Analysts predict that Cognizant may surpass Wipro to become the third largest Indian IT firm if it meets its revenue growth target of 38% for 2010. Goldman Sachs has warned against investing in India and China in the short term due to rising inflation and advises rotating into US markets. India's foreign exchange reserves increased by $3.4 billion last week due to rising values of foreign currencies held in reserves. The RBI is expected to raise interest rates again in January to curb high inflation levels. Food inflation dipped slightly but remains high, forcing the government to take measures to reduce prices. Wipro appointed TK Kurien as the new CEO of its IT business replacing Girish Paranjpe

1. Power NEWS(17th Jan – 23rd Jan, 2011) - SumitKalra

2. Q4 nos may propel Cognizant to top 3 IT firms tally: Analysts Nasdaq-listed Cognizant has been steadily closing in on the gap between itself and the larger Indian IT players and may replace Wipro at the third spot if it meets its revenue guidance of 38 per cent during 2010, they said. Cognizant had posted USD 1.21 billion in revenues in the July-September quarter compared to Wipro's USD 1.27 billion revenues during the same quarter. (http://economictimes.indiatimes.com/markets/analysis/q4-nos-may-propel-cognizant-to-top-3-it-firms-tally-analysts/articleshow/7346067.cms)

3. Goldman Sachs warns against investing in India, China Goldman Sachs , the US investment banking giant, has issued a short-term alert over investing in India and China due to the impact of rising inflation, advising clients to rotate into Wall Street and other bourses as a safer bet over coming months. "India's current account deficit is running at a record pace of 4.1 percent of GDP and it is 100 percent funded by short-term portfolio flows, which cannot be relied on indefinitely," said Moe, describing Mumbai's bourse as "crowded". (http://economictimes.indiatimes.com/news/economy/finance/goldman-sachs-warns-against-investing-in-india-china/articleshow/7313455.cms)

4. India's forex reserves rise $3.4 billion India's foreign exchange (forex) reserves increased by $3.4 billion to $297.41 billion for the week ended Jan 14 on the back of rise in the value of foreign currency assets. The foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies such as British pound sterling, euro and Japanese yen held in reserves. (http://economictimes.indiatimes.com/news/economy/finance/indias-forex-reserves-rise-34-billion/articleshow/7341160.cms)

5. Inflation to prompt more RBI rate hikes in 2011 The wholesale price index (WPI) , India's main inflation gauge, is expected to rise by an average 8.8 percent for the fiscal year ending March 2011 before easing to 6.4 percent in the following year. The RBI, seen as Asia's most aggressive major central bank after it increased rates six consecutive times last year, is set to raise rates by at least 25 basis points in its Jan 25 policy meeting, with some analysts even predicting a substantial 50 bps hike. (http://economictimes.indiatimes.com/news/economy/indicators/inflation-to-prompt-more-rbi-rate-hikes-in-2011/articleshow/7344295.cms)

6. Food inflation dips to 15.5%, Pranab still unhappy The food inflation had accelerated to a 23-week high of 18.32% in late December, forcing the government to announce a 14-point plan to ease food prices. The wholesale price index for food was up 15.5% for the week ended January 8 from a year ago, down from 16.9% in the previous week. (http://economictimes.indiatimes.com/news/economy/indicators/food-inflation-dips-to-155-pranab-still-unhappy/articleshow/7331078.cms)

7. T K Kurien is Wipro's new CEO IT Business; Paranjpe, Vaswani step down The country's third largest software firm Wipro on Friday said T K Kurien will replace GirishParanjpe and Suresh Vaswani as chief executive officer of the IT business, a move that is aimed at simplifying its organisational structure. Kurien will lead Wipro's IT business and will also be on the company's board as Executive Director. Kurien is currently chief executive of the company's eco-energy division, a new initiative launched early this fiscal. (http://economictimes.indiatimes.com/news/news-by-company/corporate-announcement/t-k-kurien-is-wipros-new-ceo-it-business-paranjpe-vaswani-step-down/articleshow/7331974.cms)

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