Interview: 26 Yogesh Agarwal

Textile Sector's 29 Winning Bets

Be Cautious With Corporate FDs

33

Best Online 66 Shopping deals

November 2012 `45

Finapolis
The
Your Personal Finance Advisor

DIWALI SPECIAL

The Finapolis l NOVEMBER 2012

Your Personal Finance Advisor

EDITORS DIARY
Let The Good Times Roll
he government has begun making the right moves to pull the economy out of the zone of pessimism it had started to slide into. If the ruling UPA combine can stick to the roadmap it seems to have accidentally stumbled upon, the new trading year that commences on Diwali would end up being an extremely bright one for Indian investors. We believe the government realises this is the last chance saloon, which is why its unlikely to give up on the reforms push. In our cover story for the November, or the Diwali issue we look at some of the fundamental factors at play that would help stock markets break out of the two-steps-forward-one-backwards syndrome, and make Goddess Lakshmi smile on retail investors. The weather Gods too have been kind. The first half of the monsoon season was one of the driest in recent memory. Slowing growth coupled with a drought would have been calamitous. But as Ambika TB says in her story on the commodity sector, the copious rains in September almost wiped off the deficit. The outlook for Kharif and Rabi crops look much healthier now. One of the most important, and contentious reform decisions made by the government is a further opening up of the insurance and pension funds sector to foreign investors. PFRDA chairman Yogesh Agarwal in an interview to The Finapolis says it would not only give investors some much needed choice, but also increases chances of them getting better returns. Indias textile industry is all set to enter a phase of hyper growth. In a special report we look at the tremendous growth opportunities in the sector and pick out some textile stocks that can offer returns as high as 25%-40% in the next one year. Rahul Singh who examined the sector contends that companies with strong brands in their portfolio, and extensive retail footprint stand to gain the most. As part of the Diwali package we have some other seasonal special stories. Our research shows that gold as an asset class would continue to glitter given the sluggish pace of global macroeconomic recovery. Today there are avenues such as gold ETFs that allow investors with small corpuses to take advantage of the bullion boom. Diwali is also the time for some heavy duty splurging. Our special correspondent Asheesh Akkaraju (an audiophile and online shopping addict himself) figures out for you the best music system and home theatre options available in the market, and trawls the internet for some really great deals on apparel and lifestyle related purchases. We know music is serious business for the connoisseurs. Therefore, we havent even bothered with cut-price plastic boxes whose only utility is to give the neighbours a headache. Some of them are as expensive as Rs 100,000 but investing in good music is the noblest thing you can do if you ask us. Happy Diwali!

Volume 6

Issue 8

November 2012

Editor TR Vivek vivek.tr@thefinapolis.com Editorial Board R Muralikrishnan Swapnil Pawar Sunil Mishra Varun Saxena Special Correspondent Asheesh Akkaraju Design & Production Praveen AR Vijayendra Kumar Ch Advertising & Circulation Shabna R Iyer For Ad Sales Queries adsales@thefinapolis.com Printed & Published by Mubashir Ansari on behalf of Karvy Consultants Limited. Karvy House, 46 Avenue 4, Street 1, Banjara Hills Hyderabad - 500 034. AP. Printed at SVPCL Limited Regd.Office:206/A, Concorse 7-1-58, Greenlands, Ameerpet Hyderabad - 500 016. AP.

Published for the month of November 2012. Total No. of pages 72 + Covers

All charts and tables are sourced from Bloomberg, unless otherwise indicated.

For Editorial Queries

please contact The Finapolis Karvy Centre, 8-2-609/K, Avenue 4, Street No.1, Banjara Hills, Hyderabad-500 034 Tel: +91 40 23312454
Copyright The Finapolis. All rights reserved throughout the world. Reproduction in any manner is prohibited. The Finapolis does not accept responsibility for returning unsolicited manuscripts and photographs. All unsolicited material should be accompanied by self addressed envelopes and sufcient postage.

TR Vivek

The Finapolis l NOVEMBER 2012

CONTENTS
DIW
Cover Story
SP EC

16

Diwali High 5: Five reasons why the new trading year post-Diwali will be protable

A IA LI

24 46
Add-To-Cart Addiction: E-commerce portals offer some great value buys

Shining g Brighter: Gold is unlikely to lose its sheen. Stay invested

66

Boom Theory: Home entertainment systems: The good, the better and the best

NOVEMBER 2012 l The Finapolis

Monsoon watch

Columns
28 42 48 70 50 65 64 69 Kiran Nanda Om Ahuja A N Shanbhag NR Sivaswamy Statistics Book Review Pn Doctor Tools of theTrade

20 26

Rain Gods To the Rescue: Abundant rainfall in September and October made up for the decit allaying fears of a drought

IN CONVERSATION With Yogesh Agarwal

PFRDA chairman on how FDI in pension funds will give investors more choice and better returns

Special Feature

Automotive

29

Tailormade for Growth: India's textile companies are on the cusp of a big boom

43

Stuck In Low Gear: Falling demand is hurting carmakers. A slew of new launches and festive season buying hold out hope for the sector