ISSUE - 101
18th DECEMBER [SATURDAY]
EDITOR’S DESK
- TANIYA BANERJEE
The Trishna week has finally come to an end! With heavy hearts we all bid it good bye.. The entire week end was something that I know for a fact that all of us will remember through out our lives. It was a three day long extravaganza that made us witness a host of myriad events hosted by different clubs and student bodies in IBS Hyderabad. Similarly we had a host of events that made national news and also created huge waves in the media. Corruption, the word seems to have become a synonym for Indian politics! We have been covering the 2G scam extensively and the ripples created by it seem to be in no mood to settle down with the Opposition Party creating ruckus in the Parliament over it and resulting in the Stalemate of the Parliament. It seems that they are in no mood to allot time to the various pressing events that need to be addressed to get the nation to grow both economically and holistically. But I am a firm believer of the silver lining theory and I believe that our silver lining is round the corner with India being all set to ratify UN convention on corruption wherein it will be taking on the obligation to check corruption in the private sector. Also we have philanthropists like Mr. Azim Premji who has announced to donate 8.6% of stake to a private trust managed by him. This represents the single largest donation made by an individual towards any charitable activity. In this issue we also bring to you the recent events in the world at large. From major acquisitions to shifts in the boardroom we have it all for you in our fast-track and quick bites section. We have also tried to understand if our answer to all, the one best friend of us MBA students „Google‟ is over?! With its revenues plummeting and a number of competitors around we wonder if its twilight for Google. But in our own home turf we have a brand that is going strong for about 64 years, yes! I am talking about Amul. Get the complete story of its journey from its inception till recent times in our Brand Track section and enjoy the „taste of India‟. Commingled Fund, REF Corp, writing naked! Wondering what I am talking about? Well for that you will have to go through our issue and discover the meaning of these jargons. Trust me they are as interesting as their names. All of this and much more awaits you in this 101st issue so just take a dive and see what is in store! Cheers, Taniya Banerjee
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– THE PARLIAMENT STALEMATE
- RAJAT MONGA
JPC. I am sure most of you would have heard or read about this term in the last few days. This term has been at the center of the standoff between the government and the opposition resulting in a stalemate in the proceedings of the parliament. Even after 15 days of winter session no official business has been conducted in the house with the opposition parties forcing adjournment by creating ruckus as soon the zero hour begins.
Joint Parliamentary Committee is appointed to look, inquire into particular matter or subject or fraud, something which is important for nation.
The taxpayer’s money is being wasted as nothing is happening in both the Houses and all this for a trivial issue of JPC which as seen from the previous experiences have not been able to bring out any new findings than already known.
The demand for JPC or Joint Parliamentary Committee is the next chapter in the 2G scam involving now famous Mr. A. Raja whose actions according to CAG (Comptroller & Auditor General) priced Indian exchequer a loss of Rs.1.76 lakh crore. Joint Parliamentary Committee is appointed to look, inquire into particular matter or subject or fraud, something which is important for nation. It consists of members from all the parties and from both the houses of the parliament. The first JPC was formed in 1987 to look into the Bofors scam and since then we have had these committees whenever a major scam broke out. So why is this scam an exception and why isn‟t the UPA led by Congress agreeing to the demand? The government says that there is already an investigation going on by the CBI and Central Vigilance and hence there is no need for a parallel probe. But both these agencies have already been pulled up by the Supreme Court for their lax attitude. It has even questioned the integrity of the Central Vigilance Commissioner and his ability to lead the probe. The entire government is facing a trust deficit and there is no better way to reassure the citizens than to order the JPC. Yet it is not! There could be two reasons for it according to me. Firstly a JPC will ensure that the scam stays in the limelight. The government can ask the CBI to delay the proceedings- which it already is doing so that the scam fades away from the memories of the citizens. This is not possible in case of a JPC as it is not under their control. Also the JPC has a fixed timeframe it has to submit its report which is presented in both the houses of parliament. The second reason can be that the government has something to hide and a JPC which goes into all the details might result in more skeletons falling out of the closet resulting in further embarrassment for it. This game of politics had, as I mentioned earlier has resulted in no official work being done with the exception of last Friday when the government forced through a key spending bill by a voice vote. Another major bill which will make it easier for industries to acquire land has not been put up in the Lok Sabha because of this impasse. The taxpayer‟s money is being wasted as nothing is happening in both the Houses and all this for a trivial issue of JPC which as seen from the previous experiences have not been able to bring out any new findings than already known. Like everything in Indian politics this issue also started with aim of doing public good has now turned into a game of political one up-manship. Whoever wins it one thing is certain we for whom the government is for will loose.
1 2 3 4 5 6 7 8 9 10 11
FAST-TRACK NEWS
THE IBS TIMES -SHILPA MALHOTRA
Food inflation hits single digit to 8.6%
Having aggressively remained in double digits for the past four months, food inflation slumped beyond expectations to 8.60 per cent for the week ended November 20 from 10.15 per cent in the previous week, owing to further easing of prices following increased kharif crop arrivals. The sharp fall if sustained can bring inflation to the projected level of 5.5 per cent by the end of the current fiscal.
India all set to ratify UN convention on corruption
India is all set to ratify the global convention against corruption seven years after the treaty came into being, taking on an obligation to check corruption in private sector amid unraveling of multiple scams in the country. With India ratifying the Convention, India will be able to seek full cooperation of the signatory countries in investigation of cases, especially with respect to off-shore bank accounts held by Indians.
Government rejects massive fare hike proposal by airlines
Talking tough, the government rejected the proposal by domestic airlines for a massive fare hike and warned them of penalty and other action if the last-minute ticket prices were higher than average ahead of the highdemand Christmas-New Year break. Asserting that the government can't remain a mute spectator to the move by the air carriers, civil aviation minister Mr Praful Patel said there can be “no justification” for airlines to hike fares in an “arbitrary manner”.
ISI Chief conspired against Zardari revealed Wiki leaks
Pakistan interior minister Rehman Malik had told then US Ambassador Anne Patterson that it was not chief of army staff Gen Ashfaq Kayani but ISI chief Gen Ahmed Shuja Pasha who was hatching conspiracies against President Asif Ali Zardari, according to diplomatic cables released by Wiki Leaks. The US embassy cables revealed that Malik sought an urgent appointment with Patterson in November 2009 and said that Pasha was hatching plots against Zardari, adding that the president needed political security for that reason only.
Musharraf vows not to visit India „ever again‟ following the visa denial
The political leader is planning to make a comeback to mainstream politics after having stepped down from his post in 2008.Musharraf was invited to India by some private organizations to address the media as well as attend some seminar. However the Indian government has denied visa to the former Pakistan president. The sources said India had reservations about Musharraf‟s visit because he could make anti-India statements and efforts by his supporters in Pakistan to plan and join political activities other than the scheduled ones.
Australia‟s Leighton wins 5.3 billion coal contract
The Leighton Holdings subsidiary Thiess has won a $5.5 billion coalmining contract in India and the contractor hopes the deal will help it gain a foothold in the country's burgeoning coal industry. Thiess will develop and operate the Pakri Barwadih mine in the resource-rich state of Jharkhand in India's east over 22 years for the largest state-owned power generator NTPC. Revenue is expected to be $500 million in the first five years, with peak production of 15 million tonnes to be reached in three years.
Premji donates 8.6% stake to a trust Chairman of India‟s third-biggest IT services exporter, Premji will transfer around 8.6% stake worth over Rs. 8, 000 crore to a private trust managed by him. The Shares, at current market prices, are worth Rs 8,846 crore, and represent the single largest donation by an individual towards charitable activities. Premji‟s stake in the Company is expected to come down to just over 70 percent from the current level of 79 percent which will help Premji to comply with the new Finance Ministry rule that mandates companies listed in India to increase their public shareholding to 25 percent.
Commingled Fun– A mutual fund that includes assets from several accounts, pooled together, to reduce management and administration costs; here also called pooled fund.
1 2 3 4 5 6 7 8 9 10 11
THE IBS TIMES Only Bharti Punj Llyod submits bid for TCIL stake in Hexacom
Bharti Airtel and Punj Lloyd are the only two companies to have submitted bids to buy out Telecom Consultants of India‟s (TCIL) 30 percent stake in Bharti Hexacom Airtel‟s operations in six Northeastern states and Rajasthan are through Bharti Hexacom. Airtel owns 70 percent stake in Hexacom, and the government had recently invited bids as TCIL wanted to exit by selling stake in the JV. The deal will be worth upwards of Rs 1,800 crore, which is the base price prescribed by the government-appointed consultant.
Tata angry over Neera Radia tape publicity
Tata Group chairman, Ratan Tata is offended by the leak of the phone records of Nira Radia, who plays a major role in lobbying for corporate houses. Tata believes that the leaking of tape recording is a violation of privacy rights of an individual and has filed a petition in this regard in the Supreme court. However, the home ministry asserts that such tape leaks are inevitable in major scams and tax violations.
HDFC hikes floating home rates by 75 bps
Home loans have become more expensive, with the country‟s largest housing finance company HDFC raising interest rates by 75 basis points. HDFC has revised its floating interest rates on home loans for both existing and new customers with effect from December 1, 2010. Following the increase in the retail PLR, new home loan customers‟ adjustable rate home loans will now be priced 9.5% per annum for loans up to 30 lakh, 9.75% pa for loans up to 75 lakh and 10% pa for loans above Rs 75 lakh.
IIFCL plans Rs.1200 crore bond issue
The state-run core sector lender India Infrastructure Finance Company (IIFCL) will come out with a Rs 1,200 -crore retail infra bond issue from January through March. "We will launch Rs 1,200-crore tax-free infrastructure bonds this fiscal. It will hit the markets in three tranches of Rs 400 crore each,” said IIFCL Chairman and Managing Director SK Goel. The proposed bonds are AAA-rated and will carry a coupon rate of around 8.5 per cent for 10 years and 8.75 per cent for 15 years.
Ireland wins $113 billion bailout
Ireland won approval for an 85 billion-euro ($113 billion) emergency-aid package as European finance ministers battled to contain the fiscal crisis. Ireland will receive 67.5 billion euros from the European Union and International Monetary Fund and provide 17.5 billion euros from its own pension reserves. Greece was told it could have extra four-and-a-half years to repay emergency loans totaling 110 billion euros to match the seven -year term under Ireland‟s deal.
Gambhir shines out in Jaipur
The Delhi left-hander played a captain's knock that followed his match-winning unbeaten 138 in the second ODI in Jaipur on December 1 as India easily chased down the target of 225 in 39.3 overs to take an unassailable 3-0 lead in the five-match series. Gambhir, who smashed 16 boundaries with his flicks and drives in the 117 balls he faced, put on 115 runs for the opening wicket with Murali Vijay who made a slow 30 in 50 balls before being run out.
“I did nothing wrong”, says Lalit Modi
Putting up a stout defence, sacked BCCI administrator Lalit Modi denied any wrongdoing during his role as IPL commissioner and called the charges against him as witch-hunt. Modi said he did not rig any of the IPL bids, did not make money out of IPL and that BCCI was aware of all his actions. Modi is facing charges of financial irregularities and is facing probe by Enforcement Directorate, BCCI Disciplinary Committee and the Chennai Police.
REFCORP- Resolution Funding Corporation. The organization created by Congress in 1989 to bail out the savings and loan industry by offering debt to some companies and liquidating others.
1 2 3 4 5 6 7 8 9 10 11
THE IBS TIMES
OPINION FORUM– IS GOOGLE OVER?
The top men of Google have switched to one of its main competitor, Facebook, complaining that the bureaucracy at the company is increasing.
Facebook and Appleare hoarding loads of information which is not accessible to Google. The competitors it seems are taking over and the light is at the end of the tunnel is diminishing it seems.
-SANYA DHAWAN
Spring of 1996, Stanford University, California-two very bright students, Larry Page and Sergey Brin were given a research project. They were supposed to study the working of internet search engines. At that point of time search engines would rank results by counting how many times the search terms appeared on the page but the two theorized a better system that analyzed the relationship between websites. The website's relevance was determined by the number of pages, and the importance of those pages, that linked back to the original site. They named it „Google‟. The rest as they say is history. Google, in the next decade grew tremendously. In 2007 it bought YouTube for $1.65 billion. But in the past four years the revenues of Google have been plummeting. A 80% fall in total revenues since 2007. So, what went wrong? Basically, Google is faced with two major business challenges. The first challenge Google faces is of the regulators who complain that it is abusing considerable power by manipulating search results that gives an unfair advantage to its own services. The second major business challenge faced by Google is that it doesn‟t have new opportunity of growth. The revenue generating activities have stagnated and consequently the share prices. The management of Google is also facing various problems. The top men of Google have switched to one of its main competitor, Facebook, complaining that the bureaucracy at the company is increasing. To top it all, problems of Google don‟t end internally. Its competitors are also giving them a tough time. The newspaper companies, who at the moment are providing free content to Google, are coming up with their own tablet computers to generate additional revenues and find new sources of information providing (to combat new technologies like the kindle.) It also seems to me that this is the end of Google as it is not able to keep up with the changing technology. The next big thing in technology is the Semantic Web (or Web 3.0). The Semantic Web promises to “organize the world‟s information” in a dramatically more logical. The Semantic Web requires the use of a declarative ontological language like OWL which will deduce answers instead of just throwing raw information at you using the outdated concept of a search engine. To give a very basic example, say a new video game called Mario is launched. Now people across the world would rate this video game. The user would have to go through various blogs and gaming sites to actually get an idea about Mario. But with the inception of Web 3.0, the machine will be able to reason out and give a single solution as to how the video game is rated.But in this dark picture that I have portrayed, is there light at the end of the tunnel? Maybe. Let‟s examine the other side. Google has rapid growth in the amount of data being produced worldwide which would make advertising more effective and eventually increase advertising revenues by $50 Billion. It has also introduced Android, a smart phone operating system, which it lets telecoms firms and phone-makers use for nothing and helps in cross selling its products like the e-mail. To combat competition to social networking sites, it plans to introduce a “social layer” across its existing products in the coming months; diversifies business from taking a stake in a wind-energy project off the east coast of America to testing self-driving cars. Despite all this, we must realize that at the end of the day, Google‟s forte is it being a search engine and search related advertising accounted for almost all of its $24 billion of revenue and $6.5 billion of profit. And Google is loosing that to its competitors- Facebook and Apple- are hoarding loads of information which is not accessible to Google. The competitors it seems are taking over and the light is at the end of the tunnel is diminishing it seems.
Writing Naked- Risky investment strategy employed by option writers that allows them to sell options without owning the underlying security. This tactic can lead to large profit or loss depending on the direction that option writer projected and the actual direction that the security takes.
1 2 3 4 5 6 7 8 9 10 11
THE IBS TIMES
BRAND TRACK—AMUL: THE TASTE OF INDIA
Amul as a brand is so popular that the Government of India has honored Amul with the “Best of all categories Rajiv Gandhi National Quality Award”.
The white revolution in India heralded by Amul changed the way milk and milk products were consumed in India. It made India the largest producer of milk and its products.
-NITIKA THAKUR
The largest food brand of India which has around 64 years of existence is an epitome of success, commitment and creativity. The utterly butterly girl has managed to keep the fan following up and intact. Amul the brand which was started in 1946 in Anand, Gujarat is the best example of a successful co-operative organization. The largest pouched milk brand which has an annual turnover of 67.11 billion has entered into the global market as well. Amul as a brand is so popular that the Government of India has honored Amul with the “Best of all categories Rajiv Gandhi National Quality Award”. The ultimate compliment to the butter giant came when a British company launched butter and called it Utterly Butterly; Amul has used the hoardings and advertising to perfection. More over Amul has created a niche for itself by remaining consistent with its creative messages throughout. The best part about Amul as a brand is that Amul has been consistent over the communication campaign and brand strategy. There is no second thought that Amul is the market leader in butter, whole milk, cheese, ice cream, dairy whitener, condensed milk, saturated fats and long life milk. Amul follows a unique business model, which aims at providing 'value for money' products to its consumers, while protecting the interests of the milk-producing farmers who are its suppliers as well as its owners. Despite being a farmers' co-operative, Amul has given multinationals a run for their money. In butter, cheese and saturated fats AMUL has been an undisputed market leader, by offering its products to them at competitive prices but in other categories as well it has nullified the effect of a late mover by aggressive pricing, better quality, innovative promotion and superior distribution. A SWOT analysis of Amul says that the biggest strength of Amul is the wide range of products it offers, effective ad campaign and an efficient distribution network. The target audience of Amul was diverse and each group has specific products for it. Be it the Probiotic wellness ice-cream and sugar free delights or the Kool koko milk for teenagers. Although a wide range fetched Amul a huge customer base but it had many times resulted in competition between its own brands like Amul processed cheese vs. cheese spread or the Nutramul energy drink Vs. Amul Kool. The Gujarat Cooperative Milk Marketing Federation Ltd, Anand (GCMMF) has the largest distribution network for any FMCG company. It has 50 sales offices spread all over the country, more than 3,000 wholesale dealers and more than 5,00,000 retailers. Amul also exports dairy products in around 40 countries. The white revolution in India heralded by Amul changed the way milk and milk products were consumed in India. It made India the largest producer of milk and its products. It also gifted Amul the tag of the world‟s biggest vegetarian cheese brand. Amul changed the life of farmers; it brought awareness in their minds, helped in curbing the exploitation of farmers done by middlemen and private traders. It took Amul 60 years to reach the production capacity of 10 million liters per day and the very next initiative of Amul is to double this capacity by 2020. Amul is heading towards the second white revolution with high speed and magnitude. The capacity of 20 million liters per day will increase the revenue by three folds and change the self sufficient market into an export driven market. It is carrying forward the legacy of the father of white revolution “Dr Varghese Kurien” and guarantees that there will be no shortage of milk in the country. The productivity level per animal has improved significantly because of better feed and other initiatives taken by the dairy unions. Also Amul is on track of expansion by adding new plants, increasing the capacity of the existing plants and increasing the number of distributors. Now since Amul has unveiled its global ambition, lets see how our utterly girl does in future!
1 2 3 4 5 6 7 8 9 10 11
THE IBS TIMES
QUICK BITES- NEWS THAT CAN’T BE MISSED !
- SUPRIYA MAMGAIN
Big Shots… Toyota introduces Etios sedan, its first offering in the B-segment in Bangalore. BASF, the world‟s biggest chemical firm to invest more than Euro 2 billion ($2.6 billion) in Asia by 2014. Ranbaxy Laboratories, India‟s largest drug maker by sales, has won approval to sell a copy of Eisai‟s Aricept Alzheimer‟s drug in the US. Videocon and its partners Amadarko, Cove Energy and BPRL make third gas discovery in Mozambique. GMR Infrastructure sealed the deal to sell its 50% stake in InterGen to Chinese electricity company Huaneng Power for $1.23 billion. RIL ranked 20th largest chemical firm globally.
Company Talks… Religare to buy 55% in US asset management firm Landmark for `770 crore. Google is eager to buy local coupon site Groupon for as much as $6 billion. BHEL is in talks with CRISIL to get the license to operate an NBFC. Economic Times becomes the 6th largest English daily in the country, with a readership close to 8,00,000. PepsiCo to buy majority stake in Wimm-Bill-Dann for $3.8 billion which is aimed to increase PepsiCo‟s presence in Eastern Europe. Ford to expand Figo hatchback exports to 48 countries. Bajaj motorcycle sales jump by 9% in November. Acer aims to grab 15% of Tablet PC market in 2011. Honda‟s Brio to make India debut in 2011.
Economy Speaks… PMI (Purchasing Manager‟s Index) rises to 60.1 in November, services back on high growth path. India‟s Nuclear power share to be nearly 25% by 2050. US November jobless rate hits 9.8%. Rupee gains 10 paisa against dollar to `46.79. India-Thailand bilateral trade is expected to reach $6 billion this fiscal. Government hikes natural gas price by 10% for non-priority sectors. IIFCL likely to get the NBFC tag, as RBI looks to bring the dedicated infrastructure lender under the scanner. Government tightens norms for withdrawal of provident fund by overseas workers employed in the country prohibiting them from taking the money until they are 58 years old or incapacitated.
The Captains of the Ships.. President of J.K. Group - Shri Hari Shankar Singhania President and CEO of Honda Motor, Asia - Mr. Takanobu Ito CEO of Reckitt Benckiser - Mr. Bart Becht Full Time Director of MRF- Mr. Rahul Mammen Mappillai Chief Statistician of India- TCA Anant CMD of Air India- Mr. Arvind Jadhav MD of Jindal Power - Mr. R.S. Sharma Chairman of GVK Power& Infrastructure Ltd. - Mr. G.V. Krishna Reddy
1 2 3 4 5 6 7 8 9 10 11
THE IBS TIMES
FOCUS OF THE WEEK– AN INSTRUMENT THAT BECAME THE ‘BUZZ’ OF THE MARKET
- NEHA DASSANI
Collateralized Borrowing and Lending Obligation (CBLO) is a negotiable instrument which is fully-collateralized with no credit risk associated to it, as CCIL i.e., the issuing authority of CBLO provides guarantee against the default to counterparty. The party needs to have a Statutory General Ledger Account (SGL) with CCIL for lodgment of securities which are to be used as collateral for borrowing. There is a limit to which the funds can be borrowed and it is decided by CCIL.
It is one of the options for investors who are moving out of the call money market due to RBI restrictions.
The most interesting thing about CBLO is that one can make a guess about the rate of interest and availability of money.
CBLO was introduced by CCIL on 20th Jan, 2003, and has got immense popularity in the market since then. Earlier it was traded less in number but today the number has crossed 30000 million per day. It is one of the options for investors who are moving out of the call money market due to RBI restrictions. The first disadvantage of call money market is that it has unsecured lending and the RBI has decided to phase out non banking entities from it. It has even imposed restrictions on access to call money market by banks and primary dealers. Entities that are not forming a part of banking system are not allowed to participate in the Liquidity Adjustment Facility (a tool used in monetary policy that allows bank to borrow money through repurchase agreement) auctions conducted by RBI. Due to this, market participants are forced to use the Repo market for deployment of their funds. A study by Golaka Nath (NSEIL) and R Natrajan, „CBLO and its impact on other Money Market Segments.‟ states that Liquidity Adjustment Facility has a negative relationship with call and REPO but a positive relation with CBLO. It has various advantages like CRR exemption and lower risk weight. The most interesting thing about CBLO is that one can make a guess about the rate of interest and availability of money. For example, let us consider the rate of CBLO as stated by CCIL to be 2.9% and the current Reverse Repo Rate to be 3.7%. So, banks to suffice liquidity crunch or to make profit borrow from the CBLO and sell it to RBI and thus making a profit of 0.8% profit. Thus CBLO proves out to be less risky than providing retail loans which might prove out to be risky. Supporting the same a recent article published on 20th November 2010 mentions that the banks borrowed 1105.29 billon and parked 19.59 billion as a reverse repo; moreover huge amount was borrowed for IPO as well by MOIL Ltd. One of the reasons for CBLO‟s popularity can also be that it is more flexible when compared to Repos, where the obligation can be squared up only on a single due date, there is no option to „prepay‟ even if the borrower wants to. Whereas, CBLO allows buy and sell anytime during the tenure. Thus, we can say that CBLO is an infant in the market that has shown a calibrated growth and integration when compared to other markets, and today stands as an important instrument for banks, and corporate in liquidity crunch or otherwise.
Flexible Spending Account- A benefit offered to an employee by an employer which allows a fixed amount of pre -tax wages to be set aside for qualified expenses. Qualified expenses may include child care or uncovered medical expenses.
1 2 3 4 5 6 7 8 9 10 11
THE IBS TIMES
NEWS @ IBS– ALL HAPPENINGS IN IBS HYDERABAD!
- RINI CHATERJEE
THE BEST MANAGER: STOCKYARD StockYard organized „The Best Manager‟ game this week. As the name suggests, this game was designed to judge a person‟s managerial skills in the real world. The game consisted of 4 rounds which would evaluate the players‟ based on their performance on the grounds of communication skills, group efforts and stress management. In the first round all the teams had to untie knots on a long rope using only one hand, thereby reflecting team work. The fastest teams got bonus while going into the next round to test their communication skills. The teams had to pick a „CEO‟ to view an illustration and explain it to a „runner‟, who had to narrate the illustration to his respective team members for them to draw it. The closest replica was the winner. The third round was based on the concept of „survival of the fittest‟ where the players could vote other players out. Then the players who were voted out had the liberty of challenging another player to a game demanding group co-ordination. The challenges won this game and were eligible to graduate to the final round. The final round was held the next morning where 9 finalists were scrutinized in a grueling Stress Interview round. The game was won by Nagesh Shrivastava who was awarded the title of „The Best Manager‟.
INTERNATIONAL MARKETING AND BUSINESS STRATEGY CONFERENCE 2010 IBS Hyderabad hosted the International Marketing and Business Strategy Conference 2010. It was a grand event which summoned renowned scholars and professors in the field of marketing from all over the world. The chief guests for the occasion were Abraham Koshy, co-author of Marketing Management, Jai Kumar, Vice- President, Star India and Ankur Gupta, Director, Marketing, SumTotal Systems. The conference presented various innovative and new marketing concepts and techniques by all the delegates and scholars who had attended the conference. The various lectures and tracks were attended by hoards of students of IBS Hyderabad and inculcated different ideas for further research and innovation for the future budding marketers. PENTATHLON: VAPS Organized by VAPS, Pentathlon was a spectacular sports event which pepped up the whole crowd of IBS Hyderabad under one call. All the sections of 1st and 2nd year were divided into clans of two sections each, named after a country. The various sports played for the event were tug of war (men and women), tennis (men‟s doubles), football (men), throw ball (mixed) and badminton (men- singles and doubles, women- singles and doubles and mixed doubles). The winning teams were awarded 1000 point, the runners-up 500 points for each game and 2000 points were awarded for cheering for their teams by the clans. The clan with maximum points will win the event. The event, like all other sporting occasions, brought the whole college together, to play and bring their true sportsman spirit to life.
1 2 3 4 5 6 7 8 9 10 11
THE IBS TIMES MARKET WATCH
- SAINYAM KUMAR
Just when the common investor could assure himself of the bear run arrival, he faced a shock this week. The downtrend in the markets reversed the pattern this time as Sensex and Nifty gained 4% each during the week. Volatility prevailing throughout the trading sessions hinted towards the fall not being a sharp one. Easing of food inflation continued as it came down from 10.15% last week to 8.6% this week which is attributable to the above expectation monsoon we witnessed. What is interesting to see is whether inflation comes down to moderate levels or would QEII push it up again? Moving on to the corporate news, the decision of Hero group to increase the royalty payments to Honda Motor Co. to 8% was seen in a bright light by the investors. The increased payment is for the technological makeover and selling of stake by the latter and would be made by 2014. BHEL is planning to set up its own Non-Banking Finance Company (NBFC) in consultancy with CRISIL. According to BHEL, this will be set up to finance the power projects of the company and they will have another strategic partner on the board and will assume the role of a minority shareholder. The Movers & Shakers of the Week
SURGES
%Change
DOWNFALLS
%Change
Bank Of India
13.6
Welspun Corp.
-29.7
IOC
11.5
Koutons Retails
-25.4
Tech Mahindra
11.2
HCC
-17.2
Stock market is just like a box of chocolates, you never know what you are going to eat next and the indices showed just that. BSERealty, which lost 13.6%, last week, led the pack of gainers this time. All the indices reported positive figures for the week as even the worst performer (BSE-FMCG) gained 2.5%. Global Cues: For the week ending December 4, 2010, the top performer among the key world markets was India. Better than expected results in U.S. and increasing confidence about the fact that U.S. Government will be able to pull the economy out of the fears of a double dip recession, led to them gaining as much as 2.6%. The news about S&P thinking of downgrading Greece‟s long term debt based on the effect that the European bailout rules will have on the private investors sent shivers across Europe. But, the only market to end the week below the “zero line” was China, which lost 1% during the week.
1 2 3 4 5 6 7 8 9 10 11
THE IBS TIMES MARKET WATCH 29 Nov 2010
30 Nov 2010
1 Dec 2010
2 Dec 2010
3 Dec 2010
Sensex
19,405.10
19,521.25
19,850.00
19,992.70
19,966.93
Nifty
5,830.00
5,862.70
5,960.90
6,011.70
5,992.80
DJIA
11,052.49
11,006.02
11,255.78
11,362.41
11,382.09
HangSeng
23,166.22
23,007.99
23,249.80
23,448.78
23,320.52
FTSE100
5,550.95
5,528.27
5,642.50
5,767.56
5,745.32
Gold ($/oz.)
1367.30
1388.90
1386.60
1384.90
1414.50
Crude($/bl)
83.45
83.65
84.13
86.14
-
INR v/s USD
46.5300
46.1628
46.1225
45.7605
45.4220
INR v/s EURO
61.6653
60.9035
60.2571
59.7481
59.7504
Segregated Fund- An annuity offered by an insurance company which guarantees a specific percentage return on the investment upon maturity. It is similar to a mutual fund, and is offered by an insurance company. The term "segregated" is used because the funds are kept separate from the issuing company's other investment funds. BUSINESS JARGONS BY– SAINYAM KUMAR
Contact Us & Post Articles at— editor.ibstimes@gmail.com Join Us & Get E-copies at—
http://bit.ly/ibstimesgooglegroup http://bit.ly/ibstimesyahoogroup
DisclaimerThis newsletter is just a compilation of news from various sources. Thus, readers are expected to cross-check the facts before relying upon them. Though much care has been taken to present the facts without error, still if errors creep in, necessary feed back will be always welcomed. Editors will not be responsible for any undertakings. The newsletter is not meant for sale and hence, no part of the newsletter should be used without the prior permission of the editorial team.
SourcesThe Economics Times, The Hindu Business Line, Times of India, Business Standard, Financial Ex-press, Financial Times, Business Week, Business World, The Economist, Wall Street Journal, Bloomberg, Reuters, Moneycontrol.com, Vccircle.com, yahoofinance.com, Business Today, India Today, Investopedia.com, Wikipedia.com, DNA, The Deccan Chronicle, The Hindu, The Tele-graph.
EDITORIAL TEAMNEHA DASSANI, NITIKA THAKUR, RAJAT MONGA, RINI CHATTERJEE, SAINYAM KUMAR, SANYA DHAWAN, SHILPA MALHOTRA, SUPRIYA MAMGAIN, TANIYA BANERJEE.
1 2 3 4 5 6 7 8 9 10 11