Volume 1, Issue 2 March 1, 2011

Vinod gupta school of management, IIT KHARAGPUR

H i g h l i g h t s o f t h e E c o n o m i c S u r v e y

The Economic Survey for 2011, presented by cern and urged for higher agricultural produc-
Finance Minister Pranab Mukherjee on Feb- tion and expansion of storage facilities to
ruary 25, has estimated the country’s curb rising food prices. There are also plans
e c o n o m i c to allow FDI in
growth at 8.75 the retail sector
to 9.25% for the to help both
fiscal 2012, farmers and con-
About Fin-o-Menal while the figure sumers.
for the current
Fin-o-Menal is the
fiscal was Concern was
weekly Financial News
pegged at 8.6%. also raised on
Letter of VGSoM which
the slippages in
is publi shed by
The r eport the Public Distri-
Finte`est, the Finance
hinted at a bution System.
Club.
gradual exit Plans for adopt-
Come, Take Interest in
from the stimu- ing smart cards
Finte`est!
lus as growth for kerosene and
Editors reverts to pre- fertilizer subsidy
crisis levels. are being consid-
Harish Thangaraj Fiscal deficit for ered for better
the current fi- allocation.
Lavanya Rajasekaran nancial year was 4.8 % while the revenue Among other concerns were the rising oil
Niloy Ghosh deficit is pegged at 3.8%. The survey has prices which could threaten growth. Read
clearly stated inflation as the primary con- more here

T h e R e f o r m e d E c o n o m y i n F i g u r e s
Rates This Week
Since the Economic Reforms began in the impressive ten-fold and the share of services
early 1990s, both the Size and the Nature of growing from 42.7% to 57.8%. The share of
the Indian economy have changed dramati- Agriculture has decreased from 31.4% to
44.99 62.26 cally, with the Indian GDP rising by an 14.2% See it here

73.30 6.84

Quick Note
Watch out for this Satur-
day’s (March 5, 2011)
special Issue covering the
Union Budget.

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 Fin-0-Menal Volume 1, Issue 2 March 1, 2011

B P j o i n s h a n d s w i t h R e l i a n c e
Market Data
Last week BP announced that it would take The deal with Reliance, however, needs to be
up a 30 percent stake in the natural gas approved by the regulators which can be a time
Index BSE NSE
fields operated by Reliance Industries for consuming process. Government officials are
Opening $7.2 billion. The two companies plan to set yet to approve a deal announced in August by
Value 17823 5333 up a joint venture to buy, transport and mar- the London-based Vedanta Resources to buy a
(Mar 1) ket natural gas. This is the second deal by controlling stake in Cairn India. It is also inter-
BP after the Gulf of Mexico oil spill incident esting to note that it was state-run ONGC that
Closing last year, with an earlier $7.8 billion agree- had proposed a strategic alliance with Europe's
Value 18446 5522 ment with Rosneft of Russia to drill in the second biggest oil firm but was rejected by the
(Mar 1) Arctic last month. oil ministry Read more here

Change 3.5% 3.54% T r e n d s i n S e c u r i t i s a t i o n B u s i n e s s

(As on March 1, 2011)
Commodities this week
Commodity ` Unit
The slump in single Corporate Loan sell
downs has caused securitization volumes to
shrink in the period April-December 2010
due to stringent RBI norms and hardening
interest rates. Proposed tough norms regard-
ing the minimum lock-in period and the mini-
mum retention requirement mainly affected
the loan sell-down (LSO) transactions, which
were mostly short-term in nature. LSOs are
simple transactions where banks or non-
banking finance companies securitise the re-
ceivables from a single potential loan. The
activities in asset-backed security market and
home, property loan securitization segment
were flat. But the potential for Asset based
securities transactions are set to grow as Se-
curitization will continue to be an important
funding tool. Read more here

W i l l O i l C r o s s $ 2 0 0 a B a r r e l ?
GOLD 21020 10 gm
The democratic protests across the Middle- their necks out and predicted a price in excess
East and North Africa (MENA) has led to a of $200 per barrel. It may be recollected that in
SILVER 50135 Kg sudden spike in the oil prices. Prices have 2008, Goldman Sachs had predicted that oil
already crossed $100 and don’t seem to be would cross a similar value. However the
cooling off anytime soon. Oil either goes up recession that followed ensured that demand
OIL 4452 Barrel because of higher demand or a supply for oil fell and gradually the prices cooled down
shock. With new found fear that the bigger to more realistic levels. This time around,
oil-producing countries like Saudi Arabia, rampant speculation and panic over the Mid-
(As on March 1, 2011) Iraq and Iran might also experience similar dle-East might just take the prices beyond san-
political protests, analysts have already put ity. Read more here

Q u o t e U n - Q u o t e

“While I seek the blessings of Lord Indra to bestow on us timely and bountiful monsoons, I also pray to Goddess
Lakshmi as well. I think it is a good strategy to diversify one's risks!”
- Pranab Mukherjee during the presentation of Union Budget 2011. February 28, 2011

T o o n O f t h e W e e k

Quick Quote: It's not about money. It's about sending a message.. Everything Burns! — The Joker, The Dark Knight

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