Mahindra Satyam to pick stake in Dion.

Issue 21

Feb 6 -10

2012

Decision

on Direct Tax Code deferred .......... ...2

IIP

GROWTH

AT

8.7%

....3

The saddest thing I can imagine is to get used to luxury. Charlie Chaplin
Reliance Communication Profit falls for 10th straight quarter
Reliance Communications reported its 10th straight quarter of declining profit as interest costs soared, with investors betting on a sale of the No. 2 mobile operator's tower business to pare its heavy debt load. Reliance Communications is in talks with U.S. buyout giants Blackstone and Carlyle on selling its telecoms tower arm in a deal that could be worth more than $3 billion, but a deal is not yet close to completion. Reliance Communications, controlled by billionaire Anil Ambani, consolidated net profit fell 61 per cent year-on-year for its fiscal third quarter ended December to 1.86 billion rupees ($38 million). It competes with 14 other carriers in the ferociously-competitive Indian market.

Weekly pulse
Mahindra Satyam to pick stake in Dion for Rs 35 cr
Mahindra Satyam will acquire a minority stake for Rs 35 crore in Dion Global Solutions, the Delhibased firm that provides solutions for capital markets globally. The board of Dion has decided to issue fresh shares on preferential basis to Mahindra Satyam. The company would use proceeds to expand its services and geographical reach. Dion shares went up five per cent to Rs 33.50, while that of Mahindra closed at Rs 71.75 on the Bombay Stock Exchange. Dion, which acquired Frankfurtbased Swissrisk Financial Systems for an undisclosed sum last month, provides solutions and services in portfolio management, trading, settlement, risk management, analytics, treasury and research services to 660 clients in 62 countries.

JSW Steel posts Q3 loss of Rs 48 cr

JSW Steel has reported consolidated net loss of Rs 47.89 crore for the third quarter ended in December due to forex losses, higher raw material costs and the hit taken by group firm JSW Ispat Steel. The company had reported a consolidated net profit of Rs 291.72 crore during the October-December quarter in 2010-11. Net sales, however, rose 41 per cent to Rs 8,404.66 crore during Q3, 2011-12, due to higher revenues from the steel business. The earnings were marred by foreign exchange loss of Rs 558.72 crore and increase in raw material costs by over 50 per cent to Rs 5,639.38 crore. JSW's net finance charges also rose by over 80 per cent to Rs 355.74 crore.

t 2% rts grow a 8 2% Exports grow a t 8

Volume 1, Issue 1

Newsletter Date

July exports rise 82% y-o-y to $29.3 billion while imports grew 51.5% to $40.4 billion, trade data said. However, the growth is deemed to be unsustainable due to chaos in the worlds main markets, US and Europe. Experts are pegging full year growth at around 20-25%. This means that in the remaining months exports would expand less than 10%, mainly affecting the IT and Textile sector.

Mutual Fund assets rose 8% to Rs 6.59 trillion by January end

The Indian mutual fund industry's assets increased to Rs 6.59 trillion in January, registering an increase of Rs 477 billion on a monthon-month basis. According to Crisil Research, the 8 per cent rise last month over December was on higher inflows in money market funds and mark-to- market gains in equity funds. Money market funds witnessed inflows of Rs 264 billion in January, taking the total assets under this category to Rs 1.48 trillion compared with Rs 1.21 trillion in December. Meanwhile, as a result of the uptick in the equity market, assets under equity funds surged by Rs 184 billion or 11 per cent to Rs 1.80 trillion. The equity market rose around 12 per cent in January spurred by positive global and domestic cues. Gilt funds recorded highest inflows since September 2010 of over Rs 5.21 billion in January. Income funds (including ultra short-term debt funds) saw outflows of Rs 29 billion in January, primarily because, investors preferred long-term debt avenues on views of peaking of interest rates in the domestic economy. Fixed Maturity Plans (FMPs) continued to garner majority of the new fund offers (NFOs) during the month. In January, 49 FMPs were launched garnering Rs 78.44 billion compared with three other NFOs launched, which in total garnered only Rs 6.57 billion. An analysis of month-on-month mutual fund flows and AUM distribution, shows that Money Market Funds, Gilt Funds and Gold ETF funds were the three categories which witnessed a net inflow of Rs 264.29 billion, Rs 5.21 billion and Rs 0.82 billion respectively.

Standing Committee defers decision on Direct Tax Code report

Amidst differences on some of the issues, the Standing Committee on Finance has postponed adoption of its final report on the Direct Tax code. The Committee is expected to give its nod by March 2 after three more meetings. The Committees report may help the Government to introduce some of the provisions of the proposed Code in the Budget for 2012-13. Although the Government had planned to replace the five-decade-old Income-Tax Act, 1961 with a brand new Code from April 1, 2012, it is now expected to be introduced only from April 1, 2013. A Bill was introduced in Parliament last year which was referred to the Standing Committee on Finance headed by BJP leader and former Finance Minister, Mr Yashwant Sinha. It is believed that the committee in its draft report has favoured increasing the exemption limit to Rs 3 lakh against Rs 2 lakh proposed in the Code. It is also understood that the Committee, has also suggested categorisation of the home and commercial property for the purpose of income-tax. The income from these two sources should be accorded different tax treatment. passage. We can expect the same with the Direct Tax Code, an expert said.

Rupe

yen inst pound,inst r; reco recov llallar; vers aga ers aga 8 paise vs doo d up e p e Rupe8upaise vs

The rupee gained eight paise to close at 49.42/43 against the US dollar on fresh selling of the American currency by exporters. The local unit moved between 49.38 and 49.76 at the Interbank Foreign Exchange (Forex) market, before settling higher by 8 paise, at 49.42/43. Forex dealers said if not for the firm dollar in the global markets, rupee's gain would have been sharper. Meanwhile, the BSE benchmark index Sensex closed down by 82.06 points at 17,748.69. According to Sebi data, foreign Institutional Investors (FIIs) pumped in USD 294.27 million, taking the total investment to over USD 3.977 billion in

the current calender year.The dollar index, a gauge of six major currencies was up by nearly 0.2 per cent after European finance ministers refused to sign off on a second bail-out package for Greece. The RBI has fixed the reference rate for the US dollar at 49.6445 and for euro at 65.7995. The rupee recovered against the pound sterling to end at Rs 78.21/23 from the previous days close of 78.41/43 and also firmed up to Rs 65.46/48 per euro from Rs 65.67/69. It also recouped against the Japanese yen to Rs 63.60/62 per 100 yen from its last close of Rs 64.18/20.

Separate auction should be held for new telcos

In a press conference, Sigve Brekke, the managing director of telecom service provider Uninor said that there should be two auctions for the new telecom licences - one auction for the new companies, where in they bid for both spectrum and license, and another one for existing players where they can bid for spectrum. However, no matter what the auction process, the principle of transparency and fairness should be followed. He believes that the auction should be about new players and fresh licences because a competitive market will benefit the customer.

WEEKLY MARKET STATUS

SENSEX NIFTY DOW JONES

17,748.69 5,399.80
12,801.23

514.71** (2.99%) 195.1 (3.75%) 66.6 (.523%) 282.19 (1.3764%) 69.42 (1.20%) .0045 (.009%)*** .7595 (1.168%) 137 (.49%) -.33 (-.333%)

HANG SENG FTSE US$

20,783.86 5,852.39 49.6445 65.7995 27967.00

FinX comes with yet another edition of crossword. First 3 correct entries will get their name featured on the Facebook page and the next Weekly Pulse.
6 8

BRAIN SCRATCHER

EURO GOLD MCX WTI CRUDE OIL ($/ BARREL)

98.7

*CLOSING SPOT PRICES AS ON LAST FRIDAY i.e. 10/2/2012 **RISE/FALL OVER WHOLE WEEK; FROM 6 Feb to 10 Feb ***NEGATIVE SIGN INDICATE WEAKENING OF RUPEE AGAINST $/EURO

3 2

LAST WEEKS ANSWERS:

I1 S R A E R L C2 A A4 L L M R A R R
3

A R

O N

O N G E I6 N T E R V I V O S

F5

We didnt receive a correct solution of the last crossword. BUCK UP GUYS !!

ACROSS

DOWN

1. Paul Allen was the co-founder of which company?

4. Municipal or local government laws which dictate how real property can and cannot be used in certain areas.
5. A form of quasi-currency that is issued by a body other than a central bank. Emergency money. 7. Office automation major Ricoh is from which country?

2. A marketing approach used to measure the results of an advertising campaign.

3. Inadequate withholding of taxes from wages or other income during the year. 6. The Comp in Compaq stands for? 8. A slang term for a young urban professional who cannot afford property