News: DOMESTIC MACRO:  India's total external debt rose by $29.5 bn, or 6.6%, to $475.8 bn at the end of March 2015, mainly due to increase in external commercial borrowings and NRI deposits.  Fifteen states sign a memorandum of agreement (MoA) with the Ministry of Housing & Urban Poverty Alleviation for ‘housing for all’ mission in urban areas.  According to RBI’s annual report, the central bank remains focused on bringing down consumer inflation to its target of 4% by March 2018.  India to auction 20 major iron ore mines to revive industry. GLOBAL MACRO EURO  UK GDP rose by 2.6% annually in Q2 2015, compared to 2.9% in Q1.  UK GfK consumer confidence index jumped to 7 in August from 4 in July. United States  US economy expanded 3.7% in Q2, higher than the previous estimate of 2.3%, and 0.6% growth in the first quarter.  US consumer spending increased 0.3% in July after an upwardly revised 0.3% rise in June while the personal income rose by 0.4% in July, matching the increase seen in the previous month.  US pending home sales index increased 0.5% after a revised 1.7% decline in June. China  China’s industrial profits fell 2.9% year on year in July, sharply down from the 0.3% decline posted in June.

1. The World This Week
August 24 – August 29, 2015

2. Equity View:
GDP and core sector data was released yesterday and it seems to be little inconsistent due to new GDP
series launched by government. As per the release, GDP grew at 7% against the expectation of 7.4% while
nominal GDP grew only at 8.8% which is quite surprising because nominal GDP consists of WPI
(Wholesale price index) as well as CPI (Consumer price index) inflation. Government had expected
nominal GDP to be around 15% - 17% so growth of just 8.8% is a sign of worry. Manufacturing sector
grew at 8% and IIP never exceeded 5% growth. IIP and core sector data was in line with earnings which
we had seen. IIP grew at 1.1% which has been pretty dismal as it is lower than expected. Government
spending is at a record high during the first four months however government expenditure grew at only
1.1% so overall we can project this data as inconsistent.
The entire GDP headline number may be negative but there are few positives which can be taken from
this data. The agricultural and construction sector was a positive surprise and if we exclude certain
subdued numbers then we can say that there are signs of recovery in the economy. The entire picture is
disappointing but two-three quarters down the line we could see the turnaround in GDP growth. Public
administration number is a puzzling figure as it should have improved but now we may see its effects in
coming quarters. The new GDP data series is not completely understood even by the top economists for
instance, GVA came to 7.1% and as per new GDP data series GDP should be equal to GVA (Gross value
added). Now, GVA = GDP + (Taxes – Subsidies) so GDP should not be less than GVA hence, one needs to
fully understand the calculation and this number may be revised in future. One of the reasons this
number is not matching is because indirect taxes did not grow much at constant rates.
In Indian markets, midcaps are driven by DII’s and large caps are driven by FII’s so this is not a good sign
for the markets from a long term stability point of view. FII’s are still driving Indian markets and if Fed
may hike rate up to 10bps against expected 25bps than we may see a bounce back in the markets
because with this move Fed may not hurt their credibility of rate hike and also does not send harsh
message. Domestic macros are yet to improve and global macros are still uncertain so it will be a wait-
and-watch game for the investors. The Fed rate hike in September is still uncertain but we expect that it
would not be hiked in this month.

3. News:
DOMESTIC MACRO:
 India's total external debt rose by $29.5 bn, or 6.6%, to $475.8 bn at the end of March 2015, mainly due to
increase in external commercial borrowings and NRI deposits.
 Fifteen states sign a memorandum of agreement (MoA) with the Ministry of Housing & Urban
Poverty Alleviation for ‘housing for all’ mission in urban areas.
 According to RBI’s annual report, the central bank remains focused on bringing down consumer inflation to
its target of 4% by March 2018.
 India to auction 20 major iron ore mines to revive industry.
GLOBAL MACRO
EURO
 UK GDP rose by 2.6% annually in Q2 2015, compared to 2.9% in Q1.
 UK GfK consumer confidence index jumped to 7 in August from 4 in July.
United States
 US economy expanded 3.7% in Q2, higher than the previous estimate of 2.3%, and 0.6% growth in the first
quarter.
 US consumer spending increased 0.3% in July after an upwardly revised 0.3% rise in June while the
personal income rose by 0.4% in July, matching the increase seen in the previous month.
 US pending home sales index increased 0.5% after a revised 1.7% decline in June.
China
 China’s industrial profits fell 2.9% year on year in July, sharply down from the 0.3% decline posted in June.
Indices:
Date Sensex Midcap Auto Bankex CD CG FMCG HC IT Metals O&G Power Realty Teck
24/08/15 25,742 10,355 17,444 19,242 10,596 16,153 7,647 17,195 11,050 6,869 8,307 1,784 1,158 5,989
25/08/15 26,032 10,560 17,803 19,726 10,652 16,217 7,704 17,393 10,997 7,146 8,617 1,800 1,237 5,990
26/08/15 25,715 10,477 17,679 19,395 10,602 16,069 7,630 17,195 10,892 7,162 8,532 1,829 1,234 5,928
27/08/15 26,231 10,738 17,824 19,750 11,144 16,294 7,776 17,699 11,022 7,345 8,774 1,853 1,284 6,005
28/08/15 26,392 10,759 18,004 19,703 11,102 16,326 7,819 17,646 11,189 7,402 8,854 1,863 1,278 6,111
2.53% 3.91% 3.21% 2.40% 4.78% 1.07% 2.25% 2.62% 1.26% 7.76% 6.58% 4.45% 10.31% 2.04%

4. Commodities and Currency:
Date USD GBP EURO YEN
Crude
(Rs. per BBL)
Gold
(Rs. Per 10gms)
24/08/2015 66.50 104.00 76.27 54.97 2993 27166
25/08/2015 66.70 105.10 77.10 56.01 2839 26700
26/08/2015 66.16 103.87 75.88 55.28 2882 26700
27/08/2015 66.06 102.34 74.96 55.08 2854 26245
28/08/2015 66.08 101.92 74.36 54.54 3142 26371
0.64%
Rupee
Appreciated
2.04%
Rupee
Appreciated
2.57%
Rupee
Appreciated
0.79%
Rupee
Appreciated
4.98% -2.93%
Debt:
Tenor Gilt Yield in % (Friday) Change in bps (Week)
1-Year 7.44 -10
2-Year 7.72 -2
5-Year 7.91 4
10-Year 7.79 4

5. Phani Sekhar Ponangi Jharna Agarwal
Nupur Gupta Aakash Mehta Ridhdhi Chheda
Disclaimer
The information and views presented here are prepared by Karvy Private Wealth (a division of Karvy Stock Broking
Limited) or other Karvy Group companies. The information contained herein is based on our analysis and upon sources
that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for
personal information and we are not responsible for any loss incurred based upon it.
The investments discussed or recommended here may not be suitable for all investors. Investors must make their own
investment decisions based on their specific investment objectives and financial position and using such independent
advice, as they believe necessary. While acting upon any information or analysis mentioned here, investors may please
note that neither Karvy nor any person connected with any associated companies of Karvy accepts any liability arising
from the use of this information and views mentioned here.
The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above-
mentioned companies from time to time. Every employee of Karvy and its associated companies are required to disclose
their individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis
and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this
recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted
to place orders only through Karvy Stock Broking Ltd.
The information given in this document on tax are for guidance only, and should not be construed as tax advice. Investors
are advised to consult their respective tax advisers to understand the specific tax incidence applicable to them. We also
expect significant changes in the tax laws once the new Direct Tax Code is in force – this could change the applicability
and incidence of tax on investments
Karvy Private Wealth (A division of Karvy Stock Broking Limited) operates from within India and is subject to Indian
regulations.
Karvy Stock Broking Ltd. is a SEBI registered stock broker, depository participant having its offices at:
702, Hallmark Business plaza, Sant Dnyaneshwar Marg, Bandra (East), off Bandra Kurla Complex, Mumbai 400 051 .
(Registered office Address: Karvy Stock Broking Limited, “KARVY HOUSE”, 46, Avenue 4, Street No.1, Banjara Hills,
Hyderabad 500 034)
SEBI registration No’s:”NSE(CM):INB230770138, NSE(F&O): INF230770138, BSE: INB010770130, BSE(F&O):
INF010770131,NCDEX(00236, NSE(CDS):INE230770138, NSDL – SEBI Registration No: IN-DP-NSDL-247-2005, CSDL-SEBI
Registration No:IN-DP-CSDL-305-2005, PMS Registration No.: INP000001512”