ISSUE - 120 20th JULY [WEDNESDAY]

EDITOR’S DESK - TANIYA BANERJEE

With the PIGS already in debt crisis Italy has also joined the league. It seems that the Silvio Ber-

lusconi government will have its hands full with this for times to come. Get the complete story in

our Cover Story.

The recent bomb blasts in Mumbai has yet again left all of us speechless with various questions

pondering in our minds. When would all of this stop? Why is it that the casualty at the hands of

terrorism is increasing day by day while the government seems to seems to be silent spectator?

Get our writer‟s views in the Opinion Forum this week.

With its innovative ways of handling its customers, Budweiser has created a unique proposition

for itself. The various strategies, strengths and weaknesses, ups and downs of this brand has been

captured in our Brand Track section this week.

FMPs have off late been gaining popularity amongst investors because of their image . Which is

that they are a safer alternative to liquid mutual funds. With added benefits like better returns

and tax benefits, FMPs are here to stay and hence it is the Focus of the Week this time.

Moreover catch up with the happenings around the globe with our regular sections Fast Track,

Quick Bites and Market Watch along with a lot of Jargons to add on to your knowledge.

Cheers!

Taniya Banerjee

Editor.

EDITOR 1 OPINION 5 FOCUS 8

COVER 2 BRAND 6 MARKET 9

FAST-TRACK 3 QUICK BITES 7

COVER STORY– THE GREAT FALL OF EUROPE - SANYA DHAWAN Last week I talked about Greece going into a major debt crisis. Apart from Greece, Ireland, Por-

tugal, Spain are countries that also remain in peril. But this week, it is extremely alarming to see

that Italy is joining the sovereign debt saga of the Euro Zone. The contagion is spreading faster

than we can imagine and it is feared it might lead to the fall of the Euro.

Italy is Euro‟s third largest economy and the world‟s third largest issuer of government Bonds.

But they have gone very wrong. Their gross debt to GDP ratio is 120%, way above the 60% ap-

proved by the Euro Zone limits. And in that large debt, Italy owes about a quarter of all govern-

ment debt in the euro zone. Losses from Ireland or Portugal could be contained but steep falls in

the value of Italian or Spanish government debt risk a wave of bank failures. This is because the

amount of debt is very large and a substantial part of it – somewhere close to $1.1 trillion is of

non-Italians.

Last week the yields reached an all time high. Credit rating agency Moody has threatened to

downgrade their debt in the next 90 days. This is mainly because of a couple of reasons. One,

interest rates are expected to increase over time as there will be no meaningful economic growth

file to macro economic factors. Also, there are risks involved in terms of implementation of

plans of the Italian government and the changing conditions of Euro Zone. Italy has 120% of its

sovereign debt outstanding that is about $2.6 trillion. This amount is

much more than the amount left in the kitty of the European Financial

Stability Facility (EFSF), the currency club‟s rescue kitty. This is mak-

ing the investors flee the Euro market making the chances of recovery

lower.

Events abroad also played a part in increasing the yields drastically the

past one week. Signals that the endless fumbling over Greece‟s second

bail-out will end in debt restructuring prompted investor flight from

core euro-zone countries as well as peripheral ones. Long-term buyers of government bonds

such as pension funds and insurers held back which lead to an almost total closure of the Italian

bond market.

The government of multi-billionaire Prime Minister, Silvio Berlusconi has responded with a four

year austerity budget. Some of the important facets of the budget are- lower income tax, accom-

panied by a hint that the shortfall may be made good by a gradual rise in VAT, increased health

charges and a freeze on cost-of-living increases for higher-value state pensions. More cuts made

by local and regional authorities, which are set to lose €10 billion in central-government trans-

fers. The budget also includes a rise in the flat-rate stamp duty on government bonds that have

for years formed the core of every middle-class Italian saver‟s portfolio, which could sharply

reduce their net returns. It is a 100 odd page budget assured to bring Italy out of its misery. The

government is saying there is no need to panic. It assures the banking system is insulated from

the turmoil. It is coming up with various proposals to privatize state owned assets. The deficit is

expected to shrink. “Italy only reacts under an emergency,” says the boss of an Italian financial

institution. “Now there is one.”

Do you think it is the end of the Euro? I think that day is not too far.

THE IBS TIMES

1 2 3 4 5 6 7 8 9 10

Italy is Euro’s third

largest economy and the

world’s third largest is-

suer of government Bonds.

But they have gone very

wrong.

Events abroad also

played a part in increas-

ing the yields drastically

the past one week.

FAST-TRACK NEWS - SHILPA MALHOTRA Multiple blasts in Mumbai kill 21 over 140 injured Terror struck Mumbai when three serial blasts rocked crowded areas in the peak hour on Friday in a space of 10 minutes

killing at least 21 people and injuring 113 in a grim reminder of 2008 Mumbai attack. Meanwhile Lieutenant General

(retd) Abdul Qayyum has suspected the Central Intelligence Agency (CIA) hand in the blasts to mount pressure on Paki-

stan to allow US military trainers. He said that there can be a third party behind these attacks. “It could even be the CIA so

that Pakistan allow US military trainers and start military operation in the tribal areas”.

Pak aid suspension welcome, says India The news about US suspending military aid worth $800 million to Pakistan was greeted with understandable excitement in

India with foreign minister S M Krishna saying that New Delhi welcomed this development. Krishna suggested that arm-

ing Pakistan further could only disturb the "equilibrium" in the region. The suspended aid, which is about one-third of the

$2.7 billion in annual US military assistance to Pakistan, includes about $300 million meant to reimburse Pakistan for

some of the costs incurred for deploying more than 100,000 soldiers along the Afghan border to combat terrorism .

ISRO successfully launches latest communication satellite GSAT-12 India on Friday successfully launched its latest communication satellite GSAT-12 onboard a powerful variant of home-

grown Polar Satellite Launch Vehicle, PSLV-C17, from the spaceport. GSAT-12, aimed at augmenting the capacity in the

INSAT system for various communication services like tele-education, tele-medicine and Village Resource Centres, would

be co-located with INSAT-2E and INSAT-4A satellites. This was the second time in its 19 flights that the PSLV has been

used for launching a communication satellite after Kalpana-1 in 2002.

Govt likely to accept Solicitor General’s resignation The government is likely to accept the resignation of Solicitor-General Gopal Subramaniam, who quit in protest after Tele-

com Minister Kapil Sibal asked Rohington Nariman to represent him in the Supreme Court. The government has taken a

grim view of his defiance, going against the advice rendered by Prime Minister Manmohan Singh and Law Minister Veer-

appa Moily not to act in haste. Subramanaim, while defending his action, asserted that he had taken the step to protect the

dignity of the office of the S-G.

PM reshuffles his cabinet again Prime Minister Manmohan Singh inducted eight new faces into his government, axed seven ministers and juggled some

portfolios in a bid to improve the image of his Congress-led government, but most analysts dismissed the changes as cos-

metic. Among the major changes, Salman Khursheed took over the law ministry from M. Veerappa Moily, who moved to

corporate affairs; Dinesh Trivedi of the Trinamool Congress heads the railways; while Jayanthi Natarajan, the only Con-

gress woman MP from Tamil Nadu, is the new environment minister replacing Jairam Ramesh who was elevated as a cabi-

net minister in the ministry of rural development.

Gold surges to record on US, Europe debt crisis Gold rallied to a record on Thursday after Moody's Investors Service placed the US credit rating on review for a down-

grade, US debt-ceiling talks stalled and Europe's sovereign crisis persisted, boosting safe haven demand. Immediate-

delivery bullion climbed as much as 0.5% to an all-time high of $1,589.80 an ounce, and was at $1,582.75 at 4:03 pm in

Singapore.

Car sales grow slowest in 27 months at 2.62 % Domestic car sales fell for the third straight month in June, lowest in 27 months, prompting the industry body to scale back

the year's projection for the second time this fiscal. Sales rose just 1.62% in the month as against 7% in May and 13% in

April. The growth is the slowest since March 2009, when sales grew 1.16%.Demand for vehicles in India, an important

indicator of the country's economic health, is led by a middle class that is guided by the cost of fuel and loans in it decision

to buy.

Green washing– The When a company, government or other group promotes green-based environmental initiatives or im-

ages but actually operates in a way that is damaging to the environment or in an opposite manner to the goal of the announced initia-

tives. This can also include misleading customers about the environmental benefits of a product through misleading advertising

and unsubstantiated claims.

THE IBS TIMES

1 2 3 4 5 6 7 8 9 10

SEZ land sale to realtors blocked In a move to prevent special economic zones (SEZs) from turning into real estate projects, the finance ministry has barred SEZ developers from selling controlling stake in their ventures. SEZs, which were envisaged as en-claves of export infrastructure excellence, enjoy substantial tax concessions from the government. But dilutions in tax benefits over the years have made them less attractive for developers. The latest restrictions, which deny the developers an exit option, would add to their woes.

TCS posts 26.7% rise in first quarter net, beats estimates Shares in India's top software services firm, Tata Consultancy Services , rose 3.9 percent in pre-open trade on Friday after it posted forecast-beating quarterly earnings. Beating market estimates, Tata Consultancy Services (TCS), India‟s largest software company, has posted a 26.7 per cent rise in its net profit at Rs 2,415 crore for the first quarter of 2011-12, aided by a “balanced broad-based growth”. The revenue grew by 31.4 per cent to Rs 10,797 crore for the period under review.

Satyam trial fraud faces delay The Satyam trial proceedings are unlikely to be over by the end of this month raising the possibility of the Su-preme Court granting bail to the main accused, including Ramalinga Raju, the disgraced former chairman of Satyam Computer Services. While cancelling bail to Ramalinga Raju and other prime accused, the Supreme Court in October last year directed the special court in Hyderabad to complete the trial by July 31. If the trial is delayed then there is strong ground for the court to grant bail to all main accused in the case.

US plans to raise debt limit of $14.3 trillion The U.S. government hit its $14.3-trillion debt ceiling triggering a series of “extraordinary measures” to stave off a default while politicians argue over raising the borrowing limit. Treasury Secretary Tim Geithner an-nounced he was suspending payments into two federal pension funds, after the government reached its maxi-mum legal borrowing limit. Mr. Geithner said the suspension should allow the U.S. to avoid a default before August 2 and urged Congress to agree to raise the debt ceiling before this 11-week deadline expires.

Rebekah Brooks Resigns as News International CEO Rupert Murdoch's loyal lieutenant Rebekah Brooks resigned as chief executive of his embattled British newspa-pers, becoming the highest-ranking casualty yet in the phone-hacking scandal roiling Britain. As Brooks de-parted, Murdoch's son James signaled a new strategy for dealing with the storm that has knocked billions off the value of News Corp., scuttled its ambitions to take full control of lucrative British Sky Broadcasting and radically changed the power balance between U.K. politicians and the feared Murdoch press.

Uruguay stun Argentina A surprise appearance in a World Cup semifinal, now beating the hosts to reach the last four of the Copa Amer-ica -- it just keeps getting better and better for Uruguay. If a semifinal in South Africa last year was not enough, the Uruguayans came up with another sensational result on Saturday, beating Argentina on penalties to elimi-nate the heavily favored hosts and longstanding rival. "I'm very happy," Coach Oscar Tabarez said. "This is one of the oldest classics in the world. Historically, it's very hard for us to beat Argentina."

Harper's allegations unwarranted: Team India Team India has described retired international umpire Daryl Harper's charge that captain MS Dhoni tried to intimidate him, as unwarranted. Team sources said that they are surprised by Harper's comments. Some players even laughed off at comments made by Harper. Meanwhile, Dhoni has received the backing of cricket experts, especially considering Harper's record of getting into trouble with a number of International cricketers. Saying, “Harper has had run ins with players a number of times", Cricket experts said they prefer to believe India's side of the story rather than Harper's.

Globally Floored Contract- A guarantee found in structured investment products that provides a minimum payoff at ma-

turity. A globally floored contract will protect the investor or minimize his loss in case the underlying investment loses its value.

THE IBS TIMES

1 2 3 4 5 6 7 8 9 10

OPINION FORUM– TIME TO TAME TERROR! - TANIYA BANERJEE

As ominous as the number thirteen sounds it indeed was the harbinger of tragedy in the month of

July for the people of Mumbai. But can we blame the number alone or is it that our entire system is

jinxed?

We can aptly start referring to Mumbai as the horror capital rather than as the financial capital of In-

dia. For a record no other city in the globe has been a target to these many terrorist attacks. Does this

not show a huge callous attitude of the government towards its security system which is being

breached time and again? Is this the face of an emerging superpower scarred with the deaths of its

innocent citizens?

A series of three blasts took place in sequential manner in Zaveri Bazar, Opera House and Kabutark-

hana on 13th July, 2011 between 6.30 to 7 PM IST. Desperate cries for help reverberated throughout

the area! Some lay in state of shock others frantically searching for their near ones wondering if they

would figure in the eventual toll of 18 dead. The initial perpetrators were thought to be the Indian

Mujahideen but since no group has taken up the responsibility of the attacks hence the main culprit

still remains in speculation subject to further investigation. Some say it marked 26/11 convict Ka-

sab‟s birthday revenge of sorts, others say it is Pakistan‟s doing. But as always said terrorism does

not follow any reason , so seems the philosophy in this case as

well!

A compensation of two lakh rupees has been granted to the

kith and kin of the dead in the attacks. It really bothers me to

see how promptly human lives here can be quantified in terms

of money. Instead of taking measures that would protect the

lives of its citizens in a better way the Indian Government al-

ways conveniently comes up with these distress packages and

a sorry face. Look at the US, post the 9/11 attacks it hunted

down its perpetrators, beefed up its security system, threatened

the terrorists which effectively resulted in the US witnessing no more of such events. But one look at

our country and we wonder what is so wrong in taking a tough stand? Since March 1993 where close

to 257 people lost their lives till date Mumbai has been continuously at the receiving end of these

atrocities. 14 major blasts have rocked this city since then, but our government still seems to be tak-

ing appropriate actions. What is even more astounding is that petty politics has not spared this even

as well! Few hours into the attack opposition parties have already started the blame game trying to

garner limelight from the situation. Regional biases and intolerance has also been depicted during

this incidence when the Maharashtra Navnirman Sena Chief Raj Thackeray blamed north Indians

and migrant population for the blasts.

What the country needs now is not this political football being played out in the open so unabashedly

but a strong security system. Several lags are still existent. For example the National Counter Terror-

ism still awaits setting up while the National Technical Research organization which is primarily re-

sponsible for cyber surveillance has not been sanctioned formally. Moreover Natgrid the ambitious

project meant to link databases online for intelligence sharing has just got moving. Several other is-

sues like low police to citizen ratios, lack of a special counterterrorism force (the idea of which was

hatched post the 26/11attacks) etc need to be addressed at the earliest.

Lastly we salute the undying spirit of Mumbai but that does not mean that we challenge it all the

time! „Terror should be tamed‟ should perhaps be the new mantra for India!

Exploding Warrant - An equity derivative investment instrument that gives that holder the right, but not the ob-

ligation, to acquire the underlying instrument, and which is exercised only if the issuing company does not meet

certain specified goals.

THE IBS TIMES

We can aptly start refer-

ring to Mumbai as the

horror capital rather than

as the financial capital of

India.

What the country needs

now is not this political

football being played out

in the open so unabashedly

but a strong security sys-

tem.

1 2 3 4 5 6 7 8 9 10

BRAND TRACK– A BUD IN NEED IS A BUD INDEED -SUPRIYA MAMGAIN

You are allowed to enter the viral world of Budweiser only if you are under the legal age of

drinking. The interesting web page allows a person to enter only after entering his/her date

of birth. Therefore, this is a beer which knows its customers (those under the legal age to

consume alcohol) and would cater only to them!

Adolphus Busch gave the Americans a drink truly new to their taste buds. In the mid 1800s

Americans preferred robust, dark ales and some lighter Bavarian style lagers, but these

drinks did not capture the American lifestyle and culture. Adolphus introduced Budweiser,

which is a flagship beer of Anheuser-Busch; Bud became an instant hit with the Americans

as by 1941 the Americans guzzled down three million barrels per year.

Marketed as the king of beers, Budweiser portrays itself to be a beer made by friends for

friends. The brand has associated itself with major sporting events such as the FIFA world

cup, Superbowl, NFL as well as car racing. The brand earns recognition by such associa-

tions as it helps to capture the attention of the various fans, go for such events. The brand

contributes millions of dollar through its “Here‟s to the Heroes” campaign. It contributed

$100 for every homerun hit in Major League Baseball to Folds

to Honour, an organization that helps the family of fallen sol-

diers. Yes, a beer brand can do its bit for the society too!

We all know that every legendary brand goes through a down-

fall where it needs to save its image and sales. Bud faced such

an issue in the year 2010, when it started with various market-

ing exercises of promoting its brand. The brand unleashed the

biggest ever free sampling effort in trendy bars and eateries.

Due to various factors such as a shift to lighter beers as well

as increase in price sensitivity among consumers, bud aimed at the under 30 consumers.

The campaign begun with the slogan “Grab some Buds” encouraged users to try a free

brewski. The campaign declared as the National Happy hour by Budweiser did boost its

sales and image! You dear reader just missed the free sample of limited edition Budweiser

cans that were given on 14th June 2011, declared as the National Happy Hour.

Taking the help of social media, the company took this campaign a notch further as it al-

lowed its users to get started with the “Grab Some Buds” “Happy Hour Application” avail-

able on facebook. This has helped the brand to acknowledge its growing community of con-

sumers that enjoy their bud!

Budweiser was ranked 30th in Interbrand‟s 2010 world‟s most successful brand list. Though

Budweiser is the “King of Beers” in U.S.A., the worry of the marketing team at Budweiser

is to have a strong presence in other countries as well. Budweiser has not played the same

tricks in other countries, which could be the reason of its depleting sales as this has given

other brands to have a strong hold in those markets.

So what do you think Budweiser could do to promote itself in India? Perhaps, a National

Happy Hour for the thirsty Indians.

THE IBS TIMES

Budweiser was ranked

30th in Interbrand’s 2010

world’s most successful

brand list.

Marketed as the king of

beers, Budweiser portrays

itself to be a beer made by

friends for friends.

1 2 3 4 5 6 7 8 9 10

QUICK BITES- NEWS THAT CAN’T BE MISSED ! - RAJAT MONGA

Big Shots…

Pradeep Kumar is sworn in as the new Central Vigilance Commissioner

Reliance Media Works has appointed Mr. Ashok Ganapathy as the CEO of its cinema exhibition divi-

sion, Big Cinemas

Ranbaxy Laboratories appoints Rajiv Gulati as its President-Global pharmaceuticals business

Company Talks… Tata Motors global sales declines marginally in June

India's largest gold financing NBFC, Muthoot Finance Ltd to offer loans against the security of gold Ex-

change Traded Funds

McDowell's No 1 has regains its place among world's 10 biggest global spirits brands by volume

ITC to launch more designer wear & international designs

Suzlon bags Rs 650 cr order from Orient Green Power Co

Haier India to double refrigerator sales to Rs 650 crore

Future Ventures ups stake in Indus-League Clothing to 90.84 pc

Groupe Danone to merge distribution in India with probiotic drinks joint venture Yakult Danone

HUL eyes opportunity over a cup of coffee

Carlyle Group invests $25 mn in India's Visen Industries

Basix, Aviva to launch automated micro insurance policy process

Life Technologies invests $3 million in distribution hub in Bangalore

Castrol to shut Chennai plant from July 31

Economy Speaks… Gannon bids lowest for NHAI's Rs 1,050-crore project

241 mt of foodgrain produced in agricultural year 2010-11

Government lifts ban on wheat exports

India won't expand FY12 borrowing plan, says FM Pranab Mukherjee

Government, World Bank to sign pact on rural jobs

The Captains of the Ships… CEO, NDTV- Mr. Sameer Kapoor

President, BMW India- Dr. Andreas Schaaf

Chief Marketing Officer, DLF – Mr.Pragash S

Chairman, Etisalat-Mohammed Omran

THE IBS TIMES

1 2 3 4 5 6 7 8 9 10

FOCUS OF THE WEEK– FIXED MATURITY PLANS - VASUNDHARA ARORA

Skirt Length Theory- The idea that skirt lengths are a predictor of the stock market direction. According to the theory, if

skirts are short, it means the markets are going up. And if skirt are long, it means the markets are heading down.

THE IBS TIMES

Fixed Maturity Plans

(FMPs) are fixed ten-

ure, closed ended mutual

fund schemes that invest

in debt and money market

instruments.

FMPs allow investors

enjoy triple benefits of

indicative yet predictable

returns with liquidity,

minimal price risk and

most importantly, lower

tax.

1 2 3 4 5 6 7 8 9 10

An intelligent investor is one who keeps his territory secure and scouts for better investment avenues

alongside. Going by similar rationale, people are showing huge inclination towards fixed income secu-

rities nowadays and among the fixed income securities, FMPs are an increasing rage among smart in-

vestors. Fixed Maturity Plans (FMPs) are fixed tenure, closed ended mutual fund schemes bearing quite

a much of resemblance to a bank Fixed Deposit (FD). Quite misunderstood to be equity-linked instru-

ments, FMPs are pure-play debt funds as they invest in debt and money market instruments; to name a

few corporate bonds, commercial papers, certificates of deposits, bank fixed deposits, government se-

curities would be investible targets for an FMP. FMPs are closed ended funds, so they come usually for

a 2-7 day period for investors to lock-in their investible surplus at the initial offer due for redemption

only at the stipulated time and are usually issued for three or six months or one, two or three years.

Well, there is plethora of instruments flooding the markets today, so what is something that FMPs offer

and other fixed income instruments, bank FDs per say don‟t? What is the USP of an FMP making it in

vogue today? Let‟s have a deep dive into it and understand the intrinsic dynamics!

FMPs significantly differ from other fixed income investment avenues on the grounds of returns, risk

profile and tax treatment.

Unlike other fixed income instruments, FMPs offer an indicative yield to the investor which is based on

the returns offered by the underlying financial instruments that an FMP invests into. This makes the

very fact apparent that investors of FMPs are exposed to relatively higher risk than other fixed income

investments. They compensate for the extra bit of risk borne by investors by offering comparatively

higher returns than theoretical returns at the time of maturity. Apart from this, FMPs offer extensive

liquidity to investors as they are tradable in the secondary market. Though structured to be redeemed

only at the maturity date, an option to redeem the FMP prior to the maturity is also offered but is sub-

ject to huge exit loads which therefore reduces effective yield.

The last yet the most crucial differentiating factor making FMPs stand out in the pool of fixed income

securities is the tax treatment. Returns from other fixed income securities are taxed entirely as per the

investor‟s tax slab, but the taxation of FMPs has got two aspects: Dividend and Growth. Dividend

yields from FMPs are subject to Dividend Distribution Tax (DDT) deductible at source whereas growth

yields are subject to Capital Gains tax regime. Also, they are allowed to leverage on indexation benefits

wherein the returns could be adjusted for inflation rates of the tenure thereby making them an all the

more lucrative instrument as not all fixed income investments offer investors the luxury of betting on

real returns.

An illustrative snapshot of differential tax treatment for FDs and FMPs.

Since FMPs hold investments in debt instruments till maturity they are not much affected by price fluc-

tuations arising out of interest rate volatility. This very fact makes FMPs immune to interest rate risk.

In a nutshell, we can say that FMPs are increasingly gaining an edge over other fixed income instru-

ments as they allow investors enjoy triple benefits of indicative yet predictable returns with liquidity,

minimal price risk and most importantly, lower tax.

Particulars Fixed Deposit FMP (Dividend Option) FMP (Growth Option)

Gross Yield 10.00% 10.00% 10.00%

Tax 33.66% NA 33.66%

Dividend Distribution Tax NA 16.61% NA

Net Yield 6.63% 8.34% 6.63%

MARKET WATCH - SAINYAM KUMAR

With the number of rate hikes in past few months by RBI and some more lined up expectedly, it is a well

established fact now that inflation is the biggest concern for Indian economy in today‟s time. India‟s

headline price rise measure; WPI accelerated to 9.44% in June. The worldwide decline in the prices of

commodity stocks due to fall in oil and metal prices after Fed confirmed no immediate plans of extend-

ing fresh stimulus into the economy made Asian stocks thrive on weak trade towards the end of the

week.

The much anticipated bull picture does not really seem to be taking shape as of now since this week only

Pharma and PSU sector barely managed to cross the threshold for positive returns. Slump in realty sector could be attributable to signals

of further increase in interest rates which was successful in putting pressure on realty stocks massively. Rising crude oil prices ignited a

huge sell-off in oil & gas stocks thereby pulling the Oil & Gas Index down heavily.

The auto sector is facing a challenge as the rates for auto loans have been raised from 11% to 15% after eight rounds of interest rate hikes

past year. This coupled with expected surge in fuel prices has dampened the mood of potential investors as inquiries for cars aren‟t trans-

lating in actual sales. This is making car makers go for record discounts and freebies to entice buyers.

The Movers & Shakers of the Week

The week witnessed a plethora of companies announcing their FY11-Q1 results, some taking a high ride and some set to be doomed.

Nestle announced a strong quarter owing to increased operating margins and higher demand with domestic sales outperforming exports.

Another prominent FMCG player, P&G Hygiene & Health Care released its results. It also reported a robust performance arising out of

female hygiene business.

From the auto sector, we had TVS Motors revealing its results with a top line growth of 42% y-o-y. The growth was led by strong de-

mand for two wheelers during the year. ICICI Bank also disclosed its Q1 performance and recorded a 1% dip in its NPAs coupled with

identical growth in its net interest income y-o-y. Infosys reported a 5.3% sequential fall in its first quarter profits but still maintains its

full year forecast of achieving 18-20% growth in revenues.

Global Cues: The week saw markets from developed west managing to mark the end in green whereas the Asian markets end on a gloomy note.

Germany led the pack of gainers with a whopping 3% surge and on the other hand China was the biggest loser of the week down

by 3.3%. Japanese markets rallied due to electronic retail stocks as government announced a possible revival of subsidies on en-

ergy-saving appliances. Whereas Indian markets closed in red falling back on weakening market sentiment among FIIs in fear of

another round of rate hike possible by RBI.

SURGES %Change DOWNFALLS %Change GSK CONSUMER 7.7 IRB INFRA -13.4

EXIDE INDUSTRIES 7.6 HOUSING DEV. IN-

FRA

-13

ASIAN PAINTS 7.6 UCO BANK -13

THE IBS TIMES

1 2 3 4 5 6 7 8 9 10

MARKET WATCH

Contact Us & Post Articles at— editor.ibstimes@gmail.com

Join Us & Get E-copies at— http://bit.ly/ibstimesgooglegroup

http://bit.ly/ibstimesyahoogroup

Disclaimer- This newsletter is just a compilation of news from various sources. Thus, readers are expected to cross-check the facts before

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

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

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

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

Business Week, Business World, The Economist, Wall Street Journal, Bloomberg, Reuters, Moneycontrol.com, Vccircle.com,

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

The Tele-graph.

EDITORIAL TEAM-

ADHIRAJ SOOD, NITIKA THAKUR, NITIN ARORA, RAJAT MONGA, SAINYAM KUMAR, SANDEEP AS-RANI, SANYA DHAWAN, SHILPA MALHOTRA, SUPRIYA MAMGAIN, TANIYA BANERJEE, VASUND-HARA ARORA.

BUSINESS JARGONS BY– NITIN ARORA

11 JULY 2011 12 JULY 2011

13 JULY 2011

14 JUNE 2011

15JULY 2011

Sensex 18,721.39 18,411.62 18,596.02 18,618.20 18,561.92

Nifty 5,616.10 5,526.15 5,585.45 5,599.80 5581.10

DJIA 12,505.76 12,446.88 12,491.61 12,437.12 12,479.73

HangSeng 22,347.23 21,663.16 21,926.88 21,940.20 21,875.38

FTSE100 5,929.16 5,868.96 5,906.43 5,846.95 5,843.66

Gold ($/oz.) 1,554.40 1,567.30 1,582.60 1,587 1,594.10

Crude($/bl) 111.35 111.07 113.25 112.74 *

INR v/s USD 44.4657 44.7148 44.5179 44.5099 44.5151

INR v/s EURO 62.501 62.4889 62.65 63.213 62.971

Yellow Knight- A company that was once making a takeover attempt but ends up discussing a merger with the target com-

pany.

THE IBS TIMES

1 2 3 4 5 6 7 8 9 10

* FIGURES NOT AVAILABLE