HINDUJA BANK (SWITZERLAND) LTD BUILDING WEALTH, ENABLING ENTERPRISE WEEKLY MARKET COMMENTS INDIA. 29 August2016

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1 BUILDING WEALTH, ENABLING ENTERPRISE WEEKLY MARKET COMMENTS INDIA 29 August2016

2 WEEKLY MARKET COMMENT - INDIA Summary The Indian markets declined this week in line with the cautious mood in the global markets ahead of the comments from US Federal Reserve on Friday.The benchmark Sensex close down 1.05% at 27,782.The market is also discounting a higher GST rate at 22% or more than the earlier estimate of a GST cap at 18%.The Sensex is likely to correct upto 27,100 in the near term as 28,000 is acting as a stiff resistance. Industry News & Trends Union shipping minister directs major ports to develop inland water ways. Masala bonds to ease capital constraints for banks: Fitch Multinational seed companies in India form a new lobby group Federation of Seed Industry of India (FSII) to protect their intellectual property rights and reduce government regulation of seed industry in India. The RBI will appoint a panel to review the existing framework for hedging of commodity price risk by residents in overseas markets. India's steel output rises 8.1% in July.Capacity utilisations remain stagnant at 68.3% on year-on-year basis. 2

3 HEADLINES Economics & Politics Cabinet approves revised Double Tax Avoidance Agreement (DTAA) between India and Cyprus. Government announces plans to provide INR 900 Billion to Self Help Groups over the next two years. Government examining proposal to ban cash transactions over INR 300,000 as a measure to curb black money. Union Finance minister calls for quick action from all concerned to implement Insolvency and Bankruptcy code. Indian railways increases short distance coal freight rate by 8-14%. RBI should cut policy rates by 200 bps to help the cash-starved MSME sector : Nirmala Sitharaman, Minister of Commerce and Industry. Indian Railways has sought finance ministry's approval to raise US$ 500 Million through rupee-denominated or masala bonds to invest in infrastructure projects. Govt may advance Parliament session to get GST laws approved. Corporate Vodafone India is in exploratory talks around a possible merger with Idea Cellular Hotel Leela Ventures said it is seeking shareholders' nod to sell properties in Chennai and Delhi to pay off debt Escorts to focus on core businesses after divesting auto parts business SpiceJet adds new flights connecting the North-Eastern States of India. Shipping Corporation to spend INR 17 Billion on capex in FY17 British Petroleum unit to sell 8.53% stake in Castrol India Lupin subsidiary gets permission to market generic Zyvox tablets Ujjivan Finance applies to RBI for small finance bank license Fortis Healthcare approves demerger of diagnostics business R-Com, Aircel likely to sign merger deal by September first week 3

4 INDICES WEEKLY PERFORMANCE Indices Gainers & Losers 4

5 INFORMATION Hinduja Bank (Switzerland) Ltd is owned by the Hinduja Group, one of India s largest diversified business groups established in The Bank is headquartered in Geneva where it was established first as a finance company in 1978 before receiving its banking licence in The bank is regulated by the Swiss Financial Market Supervisory Authority (FINMA), is a member of the Swiss Bankers Association, the Association of Foreing Banks in Switzerland and the International Capital Markets Association. The Weekly Market Comments India is prepared by: Paterson Securities Pvt Ltd #3, Vhavani Mansion, 4 th Lane Nungambakkam High Road Chennai 34 India Paterson Securities Pvt Ltd is a subsidiary of Hinduja Bank (Switzerland) Ltd: Hinduja Bank Switzerland Ltd Products & Portfolio Management Place de la Fusterie 3bis 1211 Geneva 1 Switzerland Tel: Fax: Disclaimer The information in this publication was developed using data which Hinduja Bank (Switzerland) Ltd assumes to be accurate; nevertheless, Hinduja Bank (Switzerland) 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. 5