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India-Global Market Summary 1-1-2014 Sensex drifts lower on macroeconomic worries. Market edged lower on the first trading session of 2014 after the latest data raised concerns about the government's fiscal deficit and after another data showed a muted growth in the core sector in November 2013. The Sensex alternately swung between positive and negative zone during the course of the trading session. Among the 30-share Sensex pack, 15 stocks gained and rest of them declined. Nifty fell 0.04% to 6301.65 and Sensex fell 0.14% to 21140.48 In the foreign exchange market, the rupee edged lower against the dollar on the first trading session of the New Year. On the macro front, the eight core industries with a combined weight of 37.90% in the Index of Industrial Production (IIP) has shown an increase of 1.7% in November 2013. During April- November 2013, the eight-core sector has shown growth of 2.5% against 6.7% growth registered in April-November 2012. The government's fiscal deficit touched Rs 5.1 lakh crore during April-November 2013, or 93.9% of the full-year target, government data showed on Tuesday, 31 December 2013, raising concerns that India may overshoot its ambitious target of containing fiscal deficit at 4.8% of GDP this year. Net tax receipts touched Rs 3.96 lakh crore in the first eight months of the current fiscal year to March 2014, while total expenditure was Rs 10.21 lakh crore. In the annual budget presented in February, Finance Minister P. Chidambaram had committed to narrow the fiscal deficit to 4.8% of gross domestic product (GDP) this fiscal year from 4.9% a year ago. The next major trigger for the market is Q3 December 2013 corporate earnings. The Q3 earnings season will begin around mid-January 2014 and continue till mid-February 2014. Investors and analysts will closely watch the management commentary that would accompany the result to see if there is any revision in their future earnings forecast of the company for the current year and/or the next year. The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014.

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Page 1: Market summary pptx  1.1.2014

India-Global Market Summary 1-1-2014

• Sensex drifts lower on macroeconomic worries. Market edged lower on the first trading session of2014 after the latest data raised concerns about the government's fiscal deficit and after another datashowed a muted growth in the core sector in November 2013. The Sensex alternately swungbetween positive and negative zone during the course of the trading session. Among the 30-shareSensex pack, 15 stocks gained and rest of them declined. Nifty fell 0.04% to 6301.65 and Sensex fell0.14% to 21140.48

• In the foreign exchange market, the rupee edged lower against the dollar on the first trading sessionof the New Year.

• On the macro front, the eight core industries with a combined weight of 37.90% in the Index ofIndustrial Production (IIP) has shown an increase of 1.7% in November 2013. During April-November 2013, the eight-core sector has shown growth of 2.5% against 6.7% growth registered inApril-November 2012.

• The government's fiscal deficit touched Rs 5.1 lakh crore during April-November 2013, or 93.9% ofthe full-year target, government data showed on Tuesday, 31 December 2013, raising concerns thatIndia may overshoot its ambitious target of containing fiscal deficit at 4.8% of GDP this year. Net taxreceipts touched Rs 3.96 lakh crore in the first eight months of the current fiscal year to March 2014,while total expenditure was Rs 10.21 lakh crore.

• In the annual budget presented in February, Finance Minister P. Chidambaram had committed tonarrow the fiscal deficit to 4.8% of gross domestic product (GDP) this fiscal year from 4.9% a yearago.

• The next major trigger for the market is Q3 December 2013 corporate earnings. The Q3 earningsseason will begin around mid-January 2014 and continue till mid-February 2014. Investors andanalysts will closely watch the management commentary that would accompany the result to see ifthere is any revision in their future earnings forecast of the company for the current year and/or thenext year.

• The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on28 January 2014.

Page 2: Market summary pptx  1.1.2014

• Shares of a number of small-cap companies surged. The market breadth, indicating the overall health of the market, was strong. Realtystocks edged higher on renewed buying. Telecom stocks also rose. IT stocks edged lower. Shares of private sector banks declined. Sharesof PSU banks rose.

• Canara Bank rose 1.28%. The state-run bank said before market hours that it has allotted 1.82 crore shares on 31 December 2013 toGovernment of India on preferential basis.

• Lakshmi Vilas Bank rose 4.41% after the bank said its board will meet on 3 January 2014 to consider a rights issue of shares. Thecompany made the announcement on 31 December 2013.

• Maruti Suzuki India was up 0.45% after the company said its total vehicles sales declined 4.4% to 90,924 units in December 2013 overDecember 2012.

• Coromandel Engineering Company was locked at 5% upper circuit after the company scheduled a board meeting to consider rights issueof equity shares

• Mahindra & Mahindra rose after the company's total tractor sales rose 15% to 17,037 units in December 2013 over December 2012

• Atul Auto hit an upper circuit limit of 5% after the company said its total vehicle sales jumped 23.42% to 3,510 units in December 2013over December 2012.

• CRISIL fell 2.27% on profit booking after the stock jumped 6.60% in the preceding three sessions

• Ashoka Buildcon spurted 14.92% after the company said it has received letters of acceptance for project worth Rs 596.28 crore in SouthIndia

• Coromandel Engineering Company said that a meeting of the rights issue committee of its board of directors will be held on 3 January2014, to consider the terms of the proposed issue of equity shares on rights basis.

• Lakshmi Vilas Bank said that its board of directors will meet on 3 January 2014, to consider and if thought fit, to approve the proposal forfurther issue of equity shares on rights basis, to existing shareholders of the bank

• Mindtree said that its chairman Subroto Bagchi has gifted one-third of his shareholding in Mindtree to his spouse Susmita Bagchi.

• Mobile Global said that its board of directors vide their circular resolution dated 30 December 2013, approved the declassification ofArvind Rao as promoter of the company.

• Bodal Chemicals' board of directors at a meeting held on Tuesday allotted 30 lakh, 9% non cumulative redeemable preference shares atface value of Rs 10 each aggregating Rs 3 crore to non-promoters

• Sutlej Textiles and Industries said that the rating of the company's long term bank facilities (instruments) has been upgraded by CreditAnalysis & Research CARE to CARE A from CARE BBB

• Cressanda Solutions on Tuesday, 31 December 2013 said that it has fixed 15 January 2014 as the record date for 10-for-1 stock split.

• Aarti Industries said that it has received orders from Gujarat Pollution Control Board (GPCB) for closure of manufacturing activities attwo of the various plant locations

• Maa Jagdambe Tradelinks said that its board of directors has fixed 10 January 2014 as the record date for 5-for-1 stock split

Page 3: Market summary pptx  1.1.2014

Global news

• European and Asian markets were closed today for New Year Holidays. A

Chinese manufacturing index slipped to a four-month low in December,

underscoring challenges for President Xi Jinping as he tries to sustain economic

momentum while rolling out reforms. The Purchasing Managers' Index was at

51, the statistics bureau and the logistics federation said today, 1 January 2014, in

Beijing.

• US stocks rose to records on Tuesday, 31 December 2013, with the Standard &

Poor's 500 Index posting its biggest annual advance since 1997, as gains in

consumer confidence and housing prices bolstered confidence in the world's

largest economy. The Conference Board's index of US consumer confidence rose

to 78.1 in December from 72 in the prior month while the S&P/Case-Shiller

index showed property prices in 20 cities rose in October from a year ago by the

most in more than seven years.

• The US Federal Reserve said after a two-day monetary policy review on 18

December 2013 that it will cut its monthly bond purchases to $75 billion from

$85 billion starting in January 2014 amid an improved outlook for the job market

in the world's largest economy. The US central bank is poised to continue

winding down its stimulus measures gradually over the next year.

Page 4: Market summary pptx  1.1.2014

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