05 December 2013 Contents

Outlook for India top picks Sector Review Stock Review Earnings Release Technical Commentary Performance & Valuation Tables Definitions Disclosure and disclaimer Sirshendu Basu Chief Investment Strategist Nishit Sheregar Equity Strategist Shishir Narsinghani Associate Strategist Soumen Das Senior Technical Strategist Pg 1 Pg 2 Pg 3 Pg 7 Pg 8 Pg 14 Pg 16 Pg 17

Outlook for India top picks

Tech Mahindra, Indraprastha Gas and Maruti Suzuki were the best performers over the month, up 11.1%, 3.0% and 1.7% against their respective sectors. Since inception, the top performers in absolute terms are Tech Mahindra (c.71%), ITC (c.46%), and Cipla (c.29%). On a sector agnostic basis, our top picks are Cipla, Bharti Airtel, ICICI Bank and ITC. The Indian markets closed lower last month, impacted by speculation around when the US Federal Reserve could start reducing the level of QE. Sentiment was, however, supported on hopes that oil prices may fall after Iran clinched a deal with world powers. Foreign institutional investors invested c.INR 80bn in November 2013 in the local equity market. The Indian economy grew a higher-than-expected 4.8% y/y, during Q2FY14, aided by an uptick in agriculture, services and construction. Good monsoon rainfall is expected to have supported the agriculture

Performance of our Top Sector picks Performance relative to MSCI India Sectors

Total Returns Name CIPLA LARSEN & TOUBRO TECH MAHINDRA MARUTI SUZUKI IN RELIANCE INDUSTRIES ICICI BANK ACC BHARTI AIRTEL ITC INDRAPRASTHA GAS Average MSCI INDIA Index 801.7 Price 390.6 1054.7 1690.9 1663.3 861.9 1085.4 1100.5 331.0 319.2 280.4 Stock -5.9% 8.9% 10.7% 1.5% -5.8% -4.0% -4.3% -9.4% -2.0% 0.2% -1.0% -1.4%

1M Performance Sector -0.4% 9.3% -0.4% -0.2% -4.2% -2.5% 0.3% -5.1% -2.4% -2.8% -0.8% Relative -5.4% -0.3% 11.1% 1.7% -1.7% -1.5% -4.6% -4.4% 0.4% 3.0% -0.2%

sector and the strong growth in services was led by a 10% y/y expansion in financial services. Both the first phase of state elections (8 December) and the Reserve Bank of Indias monetary policy meeting (18 December) will be watched closely by the markets.

After the recent strong performance and with consideration to the various upcoming events such as the elections, we expect markets to be more volatile over the next few months. We would advocate that underweight investors consider using any pullback

Data as of 03 December 2013 Source: Bloomberg, Standard Chartered 1M = 30 days rolling month

to add exposure to appropriate levels. comments can be found at the rear of the report.

Technical charts and

Top sector picks

India Top10 CIPLA LTD LARSEN & TOUBRO TECH MAHINDRA MARUTI SUZUKI RELIANCE INDS ICICI BANK LTD ACC LTD BHARTI AIRTEL ITC LTD INDRAPRASTHA GAS
Source: Standard Chartered

Ticker CIPLA IN LT IN TECHM IN MSIL IN RIL IN ICICIBC IN ACC IN BHARTI IN ITC IN IGL IN

Rationale Focus on geographical expansion through direct presence, is growth and margin positive. Strong sales growth, resilient order book and margin expansion are the key drivers. Healthy deal pipeline and improved demand outlook are long term positive. Recent up move warrants caution. Strong new product pipeline, export growth and margin expansion are key triggers. Large gas finds and increase in gas pricing are key positives. High capital adequacy, stable asset quality and traction in retail loan growth are drivers. Demand outlook remains muted, price recovery key to improvement in stock price. India business continues to gain traction, global business metrics improving. Muted volume growth and likely margin pressure are near term worry. Volume growth remains strong but costly imported gas can impact margins.

Equity Strategy India Top10 Review

India Sector performance MSCI India Index
Total Returns MSCI INDIA Index Healthcare Industrials Information Technology Consumer Discretionary Energy Financials Materials Telecommunication Svs Consumer Staples Utilities Sector 1M -0.4% 9.3% -0.4% -0.2% -4.2% -2.5% 0.3% -5.1% -2.4% -2.8% Performance YTD 24.3% -9.0% 52.9% 8.0% 0.8% -10.0% -8.5% 32.2% 15.7% -13.0% 0.9% 10.6% 1.0% 1.2% -2.8% -1.1% 1.6% -3.7% -1.0% -1.4% 0.0% Relative 1 MPerformance YTD 17.6% -15.8% 46.1% 1.3% -5.9% -16.7% -15.2% 25.5% 8.9% -19.7% 0.0%

Sector Review
The MSCI India Index was down 1.4% for the month of November. Industrials, Materials and Consumer Discretionary outperformed, while Telecommunication Services and Energy underperformed.

Industrials (Overweight): We remain positive on the sector on expectation that the domestic economic downturn may have bottomed out. The better than expected Q2 FY14 GDP growth and eight month high HSBC PMI index are testimony of the same. Furthermore, the sectors focus on international growth and reasonable valuations are both positives.

Index -1.4% 6.7% Data as of 03 December 2013 Source: Bloomberg, Standard Chartered 1M = 30 days rolling month

Market is near an all time high MSCI India Index

Information Technology (Overweight): The sector continues to outperform, supported by the continuing improvement in outlook for economic activity in various key markets. Visibility of revenue and a strong renewal deal pipeline are also key supports. After the recent sharp run up, however, we expect the sector to consolidate and so turn more cautious for the short term.

Financials (Neutral): We remain watchful on the sector, because we expect another policy
Source: Bloomberg, data as on 03 December 2013

rate hike in December and the pipeline of stressed assets continues to be high. Furthermore, with slow economic growth, the recovery in loan
MSCI India Sector YTD Performance (USD)

growth is expected to be muted. We are looking for opportunities to add exposure, though asset quality is still a concern.

Consumer Staples (Underweight): Consumer demand continues to be weak, negatively impacting the sector. Also, the increase in prices of key inputs and deceleration in high margin products is likely to affect margins. We consider the sector to be relatively expensive and are Underweight.

Source: Bloomberg, data as on 03 December 2013

India Sector Views

India Sectors Health Care Industrials Information Technology Consumer Discretionary Energy Financials Materials Telecommunication Svs Consumer Staples Utilities Weight OW OW OW N N N N N UW UW Rationale Expansion of geographical footprint and new product launches are the key drivers. Expected bottoming out of economic downturn, focus on global business and reasonable valuation. Recovery of economic growth in US and Europe and expected win of large long term renewal deals are positive. Lukewarm festive season demand and continued moderation of growth are concerns; rural demand is the silver lining. Government focus on de-bottlenecking the sector is positive. Asset quality and muted loan growth are concerns; valuations appear reasonable. Improved Q2 FY14 GDP growth is positive, we pin hopes on pre election spending to provide some demand uptick. Uptick in business metrics and moderation of regulatory concern warrants rerating of the sector. Muted demand, margin pressure and high valuation are the key concerns. Availability of coal is key for revival of the sector.

Blue (Red) indicates upward (downward) revisions, Weights are relative to MSCI India Index. Source: Standard Chartered

Equity Strategy India Top10 Review

Stock Review
Performance of our Top Sector picks Performance relative to MSCI India Sectors

Our sector picks performed in-line with their respective

Total Returns Name CIPLA LARSEN & TOUBRO TECH MAHINDRA MARUTI SUZUKI IN RELIANCE INDUSTRIES ICICI BANK ACC BHARTI AIRTEL ITC INDRAPRASTHA GAS Average MSCI INDIA Index 801.7 Price 390.6 1054.7 1690.9 1663.3 861.9 1085.4 1100.5 331.0 319.2 280.4 Stock -5.9% 8.9% 10.7% 1.5% -5.8% -4.0% -4.3% -9.4% -2.0% 0.2% -1.0% -1.4% 1M Performance Sector -0.4% 9.3% -0.4% -0.2% -4.2% -2.5% 0.3% -5.1% -2.4% -2.8% -0.8% Relative -5.4% -0.3% 11.1% 1.7% -1.7% -1.5% -4.6% -4.4% 0.4% 3.0% -0.2%

sectors this month, on an equally weighted basis. Tech Mahindra, Indraprastha Gas and Maruti Suzuki were the best performers over the month, up 11.1%, 3.0% and 1.7% against their respective sectors. The top performers (YTD) in absolute terms are Tech Mahindra (c.82%), Indraprastha Gas (c.15%), and ITC (c.14%) On a sector agnostic basis, our top picks are Cipla, Healthcare: Bharti Airtel, ICICI Bank and ITC. Cipla (CIPLA IN) was down 5.9% last month, underperforming the health care sector. The company is aggressively pursuing

Data as of 03 December 2013 Source: Bloomberg, Standard Chartered 1M = 30 days rolling month

geographical expansion and establishing a direct presence in all its key overseas markets. Furthermore, to strengthen its domestic business, the company is looking at product licensing agreements and joint ventures with global companies. The stock has underperformed the sector and at current levels we feel its a good entry point and would advocate investors consider adding exposure. Risks: Setting up overseas business infrastructure could take time.

Ciplas improving return ratios ROE and ROC (%)

We continue to also like Lupin (LPC IN) as the company is looking at high-margin branded drugs in the US to drive growth. Furthermore, the company intends to expand into Latin America, Eastern Europe and China, and has allocated USD 1bn for inorganic growth. The stock has
Source: Bloomberg, Company, Standard Chartered

outperformed Cipla significantly, so we feel the upside opportunity is now skewed to Cipla. Risks: Margins could come under pressure going forward, led by price cuts and increased competition.

LT still trading below its 10yr median EV/EBITDA EV/EBITDA

Industrials: Larsen & Toubro (LT IN) was up 8.9% for the month, performing inline with the industrials sector. Management has reiterated its guidance of 15% y/y sales growth, 20% y/y order inflow growth and margin expansion target. We believe LT continues to be an excellent play in the India industrial space, powered by strong execution capabilities and a large order book. Risks: Moderating investment cycle continues to be an overhang.

We continue to also like Adani Ports & SEZ (ADSEZ IN) for its best in class asset base, visibility on cargo traffic and sustained cash flows.
Source: Bloomberg

Furthermore, its strategic position, diversified mix of cargo and superior realizations makes it a preferred port company. Risks: Rise in consolidated loans and advances.

Equity Strategy India Top10 Review

Information Technology: Tech Mahindra (TECHM IN) was up 10.7% for the month,
TECHM operating metrics improving Margins (%)

outperforming the IT sector. We continue to be constructive on the company on the back of improving demand and a healthy pipeline of large deals. However, post the recent sharp run up, c.82% ytd, we expect the stock price to consolidate in the near term. Risks: Rising wage cost could impact the margins.

We continue to also like HCL Technologies (HCLT IN), as revenue visibility remains high, driven by robust deal signings and improved reliability on margin expansion. Risks: The company had the highest quarterly annualized attrition among peers.
Source: Bloomberg, Standard Chartered

Consumer Discretionary:
Total sales down 10.7% y/y in November, with exports down 46.2% Maruti Suzukis monthly sales

Maruti Suzuki (MSIL IN) was up 1.5% over the month, outperforming the consumer discretionary sector. We exercise caution on the sector due to slowing demand, but continue to like MSIL on the back of its rich line-up of new product launches, increase in exports volumes and margin expansion led by rising localization. Risks: If industry volumes remain weak, the companys performance may be impacted. The continuance of large discounts may lead to margin erosion. We are cautious on Titan Industries (TTAN IN), as the demand scenario remains challenging and consumer sentiments remain subdued. Risks: Jewellery demand remains weak due to moderating

Source: Bloomberg, Standard Chartered

discretionary spending. Energy: Reliance Industries (RIL IN) was down 5.8% over the month, underperforming the energy sector. A positive government stance on RILs exploration and production efforts, in terms of project approvals and gas pricing, augurs well for the company. In addition, revised gas pricing will be key trigger. Risks: New capacity additions and weakening demand on account of slowdown in the global economy.

RIL revenue outside India increasing as a % of total Revenue Contribution (%)

ONGC (ONGC IN) offers an investment opportunity on the back of its relatively attractive valuation which factors in negatives such as high
Source: Standard Chartered Research estimates

subsidies and no hike in gas prices. Risks: Subsidy burden and regulatory concerns.

Equity Strategy India Top10 Review

Financials:
Bank-wise pipeline of stress loans Gross and Net NPAs as of Sep 2013 (%)

ICICI Bank (ICICIBC IN) fell 4.0% for the month, underperforming the financial sector. The growing proportion of retail loans, low exposure to SMEs, high capital adequacy and stable asset quality are key positives, in our view. Risks: The banks exposure to the large overleveraged corporate groups remains a concern. We maintain our conviction in HDFC Bank (HDFCB IN), as we believe retail banks will continue to have better earnings visibility. Growth rates are expected to be higher than average and asset quality is considered the best of the local banks, so valuations may remain at elevated

Source: Standard Chartered Research

levels. Risks: Uncertain macro environment and high valuations are key concerns.

Cumulative position of CDR referrals continue to rise Average monthly Corporate Debt Restructuring (CDR) referrals

Bank of Baroda (BOB IN) is our preferred stock amongst the state owned banks, although we would exercise caution given the stock has run up considerably since its lows in August and uncertainty remains over asset quality. Risks: Increased concern over asset quality, declining NIMs and pressure on fee income could weigh on the sentiment in the medium term. Materials: ACC Ltd (ACC IN) was down 4.3% for the month, underperforming the materials index. While cement demand continues to remain weak, after some signs of growth in September 2013, cement prices have

Source: Standard Chartered Research

witnessed recovery since the end of monsoon.

ACC impacted by the current economic slowdown ACC Sales Growth (%)

We are cautious in this space and maintain that the sustainability of price recovery and improvement in operating performance are critically dependent on a sustained recovery in demand. Risks: On the back of challenging macro-economic conditions, realisations may not improve materially in the medium term.

We are positive on Hindustan Zinc (HZ IN), driven by higher sales volume, good operating metrics and strong cash flows. Corporate action is likely to be a near term catalyst for the stock. Risks: Volatility in commodity prices.
Source: Bloomberg, Standard Chartered

Equity Strategy India Top10 Review

Telecommunication Services:
Bharti Africa business gaining traction Revenue Contribution to Mobile Services Revenue (%)

Bharti Airtel

(BHARTI

IN)

was down 9.4% for the month,

underperforming the telecom sector. India business fundamentals are improving and we believe things should incrementally look better in African markets as well. Furthermore, the sale of the Africa tower business will be positive. Given the stocks weak performance and improving fundamentals we are becoming a little more optimistic. We would though like to wait for confirmation of this improving trend before advocating investors consider adding to the name. Risks: Regulatory concerns and profitability of African business.

We like IDEA Cellular (IDEA IN) because of strong growth in data

Source: Bloomberg, Standard Chartered

volumes and expected pick up in revenues per minute. Risks: Aggressive bidding in upcoming spectrum auction.

Consumer Staples: ITC (ITC IN) fell 2.0% for the month, marginally outperforming the
Keeping costs under control has aided margins Britannia EBITDA Margin (%)

consumer staples sector. We believe the recent stock correction is because of muted outlook for the sector. In our opinion, the expectation of a fall in cigarette volume growth is priced in and the earnings forecasts are fairly modest. Hence we see this weakness as a buying opportunity. Risks: Sustained weakness in cigarette volume growth, regulatory impact and a slowdown in FMCG demand.

Britannia Industries (BRIT IN) is also a preferred pick, given the fact that it has witnessed strong volume growth at a time when most of its peers witnessed muted growth. Superior product mix, higher price
Source: Bloomberg, Standard Chartered

realizations and new launch of value added products is expected to drive revenue growth in the long term. Risks: Rise in input costs and slowdown in FMCG demand.

Indraprastha Gas operating margins continue to be stable Margins (%)

Utilities: Indraprastha Gas Ltd (IGL IN) was flat over the month, outperforming the utilities sector. The companys margins face pressure as the proportion of costly imported gas is expected to increase. Further, the regulators proposal to cap gas marketing margin remains an overhang on the stock. Risks: Regulatory risk continues to be a major concern.

We continue to also like NTPC (NTPC IN) on the back of improved visibility on the capacity-addition program and emergence of clarity on coal-availability issues. Risks: Rise in imported fuel cost may impact margins.
Source: Bloomberg, Company, Standard Chartered

Equity Strategy India Top10 Review

Earnings Release:
Earnings Release

Tech Mahindra Ltd. (TECHM IN) Q2 FY14 (7 November 2013) Vs Consensus BEAT Consolidated net profit rose 57.6% y/y to INR 7.2bn. Revenue rose 35.4% y/y to INR 47.7bn. EBITDA jumped 28.5% q/q to INR 11.1bn. Debt was at INR 3.4bn and cash and cash equivalent stood at INR 32.7bn. The company reported a net addition of 2,171 employees in the September quarterits highest in the last eight quarters.

Name CIPLA LTD TECH MAHINDRA INDRAPRASTHA GAS

Year 2013 2013 2013

Quarter Q2FY14 Q2FY14 Q2FY14

Est. Reported Surprise EPS EPS 5.3 4.5 (15.05) 31.5 6.2 31.0 6.6 (1.60) 6.95

Source: Bloomberg, Standard Chartered

Cipla (CIPLA IN) Q2 FY14 (13 November 2013) Vs Consensus MISS Income from operations increased 14.6% y/y to INR 25.1bn. The results include Cipla Medpro South Africa (Medpro), which became a wholly owned subsidiary of Cipla on 15 July 2013. Ciplas Q2 FY14 consolidated net profit fell 28.4% y/y to INR 3.6bn. Consolidated EBITDA fell 16.7% y/y to INR 5.6bn and operating profit margin declined 850 basis points to 22.5%. Domestic revenues grew 11.6% y/y to INR 10.4bn and International business rose 14.9% y/y to INR 12.2bn.

IGLs steady operational performance Revenue and EPS

Indraprastha Gas Ltd. (IGL IN) Q2 FY14 (7 November 2013) Vs Consensus IN-LINE IGLs standalone sales turnover rose by 18.1% y/y to INR 10.1bn. Net profit for the quarter declined by 6.5% y/y to INR 0.9bn. IGLs operating profit margin narrowed to 20% from 24% y/y, due to higher quantum of imported gas. Compressed natural gas (CNG) sales volume increased by 3% and piped natural gas (PNG) sales volumes increased by 10% y/y.

Source: Bloomberg, Company, Standard Chartered

Equity Strategy India Top10 Review

Technical Commentary
BSE SENSEX BSE Sensex is trading near its key resistance at 21000. The Sensex is expected to consolidate within the range of 20000 21000 in the near term before resuming its uptrend and it may touch 22500 in the medium term. Long term uptrend would remain intact as long as Sensex stays above 18000.

Source: Metastock, data as on 03 December 2013

_______ 50 EMA _______ 100 EMA

Cipla (CIPLA IN) Stock is trading near the lower band of the current trading range at INR380. We expect technical pullback from the current level. Resistance is at INR 428.

Source: Metastock, data as on 03 December 2013

_______ 50 EMA _______ 100 EMA _______ 200 EMA

Equity Strategy India Top10 Review

Technical Commentary

Larsen & Toubro (LT IN) The stock has seen a sharp up move and has crossed INR 1000 mark. LT is likely to face strong resistance at INR 1100 and above that at INR 1150. We expect the stock to consolidate within a range of INR 1000 1100 in the near term.

Source: Metastock, data as on 03 December 2013

_______ 50 EMA _______ 100 EMA _______ 200 EMA

Tech Mahindra (TECHM IN) The stock is expected to maintain positive momentum and it may touch INR 1850 in the medium term. Strong support is at INR 1600. .

Source: Metastock, data as on 03 December 2013

_______ 50 EMA

Equity Strategy India Top10 Review

Technical Commentary

Maruti Suzuki (MSIL IN) The stock is likely to face strong resistance at INR 1730. MSIL continues to consolidate within a range of INR 1550 - 1730 in the near term before resuming its uptrend. Resistance is at INR 1900.

Source: Metastock, data as on 03 December 2013

Reliance Industries (RIL IN) The stock continues to trade within a broad range of INR 785 INR 950 in the medium term.

Source: Metastock, data as on 03 December 2013

_______ 50 EMA _______ 100 EMA _______ 200 EMA

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Equity Strategy India Top10 Review

Technical Commentary
ICICI Bank (ICICIBC IN) The stock has seen a sharp rebound from key intermediate support at INR 760. We expect the rally to continue, with key resistance at INR 1230. Stock continues to trade within a broad range of INR 900-1250 in the medium term.

Source: Metastock, data as on 03 December 2013

_______ 50 EMA _______ 100 EMA _______ 200 EMA

ACC Ltd (ACC IN) The stock has found support at trend line and has seen a pullback. Currently stock is consolidating within a range of INR 980 1180. The medium term uptrend would remain intact as long as the stock stays above INR 920.

Source: Metastock, data as on 03 December 2013

_______ 50 EMA _______ 100 EMA _______ 200 EMA

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Equity Strategy India Top10 Review

Technical Commentary
Bharti Airtel (BHARTI IN) The stock appears to have stabilised around crucial support of INR 280, with higher highs and higher lows formation which is positive. Current rally may face resistance at INR 380. A breakout above INR 380 can take the stock price to INR 400.

Source: Metastock, data as on 03 December 2013

_______ 50 EMA _______ 100 EMA _______ 200 EMA

ITC (ITC IN) Stock continues to consolidate within a range of INR 309-350 in the near term. Key support is at INR 309 and below that at INR 270. The medium term uptrend would remain intact as long as stock stays above INR309.

Source: Metastock, data as on 03 December 2013

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Equity Strategy India Top10 Review

Technical Commentary

IGL (IGL IN) Stock continues to consolidate within a broad range of INR 250-315 in the medium term.

Source: Metastock, data as on 03 December 2013

_______ 50 EMA _______ 100 EMA _______ 200 EMA

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Performance & Valuation Tables

Sector Stock Picks
Initiation Name CIPLA LTD LUPIN LTD LARSEN & TOUBRO ADANI PORTS AND TECH MAHINDRA LT HCL TECH MARUTI SUZUKI IN TITAN INDS LTD RELIANCE INDS OIL & NATURAL GA ICICI BANK LTD HDFC BANK LTD BANK OF BARODA ACC LTD HINDUSTAN ZINC BHARTI AIRTEL IDEA CELLULAR ITC LTD BRITANNIA INDS INDRAPRASTHA GAS NTPC LTD Data as of 03 December 2013 Date 3/30/2012 3/30/2012 3/30/2012 3/30/2012 10/3/2012 10/3/2012 3/4/2013 8/3/2012 3/30/2012 4/4/2013 3/30/2012 8/3/2012 3/30/2012 3/30/2012 3/30/2012 3/30/2012 3/30/2012 3/30/2012 9/5/2013 3/30/2012 4/4/2013 Stock Price 390.6 870.4 1054.7 158.1 1690.9 1118.4 1663.3 225.4 861.9 292.4 1085.4 655.8 648.1 1100.5 125.0 331.0 175.4 319.2 905.2 280.4 145.7 Target 460.0 685.0 965.0 189.0 1850.0 1390.0 2046.0 226.0 907.0 430.0 1105.0 740.0 550.0 1179.0 172.0 404.0 196.0 350.0 980.0 430.0 200.0 SCB 12m 1M -5.9% -0.6% 8.9% 10.3% 10.7% 1.6% 1.5% -12.7% -5.8% 2.5% -4.0% -3.3% -3.1% -4.3% -8.3% -9.4% 4.1% -2.0% -4.2% 0.2% 0.5% ITD 29.4% 66.1% 24.1% 23.7% 70.7% 88.4% 19.6% -0.5% 17.5% -4.8% 26.6% 12.4% -13.7% -16.2% -1.3% -1.3% 77.9% 45.5% 20.7% -22.9% 2.2% YTD -4.9% 43.5% 1.4% 19.2% 82.0% 82.1% 12.1% -19.0% 3.0% 11.7% -2.8% -1.7% -22.3% -21.7% -5.3% 5.2% 69.4% 13.8% 82.6% 15.4% -2.2% Rating 4.1 4.2 4.1 4.5 4.3 4.3 4.2 2.9 4.1 4.6 4.5 4.0 3.4 3.3 4.6 4.2 3.9 4.3 4.1 4.1 4.5 Consensus SCB Rating OUTPERFORM OUTPERFORM OUTPERFORM OUTPERFORM OUTPERFORM OUTPERFORM OUTPERFORM IN-LINE IN-LINE OUTPERFORM OUTPERFORM OUTPERFORM IN-LINE IN-LINE OUTPERFORM OUTPERFORM OUTPERFORM OUTPERFORM OUTPERFORM OUTPERFORM OUTPERFORM

12m Name CIPLA LTD LUPIN LTD LARSEN & TOUBRO ADANI PORTS AND TECH MAHINDRA LT HCL TECH MARUTI SUZUKI IN TITAN INDS LTD RELIANCE INDS OIL & NATURAL GA ICICI BANK LTD HDFC BANK LTD BANK OF BARODA ACC LTD HINDUSTAN ZINC BHARTI AIRTEL IDEA CELLULAR ITC LTD BRITANNIA INDS INDRAPRASTHA GAS Sector Health Care Health Care Industrials Industrials Information Technology Information Technology Consumer Discretionary Consumer Discretionary Energy Energy Financials Financials Financials Materials Materials Telecommunication Services Telecommunication Services Consumer Staples Consumer Staples Utilities Fwd P/E 18.1 20.6 17.9 15.1 12.9 13.4 15.5 22.1 11.0 8.2 9.5 15.7 16.7 23.6 23.5 25.4 25.5 10.7

ROE 5yr Div Yield AV 18.1 30.6 23.0 22.9 34.0 27.3 16.2 42.2 14.1 20.6 11.3 17.9 20.3 21.2 23.2 16.5 7.8 31.5 38.8 27.6 14.7 0.5 0.5 1.2 0.6 0.3 0.5 0.5 0.9 1.0 3.2 1.8 0.8 3.3 2.7 2.5 0.3 0.2 1.6 0.9 2.0 3.9

Div Beta Payout 10.4 13.6 21.9 13.0 5.0 20.4 9.8 25.7 14.7 33.6 24.0 19.1 22.1 53.2 19.0 16.7 9.8 54.5 39.2 21.7 37.7 0.5 0.6 1.5 0.8 0.6 0.7 1.1 0.9 1.1 1.2 1.5 1.1 1.4 0.9 0.9 1.0 0.7 0.8 0.6 0.8 0.9

Expected DVD Ex-Date 8/5/2014 7/29/2014 8/14/2014 7/31/2014 1/24/2014 8/13/2014 7/18/2014 5/12/2014 5/29/2014 6/12/2014 6/24/2014 3/21/2014 5/9/2014 5/23/2014 6/9/2014 1/30/2014

Expected Reporting Date 5/29/2014 1/31/2014 5/22/2014 1/28/2014 2/6/2014 1/17/2014 4/25/2014 5/2/2014 4/16/2014 5/29/2014 1/31/2014 4/23/2014 5/13/2014 2/7/2014 1/17/2014 1/31/2014 1/29/2014 5/16/2014 5/23/2014 2/11/2014 5/9/2014

NTPC LTD Utilities Data as of 03 December 2013

SCB 12m target price: Blue (Red) indicates upward (downward) revisions Source: Bloomberg, Standard Chartered

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Equity Strategy India Top10 Review

MSCI India Sectors
1M MSCI INDIA Index Health Care Industrials Information Technology Consumer Discretionary Energy Financials Materials Telecommunication Svs Consumer Staples Utilities -0.4% 9.3% -0.4% -0.2% -4.2% -2.5% 0.3% -5.1% -2.4% -2.8% 24.3% -9.0% 52.9% 8.0% 0.8% -10.0% -8.5% 32.2% 15.7% -13.0% 6.7% YTD Rel to Index YTD% 17.6% -15.8% 46.1% 1.3% -5.9% -16.7% -15.2% 25.5% 8.9% -19.7% 0.0% Trailing P/E 41.4 17.6 20.0 15.3 10.0 14.5 25.9 43.1 37.7 11.6 17.5 12m Fwd P/E 20.9 14.9 16.4 10.9 9.5 13.3 10.7 23.2 30.7 10.0 14.1 Trailing P/B 4.4 2.1 5.2 3.5 1.5 2.3 1.2 1.9 9.4 1.2 2.6 EV/ EBITDA 19.2 11.2 14.3 8.5 6.7 11.2 8.7 25.8 8.8 11.2 DVD Yield% 0.6 1.3 1.2 1.5 2.1 1.4 1.2 0.2 1.3 2.7 1.4 DVD Payout % 25.7 22.2 23.8 22.9 21.7 20.4 34.1 10.1 48.6 31.1 24.2

Index -1.4% Data as of 03 December 2013 Source: Bloomberg, Standard Chartered

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Equity Strategy India Top10 Review

Definitions
Consensus rating: A rating provided by Bloomberg that reflects the aggregation of all brokers rating for a particular stock. 1 is a Sell, whilst 5 is a Strong Buy. YTD: Year to date. ITD: Inception to date. PT: Price Targets (SCB uses an investment horizon of 12 months for its price targets). RSI: Relative Strength Index. Relative Volatility index: A measure of the standard deviation of the daily price change. MA: Moving Average. Basket average performance: Basket average is the unweighted performance of the shortlisted stocks Consensus estimates: An aggregation of revenue and earning estimates of brokers complied by Bloomberg / Newswire18. P/E: Price/Earnings ratio. The Trailing P/E refers to 12m of trailing earnings, whilst the forward refers to 12m forecast earnings, against current price. EV/EBITDA: Enterprise value/Earnings before Interest, Tax and Depreciation Amortisation. PAT: Profit after tax. ROE and ROA: Return on Equity and Return on Assets (book value). Dividend Yield: Dividend paid/ current price. Beta: Correlation between a stock and the market. Is based on two years of weekly data, but modified by the assumption that a security's beta moves toward the market average over time. P/E bands: 10-year price series with 0.5 and 1 Standard deviation bands from Median Forward PE. Dotted lines are the Forward 'target' prices derived from forward EPS estimates and median 10 yr Forward P/E (Forward PE*EPS). DEMA: Daily exponential moving average. WEMA: Weekly exponential moving average. MSCI: Morgan Stanley Composite Index. We have compared stock and sector performance with MSCI India sectoral indices. CASA: Current account and savings account. NIM: Net interest margin. NPA: Non performing asset.

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Equity Strategy India Top10 Review

THIS IS NOT A RESEARCH REPORT AND HAS NOT BEEN PRODUCED BY A RESEARCH UNIT

DISCLOSURE SCB and/or its affiliates have received compensation for the provision of investment banking or financial advisory services within the past one year for the following companies: Tata Motors Ltd., Reliance Industries Ltd., Bank of Baroda, HDFC Bank Ltd., ICICI Bank, Hindustan Zinc Ltd. and Bharti Airtel Ltd. DISCLAIMER Global Disclaimer: This document is not research material and it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research. This document does not represent the views of Standard Chartered Bank, particularly those of the Global Research function. Standard Chartered Bank is incorporated in England with limited liability by Royal Charter 1853 Reference Number ZC18. The Principal Office of Standard Chartered Bank is situated in England at 1 Basinghall Avenue, London, EC2V 5DD. Standard Chartered Bank is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. In Dubai International Financial Centre (DIFC), the attached material is circulated by Standard Chartered Bank DIFC on behalf of the product and/or Issuer. Standard Chartered Bank DIFC is regulated by the Dubai Financial Services Authority (DFSA) and is authorised to provide financial products and services to persons who meet the qualifying criteria of a Professional Client under the DFSA rules. The protection and compensation rights that may generally be available to retail customers in the DIFC or other jurisdictions will not be afforded to Professional Clients in the DIFC Banking activities may be carried out internationally by different Standard Chartered Bank branches, subsidiaries and affiliates (collectively SCB) according to local regulatory requirements. With respect to any jurisdiction in which there is a SCB entity, this document is distributed in such jurisdiction by, and is attributable to, such local SCB entity. Recipients in any jurisdiction should contact the local SCB entity in relation to any matters arising from, or in connection with, this document. Not all products and services are provided by all SCB entities. This document is being distributed for general information only and it does not constitute an offer, recommendation, solicitation to enter into any transaction or adopt any hedging, trading or investment strategy, in relation to any securities or other financial instruments. This document is for general evaluation only, it does not take into account the specific investment objectives, financial situation, particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. Opinions, projections and estimates are solely those of SCB at the date of this document and subject to change without notice. Past performance is not indicative of future results and no representation or warranty is made regarding future performance. Any forecast contained herein as to likely future movements in rates or prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in rates or prices or actual future events or occurrences (as the case may be). This document has not and will not be registered as a prospectus in any jurisdiction and it is not authorised by any regulatory authority under any regulations. SCB makes no representation or warranty of any kind, express, implied or statutory regarding, but not limited to, the accuracy of this document or the completeness of any information contained or referred to in this document. This document is distributed on the express understanding that, whilst the information in it is believed to be reliable, it has not been independently verified by us. SCB accepts no liability and will not be liable for any loss or damage arising directly or indirectly (including special, incidental or consequential loss or damage) from your use of this document, howsoever arising, and including any loss, damage or expense arising from, but not limited to, any defect, error, imperfection, fault, mistake or inaccuracy with this document, its contents or associated services, or due to any unavailability of the document or any part thereof or any contents. SCB, and/or a connected company, may at any time, to the extent permitted by applicable law and/or regulation, be long or short any securities, currencies or financial instruments referred to in this document or have a material interest in any

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such securities or related investments, or may be the only market maker in relation to such investments, or provide, or have provided advice, investment banking or other services, to issuers of such investments. Accordingly, SCB, its affiliates and/or subsidiaries may have a conflict of interest that could affect the objectivity of this document. This document must not be forwarded or otherwise made available to any other person without the express written consent of SCB. Copyright: Standard Chartered Securities (India) Limited 2013. Copyright in all materials, text, articles and information contained herein is the property of, and may only be reproduced with permission of an authorised signatory of, Standard Chartered Securities (India) Limited. Copyright in materials created by third parties and the rights under copyright of such parties are hereby acknowledged. Copyright in all other materials not belonging to third parties and copyright in these materials as a compilation vests and shall remain at all times copyright of Standard Chartered Securities (India) Limited and should not be reproduced or used except for business purposes on behalf of Standard Chartered Securities (India) Limited or save with the express prior written consent of an authorised signatory of Standard Chartered Securities (India) Limited. All rights reserved. Standard Chartered Securities (India) Limited 2013. Investment Strategy Disclaimer: This document and/or trading calls are issued by Investment Strategy Team of Standard Chartered Securities (India) Limited, a registered broker regulated by the Securities and Exchange Board of India. This is not research material and it does not represent the views of the Standard Chartered Group, particularly those of the Global Research function. This document is not independent of Standard Chartered Groups own trading strategies or positions. Therefore, it is possible, and you should assume, that Standard Chartered Group has a material interest in one or more of the financial instruments mentioned herein. Opinions, projections and estimates are subject to change without notice. This document and/or the trading calls are for information purposes only. It does not constitute any offer, recommendation or solicitation to any person to enter into any transaction or adopt any hedging, trading or investment strategy, nor does it constitute any prediction of likely future movements in rates or prices or any representation that any such future movements will not exceed those shown in any illustration. The data, opinions and other information that form the basis of this document and/or the trading calls may be provided by third parties for SCSI. While all reasonable care has been taken in preparing this document and/or the trading calls, and the information in it is believed to be reliable, it has not been independently verified by SCSI. Any opinions or views of third parties expressed in this material are those of the third parties identified, and not of SCSI. Trading recommendations based on quantitative analysis are based on index / stocks momentum, price movement, trading volume and other volatility parameters, as opposed to study of macro economic scenario and a companys fundamentals and as such, may not match with India Equity Researchs report / view on a companys fundamentals. The trading calls and/or contents of this document are not made with regard to the specific investment objectives, financial situation or the particular needs of any particular person. Any investments discussed may not be suitable for all investors. Past performance is not necessarily indicative of future performance; the value, price or income from investments may fall as well as rise. You are advised to exercise your own independent judgment (with the advice of your professional advisers as necessary) with respect to the risks and consequences of any matter contained herein. We expressly disclaim any liability and responsibility for any losses arising from any uses to which this communications is put and for any errors or omissions in this communications. This communication is intended for the recipient only and no further distribution of this communication or any part thereof is permitted. 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