The+IBS+Times++issue+142nd by Stock Yard

ISSUE - 142

8th FEBRUARY [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. This week through our Cover Story we try to get the NRI perspective into the Indian picture. With the sluggish growth being recorded the world over, India is slowly emerging as a save place, with high returns-thus attracting our NRI friends to probable investment opportunities. Looking deeper into the matter is our writer this week. The Supreme Court‟s decision of cancellation of the 122 Telecom licenses has come as a big blow to most of the concerned companies. Big fish like Telenor is planning to exit the Indian scene in wake of this decision. Is the Court‟s decision too harsh,-driving away major Investment providers? Get our writers opinion on this issue through Opinion Forum this week. MANGO-the store is what we bring to you this week. How the retail giant has managed to be an integral part of every woman‟s wardrobe and it‟s future in countries like India and the other developing nations is what we try to understand this week. Get all the details through Brand Track column. With the expectations of yields on Indian Bonds falling, the Indian Railways Financial wing is all set to present it‟s Bonds proving a coupon rate of 8%p.a for a period of 10 years. Will there be enough buyers for it or not?-Get a deeper understanding from our writer this week through the Focus. 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!! Kritika Sethi

SYNOPSIS COVER

1 OPINION 2 BRAND

5 FOCUS 6 NEWS @ IBS

8 9

FAST-TRACK

3 QUICK BITES

7 MARKET

THE IBS TIMES

COVER STORYâ&#x20AC;&#x201C;BETTER MARKET CONDITIONS BOOST NRIâ&#x20AC;&#x2122; INVESTMENTS

-ANKIT SHARMA

A sigh of relief for the inflation struck Indian economy can be sensed, as the market conditions are recovering giving a ray of hope to the ailing economy. According to the World Bank, India continues to retain the top slot in remittances by expatriates from abroad. An estimated 30 million NRIs, living in 130 countries, are sending remittances back home regularly. For 2011, NRI remittances are likely to touch 4.58 billion against China's 4.57 billion. In 2010, India received 4.54 billion in foreign exchange remittances, three percent of India's GDP, beating China's 4.53 billion. The rupee depreciation and West Asian currencies linked to dollar which is appreciating against An Indian citizen who the rupee are major driving forces that resulted in a surge in remittances to India. The remitresides outside India is tances are mainly used for family needs and investments in stocks, property and term deposits. Real estate here is preferred because of a desire to crepermitted to acquire ate a elevated lifestyle for the family and the price approperty in India other preciation in the long term. Since liberalization in the than agricultural, plan- 1990s, investment norms have been simplified to enable NRIs and persons of Indian origin (PIO) to invest tation property and in real estate here. farmhouse. NRIs get Realtors here have also set shop in some countries to almost all the privileges interact directly with overseas Indians and extend efthat residents have while fective after sales services. Moreover, housing finance investing in real estate. companies and banks with their representative offices in various countries offer home loans to NRI investors. Though there was an interim sluggishness in NRI investments, industry experts feel the trend is going to pick up in the coming months due to the uncertainty prevailing in the global economy and the attractive investment opportunities offered here. There are opportunities opening up for developers in new markets such as Mauritius. This is ample proof of the surge in NRI investments in real estate. Property shows are held regularly now in various countries such as US, UK, and West Asia due to the concentration of a large number of expatriates in particular areas. The organizers focus on the many options available in various localities here. NRIs, while returning, can retain their foreign current assets acquired, held or owned while abroad, or inherited from a person who was a resident outside India even after return to India for permanent settlement.

An Indian citizen who resides outside India is permitted to acquire property in India other than agricultural, plantation property and farmhouse. NRIs get almost all the privileges that residents have while investing in real estate. They can acquire, inherit, transfer and gift residential or commercial property. The purchase can be made through funds remitted to India through normal banking channels or funds held in certain types of accounts maintained in India. They can get home loans, mortgage loans and loans against future rental income. A number of property management companies including MNCs have set up shop in major cities to extend property management services. This is a boon to NRIs and PIOs investing in India while living in other countries. NRIs, while returning, can retain their foreign current assets acquired, held or owned while abroad, or inherited from a person who was a resident outside India even after return to India for permanent settlement. However, income earned from an overseas asset needs to be repatriated to India and credited to a resident foreign currency (RFC) account.

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FAST-TRACK NEWS

THE IBS TIMES -SHILPI KALWANI

Awaited Verdict & Surprised Swami The suspense was mounting for hundreds of media persons and lawyers who jostled for space outside the court of special CBI judge O.P. Saini since Saturday morning to hear the verdict on a plea against Home Minister P. Chidambaram. The charges were „dereliction‟ of duty by the then Finance minister for not taking adequate steps to avoid the telecom scam. It was only after a wait of over three hours that the doors of the courtroom at the Patiala House premises were opened for the now fidgeting crowd. And the verdict was clear: Relief for Chidambaram and surprise for the petitioner, Janata Party chief Subramanian Swamy. The court dismissed Swami‟s plea against Chidambaram.

Syrians storm embassies after uprising's worst violence Syrian demonstrators ransacked their country's embassy in Cairo and broke into the missions in London and Kuwait, part of protests around the world against the worst bloodshed of the 11 month uprising against President Bashar al-Assad.The Cairo crowd smashed furniture and equipment and set fire to parts of the embassy building overnight. .

US changing visa rules to attract the highly-skilled To make America more attractive to highly-skilled foreign students and workers, the United States has announced a series of reforms, including changes in the F-1 and H-1B visa rules that may benefit professionals from India. The interim measures are aimed at improving the competitiveness of US companies in the world market and stimulating US job creation before comprehensive immigration reforms for „fixing our broken immigration system,‟ the Department of Homeland Security announced. F-1 international students will now even be eligible for 17 month extention of optional practical training (OPT).

Setbacks create scares on the clean corruption free image of Singapore Senior officials arrested in a corruption investigation. Subway commuters trapped underground without light or proper ventilation; flooded roads in the financial district. It may sound like Indonesia or perhaps the Philippines, but this is Singapore the wealthy island state that has long been the envy of those neighbours for its ruthless efficiency, clean government and high standard of living. The citystate remains a relative paragon of good governance but a succession of embarrassing setbacks is damaging its reputation and heaping pressure on the long-ruling government as it faces an unprecedented erosion of public support .

Treasure hunter finds $3bn-worth platinum in shipwreck A US treasure hunter has announced a record find of Soviet platinum in a sunken World War II era shipwreck, BBC reported Thursday. The wreck - of a British merchant vessel - is located 80 km off the US Atlantic coast in waters 213 metres deep, Greg Brooks of Sub Sea Research said .

Surge in foreign fund flow into infrastructure Overseas investors are increasingly pumping money into India's infrastructure sector, especially in the power, oil and gas, telecom and iron and steel segments, due to the prospects of high returns, an industry report said. The flow of external commercial borrowings (ECBs) that include bank loans, suppliers' and buyers' credits, fixed and floating rate bonds and borrowings from private sector windows of multilateral financial institutions such as International Finance Corporation surged 50 percent to $36 billion in 2011 as compared to $24 billion in the previous year, as per Reserve Bank of India data. Killer Bees-An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an attempted hostile takeover from occurring. Companies use a variety of anti-takeover measures, sometimes referred to as shark repellents, to discourage unfriendly takeover attempts from happening.

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THE IBS TIMES Another IAS officer appears before CBI in Jagan Another senior Indian Administrative Service (IAS) officer Saturday appeared before the Central Bureau of Investigation (CBI) in the case involving alleged illegal assets of Congress party leader Y.S. Jaganmohan Reddy. K. Ratna Prabha, an IAS officer of Karnataka cadre who worked in Andhra Pradesh on deputation for last six years, was quizzed by CBI officials for over three hours at Dilkusha guest house, the camp office of the CBI, the agency's officials said. But a police official said, “If the CBI has to prove the case against Mr Jagan Mohan Reddy, first the investigators will have to establish that there are irregularities in allocations.

Crime, money power shadow Uttar Pradesh polls Thirty-five percent of the candidates in the second phase of Uttar Pradesh elections are embroiled in criminal cases, two groups said Friday.The Association for Democratic Research (ADR) and National Election Watch (NEW) said the number of such contestants in the constituencies had risen since the 2007 election. A total of 138 candidates or 41 percent of the 337 in the second phase were „crorepatis‟ a 22 percent increase from 2007.

India's forex reserves rise by $673.4 million India's foreign exchange reserves increased by $673.4 million to $293.93 billion for the week ended Jan 27, Reserve Bank of India data showed.The forex reserves have risen for the second week after six straight weeks of decline. They had increased by $731.8 million for the week ended Jan 20 after slumping by $14.25 billion in the previous six weeks.

Jadeja hits IPL jackpot, England players ignored Indian all-rounder Ravindra Jadeja fetched a bid worth more than $2 million, the highest in Saturday's Indian Premier League (IPL) auction, while there was no taker for frontline England players. Less than 24 hours after Jadeja's man-of-the-match performance in India's Twenty20 victory over Australia, Deccan had a fierce bidding war with IPL's Chennai franchise matching their $2 million offer. The stalemate resulted in secret bidding and Chennai secured the 23-year-old all-rounder's service for an undisclosed amount.

BJP to continue to demand for political accountability of Chidambaram in 2G case Bharatiya Janata Party (BJP) today said that it will continue to demand political accountability of Chidambaram in the 2G case, after a Delhi court today dismissed Janta Party President, Subramaniam Swamy's petition to make Union Home Minister P Chidambaram a co-accused in the case. Ultima-The rate at which the vomma of an option will react to volatility in the underlying market. It is the third order derivative of the option value with respect to volatility, or the derivative of vomma with respect to the derivative of volatility. Ultima is part of the group of measures known as the „Greeks‟which are used in options pricing.

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THE IBS TIMES

OPINION FORUM– MESS OVER QUASHING OF TELECOM LICENCES!!

-AVLEEN KAUR SARNA

There‟s no arguing against the principle of zero tolerance for irregular grant of spectrum licenses. The Supreme Court cancelled all licenses given to 11 telecom companies issued after January 2008. The ruling applies to the 122 licenses held by eight operators including Norway‟s state backed Telenor which said it may quit India rather than wait for new market rules to be framed. It has come as a major blow to the Congress led United Progressive Alliance government (UPA). The Supreme Court observed that the 85 out of the 122 licenses‟ granted by the UPA government on or after 8 January 2008 were outside the eligibility criteria for allocation of the 2G spectrum as they were granted in arbitrary and unconstitutional manner. It is expected that fewer than 5 percent users will however be effected by the cancellation of the licenses‟ in a The Supreme Court observed fiercely competitive market crowded with more than a dozen players. that the 85 out of the 122 licenses’ granted by the UPA government on or after 8 January 2008 were outside the eligibility criteria for allocation of the 2G spectrum as they were granted in arbitrary and unconstitutional manner.

India’s telecom successes have owed to allocation decisions that since 1999, prioritized consumer interest over mere revenue maximization. By saying that the SC ruling raps the 2003 first come first served policy of the then NDA regime, telecom minister Kapil Sibal is being needlessly disingenuous.

Market leaders such as Bharti Airtel and British based Vodafone which last month scored a big win when the Supreme Court ruled it was not liable for $2.2 billion in tax, are poised to benefit from the ruling. The licensees affected include those held by Unitech Wireless, a joint venture of Telenor and Indian real estate firm Unitech, which has been the most aggressive of the newer operators and had more than 36 million subscribers in the country as of December. However, the SC judgement also raises misgivings. For starters, scrapping of all 122 licences post 2008 appears to indict government policy as a whole, not just the individual cases of spectrum sale coming under a cloud. The court has directed TRAI to propose a new allocation process, factoring in auction of spectrum which could bring a multibillion dollar windfall to a deficit strapped government. If anything, India‟s telecom successes have owed to allocation decisions that since 1999, prioritized consumer interest over mere revenue maximization. By saying that the SC ruling raps the 2003 first come first served policy of the then NDA regime, telecom minister Kapil Sibal is being needlessly disingenuous. Had the authorities whether NDA or UPA sold 2G spectrum to the highest bidders simply to fatten their coffers, it would not have served the public good as much as helping firms keep services competitive and affordable, nor would the vital infrastructure of mobile telephony be accessible today to millions of people across the social board. It‟s obvious that auctioning airwaves would compel telecom firms as service providers to try to compensate for higher input costs by making cellphone calls more expensive. Higher prices for consumers would in turn affect growth of mobile networks. It has always been believed that cheap telecom has been a developmental boon empowering millions of poor people. Not only could that be stalled or reversed now, the next step in the telecom revolution i.e. giving our citizens access to quality mobile internet will be much more out of reach. Thus India‟s fast growing economy needs high return investment in telecom. The way to attract it isn‟t by overloading private companies with prohibitive expenditure on obtaining spectrum, it‟s by pushing resource availability and revenue sharing models. In this context, the SC verdict will have the baleful effect of creating apprehensions about the path telecom will take. It‟s important therefore that the government frames pricing policy in ways that facilitate rather than inhibit expansion of mobile connectivity in the country.

Value Averaging-An investing strategy that works like dollar cost averaging (DCA) in terms of steady monthly contributions, but differs in its approach to the amount of each monthly contribution. In value averaging, the investor sets a target growth rate or amount on his or her asset base or portfolio each month, and then adjusts the next month's contribution .

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THE IBS TIMES

BRAND TRACK– MANGO: RIPENING OF AN EXOTIC BRAND

-ATREYEE SENGUPTA

Satiating the desire of “fashion” requires a lofty baggage of mixed experiments. One mistake and you are out of the league. But one brand has consistently challenged and experimented with the very icon “fashion” itself and that is none other than “Mango”. It started spreading its high fashion sense from Barcelona, Spain. Mango‟s president Mr. Isak Andik designed the mission of Mango to be present in every single city of the world. Today it has more than 2000 stores in 103 countries (Europe being the most sought after followed by Turkey) and is still persistent in increasing its visibility. Its fun, friendly and accessible clothing has roped in every aspiring urban woman from the age group of 18-40.

Starting from the store presentation to lighting, every corner of a Mango store breathes fashion and glamour. A lot of attention is given to space and the “styling” of the store is done like a boutique rather than an international chain so as to make it more welcoming.

Mango usually takes the path of franchise system and is also currently planning to set up “multibrand” stores. The main concern for any textile company is to fight off economic downturns by layoffs, strict costcutting etc but surprisingly Mango is far away from these austerities.

Their greatest inspiration is amusingly the fruit itself- fresh, tropical and appealing. For any clothing brand like Mango a lot rests on the marketing and communication department to assure its welldeserved brand loyalty. Their taste of success comes from a diligent, thought provoking implementation of carefully planned ideas. Starting from the store presentation to lighting, every corner of a Mango store breathes fashion and glamour. A lot of attention is given to space and the “styling” of the store is done like a boutique rather than an international chain so as to make it more welcoming. Usually their creations are exhibited in small proportions so that they are easier to choose and try it on. Well they do have a raring attitude of facing their competitors rather than avoiding them hence one would see a Mango store in the most happening shopping spree destination right beside its competitor. Moreover to assure the extra touch of glamour and “connect” Mango ropes in celebrities and models for its marketing campaigns as well as launch their creations. Now going back to the point of „mixed experiment‟, well nothing can disrupt Mango from moving on to untouched avenues. A new line of business called Mango VIP was opened to pull in people of greater purchasing power. Moreover they have also started pinning their bet on creations directed at young, fashion-conscious men with a brand name of „HE by Mango‟. For international expansions Mango usually takes the path of franchise system and is also currently planning to set up „multibrand‟ stores. The main concern for any textile company is to fight off economic downturns by layoffs, strict cost-cutting etc but surprisingly Mango is far away from these austerities. The reason why is because of its high geographic diversification as a result of which it can efficiently leverage its inefficiencies. Behind every successful brand there is a gifted team and Mango ensures to sustain the team spirit by stressing on human relations. The specially trained staff also rates high on the adaptability meter as well as providing superior customer service. An additional hotline service is also promised by the chain to ensure smooth settlement of customer complaints or queries. They say there are two things that always sell- „faith‟ and „fashion‟. But fashion being overflowed by unpredictable challenges one needs to develop a strong business model with a backdrop of inundated creative talent. No wonder the success story of Mango promises both, but unpredictability always overcomes sound planning. Hence a rightful blend of aggressive yet cautious approach would definitely serve their purpose. But a simple appeal from all the aspiring women out there- Let their promise of always delivering „new‟ continue!

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THE IBS TIMES

QUICK BITES- NEWS THAT CAN’T BE MISSED !

-KRITIKA SETHI

Big Shots… Piramal has nominated its Chief Financial Officer, Rajesh Laddha to represent it on the Vodafone board. Philips announced the appointment of Ada Ratnam as the president of its consumer lifestyle business in India. PepsiCo is trying to recruit former Wal-Mart Stores executive Brian Cornell.

Company Talks… TCS & Mitsubishi Corp will invest $5 million in a joint venture to set up a delivery centre in Japan . Thomas Cook plans to sell 77 pct stake in India unit . Tech Mahindra Q3 profit rises 7.4 pct . Nokia to axe 4,000 jobs, move assembly to Asia . ONGC Q3 profit falls 5 pct, subsidy costs weigh . Bharti Airtel profit disappoints; Africa provides silver lining. Bahrain's Batelco sells India venture after telecom scandal . Bharti Airtel appoints Gopal Vittal as Group Director for Special Projects. HP appoints Jim Merritt as Sr VP-Enterprise Sales .

Economy Speaks… Australia-India bilateral trade poised to reach Rs 2 lakh crore in three years.

Rupee ends up at 49.15; traders expect weak patch. Montek flays current gas pricing methodology. PMEAC likely to finalise report on sugar decontrol in 6 months. Tough to implement Food Security Bill without revamping PDS: Sharad Pawar Jairam Ramesh proposes concurrent audit of rural welfare schemes . Assocham suggests amnesty scheme to unearth black money . Budget 2012: Pranab Mukherjee to present budget on March 16. Budget likely to give states more say in use of rural development funds . New competition policy will bring down food prices: Moily

The Captains of the Ships… RBI Deputy Governer –Subir Gokarn Minister of Corporate Affairs– Veerappa Moily Minister of Coal - Sriprakash Jaiswal

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THE IBS TIMES

FOCUS OF THE WEEK–IRFC TAX FREE BONDS

-POOJA DALAL

It is commonplace knowledge that Indian government is on an investment drive, and it is doing so on a great scale. One of the investment avenues that the Indian government has discovered is the public transport sector. The already largest network of railways is set to expand further. Indian Railway Finance Corporation (IRFC), the financing arm of Indian Railways, has proposed to issue bonds. These bonds are tax free (it is to be noted that, the investor does not receive any deduction on the principal invested but rather on the interest earned from the issue is taxfree.) secured, redeemable, and non-convertible. It has a face value of Rs 1,000 each. Having benefits under Section 10(15) (iv) (h) of the Income Tax Act, 1961, as amended (bonds) summing up to Rs 3,000 crore with an option to retain oversubscription of up to the shelf limit of Rs 6,300 crore.

These bonds are tax free (it is to be noted that, the investor does not receive any deduction on the principal invested but rather on the interest earned from the issue is tax-free.) secured, redeemable, and nonconvertible.

Rajiv Bajaj, managing director, Bajaj Capital Ltd commenting on the expected investor reaction on the issue said, “We are seeing a lot of interest from both retail investors and HNIs.

As a requisite the application for subscription of bonds should be for a minimum of 10 bonds and in multiples of 5 bonds subsequently. The issue opened for subscription on January 27, 2012, and will close on February 10, 2012, or earlier (subject to the issue being open for a minimum period of 3 days), or extension by such period, up to a period of 30 days from the date of opening of the issue, as may be decided by the board of directors or by a duly constituted committee of the company. The bonds shall carry a coupon rate of 8.00% p.a for 10 years (Series I) and 8.10% p.a for 15 years (Series II). A supplementary coupon rate of 0.15% p.a. and 0.20% p.a. on series 1 and series 2 respectively shall be available to Resident Indian Individuals, Hindu Undivided Families and Non Resident Indians on repatriation as well as non-repatriation basis, applying for an amount aggregating up to and including Rs 5 lakh across all series in the tranche (available only to the original allottees). Thus this additional interest will not be available to anyone who buys the bonds from secondary market. This is an essential step that encourages investors to hold on to the bonds till maturity or for a longer period of time and not engage in speculation that may result in any risk to the value of the bond issue (i.e. the depreciation in market value that may result from large scale selling of bonds in secondary market, once they are listed on the stock exchange). The bonds are proposed to be listed on NSE and BSE. Coming to the most crucial feature of the investment that a conservative investor might be interested in; the riskiness of the instrument. The investment as such falls under the safest cadre as it is issued by a Government enterprise and thus default risk attached to it is minimal. But independent rating agencies confirm it too. The bonds have been rated 'CRISIL AAA/Stable' by CRISIL, 'ICRA AAA' by ICRA and 'CARE AAA' by CARE, which indicates highest degree of safety for timely servicing of financial obligations (that includes both interest and principal repayment). SBI Capital Markets Limited, A K Capital Services Limited and ICICI Securities Limited are the Lead Managers to the issue. Indian Bank shall be the Trustee to the issue. The company intends to use the issue proceeds for funding the acquisition of rolling stock and financing the capacity development works in the Indian Railways. The issue has come at a very opportune moment, when investors are expecting interest rates to go down in future due to Indian government‟s effort to control inflation. Rajiv Bajaj, managing director, Bajaj Capital Ltd commenting on the expected investor reaction on the issue said, “We are seeing a lot of interest from both retail investors and HNIs. Trading interest can pick up later when those who have missed the bus want to buy these bonds.” So if you think you have missed the bus, hold your breath a while longer while the issue gets listed on the stock exchange.

Dangling Debit-A debit entry with no offsetting credit entry. Dangling debit occurs when a company purchases goodwill or services to create a debit. When adding the journal entry to financial statements a corresponding credit balance is not reported and cannot be written off. Dangling debit can be received when a company is acquired but is not recorded on the balance sheet.

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THE IBS TIMES

NEWS @ IBS– ALL HAPPENINGS IN IBS HYDERABAD!

- RASHMI KUMARI

Unlike any other typical week at IBS Hyderabad this week was very hectic for IBSites. A week full loaded with CP‟s and NCP‟s, no holidays but still this hectic schedule did not drain out the energy of the students. They welcomed the events with the same excitement and vigour. Let‟s have a quick glimpse at the activities at IBS Hyderabad this week.

EXPRESSIONZZ – WHY I KILLED GANDHI? Team expressionzz- theatre club of IBS Hyderabad came up with a splendid play covering up a very serious and sensitive issue i.e. murder of Gandhi. The play was titled as “Why I killed Gandhi?” The enactment was very informative and unveiled various facts about Indian history which stirred the spirits of all those who witnessed it. Through this play the team delved into the history of India and revealed the fact that what would have happened to India if Gandhi would not have been killed. They showcased a possibility that if Nathu Ram Godse would not have killed Gandhi then there would have been partition of country on 3rd 1948. With the help of various instances the real story of Godse was very beautifully described, about how bravely after killing Gandhi he did not run away from the place but waited to face the consequence. Great job was done by all members of team expressionzz. The play was a huge success as it delivered refreshment with a pinch of social concern.

INFINITY STUDIOS-BIOSCOPE IBS Hyderabad has a pool of talent in all facets of management. One of those areas was revealed by infinity studios. They conducted a Movie making competition. 20 teams registered in the competition out of which only two teams could make it to the grand finale. The two movies which competed fiercely in the finale were „Fusion mein Confusion‟ - a short film made by friends on Sholey Theme, and „Utthan‟ that focused on the life of students at IBS Hyderabad. Winner of competition was “Fusion me Confusion” and were awarded as best directors. The competition was whole was a lot of fun and learning.

VAPS- CRICKET TOURNAMENT VAPS the sports club of IBS Hyderabad organised a cricket tournament „Mirnal Anand Memorial Cricket Tournament‟ that started on 3rd Feb ‟12 and continued up to 5th Feb ‟12. There were a total of 21 teams participating in tournament from IBS Hyderabad itself. The final match was played on 5th Feb ‟12. The series of interesting matches were accompanied by equally lively commentary. On the eve of the final match many of the IBSites joined in to cheer.

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THE IBS TIMES MARKET WATCH

- SWATI VERMA

The upsurge continues to go its way with the stock markets round the world recording positive movement. Equity benchmarks maintained their upward momentum during the week, rising 2% over last Friday. The Rupee continued to rise against the dollar, hitting a three month high of 48.68, driven by strong FII inflows and weakness in dollar in relation to other economies. RBIâ&#x20AC;&#x;s keen watch over the liquidity conditions in the country continues; wherein it does not rule out the possibility of continuance of itâ&#x20AC;&#x;s Open Market Operations (OMO) over the next couple of months to keep liquidity pressures at bay. Conducive monsoons and steps taken by the government are seen responsible for the increase in output. The record production is likely to ease food inflation in the near term and also increase the prospects of exports. India's economy is expected to grow by 7 to 7.5 percent in the current fiscal year ending March, Prime Minister Manmohan Singh said in a speech on Friday. Movers and Shakers of the week

SURGES

%Change

DOWNFALLS

%Change

KSK ENERGY TATA GLOBAL BEVER-

32.7 24.1

STERLING BIOTECH GTL INFRASTRUC-

11.2 8.9

ABAN OFFSHORE

23.4

BHEL

7.1

In a major development in the telecom sector, the Supreme Court has revoked 122 telecom licences issued after 2008 under the tenure of A Raja. While the news is negative for the companies that were involved in the case, it has given a significant boost to the share price of Bharti Airtel as it implies reduced competition and more spectrum availability. Decision regarding divestment of Oil and Natural Gas Corporation Ltd. (ONGC) and Bharat Heavy Electricals has been deferred after a meeting of the empowered group of ministers. It was expected that the new Security And Exchange Board Of Indian (SEBI) guidelines might induce the government to start thinking about the divestment plans once again as the government has raised only Rs 11.45 bn so far of its Rs 400 bn divestment target. Ranbaxy Laboratories is up for a tough time ahead on account of regulatory issues. The company has been accused of making unsafe drugs for its crucial US market. Global Cues: The world stock markets closed the week on a strong note. The US stock markets were up 1.6% during the week due to strong employment data. The unemployment rate fell to 8.3% in January as the economy created 243,000 jobs against an expectation of 150,000. The UK markets too showed some sparks of optimism as business confidence returned easing worries of double dip recession. Amongst the other world markets, France was up 4.6% during the week followed by Germany (up 3.9%). Even Brazil registered healthy gains of 3.7% during the week. However, markets from Singapore and Japan were relatively flat.

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THE IBS TIMES MARKET WATCH 30 JANUARY 2012

31 JANUARY 2012

1 FEBRUARY 2012

2 FEBRUARY 2012

3 FEBRUARY 2012

Sensex

16,863.30

17,193.55

17,300.58

17,431.85

17,604.96

Nifty

5,087.30

5,199.25

5,235.70

5,269.90

5,325.85

DJIA

12,653.72

12,632.91

12,716.46

12,705.41

12,862.23

HangSeng

20,160.41

20,390.49

20,333.37

20,739.45

20,756.98

FTSE100

5,671.09

5,681.61

5,790.72

5,796.07

5,901.07

Gold ($/oz.)

1734.90

1738.50

1746.10

1756.40

1725.90

Crude($/bl)

111.11

111.21

110.62

110.82

INR v/s USD

49.51

50.04

50.09

49.89

49.55

INR v/s EURO

65.42

65.82

65.86

65.44

65.18

Value Date-A future date used in determining the value of a product that fluctuates in price. Typically, you will see the use of value dates in determining the payment of products and accounts where there is a possibility for discrepancies due to differences in the timing of valuation. Such products include forward currency contracts, option contracts, and the interest payable or receivable on personal accounts. Also referred to as „valuta‟.

BUSINESS JARGONS BY – SHILPI KALWANI

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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 TEAMANKIT SHARMA, ATREYEE SENGUPTA ,AVLEEN KAUR SARNA, KRITIKA SETHI, POOJA DALAL,RASHMI KUMARI, SHILPI KALWANI, SWATI VERMA.

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