HINDUJA BANK (SWITZERLAND) LTD

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1 HINDUJA BANK (SWITZERLAND) LTD BUILDING WEALTH, ENABLING ENTERPRISE 18 August 2014 DAILY MARKET COMMENTS INDIA SUMMARY Markets continued their winning streak for the fifth straight session, amid firm European cues, to end at fresh record closing highs after Prime Minister Narendra Modi announced a scheme for financial inclusion while easing whole-sale price inflation also boosted sentiment. The 30-share Sensex closed at a record high of 26,391 and the Nifty gained 83 points to close at a high of 7,874. ICICI Bank, ONGC and Tata Motors contributed to nearly 50% gain seen on the Nifty. The mid and smallcap indices powered in late trades with the respective trades up 2% each. Shares of PSU OMCs rose as crude oil futures declined. BPCL hit record high. Indian Oil Corporation (IOCL) surged after the company clarified that the matter of investment in Mathura Refinery Expansion Project is in preliminary stage and has not been conceptualized. Shares of state run upstream oil and gas companies rose on hopes of a fall in subsidy sharing burden as crude oil prices dropped. ITC dropped on reports the Centre is planning to introduce tougher provisions under anti-tobacco law to curb tobacco consumption in the country. Bank stocks rose after Prime Minister Narendra Modi announced a new financial scheme to help the poor open bank accounts. HIGHLIGHTS IN THE HEADLINES TODAY Markets waltz to record closing highs; Nifty at 7,874 Tata Motors, HUL, Maruti Suzuki, Sun Pharma, Cipla hit new high Bajaj Group ends decades-old alliance with Force Motors UP Pollution Control Board serves notice to DLF to stop work at Mall of India MCX attains highest market share since Oct 2013 DVRs surge on index inclusion hopes Cox and Kings up 8% on strong Q1 operation performance 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)

2 INDEX MOVEMENTS Index Close Open High Low Close Gain / Loss Var. S&P BSE Sensex 26,103 26,124 26,413 26,075 26, CNX Nifty 7,792 7,785 7,881 7,779 7, CNX 500 6,216 6,209 6,298 6,209 6, CNX Nifty Junior 16,360 16,325 16,632 16,325 16, CNX Midcap 10,810 10,780 10,996 10,780 10, CNX IT 10,468 10,460 10,466 10,396 10,419 (49.55) (0.47) CNX 100 7,715 7,707 7,809 7,705 7, BANK Nifty 15,090 15,100 15,465 15,068 15, NIFTY GAINERS Company Curr. Gain BPCL CIPLA ONGC AXISBANK TATAMOTORS NIFTY LOSERS Company Curr. Loss ITC (1.86) INFY 3,558 3,613 (1.51) HDFC 1,112 1,124 (1.09) HCLTECH 1,522 1,538 (1.04) TCS 2,481 2,500 (0.75) 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 24, Nikkei , Shanghai Composite 2, Straits Times 3, Taiwan TAIEX 9, Yen / INR 59.30

3 GLOBAL MARKET OVERVIEW European stocks advanced today, 18 August 2014, on signs of easing geopolitical tensions in Ukraine. Key benchmark indices in UK, Germany and France were up 0.64% to 1.44%. Asian stocks were mixed on Monday, 18 August Key benchmark indices in South Korea, Taiwan, and Singapore were off 0.06% to 0.71%. Key benchmark indices in China, Japan and Indonesia were up 0.03% to 0.57%. Hong Kong's Hang Seng was flat. GLOBAL NEWS China's foreign-direct investment slumped 17% in July from a year earlier, the Ministry of Commerce said today, 18 August Another data showed that China's new-home prices fell in July in almost all cities that the government tracks. China said on Monday it regretted World TradeOrganisation members had failed to reach an agreement on simplifying global customs rules, a breakdown it said could damage multilateral trade. India last month blocked a global deal to standardise and streamline customs regulations, known as "trade facilitation", after it demanded more freedom to subsidise and stockpile food grains than is allowed by WTO rules. Many WTO member states, including the United States, voiced frustration after India's demands led to the collapse of what was the first major global trade reform pact in two decades. Over the weekend, foreign ministers from Germany, Russia, Ukraine and France reportedly met outside Berlin in a session billed as a prelude to cease-fire talks. Pakistan's capital market has suffered a loss of around 350 billion rupees due to antigovernment protests which have entered the fifth day today. Finance Minister Ishaq Dar said that the protests have hit the national economy which has recently shown sign of recovery after hectic efforts by the PML-N government. ECONOMIC AND POLITICAL NEWS Overnight rates continue to be volatile following the Reserve Bank of India's move to shift from overnight repo to term repo to meet banks' liquidity need. Bankers say the cap on borrowing via the liquidity adjustment facility must be increased. They say the key for success of the new framework was banks' ability to construct a model which could forecast liquidity needs with minimum margin of error. Banks say this is difficult, since loan demand from large borrowers fluctuates. Prime Minister Narendra Modi in his maiden Independence Day speech announced a new financial scheme to help the poor open bank accounts. Under the 'Pradhan Mantri Jan Dhan Yojana' scheme, the person who will open bank account will get a debit card and the family will get Rs 100,000 insurance cover to tide over any unforeseen eventuality. It is still a long way to go for Indian banks seeking to enter Singapore, one of the world's largest financial hubs. With strict entry guidelines, Singapore is insistent on Indian banks maintaining a high quality capital adequacy, an issue that has become a sore point between both countries. As a result, the long-pending review of the India-Singapore Comprehensive Economic Cooperation Agreement (CECA) has remained stuck. The CECA was signed in A review of the trade deal was launched in May 2010 to update and expand it. Both sides seem to have locked horns over giving Indian banks more access to the booming Singapore market.

4 INDUSTRY NEWS With increasing number of drug patent filings along with litigations between innovator companies and generic drug producers, the government is set to revise guidelines for evaluating applications seeking intellectual property right(ipr) for pharmaceuticals. The Controller General of Patents, Design and Trademark, under the Department of Industrial Policy and Promotion (DIPP), has issued draft guidelines for examining patent applications in the field of pharmaceuticals. Differential voting rights (DVRs) securities were up an average of five percent compared to a one percent rise in the benchmark indices on Monday. They typically trade at a single digit discount in developed markets but in India, the discount can be in excess of 50%. Some of the discount narrowed on Monday following a newsreport which indicated that DVRs may be included as part of the BSE's Sensex and the National Stock Exchange'sNifty indices. Exchange spokespersons did not immediately respond to a request for comment on the same. SECTOR PERFORMANCE AND TRENDS Out of 3033 scrips traded over BSE, 1914 advanced & 1026 declined. Sector Var S&P BSE BANKEX 2.36 S&P BSE CAPITAL GOODS 2.33 S&P BSE REALTY 1.37 S&P BSE POWER 1.51 S&P BSE OIL & GAS 2.64 S&P BSE METAL 1.47 S&P BSE CONSUMER DURABLES 1.71 S&P BSE AUTO 1.59 S&P BSE TECK 0.26 S&P BSE IT (0.41) Sector Trend * Auto BFSI Construction Consumer Goods Energy Industrial Manufacturing IT Metals Telecom * Shows trend for current & previous trading sessions S&P BSE FMCG (0.44) S&P BSE HEALTHCARE 1.27 BONDS, T-BILLS & IPOs Country oldest fund house UTI Mutual Fund may revive its initial public offer (IPO) plan after Finance Ministry's nod which is expected soon. Government has stake in the UTI Mutual Fund through public sector banks and insurance companies. State Bank of India, Punjab National Bank, Bank of Baroda and LIC holding stake in UTI Mutual Fund on behalf of government of India.

5 COMMODITIES Gold prices fell by Rs 100 to Rs 28,600 per 10 grams in the national capital today after it declined in global markets on easing tensions over Ukraine amid subdued demand from jewellers and retailers. Silver followed suit and lost Rs 645 at Rs 42,880 per kg on reduced offtake by industrial units and coin makers. CORPORATE ANNOUNCEMENTS Commodity Exchange MCX today said it has achieved the highest market share of 83.4 per cent during the first fortnight of August since the collective impact of a payment crisis at National Spot Exchange Ltd (NSEL) and the Commodity Transaction Tax (CTT) hit the bourse in While MCX's market stood at 86 per cent during the July- September 2013 quarter, at a time when these two factors were playing out, there was a dip thereafter, culminating into a 78.4 per cent market share during the latter half of However, MCX's market share held steady at above 80 per cent beginning April 2014 and clocked a high of 83.4 per cent by the first fortnight of August 2014, an MCX statement said. After oil, Cairn India's prolific Rajasthan block holds significant natural gas reserves, estimated at 1-3 Trillion cubic feet (Tcf), over half of which can be produced. "RDG (Raageshwari Deep Gas) field is estimated to hold 1-3 Tcf of gas in-place with estimated recovery factor of over 50 per cent," the company said in its latest corporate presentation. From strategic investment four decades ago to being reduced to a treasury investment some months earlier, thebajaj Group has made a complete exit from vehicle manufacturer Force Motors thanks to a series of share sale by the former. 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.