SENSEX 16,745.35 NIFTY 5,031.95 DOLLAR Rs47.80 EURO Rs 65.03 GOLD Rs 28,160 OIL $109.18
MOST IMPORTANT ITEMS IN THE LIFE OF AN ENGLISH ADULT PERSON:
The London science Museum asked 3000 adults about the most important items and services in their lives. Coming in as the most important thing was sunshine. Fresh water came in at number three, being beaten for second place by? No, not food. The best ranking food got in the list was 16th position for fresh vegetables. Number two was an internet connection. The fourth place went to a refrigerator, and the sixth place went to britain’s National Health Service. So what was number five? Facebook came in at the fifth position. Yes, people would rather have access to Facebook than email (which was number eight), they’d even prefer it to a flush toilet (number ten) or a mobile phone (number eleven).
10th anniversary of terrorist attacks of 11-sep-01: 3000 people lost their lives from 90 different nations.
Diesel cars give petrol cousins a run for their money: Diesel cars being more pricy have more sales as in comparison with petrol cars which are cheaper. Diesel is 53% cheaper in all metros, sales risen to 45% (Jan 2011) and 51% (July 2011) from 39% in (July 2010)
Embattled power COS may default on loan for Rs 135000 crore: half of the loans sanctioned are unutilized and fund flow to new projects is almost stop. Indian power companies have slowed down project implementation and are unable to operate new plants targeted. According to RBI staggering of Rs.2, 92,342 Crore which is equal to the collection of corporate tax in India last year. The reason behind it is that power companies have not been able to make progress on project sites, due to non availability of coal, environment clearance and problem of land acquisition. Banks and other financial corporations are not ready to disburse loans if companies does not have fuel supply contract.
B C Khanduri under oath in Uttrakhand as new CM, greeted by Governor Margaret Alva.
CBI team raided at houses of Gurulinge Gowda and Rajashekara Gowda who are the aides of Janardhana Reddy: Reddy is under custody, arrested by CBI for illegal mining of iron ore on A.P n Karnataka border by OMC (Obulapuram Mining Company).CBI ceased 3 crore cash, 30 kg gold and other several documents and registered a case that Reddy and his supporters were carting the iron ore illegally an mining ore behind the permitted boundaries and destroying forest health. Court agreed on 6 days custody and his bail was rejected.
Amar Singh : Rajya Sabha MP and former Samajwadi Party MP Amar Singh was arrested on Tuesday and sent to judicial custody until Sep 19 for alleged involvement in the cash-for-vote scandal that rocked the parliament in 2008.Amar Singh entered the Tis Hazari court around 12.35 p.m., surprising the media and the court staff, including Judge Sangita Dhingra Sehgal.The leader marked his attendance, pleading before the judge that he could not appear in the morning as he is suffering from infection in a kidney which was transplanted one and a half years ago.'My body has built resistance against the kidney as it is a foreign element,' Amar Singh said.'I was at home but seeing the TV channel showing that I am not appearing before the court, I rushed to the court personally as I have faith in judiciary and the Constitution of India. So, I have moved my interim bail,' he added. He also submitted his medical certificate along with medical history. The court asked his doctor to come before the court but the doctor was not present in the courtroom. Opposing the bail application, public prosecutor Rajiv Mohan said the leader might tamper with the evidence or may flee. 'Once the accused surrender before the court, they have to be taken into custody,' he added.
Narendra Modi: Launching his three-day 'sadbhavna' fast for peace, unity and harmony, chief minister Narendra Modi on Saturday said Gujarat was his family and the day was not far off when the world would discuss it as a model state. Top BJP leaders, including LK Advani, attending the function, heaped praise on Modi's governance. Meanwhile, the Congress attacked Modi for his fast accusing him of "wasting" public money through his "drama" and said NDA would collapse if Modi was projected BJP's prime ministerial candidate. The party also said Modi wanted to wash away the "stains" of his past "crimes" through this fast.
High Interest rates - High inflation: RBI raised key rates 11 times, cumulative 325 basis points since March 2010.Wheras inflation was 9.22% in July 2011 and is estimated as 9.78% for august.
Auditors raise doubts over Kingfisher’s survival: Survival of the airline depends on promoter’s ability to infuse equity. Accumulated losses are more than 50% of airline net worth. Over 400 crore INR TDS and PF due.
RBI Sells USD: RBI joint banks in Indonesia and South Korea in selling US dollars for the first time to save local currency since Lehman Brothers triggered credit crisis to avoid disorderly movement in the currency to its worst levels in two years.
New Committee set up to see if CBI cases are pending for more than 10 years: UPA government has announced a series of measures to tackle corruption, including 71 special CBI court and 3 months limit. Bureaucrats could lose up to 20% pension if found guilty of corruption.
By Preeti Bhatia (NLC) (PGPM 1st Year)
2. THE CAREER SERVICE DIVISION SECTION
The guest lecturers series held at the ISBF campus are detailed as follows:
CORPORATE PLACEMENT INTERFACE
Greenpeace India (13th September 2011, Tuesday)
By Apoorva Mahajan (NLC) (PGPM 1STYear)
NATIONAL HRD NETWORK: YOUNG LEADERS:
SUCCESS CODE (7th YOUNG MANAGERS CONFERENCE- 2011, 9th & 10th September 2011)
TEACHER’S DAY WAS CELEBRATED ON 5TH SEP 2011 AT ISBF PGPM CAMPUS
3. STOCK & MUTUAL FUND INFORMATION
GAIL. (CMP 432.15): Because of:
- Gas Authority of India Limited (GAIL) is the largest gas transmission and marketing company in India
- The company is expanding its pipeline network by another 6600 kilometers within next 3 years.
- There has been several gas finds in India and GAIL will be one of the key beneficiaries.
- The gas demand in northern India is expected to grow at 25% for the next 3 years and GAIL will benefit from the huge demand.
Key Metrics
P/E Ratio | 15.40 |
EPS (Rs.) | 28.07 |
Revenue (Rs. Cr) | 32,458.64 |
Face Value (Rs.) | 10.00 |
Net Profit Margin (%) | 10.80 |
Last Dividend (%) | 55.00 |
Return on Average Equitity | 151.78 |
Shares | 1,26,84,77,400 |
Tata Steel (CMP 453.50):
Because of: Tata Steel stands apart from its peers due to integration initiatives at its European operations and strong domestic performance. Fully-integrated Tata Steel is somewhat shielded from input price fluctuations. Its recent decision to sell Teesside Cast Product for $500 million will help in reducing its liquidity concern and lower interest payments. It is also integrating its European operations by taking stake in New Millennium’s direct shipping ore (DSO) project, which will supply cheap iron ore to it. It plans to source coking coal from its Benga project in Mozambique. At the current market price of Rs 658, the stock is trading at around eight-and-a-half times of its FY11 expected EPS of `76.8, which is lower than all its peers in steel industry.Neither JSW nor Steel Authority of India has the kind of raw material arrangements that Tata Steel enjoys. The company is 100 percent self-reliant and will not be affected by price increases in iron ore or coking coal. At the same time, it will fully benefit from increase in steel prices. This will lead to improved profitability. It is also the cheapest steel stock among its peers.
Key Metrics
P/E Ratio | 6.34 |
EPS (Rs.) | 71.58 |
Revenue (Rs. Cr) | 29307.55 |
Face Value (Rs.) | 10.00 |
Net Profit Margin (%) | 22.81 |
Last Dividend (%) | 120.00 |
Return on Average Equitity | 487.55 |
Shares | 95,92,14,450 |
By Shreshth Uppal (MCC) (PGPM 1ST Year)
4. THE FINANCE & MARKETS SECTION
BANKING & FINANCE
Reserve Bank of India hikes rates again
All loans are set to become costlier, with the Reserve Bank on Friday hiking the key interest rate for the 12th time since March, 2010, by 25 basis points to rein in high inflation. With today's decision, the short-term lending (or repo) rate at which banks borrow from the RBI stands increased to 8.25 per cent and the short-term borrowing (reverse repo) rate at which banks park their funds with the RBI to 7.25 per cent. Headline inflation rose to 9.8 per cent in the month of August from 9.2 per cent in July this year. Despite the RBI hiking rates several times since March, headline and food inflation are close to double digits.
Axis Bank approves Enam deal; to get $57 million from unit
India's No.3 private lender Axis Bank said on Friday its board has approved the transfer of Enam Securities' investment banking and equities businesses to self, which will be eventually sold to the bank's wholly owned unit for 2.74 billion rupees ($57.6 million).Late last year, Axis Bank had said it will buy the two units for $456 million in an all-stock transaction, but regulatory hurdles prevented the acquisition to take effect. The structure, announced on Friday, broadly retains the original deal contours, but now involves a cash payout to Axis Bank from its own unit for transferring Enam's businesses. "It's an accounting treatment mainly to comply with the regulations," a senior official at Enam Securities, who did not want to be named, said. The Reserve Bank of India, in April, had given an in-principle approval to the deal but had asked the bank to revise its scheme of accounting and eventual structure for the new business.It had also stipulated that no shareholder of Enam Securities acquiring shares of Axis Bank under the scheme of arrangement would be eligible for being a director on the board of the lender. Axis had since been reviewing the deal and had in July sought some modifications to the approval granted by the central bank. Enam shareholders will be issued 13.7 million shares on the basis of the agreed swap ratio of 5.7 shares of the bank for every one share held, Axis said in a statement. The Enam businesses that Axis is absorbing generated pre-tax profit of 920 million rupees ($20.3 million) on operating income of 2.42 billion rupees in the fiscal year that ended in March 2010.
MARKETS & FINANCE
Tata Motors rallies over 15% in three sessions; Analysts recommend 'BUY’
Shares of Tata Motors Ltd surged over 7% on Friday after reporting a 3% year-on-year growth in its global sales at 87,459 units during the month of August. The shares of the auto major reeled under major selling pressure recently on growing concerns of declining sales of its passenger vehicles (PV) in the domestic market and overall slowdown in global markets which could hurt sales at its luxury Jaguar and Land Rover Unit. Sales of luxury brands from Jaguar Land Rover were up 31 per cent at 21,242 vehicles in August 2011, Tata Motors said in a statement. While sales of luxury sedans of Jaguar brand were down by 10 per cent last month to 3,409 units, Land Rover sales were up by 43 per cent at 17,833 units, it added. "Land Rover sales are expected to continue the dream run on the back of the recent launch of Evoque, which has already amassed 20,000 booking orders," according to a report by LKP Securities Ltd.
ONGC FPO: Rs 12,000 crore issue deferred; Pranab Mukherjee to take final decsion
ONGC's Rs 12,000-crore follow-on public offer (FPO) was under a cloud late on Thursday as bureaucrats and bankers bickered over pricing, while investors were worried about uncertainties in the government's subsidy regime in the oil sector. Some bankers managing the issue, which was scheduled to open next Tuesday, said the timing of the issue would be finalised at a meeting with the department of disinvestment on Friday. The move to defer the issue gathered steam a day after a team of bureaucrats and top ONGC officials returned from a series of international road shows. One banker said some potential US investors were reluctant to invest in emerging markets, and were also concerned about the PSU oil explorer's subsidy burden. The government usually asks upstream companies, including ONGC, to bear one-third of the subsidy burden of oil marketing companies (OMCs) but at times the burden is much higher. Analysts say investors need a clear government policy on subsidies to be able to take an intelligent investment decision. "We will take a formal call on the timeline of the issue on Friday," said a banker who is part of the share sale.
PERSONAL FINANCE
Who is liable to pay wealth tax
Wealth tax can be levied if an individual's wealth crosses 30 lakh. It is taxed at 1% of the wealth. Who is liable to pay wealth tax? Individuals, HUFs and companies (other than not-for-profit companies registered u/s 25 of the Companies Act, 1956) have to pay wealth tax.
Inclusions: Residential house (including a guest house) and commercial building; Jewellery, gold and other precious metals, including articles made of precious metals;Yachts, boats and aircraft (other than those used by the taxpayer for commercial purposes); Urban land; Cash in hand in excess of 50,000 of individuals and Hindu Undivided Families; Motor cars (other than those used in taxpayer's hiring business or used as stock-in-trade).
Exclusions: One house or part of a house or a plot of land belonging to an individual or a Hindu Undivided Family;A plot of land comprising an area of five hundred square metres or less;Moneys and the value of assets brought into India by an Indian citizen or a PIO on his permanent relocation to India and the value of the assets acquired by him out of such moneys within a year immediately preceding the date of his return and at any time thereafter;Any house which is occupied for the purposes of tax payer's own business or profession;Any residential property that has been let out for a minimum period of three hundred days in the financial year; Any property in the nature of commercial complex/establishment.
A good time to have bank fixed deposits
Amrit Kumar couldn't have asked for a better time to retire. Averse to taking risks, he parked his savings in bank FDs. Six months ago he was earning 8% a year on his deposits But after the public sector bank where he has his FDs repeatedly revised interest rates, he is earning 10%. Had he opted for one of the older private players such as Laxmi Vilas Bank or Karur Vysya Bank, the 61-year-old could have earned more. Those like Kumar who have Rs 25 - 30 lakh in FDs, difference of a percentage point, means a lot. His earnings on these deposits have jumped from Rs 2.4 lakh a year, six months ago, to around Rs 3 lakh (pre-tax ) now. Those who believe in FDs have not had it so good, especially when there's volatility in other assets. Chances are they'd be in for a bigger bonanza, given that RBI is likely to increase interest rates further. Experts say as of now deposits offer better returns than PPF or post office term deposits. While this gap is likely to stay, there may be limited gains for depositors since demand for credit has slowed. "Besides, RBI has put restrictions on banks investing liquid funds. So..., there is lower pressure," PNB chairman and MD KR Kamath says.
Transfer balance on credit cards; repay dues at cheaper rate
You can shift the outstanding amount on your credit card to another card and repay the dues at a cheaper rate or even "zero" rate of interest. Banks often use this as a sales pitch to induce credit card customers to opt for a balance transfer. How does it work? The customer can either opt for a new card or transfer the outstanding amount to a less used card. The credit limit of the new/less used card will reduce to the extent of the balance transferred to the card. For example, if you are servicing a credit card debt of Rs 1 lakh and the credit limit of the unused/new card is Rs 2 lakh, the credit limit will be reduced by a lakh once you opt for balance transfer The banks cash in on the fact that the interest rate is lower or close to zero on such balance transfers. Even as this rate may vary from bank to bank, still the balance transfer rate will be much lower than the rate you pay on credit card outstandings. The credit limit of the new card or the less-used card on which you want to transfer the balance amount, reduces in proportion to the balance transfer amount. Say the credit limit of your card is Rs 25,000 and you have opted for a balance transfer of Rs 10,000, then the credit limit on your original card will be reduced to Rs 15,000. There is an upper limit on the amount that can be transferred, which can vary from bank to bank.
CORPORATE FINANCE
Ambitions beyond SUVs, M&M to take off in aviation
The Mahindra Group started out trading steel before assembling jeeps and commercial vehicles eventually making deep tracks as the country's largest manufacturer of tractors and SUVs.Its climb was accelerated when Harvard-trained Anand Mahindra joined the family's auto flagship Mahindra & Mahindra in 1991 muscling in what some call frugal engineering, developing cars like the Scorpio at a fraction of what it would have cost Detroit.M&M is currently working on a dream project to create a global SUV to be launched later this year. "It is called the global SUV because we have designed it with global parameters in mind," Mahindra said.This auto major has recently acquired two small Australian aerospace companies and is heading towards the aviation sector. "We have designed this aircraft with the National Aeronautics Laboratory and that plane is due to fly anytime now, he added.
IndiGo to increase flights to Singapore
India's low-fare airline IndiGo has said it will increase flights to Singapore as the current overall limit, permitted by the air services agreement between
the two countries, remains underutilised. As of now, the Indian side does not even utilise 50% of the flights allowed under the agreement, which leaves scope for increasing flights, IndiGo president Aditya Ghosh told PTI. "But, we hope, this will now change and as we increase flights," said Ghosh, who launched IndiGo's first low fare service on September 15 to Singapore. IndiGo, though low cost airline, flies under the scheduled air flight agreement between India and Singapore, he pointed out. Ghosh sees a further increase in passenger traffic between the two countries, and has planned a number of holiday packages both ways as IndiGo increases flights to Singapore from "one per day to at least two and preferably three per day" in the next 300 days Ghosh said he also expects an increase in new travellers from India, especially taking advantage of the low fare to travel to Singapore for shopping and holidays. "We are trying to tie up with various agencies in Singapore to sell Singapore as a family holiday destination to Indian tourists," he said. "Having established Delhi-Singapore and Mumbai-Singapore routes, we are looking to connect Hyderabad and Chennai to Singapore within six to eight months, than we are going to look at adding Kolkata," Ghosh said. Eventually, IndiGo will look at linking Singapore to the 26 cities the airline connects in India, he said, adding that all those cities are major tourist attractions, including Goa. Ghosh said IndiGo will also fly to Jeddah and Dhaka, expanding from its existing international routes, which will include Muscat and Kathmandu from next month. IndiGo recently launched flights to Dubai and Bangkok.
the two countries, remains underutilised. As of now, the Indian side does not even utilise 50% of the flights allowed under the agreement, which leaves scope for increasing flights, IndiGo president Aditya Ghosh told PTI. "But, we hope, this will now change and as we increase flights," said Ghosh, who launched IndiGo's first low fare service on September 15 to Singapore. IndiGo, though low cost airline, flies under the scheduled air flight agreement between India and Singapore, he pointed out. Ghosh sees a further increase in passenger traffic between the two countries, and has planned a number of holiday packages both ways as IndiGo increases flights to Singapore from "one per day to at least two and preferably three per day" in the next 300 days Ghosh said he also expects an increase in new travellers from India, especially taking advantage of the low fare to travel to Singapore for shopping and holidays. "We are trying to tie up with various agencies in Singapore to sell Singapore as a family holiday destination to Indian tourists," he said. "Having established Delhi-Singapore and Mumbai-Singapore routes, we are looking to connect Hyderabad and Chennai to Singapore within six to eight months, than we are going to look at adding Kolkata," Ghosh said. Eventually, IndiGo will look at linking Singapore to the 26 cities the airline connects in India, he said, adding that all those cities are major tourist attractions, including Goa. Ghosh said IndiGo will also fly to Jeddah and Dhaka, expanding from its existing international routes, which will include Muscat and Kathmandu from next month. IndiGo recently launched flights to Dubai and Bangkok.
By Anup Narayan Jituri (CSD) (PGDF 1ST Year)
5. MARKETING SECTION
MERC, RENAULT HIT RACE TRACK WITH BRAND GEAR
Carmakers lines up consumer connect and branding initiatives, step on promotion pedal.
Mercedes Benz and Renault are hoping to ride piggy on India’s first formula 1 race, Airtel Indian Grand Prix, to give their cars a big push in the country. In the run up to the race on October 30, two of the three car manufacturers in the sport-the third are Ferrari-have lined up prototype launches, racetrack drives for buyers, virtual games, racing schools and merchandise sale among others to gain traction in the second-fastest growing car market. Mercedes is looking to connect with the youngest segment, in which it is seen to trial BMW in India. The objective for Renault is more primary: establish a brand presence in India, a market it entered only in May. Mercedes-Benz, Stepping on the gas: Automotive partner for all motor sporting events at the Greater Noida circuit for two years, showroom selling tickets and F1 team merchandise. For example, Michael Schumacher T-shirt for 7000 Rs, having college kids race on remote-controlled Mercedes cars, Racing Academy in the Greater Noida circuit in Q1 of 2012. Renault: Global CEO Carlos Ghosn to unveil the concept version of its small hatchback, F1 loyus Renault car to be displayed at malls, airports and dealerships, Racing consoles in malls, colleges and its dealerships, Top-selling dealer to receive a pass for the F1 paddock.
COUNT YOUR CALORIES WITH McDONALD’S: AMERICAN FAST FOOD GIANT TO DISPLAY CALORIE COUNT
Would you change your order if you know there are 416 calories in McChicken? You will soon have an option as the Indian arm of world’s largest restaurant chain McDonald’s has decided to list calorie counts of all its foods on menu. McDonald’s India, among Big Mac’s top 10 fastest growing markets, says the calorie counts protein, fat and carbohydrate content in its burgers, fries and puffs will be prominently displayed on its menu, leaflets on trays, front counters and websites within the next 45 days. “As customers around the world are changing we are also focusing on healthier ways of eating. The first step, we believe, is disseminating information”. The move, coming 15 years after McDonald’s opened its first restaurant in the country, follows similar actions in the US and more recently the UK where fast food chains are under pressure to help tackle obesity and promote healthier eating habits. It will be implemented across McDonald’s 235 stores in the country, and will cover all its products.
IMPROVE THE QUALITY OF SECURITY SOFTWARE
Generally, the government’s view is that rights are something they grant to people. I have a traditional Yankee view of god given rights and one of them that I envision is the right to communicate.
The right to private communication is a “God given right” and instead of trying to spy on its citizens, governments should worry about improving the “dreadful,” “rotten” quality of software they use, says Bailey Whitfield Diffie, one of the pioneers of public key cryptography is the basis of a technology that makes it easier for citizens to communicate securely. Recently, governments, including that of India, have been at loggerheads with technology and telecom companies which facilitate secure communication between citizens on the issue of data encryption. Government agencies have repeatedly asked companies like Research in Motion (RLM), Skype and Google to provide access to communication that takes place over BlackBerry Messenger, Skype and GTalk, Gmail’s chat services. Services offered by these communication majors are encrypted and are difficult for intelligence agencies to intercept.
A BUYOUT BETWEEN $ 600M & $ 1 BILLION IS DESIRABLE
Infosys’ new CEO SD Shibulal is searching for acquisition of European cos with nearly billion dollars in revenue.
Macro-economic concerns in its main markets and pricing pressures from major clients notwithstanding, India’s second largest IT services exporter is pursuing 3.0 agenda vigorously. With KV Kamath taking over as the new chairman, the company faces its toughest challenges in three decades. When Infosys looks through the windscreen, market leader TCS is pulling ahead. The view from the rear-view mirror shows Cognizant closing in swiftly. Outline the challenges, new CEO SD Shibulal says the firm will not shy away from making a bold acquisition. In an exclusive interview with Shruti Sabharwal, Shibulal says that a buyout between $ 600 million and $ 1 billion is actually “desirable”. Excerpets.CEO SD Shibulal says that we are constantly looking at acquisitions. We just did McCamish. It was good acquisition because it was a platform acquisition. We have to find the right company, the company that wants to be acquired and it has to make strategic sense. Just because you have cash in the bank doesn’t mean you have to spend it. If we find the right company, it’s like in falling in love & he adds on that Margins are not a game. They are an aspiration. This is a company that always believed that we should have superior financial performance. That means above industry average growth and industry leading margins and I believe it can be sustained.
BHARAT SHINING FOR BRANDED GOLD JEWELLERY RETAILERS
Brands such as Shree Ganesh, Tanishq, Gitanjali, Adora & HK Jewel focus on smaller cities and towns
After consumer products and vehicles makers, now branded gold jewellery retailers are going rural as small town folks develop a taste for contemporary designs and styles. “The rural customer has a fetish for all kinds of gold jewellery and they want now jewelleries that have contemporary appeal,” says Nilesh Parekh, chairman of Shree Ganesh Jewellery House, which sells jewelleries under the brand name Gaja. The Rs 5900-crore Shree Ganesh plxans to open 250 outlets mostly in tier 2 and 3 cities such as Lucknow , Jodhpur and Kochi to reach out to the rural rich who now shop like high-street consumers.
DIVERSIFICATION BALM FOR AMRUTANJAN?
In the new avatar to revive dormant goodwill, the 118-yr-old brand may be spreading too thin. The recent flurry of activity is significant. Success or failure could mean a fresh beginning or a return to just nostalalgia. Suguna Swamy, the Consulting partner and Creative Director, Ogilvy Dakshin says “Amrutanjun has been lost in the woods for years. If needs professional and aggressive management of its portfolio, and, I daresay, needs ground. If it has to change then it must do that carefully, in a well thought-out manner, to avoid embarrassing itself”. The Rs 250-crore company, founded 118 years back by freedom fighter Nageswara Rao Pantulu, is now considered by analysts as too small and insignificant to track.
TOMMY HILFIGER BUYS OUT MURJANI BRANDS’ LICENCE
International apparel giant bets big on Indian market, Arvind to continue its partnership.
American lifestyle brand Tommy Hilfiger has bought the license for its trademarks & a 50% stake in a JV with Arvind Ltd that sells the American lifestyle brand in India from the Murjani Group. “Direct engagement in the Indian market will enable us to make additional investments with the goal of growing the business.” says Tommy Hilfiger Group CEO Fred Gehring. The term of the deal were not disclosed.
BUSY INDIANS WARMING UP TO FROZEN FOODS
Ready-to-cook idils, vegetarian sausages lead India’s frozen food revolution; frozen foods now overflow from freezer compartments to chill trays in refrigerators in several househols.
When a Canadian frozen foods company test markets three-minute microwaveable idlis in Indian, you sit up and take notice. The $ 6.5-billion McCain Foods, which claim to make one of every three French fries in the world, has not limited itself to hash browns and potato wedges. Its Indian arm is adapting to the local palate with chilli-garlic pops and tandoori nuggets. Besides idlis, that is.
By Apoorva Mahajan (NSL) (PGPM 1ST Year)
GIZMOS & COOL GADGETS SECTION
By Parushi Thukral (PGPM 1st Year)
6. ECONOMY SECTION
Montek Singh Ahluwalia (Deputy Chairman of the Planning Commission): 9% Growth not easy to achieve: New Delhi: Amid fears of slowdown in the global economy resurfacing the Planning Commission .It will not be easy to achieve 9% growth during the 12TH Plan (2012-17).Commodity Prices still Resilient: Commodity markets have remained remarkably resilient. The dollar index went up from 73.4 on 26 July to 75.9 on 6 September, during the recent market downturn. The fall in the commodities index is mainly due to a stronger dollar, which means that fears over global growth have had very little to do with it A recent report by the United Nations conference on trade and development (Unclad) point out that despite the decline in global industrial output after the financial crisis India’s Consumer debt to GDP ratio still Minuscule: The slowdown in consumer debt lending due to higher interest rates, the reason for low penetration is ,the comparatively low income levels. But even though there is considerable scope for increasing consumer credit in India. Container corporation of India Ltd stock has dropped: concur stock has dropped 25% compared with the 17%fall in the BSE-200 index.
PF funds wary of investments in power ,expect lesser returns: after investing $ 1.15 billion (around rupee 5,300 core today) in the power sector last year ,private equity , or PE, firms have become cautious as returned estimated have declined by 2.5-3 % points.
Sensex Reaches one month high on speculation of rate rise halt: The BSE sensitive index rose 100.54 points to 17,1655, while the S&P CNX nifty advanced 0.6% to 5,153.25.
THE APPETITE FOR FOOD KEEPS PRICES UP
FAO FOOD PRICE INDICES:
PROFIT GROWTH CRUCIAL FOR VALUATION OF CONSTRUCTION COMPANIES. Indian market will do very well in the long term: Indian stock market will reward investor s over the long term given to robust domestic growth story .Salaries no more the reason why PSU banks are not getting talent.
INDIA DEBT RATIO SWELLS, SIGNALS WORSENING EXTERNAL ECONOMY:
Ø Rise in short-term debt riskier as it needs to be repaid from foreign currency reserves in shorter period.
Ø India’s short term debt to total external debt ratio rose to 21.2% in 2010-11, the highest in at least five years, signaling a worsening of the external debt of the country. Finance Ministry for 2010-11 also showed that the short term debt to foreign exchange reserves increased to 21.3%.
Cipla’s margin focus likely to yield benefits in the long term: In fiscal year 2011, Cipla got around 55% of its income from international markets and the rest from India, making it dependent on both for growth. The Company has changed its product mix to higher margin products.
Suzuki plans to break alliance with Volkswagen; Industrial production plunges; markets fall to a two-week low: Suzuki was supposed to increase Volkswagen’s India presence. And Volkswagen was supposed to develop new diesel and hybrid engine But Volkswagen later said Suzuki was breaking the terms of the deal by striking a separate agreement with Fiat to develop diesel engines. India also appears to have been a crucial factor in the break-up Suzuki gets 70% of its profits from Maruti Suzuki. And Mint has learnt that Maruti felt it had little to gain in return for giving Volkswagen access to Indian markets.
EUROPEAN DEBT WORRY WEIGHS ON U.S.STOCKS: US Stocks were down around triple digits despite strength in the financial and technology sectors, which benefited from a presentation on cost cuts by Bank of America and from Broadcom’s $3.7billion takeover of NetLogic Microsystems. The Drown dropped 91.20 points or 0.8% to 10900 amid fresh worries over Europe’s debt crisis. The S&P 500 fell six points, or 0.6%to1147.The NASDAQ shed 4 points, or 0.2% to 2464.
Top executive of Maxis questioned by CBI: Ralph Marshall, CEO of Astro, which invested in Sun TV and also board member of Malaysia-based Maxis, appeared before the agency officials for clarifying on allegations that the company was favored by the minister in the takeover of Aircel and in return investments were made in Sun TV.CBI is looking into investments of Maxis in Sun TV, which are alleged to have been done with Astro group. Besides, it is also looking into various aspects of takeover of Aircel by Maxis group.
India is going to benefit from foreign flows-Pankaj Razdan, deputy chief executive, and Aditya Birla group, says India is structurally strong and will benefit from foreign flows into emerging markets.
Inflation surges to a 13-month high; strikes spread across Suzuki plants near Delhi; markets break a three-day losing streak: New figures show wholesale inflation in India surged to a 13-month high .The wholesale price index jumped 9.78% and now it gained 9.22%. Switching to corporate, Maruti’s labour troubles in Manesar have now spread to Suzuki’s other subsidiaries in the area. Workers at Suzuki Motorcycles, Suzuki Castings and Suzuki Power-train have all been on strike. They’re likely to be joined by workers from Maruti’s Gurgaon plant. Indian markets rebounded, after making losses in the last three sessions. The gains came after hopes of a respite from rate hikes and more export opportunities thanks to the weakened rupee. The Sensex leapt up 242 points to finish at 16,710. And the Nifty gained 72 to 5,013.
Airfares likely to get higher; India’s job market set to decline next quarter Markets fall in reaction to European debt crisis. India’s economic growth is slowing down, and this seems to be having a negative effect on the country’s job market as well. According to the latest figures of the Manpower Employment Survey, India’s Net Employment Outlook is just over 30% for the period, as compared to 45% in the previous quarter of the seven sectors surveyed in the country, services ranked highest with 37 % while Manufacturing was 32.
Money Supply growth outpaces nominal GDP growth during Q1 Money Supply growth has exceeded GDP growth for the first time. Bajaj Hindustan Ltd’s announcement of rights issue at a price of Rs36 a share, or a discount of 33% to the prevailing price .The stock gained about 3%.
Inflation accelerates, near double digits: Inflation accelerated to almost double-digits level, even as concern of a worsening global economic outlook affected India deepened after rating agencies downgrading two leading French banks.
Inflation spurts to 9.78%. Rupees turn to volatile ADB prunes India’s growth projections
IIT Fee set to increase fourfold from 2013: The government has decided to effect a conditional fourfold increase in the education fee for the Indian institutes of technology(IITs) to rupee 8 lakh.
Rupee touches two –year Low; Euro zone debt crisis weighs: The Indian currency continued to slide for the eighth straight day against the dollar, touching a two year low. The rupee lost 6.44% of its value in the last three months versus the dollar, the worst performance among Asia’s most traded currencies .
Shareholders approve riders for cairn sale: Oil explorer Cairn India Ltd received approval from shareholders to accept conditions imposed by the union government necessary to clear Vedanta Resources Plc’s dealt buy 40% stake in the firm.
Indian Market will at least double in next four Years: United technologies’ Zubin Irani says the company wants to grow four or fivefold in India by looking at four different areas: on the Indian Market potential, on Sustainable development of buildings, on UTC business targets and Growth plans in India, on approach to Indian market.
United Restaurants plans to raise rupees 60 Core :Operator of the US pizza chain, wants to raise at least rupee 60 core from private equity (PE) investor for an ambitious expansion.PE firms has invested $110.53 million (about rupee 500 core)in five specialty food firm this year.
By Deepam Bharadwaj (NLC) (PGPM 1st Year)
7. REFERENCES
EDITORIAL TEAM (NEWSLETTER COMMITTEE)
APOORVA MAHAJAN
PREETI BHATIA
DEEPAM BHARADWAJ
ANUP NARAYAN JITURI
CONTRIBUTORS
PARUSHI THUKRAL
PRIYANKA JAISWAL
SHRESHTH UPPAL
For any type of assistance or feedback please write at apoorva.mahajan11@isbf.edu.in . Your suggestions & Articles are invited for the October2011 issue.
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