HINDUJA BANK (SWITZERLAND) LTD

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1 HINDUJA BANK (SWITZERLAND) LTD BUILDING WEALTH, ENABLING ENTERPRISE July 22, 2013 DAILY MARKET COMMENTS INDIA SUMMARY Key benchmark indices provisionally closed near the flat line after witnessing intraday volatility. Engineering & construction major L&T tumbled over 7% after reporting weak Q1 results. Weak Q1 results from L&T had ripple effect on shares of power equipment major Bharat Heavy Electricals (Bhel), which also fell sharply. The S&P BSE Sensex regained positive zone after slipping into the red in late trade, ending with gains of 9 points or 0.05%. The market breadth, indicating the overall health of the market, was negative. Reliance Industries (RIL) declined after Q1 results. Asian Paints dropped after the company reported weak Q1 result at the fag end of the trading session. IT major TCS scaled record high. Housing Development Finance Corporation (HDFC) edged higher after the company reported good Q1 results on Friday, 19 July Among metal stocks, Tata Steel hit 52-week low. The market may remain volatile this week as traders roll over positions in the futures & options (F&) segment from the July 2013 series to August 2013 series. The near month July 2013 derivatives contracts expire on Thursday, 25 July HIGHLIGHTS IN THE HEADLINES TODAY Markets erase intraday gains after L&T's results L&T Q1 net down 12% at Rs 7.56 bn Asian Paints Q1 profit down 4.57% at Rs 2.75 bn India produces record pulses in ; foodgrains output down Zuari permanently shelves Rs 50 bn urea plant plan in K'tka Financial Technologies hits 52-week low, stock falls 21% in 6-days Ambuja Cements drops on Credit Suisse downgrade INSTITUTIONAL ACTIVITY ON NSE & BSE Category Buy Value (` bn) Sell Value (` bn) Net Value (` bn) Foreign Institutional Investors (FII) (4.06) Domestic Institutional Investors (DII)

2 INDEX MOVEMENTS Index Close Open High Low Close Gain / Loss Var. S&P BSE Sensex 20,150 20,097 20,265 20,066 20, CNX Nifty 6,029 6,010 6,064 6,004 6, CNX 500 4,633 4,619 4,657 4,619 4,631 (1.65) (0.04) CNX Nifty Junior 11,910 11,853 11,968 11,853 11,882 (27.45) (0.23) CNX Midcap 7,408 7,381 7,446 7,381 7,391 (17.60) (0.24) CNX IT 7,504 7,472 7,590 7,468 7, CNX 100 5,919 5,899 5,952 5,896 5, BANK Nifty 10,974 10,948 11,132 10,948 11, NIFTY GAINERS Company Curr. Gain HDFC INDUSINDBK SUNPHARMA 1,110 1, M&M BANKBARODA NIFTY LOSERS Company Curr. Loss LT BHEL AMBUJACEM ONGC TATASTEEL COMMODITIES & CURRENCIES Commodity (Futures) Day Curr. Day Brent Crude (USD / bbl) Gold (USD / t. Oz) 1, , Silver (USD / t. Oz) Currency Curr. Rate USD / INR EUR / INR ASIAN MARKETS Index Closing Gain / Loss Var. Hangseng 21, Nikkei , Shanghai Composite 2, Straits Times 3, Taiwan TAIEX 8, Yen / INR

3 GLOBAL MARKET OVERVIEW European stocks rose for a fourth day on Monday, 22 July 2013, extending a seven-week high ahead of data on house sales in the US. Key benchmark indices in France and Germany were up 0.29% to 0.32%. UK's FTSE 100 fell 0.06%. Asian markets edged higher on Monday, 22 July 2013, after China removed a floor on banks' lending rates and after Japan's ruling government regained control of the parliament's upper house, raising hopes for further reforms in both economies. Key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore, and Taiwan rose by 0.25% to 0.66%. Indonesia's Jakarta Composite fell 0.96%. GLOBAL NEWS A day after his party won a resounding victory in national upper-house elections, Japanese Prime Minister Shinzo Abe on Monday, 22 July 2013, said that the government's top priority remains rebuilding the economy. Calling the Liberal Democratic Party's (LDP) win "a supportive push" from voters for his economic policies of easy money, massive government spending and deregulatory reforms, Mr. Abe said he would continue to implement growth policies, including tax cuts on capital investments. The People's Bank of China removed a floor on banks' lending rates, according to a July 19 statement. China currently caps the interest rates that banks pay on deposits, a factor that often pushes savers toward riskier investments in search of higher returns. Any liberalisation is seen as positive for China's financial sector and its economy. But many Chinese investors fear the nation's banks, which for years have made easy profits from state-mandated spreads between borrowing and lending rates, will struggle to benefit from more competition. ECONOMIC AND POLITICAL NEWS The country has achieved a record pulses production of million tonnes (MT) in the crop year ended June, while foodgrain output fell by 1.5% to MT due to drought in some states last year. Pulses output has been revised upward to record MT in as compared with 18 MT in the third estimates released in May. Pulses output stood at MT in The foodgrains output is same as it was in the third estimate, but it is lower than the record MT achieved in the crop year (July-June). The weak rupee, along with slow growth, deterioration in the current account, and the likelihood of fiscal worries could revive sovereign ratings downgrade risks for the country, DBS says in a note. DBS notes the country's forex reserves continue to contract. The total foreign exchange reserves as a percentage of total external debt, now stands at 74.8% versus 85.2 last year. Companies selling goods below manufacturing cost to capture market share will have to pay excise duty at the normal price (production cost plus profit) as the finance ministry has decided not to provide relief from a landmark Supreme Court ruling upholding excise duty demand on sale of discounted Uno by Fiat. This will deal a double blow to companies in sectors such as automobiles, oil marketing, fast-moving consumer goods, consumer durables, information technology hardware, fertiliser and chemicals, some of which are already selling products at loss to penetrate a fiercely competitive market. These may soon get notices from the excise department. Global rating agency Moody's today said Bhutan election results signal closer economic ties with India and it would be credit positive for India. On 13 July, Bhutan held its second elections since the country transitioned to a democracy in 2008 from a Monarchy, handing the majority in Parliament to the former opposition People's Democratic Party (PDP).

4 INDUSTRY NEWS UCB, a global biopharma company, alongwith others has filed separate cases against as many as 15 drug makers, including India's Ranbaxy, Aurobindo, Zydus, Sun Pharma, Glenmark and Alembic Pharmaceuticals for allegedly infringing its patented drug Vimpat. The patent infringement petition was filed in the US District Court for the district of Delaware. The country's largest power generator, NTPC believes that the volume of power purchased across the country will go down further. It is a cause for worry, as power off-take by distribution companies has already been low this financial year. SECTOR PERFORMANCE AND TRENDS Out of 2416 scrips traded over BSE, 1032 advanced & 1233 declined. L&T dragged Capital Goods and broader indices. Sector Var S&P BSE CONSUMER DURABLES (0.40) S&P BSE BANKEX 0.98 S&P BSE OIL & GAS (1.65) S&P BSE METAL (0.26) S&P BSE PSU (0.62) S&P BSE REALTY (0.53) S&P BSE FMCG (0.08) S&P BSE POWER (0.91) S&P BSE HEALTHCARE (0.23) S&P BSE CAPITAL GOODS (5.57) Sector Trend * Auto BFSI Construction Consumer Goods Energy Industrial Manufacturing IT Metals Telecom * Shows trend for current & last four trading sessions S&P BSE IT 0.73 S&P BSE AUTO 1.06 S&P BSE TECK 0.71 BONDS, T-BILLS & IPOs The markets were bracing for disappointment at an auction of bond investment quotas on Monday, with weak demand expected from foreigners until there is clarity on the central bank's policy intentions after its dramatic attempt to shore up the rupee. Investors are worried the RBI, which holds a policy review on July 30, may have more surprises in store to try to support the rupee, such as increasing reserves banks must hold at the central bank or issuing offshore bonds. With rupee continuing to be weak against the dollar, an NRI bonds issue may become imminent soon to contain its free-fall that has already impacted the Indian economy, HSBC country head Naina Lal Kidwai said.

5 COMMODITIES Gold prices surged by Rs 390 to Rs 27,680 per 10 grams in the national capital today on brisk buying by stockists, taking strong cues from global markets. In line with the general firming trend, silver shot up by Rs 800 to Rs 41,325 per kg. Traders said sentiment bolstered after gold jumped to a one-month high in overseas markets as expectations the US Federal Reserve will sustain stimulus hurt the dollar, and raised demand for precious metals as an alternate investment. Brent crude held steady below $108 a barrel on Friday, after pulling back from a three-month peak in the previous session as the prospect of more supply from non-opec producers and concerns about China's demand growth capped gains. CORPORATE ANNOUNCEMENTS Larsen & Tubro today reported a net profit of Rs 7.56 bn in the first quarter of FY14. The company's profit has declined 12% since the same period last year when it posted profit of Rs 8.64 bn. The contruction and engineering company's order inflow in the quarter was at Rs bn, improving 28%. The company's net sales stood at Rs bn in the same period. Asian Paints today reported a decline of 4.57% in its consolidated net profit at Rs 2.75 bn for the first quarter ended June 30, Consolidated net sales of the company stood at Rs bn in the April-June quarter, compared to Rs bn during the same period of previous fiscal. "The decorative paints business in India did well considering the challenging and uncertain macro environment. Paints volume grew in double digit, raw material prices were by and large stable with a softening bias but were affected by the depreciation of rupee," Asian Paints Managing Director & CEO K B S Anand said. Zuari Fertiliser and Chemicals Ltd has shelved a proposed Rs 50 bn urea plant in Karnataka over land acquisition delays. "Land acquisition has not happened for this project, so we have shelved this project," a senior official of the company said. Country's largest private electricity producer Tata Power today said it is developing a 28.8 MW photovoltaic-based solar project in Maharashtra. The power producer's wholly-owned subsidiary Tata Power Renewable Energy Ltd (TPREL) is developing the plant in Satara district of Maharashtra. The information in this publication was developed using data which Hinduja Bank () Ltd assumes to be accurate; nevertheless, Hinduja Bank () Ltd accepts no liability and offers no guarantee. The availability of such information does not constitute a recommendation to buy or sell any of the securities discussed therein. Statements made in this publication can be changed without prior notice. Moreover, the content is not intended for individuals (or entities) who (which), by reason of their nationality or domicile or for any other reason, are subject to foreign regulations prohibiting access to banking services or investment instruments via one or several distribution channels, or prohibiting or restricting the use of any information provided in this document.

HINDUJA BANK (SWITZERLAND) LTD

HINDUJA BANK (SWITZERLAND) LTD BUILDING WEALTH, ENABLING ENTERPRISE October 25, 2013 DAILY MARKET COMMENTS INDIA SUMMARY Key benchmark indices edged lower in choppy trade on last trading day of the week