2

\

Current Market Scenario

2

\

February Meeting

2

\

8250

2

\

2

\

2

\

2

\

2

\Markets Bounce Back Post Correction

INDEX WATCH

10,859

13,012

28,261

8,570

20, Mar

11846

13620

28879

8780

11, AprINDEX % Change

Nifty 2.4

Sensex 2.1

CNX Midcap 4.6

BSE Small Cap 9.0

• Mid and Small cap stocks see good action

• Global markets are supportive

• Undertone remain bullish

• IPO markets see revival

2

\

Moody Upgrades India Outlook

Stable

Stable

Stable

Old Outlook

StableLowest Investment GradeBBB -Fitch

PositiveLowest Investment GradeBaa3Moody

StableLowest Investment GradeBBB -S&P

New OutlookMeaningRatingAgency

2

\IIP Growth

-4

-2

0

2

4

6

8

April

May

June July

Augus

tSep

tem

ber

Oct

ober

Nov

embe

rD

ecem

ber

Janu

ary

Febru

ary

FY 2015

%

2.6

5.6

4.3

0.9 0.5

3.7

- 2.7

3.9

3.22.6

5.0

2

\Recent Govt. Actions

• Speedy auction of Coal block and Spectrum

• Sets up Mudra Bank to fund the small firms tailors, barbers shops

• Cabinet approves Real Estate Regulatory Bill

• PM Visit to European countries

2

\Major Banks Cut Interest Rate

• SBI, HDFC Bank cuts base rates by 15 basis points and ICICI Bank by 25 basis points

• Base rate cut will make loans cheaper

• Though RBI has cut 50 basis points in repo rate, transmission of rate cut is lower

2

\RBI Maintains Status Quo

• RBI feels rate cut to be passed on by banks before next action

• Next RBI Policy meet on June 2

2

\RBI Liberalise Bond Markets

• Permit companies to issue rupee denominated bonds in overseas markets

• Exchange risk will be born by the buyer

• Bonds will be listed in LSE

2

\Primary Market Set for Revival

• Nineteen companies to tap IPO market soon

• No. of filing with SEBI is increasing

2

\Domestic Mutual Fund Flow s

-5000

0

5000

10000

15000

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

2014

Cr.

- 1602022

7153

10,845

5,364

7,946

5,6004,963

66517150

5840

8481

2

\Ample Global Liquidity

• European Central bank to inject 1 Trillion Euro through monthly bond buying till Sep 2016 at 50 Bn Euro/ month

• Bank of Japan injecting liquidity to the tune of $60 Billion/ month

• It has neutralized impact of US withdrawing QE

2

\

Global Equity Markets On Strong Rally

15.5Hong Kong

5.4Nasdaq

26.3Russia

1.3US – Dow

5.0India

7.9UK

8.9Korea

14.0Nikkei

22.6France

24.7China

26.2Germany

% YTD ReturnCountry

2

\Indian Markets Reasonably Valued

1 Yr Forward P/E ratio

2

\Chinese Market Soars Again

Double in 9 months

2

\India to overtake China

3.23.33.0World

1.2

1.1

3.2

-2.9

1.0

5.2

7.1

6.4

2015

1.21.6Japan

1.61.6Euro Area

2.43.0US

1.10.1Russia

2.72.5Brazil

5.55.5Indonesia

6.97.0China

7.07.0India

20172016Country

GDP Growth Forecast by World Bank

2

\

Stability Returning in Crude Oil

2

\Earnings Season to be Muted

• Markets expects no major positive surprise in upcoming results

• Anemic domestic economic coupled with forex fluctuation may keep earnings subdued

2

\Events to Watch

• Q4 results

• Global markets

2

\

Thank You