ISSUE - 120
20th JULY [WEDNESDAY]
EDITOR’S DESK
- TANIYA BANERJEE
With the PIGS already in debt crisis Italy has also joined the league. It seems that the Silvio Berlusconi government will have its hands full with this for times to come. Get the complete story in our Cover Story. The recent bomb blasts in Mumbai has yet again left all of us speechless with various questions pondering in our minds. When would all of this stop? Why is it that the casualty at the hands of terrorism is increasing day by day while the government seems to seems to be silent spectator? Get our writerâ€&#x;s views in the Opinion Forum this week. With its innovative ways of handling its customers, Budweiser has created a unique proposition for itself. The various strategies, strengths and weaknesses, ups and downs of this brand has been captured in our Brand Track section this week. FMPs have off late been gaining popularity amongst investors because of their image . Which is that they are a safer alternative to liquid mutual funds. With added benefits like better returns and tax benefits, FMPs are here to stay and hence it is the Focus of the Week this time. Moreover catch up with the happenings around the globe with our regular sections Fast Track, Quick Bites and Market Watch along with a lot of Jargons to add on to your knowledge. 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– THE GREAT FALL OF EUROPE
- SANYA DHAWAN
Last week I talked about Greece going into a major debt crisis. Apart from Greece, Ireland, Portugal, Spain are countries that also remain in peril. But this week, it is extremely alarming to see that Italy is joining the sovereign debt saga of the Euro Zone. The contagion is spreading faster than we can imagine and it is feared it might lead to the fall of the Euro.
Italy is Euro’s third largest economy and the world’s third largest issuer of government Bonds. But they have gone very wrong.
Italy is Euro‟s third largest economy and the world‟s third largest issuer of government Bonds. But they have gone very wrong. Their gross debt to GDP ratio is 120%, way above the 60% approved by the Euro Zone limits. And in that large debt, Italy owes about a quarter of all government debt in the euro zone. Losses from Ireland or Portugal could be contained but steep falls in the value of Italian or Spanish government debt risk a wave of bank failures. This is because the amount of debt is very large and a substantial part of it – somewhere close to $1.1 trillion is of non-Italians. Last week the yields reached an all time high. Credit rating agency Moody has threatened to downgrade their debt in the next 90 days. This is mainly because of a couple of reasons. One, interest rates are expected to increase over time as there will be no meaningful economic growth file to macro economic factors. Also, there are risks involved in terms of implementation of plans of the Italian government and the changing conditions of Euro Zone. Italy has 120% of its sovereign debt outstanding that is about $2.6 trillion. This amount is much more than the amount left in the kitty of the European Financial Stability Facility (EFSF), the currency club‟s rescue kitty. This is making the investors flee the Euro market making the chances of recovery lower. Events abroad also played a part in increasing the yields drastically the past one week. Signals that the endless fumbling over Greece‟s second bail-out will end in debt restructuring prompted investor flight from core euro-zone countries as well as peripheral ones. Long-term buyers of government bonds such as pension funds and insurers held back which lead to an almost total closure of the Italian bond market.
Events abroad also played a part in increasing the yields drastically the past one week.
The government of multi-billionaire Prime Minister, Silvio Berlusconi has responded with a four year austerity budget. Some of the important facets of the budget are- lower income tax, accompanied by a hint that the shortfall may be made good by a gradual rise in VAT, increased health charges and a freeze on cost-of-living increases for higher-value state pensions. More cuts made by local and regional authorities, which are set to lose €10 billion in central-government transfers. The budget also includes a rise in the flat-rate stamp duty on government bonds that have for years formed the core of every middle-class Italian saver‟s portfolio, which could sharply reduce their net returns. It is a 100 odd page budget assured to bring Italy out of its misery. The government is saying there is no need to panic. It assures the banking system is insulated from the turmoil. It is coming up with various proposals to privatize state owned assets. The deficit is expected to shrink. “Italy only reacts under an emergency,” says the boss of an Italian financial institution. “Now there is one.” Do you think it is the end of the Euro? I think that day is not too far.
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FAST-TRACK NEWS
THE IBS TIMES - SHILPA MALHOTRA
Multiple blasts in Mumbai kill 21 over 140 injured Terror struck Mumbai when three serial blasts rocked crowded areas in the peak hour on Friday in a space of 10 minutes killing at least 21 people and injuring 113 in a grim reminder of 2008 Mumbai attack. Meanwhile Lieutenant General (retd) Abdul Qayyum has suspected the Central Intelligence Agency (CIA) hand in the blasts to mount pressure on Pakistan to allow US military trainers. He said that there can be a third party behind these attacks. “It could even be the CIA so that Pakistan allow US military trainers and start military operation in the tribal areas”.
Pak aid suspension welcome, says India The news about US suspending military aid worth $800 million to Pakistan was greeted with understandable excitement in India with foreign minister S M Krishna saying that New Delhi welcomed this development. Krishna suggested that arming Pakistan further could only disturb the "equilibrium" in the region. The suspended aid, which is about one-third of the $2.7 billion in annual US military assistance to Pakistan, includes about $300 million meant to reimburse Pakistan for some of the costs incurred for deploying more than 100,000 soldiers along the Afghan border to combat terrorism .
ISRO successfully launches latest communication satellite GSAT-12 India on Friday successfully launched its latest communication satellite GSAT-12 onboard a powerful variant of homegrown Polar Satellite Launch Vehicle, PSLV-C17, from the spaceport. GSAT-12, aimed at augmenting the capacity in the INSAT system for various communication services like tele-education, tele-medicine and Village Resource Centres, would be co-located with INSAT-2E and INSAT-4A satellites. This was the second time in its 19 flights that the PSLV has been used for launching a communication satellite after Kalpana-1 in 2002.
Govt likely to accept Solicitor General’s resignation The government is likely to accept the resignation of Solicitor-General Gopal Subramaniam, who quit in protest after Telecom Minister Kapil Sibal asked Rohington Nariman to represent him in the Supreme Court. The government has taken a grim view of his defiance, going against the advice rendered by Prime Minister Manmohan Singh and Law Minister Veerappa Moily not to act in haste. Subramanaim, while defending his action, asserted that he had taken the step to protect the dignity of the office of the S-G.
PM reshuffles his cabinet again Prime Minister Manmohan Singh inducted eight new faces into his government, axed seven ministers and juggled some portfolios in a bid to improve the image of his Congress-led government, but most analysts dismissed the changes as cosmetic. Among the major changes, Salman Khursheed took over the law ministry from M. Veerappa Moily, who moved to corporate affairs; Dinesh Trivedi of the Trinamool Congress heads the railways; while Jayanthi Natarajan, the only Congress woman MP from Tamil Nadu, is the new environment minister replacing Jairam Ramesh who was elevated as a cabinet minister in the ministry of rural development.
Gold surges to record on US, Europe debt crisis Gold rallied to a record on Thursday after Moody's Investors Service placed the US credit rating on review for a downgrade, US debt-ceiling talks stalled and Europe's sovereign crisis persisted, boosting safe haven demand. Immediatedelivery bullion climbed as much as 0.5% to an all-time high of $1,589.80 an ounce, and was at $1,582.75 at 4:03 pm in Singapore.
Car sales grow slowest in 27 months at 2.62 % Domestic car sales fell for the third straight month in June, lowest in 27 months, prompting the industry body to scale back the year's projection for the second time this fiscal. Sales rose just 1.62% in the month as against 7% in May and 13% in April. The growth is the slowest since March 2009, when sales grew 1.16%.Demand for vehicles in India, an important indicator of the country's economic health, is led by a middle class that is guided by the cost of fuel and loans in it decision to buy.
Green washing– The When a company, government or other group promotes green-based environmental initiatives or images but actually operates in a way that is damaging to the environment or in an opposite manner to the goal of the announced initiatives. This can also include misleading customers about the environmental benefits of a product through misleading advertising and unsubstantiated claims.
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THE IBS TIMES SEZ land sale to realtors blocked
In a move to prevent special economic zones (SEZs) from turning into real estate projects, the finance ministry has barred SEZ developers from selling controlling stake in their ventures. SEZs, which were envisaged as enclaves of export infrastructure excellence, enjoy substantial tax concessions from the government. But dilutions in tax benefits over the years have made them less attractive for developers. The latest restrictions, which deny the developers an exit option, would add to their woes.
TCS posts 26.7% rise in first quarter net, beats estimates
Shares in India's top software services firm, Tata Consultancy Services , rose 3.9 percent in pre-open trade on Friday after it posted forecast-beating quarterly earnings. Beating market estimates, Tata Consultancy Services (TCS), India‟s largest software company, has posted a 26.7 per cent rise in its net profit at Rs 2,415 crore for the first quarter of 2011-12, aided by a “balanced broad-based growth”. The revenue grew by 31.4 per cent to Rs 10,797 crore for the period under review.
Satyam trial fraud faces delay
The Satyam trial proceedings are unlikely to be over by the end of this month raising the possibility of the Supreme Court granting bail to the main accused, including Ramalinga Raju, the disgraced former chairman of Satyam Computer Services. While cancelling bail to Ramalinga Raju and other prime accused, the Supreme Court in October last year directed the special court in Hyderabad to complete the trial by July 31. If the trial is delayed then there is strong ground for the court to grant bail to all main accused in the case.
US plans to raise debt limit of $14.3 trillion
The U.S. government hit its $14.3-trillion debt ceiling triggering a series of “extraordinary measures” to stave off a default while politicians argue over raising the borrowing limit. Treasury Secretary Tim Geithner announced he was suspending payments into two federal pension funds, after the government reached its maximum legal borrowing limit. Mr. Geithner said the suspension should allow the U.S. to avoid a default before August 2 and urged Congress to agree to raise the debt ceiling before this 11-week deadline expires.
Rebekah Brooks Resigns as News International CEO
Rupert Murdoch's loyal lieutenant Rebekah Brooks resigned as chief executive of his embattled British newspapers, becoming the highest-ranking casualty yet in the phone-hacking scandal roiling Britain. As Brooks departed, Murdoch's son James signaled a new strategy for dealing with the storm that has knocked billions off the value of News Corp., scuttled its ambitions to take full control of lucrative British Sky Broadcasting and radically changed the power balance between U.K. politicians and the feared Murdoch press.
Uruguay stun Argentina
A surprise appearance in a World Cup semifinal, now beating the hosts to reach the last four of the Copa America -- it just keeps getting better and better for Uruguay. If a semifinal in South Africa last year was not enough, the Uruguayans came up with another sensational result on Saturday, beating Argentina on penalties to eliminate the heavily favored hosts and longstanding rival. "I'm very happy," Coach Oscar Tabarez said. "This is one of the oldest classics in the world. Historically, it's very hard for us to beat Argentina."
Harper's allegations unwarranted: Team India
Team India has described retired international umpire Daryl Harper's charge that captain MS Dhoni tried to intimidate him, as unwarranted. Team sources said that they are surprised by Harper's comments. Some players even laughed off at comments made by Harper. Meanwhile, Dhoni has received the backing of cricket experts, especially considering Harper's record of getting into trouble with a number of International cricketers. Saying, “Harper has had run ins with players a number of times", Cricket experts said they prefer to believe India's side of the story rather than Harper's.
Globally Floored Contract- A guarantee found in structured investment products that provides a minimum payoff at maturity. A globally floored contract will protect the investor or minimize his loss in case the underlying investment loses its value.
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THE IBS TIMES
OPINION FORUM– TIME TO TAME TERROR!
We can aptly start referring to Mumbai as the horror capital rather than as the financial capital of India.
- TANIYA BANERJEE
As ominous as the number thirteen sounds it indeed was the harbinger of tragedy in the month of July for the people of Mumbai. But can we blame the number alone or is it that our entire system is jinxed? We can aptly start referring to Mumbai as the horror capital rather than as the financial capital of India. For a record no other city in the globe has been a target to these many terrorist attacks. Does this not show a huge callous attitude of the government towards its security system which is being breached time and again? Is this the face of an emerging superpower scarred with the deaths of its innocent citizens? A series of three blasts took place in sequential manner in Zaveri Bazar, Opera House and Kabutarkhana on 13th July, 2011 between 6.30 to 7 PM IST. Desperate cries for help reverberated throughout the area! Some lay in state of shock others frantically searching for their near ones wondering if they would figure in the eventual toll of 18 dead. The initial perpetrators were thought to be the Indian Mujahideen but since no group has taken up the responsibility of the attacks hence the main culprit still remains in speculation subject to further investigation. Some say it marked 26/11 convict Kasab‟s birthday revenge of sorts, others say it is Pakistan‟s doing. But as always said terrorism does not follow any reason , so seems the philosophy in this case as well! A compensation of two lakh rupees has been granted to the kith and kin of the dead in the attacks. It really bothers me to see how promptly human lives here can be quantified in terms of money. Instead of taking measures that would protect the lives of its citizens in a better way the Indian Government always conveniently comes up with these distress packages and a sorry face. Look at the US, post the 9/11 attacks it hunted down its perpetrators, beefed up its security system, threatened the terrorists which effectively resulted in the US witnessing no more of such events. But one look at our country and we wonder what is so wrong in taking a tough stand? Since March 1993 where close to 257 people lost their lives till date Mumbai has been continuously at the receiving end of these atrocities. 14 major blasts have rocked this city since then, but our government still seems to be taking appropriate actions. What is even more astounding is that petty politics has not spared this even as well! Few hours into the attack opposition parties have already started the blame game trying to garner limelight from the situation. Regional biases and intolerance has also been depicted during this incidence when the Maharashtra Navnirman Sena Chief Raj Thackeray blamed north Indians and migrant population for the blasts.
What the country needs now is not this political football being played out in the open so unabashedly but a strong security system.
What the country needs now is not this political football being played out in the open so unabashedly but a strong security system. Several lags are still existent. For example the National Counter Terrorism still awaits setting up while the National Technical Research organization which is primarily responsible for cyber surveillance has not been sanctioned formally. Moreover Natgrid the ambitious project meant to link databases online for intelligence sharing has just got moving. Several other issues like low police to citizen ratios, lack of a special counterterrorism force (the idea of which was hatched post the 26/11attacks) etc need to be addressed at the earliest. Lastly we salute the undying spirit of Mumbai but that does not mean that we challenge it all the time! „Terror should be tamed‟ should perhaps be the new mantra for India!
Exploding Warrant - An equity derivative investment instrument that gives that holder the right, but not the obligation, to acquire the underlying instrument, and which is exercised only if the issuing company does not meet certain specified goals.
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THE IBS TIMES
BRAND TRACK– A BUD IN NEED IS A BUD INDEED
-SUPRIYA MAMGAIN
You are allowed to enter the viral world of Budweiser only if you are under the legal age of drinking. The interesting web page allows a person to enter only after entering his/her date of birth. Therefore, this is a beer which knows its customers (those under the legal age to consume alcohol) and would cater only to them! Adolphus Busch gave the Americans a drink truly new to their taste buds. In the mid 1800s Americans preferred robust, dark ales and some lighter Bavarian style lagers, but these drinks did not capture the American lifestyle and culture. Adolphus introduced Budweiser, which is a flagship beer of Anheuser-Busch; Bud became an instant hit with the Americans as by 1941 the Americans guzzled down three million barrels per year. Marketed as the king of Marketed as the king of beers, Budweiser portrays itself to be a beer made by friends for beers, Budweiser portrays friends. The brand has associated itself with major sporting events such as the FIFA world itself to be a beer made by cup, Superbowl, NFL as well as car racing. The brand earns recognition by such associations as it helps to capture the attention of the various fans, go for such events. The brand friends for friends. contributes millions of dollar through its “Here‟s to the Heroes” campaign. It contributed $100 for every homerun hit in Major League Baseball to Folds to Honour, an organization that helps the family of fallen soldiers. Yes, a beer brand can do its bit for the society too! We all know that every legendary brand goes through a downfall where it needs to save its image and sales. Bud faced such an issue in the year 2010, when it started with various marketing exercises of promoting its brand. The brand unleashed the biggest ever free sampling effort in trendy bars and eateries. Due to various factors such as a shift to lighter beers as well as increase in price sensitivity among consumers, bud aimed at the under 30 consumers. The campaign begun with the slogan “Grab some Buds” encouraged users to try a free Budweiser was ranked brewski. The campaign declared as the National Happy hour by Budweiser did boost its th 30 in Interbrand’s 2010 sales and image! You dear reader just missed the free sample of limited edition Budweiser cans that were given on 14th June 2011, declared as the National Happy Hour. world’s most successful Taking the help of social media, the company took this campaign a notch further as it albrand list. lowed its users to get started with the “Grab Some Buds” “Happy Hour Application” available on facebook. This has helped the brand to acknowledge its growing community of consumers that enjoy their bud! Budweiser was ranked 30th in Interbrand‟s 2010 world‟s most successful brand list. Though Budweiser is the “King of Beers” in U.S.A., the worry of the marketing team at Budweiser is to have a strong presence in other countries as well. Budweiser has not played the same tricks in other countries, which could be the reason of its depleting sales as this has given other brands to have a strong hold in those markets. So what do you think Budweiser could do to promote itself in India? Perhaps, a National Happy Hour for the thirsty Indians.
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THE IBS TIMES
QUICK BITES- NEWS THAT CAN’T BE MISSED !
- RAJAT MONGA
Big Shots… Pradeep Kumar is sworn in as the new Central Vigilance Commissioner Reliance Media Works has appointed Mr. Ashok Ganapathy as the CEO of its cinema exhibition division, Big Cinemas Ranbaxy Laboratories appoints Rajiv Gulati as its President-Global pharmaceuticals business
Company Talks… Tata Motors global sales declines marginally in June India's largest gold financing NBFC, Muthoot Finance Ltd to offer loans against the security of gold Exchange Traded Funds McDowell's No 1 has regains its place among world's 10 biggest global spirits brands by volume ITC to launch more designer wear & international designs Suzlon bags Rs 650 cr order from Orient Green Power Co Haier India to double refrigerator sales to Rs 650 crore Future Ventures ups stake in Indus-League Clothing to 90.84 pc Groupe Danone to merge distribution in India with probiotic drinks joint venture Yakult Danone HUL eyes opportunity over a cup of coffee Carlyle Group invests $25 mn in India's Visen Industries Basix, Aviva to launch automated micro insurance policy process Life Technologies invests $3 million in distribution hub in Bangalore Castrol to shut Chennai plant from July 31
Economy Speaks… Gannon bids lowest for NHAI's Rs 1,050-crore project 241 mt of foodgrain produced in agricultural year 2010-11 Government lifts ban on wheat exports India won't expand FY12 borrowing plan, says FM Pranab Mukherjee Government, World Bank to sign pact on rural jobs
The Captains of the Ships… CEO, NDTV- Mr. Sameer Kapoor President, BMW India- Dr. Andreas Schaaf Chief Marketing Officer, DLF – Mr.Pragash S Chairman, Etisalat-Mohammed Omran
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THE IBS TIMES
FOCUS OF THE WEEK– FIXED MATURITY PLANS
- VASUNDHARA ARORA
An intelligent investor is one who keeps his territory secure and scouts for better investment avenues alongside. Going by similar rationale, people are showing huge inclination towards fixed income securities nowadays and among the fixed income securities, FMPs are an increasing rage among smart investors. Fixed Maturity Plans (FMPs) are fixed tenure, closed ended mutual fund schemes bearing quite a much of resemblance to a bank Fixed Deposit (FD). Quite misunderstood to be equity-linked instruments, FMPs are pure-play debt funds as they invest in debt and money market instruments; to name a few corporate bonds, commercial papers, certificates of deposits, bank fixed deposits, government securities would be investible targets for an FMP. FMPs are closed ended funds, so they come usually for a 2-7 day period for investors to lock-in their investible surplus at the initial offer due for redemption only at the stipulated time and are usually issued for three or six months or one, two or three years.
Fixed Maturity Plans (FMPs) are fixed tenure, closed ended mutual fund schemes that invest in debt and money market instruments.
FMPs allow investors enjoy triple benefits of indicative yet predictable returns with liquidity, minimal price risk and most importantly, lower tax.
Well, there is plethora of instruments flooding the markets today, so what is something that FMPs offer and other fixed income instruments, bank FDs per say don‟t? What is the USP of an FMP making it in vogue today? Let‟s have a deep dive into it and understand the intrinsic dynamics! FMPs significantly differ from other fixed income investment avenues on the grounds of returns, risk profile and tax treatment. Unlike other fixed income instruments, FMPs offer an indicative yield to the investor which is based on the returns offered by the underlying financial instruments that an FMP invests into. This makes the very fact apparent that investors of FMPs are exposed to relatively higher risk than other fixed income investments. They compensate for the extra bit of risk borne by investors by offering comparatively higher returns than theoretical returns at the time of maturity. Apart from this, FMPs offer extensive liquidity to investors as they are tradable in the secondary market. Though structured to be redeemed only at the maturity date, an option to redeem the FMP prior to the maturity is also offered but is subject to huge exit loads which therefore reduces effective yield. The last yet the most crucial differentiating factor making FMPs stand out in the pool of fixed income securities is the tax treatment. Returns from other fixed income securities are taxed entirely as per the investor‟s tax slab, but the taxation of FMPs has got two aspects: Dividend and Growth. Dividend yields from FMPs are subject to Dividend Distribution Tax (DDT) deductible at source whereas growth yields are subject to Capital Gains tax regime. Also, they are allowed to leverage on indexation benefits wherein the returns could be adjusted for inflation rates of the tenure thereby making them an all the more lucrative instrument as not all fixed income investments offer investors the luxury of betting on real returns. Particulars
Fixed Deposit
FMP (Dividend Option)
FMP (Growth Option)
Gross Yield
10.00%
10.00%
10.00%
Tax
33.66%
NA
33.66%
Dividend Distribution Tax
NA
16.61%
NA
Net Yield
6.63%
8.34%
6.63%
An illustrative snapshot of differential tax treatment for FDs and FMPs.
Since FMPs hold investments in debt instruments till maturity they are not much affected by price fluctuations arising out of interest rate volatility. This very fact makes FMPs immune to interest rate risk. In a nutshell, we can say that FMPs are increasingly gaining an edge over other fixed income instruments as they allow investors enjoy triple benefits of indicative yet predictable returns with liquidity, minimal price risk and most importantly, lower tax.
Skirt Length Theory- The idea that skirt lengths are a predictor of the stock market direction. According to the theory, if skirts are short, it means the markets are going up. And if skirt are long, it means the markets are heading down.
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THE IBS TIMES MARKET WATCH
- SAINYAM KUMAR
With the number of rate hikes in past few months by RBI and some more lined up expectedly, it is a well established fact now that inflation is the biggest concern for Indian economy in today‟s time. India‟s headline price rise measure; WPI accelerated to 9.44% in June. The worldwide decline in the prices of commodity stocks due to fall in oil and metal prices after Fed confirmed no immediate plans of extending fresh stimulus into the economy made Asian stocks thrive on weak trade towards the end of the week. The much anticipated bull picture does not really seem to be taking shape as of now since this week only Pharma and PSU sector barely managed to cross the threshold for positive returns. Slump in realty sector could be attributable to signals of further increase in interest rates which was successful in putting pressure on realty stocks massively. Rising crude oil prices ignited a huge sell-off in oil & gas stocks thereby pulling the Oil & Gas Index down heavily. The auto sector is facing a challenge as the rates for auto loans have been raised from 11% to 15% after eight rounds of interest rate hikes past year. This coupled with expected surge in fuel prices has dampened the mood of potential investors as inquiries for cars aren‟t translating in actual sales. This is making car makers go for record discounts and freebies to entice buyers.
The Movers & Shakers of the Week
SURGES
%Change
DOWNFALLS
%Change
GSK CONSUMER
7.7
IRB INFRA
-13.4
EXIDE INDUSTRIES
7.6
HOUSING FRA
ASIAN PAINTS
7.6
UCO BANK
DEV.
IN-
-13 -13
The week witnessed a plethora of companies announcing their FY11-Q1 results, some taking a high ride and some set to be doomed. Nestle announced a strong quarter owing to increased operating margins and higher demand with domestic sales outperforming exports. Another prominent FMCG player, P&G Hygiene & Health Care released its results. It also reported a robust performance arising out of female hygiene business. From the auto sector, we had TVS Motors revealing its results with a top line growth of 42% y-o-y. The growth was led by strong demand for two wheelers during the year. ICICI Bank also disclosed its Q1 performance and recorded a 1% dip in its NPAs coupled with identical growth in its net interest income y-o-y. Infosys reported a 5.3% sequential fall in its first quarter profits but still maintains its full year forecast of achieving 18-20% growth in revenues.
Global Cues: The week saw markets from developed west managing to mark the end in green whereas the Asian markets end on a gloomy note. Germany led the pack of gainers with a whopping 3% surge and on the other hand China was the biggest loser of the week down by 3.3%. Japanese markets rallied due to electronic retail stocks as government announced a possible revival of subsidies on energy-saving appliances. Whereas Indian markets closed in red falling back on weakening market sentiment among FIIs in fear of another round of rate hike possible by RBI.
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THE IBS TIMES MARKET WATCH 11 JULY 2011 Sensex
18,721.39
12 JULY 2011 18,411.62
13 JULY 2011 18,596.02
14 JUNE 2011 18,618.20
15JULY 2011 18,561.92
Nifty
5,616.10
5,526.15
5,585.45
5,599.80
5581.10
DJIA
12,505.76
12,446.88
12,491.61
12,437.12
12,479.73
HangSeng
22,347.23
21,663.16
21,926.88
21,940.20
21,875.38
FTSE100
5,929.16
5,868.96
5,906.43
5,846.95
5,843.66
Gold ($/oz.)
1,554.40
1,567.30
1,582.60
1,587
1,594.10
Crude($/bl)
111.35
111.07
113.25
112.74
INR v/s USD
44.4657
44.7148
44.5179
44.5099
44.5151
INR v/s EURO
62.501
62.4889
62.65
63.213
62.971
*
* FIGURES NOT AVAILABLE
Yellow Knight- A company that was once making a takeover attempt but ends up discussing a merger with the target company.
BUSINESS JARGONS BY– NITIN ARORA
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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, NITIKA THAKUR, NITIN ARORA, RAJAT MONGA, SAINYAM KUMAR, SANDEEP ASRANI, SANYA DHAWAN, SHILPA MALHOTRA, SUPRIYA MAMGAIN, TANIYA BANERJEE, VASUNDHARA ARORA.
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