2

\

Current Market Scenario

2

\

2

\

2

\

2

\Highlights - 2014

• An year to remember

• Stable Govt. at the Centre

• Rout in Crude oil

• Recovery in US Economy

2

\Sensex Annual Performance

-60

-40

-20

0

20

40

60

80

100

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Year

% R

etu

rn 26

73

13

42

47 47

-52

81

17

-25

9

30

2

\2014 Performance – Other Indices

52.0BSE Auto

16.5BSE IT

8.5BSE Real Estate

18.3BSE FMCG

65.0BSE Bankex

47.4BSE Healthcare

7.9BSE Metals

69.2BSE Smallcap

54.7BSE Midcap

%Index

2

\

-15

-10

-5

0

5

10

15

20

25

30

2003 2005 2007 2009 2011 2013

FII Flows FII Flows -- Equity Equity

billion

US $

17.65

-11.97

17.45

29.3

- 0.35

24.3

20.1

16.1

2

\

-10

-5

0

5

10

15

20

25

30

2007 2008 2009 2010 2011 2012 2013 2014

FII Flows FII Flows -- Debt Debt

billion

US $

-7.9

2.32.6

1.8

10.1

26.2

8.66.6

2

\Markets On Consolidation

INDEX WATCH

11068

12191

27350

8224

Dec 12

11198

12583

27458

8284

Jan 09INDEX % Change

Nifty 0.7

Sensex 0.3

CNX Midcap 3.2

BSE Small Cap 1.1

• Govt. action on reforms bring hope for investors

• Global markets volatile

• Foreign investors on sidelines

• Crude Oil continue to decline

2

\Govt. Walks Through Ordinance Way

• Logjam in Rajya Sabha forced Govt. to

take ordinance way

• Crucial reforms like hike in FDI limit in

insurance, Land Acquisition Act are

implemented through ordinance route

• Ordinance has to be passed in parliament

before six months

2

\Crude Oil – Where is Bottom ?

50 % Fall inFour Months

2

\WPI at Zero %

2

\WPI – Historic Chart

2

\Wholesale Price Inflation Index

Weight age

64.9

Manufactured Products (Bakery items, Liquor, cotton

yarn, polyster yarn, tyres, plastic

products, chemicals, paints,

metals, steel, TV, fan, computer, paper, plywood, building

products etc)

14.9Fuel & Power

20.1Primary Article (Food & Non Food)

Weightage %Items

2

\Consumer Inflation Cooling Off

Consumer Price Inflation

0

2

4

6

8

10

12

Nov-

13

Dec-

13

Jan-

14

Feb-

14

Mar-

14

Apr-

14

May-

14

Jun-

14

Jul-

14

Aug-

14

Sep-

14

Oct-

14

Nov-

14

Period

%

11.1

9.88.7

8.0 8.3 8.5 8.2 7.3 7.9 7.76.4

5.5

4.3

2

\Consumer Inflation Index Weight age

26.3Miscellenous(Education, Medical care, Transport, Recreation)

4.7 Clothing,Footwear, Bedding

9.7 Housing

9.4 Fuel & Light

49.7 Food, Beverage,Tobacco

Weightage %Items

2

\Consumer Inflation – Historical Chart

2

\

Rupee Relatively Stable

Rupee Vs EuroRupee Vs Pound

Rupee Vs US $Rupee Vs Yen

2

\Strong Dollar Index

2

\Will Greece exit Euro Zone ?

• Austerity policy of current Govt. is

unpopular among Greece people

• Snap election on Jan 25

• If opponent party wins election, austerity

will be diluted which may be unacceptable

to Euro Zone

• Greece has 175 % Debt to GDP Ratio

2

\Greece Bond – Still No Major Panic

2

\

Domestic Mutual Fund Flows

-5000

0

5000

10000

15000

Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2014

Cr.

- 1935 - 160

2022

7153

10,845

5,364

7,946

5,600 4,9636651

2

\

49558 Cr

2

\Sector Churning To Happen

• Domestic related sectors like financials,

infra to do well

• IT and Pharma may underperform on high

valuations and cross currency issues

2

\Exciting Events Lined Up

• 3rd Quarter Results

• US President Obama visiting India on Jan 26

• RBI Policy Meet on Feb 3

• Union Budget on Feb Last

2

\

Thank You