The World This Week - 2nd to 7th Nov, 2015

1. The World This Week
November 02 – November 07, 2015

2. Equity View:
There has been a massive victory, beyond expectations, for “Grand Alliance” in Bihar elections but it is to
be understood that politics at state level is different from politics at the Centre. The agenda which can be
kept at Centre may not be same at the state level because it can lead to failures. The Centre had single
point agenda of development against the agenda of caste and reservations combined with development
which was floated by Grand Alliance and such a twin-agenda has beaten the single point agenda.
Markets have always reacted to the verdict of polls so investors can expect 200 – 250points fall in Nifty
and Nifty can be range bound at the levels of around 7500 – 8500 for next 12 months period. On this
auspicious day of “Dhanteras” one can make fresh investments and expect a decent double digit return
from Diwali 2015 – Diwali 2016. There is a possibility of delay in key reforms like GST (Goods and Services
Tax) in parliament due to outcome of Bihar polls but focus should be more on development agenda
rather than reforms agenda. Government must keep on delivering on the development front irrespective
of any reforms being passed in the parliament. Results of second quarter are in line with expectations but
there is some divergence as few sectors have performed well as compared to some other sectors which
have done badly. Thus, each and every sector will perform well and as per their potential only if all the
macro economic factors are favorable. A few Pharma companies have been facing a downward trend
recently but it is not the case with the entire sector. Only those companies which have issues with US
FDA are not performing well whereas other companies have beaten the benchmark with their
performance. Hence until these issues resolve Pharma sector may be under pressure. The urban
consumption sectors like FMCG, Automobiles and Financials are looking good in their future outlook.
Wish you all, “HAPPY DHANTERAS and HAPPY DIWALI”.
News:
DOMESTIC MACRO:
 Government decides to levy a 0.5% Swachh Bharat Cess proposed in the Budget on all services that are
taxed presently from November 15.
 Government is considering a proposal to scrap cooking gas subsidy for those earning above a certain
threshold.
 Prime Minister Narendra Modi launches three gold-related schemes, including a coin engraved with
the images of national emblem Ashok Chakra and Mahatma Gandhi on its two sides, in a bid to put idle
gold into productive use.
 President Pranab Mukherjee launches 'IMPRINT India', a joint initiative of the country's top educational
institutes, aimed at developing a roadmap for research to solve major engineering and technology
challenges relevant to the nation today.
 Government decides that telecom companies can share and trade their spectrum after paying the latest
auction winning prices to the government.

3. GLOBAL MACRO
EURO
 UK industrial production dropped by 0.2% in September after a 0.9% rise in August.
 UK visible trade gap fell to 9.4 bn pounds in September from 10.8 bn pounds in August.
 Bank of England keeps its key interest rate at a record low of 0.5%; also expects inflation to stay
below 1% until the second half of 2016
United States
 US consumer credit rose $28.9 bn, or at a 10% annual rate in September, compared with $16 bn in August.
 US non-farm productivity increased at a 1.6% annual rate in Q3 after increasing at an upwardly revised
3.5% rate in the second quarter; unit labor costs increased at a 1.4% rate in the third quarter after
dropping 1.8% in the second quarter.
China
 China’s exports fell 6.9% in October from a year ago, while imports plunged 18.8%, thereby resulting in a
trade deficit of $61.6 bn.
Indices:
Date Sensex Midcap Auto Bankex CD CG FMCG HC IT Metals O&G Power Realty Teck
2/11/2015 26,559 10,983 18,175 19,779 11,935 14,789 7,873 17,936 11,291 7,215 9,093 1,914 1,384 6,131
3/11/2015 26,591 11,014 18,186 19,758 11,851 14,709 7,882 17,977 11,394 7,218 9,168 1,926 1,383 6,170
4/11/2015 26,553 11,034 18,493 19,663 11,824 14,660 7,905 17,835 11,329 7,247 9,160 1,920 1,381 6,142
5/11/2015 26,304 10,871 18,401 19,373 11,730 14,520 7,881 17,466 11,191 7,183 9,080 1,898 1,345 6,056
6/11/2015 26,265 10,827 18,264 19,497 11,767 14,536 7,870 16,970 11,280 7,154 9,109 1,879 1,345 6,096
-1.11% -1.43% 0.49% -1.43% -1.41% -1.71% -0.04% -5.38% -0.10% -0.84% 0.17% -1.81% -2.82% -0.57%
Commodities and Currency:
Date USD GBP EURO YEN
Crude
(Rs. per BBL)
Gold
(Rs. Per 10gms)
02/11/2015 65.47 101.06 72.21 54.38 3232 26387
03/11/2015 65.45 100.96 72.10 54.24 3195 26232
04/11/2015 65.56 101.12 71.79 54.17 3308 25939
05/11/2015 65.67 101.02 71.34 54.05 3185 25803
06/11/2015 65.79 99.94 71.54 54.00 3151 25854
-0.49%
Rupee
Depreciated
1.12%
Rupee
Appreciated
0.94%
Rupee
Appreciated
0.70%
Rupee
Appreciated
-2.51% -2.02%

4. Debt:
Tenor Gilt Yield in % (Friday) Change in bps (Week)
1-Year 7.24 4
2-Year 7.42 1
5-Year 7.70 2
10-Year 7.69 4

5. Kaushik Dani Jharna Agarwal
Nupur Gupta Ridhdhi Chheda Aakash Mehta
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”