ISSUE - 116 6th MAY [FRIDAY]

EDITOR’S DESK - TANIYA BANERJEE

An eventful week can be term that we can use for the week that just went by! Starting from the

death of an eminent personality to the much hyped royal marriage of Prince William and Kate

Middleton, this week was a mixture of both sorrow and jubilation!

The death of Sri Satya Sai baba came as a huge shock to his followers world over. Not only did

he make a difference in the lives of several destitute but was also an inspiration for people

around the globe. We have thus tried to pay a tribute to him through our Cover Story this week.

While the rest of the Asia seems to be charting new records in terms of growth, one nation seems

to be sadly lagging behind. Political turmoil, terrorism, deep rooted corruption all have been

contributing consistently in slowly converting Pakistan into a failed state. Will this nation be

able to pull up its socks and come out of this current situation? Get the answer to such questions

in our Opinion forum this week.

In the section of Brand Track this week, we are tracking one of the most favored and famous

brands in innerwear ‗Jockey‘. Read this column to gain more insights on how this brand came on

to acquiring this prized status on this day.

Our Focus of the Week is Léo Apotheker. This man has been appointed as the new CEO of HP. After

a much successful preceder in Mark Hurd only time will tell what this man has up his sleeves to make

this company reach new heights!

Moreover we have our regulars Fast-Track, Quick Bites and Market Watch yet again. We hope

all of you have as much fun as we had putting it together.

Cheers,

Taniya Banerjee

Editor.

EDITOR 1 OPINION 5 FOCUS 8

COVER 2 BRAND 6 MARKET 9

FAST-TRACK 3 QUICK BITES 7

COVER STORY– SATYA SAI BABA: THE GOD IS NO MORE - RAJAT MONGA What a week it has been. If you have been watching the news, you will understand what I am talking about. Impor-

tant news enough to come out with a special issue or to write cover story for the next few weeks have occurred in

the week gone by. Let me elaborate on it. The week started with the sad news of the death of Satya Sai Baba, con-

sidered to be a living god by his followers. As he was laid to rest, the Indian politics and its politicians where back

in limelight-this time over the draft report of Public Accounts Committee (PAC) headed by veteran BJP leader

Murli Manohar Joshi. If that was not enough, the 1995 Purulia Arms drop case made headlines with the main ac-

cused-Kim Davey making some very damaging allegations on National Television.Wait! its not over-the news of

India rejecting American planes for final round of its MMRC (Medium Multi Role Combat) Aircraft deal made

headlines with the US ambassador to India, resigning as a consequence. And finally the week ended on a happy note

with the much awaited royal wedding of Prince Williams with a commoner Kate Middleton; a ceremony watched

by over two billion people worldwide. With so much happening in one week, I had a tough job choosing the topic

for this cover story. I decided to make death of Satya Sai Baba as the cover story after a lot of thought.

Satya Sai Baba- a living god, the reincarnation of Sai Baba of Shirdi, a man who cured hundreds of people. These

and many more prefixes have been used to describe perhaps the most powerful godman India has seen. He passed

away on April 24th due to cardio-respiratory failure at a super specialty hospital his trust runs at Puttaparthy. India

had and has plenty of god men since the time of Indira Gandhi who used to consult Chandraswamy . But no other

comes close to the influence and clout he had. Satya Sai Baba‘s influence had no barriers as his millions of follow-

ers spanned the globe. Top-ranking politicians including prime ministers, Union minis-

ters, governors, chief ministers, filmstars, sportspersons, industrialists and virtually the

'who's who' of the country rank among the high-profile devotees of the Baba.

Born into an ordinary family as Satyanarayana Raju in the sleepy Puttaparthi village in

the dry Anantapur district of Andhra Pradesh, on November 23, 1926, he later became

Satya Sai Baba, the reincarnation of the saintly Sai Baba of Shirdi. As a child he was

described as unusually talented and charitable. It was on October 20, 1940 at the age of

14 that Satyanarayana Raju declared himself as the reincarnation of Sai Baba of Shirdi.

Satya Sai Baba invariably referred to Shirdi Sai Baba as "my previous body" whenever

he spoke about him.

And there was no looking back after that, his fame grew so did his empire. By the time

he died, the Satya Sai Trust has assets which are valued at Rs. 40,000 crore. Formed in

1972, it manages a university, specialty hospital, religious museum, planetarium, railway station, airport and sports

stadium in Puttaparthi, administers water supply projects in drought-prone districts of Andhra Pradesh and Tamil

Nadu, runs educational institutions and conducts health clinics across the country.

Their have been a lot of controversies involving the so called Bhagwan. He was reviled by critics and rationalists

who campaigned against him with magic shows. Frequently, reports alleging scandals in his ashram appeared. On

June 6, 1993, an attempt was allegedly made on his life by his close aides. Six inmates of Prasanthi Nilayam were

killed right inside the Baba's bedroom. All of them were part of the "inner circle" of Baba. His personal assistant

Radha Krishna Menon was among those killed in the incident. The facts of the case still remain a mystery.

The functioning of his Sri Satya Sai Central Trust which has been built through donations of millions of devotees

and is core of all philanthropic activities under his name has also been under scrutiny. There have been allegations

of lack in transparency of the working of the trust. It got a special permission from the government in 1980 exempt-

ing it from any form of audits. The trust is also exempted from paying any tax on the donations which run into mil-

lions of rupees every year. All these allegations were dismissed by his followers as a vilification by his detractors.

With his death, questions have cropped up as to who will manage the Central Trust as Baba had not named his suc-

cessor to head the trust. Baba‘s cousin, Rathnakar, his trusted aide, Satyajit and former Chief Justice of India, PN

Bhagwati are considered for the top post of the trust. The next few weeks will be crucial as the new chairman of the

trust is selected and the way ahead for his charities is decided.

God or no god, Satya Sai Baba, was a guiding light for his devotees and showed them the path of righteous living.

Satya Sai Baba had an enigma around him and he will be missed by his followers throughout the world. May his

soul rest in peace.

THE IBS TIMES

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Satya Sai Baba- a

living god, the reincarna-

tion of Sai Baba of

Shirdi, a man who cured

hundreds of people.

The functioning of his Sri

Satya Sai Central Trust

which has been built

through donations of mil-

lions of devotees and is

core of all philanthropic

activities under his name

has also been under scru-

tiny.

FAST-TRACK NEWS - TANIYA BANERJEE Pilots' strike affects Thiruvanathapuram domestic flights The strike by a section of pilots of Air India owing allegiance to the Indian Commercial Pilots Association has affected

some domestic flight operations of the national carrier to and from Thiruvananthapuram international airport on Wednes-

day. Airline sources said the flights to other sectors from Thiruvananthapuram will be operated as per schedule. The pilots

belonging to the erstwhile Indian are demanding pay parity to that of Air India pilots. Already, the Air India management

had de recognized the Indian Commercial Pilots' Association (ICPA) and had declared the strike that began on Monday

midnight as illegal.

DMK to face 2G spectrum issue legally Expressing surprise over the inclusion of the party‘s Rajya Sabha MP M.K. Kanimozhi in the supplementary charge sheet

in the 2G spectrum allocation case, the Dravida Munnetra Kazhagam (DMK)‘s high level committee declared that it

would face the situation legally. A resolution passed at its 90-minute long meeting at the party headquarters, chaired by its

president and Tamil Nadu Chief Minister M. Karunanidhi, alleged that ever since the Comptroller and Auditor General of

India had observed that the exchequer had suffered a loss to the tune of several crores of rupees in the allocation of 2G

spectrum, there had been attempts by a dominant section to use the issue as a ―political chess board‖.

DMK condoles Sathya Sai Baba’s death The DMK condoled the death of spiritual guru Sai Baba, and hailed him as a ‗great spiritualist,‘besides recalling his contri-

butions to solve the drinking water problems of Chennai.Recalling the Satya Sai Trust‘s efforts to address drinking water

issues of Chennai, it said the trust had spent Rs 200 crore and brought water from the Krishna River in Andhra Pradesh,on

the request of Chief Minister M Karunanidhi.―The High Level Committee regrets his demise and expresses its condolences

to all those who are mourning his death,‖ he said.

NATO initiatives not seen decisive in Libya war The Western bombing campaign in Libya is now in its sixth week but despite a series of eye-catching NATO initiatives

there is little sign of a decisive military shift that will bring a quick end to the war. NATO, which took over the air cam-

paign from a coalition led by France, Britain and the United States a month ago, can point to some successes in protecting

civilian populations in eastern Libya from attack including in Benghazi and Ajdabiyah. And there are signs of significant

divisions within Muammar.

Japan says Fukushima 'different from Chernobyl' Japan said on Tuesday, the 25th anniversary of the Chernobyl nuclear disaster, that its six-week-old Fukushima nuclear

crisis was "different in nature" from the events in Ukraine. Japan has ranked the tsunami-triggered disaster at Fukushima

as a "major accident" with the maximum severity ranking of seven on an international scale, the same as Chernobyl, while

stressing that it is less serious. "Unfortunately the amount of radioactive material leaked was about one-tenth (of Cherno-

byl), but at least we were able to avoid explosions of the reactors," he said on the day the world marked a quarter of a cen-

tury since Chernobyl.

Centre approves Rs 7000 crore project to clean Ganga The Cabinet Committee on Economic Affairs (CCEA) on Thursday approved the project for the cleaning of River Ganga

to be implemented by the National Ganga River Basin Authority (NGRBA) at an estimated cost of Rs.7000 crore. The

share of the Government of India will be Rs 5100 crore and that of the State Governments of Uttarakhand, Uttar Pradesh,

Bihar, Jharkhand and West Bengal will be Rs 1900 crore. The World Bank has agreed in-principle to provide a loan assis-

tance of one billion dollars to the Government of India for the NGRBA project, which will form part of the central share of

the project. The duration of the project will be eight years.

RSI M ean– A technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to

determine overbought and oversold conditions of an asset. It is calculated using the following formula: RSI = 100 - 100/(1 + RS*)

*Where RS = Average of x days' up closes / Average of x days' down closes.

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India better placed than China in regulating credit flow: Fitch Fitch Ratings has said India is better placed compared to China in regulating the flow of bank credit. The rating agency said India's regulatory environment has remained focused on controlling credit growth while China's growth has largely been funded by bank credit. The unbridled flow of bank credit in China may also raise risks of financial instability. Fitch has earlier in the month downgraded the outlook on China's local currency issuer default rating to negative from stable, "due to an increased risks to macro-financial stability arising from the rapid growth in bank credit amid rising real estate prices and inflation."

‗RBI should have primacy on issue of financial stability’ The role of the Reserve Bank of India was central to the issue of financial stability and this could be jeopardised with the formation of a new agency — the Financial Stability Development Council, or FSDC, according to former RBI governor Y Venugopal Reddy. Reddy widely credited with having taken policy action which helped buffet India's financial sector from the global credit crisis in 2008-09, said the governor of RBI had been given a measure of primacy in the new arrangement by making him the vice-chairman of an inter-regulatory co-ordination committee.

IOC may raise petrol prices soon State-owned Indian Oil Corp, the nation's largest oil firm, hinted at an imminent hike in petrol prices, whose rates have not been revised since January in view of elections in states like West Bengal. "We would do it (increase rate) at the earliest possible," IOC Chairman Ranbir Singh Butola said. In his first interaction with media after taking over as the Chairman of the nation's largest fuel marketing firm, Butola said IOC and other state firms had consciously decided not to revise rates of petrol to keep "the environment happy".

NIIT's Pawar appointed as Nasscom chairman Software industry body Nasscom appointed Rajendra S Pawar, the founder of NIIT, as the Chairman of its ex-ecutive council for 2011-12. The industry body also announced appointing N Chandrasekaran, the CEO and Managing Director of TCS, as the Vice-Chairman for 2011-12. Pawar succeeds Accenture's Harsh Manglik as chairman of Nasscom. As Chairman of the Executive Council, Pawar will lead and assist Nasscom in catalysing the growth of the Indian IT-BPO industry and enabling the fulfillment of its future goals and aspirations," Nass-com said in a statement.

Arunachal CM’s missing chopper traced, Dorjee Khandu safe The missing chopper of Arunachal Pradesh Chief Minister Dorjee Khandu has been traced to eastern Bhutan and the CM is said to be safe. Officials said the Pawan Hans AS350 B-3 helicopter was forced to make emer-gency landing in Bhutan due to inclement weather. The chopper had taken off from Tawang at 9.50 am and was originally supposed to land in Itanagar at 11.30 am. A spokesperson of the Arunachal CM‘s office said Dorjee Khandu will be flying to Itanagar on another chopper. According to Arunachal MP Takam Sanjay, the chopper had lost communication with the ground after crossing the Tezpur airbase in Assam.

Zimbabwe-born Duncan Fletcher named coach of Indian cricket team Ending days of speculation, the Board of Cricket Control for India named Zimbabwe-born Duncan Fletcher as coach of the Indian cricket team on Wednesday. Fletcher, who staved off competition from New Zealander Stephen Fleming and Zimbabwean Andy Flower, has been appointed as coach for the next two years, Board Secretary N Srinivasan said. Fletcher will take over from the India tour of the West Indies beginning early June. India are scheduled to visitWest Indies from June 4 to July 10 which will be immediately followed by a much longer tour of England involving four Tests, a T20 game and five one-dayers.

Kairi Relative Index- The Kairi Relative Index is considered an oscillator as well as a leading indicator. The Index cal-

culates a deviation of the current price from its simple moving average as a percentage of the moving average. By recognizing

trending markets that are overextended, traders hope to capitalize on the downside.

THE IBS TIMES

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OPINION FORUM– IS PAKISTAN THE NEXT FAILED ECONOMY?! - SHILPA MALHOTRA

It is important to remember that in the intelligence world there is no such thing as a friendly in-

telligence service. While services will cooperate on issues of mutual interest, they will always

serve their own national interests first, even when that places them at odds with the intelligence

service they are coordinating with.

Pakistan‘s state system is on a very fast downward slide. If it is not collapsing, it is losing its

capacity to function effectively. With another military coup unlikely, the likelihood of substan-

tive political change from within the existing system being limited, at least in the short term,

what appears most likely is that Pakistan will, as it has for so many years now, blunder on. The

state is threatened with total anarchy with continuous US drone attacks eliciting conflicts be-

tween army and tribal militant groups. This has in turn fuelled economic, social and political

unrest across the country. More recently, days after Pakistan army Chief Gen. Ashfaq Parvez

Kayani called for an end to drone attacks in his country, unmanned American spy planes

unleashed 10 missiles at a compound in the volatile North Waziristan, killing at least 25 people,

including civilians.

The country lurches for from one political crisis to another, the impact is

for everyone to witness. It is a sheer joke to think the US will end drone

strikes. Why should the US do so? Billions of dollars of US aid have

brought none of the US‘s strategic goals to realization. The Pakistani

Army and ISI are shady, untrustworthy characters. They have misled the

Pakistani people and everyone around the world. Since all the aid to the

Army does not do anything but allow the army to buy weapons to fight India, a lost cause.

Pakistan is on a very fast downward slide, losing its capacity to function effectively. This needs

to change, the violence needs to end. The situation is extremely volatile because of a direct con-

sequence of war raging on the Afghan border. What happened in Tunisia, Egypt and Libya can

never be forgotten and if Washington refuses to stop its drone attacks, Pakistan could see a revo-

lution on the lines of what happened in Egypt.

When one considers the way similar periods of tension between the Pakistanis and Americans

have unfolded in the past, it is not unreasonable to conclude that as this current period plays out,

it could have larger consequences for American diplomatic facilities and commercial interests in

Pakistan. Unless the Pakistani government is willing and able to defuse the situation, this could

indeed provoke violent protests against the United States, and U.S. citizens and businesses in

Pakistan should be prepared for this backlash.

So for now, it looks like Pakistan will continue to teeter on the edge of collapse, always just one

economic/social/political crisis away from failure.

Oscillator Mean –A technical analysis tool that is banded between two extreme values and built with the results from a

trend indicator for discovering short-term overbought or oversold conditions. As the value of the oscillator approaches the upper

extreme value the asset is deemed to be overbought, and as it approaches the lower extreme it is deemed to be oversold.

THE IBS TIMES

Pakistan’s state system

is on a very fast down-

ward slide. If it is not

collapsing, it is losing its

capacity to function effec-

tively.

What happened in Tuni-

sia, Egypt and Libya

can never be forgotten and

if Washington refuses to

stop its drone attacks,

Pakistan could see a

revolution on the lines of

what happened in Egypt.

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BRAND TRACK– JUST JOCKEYING -SANDEEP AS-

When it is the end of the week, there is one thing that comes to my mind; and that is writing an article

for the Brand Track Column. And the best way I think of writing the Brand Track Column is by observ-

ing the brands around me. This actually amuses my sensors as to what are we doing the rest of the

week?? We are all the time surrounded by brands; right from the morning brush to the car that we drive

to work, from the food we eat to the bed on which we sleep. Well, this time I have chosen to track the

brand Jockey® which I am sure we all must have heard of. Literally, the word jockey means a horse

rider whereas 9/10 people think of the brand Jockey when they hear it.

The brand was born in 1876 when Samuel Thrall Cooper founded S.T. Cooper & Sons, the predecessor

of Jockey® International, Inc. Samuel Cooper started his hosiery business in St. Joseph, Michigan to

help lumberjacks who were suffering from their poor quality socks during winters, thus laying

Jockey‘s® foundation for “Satisfying the Human Need for Comfort.” Initially it produced only socks

and later introduced the boxer shorts and vests for men. This brand was also sold under the name of

“White Cat”. It was only in the 1934 that the flagship Y-Front brief of Jockey® was introduced for

men, until then it was only worn by women as bikinis. It was actually the

creation of this brand and it was for the first time in the year that the products

were sold in the international markets also.

Jockey® has always positioned itself as a masculine brand and hence used

hunks and well built athletes to endorse the brand. In 1947, the Jockey®

brand name was stitched into the waistband of the underwear for the first

time. It used other marketing tools as well such as the sports illustrated

magazines and television shows to promote its brand. Jockey® aggressively

grew its range by introducing different shapes and styles and till 1980 it was

still a brand that was targeted towards men. In 1982, Steigerwaldt introduced

the enormously successful Jockey for Her®.

Jockey® launched one of its most famous campaigns in the late 1990‘s which was the “Let’em Know

You’re Jockey” campaign. This campaign encouraged the youth to wear low waist trousers and show

off their jockey symbol. This entirely changed the way jockey was positioned. Till then the underwear

was supposed to be something that was just a necessity and a garment that people didn‘t publicize about.

After that campaign it became a fashion statement where all the men and boys started to actually show

off the underwear they wear. This gave jockey a rocketing presence in the market and a worldwide rec-

ognition and hence helped it expand rapidly across boundaries. The underwear which was initially hid-

den beneath the clothes was now flaunted around. This was a bold step, but turned out hugely to be in

favor of the brand.

The women‘s segment of undergarments was also looked into and from comfort to realistic needs; eve-

rything was considered to design a unique product. In 2001, Jockey International, Inc. launched its revo-

lutionary No Panty Line Promise® panties. Jockey embarked on a mission in 2004 to develop under-

wear in an innovative way, ultimately bringing the 3D-Innovations® line of products. It expanded glob-

ally by opening its individual outlets in every city whereas earlier it was usually sold on shelves of other

stores.

Today Jockey is one of the most well known brands; not just in the innerwear segment; but it is a name

to pay heed to while discussing the world‘s famous apparel brands. With its presence in more than 120

countries it‘s truly a product that‘s “The Next Best Thing to Naked”.

THE IBS TIMES

After that campaign it

became a fashion state-

ment where all the men

and boys started to actu-

ally show off the under-

wear they wear.

The brand was born in

1876 when Samuel

Thrall Cooper founded

S.T. Cooper & Sons,

the predecessor of

Jockey® International,

Inc.

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QUICK BITES- NEWS THAT CAN’T BE MISSED ! - VASUNDHARA ARORA

Big Shots…

Facebook hired the founder duo of Daytum site; Nicholas Felton and Ryan Case, in its product design team.

US Ambassador to India Timothy J. Roemer announced his resignation.

The CEO of the SME (Singapore Mercantile Exchange); Thomas McMahon, resigned over differences of opinion with the

exchange's owner.

Infosys names Mr. S. D. Shibulal as the new CEO and MD and Mr. K.V. Kamath as the Chairman of the Board w.e.f from

August 21.

Company Talks… Tata Consultancy Services is eyeing acquisitions in Germany and Japan in the healthcare sector as it looks to expand beyond

its core US market.

Johnson & Johnson to buy Swiss medical device maker; Synthes for a whopping $21.3 billion via a cash-and-stock deal.

Reliance Venture Asset Management Ltd (RVAM) sells Pelago stake to Groupon at 80% premium over the current market

value.

Aditya Birla group acquires Swedish speciality pulp maker and bio-refiner Domsjö Fabriker AB for $340 million.

StanChart‘s acquisition of TMB (Tamilnad Mercantile Bank Ltd.) shares under RBI scanner.

British publisher Pearson buys U.S. digital learning firm Schoolnet for $230 million.

India‘s largest lender State Bank of India (SBI) indicates merging either with State Bank of Patiala or State Bank of Hydera-

bad by early next fiscal as part of the consolidation process which started in 2008.

CoStar Group Inc., the leading commercial real estate information company announced the signing of a definitive agreement

to acquire LoopNet Inc., the leading online commercial real estate marketplace of U.S.

Exelon to buy Constellation Energy in a $7.9 billion deal.

YouTube co-founders Chad Hurley and Steve Chen announced the purchase of Delicious, which will become part of their

new Internet company, AVOS.

Essar Telecommunications Holdings Pvt. Ltd and India Securities Ltd (ISL) merger gets high court nod.

The brokerage firm BGC Partners announced the purchase of Newmark, the real estate advisory firm.

Economy Speaks… ―The Chinese economy will surpass that of the US by 2016‖, the IMF has predicted.

The Bank of Japan left its key interest rate unchanged at ultralow levels (at around 0- 0.1%) to support growth as the econ-

omy recovers from the natural disasters that struck the country last month.

For the first time ever, Fed Chairman Ben Bernanke met the press taking a significant step in opening the historically secre-

tive bank to public scrutiny as rate-setting panel holds the rate near zero.

Fed may drop a pledge this year to hold the main interest rate near zero for an ‗Extended Period‘ as it prepares to curb the

$6.5 billion stimulus to the economy.

Around 60 Air India flights were cancelled while several others delayed falling on the pilots‘ strike on compensation parity

issues with Indian Airlines.

The Captains of the Ships… CEO of HUL – Nitin Pranjpe

CEO of P&G – Bob McDonald

CEO of Reckitt Benckiser – Rakesh Kapoor

CEO of Johnson & Johnson – William C. Weldon

CEO of Dabur – Sunil Duggal

THE IBS TIMES

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FOCUS OF THE WEEK– NEW HP– MORE THAN JUST HEALTHY SCEPTICISM - NITIN ARORA

Binomial Tree-A small line found on a candle in a candlestick chart that is used to indicate where the price of a

stock has fluctuated relative to the opening and closing prices. Essentially, these shadows illustrate the highest and low-

est prices at which a security has traded over a specific time period.

THE IBS TIMES

I want to start on a very high level. IBM is the smarter planet connecting everybody; Ora-

cle is marrying hardware with software for the enterprise. What is HP? HP has been in the

strongest position -Financially, market position-wise, and general positive ―vibe‖-wise.

But, it is what it is. Mark Vincent Hurd is gone. He had to resign after some internal ac-

count irregularities were found. HP now was looking for a CEO who could sustain the po-

sition that its former CEO had created.

Ex CEO of SAP AG Léo Apotheker was appointed as the next CEO of Hewlett-Packard.

Born on September 18, 1953 in Aachen, Germany. Apotheker studied economics at

the Hebrew University in Jerusalem and held several financial and operations positions at

European companies prior to joining SAP in 1988.

Apotheker set out his vision for the IT Industry. He articulated SAP‘s commitment to sus-

tainability. Before his appointment as the co-CEO of SAP, Apotheker was the deputy CEO

from 2007 to 2008. He was the CEO and the founder of SAP

France and SAP Belgium (from 1995 to 1997) and the president

of SAP south west European region. Leo for his Business lead-

ership and contribution to the French economy was honored on

December 5, 2007 with the French Légion d'honneur in a cere-

mony in Paris. He played a key role in increasing competitive

capabilities and innovation for French Industries.

On September 30, 2010 Léo Apotheker was elected as the next

CEO of Hewlett-Packard Company effective from November 1,

2010. He succeeded Cathie Lesjak who served as the company's

interim CEO following the abrupt departure of Mark Hurd. HP

pointed to Apotheker‘s international experience as one of the reasons for the hire.

'Léo is a strategic thinker with a passion for technology, wide-reaching global experience

and proven operational discipline‘ independent director of HP Robert Ryan in a statement.

Meanwhile, Leo has begun to articulate a new strategy for HP around cloud computing,

and designing its own operating system for its mobile devices, a move certain to anger its

long time partner, Microsoft. However five month into his tenure Leo Apotheker has al-

ready starts feeling the heat and a host of challenges. With companies‘ financial position

flagged, along with its share price and revenue for this quarter falling. Will the strategic

moves by the IT veteran succeed, will he be able to sustain the forces and will he be able to

keep up the mark that Hurd has created. Critics say that it maybe that Leo Apotheker was-

not a good choice for HP, citing the cultural and strategic difference between HP and Apo-

theker‘s former company. Only time will tell what lies ahead for HP.

Indian GAAP differs

from IFRS on the lines

of profit/loss on the de-

rivative contracts entered

by the company.

Moreover, Indian

GAAP has always been

criticized for its vagueness

in relation to the group

companies.

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MARKET WATCH - SAINYAM KUMAR

Nowadays, inflation seems to be the first and the last word when we talk about India. The

headline rate as per the first round of calculation for the month of March 2011 came out to

be 8.98% as against the Government‘s projections of 8%. What is interesting to see is that

the Government came out with this number after two rounds of upward revision of the rate

and still remained 100 basis points away from the declared numbers. Additionally, the final

numbers are expected to be higher, putting even more pressure on the Government. The

soaring prices signal that RBI might hike the interest rates by 25-50 basis points in its meet

on May 3rd, 2011. This accompanied with the FIIs leaking out of the country dented the

investor confidence to such an extent that Indian markets moved southwards for all the 5

sessions. Talking about the performance of various indices, hardly any green signs were

seen. Pharma and PSU being the sectors that are not elastic to the interest rates set by the central bank of the country; managed to

register marginal gains. With oil prices continuing to increase week after week, BSE-Oil & Gas shed around 3%; which came as no

surprise.

The Movers & Shakers of the Week

One of the important news that moved the market was Wipro announcing that the revenue for the 1st Quarter of 2012 will remain

more or less unchanged. This led to a fall of as much as 3% of the stock price. The street had expected at least a 3-4% jump in the

revenues.

Global Cues: The week was volatile from the global perspective as all the emerging economies faced a dip while the developed nations ended

the week in green. Germany led the pack with an almost 3% jump followed by the U.S. China and India, the two most talked about

economies, registered the maximum downward movement. The movement in the market was mainly caused due to USD Consumer

Confidence data released during the week which showed that the actual figure (65.4) was higher than the forecasted numbers

(64.5).

SURGES %Change DOWNFALLS %Change

GSK CONSUMER 7.7 IRB INFRA -13.4

EXIDE INDUSTRIES 7.6 HOUSING DEV INFRA -13.0

ASIAN PAINTS 7.6 UCO BANK -13.0

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, RAJAT MONGA, SAINYAM KUMAR, SANDEEP ASRANI, SANYA DHAWAN, SHILPA MALHOTRA, TANIYA BANERJEE, VASUNDHARA ARORA.

BUSINESS JARGONS BY– TANIYA BANERJEE

25 April 2011

26 April 2011

27 April 2011

28 April 2011

29 April 2011

Sensex 19,584.31 19,545.35 19,448.69 19,292.02 19,135.96

Nifty 5,874.50 5,868.40 5,833.90 5,785.45 5,749.50

DJIA 12,479.88 12,595.37 12,690.96 12,763.31 12,810.54

HangSeng * 24,007.38 23,892.84 23,805.63 23,720.81

FTSE100 * 6,069.36 6,068.16 6,069.90 *

Gold ($/oz.) 1,507.40 1,507.10 1,527.30 1,535.80 1,565.70

Crude($/bl) 119.38 118.96 119.35 120.91 -

INR v/s USD 44.73 44. 8654 44. 75 44. 6716 44. 60

INR v/s EURO 65. 19 65. 4578 65. 71 65. 2109 66. 18

Merton Model- A model, named after the financial scholar Robert C. Merton, that was developed in the 1970s and

is used today to evaluate the credit risk of a corporation's debt. Brokerage firm analysts and some investors employ the

model in order to determine a company's ability to service its debt, meet its financial obligations and to gauge the overall

possibility of credit default.

THE IBS TIMES

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* Figures not available.