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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 The leading economic index for India, which measures the future economic activity, dropped in December, after recovering in the previous month, figures from the Conference Board showed. The Conference Board leading index fell 0.9 percent in December, in contrast to a 1.7 percent increase in November. Out of the eight components, only two contributed positively to the index. The coincident index that reflects the current economic activity declined 2.1 percent in December, reversing a sharp 7.0 percent rise in the prior month. Only one of the three components contributed positively to the index. "Both the Leading and Coincident Economic Indexes for India fell in December, suggesting that the rate of India's economic expansion is unlikely to accelerate in early 2015," Jing Sima, a senior economist at the Conference Board said. "On the other hand, we are cautious in predicting strong and immediate results from the reform agenda as it requires going beyond picking the lowhanging fruit, as reflected in some softening in the growth rate of the industrial sector." Dollar Index Euro GB Pound Japan YEN Rus. Rouble Singapore Canadian Swissfranc RMB Currency TIME ZONE DATA Forecast Previous All Day EUR ECOFIN Meetings 0 0 7:00pm USD Core Durable Goods Orders m/m :00pm USD Durable Goods Orders m/m :30pm USD S&P/CS Composite-20 HPI y/y :15pm USD Flash Services PMI :30pm USD CB Consumer Confidence :30pm USD New Home Sales 452K 438K The European Central Bank agreed to embark on a quantitative easing (QE) programme that will see it print money to buy up 60 billion euros worth of sovereign bonds from March until the end of September next year. The money will include some from existing programmes. Countries under a bailout programme, such as Greece, will be included but with some additional criteria. The ECB is launching the programme with a view to buoying the flagging euro zone economy, where inflation has turned negative and - at minus 0.2 percent - is far below the central bank's target of just under 2 percent. "Under this expanded programme the combined monthly purchases of public and private sector securities will amount to 60 billion euros," ECB President Mario Draghi said at a news conference. "They are intended to be carried out until end-september 2016 and will in any case be conducted until we see a sustained adjustment in the path of inflation." 1

3 NSE-CUR USDINR Jan 2015 Rupee gained on robust overseas inflows into local shares and bonds pushing stock indices to record close for a fourth straight trading session after the European Central Bank unveiled plans to infuse 1.1 trillion euro bond buying program. The leading economic index for India, which measures the future economic activity, dropped in December, after recovering in the previous month, figures from the Conference Board showed. The Conference Board leading index fell 0.9 percent in December, in contrast to a 1.7 percent increase in November. Out of the eight components, only two contributed positively to the index. The coincident index that reflects the current economic activity declined 2.1 percent in December, reversing a sharp 7.0 percent rise in the prior month. India's foreign exchange reserves rose $2.7 billion last week to reach a record high as the Reserve Bank of India continued to buy U.S. dollars in a bid to shore up its defences against any potential volatility in global currency markets. India's reserves reached $ billion in the week ending on Jan. 16, according to data published by the Reserve Bank of India on Friday, surpassing a previous high of $ billion in September India's benchmark bond yield down 1 basis point at 7.70 percent after in-line 140 billion rupee ($2.28 billion) bond auction cut-offs. Technically market is under fresh selling as market has witnessed gain in open interest by 3.37% to settled at while prices down 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 , a move above could see prices testing OPEN HIGH LOW CLOSE % RE VOL OI R1 R2 R3 PP S1 S2 S ,318, Trading Ideas : # USDINR trading range for the day is # Rupee gained on robust overseas inflows into local shares and bonds pushing stock indices to record close for a fourth straight trading session. # The leading economic index for India, which measures the future economic activity, dropped in December, after recovering in the previous month. # India's foreign exchange reserves rose $2.7 billion last week to reach a record high as the Reserve Bank of India continued to buy U.S. dollars. # RBI Reference Rate for USDINR was vs # SELL USDINR BELOW SL TGT

4 NSE-CUR EURINR Jan 2015 Euro seen under renewed pressure after the European Central Bank launched a government bond-buying programme. The single currency came under broad selling pressure after ECB President Mario Draghi said it will make monthly purchases of 60 billion per month, starting in March and continuing until late Draghi acknowledged the action the ECB took last year was insufficient to ward off the threat of deflation in the region. The annual rate of inflation in the euro area fell into negative territory last month, dropping 0.2%.Draghi said the risks to the euro area recovery remain to the downside but added that today s action should bolster the outlook. He noted that lower oil prices should help households and support a wider recovery. Activity in the manufacturing sectors across the euro zone pointed to improving conditions in January, according to the latest preliminary report from Markit Economics released. The flash manufacturing PMI for the euro zone rose slightly to 51.0 points in January, up from 50.6 in December, remaining in expansion territory for 19 straight months. Germany's private sector remained in expansion territory in January, signaling a further rise in the private sector output. The flash composite output index rose to 52.6 in January from 52 in December. This was the strongest growth in three months. Technically market is under long liquidation as market has witnessed drop in open interest by % to settled at while prices down 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 70.64, 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 seen under renewed pressure after the European Central Bank launched a government bond-buying programme. # Activity in the manufacturing sectors across the euro zone pointed to improving conditions in January, according to the latest preliminary report. # Germany's private sector remained in expansion territory in January, signaling a further rise in the private sector output. # RBI Reference Rate for EURINR was vs # SELL SL TGT

5 NSE-CUR GBPINR Jan 2015 GBP seen under pressure after a U-turn by two Bank of England policymakers that convinced investors interest rates will stay low for a long time. Pressure also seen despite the release of upbeat retail sales data as expectations for the Bank of England to hold its monetary policy for longer continued to weigh. Martin Weale and Ian McCafferty, who since August had called for an end to record-low interest rates, said a rate rise now might cause below-target inflation to become entrenched, leaving all nine members in favour of keeping rates where they are. The minutes led investors to push back expectations for a first UK interest rate hike well into next year -- a big change from six months ago, when most were calling for a rise early this year and some expected it by the end of U.K. retail sales increased unexpectedly in December, though at a slower rate, official data showed. Retail sales volume, including automotive fuel, increased 0.4 percent month-over-month in December after the 1.6 percent rise in November, the Office for National Statistics said. Retail sales were expected to decline 0.6 percent. On an annual basis, the increase in overall sales volume slowed to 4.3 percent in December from 6.4 percent in November. Technically market is under fresh selling as market has witnessed gain in open interest by 3.11% to settled at while prices down rupee, now GBPINR is getting support at and below same could see a test of level, And resistance is now likely to be seen at , 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 seen under pressure after a U-turn by two Bank of England policymakers that convinced investors interest rates will stay low for a long time. # U.K. retail sales increased unexpectedly in December, though at a slower rate, official data showed. # British households perceived that the value of their home increased in January, but the pace of growth was the weakest in 14 months. # RBI Reference Rate for GBPINR was vs # BUY GBPINR ABV SL TGT

6 NSE-CUR JPYINR Jan 2015 JPY gained as dollar seen supported with markets thirsty for the currency, particularly as the US Federal Reserve (Fed) seems to be the only major central bank on track to raise interest rates this year, rather than slashing them. The manufacturing sector in Japan continued to expand at an accelerated pace in January, the latest flash purchasing managers' index from Markit Economics and the Japan Materials Management Association revealed. The Markit/JMMA manufacturing purchasing managers' index, or PMI, edged up to 52.1 in January from 52 in December. Manufacturing output rose at a solid pace as the corresponding index came in at 52.3, though slightly less than the 52.5 score in December. New orders increased at a faster rate in January. Employment levels continued to climb, though at a slower rate. The Bank of Japan assessed that the Japanese economy is recovering at a moderate pace, but inflation is likely to slow, the Monthly Report on Recent Economic and Financial Developments revealed. Japan's economy has continued to recover moderately as a trend as the effects of the decline in demand following the sales tax hike have been waning on the whole, it said. The year-on-year rate of increase in consumer prices is in the range of percent, the bank noted. Technically market is under long liquidation as market has witnessed drop in open interest by -7.74% to settled at while prices down 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 , 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 gained as dollar seen supported with markets thirsty for the currency. # The manufacturing sector in Japan continued to expand at an accelerated pace in January. # Japan's Economy Minister Amari says BOJ inflation cut appropriate given environment. # RBI Reference Rate for JPYINR was vs # SELL SL TGT

7 SPREAD MATRIX FOR USDINR SPREAD MATRIX FOR EURINR MONTH RATE JAN FEB MAR MONTH RATE JAN FEB MAR JAN JAN FEB FEB MAR MAR SPREAD MATRIX FOR GBPINR SPREAD MATRIX FOR JPYINR MONTH RATE JAN FEB MAR MONTH RATE JAN FEB MAR JAN JAN FEB FEB MAR MAR 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