LKP SECURITIES LIMITED 13th Floor Raheja Center, Free Press Marg, Nariman Point, Mumbai

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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 Reserve Bank of India cut a key overnight interest rate, further dialling back an emergency measure it had imposed in mid-july in order to defend the embattled rupee that had tightened market liquidity and pushed up borrowing costs. The move to cut the marginal standing facility (MSF) rate by 50 basis points to 9.0 percent was the latest by new Reserve Bank of India (RBI) Governor Raghuram Rajan to return monetary policy settings towards normal after a harrowing run for the rupee that saw it drop as much as 20 percent on theyearasoflateaugust.therbijacked-upthemsfrateby200bpsinmid- July, the most dramatic move in a package of measures to defend the currency, which had made the MSF India's de facto policy rate. Rajan, a highprofile former chief economist at the International Monetary Fund, took office on September 4. In his first monetary policy review last month, he cut the MSF rate by 75 bps even as he unexpectedly raised the policy repo rate by 25 bps to 7.50 percent and said he wanted the repo rate to regain its role as the policy rate. Dollar Index Euro GB Pound Japan YEN Rus. Rouble Singapore Canadian Swissfranc RMB Currency TIME ZONE DATA Forecast Previous 11:30am EUR German Trade Balance 15.1B 14.5B 12:15pm EUR French Gov Budget Balance B 12:15pm EUR French Trade Balance -4.8B -5.1B 3:30pm EUR German Factory Orders m/m :00pm USD NFIB Small Business Index :30pm USD IBD/TIPP Economic Optimism Eurozone producer prices declined more than expected in August on a sharp drop in energy prices, underlining the muted inflationary pressure in the economy. Industrial producer prices dropped 0.8 percent in August from a year ago, which follows a flat reading in July, Eurostat reported Friday. This was the first decline in three months. Prices were forecast to ease by a more moderate 0.5 percent in August. Energy prices dipped 3.3 percent and that of intermediate goods dropped 1 percent. These declines were partially offset by 0.6 percent increases each in capital and durable consumer goods and a 2 percent rise in non-durable consumer goods prices. At the same time, monthon-month producer prices, remained flat in August, compared to the 0.2 percent rise in July. Consumer price inflation fell to the lowest since early 2010 in September and is forecast to average 1.5 percent this year. The weak inflationary pressure provides ample scope for the European Central Bank to keep rates at lower level for an extended period of time. IHS Global Insight's Chief European Economist Howard Archer said it is still very possible that the ECB will eventually end up cutting rates to 0.25 percent from 0.50 percent. 1

3 MCX-SX USDINR Oct 2013 Rupee snapped a two-day winning streak weighed down by weakness in domestic shares and hurt by broad-based dollar buying from importers and banks. The rupee and other global currencies will likely track the continued uncertainty in the U.S. budget stalemate and government shutdown. The dollar traded near an eight-month low against a basket of currencies. Despite the good all-round buying seen from importers and banks, there was good dollar selling by exporters seen around levels, helping limit a sharper fall. Indian shares ended flat after dropping more than 1 percent earlier in the day, as sentiment overall was broadly cautious ahead of corporate earnings results that are expected to be hit by weakening growth and a volatile rupee. Asian currencies mostly eased taking a breather from their recent rally, as a lack of progress toward resolving the U.S. budget standoff kept investors' appetite for risky assets in check. In the offshore non-deliverable forwards, the one-month contract was at 62.38, while the three-month was at The partially convertible rupee closed at 61.79/80 per dollar compared with Friday's close of 61.43/44. OPEN HIGH LOW CLOSE % RE VOL OI R1 R2 R3 PP S1 S2 S , Trading Ideas : # USDINR trading range for the day is # Rupee dropped weighed down by weakness in domestic shares and hurt by broad-based dollar buying from importers and banks. # RBI cuts marginal standing facility rate by 50 bps to 9.0 pct # The RBI will look at easing restrictions on the forex futures market once the rupee stabilizes # RBI Reference Rate for USDINR was vs # USDINR WILL WAIT FOR ENTRY 2

4 MCX-SX EURINR Oct 2013 Euro pushed higher against the dollar as the U.S. government shutdown entered a second week with little indication of progress towards a resolution in Washington. Investor confidence in the euro zone for October deteriorated unexpectedly, dampening optimism over the outlook for the region s economy, data showed. In a report, market research group, Sentix said its index of investor confidence declined to 6.1 in October from a reading of 6.5 in September. The euro zone s economy expanded in line with previous estimates in the second quarter of 2013, as the region exited a recession, final data showed. In a report, Eurostat said that the euro zone s gross domestic product grew by a seasonally adjusted 0.3% in the April-to-June period, unchanged from a preliminary estimate and in line with expectations. Republican House Speaker John Boehner said Sunday the House will not support bills to fully reopen the government or increase the U.S. debt ceiling unless Democrats agree to talks about spending cuts. The comments fuelled fears that the political deadlock in Washington will not be resolved by October 17, the date which the Treasury Department has estimated the U.S. could risk an unprecedented default. Meanwhile, delays in U.S. economic data releases looked likely to fuel uncertainty over whether the Federal Reserve will hold off on any move to roll back its USD85 billion a month asset purchase program. The shutdown meant that Friday s scheduled release of the U.S. nonfarm payrolls report for September was postponed and no new date was given for the release of the data. OPEN HIGH LOW CLOSE % RE VOL OI R1 R2 R3 PP S1 S2 S , Trading Ideas : # EURINR trading range for the day is # Euro pushed higher as U.S. government shutdown entered a second week with little indication of progress towards a resolution in Washington. # Sentix said its index of investor confidence declined to 6.1 in October from a reading of 6.5 in September. # Eurostat said that the euro zone s gross domestic product grew by a seasonally adjusted 0.3% in the April-to-June period # RBI Reference Rate for EURINR was vs # SELL EURINR BELOW SL TGT

5 MCX-SX GBPINR Oct 2013 Pound moved higher as a lack of progress over the U.S. government shutdown and the risk of a possible U.S. default curbed investor demand for the greenback. The U.K. service sector continued to perform strongly in September and thereby round off the best quarterly performance of the sector since the second quarter of 1997, data from Markit Economics showed. The headline Markit/Chartered Institute of Purchasing & Supply Purchasing Managers' Index dropped slightly to 60.3 in September from August's near seven-year high of The ongoing strength of the British private sector, as indicated by the latest purchasing managers' surveys, points to a sharp pick-up in GDP growth in the third quarter. Republican House Speaker John Boehner said Sunday the House will not support bills to fully reopen the government or increase the U.S. debt ceiling unless Democrats agree to talks aimed at reducing the deficit. The comments fuelled fears that the political deadlock in Washington will not be resolved by October 17, the date which the Treasury Department has estimated the U.S. could risk an unprecedented default. Meanwhile, delays in U.S. economic data releases fuelled expectations that the Federal Reserve will hold off on any move to scale back its stimulus program. The shutdown meant that Friday s scheduled release of the U.S. nonfarm payrolls report for September was postponed and no new date was given for the release of the data. OPEN HIGH LOW CLOSE % RE VOL OI R2 R3 PP S1 S2 S , Trading Ideas : # GBPINR trading range for the day is # Pound moved higher as a lack of progress over U.S. government shutdown and the risk of a possible U.S. default curbed investor demand # Markit Institute of Purchasing & Supply PMI dropped slightly to 60.3 in September from August's near seven-year high of # The ongoing strength of the British private sector, points to a sharp pick-up in GDP growth in the third quarter # RBI Reference Rate for GBPINR was vs # BUY GBPINR ON SL TGT

6 SPREAD MATRIX FOR USDINR SPREAD MATRIX FOR EURINR MONTH RATE OCT NOV DEC MONTH RATE OCT NOV DEC OCT OCT NOV NOV DEC DEC SPREAD MATRIX FOR GBPINR SPREAD MATRIX FOR JPYINR MONTH RATE OCT NOV DEC MONTH RATE OCT NOV DEC OCT OCT NOV NOV DEC DEC 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

7 Contact Us Head Office Miss Smruti Sheth Relationship Manager - Currency Derivatives Phone: Ext smruti_sheth@lkpsec.com 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