ISSUE - 139 12th JANUARY [THURSDAY]

SYNOPSIS - SWATI VERMA

Lets welcome this new year with fresh news about the happenings around the globe. The IBS Times comes again to enlighten you further. Get ready for the scintillating first read of the year.

The Lok Pal saga continues and still there are different views that emerged during the de-bate outside the parliament. Firstly, it is was a weak bill not worth passing in the present form. Secondly, it is better to have some sort of Lokpal even if it is not what it ought to be and lastly the bill will create a monstrous institution that will undermine the Indian democracy, especially as it would affect the functioning of legislators and the Prime Min-ister. Get further insights on this political hot potato through Cover Story this week.

As we step forward into this new year, in our Opinion column the writer tries to give a glimpse of what India is poised at. Be it from the point of view of economic growth fore-casts that need to be maintained or taming the inflation, get a comprehensive view of the Indian story from different aspects.

This week through our Brand Track column we are discussing about a time-tested friend who has always helped bring comfort and soothe life's little pains, Crocin is more than a pain and fever reliever. It has also been a maternal first line of defense. Get all the details of the growth trajectory of this brand through this column.

There is infusion of fresh blood in Tata group with appointment of Cyrus Mystry. We get all the insights into his life and how he could change the fortunes of this group through our Focus column.

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

special dose of News @ IBS to give all of you a glimpse of the happenings last week on

campus! Cheers!! Swati Verma

SYNOPSIS 1 OPINION 5 FOCUS 8

COVER 2 BRAND 6 NEWS @ IBS 9

FAST-TRACK 3 QUICK BITES 7 MARKET 10

COVER STORY–INDIA AGAINST CORRUPTION-THE POLITICAL PULSE - AVLEEN KAUR SARNA

The Lokpal Bill failed to become law in 2011. The Lok Sabha passed it after some acrimony, but

the Rajya Sabha did not even vote for it. There were different views that emerged during the de-

bate outside the parliament. Firstly, it is was a weak bill not worth passing in the present form.

Secondly, it is better to have some sort of Lokpal even if it is not what it ought to be and lastly

that the bill will create a monstrous institution that will undermine Indian democracy, especially

as it would affect the functioning of legislators and Prime minister. Many parliamentarians ar-

gued that Indian democracy is one of the best in the world, so why disturb it by creating a new

institution that would have the powers over the people‟s representatives. It is evident that politi-

cians often make public statements only to deny them later, showing utter disregard foe public

opinion.

It was considered that the absence of constitutional status would

weaken the Lokpal as it is better than the statutory status to help

curb corruption. However, India that consists of several such con-

stitutional bodies like the Comptroller and Auditor General and

Central Vigilance Commissioner to check malpractices yet ille-

gality has only grown. Another such constitutional body is the

Election Commission, which has announced the steps to curb the

role of black money in elections but the politicians have proved

cleverer and circumvented it all. The failure of a constitutional

body like the Election Commission to check the growing scale of

corrupt practices has important lessons for the reform of the exist-

ing watchdog institutions and the Lokpal. There are regulatory authorities like the Securities and

Exchange Board of India and the Telecom Regulatory Authority to check private business activ-

ity but they could not prevent the 2G scam or insider trading in the stock markets. Similarly, the

Information Commission oversees the right to information, as increasingly the whistle-blowers

are being eliminated and its success has remained limited to the highly literates. Thus in India,

neither the independence of functioning nor the constitutional status has helped watchdog insti-

tutions to effectively perform their assigned tasks and the reason for the same is that the democ-

racy, the super-watchdog which should deliver the all-round accountability has become weak in

India. The ruling party has played havoc with the watchdog institutions so as to control their nar-

row ends because of which the Lokpal gained momentum. It seems as if the democracy is be-

coming formalistic. The legislatures should check corruption but it cannot be the case if the

elected are beholden to the corrupt or are themselves corrupt. The problem is political and it can-

not be resolved through the technical fixes or by having more laws as they are anyways being

circumvented. A weak democracy presents a no- win situation as the corrupt gets elected and

they misuse their autonomy. Thus, only a conscious public, not rules and law can deliver autono-

mous and incorruptible legislators. That is why today there is a need for political movements that

can change the national consciousness, a task being addressed by the movement against corrup-

tion and foe Lokpal.

THE IBS TIMES

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The failure of a constitutional

body like the Election Com-

mission to check the growing

scale of corrupt practices has

important lessons for the

reform of the existing watch-

dog institutions and the

Lokpal.

The legislatures should check

corruption but it cannot be the

case if the elected are beholden

to the corrupt or are themselves

corrupt. The problem is politi-

cal and it cannot be resolved

through the technical fixes or by

having more laws as they are

anyways being circumvented.

FAST-TRACK NEWS -SHILPI KALWANI

Giffords leads Tucson shooting anniversary remembrance Bells tolled, girls in white dresses danced and Arizona Congresswoman Gabrielle Giffords led a reci-

tation of the Pledge of Allegiance, one year after a shooting spree that claimed six lives and left her

gravely wounded. Giffords, still recuperating from the head wound she suffered in the shooting,

topped off a daylong series of anniversary tributes and remembrances by attending a candlelight vigil

with her husband, retired astronaut Mark Kelly.

Lions Gate nears $400M deal for 'Twilight' maker Lions Gate is close to buying Summit Entertainment, the maker of the teen hit „Twilight‟ series for

about $400 million in cash and stock. Talks on a deal are in the late stages and could be finalized this

week. Summit also has about $300 million in debt linked to its movies. That debt is expected to be

paid off quickly, especially after the last movie in the series, „The Twilight Saga: Breaking Dawn Part

2‟hits theaters in November.

Europe may avoid recession this year, IMF says Europe as a whole may avoid a recession this year and there were reasons to be more upbeat about

prospects for the region, South Africa's Business Day newspaper quoted International Monetary Fund

head Christine Lagarde as saying. The euro-zone scene has changed massively over the last 18 months

or so ,there are reasons to be a little bit more upbeat about the prospects.

BMW aims for top spot in 2012 as luxury sales soar BMW posted record car sales for 2011 and forecast a boom in luxury cars would keep it ahead of ri-

vals this year as the world's number one maker of luxury cars enjoys strong demand from China and

the United States. The Munich-based company said on Monday that worldwide sales of BMW, MINI

and Rolls-Royce cars rose 14.2 percent to 1.67 million last year.

Stock index futures signal mixed open Stock index futures pointed to a mixed open for equities on Wall Street , with futures for the S&P 500

down 0.1 percent, for the Dow Jones up 0.1 percent and for the Nasdaq 100 up 0.1 percent. The unof-

ficial start of corporate earnings season kicks off on Monday when Alcoa , the largest U.S. producer

of aluminum, reports after the bell.

Venezuela's Chavez welcomes ally Ahmadinejad Venezuelan President Hugo Chavez dismissed a U.S. warning to avoid close ties with Iran , denounc-

ing what he said was Washington's attempt to dominate the world as he welcomed the Iranian presi-

dent to the Latin American nation. Iran's Mahmoud Ahmadinejad arrived at the start of a tour to shore

up support from the region's leftist leaders, as tough new Western sanctions aim to isolate the Islamic

republic and target its vital oil exports.

Savior Plan- This type of plan can fail because of high borrowing costs, which may not be paid back quickly enough to ob-

tain a return on the investment. Also, savior plans do not guarantee that the company will begin to operate efficiently after the

buyout.

THE IBS TIMES

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Euro sinks to 16-month low The euro fell below $1.28 for the first time in 16 months, as the eurozone debt crisis rolled on. The

euro tumbled as low as $1.2698, a level last seen in early September 2010, extending losses after

breaching $1.28 earlier this week as US economic data supported the dollar. By 1900 GMT the sin-

gle currency had rebounded to $1.2792, near Thursday's level, but the malaise remained.

UK's Cameron vows to block EU-wide Tobin tax British Prime Minister David Cameron said on Sunday he would veto a European-wide financial

transaction tax unless it was adopted globally, deepening a confrontation with European Union

heavyweights France and Germany.

U.S. moves toward legal action against Swiss bank U.S. authorities are moving toward taking legal action against Wegelin & Co, which could lead to

an indictment of one of Switzerland's last pure private banks, on charges that it enabled wealthy

Americans to evade taxes, according to two persons with knowledge of the case.

Malaysia opposition's Anwar freed of sodomy charge Malaysian opposition leader Anwar Ibrahim's surprising acquittal from sodomy charges is good

news not just for him. It is a court-sent gift for the very government he wants to topple. The verdict

will pre-empt public outrage that a conviction would have sparked in a likely election year and it

also buttresses Prime Minister Najib Razak's claims that he does not interfere with the judiciary and

that his promises of ensuring civil liberties are serious.

NASA questions Apollo 13 commander's sale of list NASA is questioning whether Apollo 13 commander James Lovell has the right to sell a 70-page

checklist from the flight that includes his handwritten calculations that were crucial in guiding the

damaged spacecraft back to Earth. The document was sold by Heritage Auctions in November for

more than $388,000, some 15 times its initial list price.

Tebow rules in OT, too: Broncos 29, Steelers 23 Tim Tebow finally flexed his left arm and found one more fantastic finish up his sleeve. After Ben

Roethlisberger rallied the Pittsburgh Steelers from a two-touchdown deficit, the Denver Broncos

won the overtime coin toss, and on first down, Tebow tucked the ball in Willis McGahee's belly like

he'd done all afternoon.

Olympus sues current president, ex-directors Japan's Olympus Corp has sued its current president and three ex-directors for several million dol-

lars in compensation, sources told Reuters, as the company seeks to draw a line under one of the na-

tion's worst accounting scandals. The maker of cameras and medical equipment filed suit against its

president, Shuichi Takayama, with the Tokyo district court, along with three former executives iden-

tified by investigators as having engineered or helped cover up a $1.7 billion fraud the firms.

Icahn Lift- The name given to the rise in stock price that occurs when Carl Icahn begins to purchase shares in a company.

The Icahn lift occurs because of Mr. Icahn's reputation for creating value for the shareholders of the companies in which he takes

an interest.

THE IBS TIMES

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OPINION FORUM– REGAIN MACRO-ECONOMIC BALANCE BEFORE IT IS TOO LATE -ANKIT SHARMA

Beginning this New Year, on an optimistic note was but natural. However, if we give a deeper thought to the dis-

turbed politico-economic landscape, coupled with the global environment crises, it will become hard to maintain

this sense of optimism for long. Let's take the political landscape first. We have a government that has completed

Year 3 of its five year journey.

After eight years of effort in running a country as complex as India, surely some of these leaders must be tired and

running out of fresh ideas. I am sure the idealism of making things happen must have long ago been replaced by the

enduring slog of simply staying in power. And while power is itself an elixir, there must be those in government

who must wistfully be looking at the opposition benches and envying them for their role of simply being able to

criticize.

Their tails must surely be up, but the wait is still long. Two years is a long time in politics, and while there must be

hope, there must also be some anxiety about the long period of time left. After all, where was the euro zone crisis

last January? Inflation had not yet reared its ugly head and growth was sizzling at close to 9%.

Hence, while the opposition will bay for blood and do its utmost to loosen the grip of the government on power, it

knows that it too must bide its considerable time.

Meanwhile, the 2G scam will now meander its way through the judicial system. This will be a leisurely affair, some

of the accused having already served time, and unless new revelations surface, will slowly begin to fade from public

memory. The public too seems to be getting dulled by more fasts, more debates (between the same faces on TV, and

in Parliament), more CAG disclosures and more mining scandals. It

seems everybody was in on the act all along, something that in any case

mostly everybody knows.

Economically too India‟s not doing great either. It stands on the brink of

an extended slowdown. What could be deduced as a mere possibility at

the beginning of last year has now turned into a reality. The Budget

forecast of 9% growth now seems hopelessly optimistic, as was the 7%

inflation forecast. However, nominal growth will still end up at 16% -

but with 7% growth and 9% inflation - which was always on the cards

even when the Finance Ministry so bravely stood to read out his Budget

and the assumptions therein.

The real tragedy is around the fiscal deficit and the high interest rate

environment. I am not sure whether in the minds of the economic mind-

ers of this government, that feeling of pressure is yet being manifest. As

with many other things this year, the outcome on economic policy action will depend on the elections in Uttar

Pradesh. If the government does better than expected, it might either be emboldened to act with new-found confi-

dence, or it might feel vindicated that reforms don't really matter to their voters. So, it can cut both ways and only

time will tell which way we move.

So, what can the government do to move things forward this year that it did not do last year? What could be the

government's economic agenda for the year?

First, there needs to be a very significant correction of macroeconomic policies. Mercifully, as a result of the base

effect, inflation should moderate, and this will give the RBI room to man oeuvre rates down. This is absolutely criti-

cal. Second, the government must set a much tighter and more believable plan to reduce its fiscal deficit for the next

financial year. This year's number is already shot. Third, day-to-day decision-making in the key economic ministries

needs to restart so that projects are cleared faster and the investment cycle can move forward again. Fourth, coop-

eration with state governments is critical and the Centre must take the lead in this and pass long-pending tax reforms

such as the goods and services tax and the Direct Taxes Code. Finally, financial sector reforms including making

long-term funds, which include FDI, more freely available for infrastructure projects.

The reality is that we all know this. The trick continues to be in making it happen. And with a government that looks

jaded for now, and a country that at least in the short term is losing confidence, we need change to happen fast, else

we will continue our drift into a 6% growth trajectory - which will neither create jobs fast enough, nor will it help

close the gap on the developed world. The alarm bells have gone off and now there is simply no time left. Else,

2012 will be another lost year.

Salad Oil Scandal- One of the worst corporate scandals of its time. It occurred when Allied Crude Vegetable Oil

Company discovered that banks would make loans secured by its salad oil inventory. When the ships full of salad oil would

arrive in the docks, inspectors would test it and confirm that the ship was full of salad oil. that oil floats on water.

THE IBS TIMES

Economically too India’s not

doing great either. It stands on

the brink of an extended slow-

down.

First, there needs to be a very

significant correction of macro-

economic policies. Mercifully,

as a result of the base effect,

inflation should moderate, and

this will give the RBI room to

man oeuvre rates down.

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BRAND TRACK– CROCIN –YOUR PAIN RELIEVING COMPANION - POOJA DALAL

Crocin is a legacy brand, deep rooted in pharmacological history. Over the decades it has

brought relief and a gentle touch of care to perhaps hundreds and millions of people – quickly

and safely. For entire generations, Crocin is more than a pain and fever reliever, it is a time-

tested friend that has always helped bring comfort and soothe life's little pains. It has also been

a maternal first line of defence! As infants, the single drop of Crocin syrup she administered

brought instant relief; to children it was the spoonful of fruity drink and for adults the magical

white pill. At every stage of life there has always been a Crocin to fall back upon!

For centuries, the most used cure for fever was quinine. But it‟s scarcity in the 19th century

forced the „Pharma Community‟ to search for a synthetic preparation that would work the same

way. It led to the discovery of Nacetylpaminophenol – now popularly known as paracetamol.

This formula was launched in commercial form in India by Duphar Interfran Limited (now DIL

Limited) – a Mumbai-based pharmaceutical firm under the brand name of Crocin. Crocin was

sold over the counter (OTC). Thus it was proving to be a major threat to SmithKline Beecham‟s

Calpol- a prescription drug also used for fever and pain relief purposes. Thus the brand Crocin

was acquired by SmithKline Beecham (now Glaxo Smith Kline) in 1996.

DIL had very successfully positioned the brand as a quick cure for

fever (antipyretic). But it was an equally effective remedy for mi-

nor aches. And because the analgesic segment was much larger

than antipyretic market, GSK had to reposition the brand. It took

vigorous marketing campaign and a big budget to turn it around.

Kapil Dev was signed as the brand ambassador for Crocin-pain

relief. Thus GSK laterally expanded the brand to include various

variants of simple paracetamol. This included products like Crocin

analgesic (that is 500mg paracetamol and caffeine), Crocin-Cold

and flu (new drug offered relief from multiple symptoms of colds

such as blocked nose, headache, body ache and mild fever), Crocin

-pain relief and Crocin quick. While most of these products are sold in tablet form, Crocin is

also available in oral liquid dosage form for paediatric use. The paediatric formulation is of-

fered in the form of peppermint-flavoured drops for infants and a strawberry and mixed fruit

flavoured suspension for children between the ages of one and twelve. With introduction of

these new and innovative drug formulations the form of promotions also made a huge differ-

ence. The advertisements included real people from real work situations reaching out for a Cro-

cin to get relief from the pain. This worked in the favour of GSK and today we all acknowledge

the different Crocin‟s for different purposes.

But brand building is not easy for pharmaceuticals. Diseases mentioned under the Drugs and

Magic Remedies (Objectionable Advertisement) Act included fever and thus no advertisement

that claims to cure it can be advertised freely. Furthermore not much differentiation is possible

where analgesics are concerned. But GSK overcame the challenge by rigorous R&D. It intro-

duced ingredients like caffeine etc were added to its existing formulation. Also there exist two

forms of cures for fever. Aspirin based and paracetamol based drugs. Extended use of aspirin

based drugs resulted in many side effects such as liver toxicity, gastrointestinal bleeding, gastri-

tis, liver-related problems and dizziness, amongst others. In contrast, paracetamol based drugs

were very safe. This was tapped as a USP by Crocin and thus safety and trust became the

propositions on which Crocin was based. Thus out of a total of 33 million people who reach out

for a paracetamol everyday, 18% choose Crocin!

So when faced with a big project or voluminous assignment, take the stress in your stead and

don‟t forget to keep your friend-Crocin at hand to keep at bay the pain that comes with gigantic

opportunities.

THE IBS TIMES

This worked in the favour of

GSK and today we all

acknowledge the different

Crocin’s for different pur-

poses.

Crocin is more than a pain

and fever reliever, it is a

time-tested friend that has

always helped bring comfort

and soothe life's little pains.

It has also been a maternal

first line of defence!

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QUICK BITES- NEWS THAT CAN’T BE MISSED ! -SWATI VERMA

Big Shots…

A R Sekar acting chief New India Assurance

NK Nanda appointed acting CMD of NMDC

Lombard Odier hires ING Investment Management's Pranay Gupta for first Asia CIO role

Grant Thornton India appoints Munesh Khanna as Senior Partner

Private lender ING Vysya Bank today appointed Sanjay Shukla as the head for consumer assets and sales; he is a former

business head of TCHF

Company Talks…

Bajaj Hindustan net profit dips by 48% in FY'11

Lombard Odier hires ING Investment Management's Pranay Gupta for first Asia CIO role

Rajeev Agarwal of BSNL to join Trai as Secretary

Daiwa‟s local arm appoints new research head Kartik Mehta

JP Morgan elevates Namdev Chougule as head of fixed income vertical

Reliance invests in TV18 group, gains content

Raj Kumar appointed ED of Indian Bank

Wipro replaces highest paid executive Martha Helena

Thomas Cook dumps directors in leadership clearout

MRF net up 70% for year ended Sept 2011

Reliance Industries profit may fall 22% on quarter: Credit Suisse

Nifty 50 companies including Infosys Technologies and Bharat Petroleum reversed profit drop due to extraneous factors

Asian Paints: Competition, rising ad spend a negative

Rajeev Agarwal of BSNL to join TRAI as Secretary

Economy Speaks…

India's real GDP to touch $2.5 trillion by 2021: PHD Chamber

PMO to monitor capex plan of state-run firms

Labour unions seek higher returns on SDS for better EPF yield

Government determined to pass Companies Bill in Budget session: Corporate Affairs Minister M Veerappa Moily

Credit Suisse expects 1.25% cut in India interest rates

New currency security features to reduce counterfeiting: Pranab Mukherjee

Forex reserves dip $646 million in 2011

India's forex reserves fall to $296.688 bn

RBI relaxes overseas borrowing guidelines

Government committed to infra projects: Prime Minister Manmohan Singh to industry

Narendra Modi's Rs 78,000 cr hi-tech city GIFT to try new concepts; may shape future city technologies

Tariff, purchasing pact revisions may help government meet power target

The Captains of the Ships…

Finance Minister- Pranab Mukherjee

Tata group CEO- Cyrus Mystry

RBI Governor- D. Subburao

THE IBS TIMES

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FOCUS OF THE WEEK– CYRUS MISTRY- NEW BLOOD IN THE KINGDOM! - ATREYEE SENGUPTA

E-Mini -An electronically traded futures contract on the Chicago Mercantile Exchange that represents a portion of the nor-

mal futures contracts. E-mini contracts are available on a wide range of indexes such as the Nasdaq 100, S&P 500, S&P Mid-

Cap 400 and Russell 2000.

THE IBS TIMES

2011 bid farewell to many surprises and uprisings but the one puffed-up mystery still remains to be the

successor of Ratan Tata, chairman of $83 billion (Approx) Tata Empire. This 43 year old mystery man

is none other than the youngest son of construction tycoon Pallonji Shapoorji Mistry who, valued at $8.8

Billion also happens to be the holder of 18.5 per cent stake in Tata Sons, making him the single largest

shareholder in India's largest private conglomerate Tata Group. Cyrus Mistry currently the Managing

Director of Shapoorji Pallonji Group is not actually a surprise choice but happens to be a perfect fit as

told by the industry insiders.

HIGHLIGHTS OF HIS ACHIEVEMENTS:

A graduate from Imperial College, UK (1990) in Civil Engineering and a M.Sc. in Management from

London Business School (1997).He took his family business to new heights by evolving it from pure

construction to executing projects under design & build and

EPC (Engineering, Procurement and Construction) delivery

methodologies, implementing complex projects in the marine,

oil and gas, rail sectors(Delhi Metro). Under Cyrus' steward-

ship, the companies registered many firsts in India – construc-

tion of the tallest residential towers, the longest rail bridge, the

largest dry dock and the largest affordable housing project.

The group's international construction business is now present

in over 10 countries. Cyrus was responsible for building the

infrastructure development vertical in the Shapoorji Pallonji

Group starting in 1995 with a 106 MW power project in Tamil Nadu followed by the development of

the India's largest biotech park near Hyderabad in partnership with the Andhra Pradesh government. The

Infrastructure vertical has also developed two large road projects totaling an investment of USD 550

million. Shapoorji Pallonji Group's recent foray into agriculture & bio fuels, with the leasing of 50,000

hectares in Ethiopia, was also overseen by Cyrus P. Mistry. On the personal front Cyrus is described by

his friends and colleagues as a soft-spoken, reserved and candid individual who believes in consensus.

However his sharp business acumen and meticulous approach makes him more outgoing as most of the

time he is seen supervising at the sites rather than sticking out at his cabin. His management style is par-

ticipative and is known for his perfection. His professional counterparts describe him to be very high on

emotional quotient and someone who prefer a level-headed approach towards problem-solving.However

this salt-to-software conglomerate Tata group is supposedly hungry for more. Cyrus Mistry is not only

expected to prove his critics wrong but also doubly assure his status as the closest associate and confi-

dante of Ratan Tata who has complete confidence in the choice of the selection committee which is evi-

dent from his statement, "the appointment of Cyrus P Mistry as deputy chairman of Tata Sons is a good

and far-sighted choice. I have been impressed with the quality and caliber of his participation, his astute

observations and his humility." Many believe that exactly two decades ago even the successor of J.R.D.

Tata was all but unknown and here he is successfully sailing the ship with the same vigor unperturbed

by the occasional hailstorms. Ratan Tata is confident that his one year guidance will be enough for Mr.

Mistry to take up the challenges ahead. All said and done Mistry might have been an unknown entity in

the corporate world till now but what we have seen or heard is just the tip of the ice berg. A real warrior

can only be tested in the face of difficult times and Cyrus Mistry is yet to be discovered.

Under Cyrus' stewardship,

the companies registered

many firsts in India –

construction of the tallest

residential towers, the long-

est rail bridge, the largest

dry dock and the largest

affordable housing project

"the appointment of Cyrus

P Mistry as deputy chair-

man of Tata Sons is a good

and far-sighted choice. I

have been impressed with the

quality and caliber of his

participation, his astute

observations and his humil-

ity."

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NEWS @ IBS– ALL HAPPENINGS IN IBS HYDERABAD! - KRISHNA SHARMA

9th

INTERNATIONAL CONFERENCE ON BUSINESS AND FINANCE

IBS Hyderabad hosted 9th International Conference on Business and Finance from 6th

Jan, 2012 to 7th Jan, 2012 on Business and Finance. The inaugural session was ad-

dressed by Dr. J Mahender Reddy, Vice Chancellor, IFHE University, India and Sri

Rakesh Sharma, Chief General Manager, State Bank of India.

The conference was graced by noted speakers like Prof. Ajay K. Singh (Professor and

Bolton-Perella Chair of Finance, Perella Department of Finance, Lehigh University,

USA) and Sri Sudip Bandyopadhyay (MD and CEO, Destimoney Securities, Mumbai,

India). Apart from this there were highly educated research scholars not only from dif-

ferent states but also from countries like U.S.A. and Germany. The conference ended

with the valedictory session comprising the best paper awards given to three awardees

along with a cash prize of Rs. 10,000. The vote of thanks was given by Dr. Vighneswara

Swamy (Conference Chair -ICBF 2012, IBS-Hyderabad).

KAIZEN -OFERTAS

KAIZEN the operations club of IBS Hyderabad came up with what it is best at - the op-

eration concept in the form of game named “OFERTAS”. This game was basically

based on Supply Chain Management (SCM). Here the participants were needed to con-

trol their price by controlling the SCM. The participants needed to fix the price of their

product. The winners of this event were “Shabrish & Sriharsha”.

V.A.P.S - IPL

IBS Hyderabad successfully conducted IPL from 6th Jan 2012 to 8th Jan 2012 for all the

cricket frenzy people. The boys and girls team were formed with equal enthusiasm and

élan. People who were best at it formed their teams and participated at their complete

liberty.

INFINITY– DABBANG

Once again on 7th Jan, 2012 the entertainment club of IBS Hyderabad Infinity came to

relax the students from the study pressure. Entire time hero Salman Khan‟s movie

„Dabbang‟ was enjoyed by the student this weekend.

THE IBS TIMES

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MARKET WATCH - KRITIKA SETHI

The first week of 2012 started on an optimistic note, witnessed by a change in investor focus from the

European woes to the developments in the US economy. A series of data including lower unemployment

rate in the US helped the world markets post considerable gains this week. The Indian stock mar-

kets were up by 2.8% during the week. All the sectors ended in the green apart from FMCG which were

down marginally by 0.1%. Positive global cues along with lower food inflation number helped boost

investor confidence in the market during the week. In fact, food inflation entered into the negative terri-

tory for the first time in about 6 years, raising hopes that the Reserve Bank of India could start cutting

interest rates soon. Government of India gave a New Year gift to the stock markets this week. On last Sunday, an announcement was made

thereby allowing qualified foreign investors (QFI) including overseas individuals to invest directly in Indian stock markets. This has been done

with the intention of widening the profile of investors and attracting more foreign funds in the wake of foreign institutional investors (FIIs)

money being withdrawn from the markets. The move is also expected to reduce market volatility and deepen the Indian stock markets. Earlier,

QFIs were permitted to invest only in mutual find schemes. The foreign nationals could earlier invest into Indian markets through opening ac-

counts with SEBI registered FIIs or through participatory notes. The week saw an all round positive performance. All sectoral indices, except

FMCG which was down by 0.1%, ended the week on a positive note. Gains were led by banking up to by 6.4% and capital goods stocks which

was up by 5.9%.

Movers and Shakers of the week

News from the automobile sector, Tata Motors is planning to expand its operations in Myanmar. With Myanmar expected to go for political re-

forms thereby attracting more investments, Tata Motors does not want to miss the opportunity. Although the inflation has started showing signs

of slowdown, we will have to wait for RBI to start reducing interest rates. In its recent policy review, the RBI has indicated chances of rate cuts

in future but it will be quite a while before it actually happens and gets reflected in corporate financial statements. Automobile com-

pany Mahindra & Mahindra Ltd. (M&M) is likely to launch six new models by the end of the next fiscal. This would include a compact sports

utility vehicle (SUV) and a shorter version of its sedan Verito. It will venture into the eco-friendly technology segment through the launch of

electric car NXR. M&M will introduce 49 tonne truck Navistar and a van based on the platform of commercial vehicle Maxximo too. Three of

these products will be launched by the end of 2012.

Global cues Amongst the other world markets, the investor sentiments were optimistic. Barring the markets in China which were down by 0.5%, Japan by

0.8% and France down by 0.7%, nearly all the global stock markets ended the week higher from where they started.

SURGES %Change DOWNFALLS %Change

MMTC 73.1 STERLING BIOTECH 22.3

HINDUSTAN COPPER 66.2 ADANI ENTER- 14.3

RCF 25.2 GUI STATE 9.8

THE IBS TIMES

1 2 3 4 5 6 7 8 9 10 11

15,517.92

15,939.36 15,882.64 15,857.08 15,867.73

12,397.38

12,418.42 12,415.70

12,359.92

12000

12050

12100

12150

12200

12250

12300

12350

12400

12450

12500

15,000.00

15,100.00

15,200.00

15,300.00

15,400.00

15,500.00

15,600.00

15,700.00

15,800.00

15,900.00

16,000.00

02-Jan-12 03-Jan-12 04-Jan-12 05-Jan-12 06-Jan-12

SENSEX

DJIA

MARKET WATCH

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relying upon them. Though much care has been taken to present the facts without error, still if errors creep in, necessary feed

back will be always welcomed. Editors will not be responsible for any undertakings. The newsletter is not meant for sale and

hence, no part of the newsletter should be used without the prior permission of the editorial team.

Sources- The Economics Times, The Hindu Business Line, Times of India, Business Standard, Financial Ex-press, Financial Times,

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yahoofinance.com, Business Today, India Today, Investopedia.com, Wikipedia.com, DNA, The Deccan Chronicle, The Hindu,

The Tele-graph.

EDITORIAL TEAM-

ANKIT SHARMA,ATREYEE SENGUPTA ,AVLEEN KAUR SARNA, DEVANSHI PODDAR, KRITIKA SETHI, KRISHNA SHARMA,POOJA DALAL, SHILPI KALWANI, SWATI VERMA.

BUSINESS JARGONS BY – SHILPI KALWANI

7 NOVEMBER 2011

8 NOVEMBER 2011

9 NOVEMBER 2011

10 NOVEMBER 2011

11 NOVEMBER 2011

Sensex - 17569.53 17362.10 - 17192.82

Nifty - 5289.35 5221.05 - 5168.85

DJIA 12068.39 12170.18 11780.94 11893.79 12153.68

HangSeng 19677.89 19678.47 20014.43 18963.89 19137.17

FTSE100 5510.82 5567.34 5460.38 5444.82 5545.38

Gold ($/oz.) 1791.90 1789 1760.40 1766.80 1788.5

Crude($/bl) 111.08 113.79 113.13 111.67 113.76

INR v/s USD 49.04 49.40 49.59 50.16 50.75

INR v/s EURO

67.59 67.99 68.31 68.81 68.86

EAFE Index-An index created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the perform-

ance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

This international index has been in existence for more than 30 years.

THE IBS TIMES

1 2 3 4 5 6 7 8 9 10 11

2 JANUARY 2012

3 JANUARY 2012

4 JANUARY 2012

5 JANUARY 2012

6 JANUARY 2012

Sensex 15,517.92 15,939.36

15,882.64

15,857.08 15,867.73

Nifty 4,636.75

4,765.30 4,749.65 4,749.95

4,754.10

DJIA - 12,397.38 12,418.42 12,415.70 12,359.92

HangSeng - 18,877.41 18,727.31 18,813.41 18,593.06

FTSE100 - 5,699.91 5,668.45

5,624.26 5,649.68

Gold ($/oz.) 1586.70 1598.20 1613.90 1624 1616.60

Crude($/bl) - 109.40 111.73 - -

INR v/s USD 53.80 53.87 54.02 53.92 53.68

INR v/s EURO

69.69 69.68 70.24 70.11 69.10