ISSUE - 101 18th DECEMBER [SATURDAY]

EDITOR’S DESK - TANIYA BANERJEE

The Trishna week has finally come to an end! With heavy hearts we all bid it good bye.. The entire week end was something that I know for a fact that all of us will remember through out our lives. It was a three day long extravaganza that made us witness a host of myriad events hosted by different clubs and student bodies in IBS Hyderabad.

Similarly we had a host of events that made national news and also created huge waves in the media. Corruption, the word seems to have become a synonym for Indian politics! We have been covering the 2G scam extensively and the ripples created by it seem to be in no mood to settle down with the Opposition Party creating ruckus in the Parliament over it and resulting in the Stalemate of the Parliament. It seems that they are in no mood to allot time to the various pressing events that need to be addressed to get the nation to grow both economically and holistically. But I am a firm believer of the silver lining the-ory and I believe that our silver lining is round the corner with India being all set to ratify UN convention on corruption wherein it will be taking on the obligation to check corrup-tion in the private sector. Also we have philanthropists like Mr. Azim Premji who has announced to donate 8.6% of stake to a private trust managed by him. This represents the single largest donation made by an individual towards any charitable activity.

In this issue we also bring to you the recent events in the world at large. From major ac-quisitions to shifts in the boardroom we have it all for you in our fast-track and quick bites section.

We have also tried to understand if our answer to all, the one best friend of us MBA stu-dents „Google‟ is over?! With its revenues plummeting and a number of competitors around we wonder if its twilight for Google. But in our own home turf we have a brand that is going strong for about 64 years, yes! I am talking about Amul. Get the complete story of its journey from its inception till recent times in our Brand Track section and en-joy the „taste of India‟.

Commingled Fund, REF Corp, writing naked! Wondering what I am talking about? Well for that you will have to go through our issue and discover the meaning of these jargons. Trust me they are as interesting as their names. All of this and much more awaits you in this 101st issue so just take a dive and see what is in store!

Cheers,

Taniya Banerjee

EDITOR 1 OPINION 5 FOCUS 8

COVER 2 BRAND 6 NEWS @ IBS 9

FAST-TRACK 3 QUICK BITES 7 MARKET 10

COVER STORY– THE PARLIAMENT STALEMATE - RAJAT MONGA JPC. I am sure most of you would have heard or read about this term in the last few days. This

term has been at the center of the standoff between the government and the opposition resulting

in a stalemate in the proceedings of the parliament. Even after 15 days of winter session no offi-

cial business has been conducted in the house with the opposition parties forcing adjournment by

creating ruckus as soon the zero hour begins.

The demand for JPC or Joint Parliamentary Committee is the next chapter in the 2G scam in-

volving now famous Mr. A. Raja whose actions according to CAG (Comptroller & Auditor Gen-

eral) priced Indian exchequer a loss of Rs.1.76 lakh crore. Joint Parliamentary Committee is ap-

pointed to look, inquire into particular matter or subject or

fraud, something which is important for nation. It consists

of members from all the parties and from both the houses

of the parliament. The first JPC was formed in 1987 to

look into the Bofors scam and since then we have had

these committees whenever a major scam broke out. So

why is this scam an exception and why isn‟t the UPA led

by Congress agreeing to the demand? The government

says that there is already an investigation going on by the

CBI and Central Vigilance and hence there is no need for

a parallel probe. But both these agencies have already

been pulled up by the Supreme Court for their lax attitude.

It has even questioned the integrity of the Central Vigi-

lance Commissioner and his ability to lead the probe. The

entire government is facing a trust deficit and there is no better way to reassure the citizens than

to order the JPC. Yet it is not!

There could be two reasons for it according to me. Firstly a JPC will ensure that the scam stays

in the limelight. The government can ask the CBI to delay the proceedings- which it already is

doing so that the scam fades away from the memories of the citizens. This is not possible in case

of a JPC as it is not under their control. Also the JPC has a fixed timeframe it has to submit its

report which is presented in both the houses of parliament. The second reason can be that the

government has something to hide and a JPC which goes into all the details might result in more

skeletons falling out of the closet resulting in further embarrassment for it.

This game of politics had, as I mentioned earlier has resulted in no official work being done with

the exception of last Friday when the government forced through a key spending bill by a voice

vote. Another major bill which will make it easier for industries to acquire land has not been put

up in the Lok Sabha because of this impasse. The taxpayer‟s money is being wasted as nothing is

happening in both the Houses and all this for a trivial issue of JPC which as seen from the previ-

ous experiences have not been able to bring out any new findings than already known.

Like everything in Indian politics this issue also started with aim of doing public good has now

turned into a game of political one up-manship. Whoever wins it one thing is certain we for

whom the government is for will loose.

THE IBS TIMES

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Joint Parliamentary

Committee is ap-

pointed to look, in-

quire into particular

matter or subject or fraud, something

which is important for

nation.

The taxpayer’s money

is being wasted as

nothing is happening in

both the Houses and all

this for a trivial issue

of JPC which as seen

from the previous ex-

periences have not been

able to bring out any

new findings than al-

ready known.

FAST-TRACK NEWS -SHILPA MALHOTRA Food inflation hits single digit to 8.6% Having aggressively remained in double digits for the past four months, food inflation slumped beyond expec-tations to 8.60 per cent for the week ended November 20 from 10.15 per cent in the previous week, owing to further easing of prices following increased kharif crop arrivals. The sharp fall if sustained can bring inflation to the projected level of 5.5 per cent by the end of the current fiscal.

India all set to ratify UN convention on corruption India is all set to ratify the global convention against corruption seven years after the treaty came into being, taking on an obligation to check corruption in private sector amid unraveling of multiple scams in the country. With India ratifying the Convention, India will be able to seek full cooperation of the signatory countries in in-vestigation of cases, especially with respect to off-shore bank accounts held by Indians.

Government rejects massive fare hike proposal by airlines Talking tough, the government rejected the proposal by domestic airlines for a massive fare hike and warned them of penalty and other action if the last-minute ticket prices were higher than average ahead of the high-demand Christmas-New Year break. Asserting that the government can't remain a mute spectator to the move by the air carriers, civil aviation minister Mr Praful Patel said there can be “no justification” for airlines to hike fares in an “arbitrary manner”.

ISI Chief conspired against Zardari revealed Wiki leaks Pakistan interior minister Rehman Malik had told then US Ambassador Anne Patterson that it was not chief of army staff Gen Ashfaq Kayani but ISI chief Gen Ahmed Shuja Pasha who was hatching conspiracies against President Asif Ali Zardari, according to diplomatic cables released by Wiki Leaks. The US embassy cables re-vealed that Malik sought an urgent appointment with Patterson in November 2009 and said that Pasha was hatching plots against Zardari, adding that the president needed political security for that reason only.

Musharraf vows not to visit India „ever again‟ following the visa denial The political leader is planning to make a comeback to mainstream politics after having stepped down from his post in 2008.Musharraf was invited to India by some private organizations to address the media as well as at-tend some seminar. However the Indian government has denied visa to the former Pakistan president. The sources said India had reservations about Musharraf‟s visit because he could make anti-India statements and efforts by his supporters in Pakistan to plan and join political activities other than the scheduled ones.

Australia‟s Leighton wins 5.3 billion coal contract The Leighton Holdings subsidiary Thiess has won a $5.5 billion coalmining contract in India and the contractor hopes the deal will help it gain a foothold in the country's burgeoning coal industry. Thiess will develop and operate the Pakri Barwadih mine in the resource-rich state of Jharkhand in India's east over 22 years for the largest state-owned power generator NTPC. Revenue is expected to be $500 million in the first five years, with peak production of 15 million tonnes to be reached in three years.

Premji donates 8.6% stake to a trust Chairman of India‟s third-biggest IT services exporter, Premji will transfer around 8.6% stake worth over Rs. 8, 000 crore to a private trust managed by him. The Shares, at current market prices, are worth Rs 8,846 crore, and represent the single largest donation by an individual towards charitable activities. Premji‟s stake in the Company is expected to come down to just over 70 percent from the current level of 79 percent which will help Premji to comply with the new Finance Ministry rule that mandates companies listed in India to increase their public shareholding to 25 percent.

Commingled Fun– A mutual fund that includes assets from several accounts, pooled together, to reduce manage-

ment and administration costs; here also called pooled fund.

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Only Bharti Punj Llyod submits bid for TCIL stake in Hexacom Bharti Airtel and Punj Lloyd are the only two companies to have submitted bids to buy out Telecom Consult-ants of India‟s (TCIL) 30 percent stake in Bharti Hexacom Airtel‟s operations in six Northeastern states and Rajasthan are through Bharti Hexacom. Airtel owns 70 percent stake in Hexacom, and the government had recently invited bids as TCIL wanted to exit by selling stake in the JV. The deal will be worth upwards of Rs 1,800 crore, which is the base price prescribed by the government-appointed consultant.

Tata angry over Neera Radia tape publicity Tata Group chairman, Ratan Tata is offended by the leak of the phone records of Nira Radia, who plays a ma-jor role in lobbying for corporate houses. Tata believes that the leaking of tape recording is a violation of pri-vacy rights of an individual and has filed a petition in this regard in the Supreme court. However, the home ministry asserts that such tape leaks are inevitable in major scams and tax violations.

HDFC hikes floating home rates by 75 bps Home loans have become more expensive, with the country‟s largest housing finance company HDFC raising interest rates by 75 basis points. HDFC has revised its floating interest rates on home loans for both existing and new customers with effect from December 1, 2010. Following the increase in the retail PLR, new home loan customers‟ adjustable rate home loans will now be priced 9.5% per annum for loans up to 30 lakh, 9.75% pa for loans up to 75 lakh and 10% pa for loans above Rs 75 lakh.

IIFCL plans Rs.1200 crore bond issue The state-run core sector lender India Infrastructure Finance Company (IIFCL) will come out with a Rs 1,200-crore retail infra bond issue from January through March. "We will launch Rs 1,200-crore tax-free infra-structure bonds this fiscal. It will hit the markets in three tranches of Rs 400 crore each,” said IIFCL Chair-man and Managing Director SK Goel. The proposed bonds are AAA-rated and will carry a coupon rate of around 8.5 per cent for 10 years and 8.75 per cent for 15 years.

Ireland wins $113 billion bailout Ireland won approval for an 85 billion-euro ($113 billion) emergency-aid package as European finance minis-ters battled to contain the fiscal crisis. Ireland will receive 67.5 billion euros from the European Union and International Monetary Fund and provide 17.5 billion euros from its own pension reserves. Greece was told it could have extra four-and-a-half years to repay emergency loans totaling 110 billion euros to match the seven-year term under Ireland‟s deal.

Gambhir shines out in Jaipur The Delhi left-hander played a captain's knock that followed his match-winning unbeaten 138 in the second ODI in Jaipur on December 1 as India easily chased down the target of 225 in 39.3 overs to take an unassail-able 3-0 lead in the five-match series. Gambhir, who smashed 16 boundaries with his flicks and drives in the 117 balls he faced, put on 115 runs for the opening wicket with Murali Vijay who made a slow 30 in 50 balls before being run out.

“I did nothing wrong”, says Lalit Modi Putting up a stout defence, sacked BCCI administrator Lalit Modi denied any wrongdoing during his role as IPL commissioner and called the charges against him as witch-hunt. Modi said he did not rig any of the IPL bids, did not make money out of IPL and that BCCI was aware of all his actions. Modi is facing charges of financial irregularities and is facing probe by Enforcement Directorate, BCCI Disciplinary Committee and the Chennai Police.

REFCORP- Resolution Funding Corporation. The organization created by Congress in 1989 to bail out the sav-

ings and loan industry by offering debt to some companies and liquidating others.

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OPINION FORUM– IS GOOGLE OVER? -SANYA DHAWAN

Spring of 1996, Stanford University, California-two very bright students, Larry Page and Sergey

Brin were given a research project. They were supposed to study the working of internet search

engines. At that point of time search engines would rank results by counting how many times the

search terms appeared on the page but the two theorized a better system that analyzed the rela-

tionship between websites. The website's relevance was determined by the number of pages, and

the importance of those pages, that linked back to the original site. They named it „Google‟. The

rest as they say is history. Google, in the next decade grew tremendously. In 2007 it bought You-

Tube for $1.65 billion.

But in the past four years the revenues of Google have been plummeting. A 80% fall in total

revenues since 2007. So, what went wrong? Basically, Google is faced with two major business

challenges. The first challenge Google faces is of the regulators

who complain that it is abusing considerable power by manipulat-

ing search results that gives an unfair advantage to its own services.

The second major business challenge faced by Google is that it

doesn‟t have new opportunity of growth. The revenue generating

activities have stagnated and consequently the share prices.

The management of Google is also facing various problems. The top men of Google have

switched to one of its main competitor, Facebook, complaining that the bureaucracy at the com-

pany is increasing. To top it all, problems of Google don‟t end internally. Its competitors are also

giving them a tough time. The newspaper companies, who at the moment are providing free con-

tent to Google, are coming up with their own tablet computers to generate additional revenues

and find new sources of information providing (to combat new technologies like the kindle.)

It also seems to me that this is the end of Google as it is not able to keep up with the changing

technology. The next big thing in technology is the Semantic Web (or Web 3.0). The Semantic

Web promises to “organize the world‟s information” in a dramatically more logical. The Seman-

tic Web requires the use of a declarative ontological language like OWL which will deduce an-

swers instead of just throwing raw information at you using the outdated concept of

a search engine. To give a very basic example, say a new video game called Mario is launched.

Now people across the world would rate this video game. The user would have to go through

various blogs and gaming sites to actually get an idea about Mario.

But with the inception of Web 3.0, the machine will be able to reason out and give a single solu-

tion as to how the video game is rated.But in this dark picture that I have portrayed, is there light

at the end of the tunnel? Maybe. Let‟s examine the other side. Google has rapid growth in the

amount of data being produced worldwide which would make advertising more effective and

eventually increase advertising revenues by $50 Billion. It has also introduced Android, a smart

phone operating system, which it lets telecoms firms and phone-makers use for nothing and

helps in cross selling its products like the e-mail. To combat competition to social networking

sites, it plans to introduce a “social layer” across its existing products in the coming months; di-

versifies business from taking a stake in a wind-energy project off the east coast of America to

testing self-driving cars.

Despite all this, we must realize that at the end of the day, Google‟s forte is it being a search en-

gine and search related advertising accounted for almost all of its $24 billion of revenue and $6.5

billion of profit. And Google is loosing that to its competitors- Facebook and Apple- are hoard-

ing loads of information which is not accessible to Google. The competitors it seems are taking

over and the light is at the end of the tunnel is diminishing it seems.

Writing Naked- Risky investment strategy employed by option writers that allows them to sell options without

owning the underlying security. This tactic can lead to large profit or loss depending on the direction that option writer

projected and the actual direction that the security takes.

THE IBS TIMES

The top men of Google

have switched to one of its

main competitor, Face-

book, complaining that the

bureaucracy at the com-

pany is increasing.

Facebook and Apple-

are hoarding loads of

information which is not

accessible to Google. The

competitors it seems are

taking over and the light

is at the end of the tun-

nel is diminishing it

seems.

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BRAND TRACK—AMUL: THE TASTE OF INDIA -NITIKA THAKUR

The largest food brand of India which has around 64 years of existence is an epitome of suc-

cess, commitment and creativity. The utterly butterly girl has managed to keep the fan follow-

ing up and intact. Amul the brand which was started in 1946 in Anand, Gujarat is the best ex-

ample of a successful co-operative organization. The largest pouched milk brand which has an

annual turnover of 67.11 billion has entered into the global market as well.

Amul as a brand is so popular that the Government of India has honored Amul with the “Best of

all categories Rajiv Gandhi National Quality Award”. The ultimate compliment to the butter

giant came when a British company launched butter and called it Utterly Butterly; Amul has

used the hoardings and advertising to perfection. More over Amul has created a niche for itself

by remaining consistent with its creative messages throughout. The best part about Amul as a

brand is that Amul has been consistent over the communication campaign and brand strategy.

There is no second thought that Amul is the market leader in butter, whole milk, cheese, ice

cream, dairy whitener, condensed milk, saturated fats and long life milk. Amul follows a unique

business model, which aims at providing 'value for money' products to its consumers, while

protecting the interests of the milk-producing farmers who are its suppliers as well as its own-

ers. Despite being a farmers' co-operative, Amul has given multinationals a run for their money.

In butter, cheese and saturated fats AMUL has been an undis-

puted market leader, by offering its products to them at com-

petitive prices but in other categories as well it has nullified the

effect of a late mover by aggressive pricing, better quality, inno-

vative promotion and superior distribution.

A SWOT analysis of Amul says that the biggest strength of

Amul is the wide range of products it offers, effective ad cam-

paign and an efficient distribution network. The target audience

of Amul was diverse and each group has specific products for it.

Be it the Probiotic wellness ice-cream and sugar free delights or

the Kool koko milk for teenagers. Although a wide range

fetched Amul a huge customer base but it had many times re-

sulted in competition between its own brands like Amul processed cheese vs. cheese spread or

the Nutramul energy drink Vs. Amul Kool.

The Gujarat Cooperative Milk Marketing Federation Ltd, Anand (GCMMF) has the largest dis-

tribution network for any FMCG company. It has 50 sales offices spread all over the country,

more than 3,000 wholesale dealers and more than 5,00,000 retailers. Amul also exports dairy

products in around 40 countries.

The white revolution in India heralded by Amul changed the way milk and milk products were

consumed in India. It made India the largest producer of milk and its products. It also gifted

Amul the tag of the world‟s biggest vegetarian cheese brand. Amul changed the life of farmers;

it brought awareness in their minds, helped in curbing the exploitation of farmers done by mid-

dlemen and private traders.

It took Amul 60 years to reach the production capacity of 10 million liters per day and the very

next initiative of Amul is to double this capacity by 2020. Amul is heading towards the second

white revolution with high speed and magnitude. The capacity of 20 million liters per day will

increase the revenue by three folds and change the self sufficient market into an export driven

market. It is carrying forward the legacy of the father of white revolution “Dr Varghese Kurien”

and guarantees that there will be no shortage of milk in the country. The productivity level per

animal has improved significantly because of better feed and other initiatives taken by the dairy

unions. Also Amul is on track of expansion by adding new plants, increasing the capacity of the

existing plants and increasing the number of distributors. Now since Amul has unveiled its

global ambition, lets see how our utterly girl does in future!

THE IBS TIMES

The white revolution in

India heralded by

Amul changed the way

milk and milk products

were consumed in In-

dia. It made India the

largest producer of milk

and its products.

Amul as a brand is so

popular that the Gov-

ernment of India has

honored Amul with the

“Best of all categories

Rajiv Gandhi Na-

tional Quality

Award”.

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QUICK BITES- NEWS THAT CAN’T BE MISSED ! - SUPRIYA MAMGAIN

Big Shots… Toyota introduces Etios sedan, its first offering in the B-segment in Bangalore.

BASF, the world‟s biggest chemical firm to invest more than Euro 2 billion ($2.6 billion) in Asia by

2014.

Ranbaxy Laboratories, India‟s largest drug maker by sales, has won approval to sell a copy of Ei-

sai‟s Aricept Alzheimer‟s drug in the US.

Videocon and its partners Amadarko, Cove Energy and BPRL make third gas discovery in Mozam-

bique.

GMR Infrastructure sealed the deal to sell its 50% stake in InterGen to Chinese electricity company

Huaneng Power for $1.23 billion.

RIL ranked 20th largest chemical firm globally.

Company Talks… Religare to buy 55% in US asset management firm Landmark for `770 crore.

Google is eager to buy local coupon site Groupon for as much as $6 billion.

BHEL is in talks with CRISIL to get the license to operate an NBFC.

Economic Times becomes the 6th largest English daily in the country, with a readership close to

8,00,000.

PepsiCo to buy majority stake in Wimm-Bill-Dann for $3.8 billion which is aimed to increase Pep-

siCo‟s presence in Eastern Europe.

Ford to expand Figo hatchback exports to 48 countries.

Bajaj motorcycle sales jump by 9% in November.

Acer aims to grab 15% of Tablet PC market in 2011.

Honda‟s Brio to make India debut in 2011.

Economy Speaks… PMI (Purchasing Manager‟s Index) rises to 60.1 in November, services back on high growth path.

India‟s Nuclear power share to be nearly 25% by 2050.

US November jobless rate hits 9.8%.

Rupee gains 10 paisa against dollar to `46.79.

India-Thailand bilateral trade is expected to reach $6 billion this fiscal.

Government hikes natural gas price by 10% for non-priority sectors.

IIFCL likely to get the NBFC tag, as RBI looks to bring the dedicated infrastructure lender under

the scanner.

Government tightens norms for withdrawal of provident fund by overseas workers employed in the

country prohibiting them from taking the money until they are 58 years old or incapacitated.

The Captains of the Ships..

President of J.K. Group - Shri Hari Shankar Singhania

President and CEO of Honda Motor, Asia - Mr. Takanobu Ito

CEO of Reckitt Benckiser - Mr. Bart Becht

Full Time Director of MRF- Mr. Rahul Mammen Mappillai

Chief Statistician of India- TCA Anant

CMD of Air India- Mr. Arvind Jadhav

MD of Jindal Power - Mr. R.S. Sharma

Chairman of GVK Power& Infrastructure Ltd. - Mr. G.V. Krishna Reddy

THE IBS TIMES

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FOCUS OF THE WEEK– AN INSTRUMENT THAT BECAME THE ‘BUZZ’ OF THE MARKET - NEHA DASSANI

Flexible Spending Account- A benefit offered to an employee by an employer which allows a fixed amount of pre

-tax wages to be set aside for qualified expenses. Qualified expenses may include child care or uncovered medical ex-

penses.

THE IBS TIMES

Collateralized Borrowing and Lending Obligation (CBLO) is a negotiable instrument which

is fully-collateralized with no credit risk associated to it, as CCIL i.e., the issuing authority of

CBLO provides guarantee against the default to counterparty. The party needs to have a Statu-

tory General Ledger Account (SGL) with CCIL for lodgment of securities which are to be used

as collateral for borrowing. There is a limit to which the funds can be borrowed and it is de-

cided by CCIL.

CBLO was introduced by CCIL on 20th Jan,

2003, and has got immense popularity in the mar-

ket since then. Earlier it was traded less in num-

ber but today the number has crossed 30000 mil-

lion per day. It is one of the options for investors

who are moving out of the call money market

due to RBI restrictions. The first disadvantage of

call money market is that it has unsecured lending and the RBI has decided to phase out non

banking entities from it. It has even imposed restrictions on access to call money market by

banks and primary dealers.

Entities that are not forming a part of banking system are not allowed to participate in the Li-

quidity Adjustment Facility (a tool used in monetary policy that allows bank to borrow money

through repurchase agreement) auctions conducted by RBI. Due to this, market participants are

forced to use the Repo market for deployment of their funds. A study by Golaka Nath (NSEIL)

and R Natrajan, „CBLO and its impact on other Money Market Segments.‟ states that Liquidity

Adjustment Facility has a negative relationship with call and REPO but a positive relation with

CBLO. It has various advantages like CRR exemption and lower risk weight.

The most interesting thing about CBLO is that one can make a guess about the rate of interest

and availability of money. For example, let us consider the rate of CBLO as stated by CCIL to

be 2.9% and the current Reverse Repo Rate to be 3.7%. So, banks to suffice liquidity crunch or

to make profit borrow from the CBLO and sell it to RBI and thus making a profit of 0.8%

profit. Thus CBLO proves out to be less risky than providing retail loans which might prove

out to be risky. Supporting the same a recent article published on 20th November 2010 mentions

that the banks borrowed 1105.29 billon and parked 19.59 billion as a reverse repo; more-

over huge amount was borrowed for IPO as well by MOIL Ltd.

One of the reasons for CBLO‟s popularity can also be that it is more flexible when compared to

Repos, where the obligation can be squared up only on a single due date, there is no option to

„prepay‟ even if the borrower wants to. Whereas, CBLO allows buy and sell anytime during the

tenure.

Thus, we can say that CBLO is an infant in the market that has shown a calibrated growth and

integration when compared to other markets, and today stands as an important instrument for

banks, and corporate in liquidity crunch or otherwise.

It is one of the op-

tions for investors

who are moving out of

the call money market

due to RBI restric-

tions.

The most interesting

thing about CBLO is

that one can make a

guess about the rate of

interest and availabil-

ity of money.

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NEWS @ IBS– ALL HAPPENINGS IN IBS HYDERABAD! - RINI CHATERJEE THE BEST MANAGER: STOCKYARD

StockYard organized „The Best Manager‟ game this week. As the name suggests, this

game was designed to judge a person‟s managerial skills in the real world. The game

consisted of 4 rounds which would evaluate the players‟ based on their performance on

the grounds of communication skills, group efforts and stress management. In the first

round all the teams had to untie knots on a long rope using only one hand, thereby re-

flecting team work. The fastest teams got bonus while going into the next round to test

their communication skills. The teams had to pick a „CEO‟ to view an illustration and

explain it to a „runner‟, who had to narrate the illustration to his respective team mem-

bers for them to draw it. The closest replica was the winner. The third round was based

on the concept of „survival of the fittest‟ where the players could vote other players out.

Then the players who were voted out had the liberty of challenging another player to a

game demanding group co-ordination. The challenges won this game and were eligible

to graduate to the final round. The final round was held the next morning where 9 final-

ists were scrutinized in a grueling Stress Interview round. The game was won by Nagesh

Shrivastava who was awarded the title of „The Best Manager‟.

INTERNATIONAL MARKETING AND BUSINESS STRATEGY CONFER-

ENCE 2010

IBS Hyderabad hosted the International Marketing and Business Strategy Conference

2010. It was a grand event which summoned renowned scholars and professors in the

field of marketing from all over the world. The chief guests for the occasion were Abra-

ham Koshy, co-author of Marketing Management, Jai Kumar, Vice- President, Star In-

dia and Ankur Gupta, Director, Marketing, SumTotal Systems. The conference pre-

sented various innovative and new marketing concepts and techniques by all the dele-

gates and scholars who had attended the conference. The various lectures and tracks

were attended by hoards of students of IBS Hyderabad and inculcated different ideas for

further research and innovation for the future budding marketers.

PENTATHLON: VAPS

Organized by VAPS, Pentathlon was a spectacular sports event which pepped up the

whole crowd of IBS Hyderabad under one call. All the sections of 1st and 2nd year were

divided into clans of two sections each, named after a country. The various sports played

for the event were tug of war (men and women), tennis (men‟s doubles), football (men),

throw ball (mixed) and badminton (men- singles and doubles, women- singles and dou-

bles and mixed doubles). The winning teams were awarded 1000 point, the runners-up

500 points for each game and 2000 points were awarded for cheering for their teams by

the clans. The clan with maximum points will win the event. The event, like all other

sporting occasions, brought the whole college together, to play and bring their true

sportsman spirit to life.

THE IBS TIMES

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MARKET WATCH - SAINYAM KUMAR

Just when the common investor could assure himself of the bear run arrival, he faced a shock this week. The downtrend in the mar-

kets reversed the pattern this time as Sensex and Nifty gained 4% each during the week. Volatility prevailing throughout the trad-

ing sessions hinted towards the fall not being a sharp one. Easing of food inflation continued

as it came down from 10.15% last week to 8.6% this week which is attributable to the above

expectation monsoon we witnessed. What is interesting to see is whether inflation comes

down to moderate levels or would QEII push it up again?

Moving on to the corporate news, the decision of Hero group to increase the royalty pay-

ments to Honda Motor Co. to 8% was seen in a bright light by the investors. The increased

payment is for the technological makeover and selling of stake by the latter and would be

made by 2014.

BHEL is planning to set up its own Non-Banking Finance Company (NBFC) in consultancy

with CRISIL. According to BHEL, this will be set up to finance the power projects of the company and they will have another stra-

tegic partner on the board and will assume the role of a minority shareholder.

The Movers & Shakers of the Week

Stock market is just like a box of chocolates, you never know what you are going to eat next and the indices showed just that. BSE-

Realty, which lost 13.6%, last week, led the pack of gainers this time. All the indices reported positive figures for the week as even

the worst performer (BSE-FMCG) gained 2.5%.

Global Cues: For the week ending December 4, 2010, the top performer among the key world markets was India. Better than expected results in

U.S. and increasing confidence about the fact that U.S. Government will be able to pull the economy out of the fears of a double

dip recession, led to them gaining as much as 2.6%. The news about S&P thinking of downgrading Greece‟s long term debt based

on the effect that the European bailout rules will have on the private investors sent shivers across Europe. But, the only market to

end the week below the “zero line” was China, which lost 1% during the week.

SURGES %Change DOWNFALLS %Change

Bank Of India 13.6 Welspun Corp. -29.7

IOC 11.5 Koutons Retails -25.4

Tech Mahindra 11.2 HCC -17.2

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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-

NEHA DASSANI, NITIKA THAKUR, RAJAT MONGA, RINI CHATTERJEE, SAINYAM KUMAR, SANYA DHAWAN, SHILPA MALHOTRA, SUPRIYA MAMGAIN, TANIYA BANERJEE.

BUSINESS JARGONS BY– SAINYAM KUMAR

29 Nov 2010 30 Nov 2010 1 Dec 2010 2 Dec 2010 3 Dec 2010

Sensex 19,405.10 19,521.25 19,850.00 19,992.70 19,966.93

Nifty 5,830.00 5,862.70 5,960.90 6,011.70 5,992.80

DJIA 11,052.49 11,006.02 11,255.78 11,362.41 11,382.09

HangSeng 23,166.22 23,007.99 23,249.80 23,448.78 23,320.52

FTSE100 5,550.95 5,528.27 5,642.50 5,767.56 5,745.32

Gold ($/oz.) 1367.30 1388.90 1386.60 1384.90 1414.50

Crude($/bl) 83.45 83.65 84.13 86.14 -

INR v/s USD 46.5300 46.1628 46.1225 45.7605 45.4220

INR v/s EURO 61.6653 60.9035 60.2571 59.7481 59.7504

Segregated Fund- An annuity offered by an insurance company which guarantees a specific percentage return on

the investment upon maturity. It is similar to a mutual fund, and is offered by an insurance company. The term

"segregated" is used because the funds are kept separate from the issuing company's other investment funds.

THE IBS TIMES

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