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, SENSEX 27, NSE MIDCAP 11, NSE 500 6, NIFTY JUNIOR 17, BSE SMALLCAP 11, BSE 200 3, *DOW JONES 17,049 (0.52) *NASDAQ 4, NIKKEI 15, (2.11) HANG SENG 24,595 (2.55) (0.38) SHANGHAI COMP 2, BSE OIL & GAS 11,361 (0.83) BSE CAPITAL GOODS 15,375 (0.30) BSE AUTO 17, BSE FMCG 7, BSE HEALTHCARE 13, BSE TECH 5,792 (0.00) BSE IT 10,339 (0.64) BSE BANK 18, BSE PSU 8,291 (0.08) BSE REALTY 1,758 (0.44) (6.29) BSE METALS 12,524 (0.08) (1.34) BSE CONSUMER DURABLES 9, * DENOTES THURSDAY CLOSE 3

4 SENSEX Index Movers Last Price % Change Over 1 week 1 month YTD 1 year Cipla Ltd/India State Bank of India 2, Sesa Sterlite Ltd Gail India Ltd Hindustan Unilever Ltd Hero MotoCorp Ltd 2,757 (2.44) Housing Development Finance Corp 1,050 (2.82) (5.92) NTPC Ltd 138 (3.13) (1.08) 0.84 (0.79) Coal India Ltd 358 (5.32) (1.76) Sun Pharmaceutical Industries Ltd 806 (6.63) BSE 200 Index Movers Last Price % Change Over 1 week 1 month YTD 1 year Bhushan Steel Ltd (24.08) (71.92) (71.74) Wockhardt Ltd Torrent Power Ltd MRF Ltd 31, Info Edge (India) Ltd Jaiprakash Associates Ltd 36 (5.84) (39.78) (34.86) (7.43) Sun Pharmaceutical Industries Ltd 806 (6.63) Ranbaxy Laboratories Ltd 610 (7.02) Jammu & Kashmir Bank Ltd 151 (10.33) (4.07) Indian Infotech & Software Ltd 2 (16.49) (42.04) (90.53) (93.96) 4

5 SENSEX LEVEL FII and MF Data (Week Ended ) Rs. Crores FII GROSS PUR 19, FII GROSS SELL 15, FII NET 3, FII MONTH T0 DATE NET 2, MF GROSS PUR 2, MF GROSS SELL 2, MF NET (422.80) MF MONTH T0 DATE NET (480.40) SOURCE : SEBI SENSEX WEEKLY , , ,027 27,057 26,996 27, /5/2014 9/8/2014 9/9/2014 9/10/2014 9/11/2014 9/12/2014 DATE 5

6 Key Developments India : Just four months ago, hedge fund manager Supreeth Shankarghal predicted the only way for India stocks to go was up. Now that almost everyone agrees, he says it s time to sell. The manager of $100 million in options at QF Assets Ltd. In Bangalore, whose call in May preceded a 13 percent rally in the S&P BSE Sensex, says stock investors are underestimating risks after valuations rose to a 15 percent premium over the three- year average. India is the only one of 12 major markets where the stock index rise to a record this year and the cost of using options to protect against losses slumped to an all-time low. India skeptics like Shankarghal are becoming harder to find as foreign and local investors pile into equities, analysts predict further gains and even Jeffrey Gundlach, the U.S. bond fund manager at Double Line Capital LP, says stocks in Mumbai are the most attractive worldwide. While bulls point to prospects for faster growth after Prime Minister Narendra Modi won the biggest election victory in three decades in May, Shankarghal says the combination of expensive valuations and reduced U.S. monetary stimulus will spur losses. A unit of Gateway Distriparks starts trading on BSE at rupees vs IPO price of 47 rupees apiece. Starts trading at rupees on NSE Stock climbs as high as rupees; total 8.62m shares traded on both exchanges Co. got bids for ~1.94b shares vs 32.55m offered at the end of sale on last day: NSE website NOTE: Co. raised ~2b rupees selling 42m shares; got demand ~59.8x shares offered Snowman raised 444m rupees from anchor investors selling 9.45m shares at 47 rupees each before IPO Gateway Distriparks owns 54.1% stake in co.; Norwest Venture Partners VII-A Mauritius 10.3%, IFC 9.27% and Japan-based Mitsubishi Corporation hold 9.4% in post-issue equity India has eased rules on sales of notes that count toward a bank s capital and cushion against losses as soured loans surge in Asia s third-biggest economy. Reserve Bank of India Governor Raghuram Rajan made Basel III-compliant bonds more attractive on Sept. 1 by letting individual investors buy, shortening the minimum maturity to five years and reducing potential for losses. Moody s Investors Service said the changes are credit positive. That may make it easier to achieve the RBI s target for some $45 billion of such debt by Indian banks have sold the equivalent of $574 million of Basel III notes since April 1, lagging both the targeted pace and the $26.3 billion in similar securities sold by banks in China this fiscal year, according to data compiled by Bloomberg. Bad debt in India soared to an eight-year high at 4.2 percent of overall loans in 2013, highlighting the risk of defaults in an economy growing near the slowest pace in a decade. India s rupee headed for the biggest weekly drop in six on concern an improving U.S. economy will spur the Federal Reserve to raise interest rates sooner than planned, reducing the allure of emerging-market assets. Fed officials led by Chair Janet Yellen next meet Sept The dollar has rallied in the past four weeks as U.S. economic reports boosted speculation the central bank will act on borrowing costs sooner than estimated while continuing to pare its record bond purchases. India will release data on consumer prices and industrial production later today. Asian currencies, including the rupee, have been weighed down by the overall strength seen in the dollar, Naveen Raghuvanshi, a Mumbai-based currency trader at DCB Bank Ltd., said. Investors in India will keenly watch the inflation and factory output numbers for cues. The rupee declined 0.9 percent this week, the most since the period ended Aug. 1, to per dollar as of 9:49 a.m. in Mumbai, prices from local banks compiled by Bloomberg show. International : South Korea s won and Malaysia s ringgit lead most Asian currencies lower as Bloomberg Dollar Spot Index gains for fifth day; sovereign bonds in Australia retreat while interest-rate swaps rise in Singapore. 6

7 Yuan slips as PBOC weakens reference rate; China s aggregate financing rebounds from post-gfc low, reaching 957.4b yuan, while missing Bloomberg forecast 1.14t yuan; new loans were in line with estimate; trust loans fell by most in nearly 4 years; conditions for interest-rate cut are not ripe, says front-page commentary in state-run China Securities Journal Yen extends 6-year low; BOJ Governor Kuroda says it s not time to consider more action as prices are on track, damping speculation of further stimulus; Abe remains neutral on sales-tax decision, says Economic Minister Amari Treasuries fall for seventh session, with yield on 10-year rising 1 bp to 2.565% in Asian trading; U.S. data today will probably show Aug. retail sales climbed 0.6% on month, halting a slide since April. China s broadest measure of new credit trailed analyst estimates in August, adding to the government s challenge to meet its economic-growth target amid a slumping property market and a pullback in manufacturing. Aggregate financing was billion yuan ($156 billion), the People s Bank of China said today in Beijing, compared with the trillion yuan median estimate of economists surveyed by Bloomberg. New localcurrency loans were billion Yuan. Today s report adds to evidence the economy is losing steam after July aggregate financing slumped and recent data showed moderation in manufacturing and a drop in imports. Premier Li Keqiang this month said some volatility in growth is inevitable and the government will stick with targeted policies. Banks are reluctant to lend because there aren t enough good projects, said Dong Tao, chief regional economist for Asia excluding Japan at Credit Suisse Group AG in Hong Kong. That s a real headache. Besides political pressure to lend, you have to give the banks a sweeter deal. In the next couple of months, a cut in the reserve-requirement ratio or the loan- deposit ratio is quite likely. Emerging-market stocks headed for the biggest weekly drop since March after Chinese lending data trailed estimates and investors speculated that U.S. policy makers will raise interest rates faster than anticipated. Citic Ltd. sank 4.1 percent in Hong Kong after the city s securities regulator sued the company. Cnooc Ltd. led energy stocks lower as crude oil prices headed for a second weekly drop. Largan Precision Co. tumbled 6.3 percent in Taipei after CIMB Group Holdings Bhd. cut its price target. South Korea s won and the Philippines peso weakened 0.3 percent versus the dollar. The MSCI Emerging Markets Index slid 0.2 percent to 1, at 1.30 p.m. in Hong Kong, taking its losses this week to 2.7 percent, poised for the first drop in five weeks. China s broadest measure of new credit missed estimates in August, adding to the government s challenge to meet its economic-growth target. The dollar headed for its biggest weekly gain versus major peers since November as investors weighed prospects for higher rates before the Federal Reserve meets next week. In the tug-of-war between investor optimism and analyst skepticism in Europe, the advantage is going to the equity bulls. Analysts who raised profit estimates for European companies exceeded those cutting them this month for the first time since April 2012, a sign of optimism after corporate income fell in two of the last three years. A revision index compiled weekly by Citigroup Inc. turned positive on Sept. 5 after the European Central Bank unexpectedly cut interest rates and announced a plan to buy securities. It s good to finally see revisions improve as analysts feed the lower euro into their forecast models, said Lars Kreckel, a London-based global equity strategist at Legal & General Investment Management. With the ECB becoming more proactive, it seems everything is coming into place for a positive story. News source: Bloomberg CL01266 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 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. 7