The World This Week Oct 12 – Oct 16, 2015 Equity View: Markets are trading around 8200 levels but some amount of value buying was done when the levels were near 7500 with the expectation of better Q2 results. The earnings season has just begun and results are expected to be in line with those published in the quarter ending June. There have been few positive surprises so far in large cap IT, Energy and Financials but it is too early to comment and we expect markets to remain around levels of 8000 with a range of +/-5%. Domestic macro economic factors are supportive with robust IIP (Index for Industrial Production); CPI (Consumer Price Index) being well below the RBI target could prompt us to be cautiously optimistic about the markets. There are few sectors like 1st generation private sector banks, housing finance companies and a few stocks of automobile sector (especially commercial vehicles, MHCV) which could perform well. The GDP of China came out at 6.9% which was already discounted by the markets. It is expected that China’s GDP will continue to remain between 6.9% - 7.5% for next 1 – 2 years. The Volkswagen incident can benefit other companies at a global level like Jaguar and Land Rover but certainly not Maruti because the target segments are way different. News: DOMESTIC MACRO: Reserve Bank of India Governor Raghuram Rajan said on Monday the government needed to put conditions in place for sustainable growth, without resorting to populist policies India's industrial output grew a better-than-expected 6.4 percent in August compared with a downwardly revised 4.1 percent growth a month ago, government data showed on Monday. .GLOBAL MACRO Euro Deutsche Bank's (DBKGn.DE) shares rose more than 3 percent on Monday as investors welcomed Chief Executive John Cryan's plan to restructure the German bank and cull managers in a move to cut costs and put past scandals behind it. The European Central Bank welcomed on Monday a draft Italian law giving the Bank of Italy powers to resolve failing banks and investment firms. United States U.S. consumer sentiment rebounded strongly in early October, suggesting that the economic recovery remained on track despite headwinds from a strong dollar and weak global demand that have weighed on the industrial sector, particularly manufacturing. U.S. housing stocks could be in for a boost if September data due out next week confirms strength that market watchers expect. China Oil prices fell on Monday on concerns about the pace of economic growth in China, the world's largest energy consumer, and signs that global oversupply is curbing Saudi crude exports China's economic growth dipped below 7 percent for the first time since the global financial crisis on Monday, hurt partly by cooling investment, raising pressure on Beijing to further cut interest rates and take other measures to stoke activity.

1. The World This Week
Oct 12 – Oct 16, 2015

2. Equity View:
Markets are trading around 8200 levels but some amount of value buying was done when the levels were
near 7500 with the expectation of better Q2 results. The earnings season has just begun and results are
expected to be in line with those published in the quarter ending June. There have been few positive
surprises so far in large cap IT, Energy and Financials but it is too early to comment and we expect
markets to remain around levels of 8000 with a range of +/-5%.
Domestic macro economic factors are supportive with robust IIP (Index for Industrial Production); CPI
(Consumer Price Index) being well below the RBI target could prompt us to be cautiously optimistic about
the markets. There are few sectors like 1st
generation private sector banks, housing finance companies
and a few stocks of automobile sector (especially commercial vehicles, MHCV) which could perform well.
The GDP of China came out at 6.9% which was already discounted by the markets. It is expected that
China’s GDP will continue to remain between 6.9% - 7.5% for next 1 – 2 years. The Volkswagen incident
can benefit other companies at a global level like Jaguar and Land Rover but certainly not Maruti because
the target segments are way different.

3. News:
DOMESTIC MACRO:
Reserve Bank of India Governor Raghuram Rajan said on Monday the government needed to put
conditions in place for sustainable growth, without resorting to populist policies
India's industrial output grew a better-than-expected 6.4 percent in August compared with a
downwardly revised 4.1 percent growth a month ago, government data showed on Monday.
.GLOBAL MACRO
Euro
Deutsche Bank's (DBKGn.DE) shares rose more than 3 percent on Monday as investors welcomed
Chief Executive John Cryan's plan to restructure the German bank and cull managers in a move to
cut costs and put past scandals behind it.
The European Central Bank welcomed on Monday a draft Italian law giving the Bank of Italy
powers to resolve failing banks and investment firms.
United States
U.S. consumer sentiment rebounded strongly in early October, suggesting that the economic
recovery remained on track despite headwinds from a strong dollar and weak global demand that
have weighed on the industrial sector, particularly manufacturing.
U.S. housing stocks could be in for a boost if September data due out next week confirms
strength that market watchers expect.
China
Oil prices fell on Monday on concerns about the pace of economic growth in China, the world's
largest energy consumer, and signs that global oversupply is curbing Saudi crude exports
China's economic growth dipped below 7 percent for the first time since the global financial crisis
on Monday, hurt partly by cooling investment, raising pressure on Beijing to further cut interest
rates and take other measures to stoke activity.
Indices:
Date Sensex Midcap Auto Bankex CD CG FMCG HC IT Metals O&G Power Realty Teck
12/10/2015 26,904 10,955 18,050 20,073 11,638 15,792 7,921 18,038 11,281 7,542 9,081 1,905 1,414 6,156
13/10/2015 26,847 10,957 18,054 20,036 11,629 15,759 7,932 18,026 11,165 7,548 9,030 1,910 1,432 6,103
14/10/2015 26,780 10,920 17,925 20,020 11,793 15,720 7,924 18,090 11,017 7,526 9,036 1,897 1,430 6,032
15/10/2015 27,010 11,007 18,342 20,198 11,886 15,911 7,966 18,118 11,002 7,631 9,173 1,919 1,443 6,046
16/10/2015 27,215 11,048 18,502 20,460 11,834 16,202 7,979 18,163 11,004 7,598 9,280 1,932 1,423 6,050
1.15% 0.85% 2.50% 1.93% 1.69% 2.60% 0.73% 0.69%
-
2.45% 0.75% 2.19% 1.41% 0.65%
-
1.73%

4. Commodities and Currency:
Date USD GBP EURO YEN
Crude
(Rs. per BBL)
Gold
(Rs. Per 10gms)
12/10/2015 64.79 99.42 73.57 53.99 3221 26620
13/10/2015 65.09 99.24 74.09 54.36 3049 26469
14/10/2015 64.73 100.19 74.41 54.47 3034 26642
15/10/2015 64.77 100.12 73.65 54.48 3037 26934
16/10/2015 64.70 99.87 73.43 54.17 3007 26876
0.14%
Rupee
Appreciated
-0.45%
Rupee
Depreciated
0.19%
Rupee
Appreciated
-0.33%
Rupee
Depreciated
-6.64% 0.96%
Debt:
Tenor
Gilt Yield in
% (Friday)
Change in
bps (Week)
1-Year 7.19 1
2-Year 7.43 -4
5-Year 7.64 -1
10-Year 7.57 0

5. Phani Sekhar Ponangi Jharna Agarwal
Nupur Gupta Ridhdhi Chheda
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