1. India-Global Market Summary 21-11-2013
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A bout of volatility was witnessed in late trade as the market trimmed losses after hitting fresh intraday low. Nifty
regained the psychological 6,000 mark after falling below that level in late trade. The market breadth, indicating the
overall health of the market, was weak. The market sentiment was hit adversely after minutes from the Federal
Reserve's last meeting signaled US stimulus may be reduced in coming months. The US central bank currently buys
bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's
biggest economy. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets
this year. In the foreign exchange market, the rupee edged lower against the dollar due to broad dollar gains after
minutes from the US Federal Reserve's October policy meeting showed the US central bank considering an
imminent slowing of its bond-buying program. Nifty fell 2.02% to 5999.05 and Sensex fell 1.97% to 20229.05
India will close the special concessional swap rate offered to lenders raising funds abroad on 30 November 2013,
according to the text of the speech Finance Minister P. Chidambaram gave in Singapore today, 21 November 2013.
Indian government bond prices dropped after minutes from the US Federal Reserve's October policy meeting
showed the US central bank considering an imminent slowing of its bond-buying program.
The annual headline inflation is expected to moderate to near 5% as there was reasonable price stability in some
major commodities, the finance minister said on Thursday, 21 November 2013. P. Chidambaram made the comment
in a lecture at the National University of Singapore. Government data on 14 November 2013 showed that the
headline inflation had accelerated to an eight-month high of 7% in October, mainly driven by higher fuel and
manufactured goods prices. Chidambaram also said the fiscal deficit target of 4.8% of gross domestic product in
2013/14 would not be breached under any circumstances.
Fitch Ratings said that the spillover effects of a weaker rupee have not significantly hurt India's creditworthiness, and
hence would not trigger any rating action as this point. India's ratings already incorporate both the sovereign's
vulnerabilities and tolerance for volatility in global financial market conditions, Fitch said.

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The rating agency said that India's economy has not lost much momentum, with both agriculture and exports remaining resilient and
providing a cushion. Fitch therefore expects the economy to recover with real GDP forecast to rise 4.8% in FY 2014 (financial year
ending March 2014) and 5.8% in FY 2015, compared with a 5% rise in FY 2013. The modest economic recovery, however, will continue
to undermine India's banking sector, which is facing a combination of weakening asset quality, eroding profit and declining capital.
Nonetheless, these factors are likely to have only a moderate effect on the banking sector's ability to supply credit to the economy.
Inflation has risen only moderately, despite higher import prices stemming from the weaker rupee. The Reserve Bank of India (RBI) has
also signalled that it has started to place a greater focus on capping CPI. The current account deficit is narrowing, following measures to
curb gold imports, a weaker exchange rate, and softer domestic demand. Fitch forecasts the current account deficit to decline to 3.1% of
GDP in FY 2014 (versus 4.8% in FY 2013). This fall, however, will not be enough to shield India from further pressures related to the
eventual start of Fed tapering.
India's budget remains under pressure as the central government's (CG) fiscal deficit in the first six months of FY 2014 stood at 76% of
the full-year target, Fitch said. The authorities have indicated that they are still committed to lowering the fiscal deficit to 4.8% of GDP
(versus 4.9% in FY 2013). To achieve this, the CG is likely to clamp down heavily on expenditures in 2H FY 2014.
Fitch rates India at "BBB-minus", the lowest investment grade rating. It revised its outlook for the country to "stable" from "negative" in
June.
Index heavyweight and cigarette major ITC edged lower in choppy trade. Infosys trimmed intraday losses in late trade. Reliance
Industries extended intraday losses in late trade. Future Retail slumped after the National Stock Exchange said it would exclude the
company from its derivatives segment. Kirloskar Oil Engines jumped after four block deals were executed on the scrip on BSE.
ONGC may be in focus on reports its overseas unit ONGC Videsh (OVL) and State oil group Petrovietnam have signed a memorandum
on joint exploration of crude oil. The exploration pact between Petrovietnam and OVL would allow activities in Vietnam, India as well as
in a third country, reports added.
Tata Power Company may be in focus on reports Vietnam's Industry and Trade Ministry has signed a memorandum with the company on
the construction of a $1.8 billion thermal power plant in Vietnam's southern province of Soc Trang.
Wyeth surged 5.95%, with the stock extending Wednesday's 20% rally triggered by the company and Pfizer announcing that the board of
directors of the two companies will separately consider merger proposal
Bombay Dyeing & Manufacturing Company jumped 3.75% after the Bombay High Court allowed the company to surrender to BMC and
MHADA its land in Wadala in lieu of its land in Lower Parel.
Future Retail fell 3.78% after the National Stock Exchange said it would exclude Future Retail from its derivatives segment.
SKS Microfinance rose 3.54% after the company said that the Reserve Bank of India has classified the company as non-banking financial
company-micro finance institution with effect from 18 November 2013.
Sterling Biotech was locked at 20% upper circuit after the company said that at the meeting of the holders of the existing bonds held on
Wednesday, 20 November 2013, the bond holders have passed and approved, amongst others, the extraordinary resolution to approve
exchange and substitution of the existing bonds with and for the Zero Coupon Convertible Bonds due 2018 and the terms and conditions
thereof.

3. Global news
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European stocks dropped on Thursday after minutes from the US Federal Reserve's latest meeting showed the central
bank could start to taper its asset purchases at one of the next meetings. Data from China showing slower growth in the
manufacturing sector also hampered the investing mood. Asian stocks fell on Thursday, 21 November 2013, after minutes
from the Federal Reserve's last meeting signaled US stimulus may be reduced in coming months and as a preliminary
gauge showed that China's manufacturing activity decelerated this month. Trading in US index futures indicated that the
Dow could advance 19 points at the opening bell on Thursday, 21 November 2013. US stocks fell on Wednesday, 20
November 2013, after the minutes of the Federal Reserve's October meeting minutes signaled the central bank is on track
to slow down its $85 billion a month bond bond-buying program that has boosted the equity market
German private-sector activity grew in November at its fastest rate in almost a year. Data provider Markit said Thursday a
preliminary reading of its composite Purchasing Managers' Index for Germany rose to 54.3 in November from 53.2 in
October, putting it further above the 50 threshold that denotes month-to-month growth. The expansion was fastest in the
services sector, the index for which climbed to 54.5, while the index for manufacturing--the heart of Germany's exportdriven economy--edged up to 52.5, its strongest reading in over two years. New orders taken by businesses across the
economy also rose at the fastest rate in over two years.
France's economy worsened in November, a survey suggested Thursday, as activity in the private sector ended a brief
period of growth to fall at the fastest rate in five months. Data provider Markit said a preliminary reading of its composite
Purchasing Managers' Index for France fell to 48.5 in November, underneath the 50 threshold that denotes month-tomonth growth. The index in September and October had shown gradually rising activity among manufacturers and
service providers, with readings of 50.5 in both months. Incoming business fell, as did employment and firms' confidence
about future activity levels. Activity fell across both the manufacturing and services industries.
China manufacturing activity growth slipped to a two-month low as export orders swung to a decline, according to
preliminary results from HSBC's monthly gauge of the sector, released Thursday. The "flash" version of the HSBC/Markit
China manufacturing Purchasing Managers' Index eased to 50.4, compared to last month's 50.9 reading.
China may not be able to end its reliance on investment and exports for growth over the next three to five years despite
plans for economic restructuring, an adviser to the central bank said on Thursday, 21 November 2013. Speaking at a
financial seminar, Song Guoqing said that China's high savings rate is hindering the government's efforts to boost
domestic consumption and reduce the role of exports and investment in driving growth. China's high savings rate is partly
due to an aging population combined with a lack of a reliable social safety net, he noted.
The Bank of Japan kept its policy rates and asset-purchasing program unchanged Thursday, as widely expected. The
decision, which came just three weeks after the central bank's previous policy statement, was unanimous. It also made no
changes to its assessment of the economy, which it said "has been recovering moderately" as "exports have generally been
picking up." It also cited gains for businesses' fixed investment and corporate profits.
US Central bank policy makers "generally expected that the data would prove consistent with the committee's outlook for
ongoing improvement in labor-market conditions and would thus warrant trimming the pace of purchases in coming
months," according to minutes of the Federal Open Market Committee's Oct. 29-30 meeting

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