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 6,090 (2.83) (3.40) (3.40) 0.91 SENSEX 20,514 (2.93) (3.10) (3.10) 3.11 NSE MIDCAP 7,540 (1.57) (6.58) (6.58) (9.85) NSE 500 4,709 (2.64) (4.19) (4.19) (1.80) NIFTY JUNIOR 11,993 (2.26) (7.27) (7.27) (2.26) BSE SMALLCAP 6,263 (2.81) (4.39) (4.39) (11.46) BSE 200 2,425 (2.68) (4.15) (4.15) (1.45) *DOW JONES 15,849 (0.19) (4.39) (4.39) *NASDAQ 4,123 (0.12) (1.28) (1.28) NIKKEI 14,915 (3.10) (8.45) (8.45) HANG SENG 22,035 (1.85) (5.45) (5.45) (7.14) SHANGHAI COMP 2,033 (1.04) (3.92) (3.92) (14.77) BSE OIL & GAS 8,453 (2.23) (4.32) (4.32) (9.68) BSE CAPITAL GOODS 9,487 (1.43) (7.58) (7.58) (9.61) BSE AUTO 11,569 (3.21) (5.63) (5.63) 5.23 BSE FMCG 6,518 (0.07) (0.75) (0.75) BSE HEALTHCARE 10,110 (0.72) BSE TECH 5,168 (0.94) BSE IT 9,477 (0.56) BSE BANK 11,712 (6.72) (9.92) (9.92) (19.67) BSE PSU 5,555 (2.61) (6.00) (6.00) (27.50) BSE REALTY 1,212 (7.31) (15.47) (15.47) (45.88) BSE METALS 9,152 (4.71) (8.16) (8.16) (13.71) BSE CONSUMER DURABLES 5,548 (0.48) (4.69) (4.69) (26.82) Source: Bloomberg * DENOTES THURSDAY CLOSE 3

4 SENSEX Index Movers Last Price % Change Over 1 week 1 month YTD 1 year Bharat Heavy Electricals Ltd (2.04) (2.04) (24.09) GAIL India Ltd Hindustan Unilever Ltd (0.11) (0.11) Bharti Airtel Ltd (4.63) (4.63) (7.14) Mahindra & Mahindra Ltd (5.62) (5.62) 0.08 ICICI Bank Ltd 989 (6.56) (10.01) (10.01) (16.99) HDFC Bank Ltd 629 (6.68) (5.54) (5.54) (2.25) Sesa Sterlite Ltd 189 (7.03) (6.61) (6.61) 1.10 Axis Bank Ltd 1,120 (7.24) (13.86) (13.86) (25.62) Maruti Suzuki India Ltd 1,635 (7.74) (7.24) (7.24) 3.33 Source: Bloomberg BSE 200 Index Movers Last Price % Change Over 1 week 1 month YTD 1 year Aurobindo Pharma Ltd Glenmark Pharmaceuticals Ltd Ipca Laboratories Ltd Indian Oil Corp Ltd (25.05) Godrej Consumer Products Ltd (12.35) (12.35) 6.02 Jaiprakash Associates Ltd 40 (13.90) (26.15) (26.15) (53.71) Bank of India 192 (15.83) (19.32) (19.32) (45.66) Coromandel International Ltd 203 (16.89) (15.17) (15.17) (9.14) Jaiprakash Power Ventures Ltd 13 (17.20) (31.22) (31.22) (62.91) Pipavav Defence & Offshore Engineering Co Ltd Source: Bloomberg 34 (17.90) (23.58) (23.58) (61.64) 4

5 SENSEX LEVEL FII and MF Data (Week Ended ) Rs. Crores FII GROSS PUR 11, FII GROSS SELL 14, FII NET (2,574.10) FII MONTH T0 DATE NET MF GROSS PUR 1, MF GROSS SELL 2, MF NET (719.30) MF MONTH T0 DATE NET (2,246.60) Source: SEBI SENSEX WEEKLY , ,707 20,684 20,647 20,498 20, /24/2014 1/27/2014 1/28/2014 1/29/2014 1/30/2014 1/31/2014 SOURCE : BLOOMBERG DATE 5

6 Key Developments India : India s central bank head Raghuram Rajan proposed penalties and incentives to urge lenders to move faster in corralling soured debt as he seeks to bolster the financial system amid a slowdown in the South Asian economy. Banks that work together quickly to restructure bad loans and to recover or sell unviable debt will receive better regulatory treatment such as being allowed to spread the loss from sales of distressed assets over two years, the Reserve Bank of India said in a statement on its website yesterday. The lenders would have to double the funds set aside for some bad loans if they fail to take measures to recover the debt. The guidelines underscore efforts by Rajan, 50, to curtail a rise in soured loans that threatens to erode profitability and capital buffers at the nation s lenders. Stressed assets, which include bad debts and restructured loans, rose to 10.2 percent of total debt, the highest in a decade, as of Sept. 30, data compiled by the central bank show. Stringent implementation of the new rules will check the threat from bad loans, Vishal Narnolia, Mumbai-based banking analyst at SMC Global Securities Ltd., said. So far, many Indian banks have been kicking the can down the road when it comes to stressed assets. Although there will be some accounting pain in the short term, tighter rules will help them clear up the balance sheets even as the economy slows. The S&P BSE Bankex index, a gauge that tracks 12 banking stocks, slumped 20 percent in the past 12 months amid concern rising bad loans would crimp profits at the lenders. State Bank of India, the nation s largest, lost 38 percent and ICICI Bank Ltd. declined about 18 percent. The broader S&P BSE Sensex index gained about 3 percent during the period. India central bank Governor Raghuram Rajan warned of a breakdown in global policy coordination after the Federal Reserve further cut stimulus, weakening emerging- market currencies from the rupee to the Turkish lira. Rajan, a former chief economist at the International Monetary Fund, called for greater cooperation among policy makers weeks before finance chiefs from the world s top developed and emerging markets gather in Sydney. The Fed s Jan. 29 statement made no mention of developing economies. International monetary cooperation has broken down, Rajan, 50, said yesterday in an interview in Mumbai with Bloomberg TV India, noting how emerging markets helped pull the global economy out of crisis starting in late Industrial countries have to play a part in restoring that, and they can t at this point wash their hands off and say we ll do what we need to and you do the adjustment. Rajan raised interest rates this week along with central bankers from Turkey to South Africa as the Fed pressed on with a reduction in monthly bond purchases put in place to speed a recovery from the worst recession since the Great Depression India s rupee bond market is the quietest since the global financial crisis as a selloff in emerging markets and inflation near 10 percent sap demand. Corporate issuance dropped 63 percent so far this year to 53 billion rupees ($849 million), the least since the same period in 2007, according to data compiled by Bloomberg. While consumerprice inflation cooled to 9.87 percent last month from percent in November, it was still the highest among 18 Asia-Pacific economies tracked by Bloomberg. That prompted the Reserve Bank of India to raise its repurchase rate a quarter- point to 8 percent on Jan. 28. India s currency dropped to its lowest level against the dollar since November this week amid a selloff in nations with current-account deficits including Turkey, Indonesia, Brazil and South Africa. While Axis Bank Ltd., the biggest underwriter of rupee debt in 2013, predicts offerings will rebound as Rural Electrification Corp. and Power Finance Corp. plan sales, inflation has prevented the central bank from shifting its focus to reversing the slowest economic growth in a decade. The central bank s policy rate is less supportive to issuance now and inflation is still very high, according to Mahendra Jajoo, Mumbai-based executive director at Pramerica Asset Managers Pvt. who manages $400 million in assets. Action in the bond market will slow down after the RBI s rate increase. 6

7 Indian stock-index futures are little changed before the release of economic data and company earnings. SGX CNX Nifty Index futures for February delivery advanced 0.1 percent to 6,105 at 10:32 a.m. in Singapore. The underlying CNX Nifty Index on the National Stock Exchange of India Ltd. fell 0.8 percent to 6, yesterday. The S&P BSE Sensex declined 0.7 percent to 20,498.25, a fifth day of losses. The Bank of New York Mellon India ADR Index of U.S.-traded shares rose 1.2 percent to 1, The Sensex has slid 3.2 percent this month, poised for its steepest drop since August, after interest-rate increases by emerging-market central banks failed to stem currency declines and the Federal Reserve reduced stimulus. The government will release economic growth data for the year to March 2013 and fiscal deficit figures for December today, while Punjab National Bank, IDFC Ltd. and Marico Ltd. are reporting earnings. Twelve of the 15 Sensex companies that have reported earnings for the December quarter so far have beaten or matched analyst estimates. International : Yang Yuanqing is showing his global ambition. In the span of a week, the chief executive officer of China s Lenovo Group Ltd. cut the two biggest deals in his company s history. He s spending a combined $5 billion to buy Google Inc. s Motorola mobile-phone business and International Business Machines Corp. s low-end server business. It s a risky bid to use acquisitions to move beyond the shrinking personal computer business and become a broader technology player. Yang is betting that moving aggressively into North America will help give him the scale to better compete against Apple Inc. and Samsung Electronics Co. in smart phones and against Dell Inc. and Hewlett-Packard Co. in servers. We dream to become a global player, Yang said in an interview. You must be a global player to have global presence. Only being in China and emerging markets is not enough. Investors panned the Motorola purchase yesterday, driving down Lenovo s shares the most in 19 months. Alberto Moel, an analyst at Sanford C. Bernstein & Co. in Hong Kong, said the company may be overpaying for a company struggling to compete against Apple and Samsung. Russia s stock market has fallen more this year than those in Thailand, South Africa and even Turkey. That makes no sense to CF Global Trading U.K. While the economy in Russia probably grew at less than half the previous year s pace in 2013 as investment fell amid a record recession in the euro area, the country s trade surplus and rising oil prices should help it weather the emerging-market slump better than peers, said Julian Rimmer, a broker at London- based CF Global. Russia has been caught up in an indiscriminate emerging- market selloff because of the clustering effect in the asset class during times of crisis, Rimmer wrote in an yesterday. Russia is sometimes unfairly penalized. Brent at $107 generates a billion dollar export revenue every day and it has no short-term debt mountain to climb. The dollar-denominated RTS Index has tumbled 8.4 percent this month, set for the worst start of a year since The Russian equity gauge is the third-worst performer this year among 94 stock measures tracked by Bloomberg. The Bloomberg Russia-US Equity Index of the most-traded stocks rose 1 percent yesterday, trimming the biggest January decline since The U.S. dollar held its strongest start to the year since 2010 against major peers while Japan s Topix index fell and the Thai baht dropped amid concerns over emerging markets. Rubber climbed. The Bloomberg Dollar Spot Index, which monitors the greenback against 10 major counterparts, was at 1, as of 1:26 p.m. in Tokyo, poised for a 1.1 percent gain in January that would be the strongest monthly jump since May. The Topix fell 0.6 percent as the yen climbed. Standard & Poor s 500 Index futures gained 0.1 percent after the gauge rebounded from a two- month low. New Zealand s dollar slid 0.5 percent today, headed for its worst weekly drop since November. Rubber futures climbed as much as 1.7 percent. China reports on manufacturing tomorrow after private data this week signaled the sector is shrinking, stoking concern over a slowdown in Asia s largest economy and turmoil in emerging markets. Thailand posts trade data today, with elections scheduled for Feb. 2 amid antigovernment unrest. Japan, which has struggled with 15 years of deflation, posted a larger-than estimated gain in consumer prices today, with markets from Seoul to Shanghai closed for the Chinese New Year holidays. 7

Japan Tobacco Inc. rose by the most in 10 months in Tokyo trading after raising its profit forecast and saying it would increase domestic prices by more than some analysts expected.

8 Japan Tobacco Inc. rose by the most in 10 months in Tokyo trading after raising its profit forecast and saying it would increase domestic prices by more than some analysts expected. The maker of Camel, Winston and Mevius cigarettes jumped as much as 6.7 percent, the biggest intraday gain since March 13, to 3,228 yen before trading at 3,159 yen as of 11:03 a.m. local time. Net income will probably increase 23 percent to 423 billion yen ($4.1 billion) in the year ending March 31, the Tokyo-based company said in a statement yesterday. Japan Tobacco has applied to the government to raise prices for most cigarette brands by 10 yen a pack for some brands and 20 yen for others in conjunction with a planned April increase in the country s consumption tax. The company s domestic sales volume growth has been sluggish because of tax increases and rising awareness of illnesses caused by smoking. There was a positive reaction to the 20-yen price increase for Mevius, said Yoshiyasu Okihira, an analyst at SMBC Nikko Securities Inc. Investors had thought the increase would be about 10 yen based on previous media reports. News source: Bloomberg CL00699 Risk Factor: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Disclaimers: 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 in the document is only for illustration purpose and are NOT stock recommendations from the Author or the AMC 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

CONTENTS. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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