The+IBS+Times_134TH+issue

ISSUE - 134 30th NOVEMBER [WEDNESDAY]

SYNOPSIS - KRITIKA SETHI

The IBS Times comes again this week to enrich you with the happenings across the globe. We

try to touch on issues affecting people globally; bringing in our own perspectives to make you

think in an alternative context. Gear up for yet another scintillating read.

The Billions worth empire– The TATA Empire has found a new heir in Cyrus Mistry. How this „new recruit‟ leads the group and if he is able to match up to the reputation of Mr. Ratan Tata is a question that will be answered in the time to come. Throwing light on the issue is our writer in Cover Story this week.

Most of the countries around the world have already introduced it and have even started reaping the benefits of it. India has just embarked upon its journey. This week we will try to bring to you the nuances of the major economic development : the opening up of the Indian doors to FDI in Multi-Brand Retail through the Focus this week.

Diamonds are the girls best friend..!! Backed by this belief project Gili went on to become In-dia‟s first diamond jewellery brand, which was not only modern but affordable too .It shifted the paradigm of jeweller‟s occasional purchase to a purchase for every occasion. Learn more about this brand through our brand track column this week.

FDI,FII, The Euro Zone, the depreciating Rupee with the Dollar getting stronger….all these paradoxical circumstances facing the economies all across the world in the center of discussion in the Opinion Forum this week.

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!

Happy Reading!

Cheers, Kritika Sethi

SYNOPSIS 1 OPINION 5 FOCUS 8

COVER 2 BRAND 6 NEWS @ IBS 9

FAST-TRACK 3 QUICK BITES 7 MARKET 10

COVER STORY– TATA’S NEW - ‘RATAN’ - SHILPI KALWANI “Mysteries are not necessarily miracles.” - Rightly quoted by Johann Wolgang & apt for Tata‟s current situation. Corpo-

rate India was surprised that the low profile scion of an Indian Construction Tycoon will take over the nation‟s most high

profile company. Salt-to-software conglomerate Tata Group said on Wednesday- a selection panel has selected Cyrus

Mistry to succeed Ratan Tata as chairman of Tata Sons. It was widely expected that Tata's half brother, Noel Tata (who is

married to Mistry's sister) would be named Chairman (who is the Managing Director of Tata International). The Tata Sons

have about 100 companies sprawled under the Tata umbrella -- stretching across 80 countries in fields as diverse as auto-

motive, energy, business consulting, steel, IT and telecommunications sectors -- with annual revenues of $83 billion. The

group now owns the Jaguar and Land Rover brands, as well as Corus Steel and Tetley Tea. The company made history in

2009 with the production of the Nano, & also owns the Taj group of hotels. Mistry's family business, led by his construc-

tion tycoon father, Pallonji Mistry, is the largest single shareholder in Tata Sons with an 18.4% equity stock. Mistry's fa-

ther has an estimated net worth of $8.8 billion, according to Forbes. The younger Mistry has been on the Tata board since

2005, taking over a seat vacated by his father. Asked in an exclusive interview with CNN earlier this year what are the

chances a Tata family member would replace him, the 73-year-old Ratan Tata said, "My stepbrother is one of the candi-

dates that is being considered and I don't think it's my lot to say

whether it's 50%, or 90% or 10% (chance)."

From Noel to Cyrus.

People raised eyebrows when Ratan Tata succeeded JRD. No one can

be really prepared for being catapulted into the corner office at a vast

and complex conglomerate, rich with its history and cultural moorings,

nor does anyone really know how a choice will work out. The naysay-

ers had their say in 1993, but they have been proved wrong. So it

would be wise at this stage to wish Mr Mistry well and watch what he

does, rather than pass instant judgement.

Young CEO’s at Tata

“It probably was looked upon as a group where a lot of elderly people worked” says R Gopalakrishnan, Executive Direc-

tor, Tata Sons. It was against this background that Ratan Tata stated in the mid-1990s that there was a need to have young

CEOs. That saw exit of men such as Russi Mody, (Chairman, Tata Iron & Steel Co), Darbari Seth (Tata Chemicals), Ajit

Kelkar (Taj Hotels). Now, meet Brotin Banerjee. He is 35 years old and heads Tata Housing Development, R Mukundan,

42, MD, Tata Chemicals, N Chandrasekaran, 46, CEO and MD and the recent one being Mr.Cyrus Mistry. For a short

period of time a decrease in share prices was observed but the innovative leaders proved themselves at the later stage.

Behind the scenes – More things changing than the group’s boss

This will be the first time that the business head of the group is not in control of the trusts as well. The Tata group has thus

taken an important step towards separating shareholding control from management. To be sure, Mr Mistry‟s family owns

some 16 per cent of Tata Sons stock. This is understandable, in that a non-Tata is heading the business for the first time.

Mistry Effect

A number of Tata stocks opened on a strong note a day after Cyrus Mistry was named as successor to Ratan Tata. The

most valued Tata company, IT giant TCS saw its share price rising sharply in the opening trade to Rs 1069.75.

Mr. Mistry‟s appointment comes at „a critical juncture.‟ Noting that Mr. Tata would be remembered as someone who re-

stored a sense of direction, internal cohesion and, most important, the drive that is key to success in today‟s global market-

place, Mr. Mistry‟s job would be „to take forward (Mr. Tata‟s) global vision and processes.‟ However, even though Mis-

try, as a myriad of pundits in opinion pieces point out, may not bear the Tata surname, yet he comes „as close as an out-

sider could come‟ to emulate the name that rings synonymous with „wealth, ethics and gentility‟.

THE IBS TIMES

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Salt-to-software con-

glomerate Tata Group

said on Wednesday- a

selection panel has se-

lected Cyrus Mistry to

succeed Ratan Tata as

chairman of Tata Sons.

A number of Tata stocks

opened on a strong note a

day after Cyrus Mistry

was named as successor to

Ratan Tata.

FAST-TRACK NEWS - SWATI VERMA Global players cautious of the conditions imposed by India on FDI invite Global supermarket chains welcomed a long-awaited invitation from India to invest in the country's $450 billion re-

tail market, but they fear the small print may keep a lid on investment in the short term. The government insisted

foreign retailers source almost a third of their produce from small industries, invest a minimum of $100 million in

India and spend half of that on "back end" infrastructure. Foreign stores will only be permitted in cities of more than

1 million people, and individual states will decide whether to allow the global giants on to their patch. Such condi-

tions could pose a threat to the successful implementation.

Hungary cut to ‘junk’ by Moody Hungary's right-of-centre government agreed on Friday to mend ties with the EU, the IMF and the country's banks to

stabilise the economy after credit agency Moody's cut Budapest's debt rating to "junk" and triggered a steep market

selloff. It was a dramatic about-face for Prime Minister Viktor Orban, who has ignored warnings that a campaign of

unorthodox pro-growth reforms including a big bank tax and nationalising $14 billion private pension asset was un-

sustainable.

AT&T braces for T-Mobile deal collapse AT&T said it would take a $4 billion charge in case its takeover of T-Mobile USA fails, a tacit recognition of the

decreasing chances that the deal will get through U.S. regulators who say it would destroy jobs and curb competition.

The company faces a long delay at best and may be driven back into the arms of No. 3 U.S. carrier Sprint Nextel -- a

less suitable partner for whom T-Mobile USA would not be worth nearly as much now as it was to AT&T in March.

Rupee volatility to linger till Eurozone crisis resolved : RBI chief Volatility in the foreign exchange market will remain until the euro zone crisis is resolved, RBI governor Duvvuri

Subbarao said on Friday. He opined that the central bank is watching the rupee, but could not say whether it will in-

tervene in forex market directly. The rupee skid nearly 17 percent from a 2011 high reached in late July as risk-

averse investors flee emerging markets, increasing the difficulties for a government already struggling with high in-

flation, slowing economic growth and a widening trade gap.

Apple's iPhone 4S comes to India

The iPhone 4S, the final gadget unveiled during Apple co-founder Steve Jobs' lifetime, hit store shelves in India on

Friday with a starting price of Rs.44,500. At about four times the U.S. retail price where customers buy mandatory

data-service plans, the phone may still find buyers among affluent young professionals in India who are snapping up

iconic brands and luxury items. Media reports last week said Indian fans were unhappy that the smartphone will be

more expensive in India than anywhere else in the world. The new iPhone comes with a faster processor, a better

light-sensitive camera, and voice-activated software „Siri‟.

India needs 30 % of grains output for new Food Bill India is assuming grain purchases at around 30 percent of output in plans to expand its welfare programme, the food

minister said, relying on increased yields and lower wastage to cover extra requirements and keeping exports on the

agenda. The bill, which seeks to expand supply of subsidized food to 67.5 percent of India's 1.2 billion people, is

likely to be introduced before the current session of parliament ends next month and could be ratified into a law by

February 2012.

Russia launches Chinese satellite A Russian Proton-M rocket completed the successful launch on Saturday of an advanced Chinese communications

satellite that should help expand television coverage in parts of Southeast Asia. The Roscosmos space agency said

the AsiaSat 7 satellite was placed in its designed orbit at 0423 GMT after being launched from the Baikonur space

centre in ex-Soviet Kazakhstan on Friday evening.

Flipper-A person who makes an investment only with the intent of selling it off in a short duration to make a profit. For e.g., a day trader who

buys pre-IPO shares, swiftly spinning them out into public markets for a quick profit. It can also relate to a real estate participant who purchases a home,

renovates it and sells it for a profit a short time later.

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NASA in high gear for Mars rover launch The US space agency is poised to launch the most powerful and advanced robotic rover ever built to ex-

plore Mars and hunt for signs that life may once have existed on the red planet. The Mars Science Labo-

ratory, a six-wheeled vehicle powered by nuclear fuel, is scheduled to begin its journey at 10:02 am

(1502 GMT) Saturday from Cape Canaveral Air Force Station in Florida atop an Atlas V rocket.

Cash-strapped private airlines seek Prime Minister’s intervention Chiefs of fraught Indian private airlines on Saturday met Prime Minister Manmohan Singh seeking his

interference to help the carriers tide over the deep financial crisis and were assured that „legitimate‟

grievances would be considered. Sources said the top bosses of all private carriers suggested measures

like rationalizing taxes and duties on jet fuel prices and other items and reduction in airport charges.

Anna Hazare may make his debut on the 'Time' cover soon Anti-corruption crusader Anna Hazare is going places. He is soon expected to figure on the cover of the

prestigious Time magazine. Saturday morning, a team of Time photographers came and clicked Hazare

from different angles at the Yadavbaba Temple complex where he lives. Hazare's nationwide campaign

against corruption and crusade for a strong Lokpal Bill had caught the imagination of the masses, espe-

cially the youth in India, including those in Tokyo and California, besides online and in social network-

ing sites.

Kishenji killing: Postmortem report rules out fake encounter The postmortem report has ruled out possibility of fake encounter in the killing of top Maoist leader

Mallojula Koteswara Rao alias Kishenji. According to the report, six bullets and two splinters from gre-

nades found in the body and all the bullets were fired from a distance.

However, the West Bengal government has already ordered a CID probe, and two days after he was

killed, the state CID has begun a probe into his death.

Yuvraj Singh battling lung tumour Yuvraj Singh has a „non-malignant tumour‟ in his left lung, the reason why the flamboyant left-hander

opted out of the upcoming ODI series against West Indies. Yuvraj had declared himself unavailable for

the one-day series against the West Indies and was also not picked for the Test series in Australia.

Polio nearly eradicated in India: WHO The World Health Organization has said polio is on the verge of eradication in India. WHO spokesper-

son for the polio programme, Oliver Rosenbauer, said the virus was not detected in sewage in India,

though cases surge during his time of the year. His comments came after experts warned that if eradica-

tion fails now, it would be „the most expensive public health failure in history‟. The victory against polio

owes to persistent co-ordinated vaccination drives spearheaded by local officials in affected areas, and

the use of a more efficient vaccine that only targets the circulating strains.

PIIGS– Related to economies of Portugal, Italy, Ireland, Greece and Spain, with regards to sovereign debt mar-

kets. These South-European nations are noted for similar economic environment. The term has been denounced by

many as pejorative; however, it is still widely in use especially because of the European Financial Crisis.

THE IBS TIMES

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OPINION FORUM– SHOW ME THE MONEY! -AKSHAY AGRAWAL One look at the flashing business news bits irrespective of the news channel, and you are bound to notice the over-

size ruby coloured arrow darting downwards with the American Dollar on one side and the paltry Indian Rupee on

the other. Then it hits you rocklike, paltry because its takes a few seconds for the ordinary man to realise that the

dollar is worth more than fifty two Indian Rupees. The first facet of this new discovery of yours is the effervescent

question that despite recession being less in India why is the dollar even moving up; shouldn‟t the rupee be the

strong one? So taking up the onus on thyself, here‟s a brief synopsis of what exactly is happening in the Economy

and more majorly what are its implications!

Though heartbreaking, enlisting the reasons first for the roller coaster ride of the rupee which recently turned into a

tumble. Between August 1, 2011 and November 23, 2011 the rupee has depreciated 18.28 %( point-to-point basis).

The main driver being accused of the crash is the withdrawal by our

„beloved‟ FII‟s. The rather pessimistic view of FII‟s being solely gov-

erned by global developments. Adding to what I would refer as some-

thing more than just fuel to the fire, the ongoing Euro-Zone debt crisis

seems to be intensifying and rescue packages have been of limited

assistance in truly resolving the crisis. It is speculated that the IMF

has about $400 billion to provide funding to the zone but Italy alone

has to refinance $350 billion worth of debt in the next six months!

The scenario in the US also does not offer much respite. Delays in the

policy formulation on the setting of debt ceiling for the state have reflected some lacunae in the management of

government finances. Also the rate of unemployment remains uncontrollably high .Domestic macro-economic pros-

pects as well are weighed down by the high inflation and sagging industrial production, which have duly led to revi-

sion of the growth estimates to just 7.6% for FY12.

Secondly, the strengthening of the US dollar, due to contraction in the investor-risk appetite thereby increasing the

demand for safe haven such as the US treasury, gold and greenback. The Euro has depreciated to the tune of 6.55%

to the dollar in turn making the dollar stronger. Also the widening current-account deficit in Q1 FY12 by $400 Bil-

lion over FY11 is another cause for worry.

The final blow being decline in other capital flows as well. Foreign Direct Investments (FDI) , External Commercial

Borrowings (ECB‟s) and foreign currency convertibles have also slowed down.

Now turning our attention to the implications staring us in the face, the areas of concern can be identified mainly as

three. First, a depreciation of the local currency naturally manifests in higher import costs for the domestic economy

thereby widening the trade and current account deficit even further. Secondly, the fiscal deficit for FY12 was budg-

eted at 4.6% of GDP in February, with the price of oil pegged at USD 100 a barrel. Throughout FY12 so far, how-

ever, the price of oil has been well above this reference rate, hovering at an average of US $ 110 over the last three

months. Oil subsidy for the year is about Rs 240 billion for FY12. This will rise on account of the higher cost of oil

being borne by the government. This in turn leads to an increased burden on Borrowers in the ECB market. Given

the sluggish global conditions there seems to be a definite impact on the exports as well which would otherwise

have received a boost because exports become cheaper in international markets.

Assuming that global uncertainty continues to prevail, exports growth is maintained and capital outflows persist, it

is expected that this depreciation would continue.

Greater Fool Theory Of Investing– A theory that states it is possible to make money by buying securities,

whether overvalued or not, and later selling them at a profit because there will always be someone (a bigger or greater

fool) who is willing to pay the higher price.

THE IBS TIMES

The first facet of this new

discovery of yours is the

effervescent question that

despite recession being less

in India why is the dollar

even moving up; shouldn’t

the rupee be the strong one?

The strengthening of the US

dollar, due to contraction in

the investor-risk appetite

thereby increasing the demand

for safe haven such as the

US treasury, gold and

greenback.

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BRAND TRACK–FORTUNE FAVOURS THE BRAVE- THE STORY OF GILI -POOJA DALAL

Valour is a virtue worth possessing and backed with a belief in an idea, it makes for a complete package of a suc-

cessful business venture. But what would you do if your market research stated an unsatisfactory interest from your

potential customers, and the experienced advised you not to tread any further? But following the same, Mr. Mehul

Choksi trusted his instincts instead. And so, with a dream he went to the Indians and Indians returned his valiant

gesture by buying not only the branded jewellery of his company, but also buying the unconventional idea of jew-

ellery being sold at retail outlets! Thus Mr. Choksi‟s dream project „Gili‟ went on to become India‟s first diamond

jewellery brand, which was not only modern but affordable too.

Gili was born in the year 1994, as the first seller of branded diamond jewellery.

At that time, Indian jewellery market was served mainly by the unorganised

jewellers who depended mainly on their loyal clientele, most of whom knew

them for generations. They operated on the trust that is primary to the nature of

the industry. Thus setting up a retail outlet for something that was looked upon

as a rare and valuable once in a while purchase did not make good business

sense to veterans. But as it is believed that visionaries can see farther than the

tradition, Mr. Choksi saw that time had come for the metamorphosis of the

industry from traditional setup to the retail one. Thus the Gitanjali group

(Mother Company of Gili) was ready to make and sell, but shopkeepers and

retailers would still not stock it. They too predicted the sale of the kind to be

meager and thus did not want to make an investment. But luckily Shopper‟s

Stop was planning to set up outlets in India, and agreed to Gitanjali‟s offer.

Hence that there was no looking back.

Gili was positioned as a lifestyle brand, and intended to offer an affordable style statement to all the ladies. It

shifted the paradigm of jeweller‟s occasional purchase to a purchase for every occasion. The concept clicked well.

Gili moved soon from metros to smaller cities and now has more than 500 outlets and two standalone stores

(known as Gili world). It was the first Indian brand to have stores in other countries like Singapore, Dubai, South

Africa and UK.

Brand building was undoubtedly accelerated by excellent promotions and market penetration efforts, but it would

all have been in vain if the quality of the product had not lived up to the brand image. All Gili‟s jewellery are of

international standards and fabricated with breakthrough technologies to bring to market some of the smallest cut

diamonds and some of the latest designs that are as dynamic as the modern diva it caters to. Its collections are a

blend of tradition and the modern. Some of its collections include The Classical, The Casual, The Opulent, The

Traditional, The Evershine, The Platinum and Gili Signature.

Being aimed at the urbane women who were successful and adventurous, Gili began with „Every Gili has a story‟

promotions which were later changed to „Beautifully you‟. However contemporary the campaign, Gili‟s ads fo-

cused primarily on relationships and the love and affection with which they should be nurtured. In 2008, Bipasha

Basu was signed as the brand ambassador as she epitomised the ambitious free spirited lady that urban women

today aspire to become. She has ever since gelled well with the values that the brand stands for. One of the ads for

a bridal collection went so –

“He walked me to school, Cheered eagerly when I performed.

My diehard fan, my biggest critic!

Someday, he‟ll walk me down the aisle.

But I will always be daddy‟s little girl, -Just like you.”

Though it may be less than 2 decades old, but it feels like it has always existed. It‟s the same with its jewellery, the

design may be contemporary and latest but you know that it‟s going to be a legend someday. It will be a story from

history, in the future, though new it‟s timeless just like all the precious occasions we have in our lives that Gili has

now taught us to treasure, as we treasure our diamonds!

THE IBS TIMES

Being aimed at the urbane

women who were successful

and adventurous, Gili began

with ‘Every Gili has a

story’ promotions which were

later changed to

‘Beautifully you’

Gili was born in the year

1994, as the first seller of

branded diamond jewellery.

At that time, Indian jewel-

lery market was served

mainly by the unorganised

jewellers who depended

mainly on their loyal clien-

tele, most of whom knew

them for generations

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QUICK BITES- NEWS THAT CAN’T BE MISSED ! - ANKIT SHARMA

Big Shots…

Cyrus Mistry to Succeed Ratan Tata.

Vikram Akula steps down, to assist SKS Microfinance in transition.

Vikram Kotak to leave Birla Sun Life.

Company Talks…

Vodafone, HDFC Bank launches mobile banking in Rajasthan.

SBI raises foreign currency deposit rate by up to 100 bps.

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

Siemens posts 29 pc falls in Sept quarter net profit.

BSNL's H1 FY12 revenue for MP Circle grows 8.4% at Rs 402 cr.

Macy‟s shoppers ignore pleas by protesters.

Madoff associate has assets frozen.

Thomas Cook secures new loan deal.

Economy Speaks…

Finance Ministry clears 18 FDI proposals worth Rs 2,126 crore.

India, Nepal to ink double taxation avoidance pact tomorrow.

There's no delay, India-EU FTA to be in final stages by March: European Commission.

Experts push for stronger, wide-ranging India-Africa ties.

India to narrowly miss '07-12 infrastructure targets: Official.

Tough task for Centre to raise funds for infra financing: RBI.

2,000 Crore bonanza for NHAI: Amid slowdown, highways are going for premium.

IDFC demands hike in income tax-saving cap in infrastructure bonds.

Karnataka holding agri-business summit to woo investments.

Foodgrain productivity up 8% at 1,921 kg/hectare in 2010-11.

Draft Food Security Bill likely to go to Cabinet by Dec 10: KV Thomas.

India needs 30% of grains output for new food bill.

The Captains of the Ships…

CMD Syndicate bank – G.M. Sanghvi

Head of Standard Chartered - Haithem Katerji

New Zealand Prime Minister – John Key

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FOCUS OF THE WEEK–FDI IN INDIA’S RETAIL SECTOR- MYTHS AND REALITY!! -AVLEEN KAUR SARNA

Bird Dog- A real estate investing term that refers to someone who spends their time locating properties with substantial investment po-

tential. The intent is to find properties that are distressed and selling at a discount that can be repaired or remodeled and sold for a sizable

profit.

THE IBS TIMES

With a contribution of 14% to the national GDP and employing 7% of the total workforce in the country, the retail

industry is definitely one of the pillars of the Indian economy. It has made India the cause of a good deal of excite-

ment and cynosure of many foreign eyes. Amidst high political drama, the cabinet finally paved the way for the

entry of global retail giants such as Wal-mart, Tesco and Carrefour to open independent multi-brand outlets in the

country. Foreign direct investments (FDI) of up to 51% have been allowed in multi-brand retail and 100% limits in

single-brand retail ventures. But the policy will allow multi-brand foreign retailers to set up shops only in cities

with population of more than 10 lakh as per the 2011 census. The clearance comes with various conditions where

the foreign investors will be required to put up 50% of total

FDI in back end infrastructures. Such infrastructure will in-

clude capital expenditure on all activities, excluding that on

front end units. Also the retailers of single-brand, exceeding

51% limits will need to source at least 30% of the manufac-

tured/ processed products from small industries. The govern-

ment also retained the first right on sourcing agricultural pro-

duce. It is proposed to allow self-certification by the company

with regard to the 50% spend on back end infrastructure, but

with the condition that government could go in for surprise

checks.

The question that arises is that since there is obviously no

dearth of indigenous capital, what is the need for FDI? It is not

that retailing in India is in need of any technology special to foreign chains. The opening of FDI in the retail sector

has been a very sensitive issue as it is widely acknowledged that FDI can have some positive results on the econ-

omy, triggering a series of reactions that in the long run can lead to greater efficiency and improvement in the stan-

dards of living apart from greater integration into the global economy. But the most important factor against FDI

driven „modern retailing‟ is that it is labor displacing to the extent that it can only expand by destroying the tradi-

tional retail sector. As per the belief of some, the entry of foreign players now will most definitely disrupt the cur-

rent balance of the economy and will render millions of small retailers jobless by closing the small slit of opportu-

nity available to them. Although it is in the consumers best interest to obtain his goods and services at the lowest

possible price but this is a privilege for the individual consumer and it cannot in any circumstance, override the

responsibility of any society to provide economic security for its population. Clearly collective well-being must

take precedence over individual benefits. Further ridiculing claims that opening of FDI in multi-brand will lead to

displacement and unemployment, Union Commerce and Industry minister Anand Sharma asserted that this bold

move would lead to creation of 10 million jobs and that the thrust of the policy was for the benefit of the farmers

and to ensure huge inflow of funds into the rural infrastructure. In addition to it, the Reserve Bank of India ex-

pressed the hope that it (FDI in multi-brand retail) is a visible measure that will bring in right capital in the country

which would help in improving the supply chain and contribute in reducing inflation. The government was forced

to take this decision as the rupee has been depreciating at 15% against the US dollar and secondly, inflation stay-

ing at over 9% levels for six consecutive months. India‟s inflation, which is largely driven by high food global

commodity prices plus expansive fiscal policies, is highest among the major economies in Asia, thus monetary

tightening needs to be supplemented by supply side measures to raise potential economic output. Hence the gov-

ernment believes that opening up of FDI in multi brand retail and further liberalization of single-brand retail trade

will facilitate greater FDI inflows besides additional and quality employment. It will also bring in a lot of benefits

to consumers and farmers in terms of quality, price and removal of inefficiencies in the agricultural sector.

Amidst high political

drama, the cabinet finally

paved the way for the

entry of global retail gi-

ants such as Wal-mart,

Tesco and Carrefour to

open independent multi-

brand outlets in the coun-

try.

India’s inflation, which is

largely driven by high food

global commodity prices plus

expansive fiscal policies, is

highest among the major

economies in Asia, thus

monetary tightening needs to

be supplemented by supply

side measures to raise po-

tential economic output.

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NEWS @ IBS– ALL HAPPENINGS IN IBS HYDERABAD! - DEVANSHI PODDAR Unlike any traditional week at IBS, where one has to wait till Friday to shake legs and churn minds, this

week actuated its black magic from the first hour. The hullabaloo barometer stroked the ghostly horizons

with back to back events lined-up through-out the week. Check below the glimpse that frenzied mob at

IBS witnessed this week

COLOURS OF YOUTH

It is a unique initiative by India‟s largest automobile manufacturer, Maruti Suzuki to provide a national

level platform where students from varied backgrounds get a chance to showcase their performance

skills. The eminent panel of judges includes noted musician Mr. Subir Malik (Parikrama) and Ms.Diana

Hayden, international model and former Miss World.

It was a two day event, which started with audition on Day 1. Students from various colleges were in-

vited in IBS to participate in the event. The contest got walloping response from the crowd. Teams were

asked to give performance on Day 2 and later on winners were selected based on their carrying out. IBS

team won the competition and will be representing Hyderabad city in Mumbai for final rounds of the

competition. The people who won the competition were Yathartha Sharma for singing and Ankit Jhun-

junwala , Priyanka Gupta, Vaibhav Judal, Preksha Shah, Rishav Choudhary and Hiral Mehta for dance.

SPEAK UP-CONCLAVE

The club organized the event “Conclave” to test the leadership skills of the participants. A word PI-

RATES (were given to the participants in which each alphabet had a meaning attach to it for example R

in the pirates was related religion. Contestants had to select one alphabet, relate a personality to it and

speak about that personality for 7 minutes. The winner of this competition was Gautam.

TRISHNA CURTAIN RAISER

The event unmasked the opening of Annual Festival of IBS by revelling 4 mascot of Trishna. A 24 hours

online voting line was opened to select the final mascot. Opening of ceremony started with the splendid

performance from the winners of color of youth. College Drama team, Xpressionz staged a dazzling

show and later ball of fire performance by Diatribe, official band of college showcased that this year

Trishna is going to be a massive hit.

STOCKYARD-TRADONOMICS

The club came up with an event on economics of trade called Tradeonomics focused on resource optimi-

zation. In first round teams cost of capital and resource allocation skills were put under fire. Round 2

was about tenders in which teams had to trade among themselves through trades. The final round was

centralized on fulfilling different country demands.The Masters of Ceremony was Ankita and Kishna

and the team who won this game was of Varun Malhotra & Jivesh Katyal.

THE IBS TIMES

1 2 3 4 5 6 7 8 9 10 11

MARKET WATCH - KRITIKA SETHI

The world markets had a disappointing performance over the week. The equity markets across

the globe saw their worst week in two months. Main culprit for this is that there seems to be no

end and no solution for the Eurozone crisis which has dragged for so many months now. Fur-

ther, Germany's inability to sell its 10 year bonds, France's deteriorating rating and Italy's rising

cost of borrowing worsened the situation. Food inflation came back to a single digit once again

after five weeks to a four-month low of 9.01 per cent. The value of the rupee has fallen nearly

14 per cent, to 52.21 against the dollar.Amongst, the sectoral indices, all were in the list of los-

ers except Pharma. Power stocks fell the most by 12.9%, followed closely by the BSE Small

Cap stocks which were down by 10.6%. Announcement on FDI however brought some cheers to the retail counter and the retailing gi-

ant Pantaloon was up by a whopping 26.5%. Other retailing stocks too were up on hopes of sourcing funds from foreign collaborations.

Movers and Shakers of the week

The retail sector was in news this week after the cabinet finally gave approval for Foreign Direct Investment (FDI) in multi brand retail. The de-

cision has been taken to permit up to 51% FDI in multi brand retail. For single brand, the limit has been fully relaxed to 100%. The announce-

ment was appreciated by the domestic retailers. The opening up of the retail sector is expected to bring in much needed capital to fund the growth

of the companies in the sector. It is also going to bring in foreign expertise and technology that will make the sector more efficient. The engineer-

ing space saw Larsen and Toubro (L&T) looking for growth opportunities outside India to deal with the slowdown in the country. The company

had earlier revised its order growth guidance for the financial year to 5%. This was because of increasing competition, high interest rates and

project deferrals. The management's objective is to increase the share of overseas revenues to 15-20% from the existing 10-12%. With the same

objective in mind, L&T has been considering overseas projects lately. In fact, it has already announced US$ 1.1 bn worth of new foreign con-

tracts.

Global Cues:

Indian stock markets witnessed a fall of nearly 4% this week. The markets were very volatile on concerns of weakening rupee, euro zone crisis

and poor fundamentals. Amongst the other world markets, Germany led the losses (down by 5.3%). The German debt agency failed to find buy-

ers for its 10-year bonds. All other markets were on the losing end too with China losing the least (down by 0.8%).

SURGES %Change DOWNFALLS %Change

KOUTONS RETAIL 28.5 JSW STEEL -14.2

PANTALOON 26.5 ABAN OFFSHORE -14.1

APOLLO HOSPITALS 16.2 WELSPUN CORP -12.4

THE IBS TIMES

1 2 3 4 5 6 7 8 9 10 11

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-

AKSHAY AGARWAL, ANKIT SHARMA, AVLEEN KAUR SARNA, DEVANSHI PODDAR, KRITIKA SETHI, POOJA DALAL, SHILPA KALWANI, SWATI VERMA.

BUSINESS JARGONS BY – ANKIT SHARMA

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

Golden Handshake- A clause in an executive employment contract that provides the executive with a signifi-

cant severance package in the case that the executive loses his or her job through firing, restructuring, or even scheduled

retirement.

THE IBS TIMES

1 2 3 4 5 6 7 8 9 10 11

21 NOVEMBER 2011

22 NOVEMBER 2011

23 NOVEMBER 2011

24 NOVEMBER 2011

25 NOVEMBER 2011

Sensex 15,946.10 16,065.42 15,699.97 15,858.49 15,695.43

Nifty 4,778.35 4,812.35 4,706.45 4,756.45 4,710.05

DJIA 11,547.31 11,493.72 11,257.55 - 11,231.78

HangSeng 18,225.85 18,251.59

17,864.43 17,935.10 17,689.48

FTSE100 5,222.60 5,206.82 5,139.78

5,127.57 5,164.65

Gold ($/oz.) 1679.40 1707.40 1690.30 1692.20 1680.30

Crude($/bl) 107.74 108.34 108.32 108.10 -

INR v/s USD 51.22 52.16 52.69 52.63 52.44

INR v/s EURO

69.25 70.40 71.17 70.67 70.06