COVER STORY

India Inc.El Dorado for FIIs?

--Amit Singh Sisodiya

FIIs are back in India with a bang. After a lackluster performance in 2000 where their net portfolio investment in the country's domestic market was a meager $555 mn, this year they have pumped in over $3.5bn with about 72% going into equities. A robust economy, cheaper valuations, and strong rupee are some of the major catalysts driving the FII investment in the country. However, after a long-drawn rally which stretches over a period of five months now, the billion dollar question that emerges is - whether this inflow is sustainable and if yes, for how long?

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CORPORATE FINANCE

Microsoft's Cash Pile : The $50 bn question

--Phulvinder Kaur

Today, Microsoft is resting on a $50 bn cash surplus. What will Microsoft do with its excess cash and what are its possible investment strategies?

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FINANCIAL MARKETS

IPOs : Issues and challenges

--Sharath Jutur

After a prolonged delay, some IPOs have hit the market and some more companies are yet to test the waters. Will the present stock market rally prompt these companies to come up with their IPO issues?

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IPOs : Revival in offing?

We are surely nowhere near an IPO boom. First, we need to address the several ills associated with the primary market, says Prithvi Haldea, Managing Director, Prime Database, Praxis Consulting and Information Services Pvt. Ltd., New Delhi.

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Socially Responsible Investing : Investors' trade off

--Ramakrishna Neti

A recent research conducted by two finance professors at Wharton University on the performance of Socially Responsible Funds, reveals that there are more risks and costs attached to this form of investing than what was estimated.

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FINANCIAL SERVICES

Basel II : Impact on banking sector

Basel II represents a logical and appropriate successor to Basel I, says Dr. V V L N Sastry, Country Head, Firstcall India Equity Advisors Pvt. Ltd., Mumbai (India).

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Dabhol : Lenders' paradox

--Nidhi Joshi

With the Indian lenders wanting to take the Enron stake, they see a ray of hope. The foreign lenders as well as the counter-guarantee could be the focus.

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CORPORATE STRATEGY

Air Deccan : Will it be successful?

--Anindya Roy

The launching of India's first low-cost airline by Air Deccan has opened up a new vista in the Indian aviation industry.

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HLL : Mother brands

--Anindya Roy and Nidhi Joshi

Within a span of two years, HLL has changed its `power' brand strategy to `mother' brand strategy. Is it sufficient to bring cheers to HLL's bottom line?

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Kodak : Going digital

--CSV Ratna

As its core film business seems to be perennially losing, Kodak is moving into digital photography, printing and imaging business.

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INDUSTRY

GLOBAL PHARMA INDUSTRY : Seeking new drugs

--Indu Prasad

Global pharmaceutical industry tides through a period of uncertainty. As the cost of drug development rises and the return on R&D tapers off, the big pharma giants are struggling to overcome the dry spell.

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Unified Licensing Regime : The wireless tangle

--Ramakrishna Neti

A unified licensing regime in the absence of a level playing field would further add to the existing chaos in the Indian telecom industry.

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BUSINESS ENVIRONMENT

INDIAN ECONOMY : The task ahead

The real worry is about India's ability to manage its ballooning public debt and stubborn high fiscal deficit, says R Purohit, Chief Economist, Hindustan Construction Company Limited.

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PERSPECTIVE

Alternative Investments : Art of art investment

--A Sowdeepti

Art as an investment avenue has been considered an interesting and profitable alternative, but it is also extremely risky.

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INTERNATIONAL FINANCE

Chinese Currency : Devaluation Dilemma

--N Janardhan Rao

Will the dragon float the yuan in view of the growing pressure from global businesses?

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Chinese currency : Historical perspectives

The depreciation of the other Asian currencies further to the financial crisis gave rise to fears of a possible overvaluation of the yuan, says Nhu-Nguyen, NGO, Country Risk Analyst, Economics Studies Department, BNP Paribas.

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