Sie sind auf Seite 1von 7
1st Feb 2009 Volume 2, Issue 21
1st Feb 2009
Volume 2, Issue 21

Issue Attractions

National Headlines

1

International Headline

1

Company Review/ Buzz Words

2

Crossword/Quiz

3

Investor’s Check

4-5

Alumni Desk

6

Quiz/Crossword Answers, Placements

7

Repo Rate-5.5% Reverse Repo– 4% Forex Reserves– $247.62 bn Cash Reserve Ratio - 5.5% IIP - 4.6% Inflation Rate - 5.64%

15 days Movements 9450 Sensex 9300 9150 Sensex 9000 8850 8700 19 20 21 22
15 days Movements
9450
Sensex
9300
9150
Sensex
9000
8850
8700
19
20
21
22
27
28
29
30
Rs/$
48.8
48.9
49
Rs/$
49.1
49.2
1
2
3
4
5
6
7
49.3
Gold(per 10 gram)
14200
Gold(per 10 gram)
14000
13800
13600
13400
13200
20
21
22
27
28
29
30

Wealth Incorporation Christ University Institute of Management Finance Club Initiative Presents…

CHAANAKYACHAANAKYACHAANAKYACHAANAKYA

Initiative Presents… CHAANAKYACHAANAKYACHAANAKYACHAANAKYA “To succeed in business it is necessary to make others see
Initiative Presents… CHAANAKYACHAANAKYACHAANAKYACHAANAKYA “To succeed in business it is necessary to make others see

“To succeed in business it is necessary to make others see things as you see them.” - John H. Patterson

National Headlines

Unitech seeks govt. nod to raise Rs 5,000 cr via GDRs.

IB 18 Broadcast to acquire 43.4% stake in Viacom18 Media.

Bajaj Auto launches XCD 135 DTS-Si and plans gearless scooter.

TVS in talks with oil marketing cos. for nitrogen inflators.

TRAI wants more than one CDMA player to get 3G spectrum.

Reliance Power bags Rs 20K cr Tilaiya power project.

L&T increases stake in Satyam from 4% to 12%.

Spice joins race to buyout Satyam, ready to spend $408mn to acquire 51% stake.

Dish TV market share near 48% despite new launches.

Tata likely to produce 80,000 anos in 2009-10.

India and Kazakhstan have signed a civil nuclear pact under which the uranium-rich Central Asian country would be supplying the much-needed fuel to atomic plants in the country.

International Headlines

The U.S. economy contracted at a 3.8 percent annual rate in the fourth quarter, less than expected but still at its weakest since

1982.

The Israel Supreme Court has directed Sun Pharmaceutical Industries and Taro Pharmaceutical to renegotiate the takeover dispute between the two companies.

Cisco announced that it has completed its purchase of privately- held Richards-Zeta Building Intelligence Inc., The Santa Barbara Calif.

General Motors Corp could face a multibillion-dollar tax hit under its $13.4 billion federal bailout, a scenario the automaker faces just weeks before it must file a restructuring plan with the government.

Company Review– MINDTREE CONSULTING

Pg

2

MindTree is a global IT and R&D Services Company co-headquartered in the U.S. and India. IT Services business provides a range of services to CIOs across a variety of industry segments. R&D Services business works with Technology companies to help build innovative products by providing Product Realization services. Around 75% of the revenues come from IT services & the balance 25% come from R&D services.

Widely known for its focus on human capital development, MindTree has been consistently rated as the most admired employer by several industry surveys. MindTree has also been ranked in the Top 10 among "Great Places to Work" for in 2005-2007 in a study conducted by Grow Talent Company and Businessworld. They have partnered with clients on over 165 engagements. A sample of their clients includes: Alcatel Lucent, Eastman Kodak, EMC Corp., Hindustan Unilever Limited, Johnson & Johnson, Kraft Foods, Kyocera, Mitsubishi, Pfizer, Qualcomm, Sony and Volvo.

FINANCIALS

PARTICULARS

2008 ( Rs. In Cr.)

2007 ( Rs. In Cr.)

Total Income

761.60

597.67

Net Profit

104.18

90.05

EPS (Rs.)

27.47

23.85

Avg Cont./Employee( Rs. Th)

1311

1418

ROE

19.4 %

20.7 %

CAREERS AT MIND TREE

MindTree recognizes you as a person with skills, needs, and aspirations. They have consistently received accolades for providing a caring, stress-free work environment that is conducive to holistic personal growth. MindTree believes in delivering outstanding technology-based services and solutions with Imagination, Action, and Joy. Policies and programs are feedback-driven, demographics-based, designed inclusively and revisited regularly to ensure that they keep abreast of changing expectations.

Learning at MindTree is learner-centric, aligned to business goals and customer needs. They provide ample opportunities for learning and growth. Their lecture series, for example, addresses core issues of concern to most IT professionals, including transitioning to mid-level positions; life after 40 for an IT professional; and work-life balance.

Buzz Word

Green Fund: A mutual fund or other investment vehicle that will only invest in companies those are deemed socially conscious in their business dealings or directly promote environmental responsibility. Gray Knight: A second, unsolicited bidder in a corporate takeover. A gray knight enters the scene in order to take advantage of any problems between the first bidder and the target company.

Lemming: The act of following the crowd into an investment that will inevitably head for disaster.

Level 3 Assets: Assets whose fair value cannot be determined by using observable measures, such as market prices or models. Level 3 assets are typically very illiquid, and fair values can only be calculated using estimates or risk-adjusted value ranges.

Money Laundering: The process of creating the appearance that large amounts of money obtained from serious crimes, such as drug trafficking or terrorist activity, originated from a legitimate source.

Featherbedding: Term used to describe the practice of a labor union requiring an employer to hire more workers than necessary for a particular task.

Fast Market: A financial market that has a combination of high volatility and heavy trading.

“An economist is an expert who will know tomorrow why the things he predicted yesterday didn't happen today.” Laurence J. Peter

Crosswords

Down 1.What are funds that invest in both debt and equity called? 3.Refers to the

Down

1.What are funds that invest in both debt and equity called? 3.Refers to the total investment holdings of the fund. 4.Which is the world's 2nd largest traded commodity? 5.First Indian bank to open a branch outside India?

Across

2.First bank in India to be get an ISO certification? 6.The paying off or buying back of units of a mutual fund / bond by the issuer.

7.

Which was the first private mutual fund company in India?

8.

company

also sells Dasani water, Minute Maid, and Barq's.

9.

Which was the first public sector mutual fund to be set up after the Unit Trust of

India?

Quiz

Q1.Any option with the general characteristic that the underlying security's price must reach some trigger level before the exercise can occur? Q2.Which financial exchange listed the first exchange traded derivatives contract in the US? Q3.A term used for a remedial civil action rather than a punitive civil action wherein funds received through illegal or unethical business transactions are paid back with interest to those affected by the action. Q4.A swap whereby the notional value is increasing over time. Q5.Vijay Mallaya owned United Spirits Ltd (USL) is all set to strike a strategic deal with which company? Q6.What company's stock has been included in the Dow Jones Transportation Average ever since the index was created more than a century ago? Q7.A ratio used to determine return relative to drawdown (downside) risk in a hedge fund Q8.A standardized classification system for equities developed jointly by Morgan Stanley Capital International (MSCI) and Standard & Poor's. Q9.When was the convertibility clause in the loan agreements with financial institutions Included? Q10.Which theory of banking holds that banks should restrict their lending to short term, self liquidating loans?

their lending to short term, self liquidating loans? Did you Know? Pg 3 ♦ The first

Did you Know?

Pg 3

The first company

to ever issue stock

was "The Mysterie

and Companie of

M e

adventurers for the discoverie of regions, dominians, islands, and places unknown." (Later simplified to "The Russia Company").

h

s

r

c

a

n

t

s e c u r e , high-

yielding stocks are

T h e relatively

called

blue

chips.

The

term

was

taken

from

the

game

of

poker,

where

blue

chips

are more valuable

than white or red chips.

On

Wall

Street,

the

term

"Bo

Derek"

is

used to

describe a perfect

k

s

r

t

o

c

o

investment.

The

name

Bo

Derek

actually

comes

from

the

1979

movie

"10"

in

w

h i c

h

s h e

portrayed

the

"perfect woman".

The Ford Motor Company made a

profit of just $2 on each of the Model

Ts sold for $250 in

1925. The company counted on the sale

of spare parts at its

48,000 outlets to bring in big profits.

“It is rare to find a business partner who is selfless. If you are lucky it happens once in a lifetime.” Michael Eisner

The Hindsight & The ForesightPg 4 Stock Market – a heavenly abode for its connoisseur, hope for the opportunist,

Pg 4

Stock Market – a heavenly abode for its connoisseur, hope for the opportunist, temptation for
Stock Market – a heavenly abode for its connoisseur, hope for the opportunist, temptation for the
inexperienced and an anathema for the insipid. But for the last one year the market was nothing but a cipher
which no one could break. What goes up comes down and it came down very soon. The market is not a
Chinese-crazy-ball that’ll bounce back the way it landed. In fact, it has still to recoup from the impact of the
fall and take a cognizance of the damage caused due to the crash-landing.
A
previous analysis of the behavior of the market was discussed in the 2 nd volume of the 15 th issue of
Chaanakya (November 1, 2008). In this issue I’m using the technical chart of NIFTY for the past one year to
highlight how the flying machine lost its altitude and where it is headed.
It
all started in the last week of January-2008 when the FIIs triggered panic selling. From then till late
October the NIFTY fell making lower lows and lower highs. The Bollinger Band (blue envelope) contracted

during the August month indicating a breakdown on the anvil, so did the MACD and RSI indicator that

“If you want to succeed you should strike out on new paths, rather than travel the worn paths of accepted success.”- Bill Gates

INVESTOR’S CHECK

…. Contd.

Pg 5

INVESTOR’S CHECK …. Contd. Pg 5 moved in tandem with the market during the period. MACD

moved in tandem with the market during the period. MACD bars were widening during the period showing that the selling pressure was huge which is corroborated by the RSI chart when it reached the oversold territory in October month.

The bears ruled the year 2008, as is evident from the ADX chart where the –DI line is above the +DI line for the maximum period. The ADX line also indicated a strong downtrend which meant the worst was not over yet. The market took its beating when it reached its low of 2253 on October 27 (the candlestick with a long wick). For the November month MACD and RSI showed a divergence in a falling market and the ADX line also took a nose dive that indicated the downtrend is weakening. The Bollinger Band expanded from mid September indicating a high volatile period ahead which continued till early January-2009. The candlestick charts closed below the Bollinger Band many times during the volatile period as the market repetitively broke its fragile support levels.

If we observe the candlestick charts between November and December, the market gave very good buying opportunities when it formed a double bottom in this period and made a short progress till early January 2009. Due to lack of liquidity and thin quarterly results posted by India Inc., the uptrend couldn’t be sustained and the market declined after reaching its resistance level when it touched the upper band of the Bollinger Band. At present the ADX chart shows a weak trend and the market is currently range bound due to the announcement of 3 rd quarterly results, more are awaited. The small candlesticks in January month reflect the indecision prevailing in the market and the Satyam scandal has kept the already weak market in doldrums as more skeletons may be revealed. The MACD and RSI have also started declining forming lower lows and lower highs. But, there could be a possible formation of a third bottom that may complete the triple-bottom pattern starting from November- 2008. But the pattern can be confirmed only when the market breaks the neckline and moves upwards by at least 3%-5% creating a higher support and resistance level.

As of now one can expect very less good news for the market as the year 2009 will see more reserved approaches as the financial meltdown will spill over its effects into the real economy and cut down production due to contracting demand. India Inc. is bracing itself for turbulent times ahead as cost cutting will be a crucial factor for survival and new strategies will have to be formulated to keep the revenues afloat and maintain enough working capital. All sectors have been badly hit especially Realty, Automobile, Petroleum and Airline. With more job losses, liquidity crunch and fear the average Indian is not ready to loosen his purse strings. Therefore, corporate India needs to come out with innovative ideas to entice the customer to shell some money and keep the revenues ticking. Obviously bottom lines will be hit due to costly raw materials, discounts and competitive pricing and the companies will have to absorb the maximum increasing costs as none wants to pass the burden to the customer till situation demands. The election time can cause another anxiety attack to the market and thus the saying ‘discretion is the better part of valour’ holds good till signs of recovery are clearly evident.

 

Did you Know?

Albanian lek (plural

lekë) is the currency for Albania. It was introduced by the National Bank of Albania and has been

in

use

since

1926. Between 1946 and 1965, the lek was pegged to the Soviet ruble at 12.5 lekë to 1 ruble. It is no longer issued but is still accepted as currency. In 1992, the new "lek valuta" was introduced, which is equal to 50 lekë.

A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, often without any product or service being delivered. Pyramid schemes are illegal in many countries, including the United States, the United Kingdom, France, Germany, Canada, etc.

Fully one-third of

currency

in

circulation in the US

was believed to be counterfeit in 1865, when the Secret

Service

was

established to combat

counterfeiting.

 

ALUMNI DESK:

Pg 6

NAME: SandeepSandeepSandeepSandeep Kr.ChordiaKr.ChordiaKr.ChordiaKr.Chordia ORGANIZATION: SBISBISBISBI lifelifelifelife insuranceinsuranceinsuranceinsurance cocococo ltd.ltd.ltd.ltd. WORK PROFILE: Accounting & IT PERSONAL MAIL_ID: chordia.sandeep@gmail.com CONTACT NUMBER: 09610445665 BATCH: 2005-2007 CURRENT LOCATION: Mumbai

EXPERIENCEEXPERIENCEEXPERIENCEEXPERIENCE ININININ THETHETHETHE ORGANIZATION:ORGANIZATION:ORGANIZATION:ORGANIZATION: It’s been an excellent tenure working in SBI life insurance Co ltd, Mumbai. Work satisfaction, excellent opportunities to grow with company, team work are few of the benefits I am enjoying here. MESSAGEMESSAGEMESSAGEMESSAGE FORFORFORFOR THETHETHETHE STUDENTS:STUDENTS:STUDENTS:STUDENTS: To achieve career goals one has to be focused, dedicated and result

oriented. If our efforts are not reaping benefits then they are of no use ALL THE BEST!

So

put best efforts in right direction.

NAME: RaviRaviRaviRavi KumarKumarKumarKumar PPPP NNNN PREVIOIUS ORGANIZATION: Oracle Financial services (i-flex solutions) CURRENT ORGANIZATION: Antharjaala.comAntharjaala.comAntharjaala.comAntharjaala.com WORK PROFILE: Managing Director OFFICIAL MAIL_ID: antharjaala.com@gmail.com PERSONAL MAIL_ID: pnr.kumar@gmail.com CONTACT NUMBER: 09739598369 BATCH: 2005-2007 CURRENT LOCATION: Mysore

FEEDBACK

Chaanakya is a very good effort by all the students who are giving their best to make it a perfect financial magazine of the college. Keep it up.

Sandeep Kr. Chordia Alumni (2005-2007)

CONGRATULATIONS FOR PLACEMENTS IN SIDBI

Pg 7

Did you Know? ♦Formerly the QQQ, QQQQ was the ticker symbol for the Nasdaq 100
Did you Know?
♦Formerly the
QQQ, QQQQ was
the ticker symbol
for the Nasdaq 100
Trust, which is an
ETF that trades on
the Nasdaq. This
security offers
broad exposure to
the tech sector by
t
r a c k i n g
t h e
Nasdaq 100 Index,
which consists of
the 100 largest
and most actively
t
r a d e d
n o n -
financial stocks on
the Nasdaq. It is
also known as
"cubes" or the
"quadruple-Qs".
known as "cubes" or the "quadruple-Qs". SUJAY CROSSWORD ANSWERS VISHWANATH TEAM Editing/Compiling

SUJAY

CROSSWORD ANSWERS

or the "quadruple-Qs". SUJAY CROSSWORD ANSWERS VISHWANATH TEAM Editing/Compiling News Company Review

VISHWANATH

"quadruple-Qs". SUJAY CROSSWORD ANSWERS VISHWANATH TEAM Editing/Compiling News Company Review Investor’s
"quadruple-Qs". SUJAY CROSSWORD ANSWERS VISHWANATH TEAM Editing/Compiling News Company Review Investor’s

TEAM

Editing/Compiling

News

Company Review Investor’s Check/Stock Ratnas Student’s Article Coordination

Arihant Patawari Chetan P. Shriya Mohammad Nimakwala Sebin Emmanuel Jerry Fouzia Tarannum B.

Contributions made by 1st year:

Editing/Compiling Did you know, Quiz Quotes, Book Quotes Graphs, Buzzwords, Indices Crosswords Communication

Gyanesh Shroff Megha Garg Maria Fernandes Paloma Lobo Hitesh Archana

Quiz Answers

 

1.Barrier option

 

2.Chicago

board

of

trade

formed

in

1848

3.Disgorgement

 

4.Accreting

Principal

Swap

5.Diageo

6.Union Pacific's 7.Calmar ratio

 

8.Global

f i

Industry c a t i o n

C l

a s s i

Standard

9.1972

10.Commercial

loan

theory

Please mail your valuable feedbacks, reviews at chaanakya.ccim@gmail.com
Please mail your valuable feedbacks, reviews at chaanakya.ccim@gmail.com