8/12/2019 ETM_2012_1_16_1

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Should the USOF be used tosubsidise rural mobile bills?

http://economictimes.indiatimes.com

Will Euro zone countries be able to delivera credible solution to the debt crisis?

TODAY’S QUESTION

34%YES

61%NO

5%CAN’T SAY

THE ECONOMICTIMESWWW.ECONOMICTIMES.COM

EXCLUSIVE“Good industry has no colour, caste, community, or religion.We want good industry in Bengal. Period. I have nothingagainst anybody. I extend a warm welcome to all my industryfriends from all communities…”

MAMATA BANERJEE , Chief Minister, West Bengal

“I am aware that there are a few people who are spreadingrumours. I take this opportunity to clarify through the pages ofThe Economic Times that such rumours are baseless. We wantindustry to come & flourish, so welcome all”

Rough Ride Ahead

POLL PARTICIPANTS: Angel Broking, Anand 

Rathi Sec, Birla Sun Life MF, Canara Robeco MF,

Daiwa MF, Emkay Global, ICICI Securities, ING MF,

Karvy StockBroking, Max NewYork Life, Motilal

Oswal Sec, Nirmal Bang Sec, Principal MF, Peerless

MF, Religare MF, Religare Sec

Auto

Banks

Capital GoodsCement

Consumer

Infra

IT

Metals

Media

Oil & Gas

Pharma

Realty

Telecom

31 MAR 2012

BULLISH

Break-up of Sensex Targets ofPoll Participants

Participants’ Sector Choices in 2012

31 DEC 2012

BEARISH

8

4 1

10

2

4 3

NIL

NIL

NIL

1

1

1

1

1

5

5

4

3

3

3

NIL

NIL

8

6

21

1

2

2

5

3

7

7

NIL

NIL

20000

17k-19k

15k-17k

13k-15k

Did not comment

JOHN SAMUEL RAJA D &

RISHI SHAH

NEW DELHI

When the rupee tumbled 20%against the dollar in fourmonths, between August 9 andDecember 15, fingers werepointed at foreign institutionalinvestors (FIIs), who were bigsellers of Indian stocks. But datafor the period shows that FIIsstill brought in more moneythan they took out, though this

net figure was about a tenth of the amount in the correspond-ing period a year ago.

A reading of the other compo-nents of ‘balance of payments’ — which records India’s trans-actions with the rest of the world —shows dollar inflows were rea-sonable during this period.Their velocity may have slowedbecause of a grim economic out-look, which would have put pres-sure on the rupee, but notenough to make it crumble.

So, then, what explains the

slump? On speaking to forextraders, experts, exporters andbankers, a possible explanationemerges: on top of the generalweakness, the equal and oppo-site actions of importers and ex-porters triggered a storm, andsent the rupee into a freefall.

“Initially, greed and fear drovedown the rupee,” says JahangirAziz, the Asia economist of JPMorgan. Greed among expor-ters, who did not convert theirdollar earnings when they sawthe rupee falling, hoping the In-dian currency would weakenfurther and enable them to real-

ise more. And fear among impor-ters, who had left their exposureun-hedged and who rushed tobuy dollars when the rupeestarted falling.

Importers sought dollars, butexporters held them back. Theresultant shortage dragged therupee down in the forward mar-ket. And the spot market, whichtakes its cues from the forwardmarket, followed suit. It was his-tory repeating itself.

Lesson for Importers3

Excessive Greedand Fear Send ReDown the Tube

JOJI THOMAS PHILIPNEW DELHI

Norway’s Telenor has valued its Indian unit atover .̀ 600 crore, escalating the spat with its jointventure partner — real estate group Unitech — that has termed the valuation as ‘bizarre’. Unit-ech, owned by the Chandra family, insists themobile phone company is worth at least 20 timesmore, between .̀ 11,000 crore and .̀ 12,000 crore.

Unitech Wireless launched mobile servicesunder the ‘Uninor’ brand in late 2009 and hassince built a base of over 35 million customers,making it a rare success story among half-a-doz-en companies given mobile permits by formertelecom minister A Raja in early 2008.

Telenor’s estimation of the value of its Indianunit is less than 7% of what it was in 2009 whenit picked up 67.25% stake in the telco for .̀ 6,100crore, a deal that valued a company th at had notlaunched operations or acquired a single cus-tomer at about .̀ 9,000 crore. The deal attractedthe attention of India’s national auditor, whichused it to back its argument that licences should

have been auctioned and not allocated by Raja atprices set in 2001.

The figure also crops up in the 2G scam case,where the CBI has accused Unitech’s promoter,Sanjay Chandra, of alleged wrongful gains aris-ing out of the 2009 transaction.

Relations between the partners have deterio-rated in the recent past, raisin g questions on Un-inor’s future in the 14-player Indian telecom

market. At the heart of the dis-pute is a proposal, put forwardby Telenor, for a .̀ 8,200-crorerights issue by Uninor. Telenorsays the funds are necessary toexpand the business, but is op-posed by Unitech.

About two months ago, Tele-nor had valued Unitech Wire-less even lower at .̀ 400 crore (.̀ 28

per share). The Norwegian major subsequentlyappointed BNP Paribas, which valued the mo-bile phone company at .̀ 870 crore (.̀ 60 per share).

Unitech Finding Valuation Hard to Swallow3

Unitech calls .̀ 600-crorevaluation ‘bizarre’ and insists telco should beworth 20 times more

Telenor, Unitech Spar over JV Valuation

In 2009,Telenor hadbought67.25% inUnitech

Wireless for.̀ 6,100 cr

OUR BUREAUMUMBAI

The sudden gush of foreign investormoney into domestic stocks may notlast long, an ET poll of top fund manag-

ers reveals. Jittery investors worried overshaky corporate earnings, uncertainty overgovernment economic policies, and head-winds blowing from the revival of the Eurozone debt crisis could push the Sensex downas much as 20% in the next few months.

The Sensex, the poll shows, could fal l to 13,000in a few months, with eight fund managerspredicting it to range between 13,000 and 15,000by March 31. Most, however, expect it to rise to

20,000 by the year-end as falling interest ratesbuoy sentiment and spur increased consump-tion and investment by corporates. “We’re stillvery cautious with our investments in equi-ties market. Markets will only stabilise oncethere is clarity on macroeconomic issues likegrowth, inflation, interest rates and deficit,”said Prashant Sharma, head of investments atMax New York Life Insurance.

The Sensex was battered for much of 2011 asinflation forced the central bank to increaserates 13 times in a row, crimping corporateprofitability and investment. The governmentalso failed to enact key policies to revive senti-ment and signal its seriousness in increasingthe tempo of economic growth. In November,it was forced into a humiliating reversal of itskey initiative to allow foreign retail giantssuch as Walmart, Carrefour to set up shop inIndia, due to stiff political pressure.

The markets were expected to be dull in 2012,but a sudden pick-up in foreign fund flows haspushed the Sensex above the psychologicallycrucial 16,000-mark, surprising investors.

“It's too early to form a definitive opinion; forall you know, it could just be short covering.We're maintaining a cautious view in the shortterm, with state elections round the corner fol-lowed by the Union Budget,” said Mahesh Pa-til, chief investment officer of Birla Sun LifeAsset Management. Foreign investors havebought stocks worth $472 million (.̀ 2,500 crore)since the beginning of the year compared withnet sales of $385 million for the whole of 2011.

Some fund managers are also attaching a lotof importance to the elections in Uttar Pra-desh. A strong performance by the Congressis expected to bolster its chances of pushingthrough unpopular but important policies.

“If the Congress party puts up a decent show

partnering with a strong ally like SamajwadiParty, it will be extremely positive for the mar-kets,” said Ramanathan K, chief investmentofficer of ING Investment Management.

But Edelweiss analysts said in a note to cli-ents:“Repeated election gains for the Con-gress, despite allegations of misgovernance,may not necessarily be positive for the econo-my as the party might feel embolden ed to pur-sue its social sector agenda (as it is payingrich political dividends), thereby hinderingthe fiscal consolidation process.”

The markets’ worst nightmare, however,may not be either UP or the government’sworsening fiscal math but a sudden cata-strophic break-up of the European Union.

FII Party on St won’t LastLong as Worries RemainET Fund Managers’ Poll

The 20% fall in the rupee…

(`/$)

51.7

AUG9 ’11 JAN11 ’12

54.2Dec 15

…in spite of reasonable dollar inflows…

Trade deficit (i) 43.9 31.1*

Is plugged by

Services exports** 15.5

Net overseas remittances 16.2

Net FII infows# 0.3 4.4

Net FDI inflow 4.4 4.1*

Others 7.8 NA

Total (ii) 44.2 NA

Balance of payments (i-ii) 0.3 NA

NAbut expectedto increase

Q2 Q3

All figures in $ bn  SOURCE: Sebi, RBI, Commerce Ministry* For Oct & Nov ** Mainly IT  # Equity & debt

…suggests the trigger lay elsewhere

Stuck in the Drop Zone

FEAR AMONG IMPORTERS

Had not bought forwardcover as they felt ` would notfall. When it started falling,they rushed to buy dollars…

GREEDAMONG EXPORTERS

…but no dollars were availableas exporters had already cov-ered $ earnings. What wasn’tcovered, they held back

45.2

CAPITAL CONCERN: EXPORTERS VS. IMPORTERS

ANALYSIS

 W etake our bodies for granted – our arms, legs, torso, neckand head are there to take us

through the motions (and emotions)we call life. It stands to reason then,that when some part is impairedthrough injury or misuse, our livesare also affected, often in subtle ways.Doctors and rehab regimens deal withimmediate challenges such as acutepain or post-surgical recovery, but weso often resign ourselves to a reduc-tion of the ambit of our lives, accept-ing infirmity or lack of mobility asinevitable.

Gregory and Vicky Johnson wouldsay — don’t!!

Functional Manual TherapyTM

(FMT), pioneered by Gregory andVicky Johnson, is an effective evalua-tion and treatment system that pro-motes optimum human performanceby enhancing total body mobility. Theunique aspect of FMT is the integra-tion of the mobility treatment withneuromuscular facilitation (ability toinitiate the right muscles at the righttime with proper strength and endu-rance) and motor control (the abilityto effectively produce coordinatedpostural and movement strategies).

Whether people are suffering fromchronic or acute pain, or recoveringpost surgery, or simply aspire to beable to do what they want to do (fromrunning to the store to running themarathon!) FMT helps you get back to“full living” as Gregory calls it. It isactually a three-dimensional ap-proach to the body: physical, spiritualand emotional.

“What’s important is how the bodyfunctions as a whole,” explains Vicky.

So, armed with in-depth knowledge of body mechanics, the FunctionalManual Therapists first gather objec-tive and subjective data on their cli-ents via specific tests, besides observa-tion and interaction. Then, as she putsit, “Our hands guide us.” Those skilledhands identify scar tissue, systemicdysfunctions or lack of mobility andgo to work correcting the restrictionsusing Functional MobilizationTM.

“There’s a unique moment that hap-pens when you are working with some-one, when it all comes together — when our clients realise that the hu-man body is very complex,” Vickyreveals. “It’s important for the FMtherapist to provide an environmentthat’s safe for someone to go throughthat process, and to discover how toallow themselves to heal as a wholehuman being.”

“There is a state in which all jointsshould be functioning efficiently…toaccomplish the task they are after,”says Gregory. “Our observational

skills identify the parts of the bodythat are no longer functioning effi-ciently, and through our hands we re-instate them to efficient movement.”But the key to total restoration is theJohnsons’ crucial CoreFirstTM strate-gy — getting the right muscles to acti-vate or ‘fire’ at the right time, in theright way, so that every action is com-pleted successfully without stressingthe b ody.

“Everyone talks about using thecore, but a lot of that is done volitional-ly,” says Vicky. “We teach our patientspostural and movement strategiesthat allow their core to fire all daylong. If everything you do during the

day allows your core to fire, then youdon’t need to lie down on the floor anddo 45 minutes of core exercises, be-cause you’ve exercised for 18 hourswhen you go to bed at night. So our jobis to make sure that their life is, in fact,in itself an exercise!”

If you watch young infants gothrough normal growth and develop-ment, what you see is that they sit, rolland crawl — all very e fficiently. But we,as adults, sometimes have lost accessto that strategy. The mobility of jointsand soft tissues is very important to al-low for efficient movement. The ulti-mate goal of FMT is to provide an indi-vidual with the mechanical ability tobecome self-sufficient and more profi-cient in all areas of human perform-ance. “We see a lot of high-end athletes.

We’ve had marathon runners take asmuch as 40 minutes off their mara-thon time by being treated with FMT.We’ve had swimmers take time off their swimming when they compete.We’ve had ski-racers take time off their racing when they compete be-cause we’ve treated them with this ap-proach of optimizing the function of their body.”

Given that there are less than 200 Cer-tified FM Therapists worldwide, theJohnsons’ decision to come to India astheir first venture outside the US — atVARDÃN in New Delhi — is thereforeopportune indeed. VARDÃN is an ini-tiative of The Times Group in collabo-

ration with The Institute of PhysicalArt (IPA), USA. The IPA’s comprehen-sive and innovative FMT curriculumprepares the physical therapist tocompetently and intuitively integrateevidence and clinical experience witheach patient. As Vicky says, “We havethe potential to change an entire coun-try’s perception of physical ther-apists, or better yet, change an entireprofession’s perception of itself.”

The integrated approach at all levelsof care at VARDÃN, led by veteransCharles King and Jevene Summers,will also see the utilisation of healingand supporting techniques likePilates and Yoga. The facilities atVARDÃN will include a training areawith specialised equipment, whereclients can exercise to customisedprograms under the supervision of anFM Therapist.

The eventual idea, as Vicky puts it, isfor the people to “take ownership of their body and hopefully, prevent is-sues from recurring.”

Move Towards ‘CoreFirst’ CompetenceA CoreFirstTM strategy iswhen the brain automatically engagesyour core prior to any movement or

activity. This gives the big “mover” muscles of thebody more strength and coordination

FMT pioneers Gregory & Vicky Johnson

Make your appointment today at VARDÃN by sending VFMT to 58888 or log on to www.vardan.in and experience how a FunctionalManual Therapist can change your life!!

“Our observational skills identify the parts of thebody that are no longer functioning efficiently,

and through our hands we reinstate them to

efficient movement.” — GREGORY JOHNSON

“We teach our patients postural and movement strategies that allow theircore to fire all day long. Then they don’t need to do 45 minutes of core exer-

cises, because they’ve exercised for 18 hours anyway! Our job is to make

sure that their life is, in fact, in itself an exercise!” — VICKY JOHNSON

REC to Tap Swiss Investors to Raise $200 mREC will tap Swiss investors by January-end to raise $200 mil-lion, report Anita Bhoir& Rachita Prasad from Mumbai.12

Cash-strapped UB Plans to List W&MUB will consolidate its foreign liquor assets under Whyte & Mackay

and list the Scottish arm overseas to battle the Kingfisher crisis.5

 Viewpoint

The Breadth of IndianInternationalisationIndian companies need to look rela-tively far for their foreign markets asthe country’s breadth of global con-nections alone does not give it an edge

to foster global integration, saysPankaj Ghemawat,professor atHarvard Business School.

Bibek Debroy feels the Centre erred inlaunching Rajiv Awas Yojana withoutassessing efficacy of similar projects.

With Today’s Edition

Investor’s Guide

IL&FS Investment Managers Buys

9.4% in Indiabulls’ Worli ProjectIL&FS InvestmentManagers has paid .̀200 crore

for a 9.4% stake in an Indiabulls company that is

developing the 8.3-acre BharatMills at Worli in

south-central Mumbai.

Corporate8

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll

Govt Mulls Hike in Urea Prices Ahead of State Elections

The government plans to raise prices of urea, the

mostwidely consumed fertiliser in the country,

by a steep 40%. The move comes just ahead of

elections in five states.

Economy15

9

RIGHTS ISSUE

Telenor supports `8,200-crorerights issue by Uninor on thegrounds that the funds are neces-sary for business expansion.Unitech opposes it

VALUATION

Telenor has independently valuedUnitech Wireless at about `600 cr.Unitech says it must be between`11,000 cr and `12,000 cr

DISCLOSURES

Unitech alleges Telenor did notdisclose nature of its Pakistanops to FIPB. Telenor says itsinvestments in Uninor have beenthoroughly tested against fulldisclosures by the authorities

The Dispute Points

MUMBAI | 26 PAGES | .̀ 2.50 OR .̀ 5.00 ALONG WITH THE TIMES OF INDIA MONDAY, 16 JANUARY 2012BENNETT, COLEMAN & CO. LTD.

Sarkozy Vows ReformsFrench President Nicolas Sarkozy hasvowed reforms post S&P rate cut.20

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