Fall 08

July 03, 2017 to July 07, 2017

July 03, 2017 to July 07, 2017

Contents

 Index Views

 SENSEX Index Movers

 BSE 200 Index Movers

 FII and MF Data

 SENSEX Movement

 Key Developments –

 Key Developments – International

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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July 03, 2017 to July 07, 2017

Last % Change Over Index Views Closing 1 week 1 month YTD 1 year NIFTY 9,666 1.52 0.02 18.08 15.93 SENSEX 31,361 1.42 0.29 17.78 15.29 NSE MIDCAP 18,104 2.11 1.39 26.15 28.44 NSE 500 8,479 1.77 0.57 21.43 20.27 NIFTY JUNIOR 26,872 2.35 1.70 25.63 28.27 BSE SMALLCAP 15,831 2.73 2.62 31.42 31.95 BSE 200 4,218 1.65 0.48 20.13 18.91

*DOW JONES 21,320 (0.14) 0.69 7.88 19.13 *NASDAQ 6,089 (0.83) (3.30) 13.12 24.87 NIKKEI 19,929 (0.52) (0.28) 4.26 30.46 HANG SENG 25,341 (1.64) (2.44) 15.18 22.38 SHANGHAI COMP 3,218 0.80 2.47 3.68 6.67

BSE OIL & GAS 13,497 2.23 (3.71) 11.07 34.23 BSE CAPITAL GOODS 17,289 1.25 (2.56) 26.53 12.94 BSE AUTO 23,820 1.76 (1.78) 17.59 21.63 BSE FMCG 10,687 2.48 4.38 31.44 24.80 BSE HEALTHCARE 14,384 1.36 3.10 (2.33) (9.94) BSE TECH 5,528 0.08 (3.92) 0.54 (7.47) BSE IT 9,786 (0.48) (5.13) (3.83) (10.98) BSE BANK 26,498 0.84 (0.84) 27.71 28.03 BSE PSU 8,254 1.74 (4.06) 7.31 19.41 BSE REALTY 2,157 5.54 10.36 70.62 37.40 BSE METALS 11,762 3.41 5.86 16.35 35.32 BSE CONSUMER DURABLES 16,030 0.11 (1.47) 42.65 33.54

SOURCE : BLOOMBERG

* DENOTES THURSDAY CLOSE

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July 03, 2017 to July 07, 2017

Last % Change Over SENSEX Index Movers Price 1 week 1 month YTD 1 year Ltd 1,491 8.01 11.32 38.02 50.91 Sesa Sterlite Ltd 257 3.33 10.31 18.98 79.65 ITC Ltd 334 3.17 7.01 38.66 35.54 India Ltd 7,429 2.93 3.13 39.57 79.41 Ltd 251 2.81 (4.89) (16.32) (20.42) Sun Pharmaceutical Industries Ltd 550 (0.87) 7.54 (12.71) (29.29) Ltd 2,708 (0.99) (5.76) 2.81 3.74 Tata Consultancy Services Ltd 2,332 (1.36) (10.83) (1.26) (3.99) Ltd/India 546 (1.50) 1.23 (3.90) 6.39 Ltd 503 (1.52) (1.95) 11.84 (7.22) SOURCE : BLOOMBERG

Last % Change Over BSE 200 Index Movers Price 1 week 1 month YTD 1 year IDFC Bank Ltd 65 18.26 9.84 7.83 36.60 Jubilant Foodworks Ltd 1,094 15.73 15.25 28.01 (9.73) Ltd 104 11.08 12.34 30.15 11.98 GRUH Finance Ltd 485 9.55 19.66 50.64 68.97 United Spirits Ltd 2,621 9.37 11.47 35.05 - Adani Power Ltd 28 (4.21) 3.83 (5.48) (5.01) Indian Hotels Co Ltd 127 (4.57) (7.45) 29.58 (0.90) Ltd 468 (4.75) (7.37) (12.05) (1.25) Max Financial Services Ltd 594 (5.41) (3.28) 8.22 19.33 Tata Communications Ltd 668 (7.49) (8.31) 6.60 -

SOURCE : BLOOMBERG

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July 03, 2017 to July 07, 2017

FII and MF Data (Week Ended 07.07.2017) Rs. Crores

FII GROSS PUR 23,549.71 FII GROSS SELL 24,757.06 FII NET (1,207.35) FII MONTH T0 DATE NET (1,207.35)

MF GROSS PUR 8,790.79 MF GROSS SELL 6,190.96 MF NET 2,599.83 MF MONTH T0 DATE NET 2,599.83

SOURCE: SEBI

SENSEX WEEKLY

31400

31,369 31,361

31350

31300

SENSEX LEVEL SENSEX

31250

31,222 31,246

31200 31,210

31150 7/3/2017 7/4/2017 7/5/2017 7/6/2017 7/7/2017

SOURCE : BLOOMBERG DATE

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July 03, 2017 to July 07, 2017 Key Developments

India:

 Investors in India’s bond market are already raising red flags on the potential impact from populist farmer bailouts being engineered by different state governments. Yields on the so-called state development loans, or SDLs, climbed at the most recent auction, widening their spread over sovereign rates. The increase comes amid concern that waiving billions of dollars in farm loans will worsen already strained states’ finances. Debt sales by regional administrations are set to rise this quarter, and could pose a challenge for the federal government’s borrowing program. “Loan waivers will have a negative impact on state finances” said C. Venkat Nageswar, the Mumbai-based head of treasury and deputy managing director at State , the largest lender. “At least part of this additional burden will be financed through market borrowings, which could push up SDL spreads.” , the most populous state, set off a domino effect by saying in April that it will waive off loans worth 363.6 billion rupees ($5.6 billion). , and Punjab have announced similar bailouts, while farmers in Gujarat, , and are clamoring for the debt relief, which if granted could cost hundreds of billions of rupees more. The cutoffs at a June 27 auction of 10-year debt by various state governments saw their yield spread over similar-maturity sovereign bonds widen to a range of 74-83 basis points, from 63-73 basis points at the previous sale on June 13. The gaps were around 50 basis points in October. That’s “the new normal,” said Vivek Rajpal, a Singapore-based rates strategist at Nomura Holdings Inc. “I wouldn’t be too keen on assuming that spreads will narrow over time.” Read: Great Farmer Bailout Imperils India Sovereign-Rating Upgrade With populations as large as 200 million people, Indian states are massive, and also wield enormous budgets. The bailouts come at a time when their finances are already strained as they roll out pay hikes for several government employees and acquire debt piled up at state-run power distribution companies under a 2015 federal plan to revive the utilities. States plan to borrow a combined 980 billion rupees to 1.05 trillion rupees this quarter, showed an indicative borrowing calendar released by the central bank this week. That compares with announced debt sales of up to 750 billion rupees for the same period last year and as much as 777 billion rupees for the three months ended June 30.

 (PTI) -- President Pranab Mukherjee today gave nod to an order pertaining to implementation of the Goods and Services Tax regime in Jammu and Kashmir, clearing decks for the state assembly for enacting a State GST law. Official sources said that the President cleared the order and sent it to Ministry of Home Affairs for further action. The PDP-BJP government had passed a resolution on Wednesday in the assembly after which the state cabinet under the chairmanship of Chief Minister Mehbooba Mufti cleared a draft order for concurrence of the President. Jammu and Kashmir is the only state which is yet to implement the GST which was rolled out in rest of the country on July 1. The presidential order, which was concurred by state Governor N N Vohra, relates to the application of certain provisions of the Constitution of India through an order of the President issued under Article 370 that gives special status to the state. State's Finance Minister Haseeb Drabu had said yesterday that after the Presidential Order is received, the government will take it to the Assembly for enacting a SGST (state goods and services tax) bill. Drabu, during discussion in the assembly on Wednesday, said that the government was not required to bring the resolution but it did so to "get a sense of the House on the issue", a move termed by opposition National Conference and Congress as a "sham". This was the first time in the history of the Jammu and Kashmir assembly that a resolution, seeking a presidential order on a constitutional amendment, was discussed and passed.

 IndiGo, the only carrier that has made a pitch to purchase Air India Ltd., sought to allay investor concerns about the budget operator buying the unprofitable national carrier, saying a deal would help speed up its 6

July 03, 2017 to July 07, 2017

plans for low-cost, long-distance flights. Spelling out the rationale for their interest in the highly indebted airline in a conference call with analysts Thursday, billionaire owners Rahul Bhatia and Rakesh Gangwal said IndiGo would gain access to workers and overseas routes through the purchase, which otherwise would take a long time to replicate. “Air India’s international operations would bring a very important element to our network,” IndiGo’s co-founder Bhatia said. “It will provide a rapid entry into restricted, and in some cases, closed international markets.” Bhatia and fellow co-founder Gangwal held the call to justify IndiGo’s interest after the company’s announcement to bid for Air India wiped out more than $500 million in market value for IndiGo, the nation’s biggest and most profitable airline. Surviving on a taxpayer bailout, Air India hasn’t made a profit for about a decade and has piled up debt of about 500 billion rupees ($7.7 billion). Shares of IndiGo’s operator, InterGlobe Aviation Ltd., have recouped most of the losses since the 8 percent two-day drop at the end of June. The stock slipped 0.3 percent to 1,228.75 rupees as of 11:23 a.m. on Friday in Mumbai after rebounding 5.3 percent this week. A combination with Air India would help consolidate IndiGo’s position as the country’s biggest airline with a domestic market share of 54.2 percent and a total fleet of 283 registered planes. For a successful bid, IndiGo will have to buy out either the international or the entire airline operations of Air India, without a partnership with the government, Gangwal and Bhatia told analysts. Economic Sense :Even without a deal, IndiGo will look to start long-haul operations as it makes “fundamental economic sense,” said Gangwal, a former chief executive officer of U.S. Airways. Bhatia, a former travel agent, and Gangwal teamed up to start IndiGo, which has become India’s biggest airline in just a decade, luring customers with on-time performance, new aircraft, cheap fares and a tight grip on costs. Buying into inefficient businesses has a history of success, Gangwal said. It is “questionable” if United Airlines would have become one of the world’s largest airlines today if it hadn’t acquired Pan Am’s Pacific operations and London routes a few decades back, Bhatia said. American Airlines followed the same model in buying Trans World Airline’s London routes, providing a proven road-map for such an approach, he said. “IndiGo is a natural player to take advantage of the significant and lucrative international market opportunity that India offers,” Gangwal said. “It is about time that IndiGo enters the long-haul international market.”

International:

 A burst of initial public offerings this year by oilfield service companies has ground to a halt along with the recovery in oil prices. Business was set to take off as drillers rushed back into shale fields last year, raising demand for service companies to complete new wells. Riding the momentum, five servicers launched public listings by May 11, raising $1.43 billion. That’s more than any other sector of the energy industry, and the most compared to any full year since 2012. Now four of those five companies are trading below their listing price. IPO’s have dried up as oil prices languish around $45 a barrel, with at least three service firms that planned new listings postponing or delaying a move. "Nobody can get an IPO done," James Wicklund, managing director for equity research at Credit Suisse in Dallas, said. "With the current sentiment terribly negative on oil prices and activity, it makes it very difficult." Enthusiasm favored service companies earlier this year as producers more than doubled the number of rigs drilling for oil from a low of 316 in May 2016. Private equity firms saw an opportunity to cash out on their investments as rising prices increased demand for energy stocks. IPO’s provided the cash to ramp up quickly and grab market share. Three of the companies that went public this year, Keane Group Inc., Solaris Oilfield Infrastructure Inc., and NCS Multistage Holdings Inc., provide completion services in shale plays. Service companies raised more money on the IPO market this year than explorers and producers for the first time in more than a decade.

 The hedge-fund enclave of Greenwich, on the Connecticut Gold Coast, is about 100 miles and a world away from the capital. But the fiscal crisis in Hartford, the historic center of the American insurance industry, is fast becoming more representative than mansions or yachts of the wealthiest state in the U.S. The city is edging closer than ever to the breaking point, waiting for the financially troubled state 7

July 03, 2017 to July 07, 2017

government to step in. It may seem crazy that a place as rich as the Nutmeg State, which counts among its residents hedge-funds masters like Ray Dalio and Steven A. Cohenand legions of Wall Street bankers, could be in such fiscal trouble. Last year, the per-capita income there was $71,033, the highest in the nation, according to the U.S. Bureau of Economic Analysis. For all that, state-worker pensions have been underfunded for decades. Tax increases aimed at closing deficits have put a strain on an economy struggling from the loss of high-paying finance jobs, leaving it among the few that still haven’t recovered from the recession.

 U.K. factories and construction firms unexpectedly cut output in May, casting doubt over the performance of the economy in the second quarter. Manufacturing fell 0.2 percent from April as vehicle production posted the biggest drop in more than a year, the Office for National Statistics said Friday. Total industrial production declined 0.1 percent. Building output shrank by 1.2 percent. There was also disappointing news on trade, as the deficit widened more than expected to 3.1 billion pounds. Imports of goods rose 3.9 percent, far outstripping a 0.9 gain in exports. The figures raise questions about the extent of any pickup in the economy after growth slumped to 0.2 percent in the first three months of the year. It strengthens the case for the Bank of England to refrain from raising interest rates, despite surging inflation. The pound fell and was at $1.2909 as of 11:05 a.m. London time, down 0.5 percent on the day. Political instability, the start of Brexit talks and the strain on consumers from the rising cost of living are weighing on the prospects for investment and consumer spending, with recent PMI surveys pointing to a loss of momentum going into the second half. Economists surveyed by Bloomberg last month saw growth accelerating to 0.4 percent between April and June. The latest figures underline just how reliant Britain is on its giant services sector, itself coming under pressure from the fall in real incomes. Questions Rose: Industrial production needs to expand by 1.4 percent in June, the most since November, to avoid shrinking in the second quarter. Output fell 1.2 percent between March and May and has gained in only one month this year. Construction meanwhile would require an unprecedented expansion of 5.5 percent to break even during the quarter. Whether the economy gets a boost from trade is also open to question. The deficit in the second quarter will widen if June sees a shortfall of more than 3.7 billion pounds. Downward pressure on manufacturing in May came mostly from motor vehicles, which fell 4.4 percent, the most since February 2016. The ONS said it was not aware of any loss of production caused by maintenance. Factories have had a lift from the sharp fall in the pound since the Brexit vote -- the value of goods’ exports rose an annual 16 percent in the first five months of 2017. But recent trade figures have been distorted by movements of non-monetary gold. An underlying measure, volumes excluding oil and erratic items, showed exports rising 6.6 percent.

NEWS SOURCE: BLOOMBERG

CL04544 Risk Factor: Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Disclaimer: The article (including market views expressed herein) is for general information only and does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this information. This material provides general information on financial planning and comparisons made are only for illustration purposes. The data/ information used/disclosed in this material is only for information purposes and not guaranteeing / indicating any returns. Investments in mutual funds and secondary markets inherently involve risks and recipient should consult their legal, tax and financial advisors before investing. Recipient of this article/ information should understand that statements made herein regarding future prospects may not be realized. He/ She should also understand that any reference to the securities/ sectors/ issuers etc., in the document is only for illustration purpose and are NOT stock recommendations from the author or L&T Investment Management Limited, the asset management company of L&T Mutual Fund or any of its associates. Any performance information shown refers to the past should not be seen as an indication of future returns. The value of investments and any income from them can go down as well as up.

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