Contents. Index Views. SENSEX Index Movers. BSE 200 Index Movers. FII and MF Data. SENSEX Movement. Key Developments India

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2 Contents Index Views SENSEX Index Movers BSE 200 Index Movers FII and MF Data SENSEX Movement Key Developments India Key Developments International Mutual Fund investments are subject to market risks, read all scheme related documents carefully. 2

3 Index Views Last Closing % Change Over 1 week 1 month YTD 1 year NIFTY 8,074 (2.68) (6.96) SENSEX 26,150 (2.49) (6.78) NSE MIDCAP 14,363 (3.31) (9.93) NSE 500 6,909 (3.06) (8.04) NIFTY JUNIOR 21,332 (3.18) (9.61) BSE SMALLCAP 11,869 (4.93) (10.62) BSE 200 3,473 (2.94) (7.86) *DOW JONES 18, *NASDAQ 5, NIKKEI 17, (5.60) (8.56) HANG SENG 22,344 (0.83) (4.49) SHANGHAI COMP 3,193 (0.10) 3.53 (9.79) (10.53) BSE OIL & GAS 11,755 (0.59) (3.10) BSE CAPITAL GOODS 13,864 (2.17) (7.44) (1.87) (2.63) BSE AUTO 19,859 (3.42) (11.19) BSE FMCG 7,849 (4.20) (8.47) (0.29) (1.42) BSE HEALTHCARE 15,207 (1.75) (6.66) (10.05) (7.58) BSE TECH 5,102 (0.58) (9.18) (15.71) (10.88) BSE IT 9, (9.91) (16.25) (12.06) BSE BANK 21,727 (3.88) (2.76) BSE PSU 7,815 (0.40) BSE REALTY 1,239 (4.50) (19.42) (7.86) (3.07) BSE METALS 10,081 (6.42) (1.37) BSE CONSUMER DURABLES 10,727 (6.28) (16.80) (10.59) (10.71) SOURCE : BLOOMBERG * DENOTES THURSDAY CLOSE 3

4 SENSEX Index Movers Last Price % Change Over 1 week 1 month YTD 1 year NIFTY 8,074 (2.68) (6.96) SENSEX 26,150 (2.49) (6.78) NSE MIDCAP 14,363 (3.31) (9.93) NSE 500 6,909 (3.06) (8.04) NIFTY JUNIOR 21,332 (3.18) (9.61) BSE SMALLCAP 11,869 (4.93) (10.62) BSE 200 3,473 (2.94) (7.86) *DOW JONES 18, *NASDAQ 5, SOURCE : BLOOMBERG BSE 200 Index Movers Last Price % Change Over 1 week 1 month YTD 1 year Bank of Baroda Union Bank of India (1.75) Power Finance Corp Ltd Engineers India Ltd Bharat Forge Ltd Voltas Ltd 293 (12.13) (26.61) (9.48) Shriram City Union Finance Ltd 1,807 (12.29) (20.06) Berger Paints India Ltd 188 (13.02) (29.75) (1.88) SRF Ltd 1,428 (15.35) (23.65) Jet Airways India Ltd 359 (15.46) (22.14) (48.86) - SOURCE : BLOOMBERG 4

5 FII and MF Data (Week Ended ) Rs. Crores FII GROSS PUR 32, FII GROSS SELL 40, FII NET (8,392.68) FII MONTH T0 DATE NET (8,893.42) MF GROSS PUR 10, MF GROSS SELL 8, MF NET 2, MF MONTH T0 DATE NET 5, SOURCE: SEBI SENSEX WEEKLY ,305 26,299 SENSEX LEVEL , , SOURCE : BLOOMBERG DATE 5

6 Key Developments India: Prime Minister Narendra Modi s dream for offshore financial hubs in India to rival Singapore and Hong Kong is attracting interest from currency-derivative designers. Commercial banks operating in India s international financial services centers -- the first of which will be Gift City in the province of Gujarat that Modi once governed -- will be allowed to offer structured products with prior approval from their board of directors, according to Reserve Bank of India rules issued November. 10. This seems to allow banks that formerly focused on equity-linked securities to expand into foreign-currency contracts, according to Care Ratings. Ten banks have applied for Gift City licenses, with Yes Bank, ICICI Bank and IDBI Bank among those to receive branch approvals. The introduction of these guidelines may pave the way for the emergence of structures with different underlying s such as currency, said Mukund Upadhyay, manager at Care Ratings. India s expanding capital markets need to be able to transact a full range of products to satisfy demand in an economy growing at more than 7 percent annually, without upsetting the central bank s control on a depreciating rupee. Modi is building the Gujarat International Finance Tec-City to take some share of the India-related investing and hedging activities from other Asian finance hubs. China is establishing a similar city called Qianhai in Shenzhen, where pilot policies can be tested before being rolled out nationally. Modi is likely to unveil a 16-story tower at the city near the provincial capital of Ahmedabad in January, Press Trust of India reported last month. The former governor of Gujarat said his dream was to create the technology and infrastructure to support "modern India and to create a space in the global financial world, As banking units in Gift City are supposed to primarily handle non-rupee business, there is an opportunity to offer foreign currency-linked investment or hedging products that may, for example, take directional bets on the U.S. dollar. This month alone, the rupee has declined 1.9 percent against the greenback. The rupee weakened past 68 per dollar for the first time since June as rising possibility of a U.S. interestrate increase triggered outflows from Indian assets. The currency dropped 0.4 percent to a dollar as of 11:04 a.m. in Mumbai, declining for the fifth time in six days. It fell to earlier and has lost 1.3 percent this week. State-run banks sold dollars, probably on behalf of the Reserve Bank of India, as the rupee declined. Federal Reserve Chair Janet Yellen s remarks Thursday cemented expectations for policy tightening at the Federal Open Market Committee s meeting in Washington Dec Odds that the Fed will tighten policy have risen to 96 percent from 68 percent at the start of this month. A gauge of the rupee s one-month implied volatility, used to price options, has climbed 40 basis points in its second weekly jump. Rising odds of a rate increase in the U.S. have caused the dollar index to surge, said Rohan Lasrado, Mumbai-based head of foreign-exchange trading at RBL Bank Ltd. The central bank is in the market and investors will see how they move. RBL Bank expects the rupee to trade in a per dollar range during the day. Sovereign bonds fell on Friday, snapping a three-day rally. The yield on the benchmark note due September 2026 raised two basis points to 6.44 percent, according to prices from the RBI s trading system. It has plunged 28 basis points this week. As China renews its push for an Asia-wide trade pact in the wake of Donald Trump s election victory, Beijing faces at least one prickly negotiating partner: India. With the likely demise of the Trans-Pacific Partnership, which President-elect Trump has said would be catastrophic for the U.S. economy; Chinese President Xi Jinping is expected to use this week s Asia-Pacific Economic Cooperation summit in Lima to promote a competing regional trade bloc. But India, Asia s third-largest economy, shares none of the urgency that geopolitical rival China is showing to deepen ties with major regional economies and the Association of Southeast Asian Nations. One major sticking point is India s push to liberalize the services 6

7 sector by negotiating access for its globe-trotting professionals, who want greater labor mobility in the region. It s a geostrategic hesitation that is behind India s stand, but there are also sticking points in terms of movement of skilled personnel, said Lalit Mansingh, a former Indian foreign secretary. We are looking at it with apprehension, but I m not so sure if we can stop it. Commerce Minister Nirmala Sitharaman said India was not being obstructionist in the Regional Comprehensive Economic Partnership negotiations but would not yield on its demands for liberalized services, according to an Economic Times report in May. We are fully committed to the RCEP negotiations, an early signing of that agreement and its operationalization, said Indian foreign ministry spokesman Vikas Swarup at a briefing on November 17. International: A contentious reform of international bank capital standards is going down to the wire, as regulators including the U.S. Federal Reserve and the European Central Bank try to bridge a wide gap on key issues before the end of the year. Issue is the way banks measure the risk of mortgages, corporate loans and even the threat of cyber-crime. The Basel Committee on Banking Supervision wants to curb banks ability to game the rules by using their own complex models to reduce capital requirements. The U.S. has long been skeptical of banks models, while Europe and Japan insist they provide accurate assessments of some assets. The U.S. election of Donald Trump could complicate the negotiations. Trump has vowed to roll bank financial regulations, fueling concern that his administration might shift the U.S. stance in international organizations such as the Basel Committee as he asserts his hold on power. Europe is having a constructive approach and is willing to reach a balanced agreement, Valdis Dombrovskis, the EU s financial-services chief, said in a November. 17 interview in Brussels. Hopefully, we can do it within the agreed time frame. The rare public ultimatum delivered by Andreas Dombret, a member of the Bundesbank Executive Board, capped months of increasingly strident opposition in Europe to the Basel Committee s proposals. The next round of talks is scheduled for November in Santiago, Chile. Volkswagen AG reached a landmark agreement with workers to cut as many as 30,000 jobs globally and save 3.7 billion euros ($3.9 billion) in expenses as the company tries to claw back from the emissionscheating scandal and invest in electric vehicles. Reducing headcount by nearly 5 percent will come through attrition as the automaker agreed to refrain from forced layoffs until 2025, the Wolfsburg, according to Germany-based Company. After months of intense talks, labor and management agreed on a package to balance cost-cutting with investment as the auto industry shifts away from traditional combustion engines and adapts to car-sharing services and self-driving technologies. This is a big step forward, maybe the biggest in the company s history, VW brand Chief Herbert Diess said at a press conference in Wolfsburg. All manufacturers must rebuild themselves because of the imminent changes for the industry. We need to brace for the storm. The labor agreement is critical to Volkswagen s efforts to accelerate restructuring at its biggest unit and emerge from the worst crisis in its history. The VW brand, which accounts for almost half of the group s sales, was struggling even before the emissions crisis erupted last year, tarnishing the carmaker s reputation and burdening the company with at least 18.2 billion euros in costs for fines and repairs. European Central Bank President Mario Draghi said the recovery in the 19-nation euro area isn t yet strong enough to deliver sustained reflation, and the current level of monetary support will be a key ingredient for the economic outlook in the coming years. We do not yet see a consistent strengthening of underlying price dynamics, Draghi said on Friday. Even if there are many encouraging trends in the euro area economy, the recovery remains highly reliant on a constellation of financing conditions that, in turn, depend on continued monetary support. His commitment suggests that the central bank s balance sheet -- currently at 3.5 trillion euros ($3.7 trillion) and with more being added each month -- won t shrink for the foreseeable future, even if the exact parameters of the ECB s quantitative easing change. The Governing 7

8 Council is set to decide on December. 8 whether to extend that program beyond March Draghi didn t address the forthcoming policy decision directly in his remarks, though he did reiterate that officials will continue to act as needed to return inflation to their goal. Going forward, our assessment will depend on whether we see a sustained adjustment in the path of inflation towards that objective, he said. And that means that inflation convergence towards 2 percent is durable, even with a reduction in monetary accommodation. Inflation dynamics, in other words, need to be self-sustained. Deutsche Boerse AG and London Stock Exchange Group Plc must place their joint headquarters in a European Union country if post-brexit Britain fails to secure pass porting for financial services, said German Deputy Finance Minister Michael Meister. A stock exchange that engages in securities business has to be supervised where it conducts its business, Meister said. Under the premise that there is no pass porting, the headquarters of financial services providers must be in the EU if they want to continue to profit from the single market. Even before the U.K. s Brexit vote, the combined companies plan for a London headquarters had been a sticking point for German politicians. Both LSE and Deutsche Boerse have maintained that the terms of the $12 billion deal are binding and remain unchanged. People familiar with the matter told Bloomberg in July that management of both exchanges understand the need to find a compromise on the new holding company s location. Pass porting -- the right of companies authorized in one country of the European Economic Area to sell their products and services throughout the bloc -- allows access to a $19 trillion integrated economy with more than 500 million citizens. Firms are under pressure to prepare for a worst-case scenario that would shut U.K.-based financial services companies out of the single market, and banks can t afford to wait until as late as 2019 before they start shifting operations, Meister said in an interview on Monday. U.K. Prime Minister Theresa May said that she ll start pulling the U.K. out of the EU no later than the end of March next year, meaning the two years of Brexit negotiations should be completed in NEWS SOURCE: BLOOMBERG CL03823 Risk Factor: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Disclaimer: The article (including market views expressed herein) is for general information only and does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this information. Investments in mutual funds and secondary markets inherently involve risks and recipient should consult their legal, tax and financial advisors before investing. Recipient of this article/ information should understand that statements made herein regarding future prospects may not be realized. He/ She should also understand that any reference to the securities/ sectors/ issuers etc., in the document is only for illustration purpose and are NOT stock recommendations from the author or L&T Investment Management Limited, the asset management company of L&T Mutual Fund or any of its associates. Any performance information shown refers to the past should not be seen as an indication of future returns. The value of investments and any income from them can go down as well as up. 8