HINDUJA BANK (SWITZERLAND) LTD

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Dominic Lawrence
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1 HINDUJA BANK (SWITZERLAND) LTD BUILDING WEALTH, ENABLING ENTERPRISE 30 November 2015 DAILY MARKET COMMENTS INDIA SUMMARY Markets finished the first session of the eventful week on a quiet note as participants await for the GDP data for the September quarter later today amid persistent fund outflows. Meanwhile, RBI's fifth bi-monthly monetary policy meet due tomorrow also kept the investors on their toes. This week is going to be an eventful week as vital key macroeconomic numbers are due to be unveiled including India s manufacturing purchasing managers' index (PMI) data for November on Tuesday, and services PMI data for the current month on Thursday. The Sensex gained 17 points at 26,146 while the Nifty lost 7 points to close at 7,935. Auto stocks closed firm ahead of the monthly sales figures of automobile companies, starting tomorrow. Tata Motors is about to launch a new car called Zica, a compact hatchback. Bharti Airtel lost 2% as it decides to invest Rs 600 bn towards transformation of its network in next three years ahead of impending launch of Reliance Jio. Amid a subdued trading session, shares of railway-related companies closed higher extending their past one week gain after Morgan Stanley report suggested that India is expected to spend a whopping USD 95 billion (over Rs 6.34 trillion) on ramping up its rail infrastructure. HIGHLIGHTS IN THE HEADLINES TODAY Sensex, Nifty pause ahead of GDP data; RBI policy meet in focus Jul-Sep GDP growth at 7.4% Core sector growth slows to 3.2% in October Bharti Airtel to shell out Rs 600 bn for network upgrade Cipla ready to launch low dose HIV drug 'Efavirenz' Rajesh Exports bags Rs bn shipment order Rail related shares rally; Titagarh Wagons up over 10% INSTITUTIONAL ACTIVITY ON NSE & BSE Category Buy Value (Rs bn) Sell Value (Rs bn) Net Value (Rs bn) Foreign Institutional Investors (FII) (10.44) Domestic Institutional Investors (DII)

2 INDEX MOVEMENTS Index Close Open High Low Close Gain / Loss Var. S&P BSE Sensex 26,128 26,143 26,231 26,089 26, Nifty 50 7,943 7,936 7,966 7,923 7,935 (7.45) (0.09) Nifty 500 6,687 6,687 6,707 6,679 6,686 (0.80) (0.01) Nifty Next 50 19,682 19,710 19,723 19,596 19,617 (65.25) (0.33) Nifty Midcap ,228 13,244 13,294 13,243 13, Nifty IT 11,123 11,148 11,280 11,084 11, Nifty 100 8,068 8,064 8,088 8,047 8,057 (10.70) (0.13) Nifty Bank 17,371 17,336 17,498 17,336 17, NIFTY GAINERS Company Curr. Gain POWERGRID INDUSINDBK INFY 1,083 1, TATAPOWER TATAMOTORS NIFTY LOSERS Company Curr. Loss ASIANPAINT (2.23) BHARTIARTL (2.15) VEDL (1.90) COALINDIA (1.56) NTPC (1.54) 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. Hang Seng 21, Nikkei , Shanghai Composite 3, Straits Times 2, Taiwan TAIEX 8, Yen / INR 54.18

3 GLOBAL MARKET OVERVIEW Asian equities closed mostly in the red with Japan s Nikkei dropping 0.7% despite official data showing an uptick in industrial production and retail sales for October. Meanwhile, China markets pared its losses to finish with marginal gains after the regulator banned some brokerages for infringement of trading rules last week. European stocks are trading mixed as investors eye key economic data from the US, Europe and China. The ECB meet on Thursday is keenly awaited. GLOBAL NEWS Japan's industrial output rose for a second straight month in October and retail sales grew much faster than expected - a tentative sign of the economy's recovery from a recession. Trade ministry data on Monday showed factory output rose 1.4% month-on-month in October, versus economists' estimate for a 1.9% gain and 1.1% increase in September, led by general-purpose machinery, cars and electronics. Separate data showed retail sales rose 1.8% in the year to October, more than a 0.8% annual gain expected, on sales of clothes, food and drink, cars and home appliances. When the International Monetary Fund agrees on Monday to add the Chinese yuan to its reserves basket in the biggest shake-up in more than three decades, the IMF can afford itself a congratulatory nod. By acknowledging the yuan as a major global currency alongside the dollar, euro, yen, and pound, as is widely expected, IMF members will endorse the efforts of China's economic reformers and by doing so hope that will spur fresh change in China. ECONOMIC AND POLITICAL NEWS India s gross domestic product (GDP) growth for the three-month period ended September 30 stood at 7.4%, compared with seven per cent in the previous quarter and 8.4% in the same quarter last year. The increase in the rate of growth over the June quarter was mainly on account of good numbers for the manufacturing sector. Earlier, several economists had estimated the rate of economic growth in the July-September quarter to be %, and analysts polled by Reuters and Bloomberg had put the figure at 7.3%. After the September quarter GDP growth numbers, there is likely to be a downward revision in official GDP growth estimates for the full financial year the economic survey had estimated it to be between 8.1% and 8.5%. Manufacturing growth during the quarter was 9.3%, against 7.2% in the previous quarter. The agricultural sector grew 2.2%, against 1.9%. India's infrastructure output grew at 3.2% in October, year-on-year, unchanged from September but down from 9% a year ago, government data showed on Monday. Infrastructure accounts for nearly 38% of India's industrial output. India's fiscal deficit reached Rs 4.11 trillion ($61.67 billion) during April-October or 74% of the full-year target, government data showed on Monday. The deficit was 89.6% of the full-year target during the same period a year ago. The rupee depreciated 8 paise to quote at fresh over two-year low of against the dollar in early trade today on month-end demand for the American currency from importers and banks. The dollar was firm against major global currencies which dampened rupee sentiment, dealers said. Besides, persistent foreign capital outflows affected the market sentiment, but a higher opening of the domestic equity market, capped the losses, they added.

4 INDUSTRY NEWS Shares of smallcap companies are on a roll and outperformed the large and midcap stocks for the second straight month. The Bombay Stock Exchange (BSE) S&P BSE Smallcap index has gained 2.8% during the month of November as compared to 0.14% rise in S&P BSE Midcap index and 1.92% decline in the S&P BSE Sensex. In October, the smallcap index rallied 2.7% against 1.9% rise in the benchmark and 1.6% gaiin in the midcap index. Power sector employees, engineers and contract workers would go on a one-day nationwide strike on December 8 against Electricity (Amendment) Bill According to AIPEF chairman Shailendra Dubey, National Coordination Committee Of Electricity Employees and Engineers (NCCOEEE) had already served the strike/work boycott notice to Union Power Minister Piyush Goyal at Kochi on November 6 during the power ministers' conference. NCCOEEE convener A B Bardhan has reminded Goyal through a letter about his promises to redress the issues raised by workers and engineers at Kochi, but more than a week's time has elapsed and because of no response from the Union Power Minister, there was a deadlock. SECTOR PERFORMANCE AND TRENDS Out of 2916 scrips traded over BSE, 1632 advanced & 1073 declined. Sector Var S&P BSE Fast Moving Consumer Goods (0.63) S&P BSE Healthcare (0.41) S&P BSE Information Technology 1.07 S&P BSE AUTO 0.45 S&P BSE BANKEX 0.29 S&P BSE CAPITAL GOODS 0.36 S&P BSE CONSUMER DURABLES 1.04 S&P BSE METAL (0.35) S&P BSE OIL & GAS 0.04 Sector Trend * Auto BFSI Construction Consumer Goods Energy Industrial Manufacturing IT Metals Telecom * Shows trend for current and last four trading session S&P BSE POWER 0.55 S&P BSE REALTY 0.97 S&P BSE TECK 0.58 IPOs / BONDS Drug maker Alkem Laboratories Ltd, which is raising about Rs bn through an initial public offering, could announce the price band on November 30 or December 1, according to two sources familiar with the matter. Earlier this month, Reuters reported that the company would launch the IPO by the second week of December.

5 COMMODITIES Gold extended losses on Monday, dropping towards its lowest level in nearly six years, and was poised to record its steepest monthly slide in two-and-a-half years on prospects of a US interest rate hike this year. The precious metal has fallen out of favour as investors position themselves for the first US rate hike in nearly a decade. The US Federal Reserve is expected to raise rates at its next policy meeting on Dec CORPORATE ANNOUNCEMENTS Bharti Airtel today announced it will invest Rs 600 bn towards transformation of its network in next three years. Announcement comes ahead of impending launch of Reliance Jio, owned by Mukesh Ambani, next year. A majority of investment will go towards capex, Gopal Vittal, MD and CEO, Bharti Airtel (India and South Asia) said. Drug major Cipla Ltd today said it is ready to launch low dose 'Efavirenz' used in treatment of HIV infection. On the eve of World AIDS day, the company announced "its readiness to supply its combinations Tenofovir/Emtricitabine/Efavirenz and Tenofovir/Lamivudine/ Efavirenz with a dose of 400 mg of Efavirenz as a first-line initial therapy for HIV infection", Cipla said in a BSE filing. Nearly six months after it had to shut down Maggi manufacturing units across the country, Nestle India today restarted production of the instant noodles in last of its five plants in Tahliwal, Himachal Pradesh. We have resumed manufacturing of Maggi Noodles at its Tahliwal (Himachal Pradesh) Factory. With this, the Company has resumed manufacture of Maggi Noodles at all five Noodle manufacturing facilities, the company informed the Bombay Stock Exchange today. Jewellery firm Rajesh Exports today said it has bagged an export order worth Rs bn for gold and diamond studded jewellery and medallions from the UAE. The order is to be completed by March 31 next year and it will be executed at the company's manufacturing facility at Bengaluru. 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 30 September 2015 DAILY MARKET COMMENTS INDIA SUMMARY Benchmark Indices gained for the second consecutive session after higher-than-expected