The_IBS_Times_141st+issue by Stock Yard

ISSUE - 141

1st FEBRUARY [WEDESDAY]

SYNOPSIS

- SWATI VERMA

We now have one more giant gearing up for it‘s foray in the global stock market; the most popular social networking platform-Facebook. With its IPO in the offing , Facebook would now be a contender in the list of the top global companies ,recording some of the largest amounts of market capitalization. Talking more on the same is our writer through the Cover Story this week. The RBI is one body garnering everyone‘s attention right now; owing to it‘s policy decisions. Should tackling inflation be the concern or ensuring sustained economic growth in India-this is a dilemma faced by the Indian Central Bank .When both the extremities are exerting immense pressure, what do you think should be RBI‘s stance? Elucidating on the same is our writer this week through the Opinion Forum . Brand India is what we focus on this week. A lot has been said and done, India has truly proved it‘s mettle time and again. We may still be considered as the home of Software techies, the land of Bollywood crazy fans and a ‗little‘ corrupt, but we mean much more than that– a reason why most countries like China, US ,Japan and the likes are intimidated by us. There‘s got to be a reason...Presenting the India story is our writer through Brand Track this week. This week we bring you the success story of one of the most prized asset of our country, endowed with wise decision making capabilities and vast intellectual capital-Mr.Uday Kotak. The Managing Director and executive Vice President of Kotak Mahindra is the protagonist of the Focus this week wherein we try to bring out how this man made Kotak Bank a proud owner of an empire worth Rs.34,655 crore. Moreover we have our regular sections Fast Track, Quick Bites and Market Watch with lots of Jargons to add on to your knowledge. Hope it‘s an enriching read! Cheers! Swati Verma

SYNOPSIS COVER STORY

1 OPINION 2 BRAND TRACK

5 FOCUS 6 NEWS @ IBS

8 9

FAST-TRACK

3 QUICK BITES

7 MARKET

THE IBS TIMES

COVER STORY– THE BOOK WILL GO PUBLIC SOON

- ANKIT SHARMA

Facebook, the social networking giant with nearly 1 billion users is expected to file papers any day now to sell stock to the public. The timing stems partly from federal rules that would require it to begin disclosing its financial information in April because of its phenomenal growth. It may file papers for an initial public offering next week with the US Securities and Exchange Commission (SEC) that would value the social network at up to $100 billion, The Wall Street Journal reported on Friday. The IPO could help raise as much as $10 billion, making it one of the largest ever. The Menlo Park, California-based social networking giant is looking at a valuation of $75 billion to $100 billion and is close to picking Morgan Stanley as the lead underwriter for the stock offering. A market capitalization of $100 billion would put Facebook on a par with McDonald's ($101 billion), well ahead of Boeof $100 billion would put ing ($56 billion) but behind Apple ($415 billion) and the Facebook on a par with Internet giant, Google ($186 billion).

A market capitalization

McDonald's well ahead of Boeing

but behind With a deal size of $10 billion, Facebook would slip into

Apple and the Internet giant, Google.

sixth place on the list of largest US IPOs between AT&T Wireless Group ($10.62 billion) and Kraft Foods ($8.68 billion), according to Renaissance Capital. Beyond minting an estimated 1,000 new millionaires at the company, Facebook's initial public stock offering could provide a huge boost to Wall Street investment banks sorely in need of a hot stock to excite investors. The right to manage the IPO will also generate an estimated $250 million in fees. Facebook has become one of the world's best-known consumer brands and the Web's most popular hangout. And sometime this year it's expected to hit 1 billion users. That's half of all people on the Internet and 1 in 7 people on the planet.

Mark

Zuckerberg has

Mark Zuckerberg founded the company in his Harvard dorm room at age 19. Now 27, Zuckerberg's stake in Facebook will be worth an estimated $20 billion after the IPO — making him one of the world's richest men. The company's success lies in the hoard of information it holds about its users — valuable information that advertisers can use to target their products and services. Its growing business has escalated competition with rival tech giants Google and Apple Inc.

deflected IPO talk for Now Facebook is looking to build a war chest from the IPO to dominate the Web for decades. years, saying he is fo- Facebook chief executive Mark Zuckerberg has deflected IPO talk for years, saying he is focused on cused on building the building the company and not on going public. But in an interview recently he said that an IPO is ―the need of the hour‖. He further added, "A big part of being a technology company is getting the best engineers and designers and talented people around the world.‖And one of the ways that you can do that is public. But in an inter- you compensate people with equity or options," Zuckerberg said.

company and not on going view recently he said that

an IPO is “the need of "At some point we're going to make that equity worth something publicly and liquidly." Expectations are the hour”.

undoubtedly very high, as the giant plans to grow Mammoth in size.

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FAST-TRACK NEWS

THE IBS TIMES -SHILPI KALWANI

India to ask US, Pak to extradite 26/11 accused India is all set to ask the United States and Pakistan to extradite nine persons involved in the 26/11 Mumbai terror attack that include Pakistani-American terrorist David Headley, LeT founder Hafiz Saeed and two ISI officers. Government sources said ―the extradition requests to the US and Pakistan will be sent very soon‖ as all the nine persons were directly involved in the conspiracy as well as executing the India's worst terror strike.

Steve Jobs died with Bill Gates' letter by his bedside It has emerged from a report that just few months back before Steve jobs died, Microsoft co-founder Bill Gates wrote Steve Jobs a letter. That letter meant so much to the Apple's visionary co-founder that he kept it next to his bed while he was dying. Gates and Jobs had reportedly locked horns throughout their careers as Microsoft picked up the pace, with Apple initially lagging behind. In a biography published after his death in October, Jobs branded Gates an 'unimaginative' person who 'ripped off' other people's ideas'.

HRW blasts ISI over Pak journo's murder Asking Pakistani government to take on the military and intelligence services, Human Rights Watch on Monday blasted the ISI and called for redoubling of efforts to identify the killers of investigative reporter Saleem Shahzad."The Pakistani government should redouble efforts to find the killers of the journalist Saleem Shahzad, following the failure of the judicial inquiry commission to identify those responsible" the human rights group said in a statement.

British Navy can now intercept supersonic missiles Britain's Royal Navy is building a new defense system that would be able to intercept enemy missiles travelling at supersonic speeds. The Sea Ceptor missiles fired from navy warships can reach speeds of up to Mach 3 -- more than 3,200 km per hour -- and can protect an area of around 1,300 square km over land or sea, Sky News reported. The missiles will initially be used on the navy's Type 23 frigates.

Arab League bid to condemn Syria can go to UN vote A French official says that the Arab League text of a new Security Council resolution on Syria has support from at least 10 members, meaning it can go up for a vote. A text needs support from nine nations on the 15-member U.N. Security Council to go to a vote. The Arab League wants the world body to pass a resolution condemning Syria for systematic violence against the country's population. The official spoke on condition of anonymity in line with departmental rules.

Winter cold snap kills 36 in eastern Europe Heavy snow and a severe cold snap have killed at least 36 people across Eastern Europe and many areas were under emergency measures on Monday as schools closed down, roads became impassible and power supplies were cut off. As temperatures dropped to around minus 20 Celsius, authorities opened hundreds of emergency shelters across the region and urged people to be careful and stay indoors. Police went searching for homeless people to make sure they didn't freeze to death.

Garbatrage — An increase in price and trading volume in a particular sector of the economy that occurs as a result of a recent takeover, which initiates a change in sentiment toward the sector. Garbatrage is usually used to refer to firms that are not directly related to the takeover. Speculators feel that the initial takeover is a precursor to more takeovers within the sector.

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THE IBS TIMES Somalia: AU, Kenyan forces move to push rebels out

African Union and Kenyan troops aim to squeeze Somali rebels linked to al Qaeda by pursuing a coordinated war on two fronts, the UN chief's special envoy in Somalia said Monday. Under the plan, AU forces will push toward a Somali rebel stronghold outside the capital and Kenyan forces will focus on the Islamists' bastions in the south. Augustine Mahiga, who relocated to Mogadishu from Nairobi to become the most senior UN official in Somalia for 17 years, cautioned it was hard to predict if the complex strategy would defeat the rebels given their sophisticated weaponry and ability to melt into the population.

India won't scale down its petroleum imports from Iran: FM

India, which imports 12 percent of its oil from Iran, will not scale down its petroleum imports from Tehran despite US and European sanctions against the Islamic republic, Finance Minister Pranab Mukherjee has said. "It is not possible for India to take any decision to reduce the imports from Iran drastically, because among the countries which can provide the requirement of the emerging economies, Iran is an important country amongst them," Mukherjee told reporters here. Speaking at the end of a two-day visit aimed at wooing US investment, Mukherjee said: "Some other countries, Saudi Arabia, Nigeria, the other Gulf countries they also contribute but Iran contributes substantially." Government approves Rs 7,900 crore capital infusion in SBI Mumbai: Country's largest lender SBI Monday said the government has approved capital infusion of Rs 7,900 crore in the bank, a development that will help the lender to increase its business activities. The capital infusion will "increase the issued capital by SBI by way of preferential allotment of equity shares to the government to the extent of approximately Rs 7,900 crore including premium," SBI said in a filing with the BSE.

Starbucks to enter India, targets 50 outlets by year-end

Starbucks Corp will open its first coffee shops in India in August or September, a year later than originally planned, and aims to have 50 outlets by year-end through a tie-up with the Tata group, the country's biggest business house. The Seattle-based chain, known as much for the trendy urban lifestyle it represents as its costly cups of coffee, enters a market with a fast-growing middle class and plenty of competition in the small but fast-growing coffee segment.

Spanish economy shrinks in Q4, nearing recession

Spain's economy contracted by 0.3 percent during the fourth quarter, according to official figures released Monday, edging the country closer to a new recession as it deals with huge levels of unemployment and painful austerity cuts. The figure announced by the National Statistics Institute broke a run of seven quarters without economic contraction. The institute said GDP fell 0.3 percent during the quarter compared with a year earlier. For all of 2011, it increased 0.7 percent.

Losing eight matches in a row is an achievement, says Imran Khan Former Pakistan captain Imran Khan on Monday came down heavily on the Indian team stating that cash-rich IPL was the reason that has affected the technique and temperament of the players leading to disaster in England and Australia. Terming it as a wake-up call for Indian cricket, Imran blamed IPL and excessive focus on Twenty20 as the reason for the failure. "In 21 years of international cricket, I did not make as much money as a mediocre player does in IPL in one season," Imran said while addressing media during a promotional event at a eastern Indian city hotel. Veblen Good â&#x20AC;&#x201D;Goods that are perceived to be exclusive as long as prices remain high or increase. Veblen goods get their name from economist Thorstein Veblen, who was one of the first to look into and write about conspicuous consumption and the concept of seeking status through consumption. Veblen goods are often referred to as "status symbols".

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THE IBS TIMES

OPINION FORUMâ&#x20AC;&#x201C; BALANCING ACT BY RBI; WHAT BETTER COULD BE DONE?

Though RBI admits that the growth inflation balance has tilted in favor of growth, it has opted for a course of action which gives pre-eminence to inflation management.

In view of weak consumer and investor sentiments, what was needed from RBI was a positive signal which could have been better achieved through a small rate cut.

-AVLEEN KAUR

The Reserve Bank of India has managed a delicate balancing act in the third quarter review of monetary policy 2011-2012 unveiled on Tuesday. Although, markets were expecting a double bonanza from RBI i.e. a cut both in the cash reserve ratio (CRR) and repo rate but RBI has delivered a cut in the CRR by 0.50 percentage point to 5.5% which shall somewhat ease the tight liquidity conditions in the money market and refused to budge on the rate front which gives a clear signal that the apex bank is still not comfortable with the overall picture on inflation. Apart from policy announcements, RBI has lowered the GDP growth projections for 2011-12 from 7.6% in October to 7% now. With economic growth visibly slowing down, there were three major worrying factors on the inflation front. Firstly, the non-food manufactured product prices continue to be high while secondly, suppressed inflation in the form of artificially held down prices of petroleum products is quite significant. Finally, the depreciation in rupee value has also been feeding into core inflation and hence it was unrealistic to expect the RBI to embark now on the rate reduction cycle. It feared that tight liquidity conditions may disrupt credit flow and lower growth prospects, thus a reduction in the CRR will help banks boost their income. Though RBI admits that the growth inflation balance has tilted in favor of growth, it has opted for a course of action which gives pre-eminence to inflation management. Another viewpoint in this regard is that however, if one were to choose between the repo and the CRR in managing both growth and inflation at this juncture, the preferred tool should have been the former. This is because a rate cut impacts the real economy with significant time lag, but in the interim acts as a sentiment booster. In view of weak consumer and investor sentiments, what was needed from RBI was a positive signal which could have been better achieved through a small rate cut. Also the RBIâ&#x20AC;&#x2DC;s diagnosis of the factors inhibiting growth of Indian economy and inflation dynamics has been immaculate. As it is believed that in a slowing growth scenario, monetary policy is more effective if corrective action is taken at an early stage, as opposed to intervention later. So, the prospects for the rate reduction cycle depend on what the government does in the budget for 2012-13. The RBI is clear that the budget should come up with policy initiatives to induce investment and concrete measures for fiscal consolidation, if it is to start pegging rates down. There are several factors that could impact the economy adversely like the uncertainty in the euro-zone, the falling capital inflows in the context of a widening current account deficit. The lackluster investment climate as evidenced by the declining levels of non-food credit offtake means that there is enough for the RBI to worry about before it makes up its mind on turning around the interest rate cycle.

Keidanren-A Japanese abbreviation for the Japan Federation of Economic Organizations. The Keidanren was created in 1946 to address the issues and concerns of Japanese businesses in the postwar world. The organization consisted of over 1,000 Japanese businesses, over 50 of which were foreign firms.

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THE IBS TIMES

BRAND TRACK– BRAND INDIA

- POOJA DALAL

It‘s just twice in a year that a patriotic surge invades our minds, and once in a decade, our hearts too. So not wasting this moment of patriotic inspiration that engulfed me while I was witnessing the hoisting of our tricolour on the occasion of 63rd Republic day, I would like to make you see how we Indians are perceived by foreigners as a nation. Long ago we were known as ‗Sone ki chidiya‘ to the world. Back then we were a self sustaining economy with scholastic genius as well as material comforts. The glimmer of this distant paradise even attracted a few risk taking adventurers to set sail in the pursuit of this Golden land.

The present day India that thought still develop-

But soon enough the Britons came by and impoverished our dear land both economically and culturally. At this all time low, we came to be known as a land of snake charmers. To the world we were nothing but a land of impoverished royalty, hunger, disease and illiterates. Then came the awakening and the revolt. With the struggle for independence, we came to be known for some of the greatest people that walked the earth. And after six decades of struggle, we have a significant and

ing, is one of the most independent say in the world affairs, good trade relations with promising economies of the

most of the nations and an identity of our own.

world. But this may not This brings us to the present day India that thought still devel-

oping, is one of the most promising economies of the world. But this may not be the best thing that can befall ‗Brand India‘. Americans perceive us as job snatching techies who know all about softwares and computers. Australians see us as intruders. China finds a perfect dumping ground in its neighbour most other nations- a good trade partner. Investors though positive about returns and opportunities are worried about red tape and corruption that pervades the system.

befall „Brand India‟.

However the educated and inexpensive labour that is available here encourages them to take the bet. But again the recent national debate on the Lokpal bill hasn‘t helped but rather deepened the insecurity of our international patronage. It is being taken as badly as the change in Government some years ago. But at the same time, there is the brighter side of the spectrum too. National decisions have become comparatively quick and investor friendly. Such publicity is great for the economy and ‗Brand India‘.

Anyone who wants to sell their Ferraris and become monks has India on the top of their list. Looking for

Nirvana

Most of what people know of us is what media portrays of us. They either get apprehensive about life here after watching movies like slum dog millionaire or impressed by stories of the least expensive car made on earth. And as if there was less distortion, now comes Oprah Winfrey to India and suddenly we become the centre stage of stardom and fame. Most of tech savvy Americans still think India does not have internet connectivity. That may not be entirely their lack of information. It could have easily been a notion created by Hindi soap operas or a classic Bollywood movie that exaggerates the level of poverty and misery that exists in India!

anywhere But there is a common sentiment towards India that spans continents and nationalities. Anyone who

other than Himalayas is considered foolish.

wants to sell their Ferraris and become monks has India on the top of their list. Looking for Nirvana anywhere other than Himalayas is considered foolish. And you can eat and love anywhere else, but to pray you have to be in India. After all the gate to God‘s kingdom lies in Uttaranchal Pradesh (Haridwar)!

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THE IBS TIMES

QUICK BITES- NEWS THAT CAN’T BE MISSED !

- KRITIKA SETHI

Big Shots… Berlin wants Eurozone to take Athens‘ reins. US growth accelerates to 2.8%. India still a foreign investment hot spot: E&Y.

Company Talks… BoI to raise money through MTN as Europe situation improves. Blue Star to open exclusive large format stores. Beam plans national roll-out of Scotch-based RTD in India. Coal India to revise prices within the next two days to assuage industry fears. BSES introduces solar-powered water pumping system in India. MoEF panel recommends NTPC's Tallaipalli project for green nod. NMDC looking to acquire 2 properties in Australia. Ranbaxy settles row with USFDA to upgrade plants in India and US. Dr Reddy's Labs in trouble with US health regulator again. STAR CJ Alive eyes Rs 5,000-cr revenue in five years. High Ground buys 15% stake in UK studio Rain Post.

Economy Speaks… Government likely to lower exports numbers for FY11 following a $9.7bn overestimation of shipments. Budget 2012: Finance ministry plans new law for uniform stamp rate for all deals. Food, fuel inflation numbers to be released monthly to avoid public gaze. Forex reserves rise to $293.257 billion: RBI India raises Rs 130 billion via debt sale: RBI India, EU say making good progress on trade pact. Nepalese and Indian industry bullish about greater economic cooperation. World Economic Forum Davos 2012: UK focused on trade ties with India, says David Cameron. Aerospace, defence export to clock 2 billion dollar growth: ASSOCHAM. Government to rope in person from India Inc for NHAI‘s CEO post. Planning for mass rapid transport system in metros to start now as it spurs growth :DMRC. Andhra Pradesh eyes Rs 50,000 crore investment in infrastructure sector in next 2 years. 30 more airports will be needed in next 5 yrs: Planning Commission.

The Captains of the Ships… Xander Group founder- Siddharth Yog Facebook founder – Mark Zukerberg RBS Chairman – Sir Philip Hampton

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THE IBS TIMES

FOCUS OF THE WEEK–UDAY KOTAK:FACE OF FINANCIAL CHANGE IN INDIA

-ATREYEE SENGUPTA

After a globetrotting experience in the Internet, America and Europe greeted me with loads of financial success stories, China being a state controlled economy had not much in store and the rest of Asia was highlighted by dominant international players. But India pleasantly surprised me by indeed offering me a parallel with the likes of America and Europe hence without much delay let me shift your focus to this home-grown entity. Uday Kotak is a well-educated (alumni of JBIMS, Mumbai) well read individual with a strong hold in numbers and gets an adrenaline rush in the name of Cricket. Coming out of nowhere not only he made a big financial fortune but also gave birth to a strong brand. Today he holds the title of India‘s first billionaire banker and currently the Managing Director and executive Vice President of Kotak Mahindra.

Kotak Mahindra Bank boasts a market capitalization of about Rs.34,655 crore. The surprise quotient is that in a highly regulated sector like banking he has been able to maximize wealth in such a short period of time. Well no doubt Anand Mahindra an early investor of Kotak recognized his specialty and gave in to his ideas. It was then that Mr. Uday suggested putting their names in the business as inspired from the likes of J.P. Morgan or the Goldman Sachs. Kotak was never conditioned to become an aggressive risk taker. A reasonable percentage of caution and planning helped him to cope with the uninvited economic downturns. In 1997 when foreign players had started mushrooming in India, Kotak made a strange decision of squeezing their lending by 50% which also proved to be a right choice. Consequently the finance sector faced the biggest ever crisis and Kotak instead of focusing on return on equity concentrated only on equity as a result of which he could keep the net worth intact. Well this was just one of the financial stunts played by him. Straight out of a business school Kotak was making lakhs per month by playing a mediator between the old cash rich foreign banks and the newer European banks on the principles of bill discounting, something that he had replicated when he was with NELCO, Tata Electronics Company in his early years. The company was in need of working capital.

He lets the journalists play their own show without making his presence felt at all because that‟s what he believes is the success story of any media.

At that time banks were making a lot of money by giving depositors a 6% return and charging borrowers at 16.5%. At this juncture he hired the support of close associates and relatives by promising them of higher return and assured NELCO of lower interest rates. Needless to say it worked. At present his valuable insight also pulls the much needed attention of the Government too where he makes a point that India‘s huge amount of productive savings should not be moved into unproductive avenues such as gold. He feels that the regulatory bodies need to take strict action in order to de-incentivize gold and promote financial savings. His cautious brain also highlights that if the Euro zone crisis gets out of hand heavy liquidity pressures might arise in India way beyond it is anticipated because of the high level of disguised interconnectedness between the two countries. Come out of Finance and you see Uday Kotak as a strong press baron too as the owner of Business Standard which he had bought from the Sarkars on the eve of economic downturn and heavy losses. He lets the journalists play their own show without making his presence felt at all because that‘s what he believes is the success story of any media. His powerful vision and strong ethical buttress assures that there is fair play around him because let not Uday Kotak be merely known for just a strong brand but an institution that promises high performance and diligent workforce.

Calpers-The California Public Employees' Retirement System (CalPERS), an organization that provides numerous benefits to its more than 1.6 million members, including health insurance, long-term care insurance, death benefits, mortgage program, and distribution of pension and retirement-related financial benefits.

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THE IBS TIMES

NEWS @ IBS– ALL HAPPENINGS IN IBS HYDERABAD!

-RASHMI KUMARI

TRISHNA’12- EMBRACE YOUR THIRST Trishna 2012 –the annual national level cultural and management fest of IBS Hyderabad finally ended after a three day extravaganza that covered a total of 24 events organized by various clubs from all genres of management education coupled with cultural competitions that aim at holistic development. In addition there were renowned artist and teams from other institutions that enhanced the experience. Some of the major events related to management education which attracted a lot of attention during Trishna was‘CFO‘12-organised by stockyard, Best Manager by Megistanos, Cross-roads and B-Plan by Macon event related to strategy making, Emizone by money matters club, Admire‘s Squeeze-n-Sell-game related to marketing and strategy‘. Besides this there were some events which showed cultural face of India, a glimpse of those events- ‗Fashion show, Nach-Le Ve- A Dance comptetion, suro ka sangam‘. There are many more unending lists of various events which were really entertaining such as ―Loot n Scoot by club Infinity, Flabbers Day out by Maverik, Rock n rolla- A team building Activity by ‗Prakriti‘ The entire event was very informative and full of excitement. During all these three days all the clubs were judged on various spheres of management like marketing, time management etc. participating institutions were also judged according to their performance in the entire event and on the basis of that winners were decided. A glimpse of winners of Trishna 2012:Overall winners of trishna 2012 were: Christ University, Bangalore. Runners-up: IBS Bangalore. Intra-IBS prizes: Best Managed Club (Co-curricular): Macon; Best Managed Club (Extra-curricular): Infinity Studios; Best Marketed Event in Trishna 2012: Rock-n-Rolla, organized by Prakriti. SAMAVESH – CULTURAL FACE OF IBS HYDERABAD Club Samavesh on the eve of 63 rd republic day of India celebrated the day by organizing a cultural event. Event started with a flag hoisting ceremony which was followed by a skit which very beautifully portrayed how India is united even after so many attacks from the outside world. The play said like this no matter what happens, we are united and with love we'll make our enemies also a part of it. After that some patriotic song was sung by the IBS students itself. It was enjoyed by everyone. At the end of the session sweets were distributed. DR. C. RANGARAJAN -VISIT TO THE CAMPUS Dr. C. Rangarajan honorable chairman, economic advisory council to the Prime Minister New Delhi visited the campus to attend the second foundation day lecture. Mr. Rangarajan through the speech addressed on ‗globalization‘. INFINITY STUDIOS Infinity studios –the theatre club of IBS Hyderabad showcased the movie ‗rang de basanti‘- A thought-provoking, soul-stirring wake up call to the youth of India on special occasion of the republic day. A glorious tapestry with layers upon layers of the moments, and decisions that make the lives of beautifully defined characters. Engrossing entertainment meets taut social comment with perfect timing in Rang De Basanti. The movie was enjoyed by the crowd a lot.

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THE IBS TIMES MARKET WATCH

- SWATI VERMA

The 3% rise in the Indian stock market can be attributed to the 0.50bp cut in the CRR (Cash Reserve Ratio) announced by the RBI, on account of the high inflation persistent in the country over the months, coming to an arrest. Indian markets ended the week with gains for the fourth consecutive time. The investors are hopeful that this rate cut would help revive the Indian economy. Also, encouraging results by a few corporates despite the gloomy economic scenario helped the markets register gains for the fourth straight week. The market gained around 12% in last four weeks on account of fresh buying by FIIâ&#x20AC;&#x2DC;s due to improved global economic scenario. The Nifty ended up 46.4 points today, to close at 5204.7. The Sensex ended up 156.8 points, at 17,233.98. The breadth of the market was positive in todayâ&#x20AC;&#x2DC;s trade and the total volumes were at Rs 86491 crore. India's food inflation declined slightly to -1.03 per cent for the week ended January 14 as compared to -0.42 per cent for the previous week, staying in negative territory for the fourth straight week, as prices of essential items such as wheat and vegetables maintained a downtrend. The key rate reduction is a new policy stance adopted by the Government to promote growth, shifting away from its focus on controlling inflation. The implications of the same are yet to be seen in the way the corporate sector responds to the rate cut. The Movers & Shakers of the Week

SURGES

%Change 25.2

KOUTONS RETAIL

DOWNFALLS

%Change

IVRCL LTD

23.6

VIDEOCON INDUSTRIES

7.3

NCC LTD

23.5

ALSTOM PROJECTS

6.8

SUZLON ENERGY

15.1

National Thermal Power Corporation (NTPC), India's largest power producer is planning to expand in a big way. It is thinking of establishing a major power project of 4,000 megawatt at Pudimadaka (close to Vishakhapatnam) in Andhra Pradesh. Steel Authority of India (SAIL) is likely to spend Rs 145 billion towards capital expenditure in the next financial year. This is 15% more from the amount set aside for this in this financial year. SAIL is expecting demand for steel to grow 7% in this fiscal. Apart from this, most companies declared their quarter ended December 2011 earnings with companies like AXIS Bank, GAIL and Lupin Pharmaceuticals recording a growth of 20%, 13% and 30% respectively. Maruti Suzuki performed abysmally with sales down by 17.4%. This was largely due to a slowing demand in the small car segment. Higher interest and rising fuel costs too did not help the auto maker. Making net profits fall by 63.6% . Global Cues: Amongst the other world markets, all ended the week in the green except for France (down by 0.1%) and US (down by 0.5%). In Europe, no deal emerged between Greece and its private creditors, only increasing the skittishness of investors. Both EU Commissioner and the Greek government insisted a deal is very close; however this is the same line that has been reiterated all week long.

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THE IBS TIMES MARKET WATCH 23 JANUARY 2012

24 JANUARY 2012

25 JANUARY 2012

26 JANUARY 2012

27 JANUARY 2012

Sensex

16,751.73

16,995.77

17,077.18

17,233.98

Nifty

5,046.25

5,127.35

5,158.30

5,204.70

DJIA

12,708.82

12,675.75

12,756.96

12,734.63

12,660.46

20,439.14

20,501.67

FTSE100

5,782.56

5,751.90

5,723.00

5,795.20

5,733.45

Gold ($/oz.)

1676.30

1666.40

1710.00

1720.50

1737.30

Crude($/bl)

111.78

111.49

110.70

111.26

INR v/s USD

50.48

50.74

50.69

50.68

50.25

INR v/s EURO

65.22

65.70

65.94

65.96

HangSeng

- FIGURES NOT AVAILABLE

Keiretsu- A Japanese term describing a loose conglomeration of firms sharing one or more common denominators. The companies don't necessarily need to own equity in each other. This term has been in the news every now and then, especially when they talk about Silicon Valley. One example would be the close relationship between AOL and Sun Micro. BUSINESS JARGONS BY– SHILPI KALWANI

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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 TEAMANKIT SHARMA,ATREYEE SENGUPTA,AVLEEN KAUR SARNA,KRITIKA SETHI,POOJA DALAL, RASHMI KUMARI, SHILPI KALWANI, SWATI VERMA.

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