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June 22,2018

Equity Market Update

Indices Performance Valuation characteristics$
Domestic Indices 21-Jun-18 % Change* YTD Return (%) Ratios S&P BSE Sensex Nifty 50

S&P BSE Sensex 35,432 -0.32 4.04 P/E 22.71 26.43

Nifty 50 10,741 -0.29 2.00 P/B 2.94 3.69
S&P BSE Mid Cap 15,768 -0.53 -11.53 Dividend Yield 1.25 1.23
S&P BSE Smallcap 16,528 -0.79 -14.05 Earnings Yield 4.40% 3.78%
* % Change from previous close Source: BSE & NSE Source: BSE & NSE $ The valuation parameters are on a 12 months trailing basis
YTD returns are on a calendar year basis
Macro Economic updates Net Institutional Flows (Equity)
Indicators Current Previous Year Ago
100,000 63,313

Rs. Crore
GDP(Q4 FY'18) 7.70% 7.00% 6.10% 59,621
WPI(May 18) 4.43% 3.18% 2.26% 30,000 11,149 3,941
CPI(May 18) 4.87% 4.58% 2.18%
-40,000 -6,666 -7,880
IIP(Apr 18) 4.90% 4.60% 3.20%
FII Flows DII Flows MF Flows*
CAD(Q4 FY'18)*** -13.00 -13.50 -3.40
MTD YTD
Fiscal Deficit(% of GDP)** 3.53 -- 3.50
Source: Thomson Reuters Eikon ** For Current - FY18, Year Ago - FY17 ***in $ Billion Source: NSDL, SEBI & NSE* As on 19-Jun-2018

Domestic Equity Market Update

 Indian equity markets remained under pressure during the session, with brief stance of recovery, due to lack of any positive triggers on the domestic front. The
minutes of the Monetary Policy Committee’s (MPC) latest policy meeting held early this month gave no indication of policymakers’ stance on future rate hikes,
citing uncertainties on oil and food prices. Weak global cues neutralised the risk appetite of investors as China continued to retaliate against U.S. protectionist
move in form of tariff hikes on Chinese goods imports.
 Key benchmark indices S&P BSE Sensex and Nifty 50 fell 0.32% and 0.29% to close at 35,432.39 and 10,741.10, respectively. S&P BSE Mid Cap and S&P BSE Small
Cap fell 0.53% and 0.79%, respectively.

Debt Market Update

Debt Market Watch Net Institutional Flows (Debt)
(%) 21-Jun-18 Previous Close 1 Year Ago
150,000 123,265
FBIL MIBOR 6.35 6.30 6.25
Rs. Crore

CALL 6.24 6.24 6.10 40,000 23,309

CBLO 6.29 6.28 6.23
-70,000 -7,743
5 Yrs AAA Corp Bond# @ 8.69 8.71 7.50 -38,208
FII Flows MF Flows*
#@
10 Yrs AAA Corp Bond 8.72 8.74 7.56
MTD YTD
10 Yrs G-Sec# @ 7.77 7.83 6.43
Source: FIMMDA, CCIL, Thomson Reuters Eikon Source: NSDL, SEBI & NSE* As on 19-Jun-2018

Commercial Papers Certificate of Deposit

(%) 21-Jun-18 Previous Close 1 Year Ago (%) 21-Jun-18 Previous Close 1 Year Ago
3-Month 7.58 7.55 6.71 3-Month 7.12 6.89 6.35
6-Month 7.93 7.90 6.91 6-Month 7.48 7.37 6.49

12-Month 8.58 8.55 7.18 12-Month 8.04 8.10 6.66

Source: Thomson Reuters Eikon Source: Thomson Reuters Eikon

#@
Corporate Bond Spreads (in bps)^
AAA AA
Maturity
21-Jun-18 3 month Ago Year Ago 21-Jun-18 3 month Ago Year Ago

1-year 124 91 55 152 153 125

3-year 81 70 71 108 114 135
5-year 75 65 74 106 106 144
Source: Thomson Reuters Eikon ^ with respect to G-Sec of similar maturity. Semi annualised yields of G-Sec Papers are annualised for calculating spreads

#@
G-Sec Yield Curve
8.80
7.79 7.88 7.77 7.83
Yield(%)

7.30 6.96 7.00

6.65 6.43
6.40

5.80
1 Yr 5 Yrs 10 Yrs
Maturity (Years)
21-Jun-18 20-Jun-18 21-Jun-17
# @
Source: Thomson Reuters Eikon Average of all the papers of similar maturities are considered; For Corporate Bond Papers, annualised yields are considered, for G-Sec Papers, semi
annualised yields are considered
 JumpStart
June 22,2018

Debt Market Update

 Bond yields fell for the fifth consecutive day following decline in global crude oil prices ahead of a meeting between the members of the Organization of the
Petroleum Exporting Countries Jun 22.

 Yield on the 10-year benchmark paper (7.17% GS 2028) dropped 5 bps to close at 7.77% from the previous close of 7.83%. During the session, bond yields traded
in the range of 7.76% and 7.81%.

Commodity & Currency

Commodity Market Currency Market
Commodity 21-Jun-18 Previous day 1 Year Ago Currency 21-Jun-18 Previous day 1 Year Ago
NYMEX Crude($/bl) 65.68 65.92 42.43 USD/INR 68.20 68.08 64.60
Brent Crude($/bl) 72.61 73.59 43.66 EURO/INR 78.79 78.83 71.94
Gold( $/oz) 1,266.81 1,267.70 1,246.05 GBP/INR 89.58 89.60 81.53
Gold(Rs./10 gm) 30,437.00 30,589.00 28,567.00 100 JPY/INR 61.61 61.82 58.07
Source: Thomson Reuters Eikon & MCX Source: RBI

Commodity & Currency Market Update

 Gold prices fell on concerns over rise in interest rates in the U.S. after the Federal Reserve chairman hinted that the bank will continue to raise rates. Gold
prices were last seen trading at $1,265.15 per ounce, compared with the previous close of $1,267.70 per ounce.

 Brent crude prices fell on expectations that the Organization of the Petroleum Exporting Countries (OPEC) and Russia might come to a consensus to raise output
in the upcoming meeting. However, downside was limited on probable shortfall from Venezuela, Libya and Angola. Further, crude inventories fell by 5.9 million
barrels in the week ended Jun 15 as per data from Energy Information Administration (EIA). Oil prices were last seen trading at $71.44 per barrel, compared
with the previous close of $73.59 per barrel.

 The rupee rose against the U.S. dollar following selling of the greenback by exporters and intervention by the Reserve Bank of India. The rupee rose 0.13% to
close at 67.98 per dollar from the previous close of 68.07 per dollar.

Past performance may or may not sustain in future and should not be used as a basis for comparison with other investments.
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