Richest Indians rendered poorer by debt crisis

The global markets have been spiraling, thanks to the US debt crisis. Not only are we the commoners losing thousands of our hard-earned money, the country's richest aren't any much better off either.

According to this infographic made by our expert, Deepak Shenoy, the Ambani brothers have been the biggest losers with Anil Ambani's kitty getting lighter by a whooping Rs 7.6K crore closely followed by Mukesh Ambani who suffered a Rs 7.3K crore loss. IT big-wig Azim Premji, chairman of Wipro Ltd, lost almost Rs 6.6 K crore.

The BSE Sensex ended 1.7 per cent lower in trade today, led by losses in software exporter Infosys, after Standard & Poor's downgrade of the U.S. sovereign debt rating triggered a flight from risky assets.

ADAG's Anil Ambani was the highest loser in today's market slide with a loss of Rs 7,630 crore.

India's richest man, Mukesh Ambani with a $27 billion networth, and with a promoter stake of 146.39 crore shares of Reliance Industries, lost a total of Rs 7,349 crore during the market mayhem.

Telecom baron Sunil Mital who owns 36% in Bharti Airtel (the promoter shareholding includes Singtel) lost about Rs 4,531 crore.

The IT sector witnessed the maximum downslide with the sector ending 4.3 per cent. IT bellwether Infosys Technology ended 4.73 per cent lower making its founders poorer by Rs 3,173 crore.

Meanwhile, Wipro's promoter Azim Premji who holds 194.6 cr. shares of Wipro saw his market value fall by Rs 6,626 crore. The shares tanked 2.54 per cent on the BSE.

Others in the list include, HCL promoter Shiv Nadar, who with a total of 44 crore shares in the company lost Rs 2,962 crore, DLF promoter KP Singh, whose market value fell by Rs 4,645 core, and the Jindals who saw their shares tank by Rs 2,608 crore.

Here's a look at how much their market value has changed during the week:

Globally, even the world's richest man, Carlos Slim, lost $8 billion this week (Aug 1-8), while steel magnate and Britain's richest Indian Lakshmi Mittal lost £ 2.16 billion.

Bill Gates and Warren Buffet, however, have been luckier with their portfolios, Gates's Microsoft Corp. dropped 5.3% this week before Friday, while Buffett's Berkshire Hathaway Inc. slid 4.3%.

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RBI calms investors; markets slide

MUMBAI (Reuters) - The Reserve Bank of India said Monday it would ensure adequate rupee and forex liquidity, in a move to calm markets after a U.S. rating downgrade rattled investors already reeling under a gloomy world economy.

The announcement just before the markets opened for trading failed to ease jitters and shares fell more than 3 percent, while the rupee weakened to its lowest in five weeks. Bond yields fell to 3-week troughs as investors sought safe-haven government securities.

The RBI, which has raised interest rates 11 times since mid-March 2010 to control high inflation, said the country's economy had high resilience to weather the storm.

"While downside risks to growth may have increased in the wake of global developments, they are likely to have limited impact," the central bank said.

The RBI, supported by India's foreign exchange reserves of more than $300 billion, said it was monitoring the global situation and would "respond quickly and appropriately to the evolving situation".

Shares across Asia fell sharply on Monday despite efforts by global policymakers to stem a collapse in investor confidence after S&P downgraded U.S. credit rating.

The United States lost its top-tier AAA credit rating from Standard & Poor's on Friday, hours after investors alarmed by the euro zone debt crisis forced Italy to speed up an austerity drive.

Around 60 percent of India's foreign currency assets, which comprise the bulk of the forex reserves, are estimated to be held in U.S. Treasury paper and the global developments will make the RBI's job more tough.

India has been trying to keep a lid on stubbornly high inflation even as the economy shows signs of slowing.

Headline inflation rose to 9.44 percent in June, above the central bank's comfort level of 7 percent for end-March.

By 0552 GMT, the main stock index was down 2.9 percent, while the partially convertible rupee was at 45.01/02 per dollar against 44.735/740 on Friday. The benchmark 10-year bond yield was down 9 basis points at 8.22 percent.

U.S. investment bank Goldman Sachs on Monday upgraded India to "market weight" from "underweight," given a likely turn in the macro cycle, lower oil prices, lower valuation, and policy reform.

The RBI said the banking system does not face any immediate liquidity stress and banks can borrow by pledging government bonds and also avail a recently introduced emergency borrowing facility of the central bank.

"This will help stabilize the call rate within the LAF corridor, which is currently 7-9 percent," the RBI said, referring to the liquidity adjustment facility.

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Q+A-S&P's downgrade of the United States

NEW YORK (Reuters) - The United States lost its top-tier AAA credit rating from Standard & Poor's on Friday, a move that will affect the country's borrowing costs and investor opinion of U.S. assets. Here is a Q+A on what the downgrade means for investors, consumers and to the country.

WHAT IS A DOWNGRADE?

Standard & Poor's, one of the three major credit rating agencies that assign scores to debt issued by institutions, municipalities, and governments, said there is a heightened degree of risk in holding debt issued by the United States. So it lowered its rating from the AAA, the highest possible level, by one notch to AA+. It also said the outlook is negative.

WHY DID IT LOWER THE RATING?

The credit rating agency believes the outstanding debt of $14.3 trillion and projected deficits for coming years in the United States no longer warrant the top-tier rating that it had assigned to the United States since 1941. It also said that the political environment does not build confidence that the United States can agree on how to lower the deficit in a meaningful way any time soon.

DOES THIS MEAN THAT U.S DEBT IS NO LONGER SAFE?

No. At AA+, the U.S. is still considered to have a "strong" ability to meet its obligations. In fact, only a handful of countries now have the AAA rating -- among them Canada, Germany, France and the United Kingdom. In addition, Treasuries have rallied this week, driving the yield on the benchmark 10-year note to 2.34 percent, its lowest level in about 10 months. This suggests people still view the U.S. as a safe place to invest.

BUT WASN'T A DEBT DEAL JUST SIGNED IN CONGRESS?

Yes, but the savings from this are projected at $2.1 trillion. S&P has said that a larger level of savings is needed -- at least $4 trillion either through spending reductions or tax increases - are needed in order to start lowering U.S. deficits in coming years.

WHAT IMPACT DOES THE DOWNGRADE HAVE?

Over time, a lower rating will cause investors who buy U.S. government debt to demand a higher interest rate to hold that debt to reward them for the risk. If that is the case, benchmark long-term interest rates will rise. Most major rates, including the debt of corporations, mortgages purchased by investors, and other types of loans, are priced in relation to the U.S. Treasury benchmark. That means borrowing costs across a number of spectrums over time will rise, making loans and bonds more expensive. The more an individual or company is devoting to interest payments, the less they have for other activities.

SO WHAT WILL IT COST?

The downgrade could add up to 0.7 of a percentage point to U.S. Treasuries' yields, increasing funding costs for public debt by some $100 billion, according to SIFMA, a U.S. securities industry trade group.

WHO OWNS U.S. DEBT?

Other than the U.S. Federal Reserve , the most recent data from the U.S. Treasury shows that China, with $1.16 trillion in U.S. Treasury securities, is the biggest holder of our debt. China has repeatedly warned of the unsustainable trend of U.S. deficits and has talked of diversifying its holdings to other economies. But because China maintains the value of its currency through buying of U.S. dollars, it is likely to continue to be a major holder of Treasury securities for some years ahead.

WILL MY MONEY MARKET FUND HAVE TO SELL ITS TREASURY DEBT?

Not likely. The credit rating change affects long-term debt -- the short-term credit rating of the U.S. is A-1+, the highest short-term rating. Money market funds with short-term debt are unlikely to be affected.

WILL INVESTORS PREFER DEBT FROM HIGHER RATED COUNTRIES?

This is possible. Some large investors, such as William Gross of PIMCO, have said other markets such as Canada offer more value. But the U.S. market retains significant appeal because its bond market was more than $35 trillion at the end of March 2011, according to SIFMA. No other bond market is close to that size.

NOW THIS HAS HAPPENED, IS U.S. SAFE FROM OTHER DOWNGRADES?

No. To begin with Standard & Poor's has assigned a "negative" outlook to the US long-term credit rating. That means another downgrade was possible in the next 12 to 18 months if it does not see an improvement in debt reduction.

The other ratings agencies, Moody's and Fitch, currently still have a AAA rating on U.S. debt, which they just affirmed. But both of those agencies have suggested the U.S. could also be downgraded if projected government deficits are not reined in. Moody's currently has U.S. debt on review for possible downgrade.

HOW LONG HAS THE U.S. HAD AN AAA RATING?

S&P has maintained a AAA rating on the U.S. since 1941. Moody's has had an Aaa rating on the U.S. since 1917; Fitch's top-tier AAA rating dates to 1994.

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Asia would be hit harder by a second global crisis

S&P: Asia would be hit harder by a second global crisis

Arrangement of various world currencies including Chinese Yuan, Japanese Yen, US Dollar, Euro, British Pound, Swiss Franc and Russian Rouble pictured in Warsaw January 26, 2011. REUTERS/Kacper Pempel/Files
On Monday 8 August 2011, 9:23 AM

SYDNEY (Reuters) - A new global financial crisis would hit Asia harder than the last one, especially nations heavily exposed to offshore markets or still repairing budgets from the 2008-2009 crisis, credit ratings agency Standard and Poor's said on Monday.

The agency, which incurred Washington's wrath at the weekend by cutting its AAA rating by a notch to AA+, said it was not predicting a rerun of the credit crisis that crippled markets and tipped the world economy into recession three years ago.

But it warned of more sovereign downgrades in Asia next time around, if its assumptions turned out to be wrong.

"If a renewed slowdown comes, it would likely create a deeper and more prolonged impact than the last one," S&P said in a statement.

"The implications for sovereign creditworthiness in Asia-Pacific would likely be more negative than previously experienced, and a larger number of negative rating actions would follow. We wait to see."

S&P said it assumed Europe's debt crisis and Washington's debt problems were unlikely to lead to "abrupt dislocations" in the financial systems and economies of major developed nations.

On that basis, it added, its historic downgrade of the U.S. credit rating would have no immediate knock-on impact on sovereign borrowers in the Asia-Pacific.

It cited the Asia Pacific region's sound domestic demand, relatively healthy corporate and household sectors, plentiful external liquidity and high savings rates -- though it listed New Zealand, Japan and Vietnam as exceptions to this.

The S&P statement took on a much darker tone when considering the possibility that its assumptions were too rosy, noting that Asia still relied heavily on exports to the West.

"Given the interconnectivity of the global markets, an unexpectedly sharp disruption in developed-world financial markets could change the picture," it said, noting that the U.S. and European economies could again contract or stagnate.

"In this scenario, the experience of the global financial crisis of 2008-2009 shows that export-dependent economies with large exposures to the U.S. and/or Europe would feel the most pronounced economic impacts," S&P said.

"It's not likely things would be very different this time."

The agency listed those countries particularly vulnerable to disruptions in offshore capital markets as Pakistan, Sri Lanka, Fiji, Australia, New Zealand, South Korea and Indonesia.

It also said several nations, again including New Zealand, were also still repairing their government finances and could be more constrained in responding to a fresh global crisis.

"The adverse impact on Asia Pacific in that scenario would likely require governments to use their balance sheets to support their economies and financial sectors once again," S&P said.

"And in our opinion, most governments would promptly oblige. But some of them continue to bear the scars of the recent downturn -- the fiscal capacities of Japan , India, Malaysia, Taiwan and New Zealand have shrunk relative to pre-2008 levels."

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Careers in Engineering

Tech trek to success

Despite the vast number of career options available today, engineering continues to remain a favourite with students

Albert Einstein once, in a tribute to engineering, famously said, "Scientists investigate that which already is; Engineers create that which has never been." Despite the vast number of career options available today, engineering continues to remain a favourite with students. This is because this field offers plenty of opportunities in a varied range of disciplines, and engineers are required in almost every organisation.

Engineering has evolved over the years to offer many more branches to students. Apart from the traditional branches-civil, mechanical and electrical, students can now choose from computer science, information and communication technology, electronics and communication, aeronautical, automobile, ceramics, instrumentation, chemical, biomedical engineering, environmental, textile, marine, production and sound engineering to name a few.

It may be a good idea for an engineering aspirant to pursue a core field, such as electrical, electronics and communications, computer science, civil, mechanical during graduation. This way the student will have more job opportunities after graduation, and can later choose a specialisation.

Engineering streams to choose from
Electronic Engineering
Communication Engineering
Aeronautical Engineering
Electrical Engineering

Considering India's robust growth rate, engineering students can look forward to increasing opportunities. Increased penetration of technology will lead to new employment avenues in outsourcing (KPO, LPO), legal, aviation, automotive, healthcare, supply chain, logistics, among others.

Information and Communication Technologies (ICT) will increasingly catalyse inclusive growth. Broadband wireless access is undergoing a sea change, creating the infrastructure for the delivery of new, data-intensive services. This is one reason that during the last few years, electronics and communication, computer science and information technology have been popular.

The IT industry is back in reckoning after a brief period of slowdown. According to latest industry reports, Indian IT-BPO (excluding hardware) industry is expected to grow by 19 per cent to reach US$ 76 billion in the fiscal year 2011. This industrywill add2.26 lakh personnel this year, to take the total workforce strength to 22.3 lakh.

Owing to a rapid growth in Information Technology, the field has become a quintessential aspect of our life. As a result, there subsists a huge demand for computer engineering professionals for the development of hardware components, new communication systems, software - both system and application software.

Branches such as environmental engineering, food and healthcare engineering may offer consistent job opportunities as these Industry fields are more immune to global slowdown. While doing a specialisation discipline (such as aeronautical, automotive, petroleum and ceramics among others), students should focus on building solid deep foundation in the subject.

After completing graduation, a student can apply for a job, or opt for post graduation in his or her field of specialisation and then pursue a Ph.D. if the student is interested in a research career. Successful completion of a B. Tech in computer science and engineering equips students for great careers in software engineering.

A variety of focus areas alloweach student to customise their learning to target a wide variety of career options. This includes research in computer science, applying computational techniques to solve problems in other basic and applied science (physics, chemistry, biosciences and electrical engineering to name a few), developing scientific and mathematical software, system software development such as device drivers and operating systems, commercial software development, embedded systems, mobile application development, industrial process control, bioinformatics, IT and mathematics applications in finance and IT-assisted education.

There is a popular but incorrect perception that there are not too many corporate openings for those pursuing research. However, India is increasingly emerging as an research and development hub with a large number of companies setting up their research and development facilities in India, leading to a huge demand for trained research or technical professionals in the corporate sector. The severe shortage of highly-skilled technical professionals is being acutely felt across all industry sectors, making M.Techs and Ph.Ds a favoured lot.

Today, working people in the private or public sector can acquire a bachelor's engineering degree through distance education. Quite a few institutions in India are now offering graduate degrees through distance education. Thanks to the rapid growth of information communication technology, it is now possible for students to get to hear and learn from thought and opinion leaders across the world.

Engineering is a field that requires practical application of theoretical knowledge. Thus, a strong grasp of core subjects such as mathematics, physics, chemistry and bioscience is important in order to innovate and think out of the box.

Learning is not merely about finishing courses and getting grades or gaining disciplinary knowledge but it is 'learning to learn', learning how to solve unstructured, openended problems that have no unique and pre-determined solutions. People with a research bent of mind and curious disposition make good engineering professionals.

In summary, a career in engineering from a good institution helps nurture an analytical and curious mind. It provides excellent job opportunities and opens the doors to a career in research and development. The engineering profession is rich and truly rewarding and ensures long-term stability and a great return on investment.

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Careers in Nuclear Engineering

Fission and fusion

Studying radioactive materials and radiation and learning how to use them in areas such as power and nuclear medicine forms the basis of nuclear engineering.


Equipment failure, nuclear meltdown and release of radioactive material as a result of the Japan earthquake brought worldwide criticism for the Fukushima Daiichi nuclear plant disaster. This steered the world back to the age-old debate on the benefits of nuclear technology.

Many international bodies advocated closing down nuclear plants. But everything has its advantages and nuclear debates brought to light the many benefits of developing nuclear energy. A world with more energy and less carbon emission, no electricity problems and better medical facilities, the advantages are clearly more.

Studying radioactive materials and radiation and learning how to use them in areas such as power and nuclear medicine forms the basis of nuclear engineering.

"India has no choice but to go in for nuclear energy in a big way. Renewable energy has to be encouraged to the maximum possible and there has to be a focus on the importance of nuclear energy to meet the country's requirement in the future. Students should be encouraged to develop a career in this field," explains Suhas Sukhatme, former Chairman, Atomic Energy Regulatory Board, Government of India.

Nuclear engineering encompasses areas of the research, development, and application of nuclear energy and power plants. It also involves the handling of nuclear fuels and the safe disposal of radioactive wastes.

"Students interested in this field should have reasonable mathematical background and some technical programming skills. A B. Tech. or an M.Sc. degree is the basic educational qualification I would recommend to students who want to specialise in this field," explains Prabhat Munshi, Professor, Mechanical Engineering and Nuclear Engineering and Technology, IIT, Kanpur.

At present, nuclear engineering is studied as a specialisation and is offered at the postgraduate level. "A sound foundation in mathematics, thermodynamics, fluid mechanics and heat transfer and a keenness for research are necessary," says Kannan Iyer, Professor, Department of Mechanical Engineering, IIT, Bombay.

Job opportunities range from those at nuclear plants and government organisations to those in private firms. Fellowships are offered from the Nuclear Power Corporation of India and Atomic Energy Regulatory Board in India. The salary package ranges from Rs 4 lakh to Rs 7 lakh per annum.

Atomic awakening
- Indian Institute of Technology, Kanpur, www.iitk.ac.in
- Indian Institute of Technology, Bombay, www.xlri.ac.in
- Homi Bhabha National Institute, Mumbai, www.iitb.ac.in
- Saha Institute of Nuclear Physics, Kolkata, www.saha.ac.in

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Google unveils social network to challenge Facebook

New York, June 29 (IANS) Google Tuesday unveiled its new social networking service to take on Facebook.
The Internet search engine introduced Google+ social network for what it called 'real-life sharing.' To be available first by invitation only, Google said its social network will meet the most basic human needs to connect with others.
Aiming to take advantage of flaws in networking on Facebook, Google said, 'Today, the connections between people increasingly happen online. Yet the subtlety and substance of real-world interactions are lost in the rigidness of our online tools. In this basic, human way, online sharing is awkward. Even broken. And we aim to fix it.''

Google said, 'We'd like to bring the nuance and richness of real-life sharing to software. We want to make Google better by including you, your relationships, and your interests. And so begins the Google+ project.''
It would offer options of networking, including 'Circles' interface for adding friends and sharing 'what matters, with the people who matter most' and 'Hangouts' interface for group video chat.

'The debut of Google+ will test whether Google can overcome its past flops in social networking, like Buzz and Orkut, and deal with one of the most pressing challenges facing the company,'' said the New York Times.
'At stake is Google's status as the most popular entry point to the Web. When people post on Facebook, which is mostly off-limits to search engines, Google loses valuable information that could benefit its Web search, advertising and other products.''

But Google+ might be already too late, the paper said.
'In May, 180 million people visited Google sites, including YouTube, versus 157.2 million on Facebook, according to comScore. But Facebook users looked at 103 billion pages and spent an average of 375 minutes on the site, while Google users viewed 46.3 billion pages and spent 231 minutes.
'Advertisers pay close attention to those numbers, and to the fact that people increasingly turn to Facebook and other social sites like Twitter to ask questions they used to ask Google, like a recommendation for a restaurant or doctor, because they want more personalized answers,'' the New York Times said.

Wipro offers up to Rs 10 crore annual package to new CEO

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