Rs 18,000,000,000,000 lost in 7 days

On Wednesday morning, the Indian stock market may have opened high on the back of a 0.75% rate cut by the US Fed, giving some respite to market players. But investors on Dalal Street have lost a whopping Rs 18.05 trillion in the last seven days of market mayhem that included a fall of more than 4,000 points in the benchmark 30-share Sensitive Index or Sensex.

The Bombay Stock Exchange, which opened on a weak note Tuesday morning, managed to rebound from the day's low but finally ended the day at 16,729.94, a fall of 875.41 points. On Wednesday it has risen smartly, with major index stocks ruling high.

However, on Tuesday, within minutes of the market opening, investors had lost over Rs 6 trillion. Trading was immediately suspended for an hour after the 30-share barometer hit the circuit limit of 10 per cent.

On Tuesday alone investors lost over Rs 6 trillion. Add to it the over Rs 12 trillion loss suffered by investors on Dalal Street in the last six days.

"Retail investors should stay away from markets for the next few days. If they intend to invest they should go for mutual funds. Investors with a long-term perspective should however go for a stock specific approach," R K Gupta, managing director, Taurus Asset Management Co said.

Sensex, Nifty up; HDFC soars 9%

The Sensex pared gains as it touched a low of 17,179. The index is now up 500 points at 17,230.

The NSE Nifty has gained 133 points at 5,033.

HDFC [Get Quote] has zoomed 9% to Rs 2,705.

Bajaj Auto [Get Quote], SBI [Get Quote] and Hindalco [Get Quote] have soared over 6% each to Rs 2,190, Rs 2,292 and Rs 160, respectively.

NTPC and Grasim [Get Quote] have surged over 5.5% each to Rs 208 and Rs 3,019, respectively.

ICICI Bank [Get Quote], Reliance Communications [Get Quote] and BHEL have rallied around 5% each to Rs 1,184, Rs 603 and Rs 2,080, respectively.

Tough to keep the Nano at Rs 1 lakh

Three years ago, I visited the Taj Hotels IndiOne (now called Ginger) budget hotel property in Bangalore. I didn't actually stay there. I wanted to understand how a hotel room could retail at Rs 1,000 a day and yet offer some pretty decent amenities.

The 101-room property located at Whitefield was small, yet smart and modern in appearance. You walked in and were greeted with a reception on one side and a tastefully laid-out caf�. Every room had an LCD television and a coffee maker. There was no room service or house keeping.The entire place was spotless clean.

For a budget business traveller, this made a lot of sense since most people only need a room to sleep. Since then, the Ginger chain, the Tatas' first conscious go at the "bottom of the pyramid", has grown to 11 properties, somewhat quietly. Incidentally, C K Prahalad, the author of the concept, was present at the IndiOne launch along with Ratan Tata in June 2004. Tata made one of his early mentions of the Rs 1 lakh car then.

After having browsed around, I asked an Indian Hotels official the secret behind the sub-Rs 1,000 a room-night. "There are several reasons but one is our capital cost per room, which is between a fifth to a tenth, depending on who you compare us with. And second is that there are only 25 people running it," he said. There are no porters, either.

As I understood, the project managers on the Ginger had done an exhaustive job of researching costs and materials before putting together a combination of product and service that was affordable to a larger populace while remaining faithful in form to the parent brand.

A few days ago, I checked what the Ginger rates were. Well, the single room that went for Rs 900 in late 2004 when I visited is now going at Rs 1,999, a more than 100 per cent increase. The double room, which went at Rs 950, now quotes at Rs 2,499. Quite possibly, there are more amenities being offered for the same price.

The Tata Nano project has scored some amazing firsts in terms of technologies and material costs. The Rs 100,000 question everyone is asking for the past few two weeks and will ask in coming months is how long it will stay that way.

There is, unfortunately, a growing dichotomy between the cost of development in India (drifting lower) and the cost of running and operations, which is high or going higher. The producers and the innovators understand this but consumers tend to mix up the two, leading to disappointments, at least perceptionally. Most companies (including no-frills airlines) have failed to hold prices post launch. For various reasons including some beyond their control.

Prices don't stay down unless there is strong competition and scale production to keep it that way. At Rs 1,999, a night at the Ginger is still good value for money. But the launch promise (maybe not so overt as the Nano) was for a sub-Rs 1,000 room. So while there may not be street protests on the matter, the only way that price will come back is if a competitor launches a chain with similar features at lower prices.

Will that happen with the Nano? Several global auto majors have announced small car projects but it's unlikely that anyone will really take on Tata Motors [Get Quote] in this department. So what could well happen is that the Nano's price will drift upwards to a more comfortable equilibrium. Which might well be forced by inflationary pressures as well.

The challenge, to my mind, is to apply the same R&D and cost rigour to operations and continuing development as was done while developing the original product or service. Will Tata Motors put the same R&D rupees into the project figuring how to keep the car at Rs 100,000 (or thereabouts) in 2010 as they did while creating it in 2008. Possibly, but it won't be easy.

Markets like North America have a lot to teach in this regard. Prices of most consumer products have either remained static or have been drifted lower as corporations have outsourced en masse. Billions might have been spent designing the iPod in Cupertino. But the price of the iPod has been falling since launch. Yes, it's made in China. Competition and cost-cutting endeavours in the west created an entire outsourcing industry which created an Indian IT services industry.

The bottom line is that few markets in India witness the bitter competition that is required to keep running costs low. Would Indian companies have done what companies in America do to hold costs? Perhaps yes, but they may not be forced to. So will the Nano continue to cost Rs 100,000 or the Ginger sell rooms at Rs 1,000 per night. That would depend on how much continuing R&D the Tatas do into holding and reducing costs. Which typically would depend on how much competition they are truly exposed to.

Trading begins, markets recover slightly

The stock market re-opened after trading was suspended for one hour at the Bombay Stock Exchange after the benchmark Sensex fell to the low of 15,576.30 within minutes of opening, crossing the circuit limit of 10 per cent.

The Sensex is currently trading at 17,068, down 536 points from the previous close. Nifty is at 5017, down 191 points. NSE advance-decline ratio is at 1:12.

There was some stability seen in the markets upon re-opening. The Sensex and the NSE Nifty were still down 4% and 5% respectively, but the recovery has brought some semblance of sanity to the stock markets.

Early shock

On Monday, the 30-share barometer tumbled by 1,408 points on concerns regarding the American economy going into recession.

The market opened at 16,884.09 points. At the time suspension, the Sensex was quoted at 15,576.30 points, plunging 11.53 per cent from Monday's close.

A similar trend was witnessed at the National Stock Exchange, whose barometer Nifty opened at 5,203.35, and later spiralled downward to a low of 4,569.50, a slide of 12.1 per cent. It was last trading at 4,578.35 points.

If the Nifty falls another 306.93 points and the Sensex another 1,326.63 after the market opens at 10.55AM, then trading will be halted for another two hours, reported NDTV Profit.

This is the fourth instance that the market has hit 10% lower circuit, said a CNBC-TV18 report. The first time was during the Harshad Mehta scam in 1992, then in 2004, when the NDA lost to the Congress and in October 2007, when the P-Note issue was on. The Sensex is down 25%, Nifty, down 28% and CNX Midcap is down 31% from its life-time highs.

Don't panic, says FM

Finance Minsiter P Chidambaram said that investors should not panic as the fundamentals of the Indian economy are still strong. The woes of the Western economies should not be taken as an indication of a weak Indian economy, he said.

The finance minister has said he is hopeful "that there would be a new beginning for the markets."

Now you can swipe your mobile phone to purchase things, much like a credit card, with a Mumbai-based company rolling out a technology to enable this

Boys elbowed aside mothers and old men, drawing their cellphone cameras as though they had spotted Britney Spears, rather than the toaster on training wheels that the Nano more nearly resembles.

"It is a revolution," one said. "It is a real achievement," added another. To all, it was proof in gleaming steel that India's engineers could do what was thought impossible: design a $2,500 car that does not require home assembly or a giant windup key.

Also amid the throng was Mohammed Yameen. Unlike the others, he had no designer zip-up sweater or polished shoes. He had a dirty chest-length beard, a blue jacket turned brown by dust, and is missing a few teeth. Yet he also had a smile that lasted minutes. In broken English, he exclaimed: "I want this car."

The miracle of the Nano is that, when it becomes available to the public this autumn, he might be able to have it.

In a country still emerging from the notion of caste, where status is keenly felt and now often defined by one's possessions, the car has become one of the ultimate measuring sticks dividing the haves from the have-nots. The Nano suggests that might no longer be the case.

"It is a giant symbol," says Dipankar Gupta, a sociologist at Jawaharlal Nehru University here. "The wannabe motorcar owners have become gotta-be motorcar owners."

Is it safe? Compared with a Volvo S80, probably not. Is it reliable? Who knows, but it probably won't take any J.D. Power awards from Honda. Yet for tens of millions of Indians, the question is: "Is it better than the scooter that I have had for eight years and fixed so many times that I am now using spare parts from my ceiling fan to hold it together?"

The answer, it would seem, is a categorical "Yes."

Indian roads are circuses of elephants, death-defying traffic maneuvers, and attempts to wedge as many cars across a three-lane road as Newtonian physics will permit. At the center of this carnival is the consummate Cirque du Soleil act: a family of four on a scooter. As Tata's chairman, Ratan Tata, pointed out while unveiling the Nano, it is a ubiquitous sight: a young child standing in the footwell holding the handlebars, a father driving, and a mother behind (riding sidesaddle in her flowing sari, of course), holding an infant.

By this measure, the Nano could be a quantum leap forward in safety and reliability. Despite the much touted economic boom, only 0.8 percent of Indians own a car. And of all the vehicles sold in India from April to November of last year, 77 percent were two-wheelers – motorcycles, mopeds, or scooters.

Mr. Yameen says he came to the Auto Expo on a two-wheeler, and as he looks at the Nano, he says, breathlessly wide-eyed: "Very beautiful."

Even among those more well heeled than Yameen, the Nano draws raves.

"This is beyond expectation. It is going to make a revolution," says Pratishtha Dipathi, a well-dressed young woman.

Economists, however, question whether such a car can be profitable with such low profit margins: The day Tata unveiled the Nano, for example, its stock fell 6 percent.

In principle, though, Mr. Tata is attempting to do something akin to what Henry Ford did with his Model T. Rather than waiting for more of the population to rise economically to the point where they can buy a car, he has used his company's engineering know-how to reinvent what a car can be. He hopes to turn a profit by sheer volume, tapping into those untapped, poorer reaches of the Indian market.

It is a quintessentially Indian idea. For decades, Indian technology has been focused more on practicality than pomp, hoping its use will help the country's poor. The country's space program, for example, has long concerned itself only with helping farmers and schools through weather and communications satellites.

Now, the country has a car to carry on the tradition, and its people below the famous-but-still-small upper-middle class are cheering. Says Professor Gupta: "These are the people who are really excited by it."

Now, swipe your mobile to pay bills

Now you can swipe your mobile phone to purchase things, much like a credit card, with a Mumbai-based company rolling out a technology to enable this.

The company has already roped in Axis Bank for the service and is in the advanced stages of beta testing, while the commercial launch is just three months away.

The company behind this innovation is Atom Technologies, a subsidiary of the BSE-listed Financial Technologies (India) Ltd, which runs the Multi Commodity Exchange of India.

According to FTIL director (Technology), Dewang Neralla, Atom Technologies' product -- Atom Card -- and software can burn the user's credit card data to a mobile phone, that too over-the-air (like making a call or sending an SMS).

The data would be stored in a 2-D bar code format and cannot be read even by the user, assuring security in case the handset is lost or stolen. However for making a purchase an authentication -- providing the PIN -- has to be made.

After the credit card data is burned on the mobile phone (irrespective of the operator, but in collaboration with the card-issuing bank), the handset can be used instead of credit cards.

The swiping model, which the company terms as optical payment, can be done at any merchant establishment that has the requisite software. The company will upload a 2-D barcode on the phone that can be read by a simple webcam with the necessary software.

Neralla claims that a Rs 200-webcam is all that is required for reading the 2-D barcode. The company has also received a patent for this payment mode in the US.

The second method is remote location, or over-the-air authentication, by which the user can use the cards sitting at home or office. In this case, the merchant establishment and the bank are connected over the air and the user will have to approve the purchase. Hitherto, the user will have to authenticate the deal.

However, the system will work only on Java-enabled phones (a high-end graphic suite), and at present, the lowest Java handset available in the market is priced at around Rs 3,000, said Niranjan Gosavi, chief marketing officer, Atom.

Atom would provide the software free-of-cost to banks, merchant establishments and customers, but will levy a percentage of the transactions as its fee, he said.

The company, which is already doing a pilot study with 500 customers of Axis Bank, is in the advanced stages of tying with other banks in the country. Atom is also planning to provide the solution to overseas market and is in talks with international banking majors, he added.

Companies like Bharti Airtel [Get Quote], Reliance Communications [Get Quote] and C-Sam (a firm founded by Sam Pitroda) were also looking at offering mobile commerce solutions.

C-Sam had earlier launched mobile wallet in Japan and Scandinavian countries, while Airtel and RCom are offering certain wallet services like money transfer, mobile remittance, cheque clearance, ticket booking, among others, over mobile.

Value-added service providers like IMImobile and Roamware are into the developing of these kinds of applications.

However, the Reserve Bank of India [Get Quote] is yet to give clearance for mobile wallet services and companies are waiting for the apex bank's approval.

Reliance Industries Q3 PAT at Rs 8,079 crore

Reliance Industries Ltd posted a net profit after tax of Rs 8,079 crore (Rs 80.79 billion) for the third quarter ended December 31, 2007 as compared to Rs 3,081 crore (Rs 30.81 billion) for the corresponding quarter in 2006.

The petrochemicals giant registered a total income of Rs 34,831 crore (Rs 348.31billion) for the third quarter ended December 31, 2007 as against 28,315 crore (Rs 283.15 billion) for the same quarter in 2006.

All you must know about personal loans

When a bank lends to an individual it is usually for a carefully defined purpose like buying a home or obtaining higher education.

By contrast a personal loan is a much more flexible loan which can be used for a variety of purposes: say paying for a wedding, re-decorating your home or an expensive holiday.

Most major banks as well as some finance companies offer personal loans and for some purposes they may be the best, or even the only way, to obtain finance.

What are the advantages and disadvantages of a personal loan?

The main advantage is the flexibility of using the money for whatever purpose you intend. Secondly personal loans are usually unsecured which means you don't have to offer security or obtain a guarantor.

Finally there is less paperwork involved since the bank doesn't have to verify assets used to secure the loan which also means that these loans are approved more quickly.

• Take personal loan to acquire that dream house

The disadvantage is that these loans are relatively difficult to obtain and the qualifying criteria are stricter than for other loans. The rate of interest is also higher than for most other loans and may be as high as 25 per cent particularly if your credit profile is weak.

What determines the size of a personal loan and interest rates?

The size of the loan you are eligible for depends mainly on your personal income; other variables include your age, profession, education and your history of repaying other loans.

Typically you may be able to obtain a loan around twice your annual income up to a limit of Rs 10 lakh. It may be possible to club the income of your spouse in order to increase your loan eligibility.

• Should you prepay that costly personal loan

Interest rates also vary according to your profession. Generally salaried workers in reputed firms have to pay a lower rate of interest whereas self-employed workers, particularly those who aren't professionals, have to pay a higher rate of interest.

Apart from interest rates are there other charges?

Yes and it's important to read the fine print to see what additional fees are associated with the loan. If possible try to negotiate down these charges. Such charges may include a processing fee which covers the cost of processing your application and documentation charges to cover the expenses of verifying your documents. In addition you will to have pay service tax on both interest payments and other charges.

What is the documentation required?

The main documentation is a proof of identity and proof of residence (passport, voter ID etc.) as well as a proof of income. The latter can be a salary slip for salaried individuals or an income tax return for the self-employed.

Repayment of personal loans

Typically personal loans will be offered for a period of 1-5 years and are repaid on a monthly basis through EMIs (equated monthly installments). Prepayment is possible but will generally carry a significant prepayment charge.

• 'How I make money by taking loans'

If interest rates fall it may be possible to shift a personal loan from one bank to another to take advantage of the lower rates to reduce EMIs.

Tips for using personal loans

~ Personal loan rates are negotiable and you should negotiate hard to reduce your rate. If you have a good repayment record on other loans use that as a negotiating point.

~ Shop around at different banks as there is a fair amount of variation in the rates offered. In addition to interest rates make sure you compare other charges as well.

~ Personal loans usually charge a lower rate of interest compared to credit cards. If you have large credit card dues, paying them off through a personal loan may be a good way of saving money.

Common man needs food before cars

At a time when all eyes are riveted on the cheapest car, experts reckon that more than cars, the country needs food grains for the common man. If this need is not tended to immediately, it could catapult into a major food crisis for India.

"The last few years have seen under-investment in agriculture, leading to a shortage of foodgrains and high prices. The cost of wheat has jumped from $130 to $500 per tonne in a short time. Everyone wants to invest in IT and computers but not in agriculture," said Vasant Gandhi, professor at Indian Institute of Management, Ahmedabad, speaking during the inaugural session of 'Amaethon', the agri-business business school meet.

Echoing his views Anurag K Agarwal, another IIM-A professor, said 2�3rd of the population in India was involved in agriculture and India still had to import wheat.

"We cannot do business with a begging bowl. Our farmers cannot compete with farmers in the US and UK considering the subsidies offered to them but we have to take up this challenge. We need foodgrains but are looking at being the cheapest car manufacturer in the world," said Agarwal.

The meet was presided by Vinod Kapur, chairman, Kegg Farms who spoke from personal experience that the poultry industry was largely a household affair with three crore households in India traditionally raising poultry without the benefit of technology or organised delivery models.

Tips on moving up the corporate ladder

Sometimes you've got to show the higher-ups you can do the job before they give it to you.

Forward-thinking employees know that and are taking on additional responsibility to prove they should get promoted or switch departments altogether. Yes, it takes additional planning--and lots of extra hours at the office--but the effort can pay off.

Slideshows:
How to juggle two posts
How to take a year off without ruining your career

"It's like having a business plan for yourself," says Janet G. Lenz, an assistant professor and career counselor in Florida State University's career centre.

Take Greg Topalian. He started working at Reed Exhibitions 10 years ago as a salesman, and now he's a senior vice president at the Norwalk, Conn., trade-show operator. His steady climb up the corporate ladder is a direct result of asking himself what it takes to get to the next level.

"This wasn't about how I could steal my boss' job," says Topalian. "It was more, 'What skills does he have that I don't?' When I started as a salesman I realized my sales director does things I don't, so I'd offer to help. I'd say, 'How can I make your life easier? Can you show me?'"

Prior to getting his current job, he served as group vice president at Reed. Once he had that job under control, he analyzed what it meant to be a senior vice president. One of the job's main aspects is thinking globally. Topalian demonstrated that mode of thinking by creating a training model for all exhibitors on how to get the most out of their trade shows.

Infosys Q3 net up 25 pct, beats forecast

Infosys Technologies Ltd, India's No. 2 software services exporter, beat forecasts with a 25.2 percent rise in quarterly profit on Friday, bolstered by increased outsourcing demand from overseas clients looking to cut costs.

Infosys, which is also listed on Nasdaq, said net profit rose to 12.31 billion rupees ($313.23 million) in the fiscal third quarter ended Dec. 31, from 9.83 billion rupees a year earlier.

A Reuters poll of 13 brokerages had forecast Bangalore-based Infosys, whose clients include ABN AMRO and Goldman Sachs, would post a net profit of 11.77 billion rupees on revenue of 43.26 billion rupees.

A vast pool of English-speaking workforce and relatively cheaper wages have helped services firms to grab outsourcing jobs from western clients looking to reduce costs, but a stronger rupee, rising pay and a slowing U.S. economy are big worries.

Shares in Infosys, the worst performer in the benchmark BSE index in 2007, fell 6.8 percent in October-December while the sector index slipped 2.1 percent.

The BSE index had risen 17 percent in the quarter.

This is what the Tata Rs 1-lakh car looks like

The Tata Rs 1-lakh car is here! And it's called the Nano!

Tata Group chairman Ratan Tata on Thursday unveiled the Tata Nano at the 9th Auto Expo in New Delhi.

Details of the People's Car:

Ratan Tata, while unveiling the Nano, said: "The car will meet all current safety norms and all emission criteria. The pollution it will cause will be lower than 2-wheelers."

The car, he said, is smaller than a Maruti 800, but has 21 per cent more volume or space inside than the 800. He said that the dealer price of the car will be Rs 1 lakh, plus value-added tax (VAT) plus transport charges.

The car will have a 624-cc petrol engine generating 33 bhp of power. It will sport a 30-litre fuel tank and 4-speed manual gearshift. One of Nano's three versions will come with air conditioning, but will have no power steering. It will have front disk and rear drum brakes. The company claims mileage of 23 km per litre.

The car's dashboard features just a speedometer, fuel gauge, and oil light. The car does not have reclining seats or radio. The shock absorbers are basic.

Nano, the world's cheapest car, costs almost half of the cheapest car currently available anywhere in the world.

''Since, a promise is a promise the standard dealer version will cost Rs 1 lakh,'' said Tata Sons chairman Ratan Tata.

He informed that the car is 8 per cent smaller bumper to bumper, than the Maruti800 but at the same time 21 per cent larger in its interiors and can sit up to four people

The Sensex story: From 1K to 21K

The Bombay Stock Exchange benchmark Sensex crossed the 21,000 level in early morning trade for the first time on Tuesday on heavy buying by funds.

Scaling a new peak, the Sensex spurted 264.88 points to touch 21,077.53 points in the first five minutes of trade.

Similarly, the wide-base National Stock Exchange's Nifty also hit 6327.65 points, up 48.55 points, as most of the index related shares traded higher.

The stock market barometer Sensex had crossed the 20,000-mark on December 11. (See below for the timeline)

Following is the timeline on the rise and rise of the Sensex through Indian stock market history.

1000, July 25, 1990

On July 25, 1990, the Sensex touched the magical four-digit figure for the first time and closed at 1,001 in the wake of a good monsoon and excellent corporate results.

2000, January 15, 1992

On January 15, 1992, the Sensex crossed the 2,000-mark and closed at 2,020 followed by the liberal economic policy initiatives undertaken by the then finance minister and current Prime Minister Dr Manmohan Singh.

3000, February 29, 1992

On February 29, 1992, the Sensex surged past the 3000 mark in the wake of the market-friendly Budget announced by the then Finance Minister, Dr Manmohan Singh.

4000, March 30, 1992

On March 30, 1992, the Sensex crossed the 4,000-mark and closed at 4,091 on the expectations of a liberal export-import policy. It was then that the Harshad Mehta scam hit the markets and Sensex witnessed unabated selling.

5000, October 8, 1999

On October 8, 1999, the Sensex crossed the 5,000-mark as the BJP-led coalition won the majority in the 13th Lok Sabha election.

6000, February 11, 2000

On February 11, 2000, the infotech boom helped the Sensex to cross the 6,000-mark and hit and all time high of 6,006.

7000, June 20, 2005

On June 20, 2005, the news of the settlement between the Ambani brothers boosted investor sentiments and the scrips of RIL [Get Quote] [Get Quote], Reliance Energy [Get Quote] [Get Quote] [Get Quote], Reliance Capital [Get Quote] [Get Quote] [Get Quote], and IPCL [Get Quote] [Get Quote] [Get Quote] made huge gains. This helped the Sensex crossed 7,000 points for the first time.

8000, September 8, 2005

On September 8, 2005, the Bombay Stock Exchange's benchmark 30-share index -- the Sensex -- crossed the 8000 level following brisk buying by foreign and domestic funds in early trading.

9000, November 28, 2005

The Sensex on November 28, 2005 crossed the magical figure of 9000 to touch 9000.32 points during mid-session at the Bombay Stock Exchange on the back of frantic buying spree by foreign institutional investors and well supported by local operators as well as retail investors.

10,000, February 6, 2006

The Sensex on February 6, 2006 touched 10,003 points during mid-session. The Sensex finally closed above the 10K-mark on February 7, 2006.

11,000, March 21, 2006

The Sensex on March 21, 2006 crossed the magical figure of 11,000 and touched a life-time peak of 11,001 points during mid-session at the Bombay Stock Exchange for the first time. However, it was on March 27, 2006 that the Sensex first closed at over 11,000 points.

12,000, April 20, 2006

The Sensex on April 20, 2006 crossed the 12,000-mark and closed at a peak of 12,040 points for the first time.

13,000, October 30, 2006

The Sensex on October 30, 2006 crossed the magical figure of 13,000 and closed at 13,024.26 points, up 117.45 points or 0.9%. It took 135 days for the Sensex to move from 12,000 to 13,000 and 123 days to move from 12,500 to 13,000.

14,000, December 5, 2006

The Sensex on December 5, 2006 crossed the 14,000-mark to touch 14,028 points. It took 36 days for the Sensex to move from 13,000 to the 14,000 mark.

15,000, July 6, 2007

The Sensex on July 6, 2007 crossed the magical figure of 15,000 to touch 15,005 points in afternoon trade. It took seven months for the Sensex to move from 14,000 to 15,000 points.

16,000, September 19, 2007

The Sensex scaled yet another milestone during early morning trade on September 19, 2007. Within minutes after trading began, the Sensex crossed 16,000, rising by 450 points from the previous close. The 30-share Bombay Stock Exchange's sensitive index took 53 days to reach 16,000 from 15,000. Nifty also touched a new high at 4659, up 113 points.

The Sensex finally ended with its biggest-ever single day gain of 654 points at 16,323. The NSE Nifty gained 186 points to close at 4,732.

17,000, September 26, 2007

The Sensex scaled yet another height during early morning trade on September 26, 2007. Within minutes after trading began, the Sensex crossed the 17,000-mark . Some profit taking towards the end, saw the index slip into red to 16,887 - down 187 points from the day's high. The Sensex ended with a gain of 22 points at 16,921.

18,000, October 09, 2007

The BSE Sensex crossed the 18,000-mark on October 09, 2007. It took just 8 days to cross 18,000 points from the 17,000 mark. The index zoomed to a new all-time intra-day high of 18,327. It finally gained 789 points to close at an all-time high of 18,280. The market set several new records including the biggest single day gain of 789 points at close, as well as the largest intra-day gains of 993 points in absolute term backed by frenzied buying after the news of the UPA and Left meeting on October 22 put an end to the worries of an impending election.

19,000, October 15, 2007

The Sensex crossed the 19,000-mark backed by revival of funds-based buying in blue chip stocks in metal, capital goods and refinery sectors. The index gained the last 1,000 points in just four trading days. The index touched a fresh all-time intra-day high of 19,096, and finally ended with a smart gain of 640 points at 19,059.The Nifty gained 242 points to close at 5,670.

20,000, December 11, 2007

The Sensex actually crossed the 20,000-mark on October 29, 2007 during intra-day trading but closed at 19,977.67 points. However, it was on December 11, 2007 that it finally closed at a figure above 20,000 points on the back of aggressive buying by funds. The 30-share index spurted 360.21 points to fly-past the crucial level and closed at 20,290.89. The NSE Nifty closed at a record high of 6,097.25 points, up 136.65.

21,000, January 8, 2008

The Sensex crossed the 21,000-mark in intra-day trade on January 8, 2008, bringing cheer to the markets at the very beginning of the New Year.

Scaling a new peak, the Sensex spurted 264.88 points to touch 21,077.53 points in the first five minutes of trade.

Similarly, the wide-base National Stock Exchange's Nifty also hit 6327.65 points, up 48.55 points, as most of the index related shares traded higher.

Japan Stocks Fall to 1 1/2 Year Low

Japanese stock prices plunged Friday to their lowest finish since July 2006, losing ground after jittery trading on Wall Street amid concerns about the U.S. economy and rising oil prices.

Japan's benchmark Nikkei stock index lost 616.37 points, or 4.03 percent, to finish Friday's half-day session at 14,691.41 points on the Tokyo Stock Exchange. The close was the index's lowest since it posted 14,500.26 points on July 19, 2006.

The TSE had been closed since last Friday for the New Year's holidays. The exchange resumes full-day trading next Monday.

Wall Street closed narrowly mixed Thursday after share prices dropped sharply the previous day on weaker-than-expected data for the U.S. manufacturing sector. Record oil prices that have topped $100 also pressured stocks on worries that higher fuel costs could slow investment, spending and growth.

The Dow Jones industrial average rose 12.76, or 0.10 percent, to 13,056.72 Thursday, and crude oil futures set a fresh trading record of $100.09 a barrel on the New York Mercantile Exchange.

Worries about the economy in the United States — a key export market for Japanese manufacturers — as well as the dollar's weakness against the yen sent export-oriented shares down.

Increasing oil and raw material prices also took their toll on exporters while giving commodity stocks a boost.

"High flying blue-chip exporters are going to have a tough time coping with rising commodity prices, a stronger yen and a slowing U.S. economy," said Masanaga Kono, strategist at Societe Generale Asset Management.

Shares of Nissan Motor Co. plunged 9.2 percent, Toyota Motor Corp. finished 4.3 percent lower, Sony Corp. fell 6.6 percent, and Canon Inc. dropped 5 percent.

Tokyo's broader Topix index, which includes all shares on the exchange's first section, lost 63.77 points, or 4.32 percent, to 1,411.91.

Other Asian exchanges — most of which opened 2008 on Wednesday — have not followed Japan's lead. In Hong Kong, the Hang Seng Index rose 2.3 percent in morning trade, while benchmark indices in China, Singapore and South Korea are up by more than 0.5 percent in afternoon trade.

In currencies, the U.S. dollar was trading at 108.98 yen Friday morning, down from 109.33 yen late Thursday in New York. The euro rose to $1.4750 from $1.4744.

India's best Ulips

We have toyed with the idea for a long time. Should we rank the unit-linked insurance plans (Ulips) in the market? The idea is exciting simply because it has never been done in India before.

The idea is good because it allows an investor a handle with which to hold the product. Also, the idea is very daunting because comparing insurance policies is like trying to unravel a noodle soup. The more you stir, the more complicated it looks.

After discussing with the regulator, some industry leaders and those close to the insurance sector, Outlook Money decided to bite the bullet and get on with the ranking.

This is where we realised what an overwhelming task we had taken on. Just comparing the return figure, as given by net asset value data, would be incorrect since a financial product is a function of cost and return. The minute we bring in costs, comparisons became almost impossible to carry out.

India's IT outsourcers face increasing costs

India's information technology outsourcing sector is heading for crunch time next year, as a rising currency and increasing wage and real estate costs force the industry to rethink how it does business.

Multinationals continue to view the country as one of the most viable outsourcing destinations, but competitive pressures are making other countries look attractive.

Vineet Nayyar, chief executive of Tech Mahindra [Get Quote], described as "horrible" the impact on IT margins of a 12 per cent appreciation of the rupee against the dollar this year.

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"All your emerging sectors are going to have major problems because of the currency adjustment," Mr Nayyar said.

India's IT outsourcing companies have been among the worst performing on the stock market this year. The sector has underperformed the MSCI India index by 47 per cent.

Much of the negative sentiment concerns the stronger rupee, which hit Rs39.16 against the dollar last month, its strongest level since March 1998.

Indian IT outsourcing companies earn most of their revenue in foreign currencies, particularly dollars, but they incur most of their costs in rupees.

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The leading companies, such as Infosys Technologies [Get Quote] and Tata Consultancy Services [Get Quote], have so far largely maintained their margins. Measures they have used to keep margins up include moving more work onshore and hiring cheaper graduates from disciplines other than engineering. They have also employed hedging.

Analysts believe, however, that a longer-term shift in strategy is necessary if India's IT companies are to prevent more work going overseas to emerging centres such as Vietnam, China and Brazil.

Gartner, the research group, in a study of outsourcing destinations, found that India accounted for 28 per cent of the estimated workforce available globally for offshore work. That makes the country the largest such labour pool in the world.

But the study also found that costs were rising fast. Salaries are climbing an average 14.5 per cent a year, almost double the rate in China and the Philippines, and the rate of attrition is 20 per cent to 25 per cent.

"The attrition [rate] leads to the challenge of consistency and therefore of quality for buyers of these services," said Ian Marriott, research vice-president at Gartner. "And so the whole appeal of India is starting to just lose a little bit of the gloss.

"It's still very appealing for a whole variety of reasons but it's starting to get people thinking: should we investigate other locations as well, probably not as an alternative necessarily but in addition to India."

Indian companies needed to move away from thinking that more demand meant more hiring and extracting greater productivity out of existing workforces, Mr Marriott said.

While the larger companies were also trying to become more global and were setting up centres in other offshoring locations, this was not an option for the small and medium-sized outsourcers, he said.

These smaller companies had to become more specialised. "They've got to be very niche by design and very focused on specific markets, specific services, specific kinds of customers," Mr Marriott said.

How to fill up your IPO application

By the second week of November 2007, as many as 81 initial public offerings had listed on the National Stock Exchange this year -- significantly higher than the 73 and 50 issues in 200 and 2005, respectively.

If you have never been to the great Indian IPO party but want to join in, you need to know that the way you fill up your application form could determine your chances of getting an allotment.

Here's a beginners guide to scoring high by filling your IPO application right.

1. How to apply

You need to have a trading and a demat account to bid in an IPO. You can apply offline or online.

Offline

(i) Visit the distributor of the IPO and collect the 'bid-cum-application form.'

(ii) Fill the form carefully. The information asked for will include the name of the applicant, his address, his Permanent Account Number, the category he is applying under, the name of the depository participants (DP), DP ID, beneficiary account number, the number of equity shares the applicant is bidding for, the price per equity share he is willing to pay, and the cheque/draft number. The applicant should fill up the whole form himself and ensure that the name he enters in it is identical to what appears in his demat account.

(iii) Investors have been divided into different categories and the account in favour of which the cheque/demand draft (DD) is drawn depends on the category. So, ascertain your category and mention the correct account. For instance, in the issue of Mundra Port and Special Economic Zone, cheques/DDs of resident qualified institutional buyers had to be drawn in favour of Escrow Account-MPSEZ-QIB-R and those of resident retail and non-institutional bidders in favour of Escrow Account-MPSEZ-R. Write the bid-cum-application form number the reverse of the cheque/DD.

(iv) Companies issue IPOs in different lots, each of them containing a particular number of shares. Your bid will have to be in denominations of lot sizes.

(v) Photocopy the form after filling it.

(vi) Submit the filled application form to sub-syndicate/syndicate members in case of book building and to the bankers directly in case of fixed price issue. Now, you will have to wait to see if you get shares. Take the acknowledgement slip and keep it and the photocopy of the application form with care till you get the shares of your money back.

2. Revision of bid

To revise your bid, submit the bid revision form, which comes along with the bid-cum-application form. The new form will have all the information that you gave in the earlier one and also your revised bid.

3. If things don't happen on time

In case of delay in share allotment or refund if shares are not allotted, write to the registrar of the issue or its lead managers or the compliance officer of the company. If you don't get a reply or it is unsatisfactory, you can complain to the investor grievance cell of the Securities and Exchange Board of India, giving a copy of the application form.

4. Allotment process

There are three categories of investors: qualified institutional investors (like banks, mutual funds and insurance companies), non-institutional investors (NIIs -- individuals investing more than Rs 1 lakh) and retail investors (individuals investing less than Rs 1 lakh). If the NII and retail categories get oversubscribed, a lottery is held among applicants and then shares are allotted on a proportional basis.

So, if the retail category is oversubscribed by 10 times after the lottery, an investor who has applied for 50 shares will get five shares.

5. How to optimise your chance of getting share allotment

(i) Fill the application form correctly so that it is not declared invalid.

(ii) In a book-building issue, the bid has to be made between the floor price and the ceiling price. Let's say the band is Rs 800-850 and there are 100,000 shares in the retail segment. Now, if applications for 10 lakh (1 million) shares come in at Rs 850, all the retail segment shares will be allotted on a proportional basis among applicants at this price after a lottery.

Usually, oversubscription is so overwhelming at the ceiling price itself that allotment is restricted to applicants at this price only. Therefore, you can bid at the ceiling price to increase chances of allotment.

The alternative scenario is when all shares do not get lapped up at the top of the band. Say, applications for 10,000 shares come in at Rs 850. All of them will get allotments as the number of shares applied for at the price is less than the number of shares available.

Then, the next highest bid will be taken. Say, 15,000 shares were applied for at Rs 849. Again, all these applicants will get allotments. This process will continue. Now, if 95,000 shares get allotted by the time Rs 831 is reached, and 10,000 shares are applied for at Rs 830, then Rs 830 will be the cut-off price.

Retail investors have the option of 'applying at the cut-off price.' If 15,000 shares are applied for at the cut-off price, the retail shares that remain (5,000) will be allotted to the cut-off price applicants and those who had bid at the price which turned out to be the cut-off price through the usual way -- lottery and then proportional allotment.

So, if you want to bid at a price lower than the ceiling price, you can increase your chances of getting allotment by specifying in your application that you are bidding at the cut-off price.

(iii) Chances of success if bids go to lottery improve if there are multiple applications.

(iv) The chances of shares coming to your family improve if your relatives apply too.

(v) The NII quota, in which high net-worth individuals (HNIs) bid, is 15 per cent; the retail quota is 35 per cent. So, the possibility of your family getting shares are higher with multiple retail applications by your relatives than with a single HNI application.

Says Vinay Mehta, managing director, Almondz Global Securities: "New issues are more inclined towards retail investors than non-institutional investors as the retail category has a higher allotment and lower oversubscription level."

Many post issues had this oversubscription pattern. Chances of getting allotment are higher when the oversubscription is lower.

Manish Bardia: Man behind Modi's mask

From making small advertisements for local cable networks to playing a key backstage role in Gujarat Chief Minister Narendra Modi's electhttp://www.rediff.com/news/gujaratelection07.htmlion campaign, the 39-year-old Manish Bardia's 16-year-old Moving Pixels Company has come a long way.

The fine arts professional's claim to fame is that he and his 30-member team designed and created the famous Modi masks and contributed to the Brand Modi campaign over the past six years. Bardia, however, prefers to downplay his contribution, attributing a large part of its success to Modi himself.

"Like professionals, we have executed the brief of our client. The entire campaign was conceived by Modiji and there were so many people who contributed to the success of the campaign," says Bardia. "Moreover with Modiji, one just has to execute his ideas and one is through," he adds.

Today, MPC has corporate clients such as Reliance [Get Quote] (Vimal), the Adani Group, Rasna, Motif India, Torrent [Get Quote], Ratnamani Steel, Intas Biotechnology and Hipolin, apart from several central and state government agencies like GSPC as well as various NGOs.

But the turning point in the company's fortunes was, undoubtedly, its bagging of the Modi government's campaign. "I have worked with many corporates. But Modiji's understanding of the media is unmatched and can put any top corporate honcho to shame," says Bardia.

He has carried out various media campaigns for the Gujarat government such as the Vibrant Gujarat 2007 summit, Jyotigram, and GSPC's gas find, to name just a few. MPC has also done four projects for Vasundhare Raje's government in Rajasthan.

It was in 2002, when the post-Godhra riots had resulted in a slowing in business, that Bardia got the chance to work with Modi. He shifted his office from Khanpur, a part of old, communally sensitive Ahmedabad to the posh Vastrapur area some time back. "The earthquake project we got from the state government worked out well," he says with pride.

After completing his commercial art course in 1990 from the C N Institute of Fine Arts in Ahmedabad, Bardia, who hails from a business family of Rajasthan, moved to Mumbai to work for ad agencies. A year later, he returned to Ahmedabad and started MPC in a rented accommodation. Another year down the line, Bardia got five more people to work for him.

"After working for a few years, we got noticed by ISRO and got a project for the PSLV launch. We did the animation for the project," he recalls. After this, there was no looking back.

The Ahmedabad-based company is now a part of the publicity department of ISRO's Mission-to-Moon project. That's where Bardia hopes his work will take his company some day.

GLOBAL MARKETS - Stocks shaken by Bhutto killing; bonds up

SINGAPORE (Reuters) - Asian stocks fell on Friday as news of the assassination of Pakistani opposition leader Benazir Bhutto and fears over regional political turmoil triggered a flight to less risky assets such as bonds and gold.

Investors fear that Bhutto's killing on Thursday at a political rally in Rawalpindi could spark instability in the region and civil unrest within Pakistan.

"It would have quite a big impact on flows into the region since political risk is one the big factors when you invest money," said Martin Arnold, equities economist with Commsec Securities in Australia.

"It is also going to impact commodities, and in particular oil, on expectations that further violence in the region could hamper oil supplies and production," he added.

U.S. light crude was up 19 cents at $96.81 a barrel by 0032 GMT, further boosted by a fall in U.S. crude supplies, while gold changed hands at around $826 an ounce after hitting a one-month high of $830.05 overnight.

Markets in the U.S. were unsettled by Thursday's news, with the Dow Jones industrial average shedding 1.4 percent and the benchmark 10-year U.S. Treasury note jumping 23/32 in price, pushing its yield down to 4.19 percent.

Japanese 10-year bond yields fell to 1.51 percent from 1.55 percent.

Indian-based American Depositary Receipts were dragged lower as Bhutto's death raised concerns about stability in South Asia.

Among the biggest losers were Mumbai-based commercial vehicle maker Tata Motors Ltd and ICICI Bank Ltd, which both shed around 6 percent.

MSCI's broadest index of shares excluding Japan was down 0.2 percent by 0038 GMT.

Benchmark indexes in Australia, South Korea and New Zealand fell by more than 0.5 percent.

Japan's Nikkei index fell 1.5 percent and was on course to end the year as the world's worst performing big stock market.

But global emerging equities dipped just 0.1 percent.

"The assassination in Pakistan pushed up oil prices and there is a worry that mounting geopolitical risks would further boost oil prices," said Kim Hak-kyun, an analyst at Korea Investment & Securities.

"But as Pakistan is not a country with developed financial markets and the country's connection with global credit markets is minimal, the case would have a limited and short-term impact on markets."

Pakistan 5-year credit default swaps, used to insure against restructuring or default, widened by at least 30 basis points on Thursday after Bhutto was killed in a gun and bomb attack.

CDS spreads widened by 30 basis points to 400-430 basis points, said one New York-based trader late on Thursday.

The Pakistan rupee was last quoted at 61.30 against the dollar, just off a 3-year low.

The dollar traded at 113.964 yen, having reached a seven-week high at 114.65 earlier on Thursday.

On top of concern over political unrest in Pakistan, a weaker-than-expected U.S. durable goods report fuelled yet more concern about the U.S. economy.

Benazir Bhutto assassinated

Pakistani opposition leader Benazir Bhutto was assassinated on Thursday in a gun and bomb attack as she left an election rally in the city of Rawalpindi.

State media and her party confirmed her death.

"She has been martyred," said party official Rehman Malik.

Bhutto, 54, died in hospital in Rawalpindi. Ary-One Television said she had been shot in the head.

Police said a suicide bomber fired shots at Bhutto as she was leaving the rally venue in a park before blowing himself up.

"The man first fired at Bhutto's vehicle. She ducked and then he blew himself up," said police officer Mohammad Shahid.

Police said 16 people had been killed in the blast, which occurred during campaigning for a January 8 national election. It is unclear if the poll will now go ahead.

"It is the act of those who want to disintegrate Pakistan because she was a symbol of unity. They have finished the Bhutto family. They are enemies of Pakistan," senior Bhutto party official Farzana Raja told Reuters.

Bhutto's father, Zulfikar Ali Bhutto, was Pakistan's first popularly elected prime minister. He was executed in 1979 after being deposed in a military coup.

A Reuters witness at the scene of the attack said he had heard two shots moments before the blast. Another Reuters witness saw bodies and a mutilated human head strewn on a road outside the park where she held her rally.

NO WORD FROM MUSHARRAF

A spokesman for President Pervez Musharraf said he had to confirm the news before commenting.

U.S. President George W. Bush was informed of Bhutto's death at his Texas ranch, where he was spending the year-end holiday.

Bush had no immediate reaction. A U.S. State Department official said: "The attack shows that there are still those in Pakistan trying to undermine reconciliation and democratic development in Pakistan."

In France, Foreign Minister Bernard Kouchner issued a statement firmly condemning what he called "this odious act".

"He pays homage to the memory of Ms Bhutto, an eminent figure in Pakistani political life," the ministry statement said.

"He reaffirms our country's commitment to Pakistan's stability and its democracy, which must be at the centre of attention of the entire international community."

A suicide bomber killed nearly 150 people in an attack on Bhutto on Oct. 19 as she paraded through the southern city of Karachi on her return from eight years in self-imposed exile.

Islamist militants were blamed for that attack but Bhutto had said she was prepared to face the danger to help the country.

In her speech on Thursday, Bhutto spoke of the risks she faced.

"I put my life in danger and came here because I feel this country is in danger. People are worried. We will bring the country out of this crisis," Bhutto told the rally.

TEARS, SHOTS

People cried and hugged each other outside the hospital where she died. Some shouted anti-Musharraf slogans.

Another former prime minister and opposition leader, Nawaz Sharif, spoke to the crowd.

"My heart is bleeding and I'm as grieved as you are," Sharif said.

Residents of Karachi, Bhutto's home town, said they had heard gun shots after news of her death spread, apparently from her enraged supporters.

On international financial markets, gold and government bonds rose while U.S. stock futures fell on Thursday after news of Bhutto's assassination.

Analysts say the shock of the Bhutto news triggered a classic capital flight to assets which are considered as safe havens in times of geopolitical stress.

Bhutto became the first female prime minister in the Muslim world when she was elected in 1988 at the age of 35. She was deposed in 1990, re-elected in 1993, and ousted again in 1996 amid charges of corruption and mismanagement.

She said the charges were politically motivated but in 1999 chose to stay in exile rather than face them.

Bhutto's family is no stranger to violence.

Both of her brothers died in mysterious circumstances and she had said al Qaeda assassins tried to kill her several times in the 1990s.

Intelligence reports have said al Qaeda, the Taliban and Pakistani jihadi groups have sent suicide bombers after her.