HINDUJA BANK (SWITZERLAND) LTD

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1 HINDUJA BANK (SWITZERLAND) LTD BUILDING WEALTH, ENABLING ENTERPRISE 8 January 2015 DAILY MARKET COMMENTS INDIA SUMMARY Benchmark share indices ended over 1.4% higher on Thursday, amid firm global cues, to snap their three-day losing streak led by financials and FMCG shares. Financials witnessed value buying after the sharp correction in the previous sessions. ICICI Bank, HDFC Bank, HDFC, SBI and Axis Bank ended up % each. Kotak Mahindra ended nearly 5.5% higher after shareholders of the bank today gave their approval to merge Bengaluru-based ING Vysya Bank with itself. ING Vysya Bank ended up 5.4%. In the auto segment Tata Motors is set to launch its second model Bolt (a hatchback) on January 22. The stock ended as the top Sensex gainer up 3.4%. Hero MotoCorp ended marginally higher while Bajaj Auto ended flat with negative bias. Foreign brokerage CLSA downgraded both the stocks. ITC witnessed value buying at lower levels after the stock was beaten down in the recent correction. ITC was up 2.4% while HUL extended gains to end 2.4% higher after foreign brokerages upgraded the stock. IT stocks ended mixed. Infosys ended up 0.7% ahead of its third quarter results due tomorrow while TCS and Wipro ended up % each. Coal India ended 0.8% higher amid reports that the five unions have called off their strike. HIGHLIGHTS IN THE HEADLINES TODAY Sensex jumps 366 points to snap 3-day losing streak Kotak Bank shareholders approve merger of ING Vysya Bank Moody's upgrades Tata Steel to Ba1, confirms Tata Steel UK at B2 India Inc's revenue growth to slip to a 6-quarter low in Q3FY15: CRISIL Pune developers feel hike in ready reckoner will impact sales in 2015 Persistent Systems rebounds on bonus issue plan Sobha's Q3 sales bookings fall 15% to Rs 4.27 bn INSTITUTIONAL ACTIVITY ON NSE, BSE & MCX-SX Category Buy Value (Rs bn) Sell Value (Rs bn) Net Value (R bn) Foreign Institutional Investors (FII) (4.66) Domestic Institutional Investors (DII)

2 INDEX MOVEMENTS Index Close Open High Low Close Gain / Loss Var. S&P BSE Sensex 26,909 27,179 27,316 27,102 27, CNX Nifty 8,102 8,191 8,244 8,167 8, CNX 500 6,645 6,715 6,758 6,708 6, CNX Nifty Junior 18,309 18,488 18,691 18,476 18, CNX Midcap 12,361 12,480 12,584 12,480 12, CNX IT 10,916 11,031 11,058 10,915 11, CNX 100 8,112 8,200 8,254 8,181 8, BANK Nifty 18,304 18,587 18,752 18,486 18, NIFTY GAINERS Company Curr. Gain ASIANPAINT DLF KOTAKBANK 1,343 1, BPCL JINDALSTEL NIFTY LOSERS Company Curr. Loss RELIANCE (1.32) ZEEL (0.10) 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 23, Nikkei , Shanghai Composite 3, Straits Times 3, Taiwan TAIEX 9, Yen / INR 52.26

3 GLOBAL MARKET OVERVIEW European shares edged higher today, 8 January 2015 on expectations that pessimistic euro zone data could prompt the European Central Bank (ECB) to implement more aggressive stimulus measures. Key indices in Germany, UK, and France were up 1.03% to 1.51%. Asian equity markets were higher today, 8 January Key indices in Hong Kong, Japan, Singapore, Taiwan, South Korea, and Indonesia were up 0.09% to 1.74%. In China, the Shanghai Composite was off 2.39%. GLOBAL NEWS German manufacturing orders fell sharply in monthly terms in November, data from the country's economy ministry showed today, 8 January 2015 reversing a strong growth pace in the previous month. New orders in November were down 2.4% in adjusted terms. The October growth figure was revised upwards to 2.9% versus the 2.5% growth originally reported. Greek unemployment continued its downward trend in October, according to figures released by the national statistics agency today, 8 January Figures from the Hellenic Statistical Service, or Elstat, showed that Greece's seasonally-adjusted unemployment rate fell to 25.8%-- compared with 27.8% in October and a revised 26% rate recorded in September. In absolute terms, some 1.2 million Greeks are without jobs. Chinese President Xi Jinping pledged on Thursday $250 billion in investment in Latin America over the next 10 years, as part of a drive to boost Beijing's influence in a region long dominated by the United States. Leaders of the Community of Latin American and Caribbean States, or CELAC - a bloc of 33 countries in the region that excludes the United States and Canada - gathered in Beijing for the first time for a two-day forum on Thursday. Samsung Electronics today flagged a further on-year plunge in profits for the fourth quarter, as the world's top smartphone producer continued to battle stiff competition from Chinese makers. Operating profit for the October-December period was estimated at 5.2 trillion won ($4.7 billion), down 37.4% from the fourth quarter of 2013, the company said. The profit estimate was higher than many analyst expectations with strong demand for high-margin chips mitigating slumping profits in the key mobile sector. Sales totalled about 52 trillion won in the quarter, the company said, down 12.3% from a year earlier. ECONOMIC AND POLITICAL NEWS India Inc s revenue growth in the third quarter ended December 2014 will fall to 7% (year-onyear) due to slow pace of investment, subdued growth in export-oriented sectors and soft commodity prices, according to CRISIL Research. CRISIL Research, in its preview Q3 of FY2015, said on the profitability front, it foresees a marginal uptick in EBITDA margins. CRISIL The aggregate margins could improve by basis points in the reporting quarter. In a move that will boost fee income for banks, the finance ministry has agreed to a long pending proposal of lenders for paying commission for transactions for direct benefit transfer. This will make account opening by the lenders under the Pradhan Mantri Jan-Dhan Yojana (PMJDY) scheme viable. The real estate investment trusts (Reits), notified last year, have so far found few takers due to taxation-related issues. To address this, the Central Board of Direct Taxes wants this market instrument to be made exempt from minimum alternate tax (MAT). Under the current rules, the tax department has deferred capital gains tax on transfer of shares. But MAT, which a transferor has to pay at 18.5% to 20%, is proving a deal-breaker, given the substantial immediate cash outflow involved. Foreign investors swapping shares for Reit units do not have to pay MAT.

4 INDUSTRY NEWS The increase in foreign direct investment (FDI) limit by 23% to 49% is expected to alleviate the capital pressure on Indian private non-life insurers, global credit rating agency Moody's Investor Service (MIS) said Thursday. "Increased foreign investment would alleviate the current capital pressure on non-life insurers and add to their buffers against potential investment losses from the volatile capital markets," MIS said in a statement. Those planning to buy property in Pune this year will have to shell more as purchasing of property just got more expensive. According to the annual statement of rates or Ready Reckoner 2015 property prices in Pune have been increased by 15-25% and land rates have been increased by 20% to 100%. The ready reckoner (RR) is the base rate of property which determines stamp duty and registration charge collected by the government. In addition, all calculations related to property transactions - stamp duty, registration, premiums and tax collections - are based on ready reckoner rates. SECTOR PERFORMANCE AND TRENDS Out of 2974 scrips traded over BSE, 2050 advanced & 823 declined. Sector Var S&P BSE AUTO 1.59 S&P BSE BANKEX 2.07 S&P BSE CONSUMER DURABLES 0.43 S&P BSE CAPITAL GOODS 1.02 S&P BSE FMCG 1.95 S&P BSE HEALTHCARE 1.19 S&P BSE IT 0.91 S&P BSE METAL 1.30 S&P BSE OIL & GAS 0.57 S&P BSE POWER 1.62 Sector Trend * Auto BFSI Construction Consumer Goods Energy Industrial Manufacturing IT Metals Telecom * Shows trend for current and previous trading session S&P BSE REALTY 2.63 S&P BSE TECK 0.97 BONDS, T-BILLS & IPOs Government is expected to adjust bond investment limits among different categories of foreign investors, traders say, citing market speculation. Only 59.32% of corporate debt limits have been utilised vs 99.86% in category for sovereign wealth funds. For overall government debt, barring SWFs, 99.77% of the debt limit has been utilised. State Bank of Travancore has sought capital markets regulator Sebi's approval to raise up to Rs 4.85 bn through rights issue to shore up its capital base.

5 COMMODITIES Brent crude extended gains on Thursday to hold above $51 a barrel, after an unexpected fall in US crude stocks snapped a 4-session decline the previous day. Data showing the US economy remained resilient amid slowing global growth helped bolster oil, which was also supported by Chinese crude imports likely hitting a record high in December. COMPANY ANNOUNCEMENTS Shareholders of Kotak Mahindra Bank today gave their approval to merge Bengaluru-based ING Vyaya Bank with itself. At an extraordinary general meeting, shareholders of the Mumbai-based private bank approved the merger proposal. The exchange ratio has been fixed at 725 shares of Kotak with 1,000 shares of ING Vysya. Realty firm Sobha Ltd's sales bookings declined by 15 per cent to Rs 4.27 bn during the third quarter of this fiscal due to slowdown in demand. "Q3'15 was operationally a subdued quarter with the company achieving new sales of 6,61,451 sq ft valued at Rs 4.27 billion with an average realisation of Rs 6,456 per sq ft," Sobha said in its operational update. Global rating agency Moody's has upgraded Tata Steel Ltd ("TSL")'s corporate family rating to Ba1 with a stable outlook. The upgrade reflects the group-wide refinancing and the improved liquidity which will support further growth of its highly profitable Indian operations, Moody s said in a statement today. 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.