ISSUE - 100
10th DECEMBER [FRIDAY]
EDITOR’S DESK
- KHYATI PARIKH
Just when I thought that the placement scenario in campus this time is much brighter, when newer companies with challenging profiles and lucrative packages are pouring in, when the world is slowly slipping away from the crippling recession that had it in its vice-like grip since 2008, here comes bad news again, The Irish Economic Crisis! Ireland would be the second country among the Euro Zone nations to receive the financial support from the €750 billion (nearly a trillion dollars)—the finance safety net, spread by the EU and the IMF six months ago to help Euro zone nations facing liquidity crisis, Greece being the first. Well, how can India be left in peace when everything around it goes astray? Yes, I‘m talking about the LIC Housing Finance Scam! Imagine an institute of such great repute (read LIC Housing Finance) being accused for housing employees who take bribes to sanction corporate loans! God alone knows when will corruption fade from the chapters of Indian history! On one hand, we, as a country, boast of being insulated from the recent global financial crisis, while on the other, we have such scams, making us feel ashamed and embarrassed for our mishappenings! Well, it goes without saying that Congress is in deep waters as more and more scams are getting unearthed, yet, we cannot ignore the negative impact of ―bribe-for-loan scam‖ on the Indian financial markets, with most of the realty stocks on the BSE loosing 30% on an average. But, where India has become a story book of scams, starting from Commonwealth Games (CWG) scam to Adarsh Housing scam, the recently probed 2G Spectrum scam and now, the LIC Housing Finance scam, it can also boast of a few success stories, and one of them is rightly, the Asian Games 2010. Somdev Devvarman has made us proud by being the first Indian tennis player to have claimed Gold medal at Asian Games 2010 in China in men‘s doubles tennis event as well as the first one to carve out his glorious path to men‘s singles finals, and there were many other Indian athletes making us feel proud of them! In all, India came out victorious by being 6th in the Asian Games with a tally of 64 medals, out of which 14 are gold, 17 silver and 33 bronze! A lot has been talked about the UID Project: Aadhaar, which will soon come out with its card, that will provide unique identification to its cardholders. The citizens of India surely need such an all-encompassing identity card as the unique identification number in the card will be linked to their demographic and biometric information, which can be used to identify themselves anywhere in India, and also to have an easy access to a host of benefits and services. India‘s dream of financial inclusion across the country can be realized through this card as it provides the requisite identity infrastructure. This issue also focuses on a dead brand known as LML Vespa (the scooters industry) and its lost legacy. The Focus section is highlighting the Owner of one of the world‘s largest Home Furnishing retail chain. All in all, the 100th issue of The IBS Times is unique in every special way. Hope you make most of it! Cheers, Khyati Parikh Editor
EDITOR COVER
1 OPINION 2 BRAND
5 FOCUS 6 NEWS @ IBS
8 9
FAST-TRACK
3 QUICK BITES
7 MARKET
10
THE IBS TIMES
COVER STORY– IRISH DEBT CRISIS
“Everyone
had big
homes, big cars et al. BAM!! And then the bubble burst”
“We are suffering so
the bondholders don’t suffer—its capitalism gone mad,” said one of the protestors.
-SANYA DHAWAN
Everything was sound and in good shape till about two years ago in Ireland. The Irish government had a deficit of only 12% of the GDP, the lowest in the EU (compared to 40% for Germany and 60% for France). The coffers of the Irish government were pretty full and the government also was not overspending. But as it is often said, nothing but change is permanent in life; we saw Irish banks taking wrong and absolutely unjustifiable moves by lending more and more money to developers without giving due thought and consideration to their decisions. What was being feared by all ultimately emerged true, and we could witness the bubble developing in the country. Everyone had big homes, big cars et al. BAM!! And then the bubble burst. Ireland‘s entire banking system and national finances have collapsed. With the collapse of Ireland's property market, many of those who bought real estate in the good times are now in negative equity—with their houses worth less than the loans they took out to buy them. Last year, 25% of households were in arrears on utility bills, mortgage payments or other loans, compared to just over 10% a year earlier, according to a survey released by Ireland's Central Statistics Office. Some 11% of households have gone into debt to meet ordinary living expenses, as disposable income per household plunged drastically by 6.3% according to the survey. Unemployment raised its level from 4% to 14%. Public-sector workers have seen a dip in their salaries by 13% over the last three years. Poverty is on the rising front. The value of the bonds fell on the concern that the government will abandon a pledge to protect senior bondholders and force them to share the bailout costs. Hair cut budgets have already sucked billions of Euros out of the economy and the pockets of the middle class. The country has fallen into a recession. Last week, the Irish government unveiled a new four-year belt-tightening plan to repair public finances broken by recession and the cost of propping up the country's beleaguered banks. The measures are draconian. The four-year plan includes €10 billion in expenditure cuts and €5 billion in tax measures to slash the country's budget deficit below the EU limit of 3% of GDP by 2014 from an expected 32% this year. The €15 billion cuts are equivalent to roughly 10% of GDP. The government plans to shed nearly 25,000 public-sector jobs, cut welfare spending and reduce the minimum wage. A new property tax is planned to be introduced, water charges imposed, and the tax base expanded to bring in lower-income earners. In addition, Ireland is currently negotiating an estimated €85 billion bailout with the European Union and the International Monetary Fund (IMF). Ministers argue that such radical measures are needed to tame Ireland's gargantuan budget deficit, which this year stands at 32% of GDP—the largest in Europe—and to reassure investors who have stampeded out of Irish government debt. Moreover, its problems have prompted fears of contagion spreading to countries such as Spain and Portugal, and potentially threatening the entire Euro Zone which gives all the more reason for the Government to take strict action to avoid a depression. The common man, on the other hand, cannot cope with the changing scenario. To show their anger, last week, over 45,000 people took part in the demonstration organized by the Irish Congress of Trade Unions, an umbrella group for unions representing some 800,000 workers across the island of Ireland that wants the government to do more to generate growth and jobs. "We are suffering so the bondholders don't suffer—its capitalism gone mad," said one of the protestors. "We should default—the idea that the workers of this country should pay for the gambling of the billionaires is disgusting," said another. "It's going to be a big shocker," said a University student, ―You can really feel the anger now." To close, I think it would be apt to say that only time can stand as a testimony to the plethora of claims, anticipations and guesses being made by everybody, today, regarding the fate of the Irish economy and also whether its aftermaths would ultimately trickle to other nations in the EU soon.
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FAST-TRACK NEWS
THE IBS TIMES -SHILPA MALHOTRA
CBI uncovered LIC Housing Finance Scam
The Central Bureau of Investigation (CBI) has unearthed a fake housing scam running into crores of rupees arresting CEO of LIC Housing Finance and Top executives of some of the public sector banks and financial institutions for taking bribes to sanction corporate loans. The racket involved a private financial services company, its CMD and other associates who were bribing senior officials of public sector banks and financial institutions and gathering confidential business information.
Navi Mumbai Airport gets green signal from Environment Ministry
The new international airport at Navi Mumbai has been given a go-ahead after a compromise between the Environment and Civil Aviation ministries and City and Industrial Development Corporation of Maharashtra Ltd (CIDCO) after a series of environmental issues concerning the diversion of river Gadhi. Following the approval, the Airports Authority of India (AAI) is seen keen in partnering the recently cleared Rs 10,000-crore project but not bid for the same.
Nitish Kumar jubilates in Bihar
Bihar Chief Minister Nitish Kumar on Wednesday steered the National Democratic Alliance (NDA) to a historic electoral triumph by bagging 84 % of the seats and decimating the Lalu Prasad-led opposition while virtually erasing the Congress from one of India's most populous states. Janata Dal-United (JD-U)-Bharatiya Janata Party (BJP) rode away 204 of the 243 states leaving behind 5 seats for Congress. As wild celebrations broke out in the JD-U and BJP headquarters in Delhi and Patna, BJP leaders stepped out one by one to hail the victory.
Kiran Reddy sworn in as AP Chief Minister
Nallari Kiran Kumar Reddy, a YSR loyalist, was sworn-in as the Chief Minister of Andhra Pradesh, following the exit of K Rosaiah from the post as Congress prepared to face challenging times ahead in the state. The 77year-old Congress veteran had made a surprise exit from the post in the midst of rebellion by YSR's son Jaganmohan Reddy. The move is also being seen as Congress' political management ahead of the submission of the Srikrishna panel report on the issue of Telangana by December 31.
Steel companies set to jointly acquire assets abroad
Frontline steel companies in India have decided to form a syndicate to acquire assets abroad and fight the competition posed by their Chinese counterparts. The planned move will increase the supply of raw materials and give a boost to the manufacturing sector. The syndication is likely to be formed under the state-run Steel Authority of India (SAIL), which is confident that the bargaining power of Indian steel companies will improve if they can join hands and pool in their resources.
Mobile number portability could trigger post-paid rate wars
Tariffs of post-paid customers are expected to fall, as telcos particularly new operators brace for a price war with the launch of Mobile Number Portability (MNP) from Rohtak in Haryana. MNP allows customers to retain their number while changing their operators. Telcos say tariffs could be cut by up to 20%. While post-paid customers constitute only 5% of the total customer base of 670 million, they make up over 15% of the revenues. New private operators say that they will now use this one-time opportunity to garner high-ARPU customers by offering them a better network.
CCI imposes Rs. 1 cr. fine on Kingfisher Airlines
Competition watchdog CCI has imposed a fine of Rs 1 crore on Kingfisher Airlines for not furnishing information it sought during the investigation into the carrier's proposed strategic agreement with Jet Airways. The proposed agreement between the two airlines had come under the CCI scanner after a flier filed a complaint saying that if a pact was inked, the two carriers would dominate the market leading to cartel formation. CCI's Director General has been probing the case to ascertain if indeed the pact would lead to an unfair market.
Volatility Smile– A common graphical shape that results from plotting the strike price and implied volatility of a group of options with the same expiration date.
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THE IBS TIMES Sun Pharma loses generic challenge in US Court
Sun Pharmaceutical Industries has lost an opportunity to launch the generic version of a schizophrenia drug that had generated revenue of $4 billion (Rs 18,150 crore) in the United States market in 2009. It, with some other generic drug majors, lost a patent battle against Japanese drug major Otsuka and its US business partner, Bristol Myers Squibb (BMS), last week. A favourable decision in this regard would have seen the company launching a low-cost version of Abilify (aripiprazole), during the year.
M&M in pact to buy Ssangyong for $463 million
Mahindra & Mahindra (M&M) signed a definitive agreement with Ssangyong Motor (SYMC) for acquiring 70% stake in the Korean sports utility vehicle (SUV) maker for $463 million (around Rs 2,107 crore). The acquisition will be in new shares worth $378 million and corporate bonds worth $85 million. Mahindra and Ssangyong deal will result in a competitive global UV player. Together with its financial capability, Mahindra offers competence in sourcing and marketing strategy while Ssangyong has strong capabilities in technology.
Sahara barred from tapping stock market
SEBI has barred Sahara Chairman Mr. Subrata Roy and some of the Sahara Directors from raising money by issuing securities. The move puts a question mark on the long-awaited IPO by the group‘s real estate arm, Sahara Prime City, since September 2009. The SEBI order follows complaints by investors that the draft IPO prospectus did not disclose that two group companies, Sahara India Real Estate Corporation (SIRECL) and Sahara Housing Investment Corporation (SHICL) — were issuing convertible bonds.
NTPC enters into joint venture with ADB to develop renewable energy for India
The Asian Development Bank (ADB) signed a joint venture agreement with India's NTPC Ltd. and Kyushu Electric Power Company of Japan to develop and operate 500 mega watts of renewable energy projects in India in the next three years. The new joint venture company will help India achieve its goal of reducing the country's dependence on fossil fuels, will cut greenhouse gas emissions and improve its energy security. Kyushu Electric Power is an integrated private sector generation, transmission and distribution company. The company owns and operates about 20,024 mega watts of power generation capacity.
RBI contemplates cap on bank investments in Mutual Funds
India's Finance Ministry and the Reserve Bank of India (RBI) have started discussions to raise the cap on foreign fund investments in debt from $20 billion a year. It is the third consecutive measure by the central bank to ensure liquidity in the market this year. The bank fears that the sudden withdrawal of funds by banks from mutual funds in times of liquidity shortfall could cause a systemic risk by spreading it to capital markets.
Bopanna-Qureshi pair receives Humanitarian Award
Their message of ‗Stop War Start Tennis‘ fetched Indian Davis Cupper Rohan Bopanna and his Pakistani partner Aisam-Ul-Haq Qureshi the Arthur Ashe Humanitarian Of The Year Award during the ATP World Tour Finals here. The two players have been playing with the message of ‗Stop War Start Tennis‘ for quite some time on the Tour and in Grand Slams. They rose to prominence by reaching the final of US Open where they ended runners-up to the legendary Mike and Bob Bryan.
Indian athletes end Asiad campaign on a high with 14 gold medals
All eyes were on shooters before India landed at Guangzhou and not a single person was talking about athletics given the level of competition in Asian Games. But, in the end, it was the track and field that took India surging past all their past records in Asian Games history. With 5 gold medals, Indian athletics took India to its best performance in nearly 6 decades. India raced to their best Asian Games performance since 1951.
Blotter - A record of trades and the details of the trades made over a period of time (usually one trading day). The details of a trade will include such things as the time, price, order size and a specification of whether it was a buy or sell order. The blotter is usually created through a trading software program that records the trades made through a data feed.
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THE IBS TIMES
OPINION FORUM– AADHAAR: UNIFYING INDIA!
“The ID is fundamen-
tally being prepared to identify Indian citizens so that better security can be provided by identifying illegal immigrants and terrorists”.
“The likely benefits that will result from it range from making subsidies available to the deserving person to opening bank accounts, giving new phone line connections and to my greatest happiness it can also act as an electoral card!”
-TANIYA BANERJEE
For quite some time now we have been hearing about the national ID system and I wondered what the entire hype was all about? I believed that it was just one of those regular IDs that we carry with ourselves regularly like the driver license or the PAN card. The question that bothered me was that why do we need to add one more such ID proof to the already overflowing list? Why was it that all of a sudden we needed to follow on in the footsteps of America and come out with something on similar lines of the Social Security Number (SSN)? After careful consideration and thoughts I realized that a possible answer could be unifying the entire country! We, the most privileged of the lot, have access to everything starting from a permanent account number to a driver license but what about the 72% of people living in the rural areas of our country? As most of them do not have access to these benefits they always end up paying a huge sum whenever they need to be identified. This Aadhaar card contains a 12-digit unique identification number which will be linked to all demographic details and bank accounts. The main reason for coming up with this idea was to make life easier for the Indians who had to face the regular crisis of identity thefts in forms of various issues like corruption, the huge geographical aspect of the country too made it increasingly difficult with people at a loss when they had to shift from one state to another. I personally had to bear the brunt of it too. When I shifted from my native state to the state of Orissa I had to go all over the entire tedious process of making a voter id card. This card therefore comes with a promise to make all of this easier. The likely benefits that will result from it range from making subsidies available to the deserving person to opening bank accounts, giving new phone line connections and to my greatest happiness it can also act as an electoral card! It will also lead to lesser exploitation of the weak and the ignorant. Take for example the case of Maharashtra; it recently weeded out 2.9 million bogus ration cards, launching an identity verification drive to make the system foolproof. The residents had to provide documents like electoral roll numbers, electricity bills and rent receipts to receive a ration card which resulted in the exclusion of numerous families who lacked the required documents. These are the kind of issues that Aadhaar aims to reduce. It is trying to unify the entire country, and it will to a certain extent plug the leakages in the welfare system and make sure that they reach the intended beneficiaries. Moreover, because of its universal appeal in giving a unique identification code to one and all, it will help in simplifying and doing away with the cross sectional and hierarchical categorization of the masses which will facilitate streamlining of the entire system. The ID is fundamentally being prepared to identify Indian citizens so that better security can be provided by identifying illegal immigrants and terrorists. However, the real power of the ID is in its ability to provide ease of identity establishment to Indian citizens when accessing a variety of governmental and private-sector services. Though the skeptics have come up with various issues related to Aadhaar ranging from that it is an extremely uphill task to provide a unique identification code to the huge population of the country to the government supposedly wasting Rs. 1.5 lakh crore, all the speculations will rest once it is implemented throughout the country and the benefits far outweigh the disadvantages.
Alligator Property- In real estate, when the cost of mortgage payments, property taxes, insurance and maintenance on a rental property is greater than the income it brings in. If this situation is not corrected, it will eat up all of the owner's profit, leaving him or her with negative cash flow.
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THE IBS TIMES
BRAND TRACK—LML VESPA: THE LOST LEGACY
-RAJAT MONGA
This article of brand track will be a little different. Unlike the previous articles where we talk all about the successful brands, in this edition I take a look at LML Vespa. Vespa is an interesting brand, firstly, because it was a brand which was once bestselling and now dead and secondly, because of its unique history in India. Vespa made its entry into India in 1960 in collaboration with Bajaj Auto. The technical collaboVespa made its entry into India in 1960 in collaboration with Bajaj Auto. The technical collaboration ended in 1971 and Bajaj and Vespa parted ways.
ration ended in 1971 and Bajaj and Vespa parted ways. Vespa at that time was considered an iconic scooter brand globally and the brand was owned by Piaggio. Piaggio then joined hands with the Kanpur based Lohia Machines Ltd. (LML) in 1983 and started to roll out the Vespa range of Scooters. Though Vespa came to India with a more powerful 150cc scooters it could not meet success as Bajaj Chetak was ruling the market. But launch of LML Select in 1993 was an instant success. During 1991, LML was facing its worst financial crisis and the company was referred to BIFR. It was Vespa NV that brought the company back to black. By 1998, LML was the second largest scooter manufacturer in India with a market share of over 28%. But the JV between LML and Piaggio did not last long. In 1999 the JV was called off with LML buying Piaggio's stake. LML decided to go alone with the scooters. It dropped the brand name ‗Vespa‘ and continued selling LML NV and LML Select brands. But during these times, the entire two wheeler industry was redefined. Scooters made way to Motorcycles. Sensing this shift, LML ventured into motorcycles. In 2003, LML launched its first bike in India branded as Freedom. But the entry into motorcycles was a disaster. LML was falling into severe financial crisis. A labor unrest at the
“But like Chetak, Ve-
spa was also myopic. It failed to see the sweeping changes that were happening to the two wheeler market”.
Kanpur plant proved to be the last nail. In 2006, LML closed down the operation of its Kanpur plant. And it was the end of Vespa Scooters. When scooters were considered a work- machine, it was Vespa which redefined the market. Vespa was stylish and contemporary. It was elegant, youthful and more balanced compared to the sturdy Chetak. While Chetak was the price warrior, Vespa was always the premium scooter. Vespa was commanding the premium for the looks since the technology that drove both Chetak and Vespa was the same.
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THE IBS TIMES
QUICK BITES- NEWS THAT CAN’T BE MISSED !
- SUPRIYA MAMGAIN
Big Shots… GM & NISSAN bring smart phone applications to cars. Oracle awarded $1.3 billion in SAP copyright case. Cemex to seal buyout of Murli Cement for $550 million. Zensar Tech acquires American co. Akibia in $66 million deal. M&M inks Ssangyong deal for $463 million. Company Talks… Alcatel –Lucent ramp up Indian operations. ICOMM Tele plans Rs.250-cr IPO to fund capex. Essar Shipping and Ports to pump in Rs. 5,500 crore by FY 2013. Yamaha FZ1 coming in December. Coal India Ltd (CIL) net profits up by 29% to Rs. 4020 crore for H1. SKS Microfinance wants to create a Rs. 1000 cr fund. LIC Pension Funds suffered a loss of Rs. 14,000 cr. Microsoft unveiled its new control free gaming device KINECT. Volvo launches the awaited SUV Volvo XC0. Zensar Technologies USA and PSI Holding, USA (Akibia) entered into a definitive agreement for Zensar to acquire Akibia for a consideration of around $66 million. Bharat Heavy Electricals Ltd. (BHEL) on Monday announced that it had entered into an agreement with GE India Industrial Pvt. Ltd. for manufacturing water treatment equipment. Economy Speaks… Irish rescue package lifts Indian Markets by 1.9%. Rupee drops by 13 paisa to close at 45.70 against US dollar. MFIs want banks to create a Rs. 1,000 crore fund. Parliamentary panel asks government to push up private role in grain storage. Korea, Ireland trigger crash; Sensex slides 3% intra-day. SEBI asks Asset Management Companies (AMCs) to keep off realty debt. Foreign account facilitators under income tax scanner. Faced with the shortage of natural gas, Tata Chemicals announced that it had decided to put on hold the Rs.3,800-crore expansion plan of its urea manufacturing unit at Babrala, Uttar Pradesh. The Captains of the Ships.. CMD, Shipping Corporation of India Ltd. - Mr. Sabyasachi Hajara VP, Marketing Strategy, Coca-Cola - Mr. S. Sthanunathan Vice-Chairman, Kotak Mahindra Bank - Uday Kotak Chariman, Suzuki Motors - Mr.Osamu Suzuki CFO, Jindal Steel - Mr. Sushil Maroo Global Head, Standard Chartered Bank - Mr. Shayne Nelson CEO, Alcatel-Lucent - Mr. Ben Verwaayen
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THE IBS TIMES
FOCUS OF THE WEEK– INGVAR KAMPRAD— A BORN ENTREPRENEUR
- RICHA SHARMA
The idea of self-sufficiency by Ingvar Kamprad revolutionized the growth of IKEA and made it one of the largest Home Furnishing retail chain in the world. This innovative idea gave him the opportunity to cut cost on everything except idea and quality. This provided customers higher quality with low price. Kamprad with entrepreneurial spirit in his blood made his venture IKEA a successful company, with over 313 stores in 38 countries, employing over 127,000 people and generating over 23.1 billion sales annually. Kamprad was born in 1962 in the Smaland province of Southern Sweden, where people are known for working hard, living frugally and making the most out of limited resources. When "Part of creating a better everyday life for the many consists of breaking free from status and convention - becoming freer as human beings”
Ingvar started his furniture business in the late 1940s, he applied all the lessons learned in Smaland to home furnishings market and established a brand which is known across the world. He founded IKEA at the age of 17 where the acronym IKEA stood for his name initials and the farm he grew up. (Ingvar Kamprad Elmtaryd Agunnaryd) Kamprad‘s vision has been the driving force behind IKEA‘s success. He strongly believed that his company stood not only for improving people‘s lives, but also to improve themselves. Idea of self-service and ease of assembling furniture for customers was cost effective and provided opportunity for self-sufficiency. In words of PR manager of IKEA, Shirley Jones - "We will supply you with the design, the inspiration, the knowledge and the basic tools; your responsibility then is to go home, build it and use it." Kamprad a great philanthropist and his words "Part of creating a
He strongly believed that his company stood not only for improving people’s lives, but also to improve themselves.
better everyday life for the many consists of breaking free from status and convention - becoming freer as human beings." proves it all. The same is reflected in IKEA philosophy where it encourages you to take the control. IKEA enjoys the reputation for being high quality and sturdy, at the same time it is very affordable. The founder of IKEA, Ingvar Kamprad is a magnificent personality; he takes subway to work, drives an old Volvo and was one of the Richest Man in the world in 2004. Ingvar with strong foundation has outreached the parameters of success.
Alpha Risk-The risk in a statistical test that a null hypothesis will be rejected when it is actually true. This is also known as a Type I error. The best way to decrease alpha risk is to increase the size of the sample being tested with the hope that the larger sample will be more representative of the population.
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THE IBS TIMES
NEWS @ IBS– ALL HAPPENINGS IN IBS HYDERABAD!
-NITIKA THAKUR
INTRA COLLEGE B-PLAN COMPETITION: MACON The event was conducted on Saturday, 27th Nov 2010. Each team had to submit the executive summary of the B-Plan to the panel members which shortlisted a few teams for the presentation. The selected teams had to give a presentation of the B-Plan to the Venture Capitalist and they evaluated them. The winner team, which is none other than our very own—Blink and Done (www.blinkndone.com) will be representing IBS in the Inter College B-Plan competition in Trishna 2010. ACUMANIA: KAIZEN Kaizen conducted the event ACUMANIA in which 20 teams participated and a questionnaire constituting Sudoku and crossword was provided to each team which had to be solved in 7 mins. 6 teams were shortlisted on the basis of the scores and each team had to bid for the question they were asked, if they answered it correctly they got the double amount as cash. In the second round the teams had to bid for the questions before the round started and if they answered correctly the other team had to give the cash amount what they had bid for. The winners of the event were Manohar and Gaitry Bose. The event was conducted in the auditorium on Friday 26th Nov, 2010 at 6:30 p.m. IMMANOVATE: MAVERICK Maverick organized IMMANOVATE in which 6 teams participated. The event had two faculties as judges Prof. Shaidendra Bisht and Prof. G.K Srikant. Each team had to prepare a presentation to launch a new flavor of coke. The presentation was followed by an ad which each team had to present either by enacting or through a video. The winners of the event will be representing IBS in Trishna 2010 for the MAVERICK event. ELATION 2010: POORNASUTRA CLUB Elation is a fun management game which involves team work, promptness and time management. The main theme of the event is to check the team skills in the individuals and the promptness towards certain situations. The event was organized in Auditorium on Saturday 27th Nov 2010. Two alumnus Niraj Jain and Saurabh Kumar Singh from 2009 batch participated with the students in the events. This event gave students a platform to interact with the alumni and helped them in building networks. The event started with an elimination round in which teams had to identify brands, celebrities and objects from a collage. 4 teams were shortlisted after the elimination round who played with the alumni. The first round was a relay race in which each team member had to perform a task which was timed. The Second round was interpreto-mania where alumni were shown a video and questions were asked from the team members related to the video. The final round was the return of mummy with a lemon where each team had to make a mummy. The winners of the event were Neha, Anurag and Summit.
EQUITY RESEARCH SESSION: VRIDDHI CAPITAL Vriddhi Capital organized a session on equity research by Sanjay Panda, a research Analyst from Karvy. The session was very enlightening for students who want to take their career as a research analyst. Mr. Panda discussed about the various techniques of equity research and about the factors which helped in the analysis of a stock. The session was conducted on Thursday,
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THE IBS TIMES MARKET WATCH
- SAINYAM KUMAR
Another scam comes into the light and the stock markets take a hit for another week and this time it was BSE-REALTY who took the beating. The Sensex slipped by 4.1% while Nifty shed 4.3% during the week. The government‘s attempts to ease inflation seem to be yielding results much slower than expected. The food inflation, which stood at 10.3% during the previous week, eased to 10.15% according to the latest figures while the fuel inflation remained unchanged at 10.57%. Moving on to the corporate news, the ―bribe-for-loan-scam‖ unveiled that public sector banks (PNB, Central Bank of India and Bank of India) were taking bribes from a private financial services company (Money Matters Fin. Services Ltd.) to extend loans to the construction companies (HCC, India Infoline and LIC Housing). The impact was so intense that the top three losers of the week were real estate stocks and they lost 30% on an average. Auto scrips had a lot happening in their backyard as well. Tata Motors plans to set up a second factory in Bangladesh with in six months and launch CNG run trucks with in a year. This has sent a positive signal for the long term investors. Mahindra & Mahindra plans to acquire up to 5.5% stake of BT in Tech Mahindra in an inter-se transfer of shares over time. The Movers & Shakers of the Week
SURGES
% Change
DOWNFALLS
%Change
Jain Irrigation
6.7
Hind Construction
-32
Torrent Power Ltd.
4.3
India Infoline
-30.3
Glenmark Pharma
3.4
LIC Housing
-29.7
Among BSE-Indices, barring BSE-IT, all the other major indices lost during the week. Both BSE-Midcap and BSE-Smallcap underperformed the Sensex. The bear run in BSE-Realty continues for another week and there are no signs of recovery. Global Cues: Almost all the major global markets ended the week in red. Japan (0.2%) and Germany (0.1%) were the only two markets that managed to end the week above the ―zero-line‖. The rising worries about the Euro-crisis have fuelled the fears that Portugal and Spain might follow the suit of Greece and Ireland. The major losers of the week were Brazil (3.8% down) and France (3.4% down).
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THE IBS TIMES MARKET WATCH 22 Nov 2010
23 Nov 2010
24 Nov 2010
25 Nov 2010
26 Nov 2010
Sensex
19,957.59
19,961.87
19,459.85
19318.16
19,136.61
Nifty
6,010.00
5,934.75
5,865.75
5,799.75
5,751.95
DJIA
11,178.58
11,036.37
11,187.28
-
11,092.00
HangSeng
23,524.02
22,896.14
23,023.86
23,054.68
22,877.25
FTSE100
5,680.83
5,581.28
5,657.10
5,698.93
5,668.70
Gold ($/oz.)
1,366.40
1,376.50
1,372.60
1,375.10
1,364.20
Crude($/bl)
80.96
80.14
81.16
82.55
-
INR v/s USD
46.0950
45.6613
45.8818
45.9628
45.8188
INR v/s EURO
63.0695
62.5569
62.0671
61.4573
61.1123
Charm- The rate at which the delta of an option or warrant will change over time. Charm refers to the second order derivative of an option's value - once to time and once to the price. It is also the derivative of theta, which measures the time decay of an option's value. This value decreases as the option approaches maturity. BUSINESS JARGONS BY– TANIYA BANERJEE
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EDITORIAL TEAMNITIKA THAKUR, RAJAT MONGA, RICHA SHARMA, RINI CHATTERJEE, SAINYAM KUMAR, SANYA DHAWAN, SHILPA MALHOTRA, SUPRIYA MAMGAIN, TANIYA BANERJEE.
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