ISSUE - 102 23rd DECEMBER [THURSDAY]

EDITOR’S DESK - SUPRIYA MAMGAIN

Recently one of my friends who is a bike lover was sitting with a dejected look on his face, when asked about the cause that made him look so pensive, he told me about the great break-up which happened between Hero & Honda. The news of one of the most successful joint ventures now breaking up has caught the attention of not only the avid bike riders but rather every Indian who has heard of the line ―Hero Honda Desh ki Dhad-kan—Dhak Dhak‖. What and how it happened is what our Cover Story brings to you this time, followed by the weekly happenings covered in the Fast Track section.

One of the things that bothers me still, is the pitiful condition of women in India. Even in the 21st century, we continue to come across stories of society‘s cruelty towards women. But Indian women have always pushed these society norms to becoming achievers in various fields. I remember how happy I was to see a group of girls in a rural area of Gangtok, clad in school uniforms, talking and carrying the weight of their bags, while walking to school. In the Opinion section, our writer expresses her views on the spirit of Indian women. I am sure this article will bring to light the sad conditions women are put through in our society and also trigger you to acknowledge the achievements of Indian women.

Moving on, both men and women have been known to have different interests supported by the book - ―Men are from Mars and Women are from Venus‖, but their interest in shopping was united by a popular brand known as BENETTON. For those who don‘t, this is a brand which not only brought both men and women out to shop but also brought about social messages through its radical advertisements. To know more about the brand, you will have to flip/click pages to read Brand Tack which covers this brand‘s sojourn so far.

With all of this and much more, the 102nd issue brings to you a mix of articles which will evoke different feelings and emotions, apart from sharing a plethora of knowledge with you.

Have a great time reading!!

Cheers, Supriya Mamgain

EDITOR 1 OPINION 5 FOCUS 8

COVER 2 BRAND 6 NEWS @ IBS 9

FAST-TRACK 3 QUICK BITES 7 MARKET 10

COVER STORY– HERO HONDA: END OF SAGA -RAJAT MONGA This week‘s Cover Story is about a divorce. What is wrong with me is what you must

be thinking. But the divorce I am talking about is between two companies who created

one of the most successful Joint Venture this country has ever and perhaps will see. I

think you got it already; I am talking about the split of Hero Honda-the largest manu-

facturer of two wheelers in the world. The partners –Brijmohan Lal lead Hero and

Japanese auto giant Honda have decided to go separate ways after 26 years of togeth-

erness.

The partnership started way back in 1983 with both companies holding 26% share in

the new company and what a journey it has been. Hero Honda sold 1.3 million vehi-

cles last year and Splendor which was launched in 1994 has gone on to become one of

the world‘s largest selling vehicles. The companies signed various technical pacts dur-

ing those years with the last one being signed in 2004 for 10 years which will not be

renewed now, effectively ending the collaboration.

The industry experts were not surprised with the news as they saw it coming. The

bickering between two partners has been going on since 2005 when Honda Motorcycle

and Scooter India (HMSI) launched its first bike Unicorn in India. Honda gave out a

clear signal about its plans for India when it launched new bikes in 100-150cc segment

in 2008 putting them in direct competition of Hero Honda. The signals were only get-

ting stronger over the past few months before the deal was finalized. Now about the

deal. The Munjal‘s, as per sources, will be buying the 26% stake of Honda in the ven-

ture valued at about $1.8 billion for $1 billion through a term loan initially, after which

the stake will be placed with private equity firms. Honda in return for the discount gets

a royalty of about 8% up from 5% for the remaining period of the technical pact. The

Hero group gets access to Honda technology and models for the same duration after

which it will be on its own.

With the market leader splitting what does it mean for the stakeholders. Honda will

now switch gears and move aggressively to get a share of India‘s fast growing motor-

cycle market. It is good news for consumers as a new entrant will result in fierce com-

petition and hopefully price reductions. They can also look forward to some great

bikes from the Honda stable. For competitors, mainly Bajaj, it will be a golden oppor-

tunity to increase its market share in the 100-150cc segment which is dominated by

Splendor and Passion. The biggest challenge will be faced by the Hero Group which

has until now relied on the Honda technology for its motorcycles. The company will

have to build world class R&D capabilities very quickly if it wants to survive in the

market. The company will also be left with a huge gap in its brand equity as it is not

known for its motorcycles. Hence, it will be testing times for the company.

Hero Honda and Maruti Suzuki- the two most successful JVs in India marked an era

when Indian companies looked for foreign collaborations to get access to world class

technology and now with Suzuki taking over Maruti and Hero‘s buyout marks the end

of that era as the Indian companies become much more confident of their capabilities.

THE IBS TIMES

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Hero Honda and

Maruti Suzuki- the

two most successful

JVs in India marked

an era when Indian

companies looked for

foreign collaborations

to get access to world

-class technology.

The Munjal’s, as per

sources, will be buying

the 26% stake of

Honda in the venture.

FAST-TRACK NEWS -SUPRIYA MAMGAIN A blessing in disguise The SEBI crackdown on promoters which caused most of mid-cap stocks to succumb to pressure to sell last week, maybe a blessing in disguise for the investors. As those investors, who wanted to own some of the fundamentally-sound mid cap shares, but were hesitant to do so earlier due to high valua-tions, could own some of these shares now. Forex Reserves dip to $971 million Forex reserves on the week ended December 10, dipped to $971 million, because of revaluation of non-dollar assets through the dollar. The data given by the RBI shows that banks have been withdraw-ing the money they have invested in mutual funds to generate cash to meet loan demand. The SDR and reserves with IMF rose to $6 million and $2 million respectively during the week. Next fiscal NTPC may float another FPO NTPC which currently generates over 32,000 mw of electricity per annum has plans to ramp up capac-ity to 75,000 mw by 2017. NTPC which has already raised Rs.8,000 cr through its FPO in February this year is expected to float Rs.1.5 lakh international competitive bidding tender to source power equipment. US Government okays $858 bn tax cut plan The US Congress passed an $858 billion bill extending for two years all Bush-era tax cuts, which sent the measure to President Obama for his signatures. The tax cut plan extends through 2012 all Bush-era tax reductions on income, capital gains and dividends. The bill was supported by the majority of both the parties i.e. the Republicans and the Democrats. There were 139 Democrats and 138 Republicans, who voted in favor whereas 112 Democrats and 36 Republicans voted against it. CBI raids Raja’s men The CBI conducted raids at 34 places in Delhi and Tamil Nadu, to continue with its efforts to get to the bottom of the scandal on the 2G spectrum. The raids that were carried out, were mainly symbolic, to send out a political message that CBI was taking its job to unearth the scam seriously. Inflation slowest in 11 months The Wholesale Price Index (WPI) rose 7.48% in November from a year ago, a drop from 8.58% in-crease in October. The WPI gains in November slowed to lowest in 11 months, two days before the RBI‘s mid quarter monetary policy review. Most of the usually optimistic opinion makers remain muted, as the economists are worried that a global commodities rally could spoil India‘s party. TCS wins a $100 m core banking tech deal from Deutsche Bank India‘s top IT exporter TCS, won a multi million dollar deal from Deutsche Bank for its core banking software. TCS will implement TCS Bancs- its core banking software in 30 countries where Deutsche Bank has operations and also other places where the bank plans to launch operations. The Abu Dhabi branch has already migrated to the TCS system, replacing the existing system in the bank. TCS is also looking for similar contracts some of which are at a bid stage. Etios output to start in December Etios, Toyota‘s entry level sedan will begin its manufacturing from 3rd December, from its manufac-turing facility located in Bangalore. The company is present in India through a joint venture with the Kirloskar group- Toyota Kirloskar Motor (TKM). The company has invested close to Rs.3,200 cr. in the second manufacturing facility and the plant has production capacity of 80,000 units p.a.

EOQ: The acronym for Economic Order Quantity, a term that relates to Inventory Management. It is the optimum

size of order which minimizes the cost of purchasing and holding inventories.

THE IBS TIMES

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China and India to increase coal imports

Both China and India may increase the coal imports by 78% to 337 million tones next year. Asia‘s two

fastest growing economies have more demand for fuel as economic expansion raises more demand for

electricity. India faces a shortfall of 104 million tones in 12 months ending March 2012; therefore

there is an increase in demand to cover this shortfall. China‘s GDP will next year expand by 9.6% and

India by 8.4%, according to the IMF forecasts, therefore both nations would have to fulfill their ex-

panding coal capacity.

Nissan and Mitsubishi plan a mini car venture

Both Nissan and Mitsubishi plan to set up a 50-50 joint company next year to develop mini cars. The

partnership will give the manufacturers greater economies of scale, also providing them access to en-

ter market segments with less investment. Mitsubishi has a partnership with PSA Peugeot Citroen,

while Nissan and Renault share projects with Daimler, the world‘s second biggest luxury car maker.

World’s five biggest airlines hail from Asia and Latin America

According to the International Air Transport Association (IATA) the world‘s five biggest airlines hail

from Asia and Latin America, this highlights the shift of the industry from US and Europe. Air China

is twice the size of either Delta in US or Germany‘s Lufthansa. The weak economic conditions in

Europe and low margins are acting as a drag on the profits of the airlines in the continent. The shift is

an attribute of the rapidly growing middle class in Asia and growing demand for air links between the

continent‘s 15 mega-cities which promise strong industry profits margins.

Reckitt to acquire Paras

The British consumer goods firm Reckitt Benckiser Group, will buy the Ahmadabad-based Paras

Pharmaceuticals for Rs.3,260 cr. This is a move which shocked the rival bidder Emami, as they are

believed to have offered a higher bidding price. This buyout will add more than Rs.400 crore to

Reckitt‘s revenues and 10 brands including Moov, Dermicool and Set Wet to its portfolio.

Dravid feels India needs to believe

Rahul Dravid expressed that the Indian team needed to believe that they could win the test, if there

were actually any sort of chance in doing so. He expressed his opinion about the conditions, while

speaking to interviewers, as being a part of the game pressing on the fact that the team need not look

for excuses.

Intern drawn against Bayern

The defending champion Intern Milan will face Bayern Munich, as the game on Friday, when the first

knockout round was played came to a draw. They face each other after last season‘s champions league

final, Intern beat Bayern 2-0 in May, when they became the European champions for the first time

since 1965. Both the teams have been disappointing their fans as so far they have not replicated last

season‘s good form.

Odd-lot: A lot of shares that is different from a round (marketable) lot. Transactions at the Stock exchanges are

done in lots mostly of 100 or 50 shares and multiples thereof. These conventional trading units are called 'Round Lots‘;

any lot that is different from the prescribed trading unit is deemed an odd-lot. At some stock exchanges, odd-lot trading

takes place on Saturdays.

THE IBS TIMES

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OPINION FORUM– INDIAN WOMAN: THE WOMAN OF SPIRIT -TANIYA BANERJEE

Let us take a look at the quintessential Indian household about 35 years back. It is the 1980‘s

and the family structure is joint. The women take care of the household and the men go out

to earn their daily livings. At the most, the highest education that a girl child receives is

graduation that too under exceptional circumstances and having a career is not a priority let

alone being a sports person. Comes the new millennium and we find a sudden surge in the

number of women taking up life outside the care and maintenance of family seriously. There

is surge in the number of women taking up higher education; about 23-24% of the women in

India are now taking up GMAT exams every year. Moreover, there has been a surge in

women taking up unconventional career paths ranging from being a cricketer to a fire-

woman. Indian women have truly come of age and proved it to their global counterparts that

they are no less than them in any aspect.

One of the most iconic Indian women to have achieved huge success and a distinguished

place for herself in the society is Saina Nehwal. This gutsy 20 year old has become an inspi-

ration to one and all. She has reinforced the fact that if determination, support and hard work

is used then any one can reach the heights of success that she has achieved. Touted to be the

next big thing in the sports world, Saina Nehwal is the only Indian to have won three interna-

tional events in a row since Prakash Padukone in the sport of badminton. She also won Com-

monwealth Games women‘s singles event this October. But it is her recent victory at the

Hong Kong Super Series that is making waves given the fact that her competitor was the for-

midable Asian Games gold medallist Shixian Wang of China. All this coming from a girl

whose birth itself was marked by sadness as her grandmother wanted a boy for a grand child

seems inspiring. Especially when breaking social stereotypes is very difficult in a country

like India where we still believe that a girl child is economically burdensome on the family.

And we cannot entirely blame the parents for not wanting to have a daughter. It is the vicious

cycle of various phenomena like dowry, etc. which forces them to think so. An estimate by

UNICEF reveals that about 5,000 odd Indian women are killed every year in dowry related

incidents. Not just dowry we have a volley of other atrocities in our society to deal with. Fe-

male infanticide and sex – determined abortions have led to the gender ratio of India to have

become acutely skewed. We have about 927 females per 1,000 males in India currently.

Moreover in Jaipur about 3,500 sex determined abortions are carried out every year.

But in spite of these societal injustices, Indian women have carved a niche for themselves

and have got their due recognition throughout the world. From Indira Nooyi who was named

#1 on Fortune‘s list of the ‗50 most powerful women‘ to Sania Mirza ; we have them all.

With changing times the perceptions of people too have begun to change but a lot needs to

be done and achieved to bring about social upliftment before we can happily rest on our lau-

rels.

Another point that the Indian women has been able to drive forth is that no matter what

atrocities are levied against them, the indomitable spirit of the Indian women cannot be sub-

dued. As the diamond brand Asmi has rightly described us as ‗The Woman of Spirit‘, let us

keep the spirit alive because it is bound to take us places.

Crowding out: The possible tendency for government spending on goods and services to put upward pressure on

interest rates, thereby discouraging private investment spending.

THE IBS TIMES

An estimate by UNI-

CEF reveals that about

5,000 odd Indian

women are killed every

year in dowry related

incidents.

“We must remember that

unless and until women

are given their rightful

place, no society or

country can progress.”

Prime Minister IK

Gujral

On Occasion of India

50

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BRAND TRACK—BENETTON:THE UNITED COLORS -SANDEEP ASRANI

When we mention the word colors in the fashion world the first thing that comes to our

mind is the brand ―United Colors of Benetton‖. Benetton has associated itself with con-

sumers with bold and bright colors and not to mention its controversial billboards and

very distinct advertisements in the industry. By definition too, Benetton means colors.

Benetton is a global clothing brand, based in Italy. It was founded by Luciano, Giuliana

and Carlo in 1965. The name comes from four members of the Benetton family, who

founded the company. Since its inception Luciano Benetton has transformed the small

wool sweater firm into what is a global phenomenon today. Its core business is clothing

with a strong Italian character whose style and quality is seen in its brands. Today, the

group is present in 120 countries and has a retail network of over 5000 stores around the

world. It is known for its colorful collections and especially its winter wear. The Benet-

ton Group works in the business of fashion with five different brands: United Colors of

Benetton (UCB), Undercolors of Benetton, Sisley, Killer Loop and Playlife. Their prod-

ucts include womenswear, menswear, childrenswear and underwear and they have ex-

panded into toiletries, perfumes, and items for the home such as kitchen accessories and

baby products.

Benetton has a unique way of advertising their brand; it is among institutional, social

and commercial publicity, undefined. Unlike all the other brands of clothing their cam-

paigns are not about their clothes but social issues like racism, poverty, AIDS or pollu-

tion. It was in 1984, Benetton Group hired photographer Oliviero Toscani as their crea-

tive director who designed a photo shoot that included models and children from differ-

ent racial backgrounds and called it ―All Colors of the world‖. This was then altered to

―United Colors of Benetton‖. This concept was so strong that the company adopted it as

its slogan and then later on became the first slogan in history to become a Commercial

Trademark.

Benetton uses shocking images as a technique to raise public awareness of social issues.

Benetton ads often ignite criticism and stir up industry debate over their purpose. These

ads let people to think about world‘s problem in the process too. Critics call this genre

of ads as ―Shock Advertising‖ and claim that it is to elicit attention for a brand name by

jolting the consumers. Some argue that the real goal of the ads is to generate publicity.

This may be a creative strategy to appeal to social consciousness or even an effort to

break through the advertisement clutter. What ever it is, it‘s sure working for Benetton.

But today the key word is VALUE because the brand‘s identity has become secondary.

Benetton is an already established brand and customers are used to their advertisement

campaigns. One can tell it‘s a Benetton ad without even seeing the green logo.

Benetton was founded 40 years back and ever since the world has been changing drasti-

cally. Consumers are more aware of global trends today from what they were then. To-

day, there is a need for more specialized products. It is necessary that Benetton gets

down to smart segmenting of its audience and ensure that it provides them with specific

solutions to make the brand more meaningful to them.

THE IBS TIMES

The Benetton Group

works in the business of

fashion with five dif-

ferent brands: United

Colors of Benetton

(UCB), Undercolors of

Benetton, Sisley, Kil-

ler Loop and Playlife.

Benetton is a global

clothing brand, based

in Italy. It was

founded by Luciano,

Giuliana and Carlo in

1965. The name comes

from four members of

the Benetton family,

who founded the com-

pany.

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QUICK BITES- NEWS THAT CAN’T BE MISSED ! - SHILPA MALHOTRA

Big Shots…

BMW regains the top slot in Jan-Nov period outpacing Mercedes Benz in the Indian

luxury car segment.

Larry King, the 77 year old broadcasting icon signed off CNN after staying 25 years on

air.

India and China target $100 billion trade by 2015.

Company Talks…

Nokia files patent suit against Apple accusing it of using 13 patents, including a basic

touch screen maneuver without permission.

Seimens to sell IT Solutions and services business to Atos Origin for 850 million euros.

RCom to raise $1.9 billion from China Bank.

Bajaj Hindusthan to invest Rs.22,500 crore in power sector.

General Electrics to acquire UK firm Wellstream for $1.3 billion.

Tata Motors is all set to launch new version of Nano with additional features in 2011.

Ventureast, a venture capital and private equity firm to launch $200 million fund.

Corporation Bank introduces Priority banking services at its branch in Bangalore. Economy Speaks…

India signs gas pipeline deal with Turkmenistan, Afghanistan and Pakistan.

Food inflation soars at 9.46 per cent.

PM Economic Panel has projected India‘s economic growth at 9% for this fiscal.

17.45 million new GSM users added taking the subscriber base to 526.18 million.

Tea prices likely to soar Rs.5-10 a kg next season.

RBI cuts SLR for commercial banks to 24% from 25% earlier.

The Government panel for farm production recommends cheaper farm loans at 4% and

a minimum support price at 50% over the actual cost of cultivation.

18% hike in the global crude oil prices build up a strong pressure on the domestic die-

sel prices to settle at Rs. 2.95 per lt.

The Captains of the Ships..

Founder of WikiLeaks – Julian Assagne

Chief Economic Advisor- Dr. Kaushik Basu

CMD of Edelweiss Capital - Rashesh Shah

Managing Director of HDFC - Renu Sud Karnad

CEO of IL&FS Investment Managers –Dr. Archana Hingorani

President of European Commission - Jose Manuel Barroso

THE IBS TIMES

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FOCUS OF THE WEEK– THE MAN WHO TAMED THE BEAR -ADHIRAJ SOOD

Absolute advantage: A country has an absolute advantage if its output per unit of input of all goods and services

produced is higher than that of another country.

THE IBS TIMES

Stephen.A.Schwarzman is the man who at 31 became the MD of Lehman Brothers and changed the

outlook of the then greatest investment banking firm. It was he who compared President Barak

Obama’s plan to raise carried interest taxes, to Hitler’s invasion of Poland of 1939. He was born

on February 14, 1947, in Philadelphia and grew up in nearby Abington, Pennsylvania, where he

attended public schools. He attended Yale University during the same period as George W. Bush.

One year behind him, he graduated in 1969, and he was in the same society called ‗Skulls and

Bones‘ – Yale‘s secret society.

At Yale, he studied Social sciences: psychology, sociology and anthropology, but not economics.

As graduation approached, he was still uncertain about what he wanted to do in life. During that

same Home-coming weekend, he met a Yale alumnus, Bill Donaldson, and joined his investment

banking firm called Donaldson, Lufkin and Jenrettee, and that‘s where it all started.

Within six months of working with the firm, he developed a taste for corporate finance. Thus, after

fulfilling his military service obligation, he joined Harvard Business School (HBS) and graduated

in 1972. He joined Lehman Brothers after passing out of HBS, where armed with a formidable ex-

pertise in mergers and acquisitions, he made a favourable impression on the then Chairman Peter G.

Peterson, a former Commerce Secretary.

Schwarzman left Lehman Brothers to start a new venture in partnership with his ex-boss at Leh-

mann Brothers; Peter G. Peterson. They called this new company Blackstone Group. The name

‗Blackstone‘ is actually a cryptogram derived from the names of the two founders (Schwarzman

and Peterson): Schwarz is German for black; Peter, or Petra in Greek, means stone or rock. They

set out to compete with the investment banking giants; Solomon Brothers, Goldman Sachs and

Morgan Stanley, with two employees and four hundred thousand dollars in their kitty.

During the ‗80‘s there was a wide spread interest in leverage buyout. Schwarzman wanted to start

big, and with this in mind, he raised nearly a million dollars by himself for Blackstone‘s first pri-

vate equity fund. He was a man who believed in acquiring and merging with sick firms and later

used to convert them in to profit making houses. He always invested when the bear struck the mar-

kets and that‘s how he diversified into different sectors.

In 1991, when recession hit the real estate market, he took a chance and acquired highly lucrative

properties at depressed prices. In the coming years, through Blackstone he invested in a wide vari-

ety of industries. In 2004, Schwarzman picked up a German chemical company, Celanese, when

every other investor was avoiding the chemical sector. He made Celanese public in the US when

the chemical stocks were rising and reaped a windfall.

Under his leadership, Blackstone has also led bankruptcy restructurings of troubled businesses such

as Enron and Global Crossings. In 2007, the biggest leverage buyout in history, Blackstone ac-

quired the Equity Office Partners for $34 billion, taking possession of 540 of his buildings around

the United States. Under Schwarzman‘s guidance Blackstone became the first private equity firm to

go public in the United States. In the largest IPO in history, Blackstone entered the market at a

value of $40 billion. At that time Blackstone controlled nearly 50 companies spread across a vast

plethora of sectors. He made it to the 53rd on the Forbes‘ 400 richest in America and 145th on the

Forbes‘ richest people in 2008.

Schwarzman left

Lehmann Brothers to

start a new venture in

partnership with his

ex-boss at Lehmann

Brothers; Peter G.

Peterson. They

called this new com-

pany Blackstone

Group.

He made it to the

53rd on the Forbes’

400 richest in

America and 145th on

the Forbes’ richest

people in 2008.

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NEWS @ IBS– ALL HAPPENINGS IN IBS HYDERABAD! - VASUNDHARA ARORA TRISHNA 2010!!

Extremely tiring and fun-filled days, a host of elite participant colleges, plethora of hyperactive events, a score

of clubs competing for supremacy, brilliant fusion of style and sound, aromatic and tempting tummy-fillers

and last but not the least an audience with their adrenalin level pumping up to its height....phew!! These could

possibly summarize the energetic and the spectacular three day annual inter-B School fest organized by IBS

Hyderabad- “Trishna- A Quest for Excellence” which lasted from 10-12 December 2010. These three days

were a perfect blend of glitter, glory, gloss, glamour and grandour on the land of IBS for sure; which gave all

of us some of the unforgettable moments to be cherished forever.

This year, the annual fest was based on the theme of “Panchtatva” which literally means the five basic ele-

ments that comprise life by striking a perfect balance for a divine creation viz the Aggressiveness of Fire with

the Dynamics of Air coupled with the Sturdiness of the Earth and Flexibility of Water in the end all Encom-

passing like Space. This theme percolated to every event that was showcased in the fest and even the campus

flaunted this theme from every nook and corner possible.

The three day fun-packed celebration was definitely a much awaited bash and became a big craze for every-

body at IBS, especially for the juniors who were to witness this kind and level of a grand fiesta in IBS for the

very first time.

Various formal and informal clubs functional at IBS Hyderabad made their best attempt to come up with the

most polished and refined packages to offer to the participants. They left no stone unturned to ensure that eve-

rybody thoroughly enjoys their event. At the end of the day, it was a fantastically coordinated teamwork that

was exhibited by Team Trishna which stood out as the success-driver of the event.

The events in the fest revolved around the complete management horizon ranging from marketing oriented to

operations based, from trading to decoding, from HR to strategic games, from quizzes to B-plans, from dra-

matics to melodious singing and also from dance to cat-walks. It was a definitely a breakthrough for the IBS

people burdened under piles of cases and being hammered by CP all the time! Nothing could have got better

than this, honestly!!

Well, it would be very much apt to say that this year‘s Trishna would act like as a benchmark for all of us,

which needs to be surpassed the next time and we could hope of witnessing even a better show next time. Lets

keep our fingers crossed for it!

The participating colleges were as follows:

Tata Institue of Social Sciences, Mumbai

K J Somaiya College, Mumbai

Mudra Institue of Communications, Ahmedabad

Goa Institue of Management, Goa

Indian Institue of Management, Kozikhode

Manage Business School, Hyderabad

IIPM, Hyderabad

IFMR, Chennai

Welingkar Institue of Management, Mumbai

PSG College of Technology, Coimbatore

Amjad Ali Khan College of Business Administration

IBS, Kolkata

SIMS, Pune

Following were the award holders of Trishna‘10:

Best Managed Club: ECOBIZZ and MACON

Best Marketed Club: ADMIRE

Best Informal Club: INFINITY

THE IBS TIMES

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MARKET WATCH - SAINYAM KUMAR

The volatility in Indian markets continued as the pendulum swung to the green color this week as

compared to the red last week. RBI‘s 1% reduction of SLR (which will not affect the banks much

since they are already maintaining SLR much above the minimum limits) and status quo on other

interest rates sent positive signals to the market. Sensex and Nifty seem to be coming back to the

psychological levels of 20k and 6k respectively but the support seems difficult to predict.

Moving on to the performance of the sectors, the trend seems to have reversed among them. Auto

and FMCG, the two high performing sectors seem to be loosing grip while IT and Consumer Dur-

ables seem to be the next havens. BSE-Small Cap was the magnet of the week as it managed to

beat the market.

The major corporate development that saw the prices of oil scrips soaring was the increase in the oil prices. This coupled with the stock split,

bonus shares and dividend announcement from ONGC meant a great week for the company and is said to be the best move before the Govern-

ment‘s 5% divestment in the company.

Tata Motors concerns over the fall in volumes of Nano are more than just evident now. The company has introduced a special financing scheme

of up to 90% of the car‘s value and installed devices to prevent the car from catching fire. With the rise in input prices hitting the auto sector in

the face, this move will affect the profitability to a large extent.

MOVERS AND SHAKERS OF THE WEEK

GLOBAL CUES

The key world markets showed a confusing picture during the week. China led from the front followed by India and UK while Hong Kong led

the pack of the losers. With improving employment figures and better growth predictions, investors are getting optimistic about the investment

avenues. But the Chinese policymakers‘ step to cut the interest rates to curb the inflation has sent second thoughts in their minds.

SURGES %Change DOWNFALLS %Change

IPSAT INDUS. 18.7 UNITED PHOSPHORUS -10.7

IRB INFRA. 16.8 GODREJ CONSUMER -9

ADITYA BIRLA NUVO 10.3 JET AIRWAYS -8.9

THE IBS TIMES

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MARKET WATCH

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Disclaimer- This 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.

Sources- The 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 TEAM-

ADHIRAJ SOOD, RAJAT MONGA, SAINYAM KUMAR, SANDEEP ASRANI, SHILPA MALHOTRA, SU-PRIYA MAMGAIN, TANIYA BANERJEE, VASUNDHARA ARORA.

BUSINESS JARGONS BY– SUPRIYA MAMGAIN

13 Dec 2010 14 Dec 2010 15 Dec 2010 16 Dec 2010 17 Dec 2010

Sensex 19,691.78 19,799.19 19,647.77 19,864.85 *

Nifty 5,907.65 5,944.10 5,892.30 5,948.75 *

DJIA 11,428.56 11,476.54 11,457.47 11,499.25 11,491.91

HangSeng 23,317.61 23,431.19 22,975.35 22,668.78 22,714.85

FTSE100 5,860.75 5,891.21 5,882.18 5,881.12 5,871.75

Gold($/oz) 1,394.50 1,395.80 1,379.40 1,369.50 1,375.50

Crude($/bl) 87.96 88.21 88.22 88.76 -

INR v/s USD 46.2350 45.8650 45.7062 46.0143 46.1838

INR v/s EURO 61.1758 60.8256 61.2924 61.3215 61.0771

Managed float: An exchange rate that (like a floating exchange rate) is free to move up and down, but is subject to

government control (like a fixed exchange rate) if it moves beyond certain boundaries.

THE IBS TIMES

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*Indian markets were closed on Friday on account of Muharram.