The+IBS+Times-140th+issue by Stock Yard

ISSUE - 140

20th JANUARY [FRIDAY]

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 get information about Pakistan‟s tension with their army. It is increasingly monitoring Prime minister Yousaf Raza Gilani as for the past few weeks his weak and unpopular coalition government has been increasingly accused on multiple fronts by the opposition, a hostile judiciary and a powerful military. There are many questions that come to our mind when we think about the political scenario of our country like -Why has the formal system of accountability become so dysfunctional? Why is it that the violators feel so confident and subvert the whole system of checks and balances? Get our writers opinion on this issue through Opinion Forum this week. When ever a question is raised about the most trusted bank, SBI strikes everybody‟s mind. It is becoming the largest player in India because of size advantage, ability to post profits is one of the qualifying criteria for gaining acceptance and brand recall in the Banking business. Get all the details through Brand Track column. This week our focus column is on microfinance. With suicidal cases on a rise in the rural scenario one has no option but to blame the crazy little word called „policy‟ which can frame and take up the shape of either a politician‟s delicious platter or a poor man‟s hunger. But supposedly one such policy was formulated to free this hungry man from all its miseries - „Microfinance‟. 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 STORY–PAKISTAN GOVERNMENT- TENSION WITH ARMY

-AVLEEN KAUR SARNA

In Pakistan, the civilian governments never exit gracefully. They have all been given a mighty heave amid crisis. Also there have been times when the Prime Ministers have been trampled by the direct military groups and more often, shunted aside by subtler means. It becomes difficult to champion democracy when its chief beneficiaries are accused of carving private fortunes.

The judges have ruled that Gilani and his government have acted ‘dishonestly’ by not asking the Swiss government to reopen the graft cases against president Zardari and also for the past two years, the government has stubbornly refused to cooperate with what it sees as a blatantly partisan court.

The political opposition, led by former Prime minister Nawaz Sharif now scents an opportunity. Once wary of Pakistan’s generals it has decided to lock arms with them and push the Supreme court to investigate claims against those who are involved in writing the ‘treasonous memo’.

That is the kind of fate, many in Pakistan are increasingly foreseeing for Prime minister Yousaf Raza Gilani because for the past few weeks his weak and unpopular coalition government has been increasingly accused on multiple fronts by the opposition, a hostile judiciary and a powerful military. As a result, in a dark warning to the country‟s politicians, Gilani warned last week that their choice is between „democracy and dictatorship‟. The mounting tension has not been helped by President Asif Ali Zardari‟s two recent visits to Dubai. However, there is little prospect of Pakistan‟s generals seizing direct control as at the moment, the army already controls national security, foreign policy and even elements of the economy. It will resist any temptation to resort to the crude methods recently displayed by their Egyptian counterparts. The more likely outcome is a Supreme court ruling. The top judges have been looking into an American businessman‟s claims that the civilian government sent an unsigned memo calling on the US military to intervene to avert a coup in Pakistan. Henceforth, came a swift trade of blows. Meanwhile, the army publicly chastised Gilani for his remarks and warned of „potentially grievous consequences for the country‟. As a result, Gilani responded by sacking the defence ministry‟s top bureaucrat by replacing him with a trusted aide. As Gilani tussles with the generals, the Supreme court has reheated old corruption charges. The judges have ruled that Gilani and his government have acted „dishonestly‟ by not asking the Swiss government to reopen the graft cases against president Zardari and also for the past two years, the government has stubbornly refused to cooperate with what it sees as a blatantly partisan court. Also, Gilani‟s government finds itself increasingly isolated given the dire state of relations between the two countries, Washington is reduced to the role of a spectator, only able to voice lukewarm support for „constitutional process‟. Over the past year, efforts to shore up the civilian government have foundered as a relationship has once again reverted to one determined by the mutual security needs. The political opposition, led by former Prime minister Nawaz Sharif now scents an opportunity. Once wary of Pakistan‟s generals it has decided to lock arms with them and push the Supreme court to investigate claims against those who are involved in writing the „treasonous memo‟. Henceforth, Gilani‟s government is desperately hoping to reach March, triumph at the Senate elections and announce a general election once the summers searing heat fades. Before then, however the formidable opponents arrayed against it will be determined that this government meet its end as suddenly and as ignominiously as possible.

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FAST-TRACK NEWS

THE IBS TIMES -SHILPI KALWANI

S&P downgrades nine euro zone countries Standard & Poor's downgraded the credit ratings of nine euro- zone countries, stripping France and Austria of their coveted triple-A status but not EU paymaster Germany, in a Black Friday the 13th for the troubled single currency area. In a potentially more ominous setback, negotiations on a debt swap by private creditors seen as crucial to avert a Greek default that would rock Europe and the world economy broke up without agreement in Athens, although officials said more talks are likely next week.

Suicide bomber kills at least 30 in Iraq A suicide bomber disguised as a policeman targeted Shiite pilgrims Saturday outside the southern Iraqi city of Basra, killing at least 30 people and wounding 80, according to authorities and state-run TV. The bomber struck a police checkpoint near a Shiite mosque where many of the pilgrims were headed to mark a revered holy day, the end of a 40-day mourning period known as Arbaeen, Interior Ministry officials said. There were conflicting casualty reports, with state-run Al Iraqiya reporting there were at least 30 people killed and 80 wounded, while Interior Ministry officials told CNN there were at least 10 dead and 30 wounded.

Apple halts sale of iPhone 4S in Chinese cities after scuffle Apple halted sales of its iPhone 4S in Beijing and Shanghai on Friday after scuffles broke out over a delayed launch of the device, sending a shopper hurling eggs at one of its stores in the capital. Hundreds of devout fans along with scalpers braved subfreezing temperatures and camped out overnight, awaiting the phone's debut near the trendy Sanlitun Village shopping mall in Beijing. As dawn broke Friday, the mood turned sour when the store's doors remained shut beyond 7 a.m., when the sale was scheduled to start."Open! Open!" people chanted and booed at the employees inside.

Thin, metal Ultra book laptops ready for take Off At the gadget industry's annual crystal-ball convention, laptops look more like products of Aston Martin than Fisher-Price. With sales of budget laptops plummeting, computer makers are swinging the pendulum toward sleeker, metallic and pricier portable PCs that they're calling Ultrabooks. Many of these were shown for the first time here this week at the International Consumer Electronics Show.

Eco-industry park promotes shared vision On a brownfield site in east London, not far from the site of the 2012 Olympic Park, a new green vision is emerging from the ashes of the UK capital's dirty industrial past. Once the home of a coal-fired power station, the London Sustainable Industries Park (SIP) at Dagenham Dock is creating the largest concentration of environmental businesses in the UK. The concept to transform the area into a clean-tech hub was originally devised by the local government authority (Barking and Dagenham) who were keen to promote jobs and prosperity in the wake of cutbacks at automaker Ford's Dagenham car plant.

Six dead as cruise ship runs aground off Italy Six people died today after a cruise ship ran aground off the Italian coast in an accident which forced the coast guard to evacuate over 4,000 people, media reports said. The Costa Concordia was on a trip around the Mediterranean when it hit a reef near the Isola del Giglio late on Friday. The local mayor said he feared further casualties as it was proving difficult to rescue the last passengers.

Cambist – An individual or broker considered to be an expert in foreign exchange rates. Cambist may also refer to a book providing information, such as exchange rates on world currencies and other mediums of exchange. The term comes from the Latin word „cambiere‟ which means „to exchange‟ .

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THE IBS TIMES U.S. acts against Chinese oil trader The US has slapped sanctions on three firms including a major Chinese oil trader for selling refined oil products to Iran, just days after US Treasury secretary Tim Geithner travelled to Beijing to press for Chinese support on Iran sanctions. The US State Department announced late Thursday night that penalties would be imposed on China's Zhuhai Zhenrong, the Singapore-based oil trader Kuo oil, and the UAE-based independent oil trader FAL.

40 Air India pilots call in sick, flights cancelled in Delhi & Mumbai Cash-strapped national carrier Air India seems to be headed for another showdown with its pilots over alleged non-payment of their allowances. At least 40 of the airline's pilots called in sick this morning, affecting flight operations in Delhi and Mumbai. Operations in Kolkata and Chennai are said to be normal so far. According to reports, at least 14 Air India flights scheduled to depart from Delhi have been cancelled and two have been delayed so far due to the agitation. In Mumbai, two flights have been cancelled while several flights have been delayed.

Beyonce designs shirt for Obama's campaign Singer Beyonce Knowles has designed a T-shirt to raise money for US President Barack Obama's re-election campaign. The 30-year-old, who gave birth to daughter Blue Ivy Jan 7, is one of 22 people to get involved in the Runway to Win campaign by creating a garment, reports contactmusic.com. Beyonce's mother Tina Knowles, who manages the star's House of Dereon clothing line, says that the designs are embellished with many slogans and phrases associated with the president, including 'Yes we can' .

Rare portraits of Gandhi to be auctioned in England A set of three portraits drawn from the life of Mahatma Gandhi by artist Clare Winsten will be auctioned in England on Jan 24 at the Mullocks Auction House. The portraits estimated at 800-1,000 pounds ($1,230 to 1,530) each were drawn during Gandhi's visit to England 1930-31 for the Round Table Conference. Winsten, who was actively involved in social humanitarian causes, was a great friend of Gandhi.

Memogate storm: Gilani, Kayani to come face-to-face Pakistan Prime Minister Yousuf Raza Gilani and Army chief General Ashfaq Parvez Kayani will come faceto-face for the first time since they crossed swords over the memo issue, when a Cabinet committee meets Saturday to discuss crucial issues related to national security and relations with the US. The government has convened a meeting of the Defence Committee of the Cabinet, Pakistan's highest decision-making body for security matters, at the Prime Minister's House on Saturday afternoon, officials said.

Black Friday for Indian cricketers as Australians take control India's cricket tour of Australia lurched to new lows on Friday, which proved to be unlucky January 13.The visitors slumped to a disappointing 161 all out in Perth and then saw David Warner smash the fourth fastest century in Test history as Australia reached 149-0 at stumps on day one. Down 2-0 in the four-match series, the second-ranked Indians went into the third encounter with doubts about the pitch at the WACA after ground staff were filmed on Thursday night drinking beer and walking on the playing surface in bare feet.

Obligor- A person or entity who is legally, or contractually, obliged to provide some benefit or payment to another. In the financial context, the term obligor refers to a bond issuer, who is contractually bound to make all principal repayments and interest payments on outstanding debt. The recipient of the benefit or payment is known as the obligee.

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THE IBS TIMES

OPINION FORUM– WE THE PEOPLE!

While the 'external' dimension of accountability was never integrally linked to the first. In fact, an open democracy has never actually operated in India because every activity and decision of the government was 'open' only to powerful strata of society only.

Our country is one which has several laws, even catering separately, to age old issues such as anti -corruption. Despite this, citizens often feel helpless while dealing with an 'all powerful bureaucracy'.

-ANKIT SHARMA

Anna Hazare's corruption crusade elicited a large scale public response because people have developed hatred against public functionaries. They are perceived as the violators of laws of the land. Like every democratic system, India too has an elaborate system of checks to ensure that every public functionary is held accountable. Unfortunately, the reality is that a majority of 'insiders' are generally able to subvert the formally laid down governance procedures. Instances of arrest and prosecution of, custodians of the Constitution for violations of law even while holding public office, are nothing new to our ears. Members of the union council of ministers have been hauled up by investigation agencies for violating laws and later prosecuted after a fair trial. A lot of Public servants - be they ministers or bureaucrats - the pillars of our democratic system, have all made their presence felt, but for all the wrong reasons. There exists an internal chain of command among them. They are duty-bound to take decisions while dealing with the problems of citizens. However, this system, with a tight, built-in structure of control and supervision, has not yielded proper accountability of decision-makers in India. Why has the formal system of accountability become so dysfunctional? Why is it that the violators feel so confident and subvert the whole system of checks and balances? The key reason is that the system even after so many efforts is still not foolproof. First, only internal mechanisms of public accountability have been defined. While the 'external' dimension of accountability was never integrally linked to the first. In fact, an open democracy has never actually operated in India because every activity and decision of the government was 'open' only to powerful strata of society only. And was kept as a „secret‟ from a vast majority of citizens, who had every right to know it. Though, the Right to Information Act, 2005 and the setting up of Central and State-level Information Commissions has now opened some of the mysterious gates to the offices of decision-makers. This law has extended, to a great extent, the boundaries of accountability in public service. However, if the wall of secrecy is completely broken, they will function with a sense of real accountability. Second, the so existing democratic political system should guarantee that the citizens will be served by functionaries of the state as a matter of 'right'. The Grievance Redressal Bill along with a Citizens Charter, such as the RTI Act, will make public servants more accountable. As observed by some social activists that, 'getting his bijli, sadak or paani' is far more important for the common man. The Grievance Bill, and not the Lokpal, will empower them to get these basic necessities. Now, here the real innovation in enacting a Public Grievances Bill or Citizen's Charter is that the grievance redressal officer will 'be responsible for redressal of citizens' grievances and will strictly be penalized, if he doesn‟t abide by his duties. Our country is one which has several laws, even catering separately, to age old issues such as anti -corruption. Despite this, citizens often feel helpless while dealing with an 'all powerful bureaucracy'. Ordinary citizens do not have any mechanism to hold non-performing bureaucrats accountable to any citizen-body that can oversee the actual functioning of public service. Today the coloqial and well-knit chain of a command and hierarchical supervision system, doesn't really hold any good. Hence, the process of decision-making by public authorities - be it the political executive or a permanent and professional civil servant - should be exposed to public scrutiny. Citizens must have a right to get their job done. The almost non functional and ineffective system can be 'restored' only if offices of the government are 'open', not for powerful lobbyists or touts or middlemen, but for any and every citizen of our country.

OEX-The ticker symbol used to identify index options traded on the Standard & Poor's 100 index. OEX options are listed with a letter code indicating the month code for puts and calls, and a letter code indicating the strike price. Strike prices greater than five points use three letters to indicate which group of 100 the option is trading for.

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THE IBS TIMES

BRAND TRACK– STATE BANK OF INDIA- WITH YOU ALL THE WAY

-POOJA DALAL

We may experiment with new products and services based on how they are promoted in the contemporary media, but there are certain services that we avail based on trust alone. So whenever we choose a banker, it‟s more than a safe keeper that we choose, we enter into a long term partnership to manage our hard earned money. And the most trusted name in this business is none other than the veteran-SBI. It‟s one of the most trusted banking partners of the country and its long history bears witness to the fact. According to the Brand Trust report, SBI is the 11th most trusted brand in India.

Over years SBI has strengthened its presence by acquiring smaller banks and merging its subsidiaries with the parent company. And it has resulted in SBI becoming the largest player in India.

SBI has its origins in British India. It was in 1806 that three presidency banks merged to form Imperial bank of India. After independence Imperial bank was nationalised to form The State Bank of India. Being in India, it gained the advantage of being comparatively shielded from the Global financial shocks and after that it came out even stronger and also made itself valuable in terms of Brand Equity in Global markets. “They may not be bankers to the world yet, but Indian banks have clearly set their eyes on that. In a year that saw the worst recession for the global banking industry with several big daddies collapsing, resilient Indian banks have improved their brand value rapidly.” There are 20 Indian banks in the Brand Finance Global Banking 500- an annual international ranking by UK-based Brand Finance Plc, this year.

Over years SBI has strengthened its presence by acquiring smaller banks and merging its subsidiaries with the parent company. And it has resulted in SBI becoming the largest player in India. Along with the size advantage, ability to post profits is one of the qualifying criteria for gaining acceptance and brand recall in the Banking business. SBI has succeeded to make profits to the tune of $ 2-3 million every year for past 3 years. Its strategy for making profits has been to employ more agents in the economic slump. It is a wise decision to employ human aid to sell out savings account as people are not ready to trust anybody with their money- but rather keep it in their locker‟s where there‟s no increase in its value but there is no uncertainty either. Thus it needed human efforts to convince back the customers into confidence and hopefulness. Its business was brought by agents to bank ratio of 60:40. But now that the storm has passed, and The logo looks like a key the brand value and consumer confidence are at its high, it is trying to bring the ratio to 50:50. hole that may have easily The strategy has worked in SBI‟s favour till now, and now the brand value of SBI stands at st depicted safety and security. $5.67 billion that bags it 171 position in the Global brand value rankings. But rather the white figure in the middle of the blue circle is a man, which symbolizes the customer centric approach of the bank.

Apart from strong finances, its promotional campaigns have also succeeded in creating an emotional connects with the cautious clients. SBI claims to be “The banker to every Indian”. Its ad that stressed the point that SBI has the maximum number of ATM‟s in India went on to win many laurels. It was about an employee-Mohan, who loses a bet with his colleagues about the number of SBI ATMs and thus has to be called CHIMANLAL CHARLIE as a penalty. One of the most misunderstood things of SBI includes its logo. The logo looks like a key hole that may have easily depicted safety and security. But rather the white figure in the middle of the blue circle is a man, which symbolizes the customer centric approach of the bank. And for sure, SBI has catered to the changing demands of the customers and gained acceptance, trust and brand loyalty.

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THE IBS TIMES

QUICK BITES- NEWS THAT CAN’T BE MISSED ! Big Shots…

Kodak files for bankruptcy, plans business overhaul . Government to probe PwC India's sundry inflows . Ravi Uppal leads race to replace AM Naik as MD and CEO of L&T . Management Development Institute appoints Mukul P Gupta as director. Glenmark Pharma appoints Sandeep Gupta as COO . Godrej Properties appoints Pirojsha as MD, CEO .

Company Talks… CCI seeks changes in Competition Act to deal with all M&As . R-Infra approves merger of 5 subsidiaries, demerger of 1 business . Cargo firms like CCI, Allcargo, Blue dart perform even amid economic slump . Ogilvy appoints global brand management head of planning for EAME. Dentsu India announces senior levels appointments . NMDC Chairman N K Nanda appointed head of Australia's Legacy Iron Ore . After UK's Optare, Ashok Leyland close to two more acquisitions . Sidbi‟s Singhwan assumes charge at India SME Technology Services Ltd . IDBI appoints Balkrishan Batra as whole time director.

Economy Speaks… Key WTO members to meet at Davos next week. Bigger outlay for core sector in budget, hints Pranab Mukherjee. States agree to cut in central schemes, expenditure reforms. Hope to present Cos Bill in Budget Session: Veerappa Moily Bihar expects industrial turnaround; $50 billion investments in pipeline. Banks seek nod to float 3 year tax-exempt FDs, infrastructure bonds up to Rs 50,000. LIC fears for its Rs 18k crore loans to state bodies. Financial Intelligence Unit tracks 60 big tax evaders, crackdown next. Banks seek nod to float 3 year tax-exempt FDs, infrastructure bonds up to Rs 50,000 . Reserve money grew 13% y/y in Jan 13 week: RBI .

The Captains of the Ships… Chief Minister of Gujarat-Narendra Modi Army Chief– V.K. Singh External Affairs Minister- S.M .Krishna

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-KRITIKA SETHI

THE IBS TIMES

FOCUS OF THE WEEK–MICROFINANCE: THE MYTH BEHIND THE REALITY

The wise combination by the MFI’s of door-step service, frequent small value repayments, easy credit and group guarantee attracted the so called unlettered the more. However one still cannot deny that MFI’s interests are indeed higher.

The first two - the cost of lending and the cost of defaults which are directly proportional to the amount lent, e.g. an MFI is supposed to incur around a loss of 11$ for lending 100$ because both the costs add up to that hence an interest rate of 11% is supposed to take care of it.

- ATREYEE SENGUPTA

The commencement was a boon but the implementation a bane. With suicidal cases on a rise in the rural scenario one has no option but to blame the crazy little word called „policy‟ which can frame and take up the shape of either a politician‟s delicious platter or a poor man‟s hunger. But supposedly one such policy was formulated to free this hungry man from all its miseries - „Microfinance‟. A tool best described to be working on the methodology of JLG (joint Liability Group) adopted from the Grameen model that originated in Bangladesh. What intrigues me is the fact that how microfinance a tool of social development could become a subject of clever marketing? Well it all initiated from an Ordinance passed by the State Government of Andhra Pradesh the motherland of MFI‟s around 2-3 months back. Indian run MFI‟s then were doing a fine job by balancing between its commercial successes as well as serving its low net worth borrowers and small businessmen. But an unexpected twist arrived when these „orphaned‟ MFI‟s were blamed of „coercive practices, lack of transparency and exorbitant interest rates‟. Here comes the time for a perfect reality check. It all started with the Government programs like the SHG (Self Help Groups) and NABARD which had fair intention of adequately serving the poor but then unfortunately lacked the sustainability and a good business model. Hence to catch hold of the socalled „wealth generating bottom pyramid‟ came the adventurous MFI‟s with its highly planned and aggressive growth strategies. The wise combination by the MFI‟s of door-step service, frequent small value repayments, easy credit and group guarantee attracted the so called unlettered the more. However one still cannot deny that MFI‟s interests are indeed higher. Well there is a fair justification behind. There are basically three costs for them to cover in order to give a better service. The first two - the cost of lending and the cost of defaults which are directly proportional to the amount lent, e.g. an MFI is supposed to incur around a loss of 11$ for lending 100$ because both the costs add up to that hence an interest rate of 11% is supposed to take care of it. The third cost is the transactional costs which is not directly proportional but tends to remain same irrespective of the money lent. Sometimes MFI‟s do not follow an aggressive approach of keeping their cost consistent as a result of which the burden shifts to their low net worth borrowers. However these interest rates are much lower than what is sucked by the other village money lenders and informal sources. But even media along with the State has chosen the „brighter side‟ i.e. by targeting MFI‟s as profit oriented socially exploitative menace for the society. Well is it only me who is seeing these financial institutions in a different light i.e. those who by making a stock market debut are actually taking the plunge of adopting expansionary measures for reaching out to millions of needy clients. Are they left with any other option considering the fact that they are not allowed to take deposits from their clients. But still the pivotal authorities spread their hands in despair, debate and complain that the MFI‟s clients are in a debt trap. If there are no channels to save how one is expected to earn a better livelihood? It‟s high time that the authorities come together to formulate a policy in unison. Let the blame game be discontinued so that our economy gets known for a stronger and transparent system. As a citizen of this country let not my right of envisioning this not so distant reality be cursed by a political perpetrator…. Amen!

Tail Risk-A form of portfolio risk that arises when the possibility that an investment will move more than three standard deviations from the mean is greater than what is shown by a normal distribution. When a portfolio of investments is put together, it is assumed that the distribution of returns will follow a normal pattern.

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THE IBS TIMES

NEWS @ IBS– ALL HAPPENINGS IN IBS HYDERABAD!

- RASHMI KUMARI

After a series of NCP case studies whole IBS geared up for the Lohri celebrations which started Friday evening. Here is a quick glance of the happenings at the campus.

LOHRI & PONGAL CELEBRATIONS Lohri/pongal an extremely popular agricultural winter festival celebrated by the Punjabis and Tamil was celebrated with great vigour in the campus. The three day celebration i.e. 13th -15th Jan began with thrilling performances. Starting with traditional Andhra dance to Punjabis bhangra and gidda along with a short play made the festive occasion all the more spectacular. Following this a procession was taken from Mess 1 to Taj garden where Lohri bonfire took place and then the „dhol‟ night which rejuvenated the students. The next day kite flying competition was organised and finally puja on 15th Jan. The festival ended with a Rangoli competition on Sunday evening.

MACON-GUEST LECTURE Macon- The E-cell of IBS Hyderabad organised a Guest lecture by the CEO of red bus Mr. Phanindra Sama. He discussed with students how B-plan of red bus was conceptualised, problems faced and how he went ahead in making it successful.

INFINITY STUDIOS-LAKSHYA On viewer‟s demand and to celebrate Hrithik Roshan‟s birthday infinity studio showcased one of his all time movie “Lakshya” on 15th Jan which was enjoyed by the IBS students a lot

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THE IBS TIMES MARKET WATCH

- SWATI VERMA

The New Year seems to have started on a good note for India Inc. after the long and tumultuous scenario it went through the last year with inflation easing and industrial output recording an upward swing, though The Sensex fell to close at 16,154.62. The Nifty ended at 4,866.00, down close to 30 points. Food prices fell for the second consecutive week (ending December 31st) as food inflation remained in the negative zone at -2.9%. In the previous week, food inflation stood at -3.36%. This is a sharp contrast to the above 19% levels seen in the corresponding week of 2010. Further, with a recovery in manufacturing output, industrial production (IIP) grew by 5.9% in November, 2011. Output of the manufacturing sector, constituting over 75% of the index, went up by 6.6% in November, compared to a growth of 6.5% November 2010. Power generation grew by 14.6% in compared to 4.6% previously. Production of consumer goods increased 13.1%, as against a benign growth of 0.7% in November 2010. Better IIP numbers and rate cuts going forward may cut the negative sentiment in the country. The concluding week saw an all round positive performance from all the sectors except for IT. While Realty was up 13.1% during the week, Metals' pack was up 9.8%.power and capital goods stocks too registered healthy gains and were up by 8.6% and 8.5% respectively. The Rupee is expected to strengthen in the near future and hence, IT stocks could witness an upsurge. Also, the Banking Sector seems to have been taking a hit as itâ&#x20AC;&#x;s NPAs (Non Performing Assets) have increased by 100% especially in the Infrastructure and Real Estate sectors ; so one could expect a downfall in these sectors in the future. Movers and Shakers of the week

SURGES LANCO INFRATECH KSK ENERGY VENJAI CORP

%Change 40.9% 34.8% 34.5%

DOWNFALLS INFOSYS LTD TCS LTD REI AGRO

%Change 8.7% 7.2% 6.3%

Industry major, Infosys recently released its third quarter results for the financial year 2011-2012 (3QFY12). The company reported a 14.8% quarter on quarter (QoQ) growth in its total revenues. It hinted on a slowdown in the IT industry on account of troubles in the Euro zone as well as slower growth in developed markets. National Thermal Power Corporation (NTPC) is planning to enter into power distribution business across the country. It had earlier proposed to set up distribution networks in Kanpur, Patna and Mangalore among others. Taro Pharmaceuticals is evaluating an offer by Sun Pharma over complete buyout. Presently Sun Pharma owns 66% in Taro. Sun Pharma had made an offer in October last year announcing a cash offer of US$ 24.5 per share for the remaining stake. The consumers of coal have strongly opposed the new pricing system by Coal India. The new pricing system seems to be increasing the cost of coal drastically for everyone.

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THE IBS TIMES MARKET WATCH 9 JANUARY 2012

10 JANUARY 2012

11 JANUARY 2012

12 JANUARY 2012

13 JANUARY 2012

Sensex

16,165.09

16,175.86

16,037.51

16,154.62

Nifty

4,849.55

4,860.95

4,831.25

4,866.00

DJIA

12,392.69

12,462.47

12,449.45

12,471.02

12,422.06

HangSeng

18,865.72

19,004.28

19,151.94

19,095.38

19,204.42

FTSE100

5,612.26

5,696.70

5,670.82

5,662.42

5,636.64

Gold ($/oz.)

1616.00

1636.20

1643.00

1640.50

1639.70

Crude($/bl)

112.51

112.98

112.90

112.93

INR v/s USD

52.98

53.31

52.78

52.45

52.39

67.33 67.84 67.45 66.79 66.81 INR v/s EURO YUPPIE-A term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, afflu-

ence and business success. Coined in the 1980s, the term yuppie was used as a derogatory title for young business people who were considered arrogant, undeservedly wealthy and obnoxious. Yuppies were often associated with wearing high fashion clothing, driving BMWs and gloating about their successes. The term has become less of a stereotype and now promotes the image of an affluent professional.

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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