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by Prahasi Paper Pvt Ltd - [private circulation. Weekly Newsletter] - email: information.bite@gmail.com

You were born to win, but to be a winner you must plan to win, prepare to win, and expect to win.
--Zig Ziglar

News Making The Headlines VOL. 1 ISSUE 33 Weekly

5th April, 2008 Change
INDIAN INFLATION
The Indian economy has been registering a
15343 q 1058
mammoth GDP growth post-liberalization.
The opening up of the Indian economy after 4647 q 304
the 1990s increased India’s industrial output,
which in turn raised the inflation India rate
significantly. Inflation galloped to 7%for the week ended March 22,
Vs 6.68% last week, on higher prices of food, vegeta-
bles, minerals and manufactured items.
The stupendous growth rate of industrial
output and employment created an
insurgency financial modeling may arrest the
enormous pressure on the inflation rate
immediate crisis but the long-term concerns
and pushed it further. The Reserve Bank of
are yet to be allayed or addressed. To arrest
India (the central bank) and the Ministry of
the disturbing sentiments amongst the Indian
Finance, Government of India is concerned
business circles, the Reserve Bank of India
about the present upswing of inflation India.
had given top priority to price stability and
The present rise of inflation India rate could
economic growth sustenance in India, in its
be detrimental to the projected growth and
recently drafted monetary policy. The Reserve
aims of the Indian economy.
Bank of India has raised the Cash Reserve
Ratio in a continuous manner to arrest the rise
The main cause of rise in the rate of
in rate of inflation India.
inflation India is the pricing disparity of
agricultural products between the producer
Most developed nations across the world have
and consumers in the Indian market.
devised several methods to arrest inflation and
Moreover, the sky-rocketing of prices of
bring in stability to its economy. In India, the
food products, manufacturing products, and
solution to this problem lies in rationalizing
essential commodities have also catapulted
the pricing disparity between the producers
the inflation rate in India. Furthermore, the
and the end-consumers along with increasing
unstable international crude oil prices have
India’s agricultural produce. This will not only
worsened the situation. As a result of this,
ensure inflation stabilization but also sustain
the Wholesale Prices Index (WPI) of India
the present economic growth rate of India.
touched 6.1% as on January 6, 2007 and the
Cash Reserve Ratio (CRR) touched 5.5% on
the same day.
Do you Know?
The Reserve Bank of India - the central bank There are around 740,000
of India, has assured the Indian business people living in Amsterdam,
community and the general public about the who own over 600,000
harmless rise in the CRR but apprehensions
bicycles, of which 180,000
still exist amongst business circles in India.
change hands illegally each
The Reserve Bank of India is devising
methods and financial models to arrest the year. Approximately 10,000
rise in the rate of inflation in India. This bikes are found in the city’s
canals every year.
 STOCKS TO FOCUS ON:

STOCK AKRUTI CITY

PRAJ INDUSTRIES
BANK OF INDIA
KOLTE PATIL DEVELOPERS
PBA INFRA
MNM
ROLTA

The road outside the Chicago Art Institute in Chicago was

originally called Michigan Avenue. Now it has been renamed after an Indian. Who?

a. Rabindranath Tagore b. Satyajit Ray c. Swami Vivekananda

Tickle Your Brain
 Jet Airways to hold $400-m rights issue till ‘market
settles’:
News The Jet Airways Chairman, Mr Naresh Goyal, said on Thursday that the air-
bite line will wait for right market condition for come out with its $400-million rights
issue.
“We will not do a distress sale. We will hold the rights issue till the stock market settles,” Mr
Goyal told newspersons on Thursday at the announcement of the airline’s expansion plans on inter-
national routes.
The airline had planned to launch the issue in October last
year, but deferred it to January due to unfavourable market condi-
tions.
Mr Goyal currently holds 80 per cent stake in the airline company. He added that Jet is open
to other sources of funding, “Banks believe in us and would be willing to give us money when re-
quired.
We are open to private equity placement and all other funding options. Money is not a problem
for us,” refusing to divulge any specific details.
The capex for Jet Airways and its low-cost arm Jetlite for 2008-09 would be $4.2 billion and,
according to Mr Goyal, both carriers would turn profitable next year.

Cairn mulls foray into city gas distribution:

In an attempt to capitalise on the downstream opportunities, Cairn India is mull-
ing entry into city gas distribution (CGD) in collaboration with GAIL (India) Ltd.
According to sources, Cairn has sounded out the Petroleum and Natural Gas Regula-
tory Board (PNRGB) in this regard.
While both Cairn and GAIL officials are tight-lipped about the development,
indus try sources told Business Line that the companies are exploring possible
joint venture opportunities in the CGD sector in Gujarat, Andhra Pradesh and Raj-
asthan.
City gas distribution including retail industrial supplies (excluding supplies to power and ferti-
liser) currently constitute 20 per cent of the total natural gas consumption in India. This is in sharp
contrast to 60-65 per cent CGD requirement in the developed countries. The trend is expected to be
reserved once gas availability increases in the country.

Deora urges PM to cut customs duty on crude oil:

With public sector oil companies bleeding because of under-recoveries, the Petroleum Min-
ister, Mr Murli Deora, has asked the Prime Minister, Dr Manmohan Singh, to cut customs duty on
crude oil.
A cut in customs duty would bring down the raw material cost of the oil companies, thereby,
cushioning them from the surge in international oil prices.
Despite the international crude oil prices hovering over $100 a barrel mark, and Indian bas-
ket averaging $99.76 a barrel in March, the oil marketing companies — Indian Oil
Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation
— continue to sell petroleum products below the cost price. Currently, oil compa-
nies are suffering a revenue loss of about Rs 450 crore a day on fuel sales. The
revenue loss on petrol stood at Rs 10.78 a litre and diesel Rs 17.02 a litre.
The companies were suffering a loss of Rs 316.06 per LPG cylinder and Rs
25.23 a litre on kerosene.
 TOP INDIAN COMPANIES IN THE GLOBAL 2000 OF FORBES:
MARKET
SALES PROFITS ASSETS
RANK COMPANY INDUSTRY VALUE
($BIL) ($BIL) ($BIL)
($BIL)
193 Reliance Industries Oil & Gas Operations 26.07 2.79 30.67 89.29
198 Oil & Natural Gas Oil & Gas Operations 18.90 4.11 33.79 54.11
219 State Bank of India Group Banking 15.77 1.47 188.56 33.29
303 Indian Oil Oil & Gas Operations 42.68 1.82 25.39 16.36
374 Icici Bank Banking 9.84 0.64 91.07 29.85
411 NTPC Utilities 7.84 1.60 20.34 41.57
647 Steel Authority of India Materials 7.88 1.45 8.05 26.37
738 Tata Steel Materials 5.83 0.97 11.48 14.63
826 Bharti Airtel Telecom Services 4.26 0.94 6.61 39.16
846 Reliance Communications Telecom Services 3.13 0.65 13.08 29.63
927 Tata Consultancy Svcs Software & Services 4.32 0.97 3.03 21.38
949 HDFC-Housing Devel Banking 1.49 0.40 16.97 19.07
961 Larsen & Toubro Capital Goods 4.68 0.52 5.72 24.94
967 Bharat Petroleum Oil & Gas Operations 22.77 0.50 8.67 4.16
1012 Bharat Heavy Electricals Capital Goods 3.99 0.56 5.17 27.92
1040 Infosys Technologies Software & Services 3.21 0.89 3.08 22.09
1093 HDFC Bank Banking 1.96 0.27 21.09 12.87
1102 Wipro Software & Services 3.47 0.68 3.26 15.87
1111 Tata Motors Capital Goods 7.27 0.50 5.77 6.75

UPWARD MOVEMENT DOWNWARD MOVEMENT

MILE- NO. OF MILE- NO. OF

DATE CLOSE DATE CLOSE
STONE DAYS STONE DAYS
06.07.07 15000 144 14964 08.01.08 21000 20873
19.09.07 16000 53 16323 16.01.08 20000 6 19868
26.09.07 17000 6 16921 18.01.08 19000 2 19013
09.10.07 18000 8 18280 21.01.08 18000 1 17605
15.10.07 19000 4 19059 22.01.08 17000 1 16730
29.10.07 20000 10 19978 07.03.08 16000 32 15976
08.01.08 21000 49 20873 17.03.08 15000 6 14810
274 48

Answer to TICKLE YOUR BRAIN: c.

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