May 18, 2015 to May 22, 2015
Contents
 Index Views
 SENSEX Index Movers
 BSE 200 Index Movers
 FII and MF Data
 SENSEX Movement
 Key Developments – India
 Key Developments – International
Mutual Fund investments are subject to market risks, read all scheme
related documents carefully.
2
May 18, 2015 to May 22, 2015
Index Views
Last
Closing
% Change Over
1 week
1 month
YTD
1 year
8,459
2.38
0.35
2.13
16.25
SENSEX
27,958
2.32
0.24
1.67
14.70
NSE MIDCAP
13,089
0.90
1.63
4.01
27.67
6,964
2.01
0.38
2.82
19.23
NIFTY JUNIOR
19,902
1.04
2.67
6.55
26.07
BSE SMALLCAP
11,208
1.51
(1.07)
0.46
26.19
3,536
2.04
0.53
3.15
18.99
18,286
0.07
1.37
2.60
10.53
5,091
0.84
1.10
7.49
22.54
NIKKEI
20,264
2.69
0.65
16.12
41.34
HANG SENG
27,993
0.61
0.21
18.59
21.95
SHANGHAI COMP
4,658
8.10
5.89
43.99
130.43
BSE OIL & GAS
9,497
1.89
0.18
(4.02)
(15.96)
BSE CAPITAL GOODS
16,654
2.68
(3.49)
7.85
15.14
BSE AUTO
19,179
0.53
3.58
2.94
33.80
BSE FMCG
7,856
0.82
(2.05)
1.98
17.06
17,083
3.30
1.63
16.52
68.35
6,115
4.01
1.56
4.68
27.17
BSE IT
11,078
4.72
1.99
4.42
30.94
BSE BANK
21,192
1.33
1.11
(1.24)
22.93
BSE PSU
7,660
0.59
(1.78)
(6.89)
(7.63)
BSE REALTY
1,558
1.07
(5.61)
0.16
(19.56)
BSE METALS
9,860
(0.23)
(1.49)
(8.30)
(19.70)
10,402
2.21
(3.28)
7.53
25.27
NIFTY
NSE 500
BSE 200
*DOW JONES
*NASDAQ
BSE HEALTHCARE
BSE TECH
BSE CONSUMER DURABLES
SOURCE : BLOOMBERG
* DENOTES THURSDAY CLOSE
3
May 18, 2015 to May 22, 2015
SENSEX Index Movers
Last
Price
% Change Over
1 week
1 month
YTD
1 year
Sun Pharmaceutical Industries Ltd
1,003
6.01
3.74
21.44
72.95
Bajaj Auto Ltd
2,311
5.90
16.19
(5.25)
16.36
Tata Consultancy Services Ltd
2,620
4.38
7.01
2.54
26.13
Housing Development Finance Corp
1,288
4.34
0.64
13.44
40.00
Gail India Ltd
396
4.33
5.47
(10.97)
(7.06)
Tata Motors Ltd
515
(0.94)
(1.67)
4.83
20.83
Sesa Sterlite Ltd
207
(1.21)
(1.73)
(3.11)
(19.93)
Cipla Ltd/India
674
(1.45)
2.46
7.71
73.99
State Bank of India
282
(1.71)
(0.58)
(9.43)
12.45
Tata Steel Ltd
342
(6.03)
(2.73)
(14.47)
(27.49)
SOURCE : BLOOMBERG
BSE 200 Index Movers
Info Edge India Ltd
Last
Price
% Change Over
1 week
1 month
YTD
1 year
836
16.07
(2.14)
(1.57)
23.92
65
14.79
1.88
(6.72)
(41.05)
1,194
11.56
5.78
24.32
156.86
319
10.06
11.17
31.76
69.93
1,427
8.89
(17.93)
41.32
97.79
18
(6.79)
(26.84)
(28.88)
(76.15)
Gujarat Gas Co Ltd
771
(7.03)
(1.88)
0.81
106.85
Coromandel International Ltd
236
(7.12)
(7.40)
(23.36)
(9.23)
Pidilite Industries Ltd
549
(7.59)
(4.91)
1.14
68.20
1,039
(11.96)
(11.39)
(4.17)
46.24
Jain Irrigation Systems Ltd
Strides Arcolab Ltd
Voltas Ltd
Wockhardt Ltd
Jaiprakash Associates Ltd
AIA Engineering Ltd
SOURCE : BLOOMBERG
4
May 18, 2015 to May 22, 2015
FII and MF Data (Week Ended 22.05.2015)
Rs. Crores
FII GROSS PUR
25,663.70
FII GROSS SELL
23,896.49
FII NET
1,767.21
FII MONTH T0 DATE NET
(5,867.44)
MF GROSS PUR
3,575.80
MF GROSS SELL
2,897.00
MF NET
678.80
MF MONTH T0 DATE NET
3,010.10
SOURCE : SEBI
SENSEX WEEKLY
28000
27,958
27950
SENSEX LEVEL
27900
27,837
27850
27800
27,809
27750
27700
27,687
27650
27,646
27600
5/18/2015
SOURCE : BLOOMBERG
5/19/2015
5/20/2015
DATE
5/21/2015
5/22/2015
5
May 18, 2015 to May 22, 2015
Key Developments
India:

Indian stocks rallied, with the benchmark index set for a third straight weekly advance, after the nation’s
biggest lender’s fourth-quarter profit beat estimate. State Bank, the nation’s biggest lender, surged the
most in two weeks, after reporting lower bad loans. ITC Ltd., the largest cigarette company, climbed for the
first time in four days before its earnings report. Britannia Industries Ltd. rose the most in 11 months after
posting profit that beat estimates. Oil & Natural Gas Corp. gained for a second day. The S&P BSE Sensex
increased 0.7 percent to 28,013.28 at 1:32 p.m. in Mumbai, taking the week’s rally to 2.7 percent. The
gauge is poised for a five-week high amid expectation that slowing inflation will give the Reserve Bank of
India room to cut interest costs at its June 2 meeting. In the U.S., stocks rose to record levels as mixed
economic data added to speculation the Federal Reserve won’t rush to raise rates. “The markets are up on
expectation the RBI will reduce interest rates by at least 25 basis points if not 50,” R.K. Gupta, managing
director of Taurus Asset Management Co., which has about $650 million in assets, said in an interview in
New Delhi. “Global markets, too, are stable as the Fed is unlikely to raise rates in June.” Britannia soared
6.9 percent to a record and ONGC added 1 percent. Sun Pharmaceutical Industries Ltd., India’s most
valuable drugmaker, climbed 2.4 percent. ONGC added 1.2 percent. State Bank said its fourth-quarter
profit rose 23 percent to 37.4 billion rupees, beating the 35 billion rupees estimated by analysts. Nonperforming assets fell to 4.3 percent from 4.9 percent in the December quarter. The stocks jumped 4
percent, the best performance on the Sensex.

State Bank of India, the country’s largest lender by assets, posted a bigger-than-estimated increase in
fourth-quarter profit as bad loans fell and interest income rose. Net income climbed 23 percent from a year
earlier to 37.4 billion rupees ($589 million), or 5.01 rupees a share, in the three months ended March 31,
the Mumbai-based lender said Friday. That beat the 35 billion-rupee median of 26 analyst estimates
compiled by Bloomberg.The result underscored Chairman Arundhati Bhattacharya’s progress in bolstering
profit by curtailing soured loans while boosting credit growth. SBI joins Bank of Baroda, India’s secondlargest lender by assets, in bucking a trend of increases in bad debt at the country’s banks. “The sharp
improvement in asset quality surprised most investors,” Hatim Broachwala, a banking analyst at Nirmal
Bang Institutional Equities Ltd. in Mumbai, communicated “We’ll wait for another quarter to see whether
this improvement is sustainable.” State Bank’s gross bad-loan ratio narrowed to 4.25 percent from 4.9
percent reported in December, the bank said in an exchange filing. Provisions for soured debt fell by 21
percent from a year earlier. The shares rose 0.2 percent to 290.70 rupees at 2:08 p.m. in Mumbai trading,
paring this year’s decline to 6.8 percent. The S&P BSE India Bankex, which tracks 12 lenders, slipped 0.6
percent in 2015. The bank’s total outstanding loans climbed 7 percent from a year earlier to 13.4 trillion
rupees in March, the report showed. Net interest income, or revenue from lending minus payments on
deposits, rose 12 percent to 550 billion rupees. Soured debt in India’s banking system reached 4.79
percent of total loans at the end of 2014, the highest in at least eight years, central bank data show. Bank
of Baroda narrowed its gross bad-debt ratio to 3.72 percent in the quarter ended March from 3.85 percent
in the December quarter, an exchange filing showed.

Emerging-market stocks rose, paring a weekly loss, as consumer-discretionary companies climbed and
Chinese equities rallied. Malaysia’s ringgit strengthened as oil headed for a record run of weekly gains.
Belle International Holdings Ltd. surged 13 percent in Hong Kong after signing a cooperation agreement
with Alibaba Group Holding Ltd.’s Tmall.com. The Shanghai Composite Index jumped to a 2008 high and
the Shenzhen Composite Index capped its best weekly surge since 2008. The ringgit and South Korea’s
won added at least 0.4 percent versus the dollar. Russia’s ruble rose for the first time in four days. The
MSCI Emerging Markets Index advanced 0.8 percent to 1,041.26 at 9:09 a.m. in London, trimming losses
this week to 0.2 percent. Chinese equities headed for its best weekly gain in five months after weak
6
May 18, 2015 to May 22, 2015
manufacturing data spurred speculation the government may escalate measures to stimulate the economy.
U.S. Federal Reserve Chair Janet Yellen is scheduled to speak on the economy. Oil headed for its 10th
straight weekly advance.

Goldman Sachs Group Inc. has put Lodha Developers International Ltd. among its top junk-bond bets, as
Asian high-yield debt delivers the best returns in three years. The homebuilder’s 2020 notes, which at 12
percent carry the highest coupon of any active Indian offshore debt, were added by the New York-based
bank to its 20 most-favored speculative-grade trades in the region, only the second addition from India after
ICICI Bank Ltd.’s 2022 debentures in September. The country’s biggest real-estate company represents
“good value” with an 11 percent yield given its leverage ratio and land costs, Goldman Sachs said May 19.
The call is a fillip for Mumbai-based Lodha as the developer seeks funds for its foray into the U.K. market
amid a housing slump at home. Fund managers bought 40 percent of Lodha’s notes, while private banks
took 26 percent. The developer is expanding overseas after home sales in India’s top six cities fell 8
percent in the three months to March 31 from a year ago, research firm Liases Foras estimates. “You’ll
probably need strong conviction to buy at these yields, which are really where the private banks tend to
come in,” said Kim Jinha, the head of global fixed income in Seoul at Mirae Asset Global Investments Ltd.
“There could be catalysts for Lodha from India’s reform plans,” said Kim, who doesn’t own the debt.
International:

Bond valuations have gotten so rich that some of Canada’s largest investors say they’re avoiding the fixedincome market even while predicting lower interest rates. Bank of Montreal, Dynamic Funds and the
Caisse de Depot et Placement du Quebec are among the investment management companies and
pension funds saying that they’re cutting bond holdings in favor of assets such as infrastructure, real estate
and equities. The comments echo warnings from DoubleLine Capital’s Jeffrey Gundlach to Federal
Reserve Chair Janet Yellen, who suggested this month that bonds were overpriced. Money has piled into
the bond market worldwide since the 2009 recession as central banks cut interest rates to spur their
economies, and in some cases bought bonds themselves to drive borrowing rates further down. That
helped push yields to record lows. The rout in global bonds earlier this month that wiped out more than
$400 billion in market value has some Canadian investors saying it may only be a start. “Stop calling
equities the risk trade -- the risk assets are bonds,” Brian Belski, chief investment strategist at Bank of
Montreal, said Thursday at the Bloomberg Economic Series Canada conference in Toronto. “Clients need
to diversify out from bonds. There are bond proxies and bond products that you should have, clearly, but
income can be and should be restored through equity income and preferred” shares, he said.

German business confidence fell for the first time in seven months in May, signaling caution over the
growth outlook for Europe’s largest economy. The Ifo institute’s business climate index dropped to 108.5
from 108.6 in April. That still beat the median estimate of 108.3, and an earlier report showed German
capital investment increased at the fastest pace in a year last quarter. The Bundesbank has predicted that
German expansion will continue in the coming months as record-low unemployment supports consumer
spending. At the same time, risks remain, notably from uncertainty over Greece’s place in the euro-area.
“The weakness in global trade in early 2015, persistent geopolitical uncertainty, together with heightened
volatility on European financial markets, explain the decline in German business sentiment,” said Anna
Maria Grimaldi, an economist at Intesa Sanpaolo SpA in Milan. Underlying momentum “remains solid,” she
said. Ifo’s measure of current conditions climbed to 114.3 in May from a revised 114 in April. A gauge of
expectations fell to 103 from 103.4. Germany’s DAX Index of stocks was little changed at 11,856 at 10:08
a.m. Frankfurt time. The euro was 0.4 percent higher at $1.116. One concern is Greece, where the
government might run out of cash and precipitate a regional crisis that could hurt German businesses.
7
May 18, 2015 to May 22, 2015
Negotiations in Riga between the Greek, French and German government leaders ended early Friday
morning without any sign of a breakthrough that will unlock bailout funds.

Regulators’ efforts to rein in Wall Street’s biggest banks are in danger of backfiring. Guidelines aimed at
strengthening lending standards are shifting the market for high-yield credit to less-supervised loan funds,
raising alarm this week from the Financial Stability Oversight Council. Because the funds don’t have
depositors, some of their money comes from Wall Street banks, leaving systemically important institutions
exposed to risks regulators hoped to avoid. Loans by nonbanks such as KKR & Co. and Apollo Global
Management LLC affiliates are a small part of the market, but they’re growing. Direct-lending funds, which
raise money from institutional investors such as pension funds and insurance companies, surged to a
global record last year of $29.9 billion, according to financial data firm Preqin. Loans by U.S. business
development companies, or BDCs, many of which have credit lines with banks, jumped to $55 billion last
year from $17 billion in 2010, according to Deloitte LLP. Asset managers are reshaping the market for
lending to midsize companies, some top U.S. bankers told the Federal Reserve Board earlier this month.
Regulators have scrutinized large banks for risk, publishing strict guidance on leveraged lending in 2013.
That’s allowing non-bank funds, many with ties to private-equity firms, to fill the void by helping finance
buyouts and indebted companies. The credit sustains jobs and businesses, but it’s also operating beyond
the oversight of bank supervisors.

China and Hong Kong will start cross-border sales of funds on July 1, widening access to financial markets
and capital in the world’s second-largest economy. The initial quota for the program will be 300 billion yuan
($48.4 billion) in each direction, regulators in China and Hong Kong said in a joint statement. The
regulators will establish a way to vet funds, it said. The allocation was bigger than anticipated, according to
Invesco Ltd., which oversaw $812 billion globally at the end of April. Mutual recognition opens a new
channel for foreign asset-management firms to tap household savings of around $8 trillion in China, where
tight capital controls remain. It also comes six months after the start of a cross-border stock link program
allowing mainland investors to buy Hong Kong stocks while giving overseas funds unprecedented access
to Shanghai shares. “I expect to see a balanced two-way flow under the mutual fund recognition program,”
said Ken Hu, the Hong Kong-based chief investment officer for Asia-Pacific fixed income at Invesco.
“Chinese investors are keen to invest overseas now. One of the reasons is that expectations of yuan
appreciation have greatly reduced so there’s more incentives to invest overseas.” Futures on the Hang
Seng China Enterprises Index of mainland stocks traded in Hong Kong gained 1.8 percent at 5:42 p.m.
local time, while those for the Hang Seng Index advanced 0.9 percent. Contracts on the SGX FTSE China
A50 Index dropped 0.1 percent in Singapore. The offshore yuan traded at 6.1972 per dollar, little changed
from Thursday.
News source: Bloomberg
CL01814
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. 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 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
8