ISSUE - 121 3rd AUGUST [WEDNESDAY]

EDITOR’S DESK - TANIYA BANERJEE

There is something special about this issue of The IBS Times! With this issue we are em-

barking upon a new journey with a new team to present your favourite weekly sections

from their perspective!

Pakistan supposedly put up its best face forward when its newly appointed first woman

foreign minister Hina Rabbani landed in Indian territory to facilitate bilateral talks be-

tween the two nations. With fashionistas going gaga over the minister what rests to be

seen is, has the mission behind her visit been really fruitful or is it just another one of

those visits which bore no real implication? Get the answers in our Cover Story.

With inflationary pressures showing no signs of getting tamed RBI, the apex bank our

country has consistently been on the move, dealing with the repo and the reverse repo

rates. Will these measures reap any results? Get your answers to all such queries in the

Opinion Forum.

Louis Vuitton as a brand signifies luxury! Get to know more about the brand in our

Brand Track section this week. Wowing people all over the world, How did this brand

come about to become a lifestyle statement? Get the answers to these questions here this

week.

Our Focus of the Week is Mrs. Sangeeta Pendurkar, the Managing Director of Kellogs

India. An inspiration for all Indian women, track the journey of this eminent individual

starting from her humble beginnings to the recently acquired success in her career, get to

know more about her here this week.

Moreover we have our regular sections Fast Track, Quick Bites and Market Watch with

lots of Jargons to add on to your knowledge.

Cheers!

Taniya Banerjee

Editor.

EDITOR 1 OPINION 5 FOCUS 8

COVER 2 BRAND 6 MARKET 9

FAST-TRACK 3 QUICK BITES 7

COVER STORY–PAKISTAN’S FOREIGN MINISTER VISIT TO INDIA - AVINASH ROY

„Pakistan‟s bomb lands in India‟

„Pakistan puts on its best face‟

Many of us must have come across such one liner in the past week, and those who have not need not to panic or wonder. Though the event related to these statements were supposed to be very crucial and of utmost importance, yet the main crux of the event somehow got overshadowed. Yes, I am talking about Pakistan‟s foreign minister‟s visit to India of which almost everyone has been buzzing around since the last week.

Belonging to a rich political family, 34 year old Hina Rabbani Khar, Pakistan‟s first woman for-eign minister and also its youngest, sworn in as the foreign minister, a week before crucial peace talks in India, ending a 5 month job vacancy after her predecessor SM Quereshi was dropped as Foreign Minister by the President of Pakistan owing to the reshuffle of the cabinet. When Paki-stan‟s newly appointed foreign minister landed in India for peace talks last week, a media frenzy erupted around her style, her pearl necklaces, elegant costumes, cavalli sunglasses and a stylish Hermes made birkin bag worth at least $9,000 (~ INR 4,00,000).

Khar‟s glamorous turn triggered a media swoon and became the buzz of the sub continental chattering class. On being asked to comment on her fashion trends and style, she replied, “A guy in my place would never get such attention; nobody would be talking about his suit. I re-fuse to be apologetic about it, I will continue to be who I am.” The statement itself reflected a lot about her personal traits and if she really is a breath of fresh air regarding the crucial Indo- Pak relations, the question still remains the same. „Whether she really is in charge?‟ The army is acknowledged to control the main levers of policy, directly or indirectly: nuclear weapons, India, Afghanistan and America. Critics derived Khar‟s predecessor- Shah Mahmud Quereshi as the “Army‟s man”, will Khar be any different?

For all the frivolity, the trip was an auspicious start to a notoriously tricky job. Claims of a “New Era” in relations seemed premature, but Khar broke the ice with her elderly Indian counterpart, S.M. Krishna and negotiated several concrete measures to boost trade in the disputed territory of Kashmir. The various issues that were discussed over the meeting were cross border terrorism, Jammu- Kashmir, water related differences, etc but the main focus was once again of course on terrorism and frequent terror attacks killing lots of innocent people. According to SM Krishna (Indian Foreign Minister), terrorism is still the biggest threat to both the nations, and in the meet-ing both the countries have decided to fight this scourge in all its forms and agreed to strengthen counter-terrorism to bring those responsible for terror crimes to justice. Khar has sought to change the ambiance of the bilateral interactions by introducing an element of decency in dis-course that was markedly absent under her predecessor.

Though both the foreign minister‟s of respective nations are giving positive feedback regarding the peace talk and claiming it as the beginning of a new era, yet the actual outcomes are really dubious. The media coverage of Khar‟s visit practically overshadowed the India- Pakistan dia-logue. Since the issue is really sensitive and very crucial regarding harmony among both the na-tions, yet the implementation of the ideas previously formulated does not seem to be adequate and properly effective. Both the nations together seriously need to come up with something ex-tra, which can ultimately eradicate issues like terrorism from its root and allow proper harmony and peace between both the nations. And let‟s just hope the media would be a bit more responsi-ble and focused in future, regarding the crux of any such event rather than to focus more on the paparazzi part.

THE IBS TIMES

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Khar’s glamorous turn

triggered a media swoon

and became the buzz of the

sub continental chattering

class.

Critics derived Khar’s

predecessor- Shah Mah-

mud Quereshi as the

“Army’s man”, will

Khar be any different?

FAST-TRACK NEWS - APOORVA HARIHARAN & KISLAY KUMAR

Tata Motors unveils Assembly Plant in South Africa Tata Motors started commercial vehicles assembly in South Africa. Two models of Tata Motors i.e.

Tata Lpt 813 and Tata Lpt 1518 which is already popular in South Africa will be manufactured there.

The plant is inaugurated by Noel Tata from Tata International. The establishment of the plant is a ma-

jor step towards bolstering the operations and presence of the Tata Group in South Africa.

2nd

rescue package for Greece Euro zone leaders agreed on 2nd rescue package for the debt stricken Greece in the month of Septem-

ber. The second bailout will be of $157 billion of government money and $72 billion dollar of private

sector bondholders. This has been seen as a comprehensive, bold and long term approach by the Euro-

pean Union.

RBI hikes rates by 50 basis points. According to D.Subbarao, inflation continues to be the dominant macroeconomic concern. With the

rise of 50 basis points, the repo rate moves from 7.5 % to 8 % and reverse repo rate automatically ad-

justs to 7 percent. Controlling inflation is imperative for the sustainable development of the economy.

RBI is very much concerned about inflation as it is hampering the economic growth of the country.

Maruti Udyog Ltd. PAT went up by 18.02 % Maruti Udyog Ltd.‟s PAT (Profit After Tax ) went up by 18.02 % in the first quarter due to the in-

crease in the other income ( treasury yields and investment gains) . The domestic sales increased from

2,42,887 to 2,50,683 in spite of 13 day labour strike at Manesar Plant.

Anshu Jain -first non-European CEO of Deutsche Bank Anshu Jain becomes the first non –European CEO of Deutsche Bank. He would become co-CEO with

Joseph Ackermann and Juergen Fitschen. It is speculated that he will actually run the bank whereas

the German operations of the bank will be handled by Juergen Fitschen.

Congnizant technology solutions acquired CoreLogic India Cognizant technology solutions acquired CoreLogic India operations, a captive unit of US-Based core

Logic for 50 Million dollar. CoreLogic is expertise in end to end mortgage services and also provides

software support to the mortgage industry. The India centre provides capabilities in software product

development, analytical modelling, domain-centric back-office services, and technology support to

CoreLogic and its customers, primarily in the US mortgage and real estate markets.

B.Yeddyurappa resigned Karnataka chief minister B.S Yeddyurappa resigned from his service in Bangalore. The resignation

came after the severe indictment by the Karnataka Lokayukta for the illegal mining in the Karnataka

bellary region. The political crisis in Karnataka has deepened, with a clear split emerging within the

ruling Bharatiya Janata Party.

Ratchet– A provision often found in a terms sheet. A ratchet gives an investor certain rights especially when additional equity

capital is raised in a "down-round", i.e. at a lower valuation than before. Examples of these terms include so-called "full ratchet"

anti-dilution adjustments, super-multiple participating liquidation preferences and short-time frame mandatory redemption.

THE IBS TIMES

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Rim to cut 2000 jobs Research In Motion, maker of the Blackberry device is to cut 2000 jobs, 11% of its total work force, as a part of a drive to both reduce the cost and respond to growing pressure from investors. They are struggling to compete with Apple‟s I Phone and handsets using Google android operating system. In the current fiscal year, the share price of RIM has fallen from $58.07 on Jan 3,2011 to 25.25 $ on 25 July,2011.

Deadly train accident in China A deadly high speed train accident happened in China. Two bullet trains collided in eastern china killing at least 43 people and injuring 200. The Chinese government agreed to give families of crash victims 500000 Yuan ($77,550) each in compensation. Meanwhile, Chinese government fired three railway officers amid safety concerns. Railway ministry told that first train had lost power after be-ing struck by lightning.

Norway bombing The attacks which happened on 22nd July, 2011 in Norway killed at least 93 people. The attacks in-cluded the bombing of a government building in Olso and shooting spree at a political youth camp on a nearby island. The man behind these killings is Anders Behring Breivik who has taken the re-sponsibility and is of the opinion that the killings were atrocious but necessary. Norways central –left labour party is considered to be the prime target of this attack.

Nissan CEO sets Major expansion plan for China The joint venture of Nissan Motors and Dongfeng Motors will invest 50 billion Yuan over five years to expand manufacturing capacity . Nissan Chief executive officer Carlos Ghosan told that the 50-50 joint venture aims to boost annual sales of Nissan and other premium brands to 2.3 million vehicles by 2015 up from 1.3 million sold last year. This initiative lifted Nissan credit rating to Baa 1 from Baa 2 (Moody investor service). Improved rating reflects the company improved profitabil-ity, financial flexibility and global market position. $ 2.4 billion deal to upgrade mirage 2000 fighters India on Friday inked 2.4 billion dollar (10,900 crore rupees) deal with French armament majors Thales and Dassault aviation for the up gradation of 51 mirage -2000 multi role fighters in Indian air force combat fleet. The upgradation will be done in the area of avionics, radars, mission computers, glass cockpits, helmet mounted displays and electronic warfare. Apart from this, Su 30 MKI and Mig 29 is also going for upgradation in the Russia. Mirage 2000 is considered as a top notch multi role fighter in India. Phelps powers to his first gold medal Olympic champion Michael Phelps won a gold medal in a 200m butterfly on Wednesday 27th July, 2008 in Shanghai, China.. This is his first gold medal that he has won against Japan‟s Takeshi Ma-tsuda clocking a winning time of 1 min 53.54 seconds. Matsuda timed 1.54.01 while China‟s Wu peng claimed a bronze in 1.54.67.

Infectious Greed- A phrase used in his July 2002 testimony before the Committee on Banking, Housing and Urban Affairs

by former Federal Reserve Board chairman Alan Greenspan to describe the breakdown of corporate governance checks and bal-

ances. Mr. Greenspan spoke of this while focusing on reforms of corporate governance to help protect investors.

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OPINION FORUM– JUSTIFICATION BEHIND RISING REPO & REVERSE REPO RATE -GAURAV MALIK Indian economy for quite some time now has been battling with the problem of inflation. The Government has been helpless and has not been able to take some stringent against curbing in-flation. As a result, Reserve Bank of India, the central bank of India, has moved away from baby steps towards youthful stride by increasing the repo rate and reverse repo rate by 50 basis to 8% and 7 % respectively. RBI governor Mr. D Subbarao has given two considerations behind the increasing of repo rates by RBI: First, demand pressures have remained strong. Actual inflation so far has been even higher than expected. In particular, non-food manufactured product inflation has been signifi-cantly higher than the average rate of 4 percent over the last six years. Crude oil prices remain volatile and are a major risk factor. There is an increased amount of pressure in inflation sensi-tive areas like diesel, petrol and LPG which makes life tougher for middle income groups as they have to readjust their household budgets accordingly. Second consideration has been the supply reserves which deals with shortages of materials like cashew nuts reserves which has reached its top price in India because of shortage of supply and exports to other countries. The short-term lending rate (repo rate) has been in-creased from 7.5% to 8%, while the short term borrowing rate (reverse repo rate) has been raised to 7% from 6.5 % with immediate effect. Keeping in view the liquidity situation, the central bank has kept the cash reserve ratio (CRR), the amount banks are required to keep with the RBI in cash, unchanged at six percent. This is the elev-enth time since March 2010 that the RBI has resorted to policy rate hikes to tackle inflation. Inflation is still rul-ing above eight percent. For the projects that are already priced high, the impact in terms of demand erosion will be higher. We do not see much impact on low-ticket sizes, i.e. Rs. 25-50 lakh purchases. End-user demand will remain intact. Investors in residential and commercial premises will find lesser arbitrage opportunities as the cost of funding purchases becomes higher. Banks will revise housing loan rates upwards. On the buyer side, the low to-mid income segments are invariably the most affected by a hike in home loan interest rates, That said, the impact of increased cost of borrowing is not as severe as that of the decreased allowable percentage of borrowing. This used to be at a steady 85% of the overall cost of the property; now, most banks are not extending more than 75%. If we want to have a solution to the „dragon‟ named inflation then we need to find answers to three main sectors consumer goods, energy and food. We have to increase our agricultural sup-ply in order to keep a check on the food inflation as farmers do not get the proper remuneration supply should get their fair share as been proposed . Another measure which has been suggested that private sector should be given a chance to enter the agricultural sector. Also India have large coal reserves so we can extract a large amount of natural gas and should also work on utilization of solar energy. This is yet another effort by the RBI to curb inflation, but it will take time to gauge the actual overall impact and the success of this latest move. We can not predict whether the next meeting will include another rate hike or not. If the current trend of easing inflation and low industrial output continue, the rates might stay at the present levels.

Mancession - An economic instance in which the unemployment rate is substantially higher among men than it is

among women. The term "mancession" was coined during the financial crisis of 2008-2009, during which men bore the brunt

of the job losses in the United States, at rates close to 50% higher than those of women.

THE IBS TIMES

RBI governor Mr. D

Subbarao has given two

considerations: behind the

increasing of repo rates by

RBI: First, demand

pressures have remained

strong.

End-user demand will

remain intact. Investors

in residential and com-

mercial premises will find

lesser arbitrage opportu-

nities as the cost of fund-

ing purchases becomes

higher.

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BRAND TRACK– LOUIS VUITTON: A BRAND FOR THE PREMIUM -POOJA DALAL

Imagine walking besides an 8 storied suitcase. That would happen if you were fortunate enough

to be outside Louis Vuitton in Paris. This building states without words, the magnanimity of the

brand Louis Vuitton that has become synonymous to exquisiteness and luxury.

The company Louis Vuitton was founded in 1854 by Louis Vuitton. It manufactured premium

trunks and since then it has traversed many rough miles to evolve into a brand that encom-

passes handbags, footwear, accessories and even apparels of late.

Expansion has always been on Louis Vuitton‟s chart‟s. And with a view to appeal to the elite

world over, the brand expanded from Europe to US and then to Japan and Korea.

Louis Vuitton sells its merchandise through its own retail outlets in Europe, USA and Japan.

But its recent forays into developing economies are forcing it to change its ways as there are

not many posh malls or high end areas in these countries. For

example there are only three LOUIS VUITTON stores in India

(in Mumbai, Delhi and Bangalore). Also its clientele remains

limited (there are only 1.2 lakh high networth individuals in In-

dia. But the brand has faith in the growth potential of the coun-

try to produce such a richer section that will in future become

its clients. Also introducing its new range of accessories (most

of it being less expensive than its signature bags/luggage) like

sunglasses and clutches, it hopes to capture a wider buyer base.

But it is again a dilemma between its values of producing prod-

ucts only for the premium segment and for a possibility of increasing sales volumes if lower

priced accessories are introduced. According to many critics, this can lead to brand dilution,

and Louis Vuitton will no more stand for exquisiteness that its current clientele most desires in

owning the brand.

Every brand faces new challenges with the turns of time. And the most concerning of them to

LOUIS VUITTON is counterfeiting. Louis Vuitton being a high-end status brand is the most

replicated in the industry, and fake bags with its famous signature monogram are traded world

over (especially in developing economies). But they say, every problem has a solution. And

LOUIS VUITTON came up with one. It sells its merchandise through its online store on the

website.

Since its inception LOUIS VUITTON has laid utmost emphasis on quality. But is good quality

an attribute enough to attract the global and fashion conscious clientele it caters to today? We

have the question and LOUIS VUITTON has the answer. The premium strata of clients it caters

to simply are rich or famous or classic. And to grab their attention LOUIS VUITTON came out

with the recent „Core Values Campaign‟ choosing Angelina Jolie as its new face. She exudes it

all, elegance, independence and ethics. .And for all the people who are obsessed with fashion,

have a quick look in at the all new Resort collection that is specially designed for all those lei-

sure seekers who will be travelling this vacation to any perceivable spot where you can flaunt a

LOUIS VUITTON. Gents go grab a LOUIS VUITTON suitcase, ladies have a pick at the

„neverfull‟ monogram bag and you are all set for your dream star vacation. Here you go!

THE IBS TIMES

Every brand faces new

challenges with the turns

of time. And the most

concerning of them to

LOUIS VUITTON is

counterfeiting.

Expansion has always

been on Louis Vuitton’s

chart’s. And with a view

to appeal to the elite

world over, the brand

expanded from Europe to

US and then to Japan

and Korea.

1 2 3 4 5 6 7 8 9 10

QUICK BITES- NEWS THAT CAN’T BE MISSED ! - LISA .T.SAMUEL

Big Shots…

Karnataka CM-BS Yeddyurappa yet to resign, sought time till July 30.

Toyota Sales USA Executive appointed to National FFA Organization‟s Board of Directors – Mr. Matt Gonzales.

Company Talks… TVS Motor Company reported a 45.65% jump in its net profits.

Nokia, world‟s biggest overall handset producer has lost 47% in the Helsinki stock trading this year.

Idea profit earnings tumbled 40% in the first quarter to Rs. 154.1 crore from Rs.257.6 a year ago on high funding

costs.

Ford India will invest Rs.4000 crore to set up its second manufacturing unit in Gujarat.

MRF‟s third quarter profits halved to Rs. 31.95 crore from Rs. 61.59 crore in the same period last year.

L‟Oreal to invest Rs 500 crore in India to open factories, laboratories and innovation centres.

SAIL reported a 29% dip in net profit to Rs. 838 crore from Rs. 1177 crore.

TATA Mutual Fund parts ways with its offshore fund management partner, Credit Suisse in May.

Suzlon Energy signed an agreement to sell its entire 26.06% equity stake in Belgium‟s Hansen Transmissions

International NV to ZF Friedrichshafen AG for about Rs. 830 crore.

Toyota announced to invest Rs. 1650 crore to ramp up the production capacities of its Indian operations by one

lakh units.

Economy Speaks… Union Cabinet clears Lokpal Bill.

Reserve Bank of India stunned the markets by raising key policy rates by 50 basis points.

Indian shares posted their biggest monthly decline in six months.

The eight core sector industries make a good lead indicator of industrial growth expanding by 5.2% in June.

Cocoa import to rise as global price slumps.

Steel majors to halt production due to mines closure in Karnataka.

The Indian Government is ranked fifth in wielding economic clout globally after the US, China, Japan and Ger-

many, and ahead of France and UK.

Bt cotton accounts for 90% of plantation of this key commercial crop in India, which helped the country to

achieve an about 38% jump in the output of natural fibre in 2010-11.

Food inflation fell to its lowest level in 20 months at 7.33% for the week on the back of cheaper pulses, even as

other items grew more expensive.

Oil supplies in US come to the lowest this week on rising supplies already.

Crude Oil prices rise as US Debt Concern weakens Dollar.

The Captains of the Ships… Co- CEO of Deutsche Bank – Mr. Anshu Jain

Head of Seven, Sydney sales – Nikki Rooke.

THE IBS TIMES

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FOCUS OF THE WEEK– SANGEETA PENDURKAR: WOMAN OF METTLE - KRISHNA DESHMUKH

Zombie Bank- A bank or financial institution with negative net worth. Although zombie banks typically have a net worth below zero,

they continue to operate as a result of government backings or bailouts that allow these banks to meet debt obligations and avoid bankruptcy.

Zombie banks often have a large amount of nonperforming assets on their balance sheets which make future earnings very unpredictable.

THE IBS TIMES

Born in a middle class

family she ended up doing

an MBA in marketing

only because one of her

close friends was taking

the entrance exams and

she decided to accompany

her. She had a great

start with Hindustan

Ciba-Geigy Ltd

The ability to withstand

pressure and persevere is

what she has acquired

inherently from her father

who has had great influ-

ence on her.

1 2 3 4 5 6 7 8 9 10

Have u ever seen a man cooking, talk on the phone and discipline a toddler, and make notes at the same time?

What about women? This ability to multi-task works to the advantage of women. Are they making better leaders?

The research studies answer in the affirmative. Sangeeta Pendurkar the Managing Director of the biggest break-

fast cereal maker, Kelloggs India is our focus of the week. With a rich industry experience of 22 years across dif-

ferent sectors be it marketing, pharmaceuticals, financial services or FMCG there is hardly something that is un-

done to her.

Born in a middle class family she ended up doing an MBA in marketing only because one of her close friends was

taking the entrance exams and she decided to accompany her. She had a great start with Hindustan Ciba-Geigy

Ltd (now Novartis India Ltd) as a management trainee and she learnt early enough that success is 1% inspiration

and 99% perspiration. Pendurkar has also worked with Hindustan Unilever where she launched two key paper

products brands – Huggies and Kotex, and subsequently she was responsible for marketing for the skin care busi-

ness, with a portfolio of 5 large brands. She won the Unilever International Award for Integrated Channels Com-

munication for Fair & Lovely (the largest skin care brand in India) and the Chairman‟s Award in India for un-

precedented growth in Fair & Lovely. At Kimberly Clark Lever Ltd she worked in various capacities in the sales

and marketing department, before moving to HSBC India as its Chief Mar-

keting Officer. At HSBC Sangeeta set-up the marketing and product team

for HSBC in India and launched several innovations during her three year

assignment. The team was recognized as the “Best Marketing Team” in

HSBC Asia-Pacific in 2005.Later she joined the beverage giant Coco-cola

where she was handling marketing for 10 different countries where she

steered the revamp of the company‟s Georgia tea and coffee businesses,

and innovations in beverages such as extending Coca-Cola‟s juice brand

Minute Maid to local nimbu paani under the name Nimbu Fresh.

Observing people and knowing them inside out has helped her rise to this level. What is best other than your boss

confirming it? Back then, when she worked for Novartis, K.G Anantakrishnan recalls how she went beyond the

line confirming her edge and competence for excellence in execution. Mumbai was crippled as heavy rains lashed

the city upside down but the launch which was scheduled went smooth as Sangeeta was right there taking charge

in person. An eye-opener incident she shares is when a facilitator brought home a point to delegate and empower

people and let go off her desire to achieve perfection. “Since then I have never looked back” she recalls. The abil-

ity to withstand pressure and persevere is what she has acquired inherently from her father who has had great in-

fluence on her. Sandeep Pendurkar her husband who is also a marketing professional has also always been a great

support in making right choices. "I owe a lot of my success to him. He is a great example of an understanding

spouse, willing to make adjustments to support my career. I wish I could be as patient as him," she says. She is an

avid reader enjoys both fiction and non-fiction and often quotes Gibran. Besides her love for music she is an art

connoisseur and avidly collects art.

Her day is mostly spent at work. Her immediate priority is to further expand in the breakfast cereal market where

Kelloggs cornflakes derive 80% of its revenues from. However growing in the smaller oats segment remains the

bigger challenge. Being an industry veteran she is not at all complacent about her life ahead as she believes there

is lot to learn. When asked about work-life balance she is quick enough to say “It‟s important to ignore the word

balance and focus in what makes you happy. After all if one enjoys everything that he does it really blurs the line

between work and life.” Sangeeta has won many accolades for her teams but she considers far and away the best

prize that life offers is the chance to work hard at work worth doing.

MARKET WATCH - KRITIKA SETHI

Continuing with the number of rate hikes in the past few months for controlling the inflationary

pressures, RBI continued the suit by further raising the rates by 0.5% this week. Inflation contin-

ues to be a major concern for the economy till date as the fiscal end inflation projections have

been revised to 7% from 6%. The revised repo rate is 8% with reverse repo rate being 7%. Cash

Reserve Ratio remains unchanged at 6%. Indian stock market showed the decline to the extent of

2.8% during the week. The reasons were weak global cues and US debt default which out-

weighed the market.

About the sectoral indices in India, stocks from realty and capital goods faced major upheavals.

Realty faced downturns due to rate hikes. Stocks from capital goods space were also down dur-

ing the week as rate hike fuelled concerns that the industrial capex cycle would further get de-

layed.

The Movers & Shakers of the Week

We have plethora of companies coming out with the financial reports for this quarter. Telecom sector has made significant contribution

to the market this week. Idea and Reliance have displayed positive results. Bharti Airtel increased the tariffs by 20-25% in some of its

circles. It is expected to extend this hike to the entire country soon. The other players in the telecom sector may follow suit thereby result-

ing in increased tariffs across networks. It may be noted here that earlier Tata Docomo had also raised tariffs to deal with falling profit

margins.

HUL announced its first quarter results which reported double digit growth with 14.8% increase in sales. Followed by Reliance which

displayed growth in topline by 37.2 and increase in net profit by 16.7%. Maruti Suzuki also showed growth by 1% due to the strike at

Manesar plant during the quarter and auto slump.

Global Cues: Negative and cautious sentiments prevailed in the global markets. US STOCK MARKETS were down by 4.2% during the week due to

failure to raise debt ceiling due to technical snag. Only Singapore market closed in the green. France lost 4.4% followed by Japan with

3%. Fiscal woes prevailed in European markets due to concerns with slowing down of US markets.

SURGES %Change DOWNFALLS %Change IDEA 16.8 ADANI ENTERPRISE -19

EIH LTD 11.4 INDIABULLS REAL

ESTATE

-16.3

RELIANCE COMM 10.7 JAI CORP LTD -15.7

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-

APOORVA HARIHARAN, AVINASH ROY, AVLEEN KAUR, GAURAV MALIK, KISLAY KUMAR, KRISHNA DESHMUKH, KRITIKA SETHI, LISA.T.SAMUEL, POOJA DALAL.

BUSINESS JARGONS BY– AVLEEN KAUR

25 JULY 2011

26 JULY 2011

27 JULY 2011

28 JUNE 2011

29 JULY 2011

Sensex 18871.29 18518.22 18432.22 18209.52 18197.20

Nifty 5680.00 5574.85 5546.8 5487.75 5482.00

DJIA 12592.8 12501.30 12302.55 12240.11 12413.24

HangSeng 22932.29 22572.08 22541.69 22570.74 22440.25

FTSE100 5925.26 5929.73 5856.56 5873.21 5815.19

Gold ($/oz.) 1614.80 1619.90 1614.10 1616.90 1627.20

Crude($/bl) 113.33 113.65 113.40 113.36 -

INR v/s USD 45.15 44.77 44.53 44.30 44.35

INR v/s EURO 64.87 64.36 64.41 64.06 63.58

Market Overhang- An observational theory stating that in certain stocks at certain times, there is a buildup of selling pres-

sure. This occurs as a combined result of sales and a strong wish to sell among those who still hold the stock but fear that selling it

may cause further declines. Depending on the overall liquidity in the stock, a market overhang can last for weeks, months or longer.

Market overhang usually relates to trading in one security but can also apply to larger areas of the market, such as an entire sector.

THE IBS TIMES

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* FIGURES NOT AVAILABLE