ISSUE - 131
8th NOVEMBER [TUESDAY]
SYNOPSIS
- SWATI VERMA
The IBS Times comes again this week to enrich you with the happenings across the globe. We try to touch on issues affecting people globally; bringing in our own perspectives to make you think in an alternative context. Gear up for yet another scintillating read. One issue that has always been a concern for India is its relations with Pakistan. Though Pakistan has „awarded‟ India with the title of the „Most Favoured Nation‟ , the context seems to be suspicious– indicating it‟s consideration of India as a good partner for bilateral trade and not the other obvious reasons that we wish it should have been. We bring the story in a new light through the Cover Story this week. Chanel– a dream brand for every girl is in the spotlight this week. How this brand that commenced it‟s journey in Paris turned itself into a global brand; making fashionistas around the world awestruck is the focus of Brand Track this week. Sports brings worlds together, but that does not seem to be the case with India as even now each sport and sportsperson is not getting their „due‟ as they say. Sponsorship is a major concern as each sport is not getting the credit they deserve ;while some are glorified beyond limit-much to the dislike of others. This is where we try to view the sole reason that could prove to be a doom for Indian sports through the Opinion Forum this week. Nusli Wadia– the creator of the famous Wadia Group that has brands like Bombay Dyeing under it‟s umbrella is the protagonist of our Focus Of The Week, this week. We try to see how this man singlehandedly established an empire that the world talks about. Moreover we have our regular sections of Fast Track, Quick Bites, Market Watch and a special dose of News @ IBS to give all of you a glimpse of the happenings last week on campus! Hope you enjoy it!
Cheers Swati Verma
SYNOPSIS 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– DECIPHERING OUR NEIGHBOUR’S INTENTIONS!
He also confirmed the actual intent of the statement by the Pakistan Cabinet was that the Ministry of Commerce now had the mandate to take forward the process of normalisation of trade relations between India & Pakistan.
Issuing a statement in Lahore, Gilani concentrated on the commerce ministry’s role as Pakistan and India begin with the nitty-gritty’s of negotiations.
-AKSHAY AGRAWAL Currently red faced with three of it‟s A list Cricketers namely Salman Butt, Mohammed Asif, Mohammad Amir facing jail terms ranging from 12 to 36 months for their alleged (read now proven) role in the Spot Fixing Scandal, with the „crooks‟ facing heavy flak from their native bases, the International Cricket Council, the Pakistan Cricket Board and boards for cricket all over the world are bringing disgrace to the „Gentlemen‟s Game‟. You must have acquired a fair idea on the „Neighbour‟ in contention. On November 5th, 2011 the Pakistan Government decided to implement the process to grant India the status of “The Most Favoured Nation (MFN). Hold your horses! It implies most favoured nation for bilateral trade and not other obvious reasons. Mr Ranjan Mathai, Foreign Secretary for India has quoted that “this move, when actually in place could impact the overall intra-South Asian Regional Cooperation trade”. He also confirmed the actual intent of the statement by the Pakistan Cabinet was that the Ministry of Commerce now had the mandate to take forward the process of normalisation of trade relations between India & Pakistan. This was finalised without an exact time frame, since it was aimed at being a gradual normalisation process. Following the above message, Pakistan‟s Prime Minister Mr. Yousaf Raza Gilani was quick to clarify that the move to grant India a symbolic trading status was simple, and involved none of the military business. Thus the constant race that both the nations continue to pursue, that is, each engineering newer and more sophisticated arms (read missiles) with extended ranges was not a part of the above pact. The move basically stressed that only the business communities and stock exchanges of Pakistan and India are the legitimate stakeholders and both needed to be on board as the political parties of the ruling coalition‟s of both the nations already were. On a core analytical level, the significance attached to the above argument should be that of indifference, since Pakistan has already granted the same to over a hundred nations before actually proceeding to oblige India. Contrary to all the positivity around this recent news, senior civil and military officials held meetings at the foreign ministry to discuss the implications pertaining to the above move. The meetings were chaired by Foreign Minister Hina Rabbani Khar and attended by variousmilitary and intelligence officials. Issuing a statement in Lahore, Gilani concentrated on the commerce ministry‟s role as Pakistan and India begin with the nitty-gritty‟s of negotiations, the Pakistani PM added that the ministry would need to take important decisions independently, de-coupled from any military connotations, yielding mutually beneficial and lasting agreements. The main blessings will be abolition of discriminatory higher pricing and duty tariffs, the main barriers in the path to increased exports. It was also added that interests of both, the local and domestic industries would continue to be protected. Writing and researching for this article, only one trivial (you may call it frivolous) question pops up in my mind, when will these two nations realise the true potential that they withhold as one entity in terms of trade and culture in South East Asia? May be our descendents would be lucky and endowed enough to see light at the end of this dark tunnel!
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FAST-TRACK NEWS
THE IBS TIMES - KRITIKA SETHI
Pranab Mukherjee explains about petrol hike After Prime Minister Manmohan Singh had ruled out any roll back in petrol prices, Pranab Mukherjee explains about the reasons for the price hike. He is optimistic about the differences with ally Trinamool Congress. When asked about the explanation behind the oil marketing companies taking step of oil hike, he replied that he will reserve his comments on this issue for right time. Trinamool congress claimed to withdraw from coalition and the issue will be addressed by PM.
LIC Housing Finance ltd to float Rs 500 crore realty fund V.K. Sharma - Finance Chief Executive officer of LIC Housing Finance which is a subsidiary of Life insurance Corporation of India said that they will float a Rs 500 Crore realty estate venture capital fund within 2 to 3 months. All the regulatory approvals are duly received. Moreover, revision of interest rates in accordance with RBI hiking policy will take place soon.
Another colossal loss– Bhupen Hazarika passes away The legendry singer and composer died this Saturday, 5th November due to multi organ failure. He was admitted in Kokilaben Dhirubhai Ambani hospital and was going through the treatment from June 29th. His companion Kalpana Lajmi was beside him when he died.
Tallest tower to be built in Delhi-NCR in joint venture by Raheja Developers Realty company Raheja Developers has entered into joint venture with Dubai based Arabtec Construction to build tallest tower in Delhi and Gurgaon. Almost 63% stake in project is held by Raheja Developers and rest 37% with Arabtec Construction. Naresh Raheja said that they aspire to meet international standards of construction.
Can food inflation be indicator of growing prosperity Prime Minister Manmohan Singh said that inflation is indeed a problem but the prices of grain are relatively constant over a period of time. The reason for inflating prices of vegetables, eggs, fish i.e. secondary and tertiary food items is the excess of demand over supply. Prosperity is evident whereby there is an increase in national income by 8% per annum compared to 1.6% increase in population per annum.
Rahul Gandhi may be Congress working President soon Congress General Secretary, Rahul Gandhi is likely to be appointed as working president to help his mother and party President –Sonia Gandhi. Party expects great transition in the party functioning due to the delegation of higher responsibility to him. Sonia Gandhi who is expected to have been suffering from cancer has returned from US after 3 months, is keen in delegating the administration duties.
Team Anna members phones are getting tapped Team Anna member‟s phone are being tapped as alleged by Arvind Kejriwal . But the suspicion is not backed by any evidence only the incidents are arousing such doubts. One of the incidents quoted by him are some member called Anna for meeting him at Raj Ghat as they wanted to talk and sit in peace there. To their surprise they got a call from police regarding Anna‟s visit there though matter was not disclosed to anyone.
Beggar thy neighbor policy – That attempts to cure a country's balance of trade, inflation, and unemployment problems by practices that harm the economic interests of its trading partners. It can take the form of import quotas, raising tariffs, devaluing currency etc.
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THE IBS TIMES
.
Greek PM wins crucial vote Greek PM, George Papandreou survived a crucial parliamentary confidence vote. A total of 153 law makers including all MPs from Papandreou parliamentary faction and one former faction member backed the government. He promised to broaden the coalition government and discuss the candidacy for PM post with new government. MFN status not granted to India as said by Gilani Pakistan PM Yousif Raza Gilani said that Pakistan has not granted the „Most Favoured Nation‟ status to India. The Cabinet has only given its approval in principle to move forward on the issue (of MFN) and permitted the Ministry of Commerce, which is actively engaged in trade talks with New Delhi, to negotiate with it trade-related issues. Gilani's remarks came against the background of a flip-flop by the Pakistan government on the issue of whether India had been granted MFN status. Dubai plans to donate used laptops Three organisations in Dubai have launched a campaign through which the public will be encouraged to donate used laptop computers which will then be recycled and donated to educational and social charitable institutions. The campaign by the name of 'Tadweer' has been launched jointly by the Dubai Municipality, Emirates National Oil Company and TNT Express UAE. India v/s West Indies- team India gears up After losing their No. 1 Test crown in abysmal fashion in England, India is now geared up for a three-match Test series against the West Indies starting at the Ferozeshah Kotla. There is lesser than usual hype surrounding the series, partly due to it being a series against the West Indies and also because it is the end of a year which saw the World Cup, IPL, Champions League and then the England ODI series in the country. But irrespective of the public perception, this series is important for both teams, albeit for different reasons. If India hopes to put the nightmare 0-4 whitewash of England behind them, West Indies would want to work on the recent Test series win in Bangladesh. Milind Kumar shines in Ranjhi Trophy Milind Kumar‟s first Ranji Trophy match got extra special when he not only notched up a slow but effective half-century, but also took Delhi to a commanding position over Haryana after the second day of their Elite division match at the Roshanara Club Ground New Delhi .After Haryana's first innings folded at 293, Delhi ended the day with 214 runs on board for the loss of three wickets. Pakistan to have its own inquiry over the fixing scandal Pakistan Cricket Board plans to hold an internal inquiry into the circumstances that led to the involvement of its three jailed players in the spot-fixing scandal. The new Chairman of the board, Zaka Ashraf made it clear that it was surprising that the players got involved in the scandal despite the PCB sending anti-corruption officers to England with the team. Ashraf, who replaced Ijaz Butt as PCB Chairman last month, said the board would wait to get the full judgment of the Southwark Crown Court in London on the spot-fixing trial before starting its own inquiry.
Stripped Bond–
A stripped bond is a bond that has had its coupon payments and principal repayment stripped into two separate components and
sold individually. One party will receive the principal at maturity (zero-coupon bond) and the other party will receive the fixed-interest payment over the life of the bond in the form of a stream of coupons. stream of coupons.
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THE IBS TIMES
OPINION FORUM–SPONSORSHIP-A BIG ISSUE IN INDIAN SPORTS
- GAURAV MALIK
It dates back to history that sports have been an integral part of a life of a human being. According to our Vedic era sports were considered indispensable without which the human being was not complete and did not attain full realization. Even our holy books Mahabharata and Ramayana gives impetus on indulging in Chariot –racing, horse man ship ,archery etc for a human being to be qualified as a warrior or what we know as „Kshatriya‟ But times have changed now and in today‟s fast moving world people are getting more indulged in business or profit making activities in sports and have started treating sports as a mode of business and the whole purpose of enjoyment, recreation and building physical fitness have somewhere lost in the glittering and lightning aspect of money involved. Seeing the recent instance of the Formula Grand Prix held at the Buddh International Circuit evidenced that the Indian corporate is only concerned with
Seeing the recent instance of the recent Formula Grand Prix held at the Buddh International Circuit evidenced that Indian corporate is only concerned with making huge margins of profit.
making huge margins of profit and they are least concerned with improving the quality and standard of sports in its own mother country. The bone of contention is that if the businessmen splurge so much of the their money on sports like Cricket and other western sports then why should they not spent on promoting other important Indian sports like football, badminton, tennis, basketball, kho-kho kabbadi etc. Leaving rest aside even our national game hockey has not got its due even after 64 years of gaining sovereignty. Even a child would not know what hockey is all about but he would certainly know what the F1 Race is all about as he is exposed to F1 advertisement or hoardings he would see on the sidelines. That is where the actual problem lies the exposure or the kind of attention other Indian sports should get are not getting it, relating to the plight of our national game was when our national team players had tried to sell off their team-jerseys in order to make up the investment to be made up for the tournament to be held riding on the lack of sponsors or promoters, also players were ready to sell off their medals in order to get rid of their financial deficits as they were unemployed and were not given their dues let alone respect and appreciation. On the other hand Airtel have spent close to around 1000 crores on Indian Grand Prix to promote western sports. Next comes football where the situation is even worse as compared to our national game. Its ranking at the world stage is 160 which in itself describes the pathetic state in which it is at the moment, Non –Cricketing sports are now coming up mainly because of some personalities like Saina Nehwal, Rohan Boppana,Somdev Devburmann to name a few priding India by representing it at the interanational level. And who can forget Abhinav Bindra who made us proud by winning the lone gold medal by winning at the Beijing Olympics and Vijendra Singh and Sushil Kumar making us proud at the Commonwealth Games 2010.Hence these few names would definitely help in building other non-cricketing sports as they by themselves came up by spending money on their training and practice and have somehow found some support system so that it
These few names would definitely help in building other non-cricketing sports as they by themselves came up by spending money on their training and practice they have attained.
did not hindered in the way of reaching the positions they have attained. Cricket has been the major sport in India considering the amount of sponsors and advertisers it gets and the amount of attention it gets also does not go well with the development of other sports in India. The lack of infrastructure and basic amenities have been founded wanting among the non- cricket Indian national players which have only compounded the problem.. Talking about interest, people were ready to buy tickets of Grand Prix which was priced at 7000-39000 and the inaugural match of Lionel Messi at Kolkata costing up from 700 to 5120. As compared to commonwealth games where the range was 50-1000 and then also it was a low turnout . So every sport in India should be promoted with equal efforts and associations like Indian Olympic Association and Sports Ministry should address this issue in a more stringent manner and not just by revising National Sports Bill on 14th October 2011 and should try to map India as a sporting nation on the world stage.
Crowding-out Effect- Any reduction in private consumption or investment that occurs because of an increase in government spending. If the increase in government spending is financed by a tax increase, the tax increase would tend to reduce private consumption. If instead the increase in government spending is not accompanied by a tax increase, government borrowing to finance the increased government spending would increase interest rates, leading to a reduction in private investment.
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THE IBS TIMES
BRAND TRACK— ―CHANEL – FASHION THAT FOLLOWS LIFE‖!!
- AVLEEN KAUR SARNA
When it comes to fashion „Chanel‟ is a legendary name for everyone, but for me it is much more than that probably after possessing it as the most beautiful gift ever. Famous for quilted bags, little black dresses, and that iconic double C logo, the French fashion house is one of the most well known and instantly recognizable brands in the world. Chanel S.A commonly known as Chanel was founded by Gabrielle „Coco‟ Chanel and the first House of Chanel was established in 1909 when she opened the first millinery shop, called Chanel Modes in Paris. Thereafter, she quickly moved into the high class Rue Cambon graduating from selling women‟s hats to fashion forward women‟s garments. The Chanel clothing line revolutionized Paris fashion and the way women around the world related to their bodies. Chanel herself dressed in mannish clothes and adapted these more comfortable fashions which other women also found liberating. With the release of the little black dress the House of Chanel exploded with fame. It was one of the defining pieces of the company‟s suc-
Chanel S.A commonly known as Chanel was founded by Gabrielle ‘Coco’ Chanel and the first House of Chanel was established in 1909 when she opened the first millinery shop, called Chanel Modes in Paris
cess. The simplistic design of Chanel‟s haute couture was appealing to women who had been stifled by the uncomfortable fabrics. Her easy moving, jersey type garments introduced a casual feel to the most elegant suits and dresses. Classic monochrome designs and polished ladylike styles were common along with the use of tweed fabrics which began with the traditional „Chanel Suit‟ in early 1920‟s. Most of her fashions had a staying power and it did not change much from year to year or even generation to generation. Chanel also became famous for its jewellery collections and perfumes. The signature fragrance No.5 was created after a fortune teller told Coco Chanel that her lucky number was five. It was released on fifth day of the fifth month i.e. on 5th May 1921. In 1935, the renowned designer owned several buildings, employing four thousand people in France. Closing the couture house in 1939, Chanel continued to sell perfumes and accessories in her boutiques. She made her mark again in the fashion world by releasing a revolutionary Chanel handbag. The Chanel 2.55 became her personal signature on the world infused with many personal references from her life. In 1957, a fashion Oscar dubbed Coco Chanel as the most influential designer of the twentieth century. The Chanel 2.55 has remained the „classic‟ Chanel purse throughout history. Its design simplicity incorporates a chain strap woven with leather, the double C logo that made the brand famous. Also ,some of them like the classic flap, the clutch, the tote and the bowling bag were the movers and shakers of the fashion world. „Simplicity is the keynote of all true elegance‟ was the image that characterized this brand which could be recognized by each of its products. Her influence touched many American and European designers, who have continued to reinforce her concept of uncomplicated classics. One such designer is Karl Lagerfeld who took over designing the Chanel couture line
Thus ‘in order to be irre-
in 1983 and ready to wear collections the next year. He is widely credited with bringing Chanel back to the forefront of
placeable one must always
fashion by taking original Chanel designs and tweaking them to appeal to younger customers.
be different’ owing to
Year 2000 saw the launch of the first unisex watch by Chanel, the J12, a style whose clean cuts and fusion of masculine and feminine elements formed a revolutionary watch. To please its young followers, Chanel introduced an „In-Between
which Chanel remains one
Wear‟ in 2003.
of the most prestigious
Today, Chanel operates over 200 boutiques worldwide. The locations are found in upscale shopping districts, upscale
and successful fashion
stores, malls and the major airports. Its wide range of products includes the fashion accessories, jewellery, watches, perfumes, ready to wear and handbags. Thus in order to be irreplaceable one must always be different 'owing to which Chanel remains one of the most prestigious and successful fashion houses in the world.
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THE IBS TIMES
QUICK BITES- NEWS THAT CAN’T BE MISSED !
- LISA .T. SAMUEL
Big Shots… Rahul Gandhi to take over as Congress Chief in weeks. Barack Obama and congressional leaders huddle behind closed doors as the debt ceiling deadline looms.
Company Talks… Apple Inc gave six of its top executives $60 million in company stock after record revenue of $108.25 billion last fiscal year. Bharti Airtel quarterly net down by 38%, lowest profit in the last five years. ONGC profit up 60% on oil prices. Power distribution Companies face INR 70K Cr. deficit. HCL Info‟s net slides 74% to INR 12 cr. CME Temporarily Reduces Margin to Ease MF Global Account Shift. GM to recall 38,400 Pontiac G8s on airbag issue. SAIL‟s profitability will remain under pressure until input prices fall. Philippines Co to buy Murugappa unit. Maruti Suzuki October sales plunge by 52.2% at 55,595 units. GAIL eyes trading in Singapore. Mitsubishi Heavy Industries to set up new subsidiary for power.
Economy Speaks… Crude oil may fall next week on economic outlook. Inflation to come down sharply by third week of December 2011 : Kaushik Das Petrol prices raised by Rs 1.8/liter even as oil companies make profits. Rupee down by 30 paisa vs. dollar. Indian firms may land iron mining contract in Afghanistan. Indian tomatoes flooding Pakistan, pushing up domestic prices. Gold regains Rs. 28000 mark ,silver up by Rs 2,300. Illegal mining probe, CBI files FIR against 21 persons. Natural rubber consumption down by 8 %, output up by 3 % in October 2011. Cement prices push up costs for real estate companies by 20 %. Indonesia Seeks 5 LT rice from India.
The Captains of the Ships… CEO of UBS – Sergio Ermotti Former Tata and Retail PR Agent – Nira Radia CEO of Mondial-Serge Corel
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THE IBS TIMES
FOCUS OF THE WEEK- A MAN OF REMARKABLE WILL AND SUBSTANCE
The owner of the Wadia Group Nusli Wadia’s journey of running and expanding his family business has been paralleled with the progress of BJP
The owner of original South Mumbai textile giantBombay Dyeing, Nusli Wadia is an extremely sorted man
-
POOJA DALAL
Many descriptions fit this man well. Some call him a businessman, where others opine that he is more of a political person. His wife calls him „Crisis junkie‟! But what do you call a warrior who fights not just because he loves it, but because it is his duty, because he thinks he can make a difference, because he follows principles he believes in. He won‟t give in so easily. He might have been at the heart of many controversies, but consider any great man ever who did not earn that distinction! The owner of original South Mumbai textile giant- Bombay Dyeing, Nusli Wadia is an extremely sorted man. But he was not always so. When sent to a school in England, he faired horribly. But after being called back, he proved to be a skilled businessman. While Bombay Dyeing was huge, it did not operate through the retail segment. His biggest contribution was to start the retail stores that would eventually earn a major share in the future. But apart from his business acumen, his tendency to get involved in controversies did not go unnoticed. His life‟s prime crisis were very much public. And that includes the episode of the clash with his father, and the legendary duel of the Wadia‟s and the Ambani‟s. Things never came easily to him. At the very start of his career, his father decided to sell off their business and settle in Switzerland. According to him India no longer was for the honest, besides they could live a luxurious life in Europe with the wealth they already possessed. But for the young Wadia, it was not the luxury of life that counted most. It was the belongingness. He would rather be in India and out of business than in Europe and a second-class citizen. With help and support from his mentor J.R.D Tata, he won over his father. And he not only stayed in India, but revived Bombay Dyeing as well. The second (and a long) tussle with the Ambani‟s started with Dhirubhai Ambani winning over political favours, and as Wadia saw it, ensuring that others are out of favour. The clash became more complex by the day and went on to include top notch politicians of the day. None of them ever gained out of it. Apart from the controversial nature of his well-known feuds, it showed his immense will and ability to get what he wanted. A similar case was the deal for partnering to sell biscuits (Britannia). Every time whatever he targeted he achieved. Maintaining good relations with people in power had been a unique gift Wadia was bestowed with. And his journey of running and expanding his family business has been paralleled with the progress of BJP too. He believed India to have an opposition party to keep a check on the ruling party and hence from his early days has been one of the patrons and ardent supporters of the political party, and one of the businessmen closely intertwined in the political system of the country. Having done his duties of a good businessman, he has now bequeathed the functioning of his businesses to his two sons. Jeh founded and operates the budget airline GoAir and Ness is taking Bombay Dyeing further. So all in all, Nusli Wadia has had a long and satisfying career, controversy prone for sure, but he came out of them winning. Many „not so fortunate‟ instances of his business life have passed. And what remains of a man, to be committed to history should be his greater side. He as a human being, has had tremendous faith in people, in the fairness of the system (of India), and a firm belief that only one‟s motherland can be a rightful place for a human.
Doji -
It is a name given for candlesticks that provide information on their own and also feature in a number of important patterns. Doji is formed when a security‟s opening and closing are virtually equal. A doji‟s candlestick looks like a shape of the cross, inverted cross or a plus sign. Dojis when alone are considered as neutral patterns.
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THE IBS TIMES
NEWS @ IBS– ALL HAPPENINGS IN IBS HYDERABAD!
- AVINASH ROY
This week continued to be a week with mixed feelings for both senior and junior batch. On one side where the first year students have somehow started to enjoy their new sections with new friends and faculty, for the seniors it had been a hectic schedule with interviews and other selection procedures which lasted even till midnight for almost every day throughout this week. Let us have a look at what all happened at IBS this week. STOCKYARD: BHAV MANDI 2011 Club STOCK YARD came up with its flagship event „Bhav Mandi 2011‟ which turned out to be a grand success for the club. An event which tried to make the upcoming future managers at IBS Hyderabad feel and experience the real world‟s open outcry trading system. More than 40 teams turned out for the event with 2 members each. The event had 3 rounds which mainly dealt with trading shares of different companies in different market scenarios. The unique feature of the game this year was the addition of concepts like Short Selling and IPO which made the game even more exciting and electrifying. Ultimately the team who made the maximum amount of profit during their trade was declared the winner of the event. Club STOCK YARD would like to convey its heartiest congratulations to the winners of Bhav Mandi 2011- Karishma Pandit & Aditya (winning team) and Aditi Ghosh & Vaibhavi Sharma (runners up).
PLACEMENTS 2010-12 Batch The placement process for the 2012 batch continued with companies like Smart Cube and I-bexi who visited campus to hire future managers. The total count of people placed exceeded 200 with many more yet to join the league. Companies like Tata Capital, Bajaj Allianz General Insurance Company (BAGIC) and Cognizant Technologies are expected to visit the campus next week.
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THE IBS TIMES MARKET WATCH
- SWATI VERMA
The world markets had a tumultuous week for the world stock markets. The markets continue to jitter due to continuation of the Greek saga. Except China, entire global pack closed in red. Even the Indian stock markets were down due to increased risk aversion in the west which continues to overweigh markets. Food inflation is at 9 months high currently at 12.2%.Strong demand from rural India and shift in dietary habits due to increased standard of living has resulted in higher prices. Removing the supply-chain bottlenecks can help reduce the food prices . But considering that this is a structural problem it would take time before it gets resolved. However, a good harvest in the coming season and steps to reduce wastage can provide some respite in the near term. Amongst the sectoral indices, Auto and Metals lost considerable ground and were down by 3.4% and 2.5% respectively. Both auto and metal stocks were down on concerns over earnings disappointment from select heavyweights. However, FMCG and Power stocks were relatively flat during the week. The next couple of months can witness an upsurge in the Banking stocks due to the saving rate regime. Moreover infrastructure could also be a sector to look out for. The Movers & Shakers of the Week
SURGES
%Change
DOWNFALLS
%Change
JAI CORP LTD
18.3
20.8
JSW STEEL
16.4
STERLING BIOTECH JAIN IRRIGATION
ALLAHABAD BANK
16.1
REI AGRO LTD
8.3
11.3
Let us have a look at the key economic developments during the week. India's oil marketing companies have again raised petrol prices by about 3% in order to combat losses on sales of fuel due to higher crude oil prices globally and rupee depreciation. Oil prices were raised by Rs 1.8 per liter. This is the fourth price hike by retailers since January. Following the increase, petrol now costs Rs 68.64 per litre in Delhi, up from Rs 66.64 a litre earlier. The retail selling price in different cities will vary according to local sales tax. However, as the move has created a huge furor amongst allies, the government is considering a partial roll back in prices. In news from the power equipment sector, the Heavy Industries Ministry has announced that it will seek duty on Chinese and Korean imports to level the field for domestic vendors against cheaper imports. As per the ministry, this would be necessary for the domestic equipment manufacturers to raise the capacities. Indian companies that pay local manufacturing taxes have been demanding a 14% duty on imported equipments, especially on those from China as Yuan is artificially pegged and puts local players at a disadvantage. Global Cues: The world is facing upheavals due to global recession taking place across the globe. France was down by 6.7% while Germany by 6%. They were followed by UK and Japan which witnessed a downfall of 3.1% and 2.8% respectively.
19000
12500
18800 18600
S E N S E X
12300 12044.47
11955.01
18400
11836.04
12100 11983.24
11657.96
11900
18200
11700
18000
11500
17800
11300
17600
11100
17705.01
17400
17562.61 17480.83
17200
17464.85
17481.93
02-Nov-11
03-Nov-11
10900 10700
17000
10500 31-Oct-11
01-Nov-11
04-Nov-11
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D J I A
THE IBS TIMES MARKET WATCH 31 OCTOBER 2011 17705.01
1 NOVEMBER 2011 17480.83
2 NOVEMBER 2011 17464.85
3 NOVEMBER 2011 17481.93
4 NOVEMBER 2011 17562.61
Nifty
5326.60
5257.95
5258.45
5265.75
5284.20
DJIA
11955.01
11657.96
11836.04
12044.47
11983.24
HangSeng
19864.87
19369.96
19733.71
19242.50
19842.79
FTSE100
5544.22
5421.57
5484.10
5545.64
5527.16
Gold ($/oz.)
1717.50
1721.40
1730.90
1759.40
1754
Crude($/bl)
107.12
106.35
108.65
107.95
-
INR v/s USD
48.45
48.99
49.52
49.65
49.57
INR v/s EURO
68.52
68.66
68.13
68.22
68.11
Sensex
Flipping -Term used primarily in the United States to describe practice of buying an asset and quickly reselling (or flipping) it for profit. Though flipping can apply to any asset, the term is most often applied to real estate and initial public offerings.
BUSINESS JARGONS BY – ANKIT SHARMA
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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 TEAMAKSHAY AGRAWAL, ANKIT SHARMA, AVINASH ROY, AVLEEN KAUR, GAURAV MALIK, KRITIKA SETHI, LISA.T.SAMUEL, POOJA DALAL, SWATI VERMA.
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