THE ECONOMIC TIMES

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MUMBAI | 26 PAGES | . ` 2.50 OR . ` 5.00 ALONG WITH THE TIMES OF INDIA

MONDAY, 16 JANUARY 2012

EXCLUSIVE

Good industry has no colour, caste, community, or religion. We want good industry in Bengal. Period. I have nothing against anybody. I extend a warm welcome to all my industry friends from all communities
M A M ATA BA N E R J E E , Chief Minister, West Bengal
9

I am aware that there are a few people who are spreading rumours. I take this opportunity to clarify through the pages of The Economic Times that such rumours are baseless. We want industry to come & flourish, so welcome all

Should the USOF be used to subsidise rural mobile bills?

34%
YES

61%
NO

CANT SAY

5%

TODAYS QUESTION

Will Euro zone countries be able to deliver a credible solution to the debt crisis?
http://economictimes.indiatimes.com

FII Party on St wont Last Long as Worries Remain

Rough Ride Ahead
Break-up of Sensex Targets of Poll Participants 31 DEC 2012 31 MAR 2012 20000 17k-19k 15k-17k 13k-15k
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CAPITAL CONCERN: EXPORTERS VS. IMPORTERS

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upload videos from wherever you are
SMS 3G to 1 21I www.airteL.in/3g

ET Fund Managers Poll

OUR BUREAU
MUMBAI

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IL&FS Investment Managers Buys 9.4% in Indiabulls Worli Project

IL&FS Investment Managers has paid ` . 200 crore for a 9.4% stake in an Indiabulls company that is developing the 8.3-acre Bharat Mills at Worli in south-central Mumbai. Corporate 8
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Participants Sector Choices in 2012 BEARISH BULLISH Auto Banks Capital Goods Cement Consumer Infra IT Metals Media Oil & Gas Pharma Realty Telecom

Govt Mulls Hike in Urea Prices Ahead of State Elections

The government plans to raise prices of urea, the most widely consumed fertiliser in the country, by a steep 40%. The move comes just ahead of elections in five states. Economy 15

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Viewpoint
The Breadth of Indian Internationalisation
Indian companies need to look relatively far for their foreign markets as the countrys breadth of global connections alone does not give it an edge to foster global integration, says Pankaj Ghemawat, professor at Harvard Business School. Bibek Debroy feels the Centre erred in launching Rajiv Awas Yojana without assessing efficacy of similar projects.

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 New York Life, Motilal Oswal Sec, Nirmal Bang Sec, Principal MF, Peerless MF, Religare MF, Religare Sec

he sudden gush of foreign investor money into domestic stocks may not last long, an ET poll of top fund managers reveals. Jittery investors worried over shaky corporate earnings, uncertainty over government economic policies, and headwinds blowing from the revival of the Euro zone debt crisis could push the Sensex down as much as 20% in the next few months. The Sensex, the poll shows, could fall to 13,000 in a few months, with eight fund managers predicting it to range between 13,000 and 15,000 by March 31. Most, however, expect it to rise to 20,000 by the year-end as falling interest rates buoy sentiment and spur increased consumption and investment by corporates. Were still very cautious with our investments in equities market. Markets will only stabilise once there is clarity on macroeconomic issues like growth, inflation, interest rates and deficit, said Prashant Sharma, head of investments at Max New York Life Insurance. The Sensex was battered for much of 2011 as inflation forced the central bank to increase rates 13 times in a row, crimping corporate profitability and investment. The government also failed to enact key policies to revive sentiment and signal its seriousness in increasing the tempo of economic growth. In November, it was forced into a humiliating reversal of its key initiative to allow foreign retail giants such as Walmart, Carrefour to set up shop in India, due to stiff political pressure.

The markets were expected to be dull in 2012, but a sudden pick-up in foreign fund flows has pushed the Sensex above the psychologically crucial 16,000-mark, surprising investors. It's too early to form a definitive opinion; for all you know, it could just be short covering. We're maintaining a cautious view in the short term, with state elections round the corner followed by the Union Budget, said Mahesh Patil, chief investment officer of Birla Sun Life Asset Management. Foreign investors have bought stocks worth $472 million (` . 2,500 crore) since the beginning of the year compared with net sales of $385 million for the whole of 2011. Some fund managers are also attaching a lot of importance to the elections in Uttar Pradesh. A strong performance by the Congress is expected to bolster its chances of pushing through unpopular but important policies. If the Congress party puts up a decent show partnering with a strong ally like Samajwadi Party , it will be extremely positive for the markets, said Ramanathan K, chief investment officer of ING Investment Management. But Edelweiss analysts said in a note to clients:Repeated election gains for the Congress, despite allegations of misgovernance, may not necessarily be positive for the economy as the party might feel emboldened to pursue its social sector agenda (as it is paying rich political dividends), thereby hindering the fiscal consolidation process. The markets worst nightmare, however, may not be either UP or the governments worsening fiscal math but a sudden catastrophic break-up of the European Union.

Excessive Greed and Fear Send Re Down the Tube

Stuck in the Drop Zone
The 20% fall in the rupee (`/$) in spite of reasonable dollar inows
Q2 Q3

45.2

Trade decit (i) Is plugged by Services exports** Net overseas remittances Net FII infows# Net FDI inow Others Total (ii) Balance of payments (i-ii)
JAN11 12

43.9

31.1*

51.7

15.5 NA but expected 16.2 to increase 0.3 4.4 4.4 4.1* 7.8 NA 44.2 0.3 NA NA

54.2
Dec 15

AUG9 11

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

suggests the trigger lay elsewhere

FEAR AMONG IMPORTERS GREED AMONG EXPORTERS

Had not bought forward cover as they felt ` would not fall. When it started falling, they rushed to buy dollars

but no dollars were available as exporters had already covered $ earnings. What wasnt covered, they held back

ANALYSIS
JOHN SAMUEL RAJA D & RISHI SHAH
NEW DE LH I

Sarkozy Vows Reforms

French President Nicolas Sarkozy has vowed reforms post S&P rate cut. 20

Telenor, Unitech Spar over JV Valuation

Unitech calls ` . 600-crore valuation bizarre and insists telco should be worth 20 times more
JOJI THOMAS PHILIP
NEW DELHI

With Todays Edition

Investors Guide

Norways Telenor has valued its Indian unit at over ` . 600 crore, escalating the spat with its joint venture partner real estate group Unitech that has termed the valuation as bizarre. Unitech, owned by the Chandra family , insists the mobile phone company is worth at least 20 times . 11,000 crore and ` . 12,000 crore. more, between ` Unitech Wireless launched mobile services under the Uninor brand in late 2009 and has since built a base of over 35 million customers, making it a rare success story among half-a-dozen companies given mobile permits by former telecom minister A Raja in early 2008. Telenors estimation of the value of its Indian unit is less than 7% of what it was in 2009 when . 6,100 it picked up 67.25% stake in the telco for ` crore, a deal that valued a company that had not launched operations or acquired a single cus. 9,000 crore. The deal attracted tomer at about ` the attention of Indias national auditor, which used it to back its argument that licences should

have been auctioned and not allocated by Raja at prices set in 2001. The figure also crops up in the 2G scam case, where the CBI has accused Unitechs promoter, Sanjay Chandra, of alleged wrongful gains arising out of the 2009 transaction. Relations between the partners have deteriorated in the recent past, raising questions on Uninors future in the 14-player Indian telecom market. At the heart of the dispute is a proposal, put forward In 2009, . 8,200-crore by Telenor, for a ` Telenor had rights issue by Uninor. Telenor bought says the funds are necessary to 67.25% in expand the business, but is opUnitech posed by Unitech. Wireless for About two months ago, Tele` . 6,100 cr nor had valued Unitech Wire. 400 crore (` . 28 less even lower at ` per share). The Norwegian major subsequently appointed BNP Paribas, which valued the mo. 870 crore (` . 60 per share). bile phone company at `
Unitech Finding Valuation Hard to Swallow 3

The Dispute Points

RIGHTS ISSUE Telenor supports `8,200-crore rights issue by Uninor on the grounds that the funds are necessary for business expansion. Unitech opposes it VALUATION Telenor has independently valued Unitech Wireless at about `600 cr. Unitech says it must be between `11,000 cr and `12,000 cr DISCLOSURES Unitech alleges Telenor did not disclose nature of its Pakistan ops to FIPB. Telenor says its investments in Uninor have been thoroughly tested against full disclosures by the authorities

When the rupee tumbled 20% against the dollar in four months, between August 9 and December 15, fingers were pointed at foreign institutional investors (FIIs), who were big sellers of Indian stocks. But data for the period shows that FIIs still brought in more money than they took out, though this net figure was about a tenth of the amount in the corresponding period a year ago. A reading of the other components of balance of payments which records Indias transactions with the rest of the world shows dollar inflows were reasonable during this period. Their velocity may have slowed because of a grim economic outlook, which would have put pressure on the rupee, but not enough to make it crumble. So, then, what explains the

slump? On speaking to forex traders, experts, exporters and bankers, a possible explanation emerges: on top of the general weakness, the equal and opposite actions of importers and exporters triggered a storm, and sent the rupee into a freefall. Initially , greed and fear drove down the rupee, says Jahangir Aziz, the Asia economist of JPMorgan. Greed among exporters, who did not convert their dollar earnings when they saw the rupee falling, hoping the Indian currency would weaken further and enable them to realise more. And fear among importers, who had left their exposure un-hedged and who rushed to buy dollars when the rupee started falling. Importers sought dollars, but exporters held them back. The resultant shortage dragged the rupee down in the forward market. And the spot market, which takes its cues from the forward market, followed suit. It was history repeating itself.
Lesson for Importers 3

REC to Tap Swiss Investors to Raise $200 m

REC will tap Swiss investors by January-end to raise $200 million, report Anita Bhoir & Rachita Prasad from Mumbai. 12

Cash-strapped UB Plans to List W&M

UB will consolidate its foreign liquor assets under Whyte & Mackay 5 and list the Scottish arm overseas to battle the Kingfisher crisis.

Move Towards CoreFirst Competence

A CoreFirstTM strategy is when the brain automatically engages your core prior to any movement or activity. This gives the big mover muscles of the body more strength and coordination
e take our bodies for granted our arms, legs, torso, neck and head are there to take us through the motions (and emotions) we call life. It stands to reason then, that when some part is impaired through injury or misuse, our lives are also affected, often in subtle ways. Doctors and rehab regimens deal with immediate challenges such as acute pain or post-surgical recovery, but we so often resign ourselves to a reduction of the ambit of our lives, accepting infirmity or lack of mobility as inevitable. Gregory and Vicky Johnson would say dont!! Functional Manual TherapyTM (FMT), pioneered by Gregory and Vicky Johnson, is an effective evaluation and treatment system that promotes optimum human performance by enhancing total body mobility. The unique aspect of FMT is the integration of the mobility treatment with neuromuscular facilitation (ability to initiate the right muscles at the right time with proper strength and endurance) and motor control (the ability to effectively produce coordinated postural and movement strategies). Whether people are suffering from chronic or acute pain, or recovering post surgery, or simply aspire to be able to do what they want to do (from running to the store to running the marathon!) FMT helps you get back to full living as Gregory calls it. It is actually a three-dimensional approach to the body: physical, spiritual and emotional. Whats important is how the body functions as a whole, explains Vicky .

FMT pioneers Gregory & Vicky Johnson

So, armed with in-depth knowledge of body mechanics, the Functional Manual Therapists first gather objective and subjective data on their clients via specific tests, besides observation and interaction. Then, as she puts it, Our hands guide us. Those skilled hands identify scar tissue, systemic dysfunctions or lack of mobility and go to work correcting the restrictions using Functional MobilizationTM. Theres a unique moment that happens when you are working with someone, when it all comes together when our clients realise that the human body is very complex, Vicky reveals. Its important for the FM therapist to provide an environment thats safe for someone to go through that process, and to discover how to allow themselves to heal as a whole human being. There is a state in which all joints should be functioning efficientlyto accomplish the task they are after, says Gregory . Our observational

skills identify the parts of the body that are no longer functioning efficiently , and through our hands we reinstate them to efficient movement. But the key to total restoration is the Johnsons crucial CoreFirstTM strategy getting the right muscles to activate or fire at the right time, in the right way , so that every action is completed successfully without stressing the body . Everyone talks about using the core, but a lot of that is done volitionally, says Vicky. We teach our patients postural and movement strategies that allow their core to fire all day long. If everything you do during the day allows your core to fire, then you dont need to lie down on the floor and do 45 minutes of core exercises, because youve exercised for 18 hours when you go to bed at night. So our job is to make sure that their life is, in fact, in itself an exercise!

If you watch young infants go through normal growth and development, what you see is that they sit, roll and crawl all very efficiently . But we, as adults, sometimes have lost access to that strategy . The mobility of joints and soft tissues is very important to allow for efficient movement. The ultimate goal of FMT is to provide an individual with the mechanical ability to become self-sufficient and more proficient in all areas of human performance. We see a lot of high-end athletes.

Weve had marathon runners take as much as 40 minutes off their marathon time by being treated with FMT. Weve had swimmers take time off their swimming when they compete. Weve had ski-racers take time off their racing when they compete because weve treated them with this approach of optimizing the function of their body . Given that there are less than 200 Certified FM Therapists worldwide, the Johnsons decision to come to India as their first venture outside the US at VARDN in New Delhi is therefore opportune indeed. VARDN is an initiative of The Times Group in collaboration with The Institute of Physical Art (IPA), USA. The IPAs comprehensive and innovative FMT curriculum prepares the physical therapist to competently and intuitively integrate evidence and clinical experience with each patient. As Vicky says, We have the potential to change an entire countrys perception of physical therapists, or better yet, change an entire professions perception of itself. The integrated approach at all levels of care at VARDN, led by veterans Charles King and Jevene Summers, will also see the utilisation of healing and supporting techniques like Pilates and Yoga. The facilities at VARDN will include a training area with specialised equipment, where clients can exercise to customised programs under the supervision of an FM Therapist. The eventual idea, as Vicky puts it, is for the people to take ownership of their body and hopefully , prevent issues from recurring.

SBI Car Loan

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WALK IN. DRIVE OUT

Our observational skills identify the parts of the body 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 their core to fire all day long. Then they dont need to do 45 minutes of core exercises, because theyve exercised for 18 hours anyway! Our job is to make sure that their life is, in fact, in itself an exercise! VICKY JOHNSON

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

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