ISSUE - 109 26th FEBRUARY [SATURDAY]

EDITOR’S DESK - TANIYA BANERJEE

Someone has rightly said that money won is twice as sweet as money earned. Perhaps

this is the reason why we are so keen on wanting to see betting get legalized. With the

cricket season back with full vigor and with the world cup back in action huge money is

at stake leading to critics saying that its high time that betting in cricket be legalized in

India. Get further insight into the matter from our cover story.

„The scent of jasmine‟ wondering what this is? Well its not some weak flower that can be

trodden under foot I am talking about. It is the name of the revolution that changed the

political face of many a countries with its lead. The rulers and the autocrats of the Africa

and the Arab world might be seeing their very last days of regime because of this phe-

nomenon. Catch our writers opinion on this and get to know more about the news that is

currently rocking the world.

Volkswagen „the people‟s car‟ is the brand that we are covering this week. It is the auto-

maker that gave us masterpieces like the beetle. Catch up on the history and growth of

this giant in this section for this week.

The volatility of the market has been in news for quite sometime. With the market in jit-

ters the investors are all the more wary about making the right choice. Catch all the hap-

penings in our „Focus of the week‟.

Along with all of this we bring to you Fast-Track, Quick-Bites for a quick glance of vari-

ous important news throughout the week. And your favorite market watch section for

tracking all the recent ups and downs in the market.

I hope all of you have loads of fun reading this issue as well!

Cheers,

Taniya Banerjee

Editor.

EDITOR 1 OPINION 5 FOCUS 8

COVER 2 BRAND 6 MARKET 9

FAST-TRACK 3 QUICK BITES 7

COVER STORY– BETTING IN CRICKET: TIME TO LEGALISE - RAJAT MONGA Vishal, a trader in Kolkata is just like any other Indian. He loves watching sports especially

cricket and follows it closely. But in the World Cup opener of India vs. Bangladesh match, he

was praying for Sachin to get out before he reached a half century. And when Sachin did, Vishal

walked away with a neat Rs. 50,000 rupees on an investment of Rs.10,000. Welcome to the

world of betting, and since it is banned in India, „illegal betting‟.

With the world cup kicking off in style at Dhaka, it is busy time for bookies and punters. The

cup has come back to India after a gap of 15 years and the bookies are making the most of it. In-

dia is after all the nerve center of illegal betting racket of the world. That all the scandals which

have hit cricket since 2000 where someway or the other linked to Indian bookmakers says all

about it. The illegal industry in India is enormous. For any cricket game there could be thou-

sands of bookies that are running illegal operations, trading money and taking bets for the

games .Experts estimate the industry to be roughly worth USD

4 billion and it is not limited to international matches. The last

edition of IPL sources say, saw bets worth USD 427 million.

The biggest draw is India Pakistan matches with at least

Rs.100 crore riding each time the arch rivals go head on. With

clear evidence of such a massive industry, is not it time for the

government to legalize betting in India. As they say, the best

way to regulate something is to legalize it.

It is absurd that in a cricket crazy country like India, other

forms of betting are allowed and not on cricket. Take an exam-

ple of betting on horse racing which is legal in India has a mar-

ket of Rs.1000 crores. There are strong arguments for legaliz-

ing it.

People have continued betting illegally and there are many sus-

picions that the money that is made from the illegal gambling is used for even worst activi-

ties. The money used for gambling may be used to illegal drug trade or even terrorist activities.

With the money going to these sorts of destinations the country has been trying to determine the

best way to slow down the illegal betting.

Even courts of India gave an answer that surprised many. The court in its observation said that

the best saw to deal with this menace is to legalize it and money collected as taxes can be used

for the welfare of the society. There are figures to back this logic. Lotteries, which are another

kind of gambling is legal in some states. Calculations from an RBI report, 'State Finances - A

study of Budget 2002-03,' show that there is a tremendous increase in states' profits from lotter-

ies. The aggregate losses of Rs 71.41 crore (Rs 714.1 million) in 2000-01 turned into whopping

profits of Rs 503.21 crore (Rs 5.232 billion) in 2002-03.Lotteries are a major contributor to the

revenues of states and when you look at betting in sports industry which is much larger then lot-

teries, the revenues would be substantial.

India will not be the first country to legalize betting in cricket. It is a well regulated legal indus-

try in western countries. England for example has a huge industry. In 2008, gambling was re-

sponsible for 3 billion pounds ($4.65 billion) in gross value-added terms and helped create

40,700 equivalent jobs. The industry is well regulated by the Gaming Commission which takes

all the major decisions.

A gradual legalizing of betting with proper regulation will bring billions of dollars to the legal

economy and will go a long way to tackle the menace of match fixing. By the way, bookies are

praying that India does not win the cup as they will loose a lot of money since India is a favorite.

So whom are you betting on?!

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With the world cup kick-

ing off in style at Dhaka,

it is busy time for bookies

and punters.

With the money going to

these sorts of destinations

the country has been try-

ing to determine the best

way to slow down the

illegal betting.

FAST-TRACK NEWS -SAINYAM KUMAR & SHILPA MALHOTRA Centre lifts ban on onion exports

The protests by farmers and exporters finally paid off as the Government lifted the ban on export of onion. The

onion prices hit the sky-rocketing Rs.80 per kg two months back but have been coming down since then and

hence the ban that was imposed last December was finally called-off. But the Minimum Export Price (M.E.P)

has not been decided yet as the competition from Pakistan is getting intense and might hit the Indian exporters

as both the countries are fighting for the same market.

No hike in taxes in Corporation budget

The Chennai Corporate budget for 2011-12 has left the professional and property tax rate untouched. This has

come in spite the Government continuing to work for the welfare on the health and education front. One of the

highlights of the budget was the launch master health check-up consisting of 18 tests for Rs.500 at Corporation

diagnostic centers. The centers are spread across the state and would help bring the much needed reform on the

health front.

No need for third alliance partner: Sena

22 year old alliance of BJP-Shiv Sena will remain intact and no third party will be included in the alliance was

the announcement from Shiv Sena‟s leaders. The rumors of a possible tie-up with Maharashtra Navnirman Sena

(MNS) have been doing rounds since last year when they visited BJP headquarters but the rumors have been

answered by Ravi Shankar, BJP‟s spokes person, as not concrete in nature.

Nilekani to head task force on direct subsidies

With an aim to target the subsidies on cooking gas (LPG), kerosene and fertilizers towards the country‟s poor,

the Government announced that an inter-ministerial task force will be set up under Unique identification Au-

thority of India headed by Nandan Nilekani. The Government said that a separate task-force was required to

ensure better accountability of the whole procedure which is vital during the soaring inflation rates.

Antrix-Devas deal annulled

The Cabinet Committee on Security, headed by Manmohan Singh, announced that it will not be able to provide

the orbit slot in the S-band and thus paved the way towards annulling the agreement signed between Antrix

(commercial arm of ISRO) and Devas Multimedia. Antrix was to provide 70 MHz of the scarce S-Band wave-

length and Devas was to pay a sum of $ 300 million over the period of 12 years.

Tata forms venture with Lockheed Martin

Tata Lockheed Martin Aerostructures is the new joint venture company arising out of the JV between Lockheed

Martin Corporation and Tata Advanced Systems for manufacturing aero structures for C-13 aircraft. The new

facility is export oriented and will help Lockheed a lot in competing with the international competition for C-

130 brand of planes. Ratan N. Tata, Chairman, Tata Sons, said, “We believe it will raise the level of capability

of the aerospace industry in India as also complement the efforts of our Defence Public Sector Undertakings.”

Adani forms venture with Australian firm Adani Group has signed a MoU with Carbon Energy to form a joint venture. The new entity has been formed with an aim to pursue underground coal gasification (UCG) projects in India. UCG is a process through which the un-worked coal can be converted into combustible gas which can be used for both domestic and industrial purposes. The MoU has been signed for a period of 18 months.

Form 8606 – A tax form distributed by the Internal Revenue Service (IRS) and used by filers who make nondeduct-

ible contributions to an IRA. A separate form should be filed for each tax year that nondeductible contributions are

made.

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BHEL bags $436 m order in Yemen Bharat Heavy Electricals Ltd. said that they have bagged $436 m for setting up a gas based power project in Yemen. The project, Marib gas-based power project (Phase II), is financed by the Arab Fund for Economic and Social Development, the Saudi Fund for Development and the Government of Yemen. The company is executing 45contracts in 23 countries totaling 12500 MW. Moreover, Yemen‟s plans to further expand its power capacity gives a lot of opportunities to BHEL.

China does not favor G4 call on UNSC reforms India, Brazil, Germany and Japan (G4), said that they would take steps to expand the permanent and non-permanent membership of United Nations Security Council but China called it a “premature step” that would undermine the unity of member states. Although not in favor of the step, China is not expected to out rightly make a move against this step as India is involved in the decision making and China would not take the risk of spoiling its relations with its neighbor.

Switzerland makes it easier to spot overseas tax offenders Swiss authorities have relaxed the conditions for sharing information with foreign authorities over the secret bank accounts of foreign tax offenders. However, to bring this development into effect, the double-taxation agreements between Swiss Government and other Governments would need to be revised. The Swiss Gov-ernment has made it clear that the interested authorities should seek specific information rather than trawling through to find „something‟.

Egypt's army suspends constitution, sets 6-month timeline for elections By dissolving the parliament and setting the timeline of 6 months for the presidential elections, the military seems to have tightened their grip on the Egyptian establishment. Going against the opposition‟s demand of a fresh constitution, the military announced that a committee is being set-up to amend the present constitution. The opposition on the other hand said that the amended constitution should be a temporary and a second com-mittee should be formed to draft a fresh constitution.

Libya crackdown claims 84 lives The security forces in Libya have killed 84 people by mainly using live ammunitions. With brute force and a blinding media blackout, the regime is trying to put down the revolt, which has already left scores of people dead. Friday was the bloodiest day since the start of the protests as 35 people were gunned down but people say that the build up to Friday had started on Thursday itself as 20 people were killed on that day. The pro-tests in Libya are a result of the events in Egypt resulting in the people‟s protests being agreed upon.

Liverpool held to a goalless draw English giants, Liverpool, were contained by Czech side Sparta Prague as the former‟s dreams of making a winning return to the European competition were crashed. Liverpool manager, Kenny Dalglish said that the home team could not put pressure on them and 0-0 was a fair result. Liverpool has not had a great domestic season this year and the European silverware seems like the last hope. Liverpool‟s dreams of title have got a major hit after the star striker Fernando Torres moved to Chelsea.

Only 10 teams for 2015 WC: Lorgat ICC CEO Haroon Lorgat confirmed that 2015 cricket world cup will have only 10 teams as against 14 seen in 2011 WC. The main premise behind this decision is that the 50-over format is a skill based one and should be allowed for the top teams only. The T-20 cup on the other hand will play host to 16 teams as T-20 is consid-ered the best format for making the sports world-wide. The current test playing nations have said that the tier 2 teams are not competent enough to cause any upset in the competition.

Barbell- A bond investment strategy that concentrates holdings in both very short-term and extremely long-term

maturities. This is also known as the "dumbbell" or "barbelling."

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OPINION FORUM– THE SCENT OF JASMINE - ADHIRAJ SOOD

It began with the Jasmine Revolution in Tunisia, went on to Egypt where it was called Sidi Bouzid revolt

and now this scent of Jasmine which is rocking Middle East and Africa is also sending jitters across to

China. Has Africa and the Arab world finally woken up? Have they realized the need of democracy? Are

they ready to govern themselves and not be ruled by RULERS or in today‟s world called AUTOCRATS?

These are the questions that have been running in my mind and probably the minds of many young and

old for past few days. It was December the 17th, 2010 when a street vendor called Mr. Mohamed Bouazizi

woke up and stood in protest against the corruption, poverty, unemployment, human right violation, fam-

ine he had been facing since his birth on his beloved motherland. His self-immolation started a chain of

unrest across Tunisia. There were unprecedented series of uprisings, protests and demonstrations all over

the nation; followed by marches and rallies. There was also extensive use of social media sites like Twit-

ter and Facebook to bring awareness among the people and to unite them to a common goal i.e. freedom.

Freedom to live, decide, choose for them, something that had been missing in Tunisia for a very-very

long time. And finally, these actions lead to the goal that Tunisians had long awaited for; the 24-year-old

rule of Mr. Zine El Abidine Ben Ali ended.

With this a new era of revolution began its journey across Africa and

the Arab world. This scent of freedom spread across Egypt; with Egyp-

tians putting an end to Mr. Mubarak 30 years old reign, the scent spread

further west and east across the other nations in Africa and Asia. Simi-

lar turmoil and, increasingly, bloody retaliation from government has

been seen in Libya, Bahrain, Yemen, Iran, Jordan and Algeria since the

spread.

Coming back to my first query i.e. has Africa and Arab world finally

woken up? If you would ask me? yes they have. Tired of sitting jobless,

with no money, no food and over and above a corrupted government,

the people have realized that nothing is going to change that could not

be changed in the past three decades. If something has to be changed,

than it is them who have to bring about that change.

My second doubt was whether they have realized the need for democracy? On this, I am not sure that

whether they have. For me they are just sick, tired and torn because of the previous regime. They need a

change, but whether that representative is going to be chosen from amongst themselves or some other

leader who would rule for three more decades, I am not sure and I do not think either they are. I think

they truly do not understand what democracy is, they just want to try another form of leadership, hoping

that it would bring about an end to all their woes.

The last question, are they ready to govern themselves and not be ruled by RULERS or in today‟s world

called AUTOCRATS? Again I am doubtful about this too. Africa was ruled by the Europeans for so

many years like their South Asian counterparts, but they could not be institutionalized. They remained the

same even after freedom. So, I am not sure whether they are ready for such a huge leap forward. The

thing we all need to realize is that if the democratic government that comes into play is not strong

enough, these nations can fall into much deeper pit than they are already in.

One thing that has really come out good of this revolt is that, Islam as religion was always judged by peo-

ple as a very violent religion; Muslims were always linked to terrorist activities. But probably this is the

time when Islam can shout aloud and say it to the world, how it has attained its goal by non violence.

Well! These are my doubts, thought and queries. These questions still remain unanswered for now but not

for long. I am sure this revolution would answer all our doubts, and questions. We would definitely see

the change in front of our own eyes. We would definitely see history re writing itself.

Overnight Position– Trading positions not closed by the end of the trading day and held overnight. For securities

trading, overnight positions expose the investor to risk because a number of events can negatively impact a posi-

tion while the trading floor is closed.

THE IBS TIMES

There was also extensive

use of social media sites

like Twitter and Facebook

to bring awareness among

the people and to unite

them to a common goal

i.e. freedom.

Revolution

Governmental changes

Major protests

Minor protests

Other MENA states

Other states

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BRAND TRACK- VOLKSWAGEN: THE STORY OF A WINNER! -SUPRIYA MAMGAIN

Here is a brand which makes for a great story of struggle and triumph in its endeavor to sustain its name in the

market. The brand which is known for its reliability came into existence when one of the most controversial figures

in the history of mankind gave an approval to its product design. The brand is Volkswagen and the controversial

man is Adolf Hitler. The brand name which means „People‟s Car‟ in German was established by Adolf Hitler and

Ferdinand Porsche, to provide cost effective automobile to the people of Germany.

Beetle, the small car which has been used several times to save Volkswagen in the market was designed in 1931

and it was introduced in the public in 1938. The brand gained its name in the U.S. market when Beetle with the

logo of VW (Volkswagen) was featured as “Herbie the love bug” in a series of family movies by Disney. This lead

to an increase in the popularity of Volkswagen in 1964 supported by the advertisement “Think Small” which

caught the attention of consumers everywhere, by 1972 over 15 million Beetles had been sold leaving behind the

Ford Model T as the most popular design. The brand hit roadblock when in 1979 when it went out of production in

the U.S.

The brand to boost its sales switched to another tagline called „Fahrvergnugen: It is what makes a car a Volks-

wagen‟. This tag line being odd and hard to spell was quite memorable though it did not help the brand to impress

new customers as the sales remained sluggish in the U.S. It was in 1995 that Volkswagen realized that their young

middle-class customers enjoyed driving and being the driver. One of the first TV ads showed two twenty some-

thing guys cruising in Golf where the ad ended with a voiceover saying

“Introducing the German-engineered Volkswagen Golf. It fits your life. Or your

complete lack thereof. On the road of life there are passengers, and there are

drivers”, this ended with the new tagline “Volkswagen: Drivers Wanted”.

The Volkswagen brand rode smoothly with this tagline as the sales in the year

2000 reached 355,000 units. The brand positioned itself as a smart choice, that it

was not just a car but a personal statement.

Volkswagen has played with various advertisements with changes made in its

taglines and brand positioning. Some critics have pointed that the marketing of

VW suffers from lack of consistency as it moves from positioning itself as a

„people‟s car‟ to „driver‟s wanted‟. One of the controversial ads of Volkswagen

was when VW showed „real life‟ car crashes and the use of airbags to save the

life of the driver.

Beetle, Fox, Golf, Jetta, Passat, Scirocco, Tiguan, Eos and Phateon are few cars that sell under the brand VW, with

each car having variations to its model. Volkswagen has a portfolio of about 150 vehicles worldwide. Therefore,

when a brand has so many sub brands, the brand promise should be delivered with each model. This was a concern

for the Volkswagen Group as the sales began to slip during the period of 2001-2004 to over 30% due to the prob-

lem of poor quality. The warranty claims increased as quality ratings hit the floor. This is the anecdote of a brand

which failed to deliver the brand experience in its brand promise.

Audi and Skoda are both owned by the Volkswagen Group which make the task of the marketers at VW challeng-

ing as they need to avoid the over lapping of the parent brands with the subsidiaries owned by it. In India, the

Skoda brand is positioned over Volkswagen brand though in Europe it is exactly opposite. There is the fear of sales

cannibalization when a brand needs to battle with its sister brands, therefore strict orders have been given by

Volkswagen Group head of design Walter D‟Silva to not to stop on each others toes.

In India, VW has been struggling to become a successful brand even after the launch of Vento. The brand wants to

back its marketing philosophy on three core brand values which it relies on worldwide i.e. the brand needs to be

innovative, responsible and valuable at all ends. The market strategy for Volkswagen as pointed out by Lutz Kothe,

Head Marketing, Volkswagen Group, has been developed keeping in mind that the Indian customer is highly ra-

tional when it comes to factors like mileage, price, cost of ownership on the other hand he is emotional.

The brand has seen various changes over the years be it through its innovative ad campaigns or different marketing

campaigns as it tracks the changing consumer trends. The brand with 500,000 or more fans on Facebook has one of

the largest fan communities in the automotive industry. It has made use of social media with the launch of its com-

petition “App my ride”, where it gave prizes to the participants with the best developments of applications for car

infotainment systems.

Surely Volkswagen is a brand that has been on a high and a low journey, but it has continued to bring smiles to

people. It is indeed a nameplate which has delivered value and innovation!

THE IBS TIMES

Beetle, the small car

which has been used sev-

eral times to save Volks-

wagen in the market was

designed in 1931 and it

was introduced in the

public in 1938.

The brand has seen vari-

ous changes over the years

be it through its innovative

ad campaigns or different

marketing campaigns as

it tracks the changing

consumer trends.

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

Big Shots…

Google‟s Chief Executive Eric Schmidt feels that Nokia should have chosen Android operating system over Microsoft, as Nokia and Microsoft announced the formation of a broad strategic partnership. Rolls Royce India sales jumped seven times over 2009 or about 400% giving Mr.Otvos,Global Chief Executive of Rolls Royce Motor Cars, reason to beam in the success story of the car company in India. French drugmaker Sanofi-Aventis SA is ready to buy Genzyme Corp with a $20.1 billion cash offer, the deal is the second biggest in the biotech history. Mahindra Satyam plans to sue the former Satyam management and the company‟s auditor PriceWater-house for monetary damages, this will help the company to reduce its financial liability arising out of the settlement.

Company Talks… The Netherlands world cup cricket team will be sponsored by our very own Gujarat-based Dairy giant „Amul‟. Fiat‟s lower than expected sales has led Tata Motors to redraw the distribution plans for the Italian car-maker, which will now have its own independent brand showroom to showcase its products. The world‟s largest drinks maker, Coca-Cola shot its new TV advertising segment with 3-D technology but it will be airing them in 2-D as most of the Japanese homes are still not equipped with 3-D TVs. Barista will launch its loyalty programme, „Bean-O-holic‟, with its aim to acquire new customers and retain the old ones. DLF the realty giant will invest Rs.200 cr to open retail outlets of various brands across the country. Infosys announced its plan for expansion as it inaugurated its first Software Development Block at its Technopark Campus (SEZ) in Kerala‟s capital, Thiruvananthapuram. Moser Baer Forays into information and web security, this new product portfolio will include end-to-end data security solutions.

Economy Speaks… India to seek action by the G20 group of nations against tax havens as PM Manmohan Singh‟s govern-ment is under pressure to bring back the funds which are stashed abroad. Agents will lose their licenses if half the policies they sell lapse by March 2014 according to IRDA. Cotton demands remain robust as Cotton futures surged by 26% in the week ended February 3rd. The European Union considers easing import barriers for feed grains and sugar as livestock breeders and food producers in the bloc face shortages and surging prices. Turnover on commodity futures exchange looks to exceed that of stock and index futures since their in-ception seven years ago, as cumulative turnover on commixes jumps 50% against 7% in stock and index futures this financial year. Sensex jumped 473 pts with the crude oil‟s decline to 10 week low after the Egyptian Mubarak was forced out after three decades. For the first time India will export potatoes to Russia as farmers in Jalandhar get ready to export 5000 tonnes of potato to Russia, which is facing a supply shortage.

The Captains of the Ships... CEO, Sanofi-Aventis- Mr. Chris Viehbacher Chief Marketing Officer, UTI AMC-Mr. Jaideep Bhattacharya Governor, Bank of England-Mervyn King CIO, Daimler AG-Mr.Hemlut Mahler President&CEO, Adobe Systems-Mr. Shantanu Narayan Chairman, SEBI-Mr. Upendra Kumar Sinha

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FOCUS OF THE WEEK–BARGAIN BUYING AT THE MARKET! - SANYA DHAWAN

Coattail Investing - An investment strategy in which investors mimic the trades of well-known and historically

successful investors.

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After closing at an all time high of 21,004.96 on November 5, 2010 the Sensex has been dipping the past three

months. The Sensex saw the about 18,000 mark last week. The markets have been falling. But since the past

week, things seem to be looking better. And the two main factors are slowing food inflation coupled with weak

crude prices. This has greatly boosted the confidence of investors. The food inflation rate slowed to a nine-week

low of 11.05% year-on-year in the week ended Feb.5, sharply lower than the 13.07% recorded a week earlier,

according to data issued Thursday by the Ministry of Commerce and Industry. The markets were also helped by

the fact that international crude oil prices have fallen about 6% since January 31, which should also ease inflation-

ary pressure on the Indian economy. Couple it with low share prices; the conditions of the markets have become

better as now a lot of buying activity is being seen as “Bargain Buying”.

Even though the above mentioned macroeconomic factors seem to be encouraging, my estimate is that the Sensex

will be range bound at about the 18,000 mark in the coming quarter as. But, the investors sentiments are depend-

ant highly on the Budget to be announced on February 28. As we all know, where markets are concerned there is

no „best time‟ for buying, but right now is obviously a good time to start building a portfolio keeping the above

mentioned factors in mind.

Since beginning of this year, we have seen a lot of factors which have led to negative sentiments in the market.

Foreign institutional investors (FIIs) have pulled out roughly $2.7 billion while domestic institutions have

pumped in around $1.7 billion since January 2011. Other factors include ballooning inflation, rising interest rates,

pricier commodities and crumbling governance (read current telecom scandal).

But it is not all bad. The quarter 3 results are out. And, some of these stocks have corrected in line with the overall

market trend, and thus offer significantly cheaper bargains. In fact, 50% of Sensex earnings are accounted for by

sectors where earnings downgrades are extremely unlikely from here on: financials, energy and software.

The Sensex earnings estimate for 2011-12 is a little over Rs 1,200 a share. On this, markets are currently trading

under 15 times, which may not be dirt cheap but certainly does not look overpriced either. For the long-term in-

vestor, this offers a reasonable entry point, so again, buying sentiments seem to be warming up.

This week‟s data analysis is as follows-

The Bombay Stock Exchange's Sensitive Index fell 295 points, or 1.6%, to close at 18211.52. The

benchmark had gained 6% in the previous five sessions and ended the week 2.7% higher.

On the National Stock Exchange, the 50-stock S&P CNX Nifty fell 87.5 points, or 1.6%, to end at

5458.95.

Trading volume on the BSE rose to 37.12 billion rupees ($820 million) from Thursday's 33.03 billion

rupees. Gainers lagged decliners 773 to 2,085, while 122 stocks were unchanged.

Of the 30 Sensex constituents, 25 finished lower Friday.

Some of the performances of the top gainers and losers for the week are as follows-

TATA MOTORS slipped 3.9% to 1,201.95 rupees on profit-taking after adding more than 9% over the

past one week because of robust October-December earnings

Banking shares were dragged lower by ICICI Bank, which has the third-highest weight in the Sensex.

The stock closed 3.1% lower at 1,025.65 rupees while State Bank of India fell 0.9% to 2,755.3 rupees.

Even though the above

mentioned macroeconomic

factors seem to be encour-

aging, my estimate is

that the sensex will be

range bound at about the

18,000 mark in the com-

ing quarter as.

But it’s not all bad. The

quarter 3 results are out.

And, some of these stocks

have corrected in line with

the overall market trend,

and thus offer signifi-

cantly cheaper bargains.

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MARKET WATCH - SAINYAM KUMAR

Wow!! The investors, for sure, had a sound sleep last week. The markets picked up

through out the week (except for Friday). Don‟t be jealous if you are not an investor, you

can still smile because the inflation eased to 11.05% for the first week of February. With

the fiscal deficit in the economy on the rise but the inflation showing a down ward trend

(although due to the large base effect), it will be interesting to see the steps that would be

resorted to in the budget to come out on February 28th.

The return of the BSE-Bankex and BSE-Smallcap beating the market seems to have

brought the good times back to Indian markets. The corporate news of the week contin-

ued to be dominated by the 2G scam as the CBI took the bigshots, Anil Ambani

(ADAG), Sanjay Chandra (Unitech) and Prashant Ruia (Essar), into its purview. Investi-

gators are trying to find out any link between these companies and Etisalat DB telecom (earlier known as Swan Telecom). Another

projection that can affect the market trend is the sudden increase in the consumption of eggs and chicken. The increase in income

has caused a shift to this protein rich diet and by the time the farmers shift to poultry, the lag is expected to lead to a further short-

age of food items. With the wholesale price of an egg already hovering around Rs. 2, this can post a major threat to the inflation.

The Movers & Shakers of the Week

Global Cues: The whole world had a party time during the week. All the key markets of the world witnessed an up trend for the week ending

February 19. The “good” news from across the globe was factored in the markets this time. Easing of political tension in Egypt,

inflation easing in India, robust corporate earnings in China and the signs of double dip recession in US slowly fading away were

the reasons for the town being painted green.

.

SURGES %Change DOWNFALLS %Change

HINDUSTAN COPPER 29.9 JUBILANT LIFESCIENCES -11.7

GMR INFRA 28.2 SHREE RENUKA SUG-

ARS

-11

EDUCOMP SOLUTIONS 21.9 UNITECH -10.6

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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, SANYA DHAWAN, SHILPA MALHOTRA, SU-PRIYA MAMGAIN, TANIYA BANERJEE.

BUSINESS JARGONS BY– TANIYA BANERJEE

14 February 2011

15 February 2011

16 February 2011

17 February 2011

18 February 2011

Sensex 18,202.20 18,273.80 18,300.90 18,506.82 18,211.52

Nifty 5,456 5,481 5,481.7 5,546.45 5,458.95

DJIA 12,268.19 12,226.64 12,288.17 12,318.14 12,391.25

HangSeng 23,121.06 22,899.78 23,156.97 23,301.84 23,595.24

FTSE100 6,060.09 6,037.08 6,085.27 6,087.38 6,082.99

Gold ($/oz.) 1,362.00 1,373.30 1,375.60 1,384.60 -

Crude($/bl) 98.24 99 98.68 99.77 -

INR v/s USD 46.3061 45.8113 45.7552 45.7524 45.6122

INR v/s EURO 62.7577 61.8435 61.8038 61.8851 61.9382

Muriel Siebert - A pioneer for women in the world of finance. Known as "the first woman of finance", Muriel

Siebert is the president and founder of Siebert Financial Corp., a holding company which owns and operates a discount

brokerage and investment banking business. Muriel Siebert was also the first woman to own a seat on the New York

Stock Exchange, and the first woman to serve as superintendent of banks in the state of New York.

THE IBS TIMES

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* Figures were not available