killings in several Indian states including Chhattisgarh. The Naxalites claim to be fighting for the rights of the marginalized tribal groups, Dalits, and the poor, but have been responsible for forced recruitment and severe punishment of those who refuse to submit to demands for cash, shelter, and protection. In Chhattisgarh, government security forces and state-government-backed vigilantes called the Salwa Judum are responsible for attacking, killing, and forcibly displacing tens of thousands of people in armed operations against Maoist rebels. The Naxalites admit that they have used children as young as 12 in some armed operations where as the Salwa Judum have included children in their violent attacks as part of their anti-Naxalite campaign.

Protection- from evil or the protectors? Since August 2008, supporters of the Hindu militant groups Vishwa Hinud Parishad and Bajrang Dal in Orissa have attacked Christians, many of the tribal minorities or Dalits. Also in 2002, there was a failure to secure justice for the Gujarat riots-in which more than 2,000 Muslims were killed following an attack on a train carrying Hindu pilgrims-has fueled anger amongst Muslims. Government had also launched a scheme four years ago to provide universal education, but millions of children in India still have no access to education. As well as in October 2008, police in Bangalore arrested five transgender women-and then detained 37 human rights defenders and activists who came to assist them, beating and sexually abusing some of them.

India & Global Human Rights Issues

Violence has continued in the northeast, where over 300 people, including nearly a hundred civilians, were killed in the armed conflict in 2008. A series of bomb attacks in Guwahati and other cities in Assam on October 30, 2008, killed 84 people and injured hundreds.

India got a waiver from the 45-nation Nuclear Suppliers Group to lift restrictions on nuclear commerce in 2008. In the same year several key international partners were disappointed by India's refusal to take a strong public position against ongoing human rights violations in Burma and Sri Lanka. India has routinely ignored recommendations from UN human rights bodies including, UN committees on the elimination of racial discrimination and discrimination against women.

Who is responsible ? While law enforcement is needed to end the violence perpetrated by militants, India continues to provide extraordinary powers to its troops and grants them immunity from prosecution when they abuse those powers. Government stressing on awareness of rights overlooks the issue of violation of rights which needs to be dealt first. If the protectors of law are trying to distort it then - where should a victim, denied of his rights, go for redressal? The answer to it will have to be framed by the, so called, Human Rights Authorities as well as the Indian Government if at all solution to such issues is desirable.

Monoline Insurers - Insurance companies that exist solely to guarantee the repayment of a bond if the issuer– the government or a corporation, defaults.

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THE IBS TIMES

BRAND TRACK– BURBERRY:UBER LUXURY UBER INDULGENCE !

- AKSHAY AGRAWAL

Ever since I started receiving life threatening calls this past weekend from the number crazy, financial and economic fanatics already distressed by the gloomy Economy, The IBS Times instantly strengthened their resolution, not to let me preach anymore about the numerous nuances and advocacies that I so painstakingly (almost grimacing) deduced for better decision making (and of course some adulation that I sadistically seek). So the canny columnist in me briskly turned its focus to something very vital for the entire masculine population, something that they all yearn for, I am sure at least a handful of my readers would have guessed it (please say yes!) Attention from the „weaker‟ „sex‟, yes simply put female attention. Before I initiate another ruckus here, by „weaker‟ I was referring to their inherent ability to make us go „weak‟ in the knees.

Burberry Group PLC is a British luxury fashion house manufacturing clothing, fragrance, and fashion) accessories.

Dedicating this column to them and with a feeble hope (of earning some of their adulation this time at least), I resolve to write about a brand that has been personifying Luxury ever since it was established in 1856, Burberry. Beginning with the basics, Burberry Group PLC is a British luxury fashion house manufacturing clothing, fragrance, and fashion) accessories. Its distinctive tartan pattern has become one of the most copied (read sought after) trademarks. Most morons like me who had until now thought that Burberry was something to do with an exorbitantly priced fragrance, take this, it is most famous for its iconic „trench coat‟ which was invented by founder Thomas Burberry. It has now come out of this trench and majestically evolved into one with endless branded stores and franchisees around the world and also sells through concessions in third-party stores. HM Queen Elizabeth II and HRH the Prince of Wales have granted the company Royal Warrants. Think that is enough evidence? According to a recent survey by Business Weekly it was pegged as the 98 th most valuable brand in the world. From its roots with a store in Basingstoke, England under a former draper‟s apprentice introduced „gabardine‟ a hardwearing, water resistant yet breathable fabric. In 1891 Burberry opened shop in the Haymarket, London which until recently was the iconic corporate headquarters, now shifted to just behind the Houses of the Parliament, Westminster (London). In 1911, they became the outfitters for Roald Amundsen, first man to reach the South Pole; Ernest Shackelton who crossed Antarctica in 1914.Burberry also famously designed aviation garments. Burberry was as independent company until 1955, when it was taken over by Great Universal Stores. Thus Burberry Plc was initially floated on the London Stock Exchange in July 2002. GUS divested its remaining interest in Burberry in December 2005.

During the 1970s, the brand became popular with the British casual cult, leading to its being associated with members of football firms by the 1990s the following decade; such a shift in a brand's clientele exemplifies tremendous drift. Burberry has attempted to rebrand itself with advertisements in GQ, Esquire, Vogue, Tattler and Harper's Bazaar, and is well-known for using British celebrities in its advertising, including models Kate Moss, Agyness Deyn, Jourdan Dunn and Lily Donaldson, singer George Craig, actress Emma Watson, who was named the face of Burberry's 2009 Fall/Winter campaign and the cover model for the 2010 Spring/Summer campaign and Rosie Huntington-Whitely, who was unveiled as the face of Burberry's newest fragrance, Burberry Body, in July 2011. Guys! Do not be disheartened. Answer a simple question for me. Whenever I think of luxury why does always a bottle of Uncle Jack come to my mind?

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THE IBS TIMES

QUICK BITES- NEWS THAT CAN’T BE MISSED !

- ANKIT SHARMA

Big Shots… Mukul Deoras to head Colgate-Palmolive operations in Asia-Pacific. Moody‟s downgrades three French banks. Mikhail Prokhorov to run in next year‟s presidential election against Putin. India, US discuss ways to end differences on nuke liability law. Rajnikanth turned 62 on Monday.

Company Talks… GenNext rises at Kirloskar Brothers; Alok Kirloskar to be appointed MD of SPP Pumps . Tube Investments eyes Rs.500 crore revenue. ZTE plans to put Indians in key leadership positions to remove trust deficit. India no longer a preferred destination for MNCs: Microsoft . Vedanta-Cairn deal biggest ever for Indian energy sector. Maharatna companies allocated Rs 1,100 crore for CSR in first 6 months. Ranbaxy: Less aggressive, more Japanese and more healthy after 3 years under Japan's Daiichi. India Inc more tolerant to economic crimes than global peers: Pricewaterhouse-Coopers. Wipro completes decade of operations in Saudi Arabia. Lone Pine, Goldman executives plan $1 billion Asia hedge fund: Sources . Crompton Greaves undeterred by costs, competition, says CEO Laurent Demortier. French firm Groupe SEB in talks to acquire majority in Maharaja Whiteline. Ignite Mudra heading back to parent in Mudra Group.

Economy Speaks… Nabard sanctions Rs 615 crore loan to Maharashtra government. India advocates growth promoting policies for economic recovery. Indian Government cuts growth forecast between 7.25% & 7.75%; investors cut exposure. Financial leadership of the west has caused global crisis: Duvvuri Subbarao, RBI governor. Excise duty collection falls by 6.5% . Meeting Rs 40,000-crore disinvestment target a stiff task: Indian Government. Buyback of shares by PSUs an option for disinvestment: Gujral. Rs 68,994 crore paid as I-T refunds till Nov this year: Indian Government. AAR ruling sparks off debate on tax treatment in cross-border deals. SC in favour of allowing export of Endosulfan.

The Captains of the Ships… DB Realty Executive Chairman – Vinod Goenka Ranbaxy Data reliability officer – Manjeet Bindra RIM India head – Sunil Dutt

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THE IBS TIMES

FOCUS OF THE WEEK–THE SILICON VALLEY DYNAMO...

-POOJA DALAL

Lady bosses have rarely reigned in the Silicon Valley. And Carol Ann Bartz has always been among the „One of its kind‟ in the corporate US. One rare „Turnaround Queen‟, One to step down after becoming completely at home, One no nonsense woman in a man‟s industry, and maybe the only CEO to get fired on phone! After losing her mother at an early age, Carol was brought up by her grandmother in Wisconsin. She grew up to be a tough lady and a good leader. Being the cheerleader in high school, she realised that she was most needed when things (game/business) were going bad. She graduated from University of Wisconsin with a degree in Computer Science in 1971. From then on there was no looking back. She started her career with a sales job at 3M, but quickly ascended the corporate hierarchy and was sales manager in no time. Later she went on to take a job in the booming IT industry (at Digital Equipment Corporation and subsequently Sun Microsystems).

In 1992, she was chosen as the change leader by Autodesk. Challenge of turning around the laid back company was tough enough, when Carol was diagnosed with breast cancer. Only a month of a leave later, she was again behind the wheel at Autodesk. She made it her primary concern to lay a more focused business strategy for Autodesk, and as a result Autodesk ended up developing computer aided design software for builders and architects. Bartz then took Autodesk into new avenues, like mapping software, movie special effects and software catalogs for infrastructure such as roads and bridges. That season of change end showed significant change in the way Autodesk looked on stock exchange and balance sheet (positively). Revenues started growing and so did Carol‟s popularity. After 14 years of service, Carol stepped down as the CEO; giving way to a leader she had moulded herself for succession. To Carol, learning was the most important part of the job. So if the job was not teaching you anything new, it was time to move on. Three years later in 2009, Yahoo board selected her as a captain to steer the sinking ship out of the stagnant waters. The company faced shrinking revenues, fierce competition (from Google, Facebook etc) and complacency. Carol had to take certain measures that were perceived to be harsh. She lay off employees, called for streamlining of businesses and empowered employees with a powerful weapon- „Fail, fast-forward‟ (3F strategy was formed by her originally for Autodesk). It was a strategy that came out of Carol‟s own philosophy that mistakes were just natural. But when you make them, you should learn from them and move forward quickly. For Yahoo this meant more frequent market releases of innovative web services and products. Wall street journal described her Yahoo image as, „Sometimes feared, but always revered‟. However aggressive these measures might have been, the revenues refused to budge and even when Carol had more than a year

A mother of three, carol has always given time to her family. But she is an ardent non-believer of work-life balance! “Why choose when you can have it all!” According to her, balance is perfection and perfection is not life

of contract left, Yahoo board fired her on 6 Sept 2011. A mother of three, carol has always given time to her family. But she is an ardent non-believer of work-life balance! “Why choose when you can have it all!” According to her, balance is perfection and perfection is not life. “It‟s about catching the ball just before it hits the floor”. And she extends her enthusiasm to many others, especially girls by encouraging them to take up math and computers, and conquer the male dominated IT regime. For her dedication to computer sciences she was made a member of United States President's Council of Advisors on Science and Technology. Having played most of her roles perfectly, Bartz has proved many a tradition wrong. She showed the world that girls can do good math, operate not only computers but also run giant software corporations and even a 60 year old can lead the development of technology to be used by teenagers! Kudos to Carol Bartz and all things we previously thought impossible!

CAT Bonds - Catastrophe bonds, also known as CAT Bonds, are a form of securitization used to transfer natural catastrophe risk to the capital markets. Such bonds usually have a volume of $100 each. Most CAT Bonds are issued by the special purpose reinsurance companies incorporated in the Cayman Islands, Bermuda or Ireland and are rated by the independent agency.

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THE IBS TIMES

NEWS @ IBS– ALL HAPPENINGS IN IBS HYDERABAD!

- POOJA DALAL

As yet another week full of case studies and lectures passed by, IBSites had a lot to look forward in the weekend. There was a perfect blend of knowledge imparting events and adrenaline rush instilling activities. Amusement with learning was accomplished and the students were ready to bravely take on yet another week of management mantras.

MONEY MATTERS CLUB- GUEST LECTURE ON FINANCIAL RISK Money Matters Club organised a guest lecture on 8 December 2011 by Mr Praveen Kumar who is a portfolio manager with Kotak Securities. The lecture was very enriching experience for the participants and gave practical insights into trading and how to manage the risk of a portfolio in these turbulent times. On the whole, the lecture was a huge success in delivering the perfect knowledge about the financial risks.

STOCKYARD- ENVISIONING INDIA 2030 The finance club of IBS Hyderabad, Stockyard organised a management discussion on Envisioning the future of our great nation. It discussed some of the most important macro economic factors like Demographic dividend, Infrastructure and Monitory and fiscal policies of the Government and developed a perspective of how best our countries landscape can be or what worst could happen if anything goes off beam. It gave a reasonable picture of duties all the budding managers need to perform so that India 2030 could be a dream to live in.

MACON-LIVE SATTA DARBAR Vegas was virtually simulated in this betting game presented by the Entrepreneurship club. It taught the participants what was the risk that could be taken safely and intelligently to reach a profitable end. In the end, two teams emerged victorious. The winners were Naman Pal & Bhavneet Kaur – Bidders RCB and Danish Patel & Bharti Choudhary – Betters „Sattebaaz‟

PRAKRITI- SNAKE SHOW Prakriti club in association with the Snake cell of Andhra Pradesh organised a snake show on 9 Dec ‟11.

It was a good change from the curriculum in addition to being informative. Many varieties of snakes were displayed to an awestruck audience who finally started acknowledging the beauty of the deadly creatures.

IBS BLUES-WATER POLO IBS Blues – the club with a swimming pool organised a water polo competition on 10 Dec ‟11. Teams comprising of 7 members each (two girls and five boys) competed against each other. The event brought out the sporty selves of the participants and was rejuvenating. The victorious faces of the winning team (sea hawkers) can be seen in the picture.

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THE IBS TIMES MARKET WATCH

- SWATI VERMA

The relief gained last week was extremely short lived, quite visible from the slump in the Indian indices. The Indian stock market were down 3.8% during the week after the government lowered the full year Gross Domestic Product (GDP) growth target and disclosed that meeting the fiscal target would also prove to be a challenge. Apart from this, the market sentiments turned extremely grim pulling the indices south owing to the governmentâ&#x20AC;&#x;s decision to put Foreign Direct Investment (FDI) in multi-brand retail on a hold. India's food inflation rate fell significantly to 6.6 % for the week ended November 26, 2011 from 8.0% for the previous week. The inflation rate for fuel and power, however, remained unchanged at its previous week's level of 15.53 %.Amongst the sectoral indices, except for IT all were in the red. Capital Goods were the biggest loser (down 5.4%) amidst expectations that it would lead to a decline in industrial output in October. (Data for industrial output is scheduled to be reported on Dec 12). Apart from this, Realty and Oil and Gas sectors were also down by 4.8% and 4.6% respectively. Broad based selling across markets led to a decline in majority of the sectors. Infrastructure spending is not happening in the country majorly due to higher interest costs and hence the required growth is not visible in cement companies and at the same time, margins are under pressure for all cement companies on back of increase in coal prices from Coal India and depreciating rupee .Hence this sector needs to be left alone ,for now. FMCG companies like HUL, on the other hand, could be a game changer in the near future owing to their focus on innovations and cost reductions.

Movers and Shakers of the week

SURGES

%Change

DOWNFALLS

%Change

INDIABULLS FINANCIAL SUN TV AMBUJA CEMENT

9.4 7.1 6.9

STERLING BIOTECH

-16.7 -16.7 -13.7

INDIABULLS PANTALOON

Hindalco Industries is planning to make an additional investment of USD $5 bn to more than double its aluminum production capacity by 2016. However, the pace of the expansion would largely depend on early clearances for captive coal blocks, as smelter projects are not viable without captive power. Coal India (CIL), which supplies coal for 80% of the power produced in the country, has cut its production target to 440 m tonnes for FY12 from the earlier estimate of 452 mn tonnes in its annual plan. The PSU has lowered its production target due heavy rainfall, strike and delays in the grant of forestry and environmental clearances to coal projects. Power Grid Corporation of India (PGCIL) is in the process of finalizing $750 million loan from the Asian Development Bank (ADB) for one of its transmission projects. PGCIL would utilize this loan for establishing a transmission system between the Northern (Haryana) and Western (Chhattisgarh) region. The government does not plan to alter its production-sharing contract with Reliance in the KG-D6 block currently, oil minister S. Jaipal Reddy confirmed. Reliance said in a statement it was concerned by reports that the oil ministry would seek to restrict the amount the company takes out towards cost recovery from its revenues from sale of gas produced from the D1 and D3 fields in the block. Reliance, India's largest listed company, has seen its growth outlook marred by falling gas output from the KG D6 gas fields and has lost more than a quarter of its market value this year.

Global Cues: After witnessing a sharp bounce back in the last week, the world markets were not able to hold on to the gains and corrected in this week's trade. The US stock markets were up 1.4% during the week. Hopes that better fiscal integration measures by the European countries will help resolve the debt crisis fuelled market sentiments. Trade deficit numbers reported by the US were also encouraging while the consumer confidence index surprised positively, propelling further buying interest. The Euro, despite a coordinated central bank effort to prop it up by unfreezing liquidity in the interbank market, the currency only managed to post a small gain against the U.S. Dollar by Fridays close. The past week saw the British Pound struggle to hold its ground against the U.S. Dollar ; the currency may decline further as the U.K. economic docket is expected to highlight a dimmer outlook this week.

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THE IBS TIMES MARKET WATCH 75 NOVEMBER DECEMBER 2011

86NOVEMBER DECEMBER 2011 2011

16,805.33

17569.53 -

17362.10 16,877.06

16,488.24

16,213.46

Nifty Nifty

5,039.15

5289.35 -

5221.05 5,062.60

4,943.65

5168.85 4,866.70

DJIA DJIA

12068.39 12,097.83

12170.18 12,150.13

11780.94 12,196.37

11893.79 11,997.70

12153.68 12,184.26

HangSeng HangSeng

19677.89 19,179.69

19678.47 18,942.23

20014.43 19,240.58

18963.89 19,107.81

19137.17 18,586.23

FTSE100 FTSE100

5510.82 5,567.96

5567.34 5,568.72

5460.38 5,546.91

5444.82 5,483.77

5545.38 5,529.21

Gold Gold($/oz.) ($/oz.)

1791.90 1711.00

1789 1728.70

1760.40 1736.90

1766.80 1709.70

1788.5 1711.30

Crude($/bl) Crude($/bl)

111.08 110.35

113.79 109.54

113.13 110.10

111.67 109.02

113.76 -

INRv/s v/sUSD USD INR

49.04 51.51

49.40 51.63

49.59 51.72

50.16 52.03

50.75 52.39

INR INR EURO EURO

67.59 69.18

67.99 69.12

68.31 69.34

68.81 69.64

68.86 69.95

Sensex Sensex

v/s v/s

97NOVEMBER DECEMBER 108 NOVEMBER DECEMBER 2011 2011 2011 2011

119 NOVEMBER DECEMBER 2011 2011 17192.82

Financial Services Compensation Scheme (FSCS) - It is the fund of last resort for people who wish to make a claim for mis-selling. It can pay compensation when a firm is unable, or likely to be unable, to pay claims against it. It is financed by a levy on financial services firms who ultimately pass on the cost to consumers via charges.

BUSINESS JARGONS BY – ANKIT SHARMA

http://bit.ly/ibstimesgooglegroup http://bit.ly/ibstimesyahoogroup

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 TEAMAKSHAY AGARWAL, ANKIT SHARMA, AVLEEN KAUR SARNA, DEVANSHI PODDAR, KRITIKA SETHI, POOJA DALAL, SHILPI KALWANI, SWATI VERMA.

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