ISSUE - 110 4th MARCH [FRIDAY]

EDITOR’S DESK - TANIYA BANERJEE

The Godhra riots is one of the most tragic series of riots to have ever hit India. People across In-

dia are a witness to the havoc that brought about a divide so great between the two communities

of Hindus and Muslims that it became almost impossible to bridge. And now after 9 long years

comes the much awaited verdict on the issue. Get the complete story in our Cover story section.

Just like global warming the food prices seem in no mood to cool down. And this is not just in

India but around the globe. Inflationary trends are on an all new high and food items seem to be

going more and more out of the reach of the common man. Get our writer‟s opinion on this in

our opinion forum.

This time we tracking Bisleri in our Brand Track section. Such is the power of this brand that the

name has become a synonym for any purified bottle of water. Get our writer‟s perspective on

this brand this time around.

Muammar Muhammad al-Gaddafi, an extremely well known name, thanks to the regular media

coverage that the Jasmine revolution has received. He is the famous dictator of Libya , whose

rule and its fall has been in news for so many weeks now. Therefore this man is our focus of the

week. Get the entire life story of the man in this section.

Moreover catch up on all the important news around the globe in our regular sections Fast Track

and Quick Bites. Enhance upon a lot more new terminologies with our Jargons. And last but not

the least all you avid market watch fans , its back again once more with all the recent happenings

around the globe.

Cheers,

Taniya Banerjee

Editor.

EDITOR 1 OPINION 5 FOCUS 8

COVER 2 BRAND 6 MARKET 9

FAST-TRACK 3 QUICK BITES 7

COVER STORY– THE SAGA OF GODHRA FINALY ENDS! - TANIYA BANERJEE Well the wait seems to be finally over! After 9 long years the perpetrators of the Godhra carnage

have been given what was long due to them..the required sentence! The kin and kith of all those

59 who were killed in the doomed S6 coach of the Sabarmati Express can at last sigh in relief.

And yes the sigh of relief is on both the ends. On one hand the criminals or victims should I call

them? Who languished in jail for 9 long years have been acquitted and on the other hand the sup-

posed actual people who sowed the seeds of the worst communal riots to have ever hit our coun-

try have been sentenced to death. But then the question that arises is what about the 63 people

who were only now acquitted and rotted in jail for 9 long years? Can they ever be compensated

for the loss that they suffered in terms of respect in the society, a decade for that matter? No

amount of money can do that I am sure. But another thing that is bothering is that; are the 63

people acquitted of all charges really innocent? Take for example the case of Maulana Hussain

Umarji and Mohammad Hussain Kalota. These two supposed

key conspirators were let off for want of evidence!

This entire episode is multi layered. It is not just the people who

were on board on that ill fated train but also about 1200 people

who died due to a series of events egged on by the carnage in the

state of Gujarat that suffered. Who can ever forget the after ef-

fects that it had on the entire nation as well (Hindus and Muslims

ready to take each other‟s lives). Post the Sabarmati train burn-

ing episode the entire state got engulfed in retaliatory riots which

resulted in 790 Muslims and 254 Hindus dead, 223 people re-

portedly went missing, 523 places of worship were destroyed,

61000 Muslims and 10000 Hindus fled their homes.

Exactly nine years ago on February 27, 2002- at about 8am the Sabarmati Express train ferrying

hundreds of kar sevaks from Ayodhya came under attack at the Godhra railway station with Nar-

endra Modi quick to declare it as a conspiracy against the Hindu pilgrims. Post the incident the

case has seen many twists and turns as well. Till the time the first charge sheet was filed by the

police in may 2002 against 54 accused, there was no mention of any conspiracy but the entire

incident was seen as a spontaneous riot situation. After this a special investigation team headed

by a senior IPS officer Rakesh Asthana was set up and it was during this time that the conspiracy

theory emerged and the supposed masterminds of this conspiracy were Maulvi Umaarji and

Razak Kurkur. Though Umarji was acquitted Kurkur was convicted.

These kinds of events represent a very pitiful state of the Indian judiciary system. First of all

they are inept at handling situations where communal harmony comes at stake secondly they

cannot come to any conclusive decision as to who is the culprit and who is the victim. For e.g. in

this case itself though several committees were set up to conclude the episode but each time a

hint of political blame game could traced in all of these. Shah Nanavati commission to Banerjee

committee none could bring conclusive closure to this saga which stretched on for 9 years. Be it

the Bhopal gas tragedy or the 26/11 terror attacks the India judiciary system has a lot of loop-

holes that need to be addressed at the earliest else these kind of situation would become a norm

in the society where no one would even bother to bat an eyelid on their occurrence as it would be

daily routine for us a norm rather!

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After 9 long years the

perpetrators of the Godhra

carnage have been given

what was long due to

them..the required sen-

tence!

These kinds of events

represent a very pitiful

state of the Indian judi-

ciary system.

FAST-TRACK NEWS - SHILPA MALHOTRA Indian markets feel the Libyan heat, bourses slide down The ongoing political turmoil in the Middle East is causing ripples in the financial world, with investors rushing to safe

havens, causing the stock markets to slide. The crisis in Libya has caused sharp hike in the crude oil prices. Brent crude hit

a 30-month high of $120 per barrel causing the sensex to dip by 546 points closing at a seven month low of 17632. A rise

in crude oil prices will directly affect inflation and increase the budget deficit which continues to be a big concern for the

UPA government given the fact that India is the fourth largest oil importer in the world.

India to sign pact with EU After inking free trade agreements with Malaysia and Japan recently, negotiations for a proposed comprehensive market

opening pact with the 27-nation European Union is also on the verge of getting signed soon. India and EU are negotiating

the pact since 2007 but are not able to reach a consensus on the inclusion of intellectual property rights (IPR) and social

issues like environment and labor standards in the proposed Bilateral Investment and Trade Agreement (BITA). BITA will

provide for liberalizing trade in services that face hurdles like visa problems in EU member countries like Germany and

Britain.

Germany, Mauritius to aid India in curbing illicit wealth Germany assured finance minister Pranab Mukherjee that it would pass information about Indian citizens holding secret

bank accounts, revise double taxation avoidance agreement (DTAA) and incorporate clauses to facilitate exchange of in-

formation between the law enforcement agencies of the two nations. Meanwhile, Mauritius has provided the Indian au-

thorities with banking information and other financial details on more than 90 cases of tax evasion and financial malprac-

tice over the past three years.

New tax code to hit tax saving plans The direct tax code that is likely to come into effect from April 2012 is expected to hit some of the tax saving plans that

were earlier eligible for deductions. Equity-linked saving schemes (ELSS), unit-linked insurance plans (Ulips) and the Na-

tional Pension Scheme (NPS) will be impacted by the DTC. Ulips, traditional insurance plans, ELSS and their reinvested

dividends would not qualify for tax benefits beginning April 2012. Also, it is proposed that the tax deduction limit will be

halved from the current Rs 100,000 a year under the DTC.

RBI allows foreign funds in default swaps The Reserve Bank of India (RBI) is in favor of allowing foreign funds in the market when credit default swaps (CDS) for

corporate bonds are launched, in a move aimed at developing the Indian corporate bond market. In draft guidelines the RBI

also limited foreign institutional investors‟ (FIIs) role only to hedge their credit risk and has suggested them to be included

as „users‟. This means that FIIs can buy credit protection to only hedge their credit risks.

Rail stocks derailed by the budget announcement Railway-linked stocks witnessed a steep fall of 14% after the announcement of the railway budget on Friday. The budget

failed to lift sentiments, as concerns over land acquisition and financial challenges plaguing power plants and wagon pro-

jects persisted. Shares of Kalindi Rail Nirman and Titagarh Wagons fell by 13.7 and 13.1% respectively. Kernex Micro-

systems that is into the business of developing railway safety and signal systems fell by 5% during the day, while BEML

fell by 2.9%. While, railways minister Mamata Banerjee announced several projects, there are concerns on the delivery

aspect.

Power sector needs bold reforms With the power sector struggling to achieve the targets set in the XI Plan, the Economic Survey called for bold reforms in

the power sector and asked the states to reduce subsidies and cross-subsidies on electricity and hike tariffs. Stating that

India had one of the highest transmission and distribution losses in the world at 35 per cent, the Survey, said India cur-

rently has one of the lowest and most uneconomical average electricity tariffs in the world - 8 cents per unit at the retail

level, compared to about 12-15 cents in countries endowed with more coal or gas and 19-10 cents per unit elsewhere.

AAOIFI – A not-for-profit organization that was established to maintain and promote Shariah standards for Islamic

financial institutions, participants and the overall industry. The Accounting and Auditing Organization for Islamic Finan-

cial Institutions (AAOIFI) was created on February 26, 1990 to ensure that participants conform to the regulations set out

in Islamic finance

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ICICI, HDFC hike lending rates by 50 basis points Country's two leading private sector lenders ICICI Bank and HDFC Bank increased their lending rates by up to 50 basis

points (bps), making home, auto and commercial loans dearer. ICICI Bank also increased deposit rates by up to 50 bps

across various maturities. For existing customers, it increased the benchmark prime lending rate by a similar percentage.

HDFC Bank raised base rate by 45 basis points to 8.20%. While higher deposit rates would provide better returns to sav-

ers, rise in lending rates would increase the EMIs for auto and home loan borrowers.

BP and RIL enter into a transformational agreement Reliance Industries Limited and BP announced a historic partnership between the two companies. The partnership across

the full value chain comprises BP taking a 30 per cent stake in 23 oil and gas production sharing contracts that Reliance

operates in India, including KG D6 block, and the formation of a 50:50 joint venture between the two companies for the

sourcing and marketing of gas in India. The joint venture will also endeavor to accelerate the creation of infrastructure

for receiving, transporting and marketing of natural gas in India.

Anand Mahindra to quit AI board Mahindra and Mahindra (M&M) vice-chairman and MD Anand Mahindra has offered to resign from the state-owned

Air India board as an independent director citing conflict of interest almost a year after he was assigned the job to im-

prove the operational and financial health of the company. Mahindra has said in his letter to the civil aviation minister

Vayalar Ravi that the new business opportunities pose a potential conflict of interest in its aerospace business Mahindra

Engineering Services.

Nokia launches ovi store with Reliance Communications Nokia and Reliance Communications announced first of its kind partnership by launching Ovi Store, Nokia's mobile

application store. Reliance Communications will be the first service provider to offer integrated operator billing for their

consumers in India enabling access to a host of paid content on the Ovi Store. The Ovi Store is a one-stop-shop for mo-

bile content to help consumers personalize their Nokia devices. It supports the widest range of content and file types

including applications, games, videos, podcasts, productivity tools, web and location-based services and much more.

China all set to give a boost to international relations Following a year marked by a number of diplomatic strains with its neighbors, China will look to boost its public diplo-

macy initiatives in coming months to address concerns about its rise. These would include sending out a number of non-

government delegations to have “less official and more lively” engagement with foreign countries, as well as boosting

investment in state-run television and radio channels to push their broadcasts overseas.

Australia beats New Zealand while India all set to play England After beating Bangladesh by 87 runs in Mirpur, India will be playing their second match against England in Bangalore.

With Bangladesh done and dusted, the Indian team is eyeing their next match in the World Cup against England. The

players have been putting in the hard yards in Bangalore, preparing themselves for the big bash. Meanwhile Openers

Shane Watson and Brad Haddin hit half-centuries to take World Cup holder Australia to a resounding seven-wicket win

over New Zealand.

Dubai: Novak Djokovic defeats Michael Llodra Holder Novak Djokovic returned to tennis action three weeks after his Australian Open title with an inspired 6-3, 6-3

win over Frenchman Michael Llodra at the Dubai Championships. The second-seeded Serb Djokovic, winner of the last

two editions at the Aviation club, was joined in the second round by Russia's Nikolay Davydenko, who defeated Spain's

Guillermo Garcia-Lopez 6-2, 6-0 with six breaks of serve. The former top-five man Davydenko is in a comeback from a

39th ranking.

John Bogle- The founder of The Vanguard Group, and a major figure in the index investing community. John

Bogle was the first person to offer an index fund to retail customers. Bogle's flagship Vanguard 500 Fund became the

world‟s largest mutual fund by assets in 2002.

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OPINION FORUM– FOOD FOR THOUGHT - NITIN ARORA

One of the side effects (I would call it a negative side effect) of the rampant commodity

speculation that is fueled by the economic policies of developed countries, is that in

countries where people spend the majority of their money on food, the resultant food in-

flation does serious harm. Obviously this is not an issue to the hedge fund managers and

Goldman Sachs traders who cause this. It works for them!!!

So as we roll into 2011, a new year that follows a year where central bankers from

around the world, from India and China to the US, told us that there was no need to

worry about inflation and that the only reason there were some higher food prices was

because it rained too much in early 2010. How far should they ignore food price infla-

tion? Rising food prices once again poses a tricky question in front of the central bank.

The problem is more severe in emerging markets where consumption basket weights for

food are two or three times larger than in rich nations. The uneven recovery in advanced

countries is hiding an issue that, while off the agenda in the

last G20 meeting back in November, is arguably no less ur-

gent for the global economy – namely, the rise in food

prices…

Global average food prices are now back to their pre-crisis

peak, despite a collapse in the wake of the 2008/09 financial

crisis, coupled with the most recent round of weather setbacks

and slashes in key crop forecasts worldwide, there is little

hope that such inflationary pressures will abate. If anything,

the US and EU economic recovery will exacerbate them.

It is real, and now prices are higher than they have ever been before. So why is this hap-

pening? Well it has something to do with rising commodity prices globally, partially

brought on by those commodities being priced in dollars and the surging demand from

emerging market that are rapidly demanding more food. Also of concern is a series of

weak harvests across the world, the recent flood crisis in Australia and the fires in Russia

(food inflation is a problem in Russia in 2011 especially with another year of expected

drought and increased volcanic activity) included. And yes we cannot forget the surging

oil prices too.

The CRB/Reuters U.S. Spot Raw Industrials index, a gauge of 22 commodities including

butter and soybean oil, rose to an all- time high on Oct 25. Meat prices advanced to a two

decade high in August, according to a UN index. Palm oil traded on the Malaysia Deriva-

tives Exchange may rise 18 % to 3,600 ringgit ($1,161) a metric ton by March.

However, opinions are sharply divided over whether these prices signal a world food cri-

sis like the one in 2008 that helped cause riots in 25 countries, or simply reflect volatility

in global commodity markets as countries claw their way through recession.

The food crisis of 2007-2008 was not a one-off event. It was a warning. And today, we

see again how quickly and easily we can get to another food crisis.

Macaroni Defence– An approach taken by a company that does not want to be taken over. The company issues a

large number of bonds with the condition they must be redeemed at a high price if the company is taken over.

THE IBS TIMES

The problem is more se-

vere in emerging markets

where consumption basket

weights for food are two

or three times larger than

in rich nations.

Palm oil traded on the

Malaysia Derivatives

Exchange may rise 18

percent to 3,600 ringgit

($1,161) a metric ton by

March.

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BRAND TRACK- BISLERI: THE BRAND OF WATER -SANDEEP ASRANI

Water – The Elixir of Life, the basic chemical of any living organism. Ever imagined what life

would be without it. For those who did not know, two thirds of our body is made up of water.

Well last week I was travelling to interior Gujrat and was thirsty, so I stopped at a store on the

highway and the immediate word that I used to ask the shop vendor for water was “Bhaiya

Bisleri Hai ?”, though I meant a bottle of mineral or purified water I used the word Bisleri and

quite to my amusement I was given a bottle of water which was not a Bisleri. This is the power

of this brand of bottled water which has become an anecdote.

This concept of selling something like water which was available to all at no cost was brought

in India by an Italian Ignor Felice Bisleri. It was introduced in Mumbai and sold in glass bot-

tles. Later it was bought over by Parle in 1969 and called Bisleri. Bisleri that is sold in PET bot-

tles was initially sold in glass bottles and later in PVC. This company was headed by Mr.

Ramesh J. Chauhan in 1995 and ever since it has seen a multi fold growth. At that point of time

there was no other brand of bottled water that was available on a PAN India basis and hence it

had the first mover advantage, but with the advantage came a lot of other challenges too.

At that point of time it was not a product selling. It was more of a concept selling of bottled

mineral water, something like water that was available for free everywhere. It was a challenge

to educate the masses about the importance of hygienic

water. There was basically no market and hence a mar-

ket had to be created. Another hurdle was the product

itself, as it was colorless, tasteless and odorless, hence it

was very difficult to advertise it too. This was a concept

that was easily understood by foreigners and NRI‟s and

hence it was assumed that this was a product that was

not for the masses. To make this a product for the

masses the packaging was made transparent by shifting

from PVC to PET bottles. The cost was brought down

and various convenient and portable packages were introduced. The dealer margins were also a

concern that was addressed to and since then only sky was the limit. Bisleri initially followed

the distribution model of how soft drinks were distributed, later on in order to expand their

reach they made it available at chemists, stationery outlets, small vendors, etc other than the

retail outlets and this led to the number of outlets increasing from 50,00 to 2,00,000 and the fig-

ures still growing. All these above marketing and distribution activities made Bisleri a product

for the common man. Today the need for purified water is realized by people allover and hence

it is needed in different segments, especially in a country like India where there is a scarcity of

hygienic water. Bisleri has understood these needs and hence introduced packages in various

shapes and sizes. Another reason for the enhanced visibility of the product is because of its dis-

posable bottles actually being reused extensively over and over again. To improve on its quality

that Bisleri has always vouched for, it introduced the Safety Seal. The home pack was made

more user-friendly by introducing pouring spouts and jars with dispensers

Bisleri, is entering new segments and is continuously working on its research and development.

The company plans to soon launch a face spray. It is being developed at an Aurangabad facility

and will be tested soon. The face spray will work as a deodorant does for the body; only, it will

be fragrance-free. It is to be made available in packs of 100g and 200g, at Rs50 and Rs100, re-

spectively. Composed of Bisleri water and nitrogen, the spray hydrates the skin and leaves you

feeling refreshed. Bisleri‟s research and development division is also developing flavored water

in lemon, ginger and rose flavors, to be priced at Rs20-25 per bottle. The company plans to

launch the flavored water in the market by March 2011. Recently, it said it would set up eight

new production units in North India by March 2011 with an investment of Rs100 crore. The

bottled drinking water market in India is around Rs2,000 crore annually.

THE IBS TIMES

Bisleri has understood

these needs and hence

introduced packages in

various shapes and sizes.

This concept of selling

something like water which

was available to all at no

cost was brought in India

by an Italian Ignor Fe-

lice Bisleri.

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

Big Shots…

BP the global oil player will buy 30% stake in Reliance Industries (RIL) oil & gas, for $7.2 billion.

Girish Paranjpe and Suresh Vaswani the ex-Wipro CEOs have been offered severance packages

worth Rs. 7 cr.

Dunkin Donuts the only threat to Starbucks in U.S. plans to enter India through a franchisee deal

with Jubilant Foodworks.

The telecom department plans to auction airwaves in 700 Mhz, which is considered to be the most

efficient and cost effective frequency delivering 1/3 roll out cost.

Due to conflicting interests Anand Mahindra offered to resign as an independent director from the

national carrier Air India.

Company Talks… L&T Infotech is in talks with EXL owners to sell the stakes of EXL in the Nasdaq listed company.

Indian low cost drug makers will get an opportunity to tap a lucrative segment in the U.S., the

world‟s largest drug market, as the U.S. government decides to cut the data exclusivity period for

patented biotech medicines.

For Ovi store content Nokia partners with RCom , as customers can exclusively access the plethora

of „paid for‟ content on the Ovi-Store.

Ranbaxy the country‟s largest drug maker reported losses in the Q4, 2011 as it made a loss of Rs.

97.5 crore.

Reckitt plans to absorb the top executives of Paras pharmaceuticals, as the household brand plans to

make the Baddi mother plant for its various products.

Economy Speaks… The sugar output of the country rose by over 16% to 13.4 million tones till February , this positive

growth has kept retail prices under control.

Eight more CIL projects got the green signal from the ministry of Environment and Forests, this an-

nouncement comes after these projects being stranded for about a year.

ONGC Videsh Managing Director Ranbir Singh Butola got the clearance from the Oil Ministry to

be appointed as the Chariman of Indian Oil Corp. (IOC).

According to an economic survey 2010-2011 which measures the economic power of the govern-

ment, it shows India at number five in 2009 behind U.S., China, Japan and Germany.

Rs. 2500 crore Leather Industry faced a Rs. 300 crore fund crunch due to a dealy in the VAT re-

funds as promised by the State Government of West Bengal.

The sensex fell to 546 pts as the global crude oil prices soared above $117 a barrel.

The Captains of the Ships…

Chief Economic Advisor- Kaushik Basu

Chairman & MD, Bank of Baroda- Mr. MD Mallya

CMD, Indian Overseas Bank-Mr. M Narendra

Chairman, Jubilant- Mr. Shyam Bhartia

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FOCUS OF THE WEEK– ARAB WORLD’S CHE GUEVARA - ADHIRAJ SOOD

Enhanced Index Fund- A mutual fund that tracks a stock market index, but with certain modifications in place to allow

for more equivalent position sizes, the exclusion of certain securities, or the use of leverage, all with the goal of beating the return

of the tracking index. These types of funds are actively managed, and will often use the S&P 500 Index as the tracking index.

THE IBS TIMES

It has been few weeks now that I have been writing about Africa, ranging from cover story to opinion

to focus. My fellow writers are tired of reading so much about Africa, but then the tale is incomplete

without the man I am going to focus on today. At this moment of time he is the longest serving of all

current non-royal national leaders and he is fifth in the list of longest ruling non-royal leaders of all

time and soon to become the fourth. I am talking about Muammar Muhammad al-Gaddafi also re-

ferred by many as Colonel Gaddafi. He has been the leader of Libya since a coup in 1969.

Born in a Bedouin tent in the desert near Sirt on 7th June‟ 1942 to stock herders with holding in the Hun

Oasis as a boy he attended the Muslim elementary school. It was during this time that there were major

events happening across the Arab world, which like many individuals influenced him to in a huge way.

In 1948 the Palestinians defeated the Arab forces; Nasser rose to power in Egypt in 1952. Nasser‟s

preaching had a huge impact on him. He completed his schooling under a private tutor and paid a lot of

attention to history.

Like many others during that period, just for the intense hatred against Israel and the only way to pur-

sue higher education he joined the Libyan military academy. He was than selected for higher training

and was sent to Royal Military Academy Sandhurst, England. He then went on to do further training in

the Hellenic Military Academy in Athens, Greece and again in United Kingdom. As a cadet, tired of

shame and frustration which was felt by most of the Libyan officers because of the swift and humiliat-

ing defeat of the Arab armies on three fronts in 1967 fueled his determina-

tion to contribute to Arab unity, dismantling the Libyan monarchy. Thus, he

was related to Free Officers Movement since he was a cadet.

On 1st September, 1969 at the young age of 27, he was the leader of a small

group of junior military officers who staged a bloodless coup d'état against

King Idris while he was on a medical treatment in Turkey. The Crown Prince

Sayyid Hasan ar-Rida as-Sanussi (he is the nephew of King Idris) was also

put under house arrest. The monarchy was overthrown and Libyan Arab Re-

public was formed. Just after Gaddafi came into power, there was a plan to

overthrow him by David Stirling, but it was waived off at the last moment

because United States government thought he was an anti-Marxist, thus needed to be protected. But, he

proved United States incorrect and then began the legacy of State-sponsored terrorism.

Gaddafi was against imperialism, so his party started funding any group with weapons and money if

they claimed that they were fighting imperialism. In 1972 he promoted himself to the rank of „Colonel‟

instead of „General‟ because in his own words Libya is ruled by people, so he did not need a superior

rank. By 1973 on Prophet Muhammad‟s birthday he delivered his famous “Five-Point Address” and

started a new system which he called Islamic Socialism. He even published three volumes of Green

Book which outlined his political philosophy and reinforced his ideals of a socialist-Islamic state. He

tried uniting the Arab states- Libya, Egypt and Syria into one-but failed. Went on war against Chad just

because the president of Chad was a black African and a Christian. Went to war against Egypt also but

had to retreat. He carried out 25 assassinations in a period of 7 years just because the people were ex-

pressing their views against Gaddafi. He financed the Black September Movement which perpetrated

Munich massacre at the Summer Olympics in 1972. He was also found talking about assassinating the

new American president Ronald Regan. In the period of 41 years Gaddafi has been responsible for fi-

nancing various terrorist activities and for supporting terrorist groups like Red Army Faction, Red Bri-

gade, Irish Republican Army and Japanese Red Army etc.

The Jasmine revolution has brought an uprising in Libya too, the point is that self proclaimed „King of

Kings of Arab world‟ or Ronald Regan‟s proclaimed „Mad Dog of Middle East‟ is going to have a

tough time ahead, as two autocrats have already fallen in this earth mover. Though Mr. Gaddafi has

himself said, he would fight to death to save his thrown and shed blood if there is a foreign interven-

tion.

Like many others during

that period, just for the

intense hatred against

Israel and the only way

to pursue higher education

he joined the Libyan

military academy.

He even published three

volumes of Green Book

which outlined his politi-

cal philosophy and rein-

forced his ideals of a

socialist-Islamic state.

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MARKET WATCH - SAINYAM KUMAR

The selling pressures resumed in Indian markets as the last week‟s trend was reversed and the

markets fell continuously till Thursday after giving some respite by picking up marginally on the

last day of the week ending February 25th 2011. The food inflation that had come down to

11.05% during the first week of February rose to 11.49% for the week ending February 12th

2011. In spite of negative signals being reflected in the market, the economic review released by

the Government has predicted the next year‟s growth to reach 9.25%.

Shifting the focus to the indices, all of them ended in red except for BSE-Oil & Gas that rose on

the back of RIL entering into a partnership with BP for the latter getting 30% stake in 23 oil &

gas production sharing contracts of the former. BSE-Auto shed majorly due to the prediction that

the excise duty on the auto will be raised from 10% to 12% during the coming budget.

Talking about the corporate news, FMCG companies are sending the signals that they might lead the next stock rally as Emami,

Dabur, Marico and Godrej Consumer Products all seem to be scouting the domestic and international markets for acquisitions.

Emami has already bought 85% stake in International Consumer Products Corporation and looking for further expansion.

The scrip of ONGC surged on the back of the news that independent audit has shown that the company‟s 64 oil fields have re-

serves worth 1.06 billion tones. Such a high level of reserves is a healthy sign as the crude oil prices are becoming more and more

volatile each day.

The Movers & Shakers of the Week

The global markets are clearly showing the signs of worries as the political tension in West Asia seem to be expanding from one

nation to another. The disturbance in Libya led to the crude oil prices crossing $100/barrel last week. Moreover, the decline in new

home sales and factory goods in US hints that the economy is still facing headwinds. Such uncertainty led to all the key markets of

the world ending in red with China recording the minimum losses of 0.7% while Germany lost more than 3% during the week.

SURGES %Change DOWNFALLS %Change

NALCO 7.3 MPHASIS LTD -35

CONTAINER CORP 4.3 JET AIRWAYS -17.9

REI AGRO LTD 3.8 PUNJ LLYOD -17.6

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, NITIN ARORA, SAINYAM KUMAR, SANDEEP ASRANI, SANYA DHAWAN, SHILPA MALHOTRA, SUPRIYA MAMGAIN, TANIYA BANERJEE.

BUSINESS JARGONS BY– TANIYA BANERJEE

21 February 2011

22 February 2011

23 February 2011

24 February 2011

25 February 2011

Sensex 18,438.31 18,296.16 18,178.33 17,632.41 17,700.91

Nifty 5,518.60 5,469.20 5,437.35 5,262.70 5,303.55

DJIA * 12,212.79 12,105.78 12,068.5 12,130.45

HangSeng 23,485.42 22,990.81 22,906.90 22,601.04 23,012.37

FTSE100 6,014.80 5,996.76 5,923.53 5,919.98 6,001.20

Gold ($/oz.) 1,406.60 1,399.00 1,411.70 1,402.10 1,409.60

Crude($/bl) 100.59 104.01 105.88 111.01 108.31

INR v/s USD 45.8150 45.3824 45.4295 45.4650 45.6546

INR v/s EURO 62.7725 62.0886 61.9349 62.3530 62.8824

Dividend drag- A disadvantage of the dividend structure of unit trust exchange-traded funds (ETFs) that results from SEC

rules that stipulate that passively managed ETFs cannot reinvest dividends back into the portfolio. ETFs must instead accumulate

the dividends in cash and pay them to holders at periodic intervals. During periods of rising markets, the dividends would be better

served being reinvested in securities rather than held in cash. This leads the ETF to lag a portfolio that would be able to reinvest.

THE IBS TIMES

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* Figures were not available