BUDGET POSTPONED. ....

Issue 17

Jan 9Jan15

2012

GOVT LOOSENS RULES FOR

. ...2
FOREIGN INVESTORS

NOKIA TIES UP WITH

VODAFONE ....3

The key to making money in stocks is not to get scared out of them. Peter Lynch

Weekly

Website: www.finx.in Email: finx@sscbsdu.ac.in

pulse

Budget Likely on March 15-16

India's federal budget will likely be presented on March 15 or 16. The date will be finalized after consultations with the Prime Minister and the leader of the opposition. The budget session of parliament is likely to begin on March 12. The budget is usually presented on the last day of February, but it will be rescheduled this year due to elections in five states, namely Uttar Pradesh, Uttarakhand, Punjab, Manipur and Goa The states will go to the polls from Jan. 28 to March 3. Counting will take place on March 4 and the election process will be completed by March 9.

Air India may sell aircraft to raise around $600 million

Air India is planning to sell 7 planes for about $600 million, in order to pare its debt by march. Two Boeing 747-400 aircrafts are meant for outright sale, whereas five Boeing 777-200 long range planes will be sold and taken back on lease for 12 years. Large leasing companies such as International Lease Finance Corp and GE Capital Aviation Services buy planes from airlines and lease them back to the carriers. Air India has sought the RBI's approval to treat the companys debt within the prescribed eight quarter limit.

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RBI tweaks overseas borrowing norms to aid India Inc

In a bid to ease foreign currency borrowings, the RBI revised the average maturity for overseas borrowing by Indian companies. External Commercial Borrowing (ECB) up to USD 20 million or equivalent in a financial year is now with minimum average maturity of three years; and ECB above USD 20 million and up to USD 750 million or equivalent with minimum average maturity of five years. This means, Indian companies can now raise money through foreign currency convertible bonds (FCCBs) upto USD 20-750 million without the regulators approval and can repay the debt in 3-5 years time. The time of repayment was not specified earlier. The latest RBI data shows that the overseas borrowings fell to a years low to USD 1.33 billion as on November 2011; compared with USD 4.12 billion in July 2011.

OO CEO IS NEW YAH MPSON SCOTT THO

Scott Thompson, President of eBay inc's PayPal' division, was named as the CEO of Yahoo inc on Wednesday, 4th January. PayPal grew a lot under Thompson's leadership by expanding its user base to more than 104 million users in 190 countries world wide. Prior to PayPal, Thompson was executive vice president of technology solutions at Inovant, a unit of Visa Inc.

India Loosens Rules for Foreign Investors

The govt. moved to allow qualified foreign investors to invest directly in local share markets, in yet another move aimed at attracting foreign capital flows amid a shaky global economy. Qualified foreign investors, or QFIs, will now be able to invest individually up to 5% of the capital of the Indian company. Cumulatively, QFIs can invest up to 10% of the capital of the company being invested in. The new rule will be effective Jan 15. Previously, only foreign institutional investors and non-resident Indians were allowed to directly invest in local shares. However, with capital inflows drying out due to the global economic uncertainty, the govt. is finding it harder to fund its gaping current account deficit. In its annual budget, the govt. had allowed QFIs to invest in local mutual funds. With the new rules, they will be able to buy local shares directly. The govt. has also eased foreign investment rules in local debt, allowing more foreign capital to flow into its sovereign bonds.

Nokia ties up with Vodafone

Nokia India pvt ltd has entered into a partnership with wireless operator Vodafone India ltd to overcome competition from cell phones running on the Android operating system. Nokia has been facing increasing competition in the smartphone segment, with Samsung overcoming Nokia as the smartphone seller in India in the September quarter. Vodafone started selling Nokia's smartphone models, Lumia 800 and Lumia 710 in more than 50 shops in 8 cities in December. Analysts say that the tie-up with Vodafone will also help Vodafone get high average revenue per user.

WEEKLY MARKET STATUS

SENSEX NIFTY DOW JONES 15848.8 *

+393.9 (+2.55%) +122.6 (+2.65%) +142.36 (+1.17%) +158.61 (+0.86%) +77.4 (+1.39%) -0.52 (-0.98%)*** -1.51 (-2.19%) +573 (+2.11%) +3.1 (+3.14%)

4746.9
12359.92

HANG SENG FTSE US$ EURO GOLD MCX (spot price) WTI CRUDE OIL ($/BARREL)

18593.06 5649.68 52.78 67.46 27675

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.

BRAIN SCRATCHER

101.93

*CLOSING SPOT PRICES AS ON LAST FRIDAY i.e. 07/10/2011 **RISE/FALL OVER WHOLE WEEK; FROM 30 Sep to 07 Oct ***NEGATIVE SIGN INDICATE STRENGTHENING OF RUPEE AGAINST $/EURO

LAST WEEKS ANSWERS:

There were no correct entries for last week.

ACROSS

DOWN

2) An individual or broker considered to be an expert in foreign exchange rates 4) A bond denominated in Canadian dollars that is sold in Canada by foreign institutions and companies 5) A trading strategy where the trader borrows short and lends long 6) A stock that has appreciated dramatically

1) A proposed Brazilian currency that would be handed out by the MoE to 7 year olds to be redeemed for university 3) An item that irreversibly declines in value, as a function of time