ADVICE for the WISE

Newsletter – July’10

2

Economic Update 4

Equity Outlook 7

Debt Outlook 16

Insurance 19

Forex 21

Commodities 22

Index Page No.

Contents

Dear Investor,

Last month, RBI has raised its repo rate by 0.25% to 5.5%

and reverse repo rate by 0.25% to 4%. This has come on

the back of relatively robust GDP growth and continued

concerns on the inflation front. The economic growth in

recent quarters has been quite robust and the forecast of

growth in the next year has been revised upwards recently.

On the other hand inflation has continued to rise in recent

months. May inflation was as high as 10.2% and is

expected to rise further.

As the growth momentum continues and so do worries on

inflation, RBI is expected to raise the rates further in its

July 27th monetary policy announcement. We believe the

impact of the rate hikes on the equity markets to be fairly

muted. However, it will certainly dampen the possibility of

a break out on the higher side for equity markets in the

next 2-3 months. The effect on the debt markets would be

a rise in the yields. Yields may inch further up due to

expectation of another hike.

Positive domestic economic growth outlook augers well

for profit growth of listed Indian companies. Hence profit

driven price increase of Indian equities looks quite

reliable. The other angle of valuation changes is

complicated by differences in the growth rates of Indian

economy and global economy.

The global cues have been fairly mixed through lastmonth. The Eurozone crisis has become broader butless immediate than what it was in Greece alone. Theassessment of the US Federal reserve regarding thehealth of US economy has become more cautious inrecent weeks. Renewed concerns of a real estatebubble in China have dampened investors’sentiments further. A climate of mild caution globallywould be a positive for India. On the other hand panicdue to a specific and sharp negative event on theglobal level might lead to flight to safety on the part ofglobal investors.

As a result, investors should be prepared to moveinto equities in either scenario. Continuity of neutralglobal economic outlook is sufficient to graduallyinvest in Indian equities. On the other hand, eventdriven corrections should be consideredopportunities to move aggressively in Indian equities.

Real estate markets across the country have revivedsignificantly. The medium term outlook on real estateremains positive for tier 1 cities and cautious for tier 2cities. Residential real estate demand has risen due topent up demand from the lack of transactions during2008 and 2009. The improvement in commercial andretail real estate has been more muted owing tooversupply created during the boom period.

3

From the Desk of the CIO…

Advisory services are provided through Karvy Stock Broking Ltd. (PMS) having SEBI Registration No: INP000001512. Investments are subject to market risks. Please

read the disclaimer on slide no.24

Change over

last monthAs on

June 30th 2010

Equity markets

Debt markets

Commodity markets

Forex

markets

Change over

last year

6

6.5

7

7.5

8

Jun-09 Sep-09 Dec-09 Mar-10 Jun-10

(%)

10 yr G-sec yieldLine 2Line 3Line 4Line 5Line 6Line 7Line 8Line 9Line 10Line 11Line 12Line 13Line 14Line 15Line 16

* Indicates SBI one-year FD

17,7015,3121,0319,383

7.54% 5.58%6.00%

2,95118,805

74.1

46.688.7

4.5%4.4%

(5.4%)(3.9%)

(1 bps)28 bps(0 bps)

0.1%2.3%7.7%

0.3%(2.7%)

22.1%23.8%12.1%(5.8%)

53 bps258 bps

(100 bps)

1.4%29.2%72.7%

(2.6%)(6.9%)

BSE SensexS&P NiftyS&P 500 Nikkei 225

10-yr G-Sec YieldCall MarketsFixed Deposit*

RICI IndexGold (Rs/10gm)Crude Oil ($/bbl)

Rupee/DollarYen/Dollar

Snapshot of Key Markets

4

2,500

2,700

2,900

3,100

3,300

3,500

Jun-0

9

Jul-

09

Aug-0

9

Sep-0

9

Oct-

09

Nov-0

9

Dec-0

9

Jan-1

0

Feb-1

0

Mar-

10

Apr-

10

May-1

0

Jun-1

0

RICI index

44

45

46

47

48

49

50

Ju

n-0

9

Ju

l-0

9

Au

g-0

9

Se

p-0

9

Oct-

09

No

v-0

9

De

c-0

9

Ja

n-1

0

Fe

b-1

0

Ma

r-1

0

Ap

r-1

0

Ma

y-1

0

Ju

n-1

0

Rupee/Dollar

5

US

Europe

Japan

Emerging economies

• China’s purchasing managers’ index released by HSBC Holdings Plcdropped to a 4-month low of 50.4 from 52.7 in May as output and neworders dropped outright for the first time since the depths of the globaldownturn in March 2009.

• The Conference Board Consumer Confidence Index which had been on

the rise for three consecutive months, declined sharply in June and now

stands at 52.9, down from 62.7 in May indicating growing uncertainty

about the future state of the economy and labor market .

• US m-o-m unemployment rate edged down to 9.5 per cent in June 10.

• Euro-zone purchasing managers index for June fell to 56.0 from 56.4 inMay indicating a slow pace of growth.

• Unemployment in the Euro zone remained at a record 10% in May for thethird month running with almost 16m people out of work.

• The industrial production grew by 0.8% in April from the March levelwhich is a 9.5% rise on a 12-month comparison.

• Though at a YoY increase of 20%, Japan’s industrial production slipped0.1% in May from the previous month marking the first decrease in threemonths.

• Japan’s unemployment rate increased in May 10 (m-o-m) to 5.2% from5.1% in April 10.

Economy Update - Global

6

Economy Outlook - Domestic

• The GDP growth rate for FY10 came in at 7.4%;better than the estimated 7.2% for FY10 with FY10Q4 GDP figure coming in at 8.6%.

• For FY10, growth in construction sector remainedunchanged at 6.5%, while industry and servicesgrew at 9.3% (vs 8.2% ) and 8.5% (vs 8.7%) year onyear.

• The Finance ministry is targeting FY11 growth at~8.50%. We believe the current target is sustainableas we expect manufacturing and service sectors tocontinue to drive growth in the next few quarters,even as farm output stages a turnaround.

IIP monthly data

GDP growth

• Industrial output as measured by the Index ofIndustrial Production (IIP) grew by 17.6% (y-o-y)in April 10; with growth seen across all sectors.The manufacturing sector in April grew 19.4% asagainst 0.4% a year earlier

• We believe the growth in IIP will shift fromconsumption led sectors to manufacturingsectors as the economy keeps improving.

Economic Outlook - Domestic

• Bank credit growth further improved in the month ofMay as it increased by 17.1% as compared to 17.0%in the month of April 2010

• We expect credit growth to further improve in thenext few quarters and settle at ~20% levels on theback of improving business confidence and declinein risk aversion on the part of banks as theeconomic recovery gathers momentum.

8

13

18

23

28

M ay-09 Jul-09 Sep-09 N o v-09 Jan-10 M ar-10 M ay-10

(%)

Bank Credit Aggregate Deposits

• Inflation as measured by WPI stood at 10.16%(y-o-y) for the month of May-10 as compared to9.59% during April 10

• We expect WPI inflation numbers to increase incoming months due to a direct fall out of the fuelprice hike and wearing off of high base effect butexpect moderation in m-o-m inflation numbersas the RBI continues its monetary tighteningstance.

Growth in credit & deposits of SCBs

Inflation

-4

-2

0

2

4

6

8

10

12

14

Apr-

08

Jul-

08

Oct-

08

Jan-

09

Apr-

09

Jul-

09

Oct-

09

Jan-

10

Apr-

10

(%)

7

8

Equity Outlook

• FIIs invested Rs. 10,244 Cr. in equities in the month

of June alone as the markets remained relatively

stable throughout the month on cues of stable

macroeconomic indicators.

• Mutual Funds sold around Rs. 1,092 Cr in the month

of June as Corporates exited the markets to fulfill

their advance tax liabilities for the quarter.

• Substantial improvement in sales was witnessed in

Q2 & Q3 mainly in consumption oriented sectors of

the economy.

• We expect improvement in sales in upcoming

quarters; especially in the manufacturing space as

domestic demand picks up.

• Recent Q3 & Q4 numbers have beaten estimates

with higher sales and better operational efficiency

aiding profit growth.

• Margins are expected to remain stable in the

following quarters as lower interest costs are offset

by higher raw material costs

FII & MF data Sales growth

Profit growth

Overweight

Neutral

Recommendation Sector Rationale

Sector Outlook

9

Power Positive on Power cos. with installed capacity, Power

equipment manufacturers and EPC contractors

Auto Auto stocks look fully priced. Despite upbeat sales

expectations, expect margins to come under pressure

Capital Goods We expect the capex cycle to once again gather steam as

demand picks up. Positive on manufacturing companies

Oil & Gas The oil companies are expected to benefit from the deregulation

of oil prices; positive on upstream oil companies and refineries.

Banks Credit off take to improve driving core earnings growth and

NPAs to decline as economy recovers.

Cement Despite large capacity build-up, no sustained pressure seen

on sales realization as demand growth is equally strong.

Higher capacity of the existing players will help post strong

profit growth and improved ROE

IT Upside capped in IT stocks due to the depreciating Euro and

higher employee costs compressing profit margins.

Consumer Goods Sector currently enjoys rich valuations and is unlikely to see

any P/E upgrades or earnings upgrades in the medium term.

Our Equity MF Recommendations

Return below one year is absolute and above one year is CAGR

Performance as on 30th June, 2010turn below one year is absolute and above one year is CAGRPerformance as on 30th June, 2010

1 year return

3 year return Since Inception AUM (Cr.) Date of Inception

Core Diversified

HDFC Top 200 Fund 35.4% 17.3% 23.9% 7,220 03/09/1996

Franklin India Prima Plus 31.3% 9.1% 21.0% 1,727 29/09/1994

DSPBR Top 100 Equity Fund 29.8% 13.1% 35.7% 2,679 11/03/2003

Nifty 23.8% 7.1%

Aggressive Equity

DWS Investment Opportunity Fund 31.9% 12.3% 22.7% 178 10/02/2004

HDFC Growth 42.0% 14.1% 23.6% 1,279 11/11/2000

Reliance Growth 40.8% 14.2% 29.6% 7,353 08/12/1995

Mid and Small Cap

IDFC Small & Mid Cap Equity Fund 55.9% N/A 26.6% 650 07/03/2008

Reliance RSF Equity Fund 38.4% 19.5% 23.9% 2,635 12/06/2005

Birla Mid Cap 47.7% 13.3% 36.0% 1,757 16/10/2002

CNX Mid Cap 49.8% 10.8%

10

Our Equity MF Recommendations

1 year return 3 year returnSince

InceptionAUM (Cr.)

Date of Inception

Index/ETFs

Benchmark Nifty BeES 24.8% 7.9% 22.5% 537 28/12/2001

Benchmark Junior BeES 45.0% 9.0% 35.6% 208 21/02/2003

Balanced

HDFC Prudence Fund 44.8% 16.2% 19.9% 3,992 01/02/1994

DSPBR Balanced Fund 31.3% 12.7% 17.9% 672 27/05/1999

Birla SL Balance 95 30.7% 13.3% 24.8% 290 28/03/1995

Sector / Thematic

Sundaram Capex Opportunities 27.5% 7.8% 21.0% 542 29/09/2005

Reliance Banking Fund 44.5% 23.9% 35.6% 1,121 28/05/2003

Reliance Diversified Power Sector Fund 29.1% 23.1% 40.3% 5,320 10/05/2004

Nifty 23.8% 7.1%

Crisil Balanced Index 16.5% 8.5%

Return below one year is absolute and above one year is CAGRPerformance as on 30th June, 2010

Return below one year is absolute and above one year is CAGRPerformance as on 30th June, 2010

11

Motilal Oswal – MOSt 50 NFO

Overview

A fundamentally Weighted ETF based on the S&P

CNX Nifty Index. The MOSt 50 basket consists of all

50 stocks of Nifty but in a proportion determined by

using a pre-defined methodology that assigns

weights based on stock’s fundamentals (ROE, net

worth, retained earnings & price) against market cap

based weights used in Nifty.

Issue Terms

• Entry Load : Nil

• Exit Load : Nil

•

Minimum Application amount :Rs. 10,000 & in

multiple of Rs. 1 thereafter

• NAV offer price :During NFO period MOSt Shares

M50 (units) will be allotted at 1/100th of M50 basket

Value

• NFO Period : 30th June 2010 to 19th July 2010

Positives

• Higher allocation to stocks with superior

fundamentals & reasonable valuations giving a

higher upside potential.

• It combines the benefit of active algorithmic

allocation & passive execution protecting

investors from any fund manager bias

• Lower cost structure as compared to a traditional

investment product

• Real time prices – ETFs can be traded on real

time ‘spot’ prices on the exchange, unlike mutual

funds which can be bought/sold only at end of day

NAVs

• Speedy & Easy execution – Real time execution of

buy-sell orders through any broking account thus

offering intraday liquidity

• No Entry or Exit loads

12

13

• The structure is for those investors who are mildly bullish on the market and would not like to take "end of the period" or

"point-to-point" risk on the market.

Tenure15 / 18 Months

Participation Rate110%

Principal Protection100%

Initial LevelAverage of Nifty at 1M, 2M, 3M

Final LevelAverage of Nifty at 13M, 14M, 15M

KO Rebate14% [absolute]

KO Level120%

If KO is not triggered1.1 * Max { 0, Final Level/Initial Level - 1}

Barrier Observation Frequency Monthly from 4M to 12M

Nifty Linked Debentures

Nifty linked - Knockout structure

14

Option 1 Option 2 Option 3 Option 4

Nifty depreciates or

appreciates by 0%

Nifty appreciates

by 10%

Nifty appreciates

by 19.99% Knock Out @ 20%

Indicative Yield 0% 11% 21.99% 14%

Tenure (Days) 548 548 548 548

Indexation Rate 6.32% 6.32% 0.00% 0.00%

Upfront Expenses 2% 2% 2% 2%

Face Value (Rs.) 100 100 100 100

Investment Amount 102 102 102 102

Value of FV after indexation 106.32 106.32 100.00 100.00

Absolute Return (%) 0.00 11.00 21.99 14.00

Total 100 111 121.989 114

Taxable Amount (LTGC with indexation) 0.00 4.68 19.99 12.00

Tax Rate 22.66% 22.66% 11.33% 11.33%

Tax Incidence 0.00 1.06 2.26 1.36

Variable Expenses 0% 0% 0% 0%

Cash Flow (net of taxes) 100.00 109.94 119.72 112.64

Absolute Post Tax Return (%) 0.00 9.94 19.72 12.64

XIRR 0.00% 6.52% 12.74% 8.25%

The indicative yields are expected to be in the range of 0% to 12.60%. The yield mentioned in the calculation is only indicative and inno way assures the exact yield of the portfolio. The exact portfolio would be determined after the portfolio is constructed. PastPerformance may or may not be sustained in future Please consult your tax advisor before investing.

Payoff Structure – Scenario Analysis

Investment Rationale

• Our in house view on Nifty is bullish, based on our assessment that the domestic economy will grow at near

double digit levels led by strong growth in industry and services and resurgence in agriculture which will help drive

corporate earnings growth at a CAGR of 18% to 20% over the next three years.

• The product provides 110% participation on the Nifty and also provides 100% capital protection; thereby protecting

the downside completely and providing returns higher than actual Nifty performance.

• In case of any sharp up swings, the product ensures a coupon of 14%.

• There is no end of period risk.

Risks

• Credit risk of the issuer. However, the debentures will be secured partly by way of creation of charge on

immovable property and partly by way of hypothecation / floating charge on the current assets and / or receivables

and / or other movable tangible and / or intangible assets and/or any other asset of the issuer and / or its affiliates

subject to the satisfaction of the debenture trustee.

Taxation

• As it is a listed debenture, it will be taxed at 10.3%

Nifty Linked Debentures

15

16

Debt Outlook

3

5

7

9

1 4 7 10 13 16 19

Yrs

(%) • The benchmark 10 yr G-sec yield increased from

7.4% in May to settle around 7.54% in the month

of June. With high inflation numbers, we see the

RBI tightening its monetary stance in the coming

review.

• We believe that future monetary tightening

measures is unlikely to a major impact on the

longer end of the yield curve. We expect the 10 yr

G-sec yields to remain in the broad range of 7.25

– 8.0% in the next few quarters.

10-yr G-sec yield

Yield curve

• We expect yields at the longer end of the yield

curve to remain stable. High inflation, monetary

tightening and rising credit growth will keep the

yields at the longer end range bound.

• Short term liquidity concerns arising from 3G

auctions and advance tax payments will keep

yields at the shorter end at elevated levels.

• Due to rising inflationary expectations, we expect

further interest rate hikes by RBI in the July policy

review.

6

6.5

7

7.5

8

8.5

Jun-09 Sep-09 Dec-09 Mar-10 Jun-10

(%)

Debt Strategy

We recommend liquid plus funds for short-term parking of

money (up to two months). We expect returns from this

category of funds to improve as the RBI continues to exit

its loose monetary stance and as liquidity becomes tight.

OutlookCategory Details

Liquid Plus

Long Tenure Income Funds

We expect yields at the longer end of the yield curve to

remain stable. Yields may remain in the broad range of

7.25 – 8.0% in the next few quarters. This may be an

attractive investment once the inflationary pressure in the

economy settles down.

MIPs

MIPs should be considered as an investment option; given

the low returns in debt instruments. A 15%-20% equity

kicker should deliver superior returns as compared to

pure debt instruments.

17

Short Term Bond Funds

We recommend short term bond funds with a 6-12 month

investment horizon as we expect them to deliver superior

returns due to high YTM and concerns over credit quality

ease as the economy recovers, thereby prompting ratings

upgrade.

Fund3 months

(%)6 months

(%)1 year (%)

Since Inception

AUM (Cr.)Date of

Inception

MIPs

HDFC MIP LT 3.3% 5.0% 15.3% 12.6% 6,161 29/12/2003

Birla SL MIP II Savings 5 1.6% 2.7% 6.5% 8.7% 1,793 22/05/2004

Liquid Plus Funds

Reliance Medium Term Fund 1.3% 2.5% 4.9% 6.9% 13,942 25/09/2000

HDFC CMF- Treasury Advantage Plan 1.2% 2.3% 4.7% 6.9% 31,521 03/01/2000

Birla SL Floating Rate - LTP 1.3% 3.0% 7.2% 6.9% 587 05/06/2003

Short Term Funds

Birla Dynamic Bond Fund 1.6% 3.4% 6.8% 8.2% 8,613 30/09/2004

Reliance Short Term Fund 1.6% 2.8% 5.9% 7.8% 8,613 23/12/2002

Reliance RSF Fund – Debt Option 1.5% 3.1% 7.2% 5.0% 2,890 12/06/2005

Kotak Credit Opportunities Fund NA NA NA 6.3% 283 11/05/2010

Templeton India Income Opportunities Fund

2.2% 4.9% NA 9.9% 2,653 21/12/2009

Income Funds

ICICI Pru Income Plan 1.6% 1.7% 3.3% 9.7% 789 19/06/1998

Canara Robeco Income Fund 2.6% 3.0% 4.9% 9.2% 217 19/09/2002

Returns are absolutePerformance as on 30th June, 10

Our Debt MF Recommendations

18

19

Our Top Life

Insurance Recommendations

Term PlansBirla Sun Life High Net Worth Term Plan*

HDFC Standard Life – Term Assurance PlanICICI Pru Life Insurance Pure Protect

Metlife – Suraksha Plus

Pension PlansTATA AIG Invest Assure Future Plus

Child Plans

Kotak Headstart Future Protect

Birla Sun Life Children Dream Plan

Max New York Life Shiksha Plus

Annuity PlansICICI Pru Life Immediate Annuity

ULIPsKotak Platinum EDGE

Birla SL Platinum Premier

Our Top Health

Insurance Recommendations

Family CoverStar Family Health OptimaApollo Munich Easy Health Standard

Annual PremiumRs.6,875

Rs.9,999

Both policies cover self, spouse and 2 dependent childrenEntry Age for Apollo is 3 months – 60 yrsEntry Age for Star Health is 5 months – 60 yrs

Sum AssuredRs. 5 LRs. 5 L

Health Cover – Senior CitizensStar Health Senior Citizens Red Carpet

Sum AssuredRs. 2 L

Annual PremiumRs. 9,326

Loss of income coverageTATA AIG Life Health First

Annual PremiumRs. 13,605

Entry age is 60-69 years

Critical IllnessHDFC Critical Care Plan

Sum AssuredRs. 5 L

Annual PremiumRs. 3,465

Assuming an individual of 30 yrs of age and policy term of 20 years

20

Sum AssuredRs. 2 L

21

Forex

•The Rupee appreciated v/s the US dollar and the Euro

in the month of May due to uncertainties emerging in

Euro zone economies and slow pace of recovery in

the U.S..

• Our medium term view is that the rupee is likely to

strengthen further in 2010. Higher interest rates in

India would attract large capital flows. Moreover the

government is expected to simplify the rules on

foreign inflows to facilitate larger foreign capital

inflows in the form of FDI

Rupee movement vis-à-vis other currencies (M-o-M) Trade balance and export-import data

Capital account balance

• Exports for the month of May increased by 35.1%

y-o-y while imports increased by 38.5% increasing

the trade deficit to USD 11,292 Mn.

• Capital account balance was positive in the first

nine months for FY10

• We expect the capital account balance to remain

positive due to expectations of higher interest

rates; thereby attracting inflows and buoyant

equity markets

22

Commodities

40

70

100

Jun-09 Sep-09 Dec-09 Mar-10 Jun-10

Oil

($ /

bb

l)

Precious

Metals

Oil & Gas

Agri

• Prices of essential commodities have seen a marginal

increase in the last month. But, due to expectations of

higher production output, we see the prices declining in the

coming months

• A favorable Rabi output to further cool prices in the medium

term

Base

Metals

• The data released regarding consumer confidence, jobless

claims and lower vehicle demand in the last month suggest

a decrease in metal prices in the shorter term but as the

markets stabilize over the next six months, we could expect

a modest uptrend in prices.

• Gold likely to trade higher as low interest rates in the

west enhances Gold’s alternate investment demand

Gold prices likely to average $1,200/oz on Comex and

Rs. 17,900/10 gm on MCX, for the next six months.

• Though last month the crude prices increased by 7.7%, but

they are expected to trade lower in Q2 due to no significant

seasonal demand (Q2 is the maintenance season for

refineries)

• Natural gas prices to trade lower in Q2 owing to speculation

over weak demand.

800

850

900

950

1000

1050

Jun-0

9

Jul-

09

Aug-0

9

Sep-0

9

Oct-

09

Nov-0

9

Dec-0

9

Jan-1

0

Feb-1

0

Mar-

10

Apr-

10

May-1

0

Jun-1

0

RICI Agri

1,500.00

1,700.00

1,900.00

2,100.00

2,300.00

2,500.00

2,700.00

Jun-0

9

Jul-

09

Aug-0

9

Sep-0

9

Oct-

09

Nov-0

9

Dec-0

9

Jan-1

0

Feb-1

0

Mar-

10

Apr-

10

May-1

0

Jun-1

0

RICI Metal

14000

15000

16000

17000

18000

19000

20000

Gold 10 gm

23

Why Karvy Private Wealth?

KARVY is an integrated financial services group, with Karvy Private Wealth being one of its arms. The

entire group’s strengths are leveraged to provide end-to-end wealth advice to Karvy Private Wealth

clients. For example, SME clients can receive advice on their personal wealth while also getting

investment banking advice from the I-banking arm of Karvy.

Leveraging breadth of related businesses that KARVY is in

Maximum choice of products & services

KARVY Private Wealth offers the widest breadth of products and services, providing clients a variety of

options through a single contact. Products and services include equities, debt instruments,

commodities, Mutual Funds, Insurance, Structured Products, Financial Planning, real estate advice,

etc.

Set to have business in 20 - 25 cities we are poised to cater to families and businesses spread across

multiple cities in India providing them with combined and integrated advice. For one-off services, if

required, we can also leverage KARVY Group’s presence in 400 cities.

All-India presence

We ensure that our recommendations are 100% product-neutral and unbiased because unlike other

players, we are neither tied up with any one particular insurance company nor do we have our own

mutual funds.

Product-neutral advice

24

Disclaimer

The information and views presented here are prepared by Karvy Private Wealth or other Karvy Group

companies. The information contained herein is based on our analysis and upon sources that we consider

reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal

information and we are not responsible for any loss incurred based upon it.

The investments discussed or recommended here may not be suitable for all investors. Investors must make

their own investment decisions based on their specific investment objectives and financial position and using

such independent advice, as they believe necessary. While acting upon any information or analysis mentioned

here, investors may please note that neither Karvy nor any person connected with any associated companies

of Karvy accepts any liability arising from the use of this information and views mentioned here.

The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the

above-mentioned companies from time to time. Every employee of Karvy and its associated companies are

required to disclose their individual stock holdings and details of trades, if any, that they undertake. The team

rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares

or other securities till such a time this recommendation has either been displayed or has been forwarded to

clients of Karvy. All employees are further restricted to place orders only through Karvy Stock Broking Ltd.

The information given in this document on tax are for guidance only, and should not be construed as tax

advice. Investors are advised to consult their respective tax advisers to understand the specific tax incidence

applicable to them. We also expect significant changes in the tax laws once the new Direct Tax Code is in force

– this could change the applicability and incidence of tax on investments

25

Contact Us

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