HINDUJA BANK (SWITZERLAND) LTD

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1 HINDUJA BANK (SWITZERLAND) LTD BUILDING WEALTH, ENABLING ENTERPRISE 20 October 2015 DAILY MARKET COMMENTS INDIA SUMMARY Benchmark indices snapped three day winning streak and closed lower amid volatile trades, weighed down by metal and oil shares. Weak opening of the European markets during mid-session also dampened the sentiments. However, buying demand among select auto and IT shares limited the downside pressure in trades today. The broader markets outperformed the benchmark indices - BSE Midcap and Smallcap indices gained between %. Standard & Poor s (S&P) has retained India s rating at BBB- with stable outlook, the lowest investment grade for India thus dashing the government s hope for a rating upgrade for at least for two years - this year and the next. Vedanta expects its iron ore exports from Goa to be much higher than its permitted mining capacity of 5.5 million tonnes in the fiscal year to March, as it bids for ore in government-run auctions. Shares of Vedanta fell by over 6%. Tata Steel, the biggest steelmaker in Britain, said on Tuesday that its planned restructuring is expected to lead to about 1,200 job losses. Shares of power generation companies such as Reliance Power, Torrent Power and Adani Power were in focus and rallied by over 5% each in otherwise subdued market.. HIGHLIGHTS IN THE HEADLINES TODAY Markets snap 3-day winning streak, Nifty holds 8,250; Midcaps outshine Telecom major Airtel sells 8,300 mobile towers in Africa for $1.7 billion US FDA raises concerns on Cipla's Indore plant Yes Bank cuts savings a/c interest rate by 1% to 6% Tata Steel says may cut about 1,200 UK jobs in restructuring Jubilant Life Sciences gets USFDA nod for generic version of Maxalt-MLT Adani Transmission soars over 20% post Q2 results INSTITUTIONAL ACTIVITY ON NSE & BSE Category Buy Value (Rs bn) Sell Value (Rs bn) Net Value (Rs bn) Foreign Institutional Investors (FII) Domestic Institutional Investors (DII) (3.55)

2 INDEX MOVEMENTS Index Close Open High Low Close Gain / Loss Var. S&P BSE Sensex 27,365 27,403 27,432 27,216 27,307 (58.09) (0.21) CNX Nifty 8,275 8,280 8,294 8,229 8,262 (13.40) (0.16) CNX 500 6,908 6,917 6,932 6,882 6,907 (0.60) (0.01) CNX Nifty Junior 20,133 20,180 20,243 20,053 20, CNX Midcap 13,440 13,483 13,534 13,432 13, CNX IT 11,432 11,465 11,539 11,437 11, CNX 100 8,380 8,388 8,402 8,336 8,369 (10.90) (0.13) BANK Nifty 17,855 17,844 17,940 17,756 17,830 (24.80) (0.14) NIFTY GAINERS Company Curr. Gain BOSCHLTD 21,580 21, TATAPOWER POWERGRID TCS 2,523 2, INFY 1,126 1, NIFTY LOSERS Company Curr. Loss VEDL (6.43) CAIRN (3.79) TATASTEEL (3.20) HINDALCO (2.65) M&M 1,248 1,281 (2.60) 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 22, Nikkei , Shanghai Composite 3, Straits Times 3, Taiwan TAIEX 8, Yen / INR 54.39

3 GLOBAL MARKET OVERVIEW European shares fell for the first time in four days on Tuesday and the euro kicked away from a 10-day low as solid euro zone bank lending data cooled expectations of another jolt of European Central Bank stimulus this week. The 0.5% decline in the pan-european FTSEurofirst 300 index took the shine off stocks after Chinese shares neared a two-month high as the market's recent recovery continued. The quarterly lending data from the ECB ahead of its meeting on Thursday was the principal driver for the euro's bounce, and for the turnaround in Europe's stocks and bonds after what had been a positive start. GLOBAL NEWS The US Treasury has softened its longstanding position that the Chinese currency is "significantly" undervalued, saying it wants to see how market forces move the newly flexible yuan. In its semi-annual report to Congress on whether trading partners artificially hold down their currencies, the Treasury Department yesterday said that the yuan "remains below its appropriate medium-term valuation," a less critical view than that of the past several years. Instead, the department said it is monitoring how Beijing implements its exchange-rate policy since the August 11 devaluation that signaled a new approach to the currency by the People's Bank of China. Libya's internationally recognized government has rejected a UN proposal for a power-sharing arrangement with rival Islamist-led authorities that was intended to bring peace to the north African nation. The internationally recognised parliament will not sign the agreement to form a unity government because the UN refused to exclude amendments added by the Islamist authorities without its consent, spokesperson Farraj Abu Hashem said. Apple is kicking out applications that collect personal data in violation of the company's privacy policies from its online store, the tech giant said today. The iphone maker made the announcement a day after researchers discovered hundreds of apps using Chinese advertising software that extracts "personally identifiable user information." ECONOMIC AND POLITICAL NEWS Reserve Bank of India (RBI) has suggested payments banks that have been granted the inprinciple licence to ensure that there is sharing of infrastructure amongst the banks. The regulator believes that this will help in achieving the spirit of financial inclusion more efficiently. For payments banks, keeping a check on the cost will be an important concern. As a part of the mandate, these banks need to reach the unbanked area where infrastructure sharing will become key to ensure cost efficiency, say analysts. The government will be forced to make large-scale government cotton purchases from farmers for a second straight year, following a cut in imports by top buyer China that has depressed prices, industry officials said. The government spent Rs 160 billion ($2.5 billion) to buy 8.7 million bales of cotton at a minimum support price (MSP) in the marketing year that ended on Sept 30, up from just 400,000 bales in the previous year. Government buying, aimed at supporting farmers, will prevent the dumping of cotton in overseas markets by the world's biggest producer at a time when global prices are near six-year lows. The government has for the third time extended deadline for appointment of merchant bankers for the mega Rs 210 bn share sale in Coal India after global investment banks flagged concerns over the company allegedly not meeting green commitments.

4 INDUSTRY NEWS US FDA has made adverse observations regarding manufacturing practices at drug maker Cipla's Indore plant. The observations commonly referred to as Form 483 were issued following the US agency's inspection in July. While Cipla did not specifically comment on FDA observations and said it is working closely with regulators to ensure highest quality standards, the inspection did raise concerns about quality control measures initiated by the company. According to Moody s Investor Service, Indian power producers consumption of costly imported coal has fallen thanks to a sharp increase in domestic coal production, a credit positive. However, the sector faces persistent challenges including uneven gas supplies, cost over-runs at some generating plants, and limited off-take demand from financially weak distribution utilities. Some generators are also locked into power purchase agreements (PPAs) that have become unviable because they do not allow rising fuel costs to be passed through. All of these factors will continue to weigh on the sector s credit profile, Moody s said in a report. SECTOR PERFORMANCE AND TRENDS Out of 2935 scrips traded over BSE, 1427 advanced & 1326 declined. Sector Var S&P BSE Fast Moving Consumer Goods (0.21) S&P BSE Healthcare (0.33) S&P BSE Information Technology 1.00 S&P BSE AUTO 0.30 S&P BSE BANKEX (0.09) S&P BSE CAPITAL GOODS (0.05) S&P BSE CONSUMER DURABLES 0.46 S&P BSE METAL (1.80) S&P BSE OIL & GAS (0.72) 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 1.36 S&P BSE REALTY (0.66) S&P BSE TECK 0.75 IPOs / BONDS IndiGo's parent InterGlobe Aviation has reduced its initial share sale size to a little over Rs 30 bn, with three of the promoters deciding to sell less number of shares than proposed earlier. The operator of the profitable no-frills carrier would be hitting the capital market on October 27 and the price band for the offer has been fixed at Rs With three promoters -- Rakesh Gangwal, Shobha Gangwal and Chinkerpoo Family Trust -- deciding to offload less number of shares in the company, the IPO size has come down by Rs 2.5 bn to Rs bn.

5 COMMODITIES As household demand for gold slows ahead of Diwali, with prices having recently broken the Rs 27,000 per 10 gm mark, a tussle for market share is brewing between bullion banks and a few gold refiners from excise free zones. Banks import gold bars on consignment basis at 10 per cent customs duty whereas refiners from pockets in the country's north and northeast import good quality dore, or rough gold, at 8 per cent duty. This gives the latter a straight $2 advantage and enables them to profit even after selling the metal at a discount to banks' gold rate to attract jewellers at a time consumer demand has slowed because of high prices. CORPORATE ANNOUNCEMENTS Telecom major Bharti Airtel today said it has completed the sale of about 8,300 mobile towers in Africa for USD 1.7 billion (about Rs 110 billion), which will be used for reducing debt. "As on date we have completed the sale transactions in seven countries for approximately 8,300 towers representing close to 60 per cent of the total tower base," Airtel said in a statement. Bharti Airtel has around 14,000 mobile towers in Africa and has decided to exit the tower business. Tata Steel, the biggest steelmaker in Britain, may cut about 1,200 jobs as part of plans to restructure its struggling operations, it said on Tuesday. Tata plans to halt production of steel plate, which would lead to about 900 job losses in Scunthorpe in northern England and 270 in Scotland, plus a small number at other sites, it said in a statement. Welspun India posted a 33 per cent increase in its profit after tax at Rs 1.72 bn in the second quarter of the current financial year as compared to Rs 1.29 bn it posted in Q2 of FY2015. The company's revenue went up 4 per cent year on year at Rs bn in Q2 FY Private sector lender YES Bank today cut interest rates on savings account from 7% to 6%. The reduced rate will be effective from November 1, Jubilant Life Sciences today announced receipt of approval from the US health regulator for its generic version of Merck's acute migraine treatment medicine, Maxalt-MLT. 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