Volume 1, Issue 1 February 19, 2011

Vinod gupta school of management, IIT KHARAGPUR

A N e w B e g i n n i n g . .

It gives us immense pleasure to present by eminent personalities will not only

to you the first edition of the much satiate our financial hunger but also
awaited Financial Weekly Newsletter of broaden our mental horizon beyond the
mundane world of numbers and charts.
Vinod Gupta School of Management, IIT
Kharagpur. Fin-o- This being the first
About Fin-o-Menal: Menal is being ever issue of Fin-o-
brought to you by Menal, we assure
Fin-o-Menal is the
the recently revived you that we are as
weekly Financial News
Financial Club – much excited about
Letter of VGSoM which is this new initiative as
published by Finte`est,
Finte`est!
you are. Yet, we
the Finance Club. know that we will
Never mind if Corp
Come, Take Interest in Fin or Accountancy only get better with
Finte`est! gives you night- time. We will strive to
mares worse than continuously improve
what Shane Warne the quality of the arti-
used to get from Sachin during the 1999 cles and the look and
Money for the week.. Tour of India; We promise to stimulate feel of the newsletter. Hope to make this
and enhance your interest in Finance, a lasting endeavor.
which is precisely why we have named
the club as Finte`est. For the more sea- Editors Note: We encourage you to write
soned Fin enthusiast, we intend to serve your own articles and send them to us.
you with the best articles from renowned With due credits, every week, one article
national and international Dailies, Maga- will be published and named as the
zines, Blogs, and so on. You can look „Article of the week‟. Compliments, Com-
forward to interesting stories and snip- ments and Criticisms regarding the
pets about the latest developments in the newsletter may be sent at finter-
financial world which have the ability to est_vgsom@googlegroups.com or
influence our careers. Insightful articles mailed to Harish, Lavanya or Niloy.

Quick Note: F u t u r e G r o u p ’ s I P O o u t i n M a r c h

Next week‟s issue of

Breaking the market-induced freeze
Fin-o-Menal will be out on
Monday, March 1, 2011
since December, Kishore Biyani led Fu-
owing to the Mid Sem ture Ventures is coming up with an Initial
Exams. Public Offering (IPO) in March. The first
All The Best Everyone! major private sector issue of the year is
coming at a time when FIIs are withdraw-
ing money from the market and many
players have deferred their IPO plans
following a sharp correction in the sec-
ondary market. Whether the gamble
would be successful or not remains to
be seen. Read more here.

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 Fin-0-Menal Volume 1, Issue 1 February 19, 2011
A n d N o w , H a m a r a N a y a P r i c e I n d e x !
Markets this week
In an effort to address the outdated data consumer price index. Seeking to eliminate the
collection processes that have impeded the existing gauge in a year’s time, the new index
Index BSE NSE
timely and accurate measurement of price monitors a wider sample set and has five major
trends, the government on Friday launched a groups. Economists believe the new index will be
Closing
new consumer price index. Combining data helpful in assessing the price situation in India's
Value 17728 5310
Feb 11 from both rural and urban areas, the index diverse economy in a better manner and in bring-
also takes into account the service sector, ing it in line with global trends, making compari-
Closing which was not covered in the existing sons more relevant and easier. Read more here.
Value 18211 5458
Feb 18
T h a t S t i n k i n g F e e l i n g A g a i n !

Change 2.72% 2.81% The massive price volatility shown by some of
the recently listed small IPOs have raised seri-
ous concerns of rigging, with brokers demand-
ing an investigation by SEBI. The prices of two
recent stocks, Shekhawati Poly-Yarn and Om-
Commodities this week kar Speciality have fallen drastically within days
of being released, even though the IPOs were
fully subscribed. Allegations are on that promot
Commodity Unit
` B u d g e t A n d T h e
ers are paid to ensure that the IPO gets fully sub-
scribed even in poor market conditions. Later,
they sell off large chunks, thus making roughly
`5-15 crore per IPO. The ball now remains in SEBI’s
court to investigate the matter thoroughly and
take adequate measures so as to prevent such
malpractices from occurring in the future. Read
more here.
B o n d M a r k e t R e v i v a l

GOLD 20526 10 gm A new policy being considered by the Union that the absence of a well-defined, risk-free yield
finance ministry to allow banks to offer bank curve that underpins all debt issues is one of the
guarantees for domestic debt issues is being biggest fundamental constraints. Unless aggres-
SILVER 48180 Kg seen as yet another attempt by the government sive steps are taken by the government and the
to revive the ailing corporate bond market in central bank to increase the liquidity of banks so
India. However, earlier efforts to kick-start the that they are able to invest in corporate bonds,
corporate debt market, like raising the aggre- such piecemeal measures are expected to have
OIL 3891 Barrel gate limit for foreign investors, have failed to only a marginal impact. Read more here.
show the desired results. Most experts agree

Q u o t e U n Q u o t e
“We believe Asian demand for physical gold and silver is akin to a tsunami. While the world continues to float on a sea of paper, this massive wave of physical de-
mand silently threatens to crash into the physical gold and silver market, potentially wiping out tangible supply.”

- Eric Sprott‟s strong words on Spot Price of Silver being greater than its Futures Price, a rare and usually dangerous bullish forebode.

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

Fun Quote: A Bank is a place where they lend money in fair weather and ask for it back when it starts to rain - Robert Frost

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