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 7, (5.09) (3.83) SENSEX 25, (6.04) (5.03) NSE MIDCAP 13, NSE 500 6, (1.73) 0.09 NIFTY JUNIOR 19, BSE SMALLCAP 11, BSE 200 3, (2.47) (0.85) *DOW JONES 17, (1.18) (1.24) (2.37) *NASDAQ 5, (1.11) NIKKEI 18,790 (1.04) (5.48) HANG SENG 22, (1.99) (6.21) (5.19) SHANGHAI COMP 3, (0.10) BSE OIL & GAS 9, (4.46) (4.23) BSE CAPITAL GOODS 14, (0.75) (7.77) (5.50) BSE AUTO 18, (2.15) (1.97) (1.08) BSE FMCG 7, (1.03) BSE HEALTHCARE 16, BSE TECH 6, BSE IT 11, BSE BANK 19, (1.14) (10.49) (9.52) BSE PSU 6, (0.02) (17.91) (16.45) BSE REALTY 1, (14.33) (12.35) BSE METALS 7, (31.12) (29.48) BSE CONSUMER DURABLES 12,008 (1.01) (3.03) SOURCE : BLOOMBERG * DENOTES WEDNESDAY CLOSE 3

4 SENSEX Index Movers Last Price % Change Over 1 week 1 month YTD 1 year Sesa Sterlite Ltd (57.08) (55.25) Gail India Ltd (18.59) (17.24) Hindalco Industries Ltd (46.04) (43.62) Bharti Airtel Ltd (0.84) (4.10) (4.46) Oil & Natural Gas Corp Ltd (31.43) (32.09) Wipro Ltd (1.41) Sun Pharmaceutical Industries Ltd (4.19) (1.63) HDFC Bank Ltd 1, Bajaj Auto Ltd 2, (0.00) Maruti Suzuki India Ltd 4,594 (0.56) (0.99) SOURCE : BLOOMBERG BSE 200 Index Movers Last Price % Change Over 1 week 1 month YTD 1 year Essar Oil Ltd TV18 Broadcast Ltd Housing Development & Infrastructure Ltd Reliance Infrastructure Ltd (3.59) (1.16) Vedanta Ltd (57.08) (55.25) Vakrangee Ltd 177 (2.59) Titan Co Ltd 351 (2.88) (7.00) (7.86) (5.12) Wockhardt Ltd 1,562 (4.00) (3.75) Bajaj Holdings and Investment Ltd 1,616 (5.71) (3.84) Kaveri Seed Co Ltd 346 (10.53) (19.25) (55.27) (56.15) SOURCE : BLOOMBERG 4

5 SENSEX LEVEL FII and MF Data (Week Ended ) Rs. Crores FII GROSS PUR 18, FII GROSS SELL 16, FII NET 1, FII MONTH T0 DATE NET (3,949.02) MF GROSS PUR 4, MF GROSS SELL 3, MF NET MF MONTH T0 DATE NET 2, SOURCE: SEBI SENSEX WEEKLY ,850 25, , , /21/ /22/ /23/ /24/2015 SOURCE : BLOOMBERG DATE 5

6 Key Developments India: India s benchmark equity gauge headed for a second weekly advance, led by shares of energy producers and auto companies. Coal India Ltd., the world s biggest producer of the fuel, climbed toward a two-week high and Oil & Natural Gas Corp., the most valuable state-owned oil explorer, increased for a fourth day. Mahindra & Mahindra Ltd., a tractor and utility-vehicle maker, halted two days of declines. Indian bond and currency markets are shut for a holiday Thursday, while all financial markets are closed Friday for Christmas. Given the long weekend and the holiday season, there is less interest in the markets, Paras Bothra, a Mumbai-based vice president of equity research at Ashika Stock Broking Ltd., said. Today, the banks are closed and there will be no settlement, thus we can see low volume today. Traders are unwilling to take undue risks. Foreign funds bought a net $92.6 million of Indian stocks on Dec. 22, a fourth day of inflows, capping the longest stretch of purchases since October. The Sensex has fallen 5.9 percent this year, heading for its first annual loss since 2011, and trades at 15.5 times s projected 12-month earnings. India s government plans to change the way it allocates capacity to foreign airlines from a state-negotiated method to an auction process to protect domestic carriers from overseas competition, a person with direct knowledge of the proposal said. Foreign carriers that have already exhausted their seat capacity will need to buy additional capacity through an auction, said the official, who asked not to be named as the plan needs to be approved by Prime Minister Narendra Modi s Cabinet. Currently, the number of seats an overseas airline can fly to India is governed by bilateral agreements between two countries. An auction, instead of handing over the seats without charge through the inter-government agreement, could add to the costs and may lead to higher fares. The price gap to a domestic airline can then be exploited by Indian carriers such as Jet Airways (India) Ltd. and IndiGo. Billionaire Anil Ambani s Reliance Infrastructure Ltd. is seeking to sell its cement assets for an enterprise value of about 50 billion rupees ($757 million) in a deal expected to be announced by year end, people familiar with the matter said. The company is in talks with cement makers as well as private equity firms including Blackstone Group LP and Carlyle Group LP, the people said, asking not to be identified because the talks are private. Reliance expects to get 26 billion rupees from the sale with the buyer taking over 24 billion rupee of debt, one of the people said. Reliance Infrastructure shares rose the most this month. Ambani s group has been announcing deals to sell assets across its companies to pare debt and expand defense manufacturing, its newest business. Reliance Communications Ltd. this month said it s selling phone towers and property in Mumbai. The yield on Reliance Communications 2020 dollar bondsslumped 62 basis points this quarter and its shares jumped 26 percent. Reliance Infrastructure has shortlisted seven potential buyers and seeks to complete the sale by Dec. 31, the company said in an e- mail response to queries. The company will sell cement plants with an annual capacity of 5.6 million tons, according to the . Spokesmen for Carlyle and Blackstone declined to comment. The assets are in Reliance Cement Company Pvt., a wholly owned subsidiary of Reliance Infrastructure that had a total debt of billion rupees on consolidated basis, data compiled by Bloomberg show. It has cement plants in Madhya Pradesh, Uttar Pradesh and Maharashtra, according to information on its website. Westinghouse Electric Co. expects to reach a deal with India by the end of next year to provide at least six nuclear reactors. The Pennsylvania-based company, which is a unit of Toshiba Corp., is in negotiations with India to build AP1000 reactors with a capacity of 1,150 megawatts each in the state of Gujarat, Chief Executive Officer Daniel Roderick said. Progress toward a deal comes as India considers changes to liability laws for nuclear accidents. Indian law allows operators to hold suppliers responsible for accidents, making international equipment makers hesitant to sign deals as the nation seeks to expand nuclear power 6

7 capacity more than 10-fold by As part of a nuclear-liability agreement with the U.S. in January, India plans to set up a 7.5 billion rupee ($113 million) insurance pool to shield operators and suppliers. Recent changes made to the proposed insurance program are encouraging to us, Roderick said. If the U.S. government says India meets international standards for liability law, we are in a position to go forward quickly. India s Department of Atomic Energy may include clauses in contracts with domestic suppliers to spare them from the right to recourse, Sekhar Basu, a secretary with the agency said last month in New Delhi. International: A group of Norske Skogindustrier ASA s secured bondholders sent management a new proposal to restructure the company s debt, countering the terms of an offer announced on Tuesday, according to a document seen by Bloomberg. Rothschild, which is advising 62 percent of holders of 290 million euros ($317 million) of bonds due December 2019, is asking management to consider a plan to limit obligations that pay interest in cash to a maximum of five times earnings before interest, taxes, depreciation and amortization without necessarily diluting shareholders, the document says. The unprofitable Norwegian newsprint producer is seeking to restructure its approximately $1 billion of debt as it closes in on its ninth year of declining sales. The company agreed this week on terms of an exchange offer with GSO Capital Partners and Cyrus Capital Partners LP, which own some of its unsecured bonds due in the next two years and 11.5 percent of its shares. The proposal by GSO, a unit of Blackstone Group LP, and Cyrus would have Norske Skog offer to exchange bonds due in 2016 and 2017 with qualified securitization financing notes due in 2026, new unsecured securities due in June 2019 and December 2026, and perpetual notes, and it would give holders the chance to subscribe to as much as 15 million euros of the papermaker s shares at 2.24 kroner (26 cents) each, according to a statement on Tuesday. The company has about million shares outstanding, and the stock closed Wednesday at 2.87 kroner. GSO s plan would extend bonds long enough to avoid triggering payouts on credit-default swap contracts maturing within the next two years, people with knowledge of the matter said. If it defaults before then, GSO will not only forgo its premiums but will also have to pay those it sold the swaps to. The rival group of secured bondholders is trying to block GSO s plans. The Rothschild group includes BlueCrest Capital Management, Marathon Asset Management and Sampo Oyj, people familiar with the matter said in October. It is proposing to swap some of the bonds into payment-in-kind debt and notes that the company can convert into equity if the business deteriorates. The company will hold an extraordinary general meeting to discuss the exchange offer and the replacement of three board members on Jan. 6 as requested by GSO and Cyrus this month. Rothschild is asking management to share the terms of its plan with shareholders before the meeting, according to the document. If investors are bracing for their first annual loss on U.S. high-yield bonds since 2008, spare a thought for Japanese moms and pops that put their money into funds that bought the debt and mixed it with bets on emerging currencies. It s proving to be a toxic cocktail. High-yield funds tied to the Brazilian real and sold to investors in Japan have lost 28 percent to 31 percent this year. That made them the 10 worst-performing Japanese mutual funds that buy speculative-grade debt, with a combined 237 billion yen ($1.97 billion) of assets as of Dec. 22. There are more than 1 trillion yen of high-yield mutual bond funds in Japan tied to currency wagers, which seek to lift returns by boosting risk, according to calculations by Bloomberg. Losses on so-called double-decker or layered funds highlight the dangers Japanese investors face as they venture into riskier investments in search of higher returns with the Bank of Japan pushing ahead with asset purchases. Japan s pension funds and life insurers are also buying more overseas debt as they seek to meet payouts to the fastest aging population in the developed world with local sovereign bonds to three years paying negative yields. People look in the paper and see advertisements with yields of 10 percent 7

8 and 11 percent, and think it s a good idea to buy because they don t get any yield in Japan, said Edwin Merner, the president of Atlantis Investment Research Corp. in Tokyo. We can laugh but if somebody put money in, they are crying. Federal Reserve Chair Janet Yellen doesn t need to worry about the lack of foreign inflation in 2016 if Goldman Sachs Group Inc. economists are right. While HSBC Holdings Plc recently warned overseas inflation will limit the Fed s ability to raise interest rates next year, Goldman Sachs is arguing otherwise in predicting Yellen and colleagues will lift their benchmark four times. There is little evidence of a broader global deflationary force at work that extends beyond the impact of commodity-price declines and dollar appreciation, David Mericle and Daan Struyven told clients in a report on Wednesday. The Goldman Sachs duo estimated how much global inflation -- stripped of energy and food prices -- had an impact on each member of the Organization for Cooperation and Development. For the U.S., they found no evidence that international inflation has a statistically meaningful effect. The result shouldn t be a surprise given that 70 percent of the items in the U.S. s core inflation basket are services that are largely immune to global pricing pressures, Mericle and Struyven said. Although import prices can have an effect on inflation, that s typically because of currency fluctuations rather than because of weakness elsewhere in the world, they said. Such conclusions leave Goldman Sachs predicting a moderate acceleration inflation in 2016 as the economy reaches full capacity. HSBC sees just two rate increases, with Janet Henry, its chief global economist, recently writing that the gap between actual global growth and its potential rate will widen next year, dragging on U.S. inflation. Fed policy will continue to be steered by developments elsewhere, Henry said in her report. The Goldman Sachs economists question the use of the so-called output gap, saying it does not have a statistically robust effect. Not all will escape the pull of foreign forces. Iceland, Israel, the Czech Republic and South Korea will all be affected by inflation elsewhere because trade accounts for a large share of their gross domestic product, Goldman Sachs said. News source: Bloomberg CL02463 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