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 9,964 (1.20) SENSEX 31,922 (1.09) NSE MIDCAP 18,394 (2.94) NSE 500 8,738 (1.68) NIFTY JUNIOR 27,947 (2.90) BSE SMALLCAP 16,293 (2.37) BSE 200 4,355 (1.66) *DOW JONES 22, *NASDAQ 6,423 (0.40) NIKKEI 20, HANG SENG 27, SHANGHAI COMP 3,353 (0.03) BSE OIL & GAS 14,941 (1.90) BSE CAPITAL GOODS 17,746 (2.27) BSE AUTO 24,361 (0.50) BSE FMCG 10,025 (1.10) (0.21) BSE HEALTHCARE 13, (5.86) (16.85) BSE TECH 5,670 (0.20) (0.41) BSE IT 10,064 (0.06) 1.88 (1.10) (2.61) BSE BANK 27,399 (2.07) BSE PSU 8,402 (2.64) (0.30) BSE REALTY 2,072 (5.39) BSE METALS 13,338 (4.57) BSE CONSUMER DURABLES 17,555 (2.92) SOURCE : BLOOMBERG * DENOTES THURSDAY CLOSE 3

4 SENSEX Index Movers Last Price % Change Over 1 week 1 month YTD 1 year Dr Reddy's Laboratories Ltd 2, (19.68) (21.96) Cipla Ltd/India (4.13) Wipro Ltd Tata Motors Ltd (12.76) (26.35) Housing Development Finance Corp 1, Tata Steel Ltd 655 (3.64) State Bank of India 262 (3.73) (4.45) Tata Power Co Ltd 81 (4.62) ICICI Bank Ltd 277 (5.09) (5.57) Hindalco Industries Ltd 231 (6.43) SOURCE : BLOOMBERG BSE 200 Index Movers Last Price % Change Over 1 week 1 month YTD 1 year Divi's Laboratories Ltd (27.07) Dr Reddy's Laboratories Ltd 2, (19.68) (21.96) Bharti Infratel Ltd Glenmark Pharmaceuticals Ltd (29.34) (32.47) Cipla Ltd/India Sun Pharma Advanced Research Co Ltd 378 (9.74) (9.04) Jet Airways India Ltd 509 (10.04) (8.52) (5.49) Central Bank of India 82 (10.17) (1.26) (17.35) Info Edge India Ltd 1,060 (10.69) Reliance Capital Ltd 662 (10.74) SOURCE : BLOOMBERG 4

5 SENSEX LEVEL September 18, 2017 to September 22, 2017 FII and MF Data (Week Ended ) Rs. Crores FII GROSS PUR 28, FII GROSS SELL 30, FII NET (2,288.90) FII MONTH T0 DATE NET (4,442.89) MF GROSS PUR 9, MF GROSS SELL 6, MF NET 2, MF MONTH T0 DATE NET 6, SOURCE: SEBI SENSEX WEEKLY , ,424 32,401 32, , /18/2017 9/19/2017 9/20/2017 9/21/2017 9/22/2017 SOURCE : BLOOMBERG DATE 5

6 Key Developments India: India s government is planning to allow foreign investors to increase purchases of the nation s corporate debt. The cap on foreign portfolio investments may be raised by $5 billion to $10 billion. Overseas money managers, attracted by strong returns, have already bought more than 99 percent of all the Indian sovereign and corporate notes they re allowed to purchase. The prospect of a return to world-beating economic growth following a tax overhaul by Prime Minister Narendra Modi is attracting credit and equity investors. Foreigners own about 7.5 percent of India s government and corporate debt, compared with 30 percent in Indonesia and Malaysia, Aberdeen Asset has estimated. China has also stepped up efforts to draw overseas investors to its debt market, starting a trading link with Hong Kong in July. Finance Ministry spokesman D.S. Malik wasn t immediately available for comment. In July, foreigners bid for billion rupees ($1.6 billion) of corporate debt quotas, exceeding the billion rupee target and taking inflows to near the overall cap of $51 billion. That sale was the first for corporate debt after the market regulator in 2012 allowed global funds to invest without seeking approval until overall holdings touched 90 percent of the cap, a limit that was raised to 95 percent in July. The increase in the quotas is likely to be staggered. Masala bonds -- notes issued outside India but denominated in rupees -- are likely not be included in the quota and may have a separate limit, adding both the central bank and the finance ministry have agreed for a carve out. The rupee s status as one of the most-loved Asian currencies is being tested by India s faltering economy and signs that its markets are overheating. The currency slumped to its lowest since early April on Friday, weakening for a second day, amid worries that public finances will worsen as Prime Minister Narendra Modi s government considers measures to boost growth after last quarter s shock slowdown. Foreigners are dumping stocks at the fastest pace this year as weak earnings fail to justify the boom in share prices. The risk for the rupee is clearly to the downside for the next few months, said Nizam Idris, Singaporebased head of foreign-exchange and fixed-income strategy at Macquarie Bank Ltd. It has gone a little flat as the Modi-motivated rally fades. This talk of stimulus, which may put to question commitments to fiscal consolidation, in itself reflects government concern that growth is going off track. That s a turnaround for the rupee, which was one of Asia s best-performing currencies in the first half of Its 4.4 percent gain this year has been fueled by global funds, drawn by the region s highest bond yields, a sound economy and optimism that Modi will initiate more policy changes after implementing a nationwide sales levy -- touted as independent India s biggest tax reform. NatWest Markets Ltd. is cautious on the rupee going into the fourth quarter as rising inflation and the widest current-account gap in four years blur the economic outlook, while JPMorgan Chase & Co. said in a recent report that the risk-reward around owning the currency is not as compelling compared with other regional exchange rates. Foreign funds have sold a net $761.6 million of Indian stocks in September, after pulling out $1.73 billion last month, which made for the biggest withdrawal since November. That s at a time when India s restrictions on overseas investment in its bonds are stalling inflows into debt. Indian shares declined, with the benchmark index pulling back from a near record close on Monday; amid signs equities gains this year have outpaced the scope for returns. The S&P BSE Sensex fell 0.7 percent to 32, as of 10:02 a.m. in Mumbai, erasing the week s advance. The NSE Nifty 50 Index fell 0.9 percent after closing at an all-time high on Monday. Foreign investors sold Indian equities worth $762 million this month, unloading shares for a third straight day through Wednesday. Foreigners are dumping stocks at the fastest pace this year as weak earnings fail to justify the boom in share prices, while 6

7 economic growth has been slowing for five quarters. Investors are taking a cautious stance with valuations near a 10-year high, said Rajendra Wadher, director at PRB Securities Ltd. There s a concern that India s economic outlook may not be as robust as predicted. India s equities have been among the best performers in Asia this year, with the Sensex trading at 18.7 times projected 12-month earnings, close to its most expensive level since December India s much-vaunted demographic dividend has a weak spot -- very few of the nation s workers are saving for retirement. That leaves Asia s third-largest economy sitting on a "ticking pension time bomb", according to Tarun Ramadorai, author of a report on household finances that was commissioned by the Reserve Bank of India and other financial sector regulators. "The young, working population is not saving enough," Ramadorai, who is a professor of financial economics at London s Imperial College told Bloomberg News. "India needs to fix the problem now when the sun is shining. Otherwise, the demographic dividend can become a demographic concern." Over the next two decades, India s young population is expected to spur growth and demand in the $2 trillion economy. The International Monetary Fund expects India to overtake Germany as the world s fourth-largest economy in the next five years, with the demographic dividend expected to add up to 2 percentage points per annum to India s per capita GDP growth over the next two decades. About a quarter of the projected increase in the global population aged years between 2010 and 2040 will occur in India, the IMF says. The bad news is that only 7.4 percent of the working age population is covered under a pension program. That compares with 65 percent for Germany and 31 percent for Brazil, another major emerging market economy, according to the World Economic Forum s report on Global Human Capital. Part of the reason for the low usage of pension funds is India s large informal sector and a general lack of a variety of retirement programs in the financial sector. But the Ramadorai committee also found more than 50 percent of Indian households plan to depend on their children for support during old age, followed by their savings or their business. Less than 10 percent indicated they would depend on a government-run pension fund or an employee provident fund. International: Uber Technologies Inc. s license to operate in London was revoked, a surprise decision that will affect the 3.5 million people and 40,000 drivers who use the app in the city. The city s transportation regulator, Transport for London, said the license will expire on Sept. 30. Regulators said it denied the license because Uber s "approach and conduct demonstrate a lack of corporate responsibility." City officials cited Uber s use of a secret software tool called "Greyball" that the company built to avoid regulators. Uber was also faulted for not properly reporting crimes and obtaining medical certificates. "TFL has concluded that Uber London Limited is not fit and proper to hold a private hire operator license," the regulator. Uber has 21 days to lodge an appeal. The decision is a victory for the city s traditional black cab industry, which has been hurt by the proliferation of Uber drivers and has pushed for tighter regulation of the San Franciscobased ride-hailing service. Taxi drivers must go through extensive testing before receiving a license, while Uber drivers have fewer requirements. London s decision adds to the problems facing Dara Khosrowshahi, Uber s new CEO, who is juggling a host of controversies ranging from a lawsuit alleging the company stole self-driving car technology from Alphabet Inc., to a bribery investigation in Asia, to a boorish company culture. General Electric Co. is nearing an agreement to sell its industrial-solutions business to ABB Ltd. in a deal valued at $2.5 billion to $3 billion, people with knowledge of the matter said. The American and Swiss companies are likely to announce an agreement by next week. ABB doesn t comment on rumors and speculation, a spokesman said. A representative of GE didn t immediately reply to a request for comment. The decision caps a months-long bidding process after GE put the electrical-products unit up for sale in December. The two companies have been finalizing contractual agreements for the supply and services of future equipment and talks could still be delayed or fall apart. The sale is poised to be the first major portfolio change under GE s new chief executive, John Flannery, who took the reins Aug. 1. Under former CEO Jeffrey Immelt, the Boston-based company tilted toward high-margin equipment manufacturing in 7

8 recent years while jettisoning most finance and consumer operations. Flannery, who handled mergers and acquisitions for GE in 2013 and 2014, is looking to strengthen operations and boost a lagging stock price as shareholder Trian Fund Management pressures the company to improve performance. GE agreed in March to deepen its cost-cut targets after consulting with Trian, an activist investment firm co-founded by Nelson Peltz. Flannery has said he ll lay out his plans for GE and the portfolio in November. The developer of a liquefied natural gas export terminal in Oregon that has already twice been denied permits by U.S. regulators is giving it another shot. Veresen Inc. said late Thursday that it filed another application with the Federal Energy Regulatory Commission for the $10 billion Jordan Cove LNG project that would ship gas to Asia. The agency denied the Calgary-based company approval last year, saying it failed to prove the terminal was needed. As part of its latest request, the company proposed route changes for a pipeline that would feed the terminal and eliminated plans for a power plant. Veresen is making a third attempt just as the Trump administration promotes LNG exports as a means of establishing America s dominance in global energy markets and creating jobs. Gary Cohn, the director of the White House s National Economic Council, referenced the Northwest terminal during a talk in April, saying the government would step up approvals for such projects. It s among the dozens proposed along the coasts of the U.S. to send shale gas overseas. Veresen said the project would create more than 200 permanent jobs and has said it would lower the U.S. current account deficit with Japan, one that President Donald Trump has complained about. In February, the company said it was in advanced negotiations with a third LNG buyer in Japan and those preliminary agreements with Jera Co., a joint venture between Tokyo Electric Power Co. Holdings Inc. and Chubu Electric Power Co., and Itochu Corporation. were being finalized. The application for Jordan Cove comes just weeks after Trump filled seats on the Federal Energy Regulatory Commission, restoring the quorum the agency needs to approve LNG projects and major natural gas pipelines. NEWS SOURCE: BLOOMBERG CL04850 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. This material provides general information on financial planning and comparisons made are only for illustration purposes. The data/ information used/disclosed in this material is only for information purposes and not guaranteeing / indicating any returns. 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