The IBS Times, 126th Issue by Stock Yard

ISSUE - 126

16th SEPTEMBER [FRIDAY]

EDITOR’S DESK

- TANIYA BANERJEE

After a week long hiatus here we are! Back again! The land of Gandhi perhaps needs to shift its gears from acceptance of every atrocity levied upon it to full blows. Time and again India has proved to be a testing ground and soft target for terrorists. The recent blasts in Delhi reinforced it further. Get the complete news on our Cover Story this week. With myriad cultures comes myriad views! And with different views comes greater chances of differences. Recently the National Advisory Council has drafted the Prevention of communal and targeted violence (access to justice and repatriations) bill, 2011. Get our writer‟s opinion on this new development in our Opinion Forum this week. Shoes have been a fetish among fashionistas for long. And Jimmy Choo is no unfamiliar name in this realm. Get to know more about this brand in our Brand Track section this week. As our Focus of the Week this time we bring to you „Infrastructure Bonds‟. Primarily defined as the bonds issued by an organization to get funds that will be used for infrastructure in the Real Estate development these have caught the imagination of investors. Get to know more about them here this week. 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! Happy Reading! Cheers, Taniya Banerjee

EDITOR COVER

1 OPINION 2 BRAND

5 FOCUS 6 NEWS @ IBS

8 9

FAST-TRACK

3 QUICK BITES

7 MARKET

THE IBS TIMES

COVER STORY– NEW DELHI: THE NEW CAPITAL OF TERRORISM?!

- AVINASH ROY Recently, Anna warned the government that he won‟t budge till Jan Lokpal Bill is passed. “You should not allow this torch of struggle to be put out whether Anna is alive or not” he addressed the crowd while stepping out of the Tihar jail and hence the agitation goes on. The tragedy of India is not what it is but what it could have been.

The regions with long term terrorist activities today in India are Jammu & Kashmir, Mumbai, Central India ( Naxalism ), the seven sister states ( independence and autonomy movements ) and recently Delhi has also joined the league.

Terror revisited the heart of the Capital on Wednesday morning when a powerful bomb ripped through a crowded reception area at one of the entrances to the Delhi High Court, killing at least 11 and injuring 76, 2 among whom are serious. The terror attack, from a sophisticated explosive device, had a precursor less than four months ago- on May 25, when a low intensity bomb went off in the same area, though outside a different gate. Questions have been raised in police circles whether that blast was an attempt to gauge the area‟s preparedness to ward off terror as well as its vulnerability. Police officials said the bomb went off at 10.15 am outside gate 5 which was jam-packed with visitors waiting for entry passes. The bomb is believed to have been placed in a briefcase and left near gate number 5 of the court. Several limbs and pieces of flesh lay strewn on the ground where there were pools of blood after the deafening explosion that dug a small crater outside the reception area. Home Minister P Chidambaram confirmed in Parliament that the blast was a terror attack. However, the module behind the perpetrators of the blast would be brought to justice. The National Investigation Agency (NIA) has taken over the investigation and is probing all angles. Delhi Police has released sketches of two suspects involved in planting the bomb. The entire area was cordoned off by the Indian Army. Forensic teams, including NSG, are already working collecting evidences, while NSG commandos are on standby. Now that the people of Delhi are trying to recover from the unbearable loss, threats of more terror attacks in Ahmedabad are making people worried. Despite regular inputs from intelligence agencies about veiled terror threats to the capital, all security measures including those at administration and technical level are proving no more than sporting gestures at many sensitive places. Though the national capital has witnessed several gruesome terror attacks in the past like bomb blast in Paharganj on October 29, 2005 in which 6 people died and another blast on the same day in Sarojini Nagar which claimed 50 lives, the police is yet to wake up from its deep slumber when it comes to strict security check. Year 2008 also witnessed bomb blasts at Connaught Place, Karol Bagh, Central Park, Greater Kailash and 5 other places, the Ministry of Home Affairs came out with the proposal to bring the whole city under the eyes of CCTV cameras and to open a hi-tech command room within the police headquarters. The government‟s sincerity can be gauged from the fact that even after the completion of Commonwealth Games, the project of the Home Ministry has failed to see the light of the day. Even most crowded areas in Delhi like Lajpat Nagar market, Central Park, Bengali Market, Bhagirath Palace and Kashmeeri Gate have not been equipped with CCTV cameras yet. And at places where such cameras were fixed do not function well in absence of proper maintenance. The regions with long term terrorist activities today in India are Jammu & Kashmir, Mumbai, Central India ( Naxalism ), the seven sister states ( independence and autonomy movements ) and recently Delhi has also joined the league. As of 2006, at least 232 of the country‟s 608 districts were afflicted, at differing intensities, by various insurgent and terrorist movements. In August 2008, National Security Advisor M.K.Narayanan has said that there are as many as 800 terrorist cells operating in the country. For each attack the terrorist come up with a different issue regarding motive behind it, but one thing that remains the same for every terror attack is the killing of several innocent people who are being slaughtered like anything. This recent incident again has raised the same question, how long are we going to live in fear in our own country under such frequent terror attacks. People say the last time India faced a war was way back in 1999 in the form of Kargil war, but is it so? Aren‟t we facing a similar situation as of war of loosing lives of innocent citizens of India on a regular basis? This is the question which everyone has been asking for but is yet to be answered.

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FAST-TRACK NEWS

THE IBS TIMES -KISLAY KUMAR

SAIL to pump Rs 20,000 crore in Bengal by 2012

Steel Authority of India Ltd (SAIL) today disclosed its Rs 20,000 crore investment plans for capacity expansion in West Bengal would be completed by June 2012. The expansion will involve various steel companies in the state, SAIL chairman- C S Verma said today after meeting Chief Minister- Mamata Banerjee. According to Mr. Verma, SAIL is setting up a 2.5 million tones plant at Burnpur at a cost of Rs 16,000 crore and it would be completed in June 2012.

Gold down Rs 150, silver sheds Rs 1,000 on global cue

Snapping its two days of rally, both gold and silver fell in the national capital today on reduced off take by stockiest and retailers at higher levels amid a weak global trend. While gold fell by Rs 150 to Rs 28,440 per kg, silver dropped by Rs 1,000 to Rs 64,700 per kg. Traders said reduced off take by stockiest and retailers at existing higher levels amid a weak global trend mainly led to the fall in precious metals.

NASA launches twin satellites bound for moon

The two small Grail spacecraft - which are about the size of washing machines - will fly in formation above the moon‟s surface to map its gravity. Twin satellites blasted off aboard a rocket Saturday on a mission to unveil the inner secrets of the moon, the US space agency NASA said. The Grail spacecraft launch at 9.08 am aboard a Delta II rocket from an Air Force base adjacent to NASA‟s facilities at Cape Canaveral, Florida.

Tata Motors global CEO Carl-Peter Forster quits

Tata Motors on Friday said its Group CEO and Managing Director Carl-Peter Forster had quit due to „unavoidable personal reasons'. Post his exit, Prakash Telang -Managing Director of India Operations and Ralf Speth- CEO of Jaguar Land Rover will represent their respective operations on the board.

Exports rise 44 % at $24 billion in August Exports grew 44.2 per cent at $ 24.3 billion in August, showing an outstanding year-on-year expansion despite uncertainty in the U.S. and the euro zone. Imports too grew by a faster pace of 41.8 per cent at $38.4 billion, leaving a trade deficit of $14.1 billion in August. During April-August 2011-12, exports have put up a robust annualized growth of 54.2 per cent at $134.5 billion. In the same period, imports expanded by 40.4 per cent to $189.4 billion, while the trade gap stood at $54.9 billion.

Rising imports drag China’s trade surplus in August China‟s trade surplus continues to fall as its imports, fuelled by growing domestic consumption, exceeded exports last month shrinking its trade surplus by $13.73 billion. The surplus fell to $17.75 billion in August, from July‟s $31.48 billion. Exports which were declining in the recent months, was up by 24.5 per cent year-on-year in August at $173.31 billion, according to the August figures released by the General Administration of Customs

Lockheed delivers fifth C130J to IAF The fifth of the six C-130J Super Hercules, an advanced transport aircraft, ordered by the Indian Air Force has been delivered as told by American manufacturer Lockheed Martin The aircraft departed the Lockheed Martin facility in Marietta yesterday. India‟s sixth C-130J will be delivered in October. The six C-130Js will give the Indian Air Force new special operations capabilities using the world have most advanced airlifter, he said.

12b-1 Fee –A fee charged mutual fund investors, deducted directly from the fund's portfolio, to cover marketing expenses and sales commissions.

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THE IBS TIMES At least 200 dead, many missing, in Tanzania ferry disaster More than 200 people have drowned after a ferry sank Saturday off the coast of Tanzania, an official from the country‟s Red Cross National Society said. Many more are still missing, as the vessel had a capacity of 650 passengers, and may have been overloaded. Some 325 people have been rescued, including 60 children. A dozen survivors are severely injured. The ship sank close to the coast of Pemba Island and the Red Cross deployed teams to the coasts to collect bodies as they were washed away.

JSW Steel to start construction of Rs 35K cr steel plant in Bengal Mr. Sajjan Jindal-controlled JSW Steel Ltd on Saturday said that it would start construction of its Rs. 35,000 crore integrated steel plant at Salboni in West Bengal, after the festive season in October this year. Commercial production for the first phase of the project is expected to begin in 2014. Mr. Jindal today met the West Bengal Chief Minister and State Commerce and Industry Minister, Mr. Partha Chatterjee to discuss issues pertaining to its steel plant project.

Honda recalls 347000 pilot SUVs globally Honda Motor Co Ltd is recalling almost 347,000 Pilot sport utility vehicles worldwide for a potential problem with the front seat belts. The Japanese automaker said, the recall which affects vehicles built in Lincoln, Alabama for model years 2009 through 2011, were being performed because the driver or front passenger seat belts could become disconnected from the anchor webbing in an accident, increasing the risk of an injury.

Obama unveils $447-b plan to create jobs, revive economy The US President, Mr. Barack Obama, has asked the lawmakers to pass immediately the $ 447 billion proposal to create jobs and revive the economy. In an address to the joint session of the Congress, Mr. Obama said, “The purpose of the American Jobs Act is simple: to put more people back to work and more money in the pockets of those who are working. Meanwhile, the Federal Reserve Chairman, Mr. Ben S. Bernanke, warned that quick deficit reduction may hurt the recovery and said the central bank this month will consider steps to bolster growth and spur hiring.

ICICI Bank to hire 6,000 people this fiscal Country's largest private lender ICICI Bank will recruit up to 6,000 people this fiscal to help its business growth and expansion, bank Managing Director and Chief Executive Chanda Kochhar said on Friday. Most recruitment would be at the entry level and would be done either directly or through institutes training graduates in banking and insurance where the bank had tie-ups, she said.

Nadal beats Roddick, sets up US Open semifinals vs Murray Defending champion Rafael Nadal set up a meeting with fourth-ranked Andy Murray in the semifinals of the U.S. Open by overwhelming home favourite Andy Roddick in straight sets in the last eight on Friday. Whipping passing shots from all angles and returning superbly, the No. 2-seeded Nadal beat No. 21 Roddick 6-2, 6-1, 6-3 to reach the semis at Flushing Meadows for the fourth consecutive year. The Spanish star compiled a stunning 22-0 edge in forehand winners and broke Roddick‟s powerful serve six times.

Alistair Brownlee wins world title Britain‟s Alistair Brownlee won the triathlon world title for a second time after racing to victory in the final event of the season in Beijing on Saturday. The cold and rain didn‟t stop Brownlee as he completed the Beijing run comfortably ahead of Switzerland‟s Sven Riederer and his brother Jonathan Brownlee, who finished third on the day and second in the final series standings. Spain‟s Javier Gomez ended the season third overall after placing sixth on Saturday.

Overlay Strategy- Addition of managed futures to an existing investment portfolio.

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THE IBS TIMES

OPINION FORUM– NIC FIGHTS FOR PEACE

-POOJA DALAL I am not saying that Gaddafi was some god man who did nothing wrong but he was also not the monster they portray him to be. Of course some of the atrocities that he committed were shameful and he should be punished for that but compare Libya to the rest of Africa and you will see the difference. Considering the bans, the embargoes, the hostilities he had to face, that man did a brilliant job of holding Libya together and it‟s high time we gave him credit for that.

The Cultural extravaganza of our beloved mother India makes us stand apart in the history of this world as one of the most diverse (yet united) nations.

The Cultural extravaganza of our beloved mother India makes us stand apart in the history of this world as one of the most diverse (yet united) nations. But time and again we have had to pay the price of this diversity, mostly in the form of communal violence. To stop any such further occurrences, NIC (National Advisory Council) has drafted the Prevention of communal and targeted violence (access to justice and repatriations) bill, 2011. The bill refined and redrafted by NIC in its current form, considers the following to be communal offences: Targeted violence, sexual assault, hate propaganda, torture, dereliction of duty (by public servants) and financial aid for such communal crimes. This bill thus increases the scope of punishable crimes (providing financial aid or any other kind of support to such activities was not punishable previously). Looking at the half-full glass first, there are many pros in the bill. The bill makes lending financial or any other kind of support for the commission of offence, a punishable crime. It also brings under its purview, the public servants. They are first responsible for their duty and second for non-involvement in the crime itself. The bill is also proactive in the sense that it allows officials to arrest and investigate or debar a person/ persons from a particular vicinity/state, they think are about to carry on an activity that may in any way hamper the peace of the society. This can actually lead to reduction of such incidents. But like any other bill, this one too has met with harsh criticism and a lot of it is justified too! While recognising the crime by an individual, it is to be made sure that the crime in question was committed by him with the virtue of him being the member of a group. And if his intentions were to inflict suffering on the person of other community, by being the member of other community (and not an individual). This requirement by itself is very subjective and can be used by any person cunning enough. Moreover it considers an individual as a part of one community rather than an individual and this increases the chances of a person being labelled as a criminal, just because he belongs to a particular community (which also happens to be the majority in most cases). The decision is even more critical as the offences under the communal violence bill are cognizable and non-bailable. And punishing an innocent has always been against our constitutional principles.

But also where a person’s life and our countries’ secularism is at its stake, we cannot let any loopholes find way into the bill.

This bill thus is a double edged sword. It confuses us whether the new thought out measures of the NIC should be encouraged (so that government proceedings become proactive) or curbed (so that they cannot be misused). But also where a person‟s life and our countries‟ secularism is at its stake, we cannot let any loopholes find way into the bill. Perhaps a bill that does not look at the person‟s community or caste, but rather his actions for the purpose of accusation, will be more justified. Government is doing or at least trying to do its bit, but it‟s high time that we, as the citizens of our country, start respecting each other as individuals with same rights and similar culture rather than looking at one another with ridicule and differences. It is the least our country can expect from its „educated‟ and „literate‟ mass. Just imagine an India where we just have 1.21 billion Indians and not just 82 million Hindus, 13 million Muslims, 2.4 million Christians, 1.9 million Sikhs, .7 Buddhists, and .4 million Jains. It would be my dream country, will it be yours too?

Writer extendible option- An option whose expiration is extended if some pre-defined condition is met.

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THE IBS TIMES

BRAND TRACK—JIMMY CHOO ..PROTECTED BY PRICE

-KRITIKA SETHI

The magnanimity of the brand Jimmy Choo has become synonymous to exquisiteness and luxury. The aura of this brand seems to surround every woman and so is the case with me which has swayed me to write about this cliquish brand. Jimmy Choo, a Malaysian Shoe Designer was born in the family of a shoemaker in Penang in 1961.He studied at the London School of Fashion, from where this magical journey begins. A mistake made by the registrar at the time of issuing the birth certificate to “Jimmy Chow” marked the beginning of “Jimmy Choo”. The success of the brand can be traced back to his first workshop opened in London in 1961 in a rented hospital building. It was here that he initially laid the foundation of his business. His creations and craftsmanship were of international standards as supported by the fact that the work was featured in 1988 issue of Vogue. In 1966, Jimmy Choo was launched with the help of Tamara Mellon, The magnanimity of the accessories editor at the British Vogue. Tamara and Jimmy Choo together started the “ready-to-wear brand Jimmy Choo has shoes” line. In 1998, Jimmy Choo opened his first boutique in New York followed by Los Angeles in become synonymous to 1999.

exquisiteness and luxury.

The brand sparkled with immediate success thereafter and became synonymous with “red carpet shoes”, hailed with the tag of lucky charm for the Oscar winners of Hollywood. In April 2001, Jimmy Choo‟s equity shares were purchased by Equinox Luxury Holding STD. In November 2004, Lion capital acquired majority shareholdings, valuing the company at £ 101 million. In October 2009, it announced a new license agreement with Inter Perfume SA for the creation, development and distribution of fragrances under the Jimmy Choo brand. Today Jimmy Choo encompasses a complete luxury lifestyle, accessory brand with women shoes, handbag, small leather goods, sunglasses and eyewear. Its store network expands over 115 locations in 32 countries. Now, Jimmy Choo is moving forward with the luxury-boom brand strategy. Does the world need another lifestyle luxury brand?

The company‟s CEO- Joshua Schulman- has quoted “we are on a journey to transcend a great product into a lifestyle”. The essence of revamping is the brand strategy to bring a new range of branded scarves, perfumes, update existing line of handbags and eyewear. They plan to explore jewellery watches and swimwear. Jimmy Choo being a luxury marketer has a grandiose vision of rapid growth and expansion. It has “chops” to go up against well regarded lifestyle luxury brand-Gucci, D&G, Louis Vouitton and Chanel. But the room for yet another lifestyle brand is closed due to the flooding of brands in the market. Luxury brands grow because of consumer‟s clamour for more and not as a result of business plan and corporate strategy. They are carried forward by passion, talent and vision and not by a Today Jimmy Choo en- team of executives. The market analysts felt that the brands business plan had wrong timings and was compasses a complete implemented amidst “luxury drought”. Clearly, in this new brand expansion plan, Jimmy Choo execuluxury lifestyle, accessory tive team failed to do their homework and adjust to the new realities of luxury market place.

brand with women shoes, Jimmy Choo has also followed Tribal seduction marketing strategy. Under this, you reinforce the brand handbag, small leather when wearing. The handmade shoes and bags are created to die for. It makes a true shoe lover to know goods, sunglasses and and recognize – “Jimmy Choo”. eyewear.

Devoid of obvious labels and logos, the brand is reinforced as …….. “To create exclusive shoes and accessories that are both luxurious and practical for all occasions, while creating a look that is instantaneously recognized as JIMMY CHOO”.

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THE IBS TIMES

QUICK BITES- NEWS THAT CAN’T BE MISSED !

- LISA.T.SAMUEL

Big Shots… Vasudev Nayak, head of overseas operation cell at Wipro, appointed as the associate Vice president at Infosys‟ HR division. Yes Bank names Asit Oberoi as Sr. President and COO.

Company Talks… PepsiCo to make Kolkata food plant a Hub to develop new products. BHEL Bags Rs. 1395 cr contract from NMDC IBM extends IT outsourcing deal with Vodafone Essar for $1 billion. Wadia group sells spring unit to Japanese partner for Rs.181 cr. South Africa‟s insurer Sanlam to buy 26% stake in Shriram capital ie $266 million. Tommy Hilfiger buys out Murjani Brand‟s License. Axis Bank to stick to all-stock deal for buying Enam Securities business. Corporation Bank seeks Rs. 300 cr from government. Toyota, M&M to raise prices from next month. Balaji Amines eyes 50% revenue from exports in next 2-3 years

Economy Speaks… Terror strikes Delhi by the High Court blasts.11dead,79 injured. Euro Debt crises to hit inflows into emerging markets. Gold price changes, Asset Yields 30% in less than 2 months, churn allows wealthy to buy at lower rates again. Rupee drops to Rs. 46.30 as Dollar gains ground in Global Market. Food inflation falls to 9.55%. Corn, Soyabeans futures may gain on Heat Threat to yields. Corporate Indian Q1 overseas investment doubles to $5.5 billion. Premium rail travel to become more expensive, Railway minister-Dinesh Trivedi. Increasing Stack piles in Malaysia push palm oil prices down. Carbon markets essential to save fossil fuels: FICCI .

The Captains of the Ships.. CEO of Citigroup- Vikram Pandit Tata Motors Group CEO- Carl Peter Forster Yahoo Chief- Carol Bartz.

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THE IBS TIMES

FOCUS OF THE WEEK– INFRASTUCTURE BONDS

- AKSHAY AGRAWAL

As Martin Luther King, Jr. says, “The ultimate measure of a man is not where he stands in moments of comfort, but where he stands at times of challenge and controversy” , and Chambers braved the uncertain tornadoes efficiently at the most crucial of hours. Considering the fact that the Indian Stock Markets including both, the NSE-National Stock Exchange and the BSE-Bombay Stock Exchange have certainly taken a tremendous beating in the past few weeks (my own portfolio in deep red accounting losses of more than 30%). Adding to the woes, the double edged sword of the looming economic recession in the world‟s most powerful economy (United States of America) does not offer us any respite in the foreseeable future, thus in the process highlighting the need for an alternate financial instrument. One such instrument that caught my eye on the grounds of provocative & alluring advertising would be Infrastructure Bonds by organisations namely LIC, India Infrastructure Finance Company Limited (IIFCL),IDFC,ICICI Safety Bonds, & IDBI Flexi Bonds.

Primarily defined as the bonds issued by an organization to get funds that will be used for infrastructure in the Real Estate development, they further caught the eye.

Slabs (Rs)

Rat

1,80,000

Nil

1,80,000-5,00,000 10 5,00,000-8,00,000 20 8,00,001

Taking in to account the new tax slabs (as per Union Budget 2011.which are presented in the side columns.

Primarily defined as the bonds issued by an organization to get funds that will be used for infrastructure in the Real Estate development, they further caught the eye of the investor when the Union Budget extended income tax exemption on tax-saving infrastructure bonds up to a maximum of Rs 20,000, for one more year which will be over the R1 lakh deduction allowed under Section 80C, 80CCC and 80CCD Infrastructure bonds give the investor the stability of fixed returns and the safety of capital. Now, attending to the very vital question staring us in the face, are Infrastructure Bonds really beneficial for all categories (in accordance with the income tax slabs) of investors? Here‟s my take on it. Taking in to account the new tax slabs (as per Union Budget 2011 which are presented in the side columns. To understand the pros and cons of any tax-saving investment, we need to look at four major parameters: Actual tax-saving (let's take the highest saving possible); Returns from the investment (during the lock-in period at the least); Opportunity cost (what if the same money had been invested in some other investment?); and Effect of Inflation on the returns on investment (what would the worth of your investment be when it comes to redeem/cash it?). Subject to the constraints of reduction of taxable income only up to 20,000 and current inflation rate being 9% (approximately) we can tabulate the returns for lock-in periods of 3 years and 5 years respectively.

Rate of tax

Investments in Infrastructure Bonds

Slab

Taxsavings

30% 20% 10%

6,000 4,000 2,000

Required Returns to Counter Inflation Effect

Effective Returns 3 years 29,485 27,485 25,485

5 years 32,139 30,139 28,139

25,194

29,387

Tax paid in lieu of investing in Infrastructure Bonds Investment Returns from Market after Tax 3 years 5 years 21,292 28,159 24,334 32,182 27,376 36,204

The bottom-line As seen from the table above, it makes sense for people in the over Rs 8 lakh taxable income slab to use the infrastructure bonds as a tax-saving instrument. For the people in the Rs 5-8 lakh bracket, it would be advisable to invest in infrastructure bonds if the period of investment is 3 years, but not for five years and for those in the Rs 1.8-5 lakh bracket, it would be an absolute no-no to invest in Infrastructure Bonds for tax-saving purpose. Points to remember before investing in infrastructure bonds: Infrastructure Bonds do not offer any protection against high inflation since the rate of interest they offer is pre-determined. Against the pledging of the infrastructure Bonds with a bank, one can borrow money from banks. The amount depends on the market value of the bond and the credit quality of the instrument. Moreover, it should be noted that although Infrastructure Bonds are considered to be safe, there is no assurance of getting the full investment back. Now, equipped with the insight into Infrastructure Bonds, hope all of us would continue to take informed investment decisions in these volatile times. Happy Investing!

Brownian Movement- A simple continuous stochastic process that is widely used in physics and finance for modeling random behavior that evolves over time.

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THE IBS TIMES

NEWS @ IBS– ALL HAPPENINGS IN IBS HYDERABAD!

- AVLEEN SARNA

A very happening life in IBS gets even more happening during the festive season with exams around the corner and a whole lot of assignments to be submitted during the week. With the spirit of enthusiasm in spite of the busy schedules some of the clubs had come up with various events which provided knowledgeable and enriching experience to the participants. The week ended with the whole campus seen frolicking with the Onam celebrations. STOCKYARD: ‘THE GOLD BUBBLE TROUBLE’ The club organized a management discussion on the „Gold Bubble trouble‟ on 9 th September. Beginning from the history and the role of ETF‟s in creating a gold bubble a lot of golden facts and figures were provided during the discussion. Overall it was a good learning experience for the participants and they enjoyed the discussion as there were contradictory views regarding the existence of a gold bubble in the economy and whether it would burst or not. The masters of the ceremony Harsheet Ratra and Ankit Sharma were well versed with the topic and conducted a good event. Concluding the event each participant was given a chance to give their point of view regarding the gold bubble which was quite interesting and enriching for everyone thereby making the event a huge success. MACON: ‘CROSS KONNECTION The club conducted its first informal event „CROSS KONNECTION‟ on 10th September. It consisted of three rounds and the first round was a crossword game based on GK following which only few players were passed on to the next level. The next round was a treasure hunt in which 3 teams were formed of 8 members each with the winners moving ahead to the 3rd round. The final round was the most interesting as the teams were required to relate different industries and the winners were decided on the parameters like convincing power, creativity and feasibility. Overall it was a fun-filled event with a good learning experience for the participants of the game as they learned about the entrepreneurial abilities and how to apply them effectively .The winners of the game were Hari, Krishan and Gautam. CONVERGENCE: ‘AGHWA CEO KI TALASH’ The club organized a treasure hunt game „AGHWA CEO KI TALASH‟ wherein the participants have to search for their CEO who has been kidnapped at the start of the event. The game started with teams of 5 members each. Every team was required to choose a company (like HUL or Reliance etc.) and a CEO amongst themselves who is separated from the team at the start of the game. The participants were now required to perform various tasks, earn points and get the clues to finally reach to their CEO. Meanwhile the CEO also performed various tasks to earn points. At the end the team comprising of Sakshi, Kritika, Sandra and Rahul who were able to search their CEO with maximum points and minimum time won the game. The game provided a good learning experience for the participants as they were required to perform their tasks in teams and with coordination amongst each other to maximize the performance of their teams.

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THE IBS TIMES MARKET WATCH

- SWATI VERMA

The past week was again dominated by the Euro Debt crises and the growing concern about its magnitude to be similar to the 2008 economic downturn that had an intense global implication. Back home, the inflationary pressures still surmount the common man with headline inflation hovering around the 10 digit mark. While food inflation is close to double-digit mark, the rate of price rise of non-food primary items is over 11%. Reserve Bank is likely to raise its key policy rates again in its midquarterly review of the credit policy later in the week after the review of the inflation numbers for August that will be released on September 14. The market sentiment was on the weaker side this week with minor gains reported towards the end. Huge profit booking in banking stocks, sell-off in Reliance Industries and decline of rupee to one-year low triggered a wave of negative investor sentiment pulling Sensex down by about 300 points closing at 16866.97. Nifty on Friday broke below the crucial 5,100 barrier and closed 100 points lower at 5059.45. Coming to the sectoral indices , consumer durables and capital goods displayed a rather good performance booking a growth of 5% and 3.4% respectively. The IT and the FMCG indices performed disappointingly, the former owing its reason to the Obama government‟s employment creation plan.

The Movers & Shakers of the Week

SURGES

%Change

DOWNFALLS

%Change

GTL LTD

38.2

EXIDE INDUSTRIES

9.4

IVRCL LTD

25.7

TATA POWER

6.4

NCC LTD

20.7

ALLAHABAD BANK

5.3

The controversy regarding the Petroleum Ministry favoring Mukesh Ambani led, RIL in terms of allocation of excess block area (KG-D6 Block) which increased the cost of production from USD 2.4 billion to USD 8.8 billion, was an important discussion point in business circles this week in light of the tabling of the CAG reports and the CBI which is set to present its preliminary enquiry report. Starting September we shall see the electricity tariffs jumping in Delhi and the threat of further interest rate hikes on loans when the RBI reviews its monetary policy on September 16. Carl-Peter Forster, chief executive officer of Tata Motors Ltd. (TTM), owner of the Jaguar and Land Rover brands, has resigned after less than two years at the helm citing “unavoidable personal circumstances.” Forster‟s resignation is a “setback” as the company struggles to boost sales at home in India, while the debt crisis in Europe slows demand for Jaguar cars. India will be trimming its list of sensitive items by 20 per cent next month under the South Asian Free Trade Agreement. It would also be reducing the peak tariffs for Pakistan and Sri Lanka from by 3 % under the 2006-enforced seven-country pact.

Global Cues:

This week witnessed a large number of economic data from the Asian region, which showed continued negative impact on the outlook for the global economy. The economic recovery in Japan still moves in a narrow range as the yen's appreciation has negative results on the nation's growth rates, causing companies' earnings to decline as it reduced the competitiveness. Chinese inflation has cooled down in August after reaching the highest level in more than three years, as global economic growth is losing momentum. US president Barrack Obama's USD 447 billion jobs plan did not really impress investors to a great extent. With fears of political wrangling further delaying it, investors chose to exit the market. . The news of Germany planning to support certain banks if Greece defaulted on its debt, circulated before trade in Europe closed leading to Germany's DAX to drop to a 4% loss. The S&P 500 too logged its fifth loss in six sessions leaving it almost 16% below its 2011 high.

12500 17,400.00

S E N S E X

12300

17,200.00

12100

16,800.00 16,600.00

11900 D 11700 J

17,165.54

17,000.00

16,713.33

16,862.81 11,139.30

17,065.00 11,414.86

11,295.81

16,400.00

16,866.97 11500 I 11300 A 10,992.1311100 10900

16,200.00

10700

16,000.00

10500 5-Sep-11

6-Sep-11

7-Sep-11

8-Sep-11

9-Sep-11

1 2 3 4 5 6 7 8 9 10 11

THE IBS TIMES MARKET WATCH 5 SEPTEMBER 2011

6 SEPTEMBER 2011

7 SEPTEMBER 2011

8 SEPTEMBER 2011

9 SEPTEMBER 2011

Sensex

16,713.33

16,862.81

17,065.00

17,165.54

16,866.97

Nifty

5,017.20

5,064.30

5,124.65

5,153.25

5,059.45

DJIA

11,139.30

11,414.86

11,295.81

10,992.13

19,616.40

19,710.50

20,048.00

19,912.82

19,866.63

FTSE100

5102.58

5,156.84

5,318.59

5,340.38

5,214.65

Gold ($/oz.)

1907.60

1873.00

1832.30

1862.40

1858.60

Crude($/bl)

108.42

108.32

111.33

112.15

INR v/s USD

45.4060

45.8116

46.0962

46.1057

46.2092

INR v/s EURO

64.4634

64.7318

64.8578

64.7831

64.7945

HangSeng

Stochastic calculus approach- An informal name for derivatives pricing models that employ stochastic calculus with risk neutral valuation or other techniques based upon modeling future asset values.

BUSINESS JARGONS BY– ANKIT SHARMA

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 TEAMAKSHAY AGRAWAL, ANKIT SHARMA, AVINASH ROY, AVLEEN KAUR, GAURAV MALIK, KISLAY KUMAR, KRITIKA SETHI, LISA.T.SAMUEL, POOJA DALAL, SWATI VERMA.

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