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1 Free Press Marg, Nariman Point, Mumbai

2 Item Open High Low Close % Cng Net Cng Trend Market Update Gold $ Silver $ LME Alum. LME Copper LME Lead LME Nickel LME Zinc Crude $ Nat. Gas $ Precious Metals Base Metal Energy Growth among India's services firms picked up pace in January as burgeoning order books boosted confidence, suggesting further expansion this month, a business survey showed. The HSBC Services Purchasing Managers' Index (PMI), compiled by Markit, rose to 52.4 in January from 51.1 in December. It has been above 50 level, which denotes growth, since May The new business sub-index - which measures demand - climbed to 52.1 from The survey also showed firms' confidence regarding future business grew at the fastest pace since June last year. The Reserve Bank of India held interest rates steady on Tuesday, while boosting banks' liquidity in a bid to persuade them to lower lending rates after they failed to pass on the benefits of the last official rate cut three weeks ago. The central bank's surprise quarter-point cut in January was a clear sign inflation was easing. But the services PMI data showed input costs rose at a faster rate in January and that firms were able to pass on a slightly bigger portion to customers by raising prices. Dollar Index Euro GB Pound Japan YEN Rus. Rouble Singapore Canadian Swissfranc RMB Currency TIME ZONE DATA Forecast Previous 12:30pm EUR German Factory Orders m/m :40pm EUR Retail PMI :30pm EUR EU Economic Forecasts 0 0 Tentative EUR French 10-y Bond Auction :00pm USD Challenger Job Cuts y/y :00pm USD Trade Balance -38.2B -39.0B 7:00pm USD Unemployment Claims 287K 265K Euro zone factory activity grew slightly last month as companies kept slashing prices, but a weakened currency did little to help drive new orders from abroad, a survey showed. "Euro zone manufacturing showed signs of pulling out of the doldrums at the start of the year, but the rate of expansion remained disappointingly meager, vindicating the ECB's decision to take drastic action," said Chris Williamson, chief economist at survey compiler Markit. The survey's results were mostly collected before the European Central Bank announced a near-trillion euro quantitative easing program as part of its bid to revive inflation and drive up growth. Markit's final January manufacturing Purchasing Managers' Index (PMI) was 51.0, in line with an earlier flash reading. Although it was a sixmonth high, it was only just above the 50 mark that separates growth from contraction. In December the index came in at Firms cut prices in January at the steepest rate since mid Data on Friday showed prices fell at a record-equaling 0.6 percent across the 19 nations using the euro in January. 1

3 NSE-CUR USDINR Feb 2015 Rupee settled flat on sustained dollar buying from state-owned banks, even as currencies in the region rose. Growth among India's services firms picked up pace in January as burgeoning order books boosted confidence, suggesting further expansion this month, a business survey showed. The HSBC Services Purchasing Managers' Index (PMI), compiled by Markit, rose to 52.4 in January from 51.1 in December. It has been above 50 level, which denotes growth, since May The new business sub-index - which measures demand - climbed to 52.1 from The survey also showed firms' confidence regarding future business grew at the fastest pace since June last year. Reserve Bank of India Governor Raghuram Rajan said that inflation was still a concern but added the deflationary global environment gave the central bank some elbow room with monetary policy. Central bank officials are currently in discussions with analysts on the policy rationale. India's fiscal deficit overshot the fullyear target in December as the gap swelled to 5.32 trillion rupees ($85.90 billion), or percent of the target for the fiscal year ending in March, government data showed. The deficit was 95.2 percent during the same period a year ago. Net tax receipts were at 5.46 trillion rupees ($88.16 billion) in the first nine months of the current financial year. Technically market is under fresh buying as market has witnessed gain in open interest by 3.79% to settled at while prices up rupee, now USDINR is getting support at and below same could see a test of level, And resistance is now likely to be seen at 62.18, a move above could see prices testing OPEN HIGH LOW CLOSE % RE VOL OI R1 R2 R3 PP S1 S2 S ,185, Trading Ideas : # USDINR trading range for the day is # Rupee settled flat on sustained dollar buying from state-owned banks, even as currencies in the region rose. # Growth among India's services firms picked up pace in January as burgeoning order books boosted confidence, suggesting further expansion this month. # Reserve Bank of India Governor Raghuram Rajan said that inflation was still a concern # RBI Reference Rate for USDINR was vs # BUY SL TGT

4 NSE-CUR EURINR Feb 2015 Euro rallied as traders covered their short positions amid news that Greece won t require a debt write-off, but instead will look to issue new debt and rearrange new funding conditions for the country. Eurozone retail sales grew at a slower pace in December, Eurostat showed. Retail sales grew 0.3 percent month-on-month in December, slower than November's 0.7 percent increase. Greece wanted to raise 10 billion in short-term bills as "bridge financing" to have enough funds for the next three months, while the country will try to renegotiate a new bailout program. This proposal has, however, been rejected by Germany and the European Central Bank (ECB) as well. The European Central Bank is considering to withdraw from the group reviewing the bailout programme of Greece, German daily Handelsblatt reported. The International Monetary Fund also prefers to leave the troika, the report said. If both ECB and IMF leave the group, then the European Commission will be the sole member in troika. The Syriza party came to power in Greece under the leadership of Alexis Tsipras, promising a roll back of austerity measures. Investor confidence was boosted Tuesday after the Greek government outlined its plans to renegotiate the terms of its 140 billion bailout, retreating from election pledges to demand a debt write-down. Technically market is under short covering as market has witnessed drop in open interest by -1.64% to settled at while prices up 0.62 rupee, now EURINR is getting support at and below same could see a test of level, And resistance is now likely to be seen at 71.23, a move above could see prices testing OPEN HIGH LOW CLOSE % RE VOL OI R1 R2 R3 PP S1 S2 S , Trading Ideas : # EURINR trading range for the day is # Euro rallied as traders covered their short positions amid news that Greece won t require a debt write-off. # Investor confidence was boosted after the Greek government outlined its plans to renegotiate the terms of its 140 billion bailout # Eurozone retail sales grew at a slower pace in December, Eurostat showed. # RBI Reference Rate for EURINR was vs # SELL EURINR BELOW SL TGT

5 NSE-CUR GBPINR Feb 2015 GBP gained after the release of upbeat U.K. service sector activity data, as investors remained cautious amid ongoing uncertainty over Greece's future in the euro zone. The U.K. service sector expanded more than expected in January as new business rose at a faster pace, survey data from Markit showed. The Markit/Chartered Institute of Purchasing & Supply Purchasing Managers' Index rose to 57.2 in January from 55.8 in December. The score was forecast to rise to Growth has now been recorded for 25 months in succession. New business received by UK service sector companies increased at a marked and accelerated pace in January. Backlogs increased consecutively for 22 months, and some respondents blamed a lack of staff at their units as a reason for further backlog growth. Shop prices in the United Kingdom were down 1.3 percent on year in January, the British Retail Consortium said. That was slower than the 1.7 percent drop in December and the forecasts for a decline of 1.6 percent. Data showed that the Markit/CIPS Services Purchasing Managers Index increased to 57.2 last month from a reading of 55.8 in December. The report came one day after Markit and the Chartered Institute of Purchasing & Supply said that their U.K. construction PMI increased to 59.1 last month from a reading of 57.6 in December. Technically market is under fresh buying as market has witnessed gain in open interest by 19.81% to settled at 25797, now GBPINR is getting support at and below same could see a test of level, And resistance is now likely to be seen at 94.43, a move above could see prices testing OPEN HIGH LOW CLOSE % RE VOL OI R1 R2 R3 PP S1 S2 S , Trading Ideas : # GBPINR trading range for the day is # GBP gained after the release of upbeat U.K. service sector activity data. # The U.K. service sector expanded more than expected in January as new business rose at a faster pace, survey data from Markit showed. # Shop prices in the United Kingdom were down 1.3 percent on year in January, the British Retail Consortium said. # RBI Reference Rate for GBPINR was vs # BUY GBPINR ABV SL TGT

6 NSE-CUR JPYINR Feb 2015 JPY weakened amid growing speculation that the Bank of Japan will extend its money-printing program in the coming months. Bank of Japan Deputy Governor Kikuo Iwata said the recent collapse in oil prices has not hampered a broad uptrend in consumer prices, stressing that the effect of the bank's monetary stimulus is working its way through the economy. Iwata, one of the BOJ's two deputy governors and an architect of the bank's radical stimulus programme, said monetary policy cannot immediately fix short-term fluctuations in inflation driven by external factors such as oil price falls. Japan's services sector continued to expand in January, albeit at a slightly slower pace, the latest survey from Markit Economics revealed with a PMI score of expanding for the third straight month. That's down from 51.7 in December, although it remains above the boom-orbust line of 50 that separates expansion from contraction. The composite PMI, which also factors in manufacturing, posted a score of 51.7 in January - down from 51.9 in the previous month. Total labor cash earnings in Japan grew at a faster rate as expected in December, a report from the Ministry of Health, Labor and Welfare showed. Total earnings increased 1.6 percent year-over-year in December following the 0.1 percent rise in November. Technically market is under short covering as market has witnessed drop in open interest by % to settled at while prices up rupee, now JPYINR is getting support at and below same could see a test of level, And resistance is now likely to be seen at 52.98, a move above could see prices testing OPEN HIGH LOW CLOSE % RE VOL OI R1 R2 R3 PP S1 S2 S , Trading Ideas : # JPYINR trading range for the day is # JPY weakened amid growing speculation that the Bank of Japan will extend its money-printing program in the coming months. # Bank of Japan Deputy Governor Kikuo Iwata said the recent collapse in oil prices has not hampered a broad uptrend in consumer prices. # Japan's services sector continued to expand in January, albeit at a slightly slower pace, the latest survey from Markit Economics revealed. # RBI Reference Rate for JPYINR was vs # BUY SL TGT

7 SPREAD MATRIX FOR USDINR SPREAD MATRIX FOR EURINR MONTH RATE FEB MAR APR MONTH RATE FEB MAR APR FEB FEB MAR MAR APR APR SPREAD MATRIX FOR GBPINR SPREAD MATRIX FOR JPYINR MONTH RATE FEB MAR APR MONTH RATE FEB MAR APR FEB FEB MAR MAR APR APR 0.00 MAJOR CURRENCY CROSS RATES Last Trade INR U.S. $ Euro U.K. en RBI Reference Rate 1 INR = Date Last Previous 1 U.S. $ = USD Euro = EURO U.K. = YEN en = GBP

8 Contact Us Head Office Currency Desk Phone: Ext 239. Disclaimer: The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true and is for general guidance only. While every effort is made to ensure the accuracy and completeness of information contained, the company makes no guarantee and assumes no liability for any errors or omissions of the information. No one can use the information as the basis for any claim, demand or cause of action. LKP Securities Ltd., and affiliates, including the analyst who have issued this report, may, on the date of this report, and from time to time, have long or short positions in, and buy or sell the Currencies mentioned herein or engage in any other transaction involving such Currencies and earn brokerage or compensation or act as advisor or have other potential conflict of interest with respect to company/ies mentioned herein or inconsistent with any recommendation and related information and opinions. LKP Securities Ltd., and affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. 6