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, (0.74) SENSEX 29, (1.19) NSE MIDCAP 13, (0.23) NSE 500 7, (0.26) NIFTY JUNIOR 19, BSE SMALLCAP 11,320 (0.61) (0.92) BSE 200 3, (0.41) *DOW JONES 18, *NASDAQ 4, NIKKEI 18, HANG SENG 24,823 (0.05) SHANGHAI COMP 3, (1.27) BSE OIL & GAS 9, (3.07) (2.96) BSE CAPITAL GOODS 17, BSE AUTO 19, (2.88) BSE FMCG 8, BSE HEALTHCARE 15,540 (0.93) (0.13) BSE TECH 6, BSE IT 11, BSE BANK 21, (7.03) BSE PSU 8, (2.60) (1.19) BSE REALTY 1, BSE METALS 10, (1.49) BSE CONSUMER DURABLES 10, SOURCE : BLOOMBERG * DENOTES THURSDAY CLOSE 3

4 SENSEX Index Movers Last Price % Change Over 1 week 1 month YTD 1 year NTPC Ltd Larsen & Toubro Ltd 1, Axis Bank Ltd (4.25) Coal India Ltd Housing Development Finance Corp 1, HDFC Bank Ltd 1,054 (1.16) (1.84) Bajaj Auto Ltd 2,150 (1.57) (11.05) (11.81) Dr Reddy's Laboratories Ltd 3,275 (3.14) Sun Pharmaceutical Industries Ltd 879 (3.25) (3.79) Tata Steel Ltd 351 (4.36) (11.81) (12.09) 0.52 SOURCE : BLOOMBERG BSE 200 Index Movers Last Price % Change Over 1 week 1 month YTD 1 year Unitech Ltd Indian Infotech & Software Ltd (10.98) (91.50) Religare Enterprises Ltd Housing Development & Infrastructure Ltd NTPC Ltd Shriram Transport Finance Co Ltd 1,155 (4.61) Thermax Ltd 1,147 (5.39) TTK Prestige Ltd 3,032 (5.79) (12.92) (15.35) 4.80 Torrent Pharmaceuticals Ltd 1,048 (6.03) (11.70) (7.41) Hathway Cables and Datacom Ltd 52 (14.76) (18.36) (25.31) 7.14 SOURCE : BLOOMBERG 4

5 SENSEX LEVEL FII and MF Data (Week Ended ) Rs. Crores FII GROSS PUR FII GROSS SELL 8.85 FII NET FII MONTH T0 DATE NET 5, MF GROSS PUR 3, MF GROSS SELL 3, MF NET MF MONTH T0 DATE NET 3, SOURCE : SEBI SENSEX WEEKLY , ,975 29,005 29, , /23/2015 2/24/2015 2/25/2015 2/26/2015 2/27/2015 SOURCE : BLOOMBERG DATE 5

6 Key Developments India: Optimism Prime Minister Narendra Modi will deliver a budget strong on construction and economic change is spurring the best start to a year for Indian dollar bond sales. Delhi International Airport Ltd., the operator of India s busiest airport, and Reliance Industries Ltd., which runs the world s largest refinery, lead $2.6 billion of offerings since Dec. 31, more than double a year earlier, data compiled by Bloomberg show. Yields on U.S. currency notes sold by companies in India touched 4.28 percent on Thursday, the lowest in at least a decade, JPMorgan Chase & Co. indexes show. Positive surprises when Modi s government delivers its first annual budget tomorrow could spur a virtuous circle of stronger investment, faster economic growth, rating upgrades and deficit reduction, Bloomberg economist Tamara Henderson wrote in a Feb. 25 note. India needs to spend about $1 trillion on highways, harbors and power plants between 2012 and 2017, double the previous five years, to better compete with China, whose economy is five times larger. There s an upbeat mood across corporate India, A.S. Thiyaga Rajan, a Singapore-based senior managing director at Aquarius Investment Advisors Pte, which has about $400 million of funds under management, said. The intention and conviction to make investments is higher than a year ago. India s rupee headed for its biggest weekly gain in a month after the Federal Reserve signaled it won t raise U.S. interest rates in the first half. Fed Chair Janet Yellen told U.S. lawmakers this week that inflation and wage growth remain too low to warrant raising rates at the central bank s next meeting and the Fed s timetable is flexible. Higher U.S. rates will damp demand for assets in emerging markets like India, which has seen global funds pour $8.8 billion into local debt and equities this year. Indian bonds fell this week on concern the government will project an increase in borrowing in Saturday s federal budget. Yellen s comments on interest rates gave a breather to the Indian currency market, said Sandeep Kanihama, a currency analyst at Religare Commodities Ltd. in Noida, near New Delhi. Investors are keenly awaiting Saturday s budget. The rupee climbed 0.7 percent from Feb. 20 to as of 11:25 a.m. in Mumbai, according to prices from local banks compiled by Bloomberg. That s the biggest gain since the week ended Jan. 23. The currency has risen 0.1 percent this month, taking its 2015 gain to 2 percent, the best in Asia. It fell 0.1 percent Friday. The rupee is expected to outperform its peers in emerging markets, Goldman Sachs Group Inc. analysts including Kamakshya Trivedi wrote in a report today. The yield on sovereign bonds due July 2024 rose four basis points, or 0.04 percentage points, this week to 7.74 percent, according to prices from the central bank s trading system. It was steady Friday. Debt sales by India s government may rise to a record 6.3 trillion rupees in the year starting April 1, according to the median of 10 estimates in a Bloomberg News survey this week. In the 2015 railway budget, Minister Suresh Prabhu tried to address issues hampering success of the Railways and announced aggressive plans, which will help the Railways regain its lost glory and accelerate GDP growth. The following are the budget's key takeaways: Focus on governance and transparency a game-changer Prabhu has focused on governance and reiterated transparency in recruitment as well as procurement. He has tried to decentralize decisionmaking and making authorities accountable to fast-track implementing the project. The Minister has appealed to MPs, state governments and local bodies to help with land acquisition and project implementation. Plan outlay increased by 52% YoY in FY16 seems aggressive The Minister chalked out an aggressive plan outlay for FY16, which was increased by 52% YoY to INR 1,000bn. He plans to reduce dependence on budgetary support (down 13% YoY) and try to tap into new sources of funds, including JV with PSUs, partnering with multilateral & bi-lateral organizations, and the PPP route. Indian Railways will increase market borrowings (up 47% YoY) and try to raise internal generation to fund expansion plans. We believe new sources of revenue may take time, but will provide sustainability long term. Cleanliness, safety, capacity expansion, self sustaining top focus Prabhu focused on increasing customer satisfaction by raising service quality and cleanliness. The capex plan includes provisions for safety, such as eliminating manned & unmanned crossings and a proper signaling system. Railways will also increase track length by 20% from 114,000km to 6

7 138,000km and grow annual freight carrying capacity from 1.0bn tonnes to 1.5bn tonnes within the next five years. The Minister plans to make railways financially self-sustaining by improving operating efficiency, and proper project selection & execution. The total capex estimate for the next five years is at ~INR 8,560bn. Raise freight rates, not passenger fares populist move Freight rates, which are among the highest in the world, have been increased further by revising class rates and distance slabs, thus denying any benefits of lower diesel prices. Freight traffic constitutes ~66% of total railway revenue. The Minister has not increased passenger fares in the budget, thereby increasing subsidies burden. During FY13, railways loss on passenger fare per km was 23 paise. International: Years ago, when the technology platforms many banks still use were built, no one thought to allow for the risk of negative interest rates. That omission is now proving problematic for the financial industry in Denmark, where the central bank s battle against currency speculators has forced it to drive the benchmark deposit rate to a record low of minus 0.75 percent. The monetary climate, which punishes savers and rewards borrowers, has challenged a number of assumptions at banks ranging from taxation to how quickly market rates should feed through to customers. In response, Denmark s financial industry and government have created a committee which convened for the first time this month to discuss what banks should do when interest rates drop below zero. This isn t the first time central bank rates have turned negative and it may happen again, so the committee needs to complete its work even if rates normalize, Karsten Beltoft, head of the Danish Mortgage Banks Federation, said in an interview. Aside from the mortgage industry, the committee includes representatives from the central bank, the Danish Bankers Association, the Business Ministry and the Financial Supervisory Authority. Denmark s financial industry is four times its gross domestic product. That ratio grows to six when including insurers, International Monetary Fund calculations show. Denmark is also home to Europe s biggest mortgage-backed covered-bond industry, one of the main channels through which offshore debt investors can hold krone-denominated assets. Kobalt, an independent music publisher that works with Paul McCartney and Sam Smith, raised $60 million from investors including Google Ventures and Michael Dell. Kobalt collects royalties and offers other services such as licensing management and digital marketing to its clients, who include Beck, Max Martin, Kelly Clarkson and Skrillex, the London-based company said Friday in a statement. The new round, adding to $66 million already raised by Kobalt, will be used to develop new technologies to help musicians profit from their work. Collecting fees has become more complicated since online services such as Google Inc. s YouTube and Spotify Ltd. have become more popular. The music industry is going through dynamic changes, Bill Maris, managing partner at Google Ventures, said in a statement. Kobalt will be instrumental in shaping its future positively for all constituents, starting with artists. Kobalt, founded in 2000 by Chief Executive Officer Willard Ahdritz, is the second largest publisher in the music industry, according to Billboard, trailing Sony/ATV Music Publishing LLC. The yuan dropped to the weakest level in more than two years as China s central bank cut its reference rate by the most in a month. The currency fell as much as 0.18 percent to a dollar in Shanghai, the lowest since October It traded within 0.03 percent of the lower end of its permitted trading band for the fifth day in a row, a sign it would depreciate more sharply if policy makers loosened control of the exchange rate. The prospect of higher U.S. interest rates boosted the dollar against all 24 emerging-market currencies in the past six months and the yuan s 2 percent decline compares with slides of 23 percent for Brazil s real and 41 percent for the Russian ruble, the two worst performers. China is limiting depreciation to contain the cost of repaying foreign debt and to prevent an exodus of capital that would hamper efforts to revive growth in the world s second-largest economy. The bias is towards easing but you cannot do it too abruptly, especially on the currency side, said Suan Teck Kin, an economist at United Overseas Bank Ltd. in Singapore. That would cause capital outflows and make conditions even worse. The yuan fell 0.17 percent to a dollar as of 12:12 p.m. in Shanghai, China Foreign Exchange Trade System prices show. The central bank cut its reference rate by 0.16 percent to after the Bloomberg Dollar Spot Index, a gauge of the currency versus 10 major peers, climbed 0.9 percent yesterday. The exchange rate is allowed to diverge from the fixing by a maximum 2 percent. The offshore yuan dropped 0.35 percent to in Hong Kong, according to data compiled by Bloomberg. It fell 0.07 percent this month, while the onshore spot rate lost 0.28 percent. 7

8 Emerging-market stocks slid from a three-month high and currencies weakened amid speculation that rising U.S. inflation will spur interest-rate increases. BYD Co., a Chinese manufacturer of electric cars, sank 2.9 percent in Hong Kong after reporting a drop in profits, while Malaysia s Felda Global Ventures Holdings Bhd. had a record weekly plunge. Philippine equities fell for a second day after reaching a record. Malaysia s ringgit lost 0.7 percent versus the dollar. China s yuan slid to a two-year low. Indian shares rose 0.6 percent before the government s budget tomorrow. The MSCI Emerging Markets Index declined 0.2 percent to at 1:10 p.m. in Hong Kong, trimming gains this month to 3.2 percent. The gauge is headed for the steepest monthly increase since May, driving valuations to a 2010 high. A bigger-thanforecast increase in U.S. core inflation sent the dollar surging Thursday. The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major currencies, is headed for an eighth monthly advance. Some investors are getting more cautious in trading, especially on riskier assets, said Tran Thang Long, a research manager at BIDV Securities JSC. The developing-nation gauge has risen 3.8 percent this year and trades at 11.9 times projected 12-month earnings, data compiled by Bloomberg show. The MSCI World Index has also gained 3.8 percent in 2015 and is valued at a multiple of News source: Bloomberg CL01638 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 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