The+IBS+Times_108th+issue by Stock Yard

ISSUE - 108

16th FEBRUARY [WEDNESDAY]

EDITOR’S DESK

- TANIYA BANERJEE

Hello everyone! It is the week of SIP‟s and all of us ( the students of IBS, Hyderabad) are working in different parts of the country on their summer projects. The seniors too have started a new phase of their lives by joining the corporate world or starting their own ventures (the final destination of all us MBA students). Similarly the world too has moved on from one tantalizing news to the next. If it was the Egypt revolution last week which finally resulted in Hosni Mubarak‟s ouster, this week it is the downwards spiral in the market that is the talk of the town. Get the complete story and the supposed effects that this might reap on times to come in our Cover Story section. Catch our writer‟s opinion on if, the much talked about Asian growth story can be derailed because of their continued inflation and various other menaces plaguing the two biggest economies in the region India and China. Will the measures taken by the governments be enough? Get all the answers on this page. At the start I talked about on the most important news of this century perhaps, the ouster of Hosni Mubarak and Egypt‟s freedom! The man who played an important role in bringing about this change is Mr. Wael Said Abbas Ghonim. He is our Focus of this week. Get to know the man better on this page and witness the life story of a person whose name will definitely be remembered in times to come. For all us coffee lovers there is Costa Coffee this week in our Brand Track section. Get the complete story of this much loved brand and also know many an unknown facts about it like it is actually a British retail chain contrary to popular belief that it is an Italian retail chain started by two Italian brothers. Moreover catch our regular sections Fast track and Quick bites for getting a glimpse of all the important news. And the market watch section once again brings to you the surges and lows of the week. The highs and the lows all of them are there for the avid market watchers to track. I hope all of you enjoy reading the issue as much as we enjoyed writing and presenting it. And we promise to be back soon with your The IBS Times. Cheers, Taniya Banerjee Editor.

COVER

1 OPINION 2 BRAND

5 FOCUS 6 MARKET

FAST-TRACK

3 QUICK BITES

EDITOR

8 9

THE IBS TIMES

COVER STORY–DWINDLING SENSEX

- SANYA DHAWAN

It all went downhill since the beginning of 2011. If you compare markets, India is the 2nd worst performer among major global markets. It is next only to Egypt, which was anyway rocked by violent protests against its autocratic leader. Since the start of January, close to a 14% fall has been seen in the index. But if you compare from the peak of November 5, 2010 (20852 points) the index is down to 16%. The BSE-500 index is down 20% since November 5, 2010. This index accounts for 93% of the market capitalization on the Bombay Stock Exchange. Stock market analysts traditionally consider a 10% fall in indices as a correction and a 20% fall as a full-blown bear market. Now there are various reasons for the bearish sentiments of the market. The high rate of inflation has been a major reason for bearish sentiments of

Now there are various reasons for the bearish sentiments of the market. The high rate of inflation has been a major reason for bearish sentiments of the markets. Prices of crude and metals have been soaring. Cotton prices have also hit an all time high. To make matters worse, RBI has also adopted a hawkish stance (Hawkish is an adjective typically used to describe monetary policy which favors higher interest rates, tighter monetary controls and restrictive credit policy). These factors are pushing input and borrowing costs up for the company and consequently shrinking margins and profits of the companies. In fact, rising prices and inflation are affecting almost all „emerging‟ economies but it has hit India the maximum, after Egypt. This is causing an exodus of funds, back to the developed world in an effort to chase higher returns. As of mid February, foreign funds have sold US$ 1.3 billion worth of Indian shares in 2011. This comes as a huge contrast to the record inflows of US$ 29.4 billion seen in 2010. And this is seen as really disturbing as FIIs were the major drivers of last year's rally. This year has seen a series of events resulting in negative market sentiments. With the unearthing of corruption scandals, even the regulatory watchdogs are getting more vigilant to catch the wrong doers. Telecom counters suffered on widening its probe by the Central Bureau of Investigation (CBI) in 2G spectrum scam and confusion over telecom regulator TRAI's new recommendations on 2G spectrum pricing. The arrests of DB Realty‟s founder in connection with the probe into telecom spectrum allocation is also another factor behind the fall in the share values.

The BSE-500 index is

Market sentiment was so fragile that the sharp fall in food inflation could not boost investors down 20% since November confidence. Food inflation dipped to a seven week low of 13.07% for the week ended January 29 5, 2010. This index ac- from 17.05% in the last week. In my view, this sharp correction offers the most opportune moment to pick up stocks at reasonable valuations. counts for 93% of the market capitalization on the Bombay Stock Exchange.

But investors feel otherwise so much so that shares in Anil Ambani Group companies - Reliance Infrastructure (RLIN.BO), Reliance Communications (RLCM.BO), Reliance MediaWorks (RELM.BO), Reliance Power (RPOL.BO), Reliance Capital (RLCP.BO) and Reliance Broadcast wiped out about $2.5 billion in market value.

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FAST-TRACK NEWS

THE IBS TIMES -SHILPA MALHOTRA

India and Pakistan agree to resume talks after two years More than two years after the 26/11 attacks when the peace talks had collapsed between India and Pakistan, the two nations agreed on resuming dialogue on all issues. The said development came in after the two foreign secretaries met at Thimpu in Bhutan following which the foreign secretary of Pakistan S.M. Quereshi announced his visit to India again by July 2011 to review the progress in the dialogue process with his counterpart. Air India under CAG lens The Comptroller and Auditor General (CAG) has found discrepancies in Air India's accounts which show that the airline under-reported its losses in 2009-10 by over Rs 3,000 cr. The national carrier meanwhile has stated that the figure of losses was arrived at after accounting for deferred tax assets (DTA) of Rs 2842.52 cr and not showing Rs 195.58 cr as expenditure in the books as maintenance cost for leased planes. DTA is an asset on a company's balance sheet that may be used to reduce income tax expense of any subsequent period. Political parties could face tougher accounting norms The Election Commission (EC) of India is considering a complete overhaul of the accounting practices of political parties and their reporting of donations and funds. The report, commissioned by EC, has suggested a „muscular regulatory‟ environment to keep tabs on the funds of political parties to ensure accountability, financial discipline and proper end-use. ICAI has suggested making it mandatory for all the political parties registered with EC to adopt accrual-based or real-time accounting practices. All spectrum should be priced says ex- communication secretary Former communication secretary SM Aggarwal has suggested that all spectrums should be priced and no single operator should hold more than 30% of total spectrum available in order to ensure fair competition among wireless services. The existing wireless planning and coordination wing shall be strengthened and converted into an independent body to ensure efficient utilisation of RF spectrum said the minister in his statement to Kapil Sibal. Exporters get SOPS worth Rs. 500 cr The government on Friday announced fiscal incentives worth Rs.500 cr to exporters of selected products to help them cope with uneven global recovery. The commerce minister Mr. Anand Sharma unveiled the concessions under different schemes such as Focus Market and Focus Products from January to December 2011 available to the Indian exporters. Kochi to get India’s first transhipment hub India gets its first transhipment hub at Kochi that will allow large ships and vessels to berth, refuel, offload and upload cargo, before taking off to different destinations across the world. With Kochi being on the international sea-route, the hub will help in improving traffic significantly, especially those who are moving from East Asia to Europe. The entire cargos which are getting offloaded or uploaded at the neighbouring transhipment hub in Colombo will now be possible in India. Nokia joins hands with Microsoft Top mobile phone maker Nokia is adopting the Windows Phone platform after announcing in a media conference in London that it is forming a broad strategic partnership with software giant Microsoft. The deal will see Nokia use the Windows phone operating system for its smart phones. At the launch CEO of Nokia Stephen Elop revealed that the said alliance will result in substantial job losses as the existing operating system will be sidelined. 100% Equity Strategy – An investment strategy for an individual portfolio or pooled funds vehicle such as a mutual fund. Only equity securities are considered for investment, whether they be listed stocks, over-the-counter stocks, or private equity shares. A mutual fund or ETF will often state a "100% equities strategy" in its prospectus to inform potential investors of the fund's overall risk profile.

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THE IBS TIMES Citi appoints new advisory board for India

Citigroup has announced a new advisory board for its India operations that would advice the management team on various strategic matters. Citigroup's former Senior Vice-Chairman Victor Menezes, revenue secretary Pradeep V Bhide and Unilever's President Harish Manwani are among the advisory board members. The board will provide independent counsel to Citi's management team in India on a broad spectrum of strategic matters, enhancing Citi's ability to build on the company's long and successful history in India.

Cairn says no to government conditions in Vedanta deal

Cairn India Ltd has announced that it will not accept any conditions for the $9.6 billion Cairn-Vedanta deal that will impact the company‟s value. The government has attached 11 pre-conditions for clearing the deal. The major ones relate to royalty sharing and withdrawal of arbitration cases against ONGC. Agreeing to the conditions would involve cairn shelling out Rs.15000 cr to the government as royalty and cess on oil produced from the Rajasthan block.

Egypt jubilates as Mubarak departs

Fireworks lit the skies of Cairo and protesters shed tears of joy as they celebrated the end of President Hosni Mubarak's 30 years of power. Mr Mubarak stepped down as leader on Friday, after 18 days of widespread anti-government demonstrations. The country is now in the hands of the high command of the armed forces, headed by the defence minister. Everyone hopes a new beginning for Egypt as it may move to a civilian and democratic rule.

Musharraf accused in Benazir Bhutto’s assassination gets arrested

A Pakistani anti-terrorism court on Saturday issued a non-bailable arrest warrant against former President Pervez Musharraf to secure his presence in the hearing in the Benazir Bhutto assassination case. A report compiled by the FIA's investigation team said; "Musharraf was equally responsible for facilitation and abetment of the assassination of Benazir Bhutto through his government and justified failure in providing her the requisite security protection that her status demanded twice. There was a security lapse."

Iran’s opposition leader Mehdi Karroubi under house arrest

One of Iran's most prominent opposition leaders was placed under house arrest. The measure is clearly intended to prevent Mehdi Karroubi, who has become highly critical of Iran's leaders, from participating in a state-backed rally to celebrate the 32nd anniversary of the country's Islamic revolution. Mr Karroubi and Mir Hossein Mousavi, another opposition leader, had called for a rally on Monday to support the popular uprisings in Egypt and Tunisia.The authorities refused permission, calling it a political move.

Sourav Ganguly announces his retirement from all versions of Cricket

Former Indian skipper Sourav Ganguly retired from all forms of the game after no team picked him up in the recently held IPL auction. The blow came after three franchises opposed the move to allow a team to buy one of the Indian players left unsold in the auction when the Kochi team showed interest in buying him. The lefthanded player was a wonderful One Day International (ODI) batsman, with over 11,000 ODI runs to his credit.

Real Madrid tops football’s rich list for sixth consecutive year

Real Madrid has topped the league table of the world‟s 20 richest football clubs for the sixth straight year with a fortune of 438.6 million euros, according to Deloitte. According to the rich list, Real‟s arch-rivals Barcelona (398.1 million euros) retained second spot in the list, ahead of Manchester United (349.8 million euros) and Bayern Munich (323 million euros), Arsenal (274.1 million euros), Chelsea (255.9 million euros) and Liverpool (225.3 million euros) were fifth, sixth and eighth respectively.

9/10 strategy - An investing strategy that involves deploying 90% of one's investment capital in interest-bearing instruments that have a lower degree of risk, and the balance 10% in high-risk investments. This is a relatively conservative investment strategy that aims to generate higher yields on the overall portfolio. Potential losses will typically be limited to the 10% that is invested in the high-risk investments, depending on the quality of bonds purchased.

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THE IBS TIMES

OPINION FORUM– CAN INFLATION DERAIL THE ASIAN POWERHOUSE?

- SAINYAM KUMAR

The news papers have been saying, that the Chinese economy is sending the signals, that it is heating up! Raising the interest rates twice within a month is something that has sent cautious waves throughout the investors‟ community. The reason behind such a move is the rising prices in the economy. The inflation is being predicted to have picked up to 5.3% during January 2011, which is the highest in two years. The main reason behind this rise is the huge amount of cash that is available in the country due to trade surplus. The fact that increased interest rates means that the savers would be more inclined to keep the money in deposits rather than spending them, thus helping the country in the times of soaring prices. The tightening of the monetary policy was long predicted by the analysts as it is a

The reason behind such a

double edged sword which would not only help in keeping the prices below the levels set by the

move is the rising prices

Government but would also help them fight the criticism that the country‟s currency has been artifi-

in the economy.

cially kept low. The side of Chinese economy that is coming out because of all these measures resorted to by the authorities points out to only one fact and that is, that the economy might have reached its peak already. These predictions were reflected in the futures prices of crude oil as well. The huge demand of the commodity by the Asian superpower led to a spiraling increase in its prices but the signals send by the measures taken up the authorities mean that the demand of crude oil might come down as the economy might not continue to grow at the same pace as in 2010. All this said and done, the economists say that the move by People‟s Bank of China (PBoC) was long awaited and the projections for the Q4 growth in Chinese economy remains as robust as 9%. The reasons behind continuation of such a growth are many. Firstly, the slowdown, if any, in the domestic demand might come at a time when the global economies are getting back on the track of prerecession period. The western world has shown the signs of picking up in 2011, which will nullify the effect that the drop in domestic demand might cause to China. Secondly, it is a sign that the strong growth has enabled the authorities to raise the interest rates. The knee-jerk reaction to this might be bullish but the world will react positively to this news in the long run. In my opinion, China is far from drifting away from the path of growth it is on but to ensure it, the authorities have to be swifter. The rise of this superpower can well be tamed by the threatening infla-

The inflation is being predicted to have picked

tion as people‟s confidence with prices has fallen to an 11-year low. Moreover, the money supply (M2) in China is predicted to grow at 16% which is more than the predicted demand for loans, below

up to 5.3% during

16%, in 2011. Such a monetary policy is still loose. Although the economy is facing a trade off be-

January 2011, which is

tween the economic growth and the soaring prices, I think the priority for the economy should be to

the highest in two years.

bring down the inflation. However the fact remains that the real rates in the economy are still negative and the predictions show that the further increase in interest rates is required to control the situation.

Accordion Feature– A type of option that a company can buy that gives it the right to increase its line of credit or similar type of liability with a lender. Companies typically purchase an accordion feature in anticipation of the need for more working capital for possible expansion opportunities.

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THE IBS TIMES

BRAND TRACK- CUPPA COSTA COFFEE

-SUPRIYA MAMGAIN

Being a coffee drinker for many years I have experimented with different coffee outlets, each outlet having its own unique taste of coffee and experience. Over the years of my experimentation I have become a loyalist to COSTA COFFEE. My love affair with Costa Coffee started in 2007, when my friends and I decided to meet up at the coffee outlet which had newly opened in the market place close to our home. One thing which struck me back then was the warm and welcoming atmosphere inside the coffee outlet. Costa coffee makes sure to provide its customers not only with fabulous coffee to suit their taste buds, but also with an experience where they can sit and enjoy a cupa!

It is a British coffee retail chain, which was started by two Italian brothers Sergio and Bruno Costa.

Costa coffee is considered to be an Italian chain by a lot of people; but well that is just a myth. It is a British coffee retail chain, which was started by two Italian brothers Sergio and Bruno Costa. These two brothers were experts in coffee. The coffee company founded by them in 1971 first dealt with the roasted coffee beans and they supplied it to local coffee shops and caterers. The coffee became so popular that they soon started with their first retail store at Vauxhall Bride road, London in 1978. Since then the company has grown on to become a major player in the coffee industry of UK and is worth more than $ 900 billion today. This is a coffee chain which has become a major competitor to Starbucks, which started in the same year as COSTA COFFEE, in Seattle, U.S.A. Costa Coffee targets customers who belong to the profile of upper middle class and the privileged class which include youngsters, professionals and families who come to an outlet not only to have coffee but also to sit and relax while sipping their favorite coffee. The price of coffee at their outlet is relatively high when compared to other retail outlets like Barista and Café Coffee Day in India or Café Nero or Café Republic in UK. But this price is compensated by the great taste and exceptional service provided by Costa. The uniformity in the taste is delivered through the tailor made machines at every outlet which have been made through complete expertise. The method of slow roasting of the coffee beans is used with the brothers‟ authentic blend of six Arabica with one Robusta in the outlets across the world. And to add to it are the staff that are well trained to provide services without any glitch. The brand also serves the motto of being socially responsible and caring, its employees include dumb and deaf individuals which add to the list of its USP. It is the first coffee chain in the UK which gets its beans from Rainforest Alliance Certified farms. These farms ensure that the people and the land where the beans are grown are supported and sustained.

This campaign was supported by direct mail, online and in-store activity, by using the line ‘Love free coffee? Join the club’.

Costa Coffee depends on the word of mouth promotion. The first TV advertisements were launched on the 7th October in 2009, followed after Costa‟s national marketing campaign, which was „7 out of 10 coffee lovers prefer Costa‟ taste test, which was quite controversial as it was followed with several months of complaints from Starbucks. Costa also started with a nation wide campaign of giving loyalty cards to its customers which gives its customers five points for every £1 spent in its stores. This campaign was supported by direct mail, online and in-store activity, by using the line “Love free coffee? Join the club”. In India the coffee chain entered with its franchisee, Devyani International with the first outlet opened in the capital city Delhi. The coffee chain recently changed its Indian strategy as it realized that it could not duplicate its UK strategy here and now it plans to have 250-300 outlets by 2014.Costa is definitely a brand which is here to stay as it has not only in the UK or Ireland but also in South Asia, China, Pakistan, Romania, Bahrain, Qatar, Egypt, Poland, Cyprus, Syria, Oman, Emirates, Lebanon, etc. I hope you get your cup of Costa soon, and if not for you the brand will get you soon!

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THE IBS TIMES

QUICK BITES- NEWS THAT CAN’T BE MISSED !

- SUPRIYA MAMGAIN

Big Shots…     

Cognizant could become the country‟s third largest software services co, with its Q4 profit surging to 43%. Land Rover became the first brand to roll out the world‟s first iPad equipped car, with its limited version of the Range Rover luxury 4WD. LG will launch its first 3D smart phone, the Optimus 3, which would also be world‟s first 3D smart phone. The flagship products such as Splendor and Passion of the Hero group are set to drop the Honda brand name from their products. LVMH, the world‟s largest luxury conglomerate is set to pick up a significant minority stake in Gitanjali Gems Ltd.

Company Talks…        

Swiss watch brand Hublot signs in Harbhajan Singh as their first Indian brand ambassador. Delta Airlines will begin serving Starbucks coffee on all domestic and international Delta and Delta Connection flights from March 1. Reckitt Benckiser slashed the retailer margins to 14% from 16%, which has caused Future Group to stop fresh orders of brands belonging to the FMCG co. Makers of Wai Wai noodles and Kwiks snacks have signed a MoU with Gujarat to set up a manufacturing plant. Devyani International which is the franchisee rights holder of global food chains such as Pizza Hut, Costa Coffee and KFC India, announced to invest Rs.100 crore in Vaango. Tata Motors has bagged an order of 250 “Tata Prima” trucks to supply them to LINFOX Logistics, a supply chain solutions company in the Asia Pacific region. Expedia the world‟s leading online travel portal, announced that it would spend Rs.25 crore as marketing expenditure in India. Oriflame, the Swedish beauty and cosmetics firm will launch 350 products in India, as its growth rate is at 40% in the country.

Economy Speaks…         

Indian forex reserves inch towards $300 billion Food inflation reached a seven week low as it dipped to 13.04%, due to fall in onion prices. Industrial output fell to a 20-month low touching 1.6% in December due to sluggish manufacturing performance. Government has partially lifted a three year old ban on certain rice varieties such as “Ponni Samba” and “Matta” varities of basmati. The FPO of state run Steel Authority of India (SAIL) will finally take place in March, after being delayed due to the merchant banker‟s issue. As a step to tackle money laundering, tax crimes and bribery, the government is deciding to depute IRS officials at the OECD. Commerce Minister Anand Sharma announced the government target of $120 billion engineering exports by 2015. India has entered into a pact with the British Virgin Islands as a measure to check money laundering and tax crimes, this pact will allow exchange of information. To fund technology up gradation of the auto components industry, the department of heavy industry (DHI) has asked the finance ministry to create an Rs.1000 crore corpus.

The Captains of the Ships...     

President of Rosneft- Eduard Khudainatov President&MD of Ford India- Michael Boneham President of BMW India- Andreas Schaff Director Sales& Marketing of Mercedes Benz India- Debashish Mitra President&CEO of Publicis Healthcare Communication Group- Nick Colucci

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THE IBS TIMES

FOCUS OF THE WEEK–NOM DE PLUME EL SHAHEED( THE MARTYR)

- ADHIRAJ SOOD

No one knew this man three weeks back, leaving his family no one even cared who he was. But in the past three weeks, this man has rewritten history of a nation (Egypt). He has pioneered Egypt‟s revolution and the fall of Egypt‟s so called modern pharaoh Mr. Hosni Mubarak.

Born on 23rd December’ 1980 in Cairo, Egypt; Mr. Wael Said Abbas Ghonim is a computer engineer and the Head of Marketing of Google Middle East and North Africa and now an internet activist.

His page ‘We are all Khaled Said’ was followed by 3.5 lakh people even before the uprising took place.

Born on 23rd December‟ 1980 in Cairo, Egypt; Mr. Wael Said Abbas Ghonim is a computer engineer and the Head of Marketing of Google Middle East and North Africa and now an internet activist. He had earned his computer engineering degree from Cairo University in 2004 and an MBA in marketing and finance from the American University in Cairo in 2007. In November 2008 Mr. Wael Ghonim was made the Regional Product & Marketing Manager of Google Middle East and North Africa based at Google Egypt. By January 2010, he was made the Head of Marketing of Google Middle East and North Africa based at Google‟s UAE office in Dubai; but by citing personal reasons he persuaded Google to send him back to Egypt and finally from there he disappeared on January the 27 th. His disappearance brought new life to the revolution, as the great scholar Fouad Ajami said, “The young Google executive, Wael Ghonim, has energized this protest when it might have lost heart, when it could have succumbed to the belief that this regime and its leader were a big, immovable object. Mr. Ghonim was a man of the modern world.” Why was his disappearance so important to the revolution? If you go down the memory lane you would remember a youth movement that happened in Egypt in the spring of 2008, it was called the „April 6 Youth Movement‟. April 6 Youth Movement is an Egyptian Facebook group started by Ahmed Maher and Issra Abdel Fatah to support the workers of an industrial town in Egypt, who were planning to strike on April 6. The activists had asked the participants to wear black and stay at home on the day of the strike. Following these lines of cyber activism, the protest rally that took at the Tahrir Square on 25th January‟ 2011 (which is a national holiday, Police Day in Egypt) was by the followers of the Facebook page called „We are all Khaled Said‟. This page‟s administrator and creator is our Egypt‟s modern revolution hero Mr. Wael Ghonim. His page „We are all Khaled Said‟ was followed by 3.5 lakh people even before the uprising took place. Thus, we can imagine how important this boyish, bespectacled Google techie is to the people of Egypt. During his detention period with the Egyptian authorities there was a nationwide unrest. International media had started questioning the authorities; Google had issued statements confirming his disappearance. Bloggers like Chris DiBona and Habib Haddad campaigned to identify his whereabouts. Finally on 7th February he was released after 12 days of incarceration. Just after his release he appeared on an Egyptian channel DreamTV, where the Egyptians were enthralled with his ordinariness and modesty. His message was clear and simple, “We did this because we love Egypt; these are our rights; this is not the time to spread ideologies; we deserve much better than what is happening to us”. He tried to make the most of the platform (El-Shazly) had given him, and with a tearful apology he ended: “I want to tell every mother and every father who lost a child, I am sorry, but this is not our mistake,” he said, “I swear to God, it‟s not our mistake. It‟s the mistake of every one of those in power who doesn‟t want to let go of it”. The result was the spurt in numbers in Tahrir Square last Tuesday, particularly women, could be traced to his interview. In the end, I would like to put forward that the Jasmine Revolution in Tunisia started it; Egypt‟s Modern Revolt followed it and now how many more histories are to be re-written and how many more dictators are to fall? Will Africa see the change which it has long awaited for?

Act Of God Bond -A bond issued by an insurance company, linking principal and interest to a company's losses due to natural disasters. Act of God bonds are issued by insurers to protect against unforeseen events.

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THE IBS TIMES MARKET WATCH

- SAINYAM KUMAR

The bulls continued to dominate the Indian markets for the most of the week ending February 11, 2011 before value purchasing happened on the last day of the week and Sensex started moving back towards the psychological figure of 18k. The FIIs that formed the back of the surge in Indian markets in 2010 have taken away Rs. 10740.38 cr in 2011. The food inflation for the week slowed down to 13.07%, which is the 7-week low and fuel inflation remained at 11.61%. Talking about the performance of the indices, all of them ended in the red. The auto stocks picked up on Thursday after Indiaâ&#x20AC;&#x;s top bike maker, Hero Honda had hit a 52 week low on Wednesday while Maruti Suzuki hit the same figure on Thursday. With Government not giving a clear nod on the rights issue worth Rs. 20000 cr by the State Bank of India, the scrip lost around 3% during the week. The government is not clear about subscribing to the issue because it will have to shell about Rs. 12000 cr as it holds 59.4% stake in SBI.

The Movers & Shakers of the Week

SURGES

%Change

DOWNFALLS

%Change

JAIN IRRIG

14.5

PUNJ LLYOD

-24.4

WELSPUN CORP

12.8

BH.EARTH MOVERS

-24

SINTEX IND

7.5

UNITECH

-23.4

Global Cues: The increasing interest rates by the Chinese Government showed its affect on the Asian economies as the three key markets of the world which lost value this week were all Asian (Hong Kong, Singapore and India) while China and Japan (1% and 0.7% respectively) just managed to enter the green zone. The western markets continued to attract investor for the second week in succession as Germany and U.S. led the pack of gainers for the week.

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THE IBS TIMES MARKET WATCH Sensex

7 February 2011 18,037.19

8 February 2010 17,775.70

9 February 2010 17,592.77

10 February 2010 17,463.04

11 February 2010 17,728.61

Nifty

5,396.00

5,312.55

5,253.55

5,225.80

5,310.00

DJIA

12,161.63

12,233.15

12,239.89

12,229.29

12,273.26

HangSeng

23,553.59

23,484.30

23,164.03

22,708.62

22,828.92

FTSE100

6,051.03

6,091.33

6,052.29

6,020.01

6,062.90

Gold ($/oz.)

1,352.10

13,64.20

1,363.80

1,363.50

1,356.80

Crude($/bl)

96.02

96.12

96.93

97.59

INR v/s USD

46.4550

45.9237

45.6136

45.7039

45.9519

INR v/s EURO

63.0980

62.3579

62.1486

62.4330

62.7791

* Figures were not available Catastrophe Bond -A high-yield debt instrument that is usually insurance linked and meant to raise money in case of a catastrophe such as a hurricane or earthquake. It has a special condition that states that if the issuer (insurance or reinsurance company) suffers a loss from a particular pre-defined catastrophe, then the issuer's obligation to pay interest and/or repay the principal is either deferred or completely forgiven. BUSINESS JARGONS BY– TANIYA BANERJEE

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DisclaimerThis newsletter is just a compilation of news from various sources. Thus, readers are expected to cross-check the facts before relying upon them. Though much care has been taken to present the facts without error, still if errors creep in, necessary feed back will be always welcomed. Editors will not be responsible for any undertakings. The newsletter is not meant for sale and hence, no part of the newsletter should be used without the prior permission of the editorial team.

SourcesThe Economics Times, The Hindu Business Line, Times of India, Business Standard, Financial Ex-press, Financial Times, Business Week, Business World, The Economist, Wall Street Journal, Bloomberg, Reuters, Moneycontrol.com, Vccircle.com, yahoofinance.com, Business Today, India Today, Investopedia.com, Wikipedia.com, DNA, The Deccan Chronicle, The Hindu, The Tele-graph.

EDITORIAL TEAMADHIRAJ SOOD, SAINYAM KUMAR,SANDEEP ASRANI, SANYA DHAWAN, SHILPA MALHOTRA, SUPRIYA MAMGAIN, TANIYA BANERJEE, VASUNDHARA ARORA.

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