2. INDEX
ECONOMIC ROLLERS............................................................................... 3
RBI COLUMN........................................................................................... 4
CONTEMPLATORS ................................................................................... 6
WHAT HAPPENED TO WORLD & INDIAN EQUITIES .............................. 6
INFLUENCE OF PLASTIC MONEY ........................................................... 8
DEPRECIATING RUPEE………………………………………………………………………10
NISHKA EQUITY RESEARCH………………………………………………………………….11
FINANCE BUZZ ...................................................................................... 13
PHOTO FIND ......................................................................................... 15
FINANCE QUIZZ..................................................................................... 16
CROSS WORD ....................................................................................... 17
CAMPUS POLL ...................................................................................... 18
VERIFY YOURSELF ................................................................................. 20
3. In
ECONOMIC ROLLERS
Repo Rate: 8.25%
Reverse Repo Rate: 7.25%
CRR: 6.0%
SLR: 24%
CBLO (as on 26nd Sep 2011): 7.89bps
Inflation as on Sep 2011:
WPI: 9.78 %
Food inflation: 9.13%
Forex Reserve (as on 26th Sep 2011): $286.3 billion
IIP (for Aug 2011): +5.6%
91 Days T bills (as on 24st Sep 2011): 8.4364%
10 year G- Sec Yield (as on 26th Sep 2011): 8.20%
Exports during Aug 2011: $24.31 billion
Imports during Aug 2011: $38.35 billion
Source: Finance Ministry, Office of Economic Advisory, HDFC Securities
Reports, Ministry of Commerce
BY
PRATEEK LAKHMANI
II MBA C
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4. Information Technology Solutions
RBI COLUMN
CDS INTRODUCED BY RBI BOON OR BANE
Credit default swaps (CDS) are most widely used type of credit derivative
and a powerful force in the world markets. The first CDS contract was
introduced by JP Morgan in 1997 and by mid-2007, the value of the market
had ballooned to an estimated $45 trillion, according to the International
Swaps and Derivatives Association - over twice the size of the U.S. stock
market. Read on to find out how credit default swaps work and the main
uses for them.
How They Work
A CDS contract involves the transfer of the credit risk of municipal bonds,
emerging market bonds, mortgage-backed securities, or corporate debt
between two parties. It is similar to insurance because it provides the buyer
of the contract, who often owns the underlying credit, with protection
“ALWAYS against default, a credit rating downgrade, or another negative "credit
BORROW event." The seller of the contract assumes the credit risk that the buyer does
not wish to shoulder in exchange for a periodic protection fee similar to an
MONEY FROM insurance premium, and is obligated to pay only if a negative credit event
A PESSIMIST, occurs. It is important to note that the CDS contract is not actually tied to a
HE DOESN'T bond, but instead references it. For this reason, the bond involved in the
transaction is called the "reference obligation." A contract can reference a
EXPECT TO BE single credit, or multiple credits.
PAID BACK”
As mentioned above, the buyer of a CDS will gain protection or earn a profit,
depending on the purpose of the transaction, when the reference entity (the
issuer) has a negative credit event. When such an event occurs, the party that
sold the credit protection and who has assumed the credit risk may deliver
either the current cash value of the referenced bonds or the actual bonds to
the protection buyer, depending on the terms agreed upon at the onset of the
contract. If there is no credit event, the seller of protection receives the
periodic fee from the buyer, and profits if the reference entity's debt remains
good through the life of the contract and no payoff takes place. However, the
contract seller is taking the risk of big losses if a credit event occurs.
Hedging and Speculation
CDS have the following two uses.
A CDS contract can be used as a hedge or insurance policy against the
default of a bond or loan. An individual or company that is exposed to a lot of
credit risk can shift some of that risk by buying protection in a CDS contract.
This may be preferable to selling the security outright if the investor wants
to reduce exposure and not eliminate it, avoid taking a tax hit, or just elimi-
nate exposure for a certain period of time.
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5. Information Technology Solutions
The second use is for speculators to "place their bets" about the credit
quality of a particular reference entity. With the value of the CDS market, larger
than the bonds and loans that the contracts reference, it is obvious that specula-
tion has grown to be the most common function for a CDS contract. CDS provide
a very efficient way to take a view on the credit of a reference entity. An
investor with a positive view on the credit quality of a company can sell
protection and collect the payments that go along with it rather than spend a lot
of money to load up on the company's bonds. An investor with a negative view
of the company's credit can buy protection for a relatively small periodic fee
and receive a big payoff if the company defaults on its bonds or has some other
credit event. A CDS can also serve as a way to access maturity exposures that
would otherwise be unavailable, access credit risk when the supply of bonds is
limited, or invest in foreign credits without currency risk. An investor can
actually replicate the exposure of a bond or portfolio of bonds using CDS. This
can be very helpful in a situation where one or several bonds are difficult to
obtain in the open market.
Trading : While most of the discussion has been focused on holding a CDS
contract to expiration, these contracts are regularly traded. The value of a
contract fluctuates based on the increasing or decreasing probability that a ref-
erence entity will have a credit event. Increased probability of such an event
would make the contract worth more for the buyer of protection, and worth
less for the seller. The opposite occurs if the probability of a credit event
decreases. A trader in the market might speculate that the credit quality of a
reference entity will deteriorate some time in the future and will buy
protection for the very short term in the hope of profiting from the transaction.
An investor can exit a contract by selling his or her interest to another party,
offsetting the contract by entering another contract on the other side with an-
other party, or offsetting the terms with the original counterparty. Because
CDSs are traded over the counter (OTC), involve intricate knowledge of the
market and the underlying assets and are valued using industry computer
programs, they are better suited for institutional rather than retail investors.
Market Risks: The market for CDSs is OTC and unregulated, and the
contracts often get traded so much that it is hard to know who stands at each
end of a transaction. There is the possibility that the risk buyer may not have
the financial strength to abide by the contract's provisions, making it difficult to
value the contracts. The leverage involved in many CDS transactions, and the
possibility that a widespread downturn in the market could cause massive
defaults and challenge the ability of risk buyers to pay their obligations, adds to
the uncertainty.
BY Conclusion
MADHAV A Despite these concerns, credit default swaps have proved to be a useful portfo-
II MBA B lio management and speculation tool, and are likely to remain an important and
critical part of the financial markets
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CONTEMPLATORS
WHAT HAPPENED TO WORLD & INDIAN EQUITIES
These days we often hear words like Double dip recession, debt crisis,
bailout and stimulus package etc. These words are not important for a
common man, but they are very powerful for world stock indices. The previ-
ous month was very crucial for stock mar-
kets. The Dow Jones and S & P Indices of US
collapsed 7-9%. The condition of European
and Asian indices are even worst and fell 10
-11%. The Indian indices also lost more
than 1200 points on Sensex and the analyst
predict that soon we can see nifty tumbling
down to 4700 or 4500. The biggest prob-
lem of the entire last month is Rupee that has depreciated more than 7-9 %.
The main reasons for Rupee depreciation is soaring inflation and increasing
current and fiscal account deficit. If we look at the short term prospective the
main trigger for European and US economy to instill a negative sentiment to
entire world economy is that Foreign Institutional Investors (FII) have
sucked $1.8 billion from Indian Stock Markets which is highest since October
2008. FII’s are inclined towards investing in the asset class like Gold, ETF and
Bonds which giving good return than the equity market.
There are some significant global events which took place namely, FED’s
quantitative easing, RBI monetary policy, etc. Fed announced that it would
sell short-term government debt and purchase $400 billion in long-term
Treasury securities. The main reason to purchase these bonds is to reduce
the current short term fluctuation in US economy and thus condense the fear
of a bailout of American Banks. The mission of the FOMC is "to promote
effectively the goals of maximum employment, stable prices, and moderate
long-term interest rates. In US most of the banks stock fell more than 5 %.
Moody’s Investors Service cut its credit ratings on Bank of America, Citigroup
and Wells Fargo, stating that Washington was now less likely to bail out the
banks. Standard & Poor cut Italy's credit rating by one notch that is also a
big shock for Europe.
The RBI’s monetary policies, hiked Repo rate and Reverse Repo Rate by 25
BPS. The main reason of the hike is to curb the rising inflation which is
around 9.5% averages. As the inflation is rising but there is no credit and
investment growth RBI is expecting that interest rate will come down in
second half of the fiscal year but this have also lowered the growth rate .
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The Morgan Stanley Capital International Index (MSCI) is the index of all 6000
stocks of all over the world mostly developed counties. This index provides a
glimpse of the entire world economy because the performance of the
companies listed here reflects the performance of economic growth. MSCI has
also provided a negative sentiment to the market and the CBOE (Chicago Board
Options Exchange) volatility index also shot up more than 21% and Indian VIX
up by 15%. These volatility indexes show the intraday fluctuation in the stock
market. As the volatility index increase investors are very cautious and there is
no stability in the markets. Individual investors are skeptical to purchase in the
market and it remains with traders and derivative market. Thus short term
trader can make money in this market but for long term investor it is very
difficult to play with the volatility. There is heavy shorting in Index and stock
futures, even the Put- call ratio is also at higher side 1.5 shows still market is
not over sold yet.
“MODERN The commodity market has also not provided any kind of support as world
MAN DRIVES commodities fell sharply. The PMI (Purchasing Manager Index) index of Japan,
A Germany, France and China declined which is negative for commodity and
Equity markets. Gold fell from $1780 per ounce to $ 1650 per Ounce and sliver
MORTGAGED
is $40 to $32. An unexpected rise in euro-zone inflation for September also
CAR OVER moderated talk that the European Central Bank would cut interest rates. The
A BOND- euro fell sharply to close its worst quarter against the U.S. dollar since mid
FINANCED 2010.
HIGHWAY ON Now the next shift for markets is quarterly result of companies which is going
CREDIT-CARD to start from next month and the how US and Europe and Greece utilize the 110
billion euro to save it from bankruptcy. Revival of Greece and Italy there can be
GAS “
a hope for world equities as Dow Jones and S& P are at the crucial level of
10400 and 1130. Many analysts still believe that China, South Korean and
Indian market will be get affected by all these because of strong economic,
banking policy and saving policy. October is normally a month of consolidation
where market trade in a narrow range With all these uncertainty whether we
see a double dip or triple dip recession only time can tell that but all these is
very adversely affecting the Indian economy by way of influencing employ-
ment, Exports, IT industry and Investment Banking sectors.
BY
RITESH KEJRIWAL
I MBA B
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8. Information Technology Solutions
INFLUENCE OF PLASTIC MONEY
A year before economic reforms kicked off in 1991, Citibank stole a march
ahead of its competitors and became the first bank to launch a credit card in
India. Fifteen years later, the pioneer has been upstaged by a home grown
player, ICICI Bank, which has raced to the top position in less than four years
with more than 3 million cards. That’s a wild and energetic market for you.
The New York based major has been beaten but not disgraced. With about 2.5
million card holders, Citibank is at second place. Standard Chartered Bank, at
third spot, has issued about 1.78 million cards, and plans to extend its reach to
25 cities by the end of 2005. Close on its heels is State Bank of India (SBI) which
has crossed 1.5 million cards within two years of launching the card. HDFC
Bank is at fifth place with a million cards on its books. HSBC is fighting hard to
be in the reckoning with over 900,000 cards.
Economy driving spends
A thriving economy, substantial increase in disposable incomes and consequent
rise in consumer expenditure, growing affluence levels and consumer
sophistication have all led to a robust growth in credit cards, and each of the
players mentioned above have posted an enviable annual growth rate of more
than 100% over the last two years.
There is no doubt that more and more middle class Indians are letting plastic
rule their day to day lives. Five years ago, there were 4.3 million credit cards
being used in the country. That zoomed to 6.5 million in 2002. A year later that
shot up once again to around 9 million credit cards.
Standout features
An explosive growth in volumes has neither dented quality nor profitability,
and the Indian card market is at par with the best in the world. Here are some
indicators.
Convenience: You need not carry large bundles of cash with you while travel-
ling or transacting. Simply, a credit card is needed to take care of all your
expenses without getting worried about theft or loss. In fact, all third party
transactions can also be made sitting in your comfortable place and without
standing in a queue.
Profitability and growth: Credit cards can be used online with a separate
security number to prevent misuse.
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9. Information Technology Solutions
Growing reach: Indian Railways which runs one of the largest travel book-
ing sites in Asia and offers door-delivery of train tickets if booked online us-
ing credit or debit cards. Credit cards are now being used to pay for even
school fees and hospitalization expenses.
Safe and sound: Safety standards followed by players to prevent misuse
about the best in the world. For example, any transaction above a particular
sum is automatically referred to the issuing bank which calls up the card-
holder in a matter of seconds on the mobile phone to confirm the purchase.
Feature-driven: Product features too match the best anywhere in the world.
Almost all credit cards come with standard frills such as free accident insur-
ance, medical insurance at a heavy discount and much more. The cardholder
is offered the option of converting a big purchase made on credit card into a
loan at a lower rate of interest spread over a long period. Banks now offer
details of expenses incurred on credit cards under different heads – such as
food, clothes and jewellery – to enable easier tracking by the customer. E-
mail alerts and mobile alerts on credit card details are commonplace.
Aggressive marketing
Banks have not only raised the bar in quality and
services but they have also devised aggressive growth
strategies to notch up higher spends on cards. ICICI
Bank, for example, launched three no-holds-barred
campaigns simultaneously during the high festival sea-
son in the last three months of 2004 – a 5% cash back
on all purchases over Rs 2,000, a lucky draw for a
couple to the seven wonders of the world; and a chance to win a
Mercedes E 240.
Result: the bank saw spends shoot up by 36% during the last three months
of 2004. Not that competition has been staying quiet. As soon as ICICI Bank
came out with the cash back scheme, Citibank decided to introduce a new
cash back card on the lines of its popular Citibank dividend card in the US.
Other players too have already announced their plans to take on the top two.
Growing beyond metros
The growth in spending has so far been spearheaded by the burgeoning mid-
dle class in major cities, where consumer spending is concentrated on more
towards lifestyle and luxury goods. However, rural class is still not affected
by this. By issuing credit cards at 107 cities, ICICI Bank has established the
largest reach. SBI, the largest bank in the country with over 9,000 branches,
has broadened its credit card business in 45 cities. When the plastic revolu-
tion spreads, many farmers could be using credit cards to buy seeds and ferti-
lisers.
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10. Information Technology Solutions
Huge market remains untapped
The most heartening part of the growth is that so much still remains to be
covered. Compared to other Asian markets, Indian credit card market is still
at a nascent stage. Credit cards per bankable population in India is 0.03 per
person against 3 in South Korea, 2.66 in Taiwan, 2 in Hong Kong, 1.1 in
Singapore and 0.4 in Malaysia. According to Mr. V.Vaidyanathan, senior gen-
eral manager and head – retail products, ICICI Bank, an average Indian credit
cardholder spends less than $500 on his card annually, compared to around
$800 in Sri Lanka and over $3,000 in Hong Kong and Singapore.
Outstanding dues on credit card (which are the money spinner for any card
issuing bank), are the lowest in the region. The outstanding balance in India is
at $1.5 billion, compared to $90 billion in Korea, $10 billion in Hong Kong and
US $2.5 billion in Malaysia. In other words, the credit card market in India
could continue to register the current blistering growth in the medium to long
term. That should be music to the ears of banks looking for a slice of an in-
“ THERE IS creasingly affluent Indian consumer.
BY
NEVER NIDHI JAISWAL
ENOUGH I MBA B
GOLD TO DEPRECIATING RUPEE
REDEEM ALL The awareness about the fall in Rupee value is not new but now it’s the
THE threat about the Rupee value going all the way down to $50 that looms large.
The fall in Rupee started from August 1 and is continuing since then. The
CURRENCY IN purchasing power of Rupee v/s Dollar is determined by the demand and sup-
CIRCULATION “ ply of Rupee in international market. So the main effected sectors/
commodities are petroleum products, pulses , cooking oil , fertilizers , steel
etc. and the basic gainers are exporters specially IT companies and textile
companies.
Now, RBIs reducing rates to increase money supply in market, so deposit
rates will also move downwards. But the basic reasons for it are:
Dollar is in demand
Dollar is the sole functionary
Collapse of international trade.
The other reason is the on-going Euro Zone Crisis (as Greece owes approxi-
mately $400 billion in debt, of which it has to pay $123 billion by 2014. Ac-
cording to Standard &Poor’s, Greece is rated as “Triple C”, the lowest in the
world, thus resulting in increased fiscal deficit.
The short – term interest rate is increasing as an effect of the depreciating
Rupee. Thus, corporate India is borrowing from overseas, resulting in compa-
nies with foreign debt who will need more rupees to repay their loans in dol-
lar. Hence, they have an increase in debt and decrease in profit.
BY
KUMAR ANIKET
I MBA D
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11. In-
NISHKA EQUITY RESEARCH
Opto Circuits India Ltd.
Opto Circuits (India) Ltd. (OCI) is an MNC in the business of design,
development, manufacture and marketing of healthcare equipment and medi-
cal interventional products. The product profile includes USFDA-listed,
CE-marked cardiac and vital signs and cardiology monitoring systems,
anesthesia and respiratory care equipment, automated external defibrillators,
stents, catheters, body implants and consumables. It holds 168 patents and 53
pending patent applications. Markets –more than 100 countries; predominant
in North America, Europe and BRIC . It has manufacturing and R&D facilities at
USA (Wisconsin ,Deerfield, Waukesha, Rhode Island) , India(Bengaluru ,
Chennai, Vizag , Kolkata , Parwanoo) ,Malaysia( Johor) and Germany (Bonn).
It’s product portfolio includes Non invasive -Patient monitors (Oximeters, vital
signs, cardiology, respiratory and anesthesia care), Defibrillation (AEDs) , PAD
Diagnostics ,Consumables and Invasive-Cardiac (Bare metal stents, Coated
stents and balloons),Peripheral ,coated balloons, Replacement implants,
Catheters.
Target customers are Primary Care Physicians , Specialty Practices, Surgery
Centres, Catheterization Labs, Cardiac Rehabilitation , Veterinary Facilities ,
Community Centres Government Cen-
tres & Offices Schools & Athletics
Nursing Homes, Clinics ,Offices, Mili-
tary & Veteran Clinics.
For the first quarter ending June 30,
2011 (Q1 FY12) , Net Sales stood at
Rs. 520.81 Crore as against Rs. 291.98
Crore in the same period last year . It
reported a growth of 78% in net
sales. EBITDA margin has come down by 5.8% to 27.5% , due to increase in
employee expenses and other expenses , which increased to 8.5% and 11% re-
spectively.
There is 47.5% growth in operating profit . Though PATM has come down to
22.3 % , PAT stood at Rs. 116 Crore with growth of 40 % as against the same
period last year.
International accounts for 98% of the total revenue of the company , where
there is significant growth of 79% against same period in last year. Recent
international and domestic acquisitions by the company results an increase in
operating cost but it is expected to give good volume growth and long-term
growth for the company.
11
12. In-
NISHKA EQUITY RESEARCH
Acquisition of Cardiac Science Corporation
Opto Circuits acquired US -based Cardiac Science, a company that develops,
manufactures, and markets a family of advanced diagnostic and therapeutic
cardiology devices and systems.
Acquisition of N.S. Remedies Pv t. Ltd.
Opto Circuits acquired Kolkata (India) based N.S. Remedies Pvt. Ltd. The
Company has an advanced facility for stent manufacturing and Research &
Development. The Company has the required capabilities to produce stainless
steel and cobalt chromium stents.
Mkt Cap 4120Cr 52W High 324
P/E 16.86 52W Low 212
P/B 3.88 EPS 13.11
CMP 221 Target 280
Stop Loss 185 BUY
Acquisition of Unetixs Vascular, Inc.
BY Opto Circuits acquired 100 percent of the capital stock of US -based Unetixs
Vascular, Inc., a specialist in the detection of peripheral arterial disease (PAD ).
LALIT GOEL Unetixs Vascular designs, develops and markets a full line of world class, US
II MBA A FDA –approved vascular diagnostic systems and accessories to help in the
detection of PAD .Cardiac Science, fully owned subsidiary, launched a new web
-based ‘ishop’ for online shopping of all Cardiac Science products’ accessories
and supplies.
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13. Information Technology Solutions
FINANCE BUZZ
1) ALLIGATOR PROPERTY:
In real estate, when the cost of mortgage payments, property taxes, insurance
and maintenance on a rental property is greater than the income it brings in. If
this situation is not corrected, it will eat up all of the owner's profit, leaving him
or her with negative cash flow.
2) BOIL THE OCEAN:
To undertake an impossible task or project or to make a task or project unnec-
essarily difficult. Boiling the ocean generally means to go overboard.
3) CAPITULATION:
When investors give up any previous gains in stock price by selling equities in
an effort to get out of the market and into less risky investments. True capitula-
tion involves extremely high volume and sharp declines. It usually is indicated
by panic selling.
4) CHAMPAGNE:
A slang term used to describe a stock that has appreciated dramatically. A
champagne stock is one that has made shareholders a great deal of money. Alt-
hough champagne stocks can come from any industry and sector, bubble stocks
have made and lost shareholders quite a bit of money before those bubbles
burst.
5) CATS AND DOGS:
A slang term referring to speculative stocks that have short or suspicious
histories for sales, earnings, dividends, etc. The origin for this term may have
stemmed from the use of "dog" to refer to an underperforming stock.
6) COOKIE JAR:
An accounting practice in which a company uses generous reserves from good
years against losses that might be incurred in bad years. Cookie jar accounting
is a sign of misleading accounting practices.
7) ELEVATOR PITCH:
A slang term used to describe a brief speech that outlines an idea for a product,
service or project. The name comes from the notion that the speech should be
delivered in the short time period of an elevator ride, usually 20-60 seconds. In
the financial world, the speech refers to an entrepreneur's attempt to convince
a venture capitalist that a business idea is worth investing in.
8) FAT CAT:
A slang word used to describe executives who earn what many believe to be
unreasonably high salaries and bonuses. These top executives also receive
generous pensions and retirement packages, consisting of extra compensation
not available to other company employees.
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14. Information Technology Solutions
9) IN THE PINK:
Money that flows regularly between financial markets as investors attempt
to ensure they get the highest short-term interest rates possible. Hot mon-
ey will flow from low interest rate yielding countries into higher interest
rates countries by investors looking to make the highest return. These fi-
nancial transfers could affect the exchange rate if the sum is high enough
and can therefore impact the balance of payments.
10) JANUARY BAROMETER:
A theory stating that the movement of the S&P 500 during the month of
January sets the stock market's direction for the year (as measured by the
S&P 500). The January Barometer states that if the S&P 500 was up at the
end of January compared to the beginning of the month, proponents would
expect the stock market to rise during the rest of the year.
11) LOVE MONEY:
Seed money or capital given by family or friends to an entrepreneur to start
a business. The decision to lend money and the terms of the agreement
are usually based on qualitative factors and the relationship between the
two parties, rather than on a formulaic risk analysis.
12) WASH TRADING:
An illegal stock trading practice where an investor simultaneously buys and
sells shares in a company through two different brokers.
13) YUPPIE:
A slang term denoting the market segment of young urban professionals. A
yuppie is often characterized by youth, affluence and business success.
BY
SATHYA R
I MBA A
14
15. PHOTO FIND
Information Technology Solutions
The given below are the celebrities in the corporate world. Find out who they are
1) _______________________ 2) ________________________
3)_______________________ 4) ________________________
5) _____________________
15
16. In- FINANCE QUIZZ
1) The IMF has cut its forecast for UK economic growth in 2011: to what
percentage?
2) Which country did not receive financial assistance from the IMF and
World Bank during the Asian contagion crisis of 1997?
3) What percentage of the IMF’s budget comes from the U.S.?
4) Who has been charged with the alleged £2.3bn fraud at bankers UBS?
5) Which central bank recently said that it would peg its nation’s currency
to the euro?
6) China holds the largest chunk of U.S. Treasury debt, at roughly $1.6
trillion. Which country ranks second?
7) How many nations are members of the IMF/World Bank?
8) Which noted economist is considered one of the founders of the IMF?
9) The President of the EU has called for a tax on financial transactions.
What is this tax called?
10) Which major UK business announced 3,000 job losses in September
2011?
11) Which firm was named O2 Smarta Business of the Year for 2011?
BY
SHILPI KUMARI
II MBA B
16
17. In-
CROSS WORD
Across
1. A period where the stock or market is "catching its breath" after a decline, char-
acterized by a flat trading range without any noticeable trend
6. International clearing company formed in 2000 from the merger of CEDEL and
Deutsche Bank Clearing
7. Exchange rate between USD and GBP
9. An indicator system that can be used to determine whether or not a stock is
trending and the strength of its trend
10. Long or short position which is not hedged by a corresponding opposite position
Down
2. Ability of borrowers to meet their payment obligations
3. Trading in large packages of securities
4. Checking value-at-risk calculations and investment and hedge strategies against
historic data.
5. Mutual offsetting of claims and liabilities from identical types of transaction be-
tween two parties
8. A slang term for the FTSE 100 stock index
BY
SKANDAN Y N
II MBA A
17
18. In
NISHKA CAMPUS POLL
As per the survey conducted results are as follows
Q1)
Best Response:
*China is widely seen to be taking the lead among the so-called BRICS
countries (Brazil, Russia, India, China and South Africa) in helping to
relieve the pressure on the European Union, which is groaning under the
weight of its sovereign debt problems.
Even with its huge foreign exchange reserves of more than $3.2 trillion,
it's doubtful whether China can be counted on to act as a lone white
knight and slay the eurozone debt dragon. However, repeated displays of
confidence in European economies and the eurozone, indicated by
increased purchases of European government bonds, have helped instill a
degree of calm in the global capital markets and provided much needed
stability for the euro.
The BRICS countries should not be seen as saviours with unlimited
resources to bail out those European countries hit by the sovereign debt
crisis, according to Wang Weihua of the department of international
affairs at Shanghai International Studies University.
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19. Information Technology Solutions
Q2)
“ LIFE
SHOULDN'T
BE PRINTED
ON
Best Response:
DOLLAR BILLS”
* Faced with protests from farmers, the government today decided to lift
the ban on onion exports. The decision to permit shipment of onions was
taken by the Empowered Group of Ministers (EGoM) on Food headed by
Finance Minister Pranab Mukherjee here. "Ban on onion exports has been
lifted," Union Minister for Science and Technology Vilasrao Deshmukh
said. Those who attended the crucial meeting included Agriculture Minis-
ter Sharad Pawar and Food and Consumer Affairs Minister KV Thomas.
The government had imposed a ban on onion exports on September 9
to check its spiralling prices which touched Rs 25 a kg in retail in the
national capital. The Minimum Export Price (MEP) on onions has been
fixed at $475 per tonne, the same level when the government decided to
prohibit the shipment of onion, Deshmukh said. "The situation will be
reviewed after a fortnight," he said. While the ban on exports had an in-
stant impact in bringing down the wholesale prices of the onions by
Rs 2-5 per kg in Delhi, the decision had triggered protests from farmers in
BY the key producing regions of Maharashtra and Karnataka. Farmers in
Nashik district and Bangalore had refused to bring their produce to mar-
NEIZEL.M SOUZA
kets protesting the drop in their profit level due to ban on onion exports.
II MBA A The farmers' agitation forced the government to take a fresh look on the
onion exports ban.
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20. Information Technology Solutions
VERIFY YOURSELF
PHOTO FIND:
1.Vinod Rai, CAG of India.
2. Montek Singh Ahluwalia, Dy. Chairman of Planning Commission.
3.Murali Manohar Joshi, Chairman of PAC.
4.Hari Narayanan. J, Chairman of IRDA.
5. Meg Whitman, CEO of HP.
ANSWERS FOR FINANCE QUIZZ
1. 1.1%
2. Vietnam
3. Kweku Adoboli
4. The U.S. is the largest contributor to the IMF, with a quota of 16.7
percent, which amounts to approximately $58 billion.
5. The Swiss National Bank announced on Sept. 6th, 2011 that it would
be pegging the Swiss franc with a value of 1.2 francs per euro
6. With holdings of more than $900 billion, Japan is No. 2.
7. 187
8. John Maynard Keynes, the father of Keynesian economics, and Ameri-
can Harry Dexter White are widely considered the founding fathers of
the IMF.
9. Tobin tax
10. BAE System
11. Naked Wines “ A FINANCIER
IS A
PAWN-BROKER
WITH
IMAGINATION ”
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21. Information Technology Solutions
Across
1. BASING—A period where the stock or market is "catching its breath"
after a decline, characterized by a flat trading range without any no-
ticeable trend
6. CLEARSTREAM—International clearing company formed in 2000
from the merger of CEDEL and Deutsche Bank Clearing
7. CABLE—Exchange rate between USD and GBP
9. AROON—An indicator system that can be used to determine whether
or not a stock is trending and the strength of its trend
10. NAKEDPOSITION—Long or short position which is not hedged by a
corresponding opposite position
Down
2. SOLVENCY—Ability of borrowers to meet their payment obligations
3. BLOCKTRADING—Trading in large packages of securities
4. BACKTESTING—Checking value-at-risk calculations and investment
and hedge strategies against historic data.
5. NETTING—Mutual offsetting of claims and liabilities from identical
types of transaction between two parties
8. FOOTSIE—A slang term for the FTSE 100 stock index
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22. ABOUT “NISHKA”
NISHKA is a monthly finance magazine brought by the students of the finance club
of CHRIST UNIVERSITY Institute of Management Kengeri Campus. The Idea behind
coining the issue of this magazine is to establish a learning among the students
which helps them to gain an insight about the world of finance.
- TEAM NISHKA
FACULTY CO-ORDINATORS
Prof. Anirban Ghatak
Dr. Jeevananda CAMPUS POLL
CO-ORDINATORS Neizel M. Souza
Flavia Deepika Tellis Praveen Kumar CH
Azhagumathivanan R
ARTICLES
EDITORS Anish Kumar Singh
Divyashree R Aarthi K
Madhav B Neha Singh
CREATIVE & DESIGNING RETROSPECTION
Gowthaman N Manish Santani
ECONOMIC ROLLERS CROSS WORD
Prateek Lakhmani Skandan Y N
STOCK ANALYSIS QUIZ
Lalit Goel Shilipi Kumari
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