20 Yrs of Journey - Indian Stock Market - 06022012

8/2/2019 20 Yrs of Journey - Indian Stock Market - 06022012

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INDIAN ECONOMY AND STOCK MARKET

The March Forward

20 YEARS OF

CONCERNS, CHANGES, OPPORTUNITIES & ASPIRATIONS

JANUARY-2012

1


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Developed Markets snapshot - CY 11

Source: Bloomberg; all changes YoY; Data as on 30-12-11)

Value % change Value % change Value % change Value % changeAustralia 4056.6 -14.5 1.0 -0.2 81.2 61.1 4.7 -6.0Austria 1891.7 -34.9 1.3 -3.2 190.3 89.8 1.4 40.6Belgium 2083.4 -19.2 1.3 -3.2 316.0 45.0 1.4 40.6Canada 11955.1 -11.1 1.0 2.3 - - 1.4 9.8Denmark 390.0 -14.8 5.7 3.0 137.0 198.8 1.0 -17.6Finland 5355.1 -30.1 1.3 -3.2 77.7 132.3 1.4 40.6France 3159.8 -17.0 1.3 -3.2 222.3 120.1 1.4 40.6

Germany 5898.4 -14.7 1.3 -3.2 103.8 77.6 1.4 40.6Greece 680.4 -51.9 1.3 -3.2 - 184.9 1.4 40.6Hong Kong 18434.4 -20.0 7.8 -0.1 - 90.3 0.4 36.1Ireland 2901.8 0.6 1.3 -3.2 726.1 18.1 1.4 40.6Israel 1085.6 -18.2 3.8 8.1 - - 2.6 17.8Italy 15089.7 -25.2 1.3 -3.2 503.1 111.0 1.4 40.6Japan 8455.4 -17.3 76.9 -5.2 143.1 98.5 0.3 -1.1Netherlands 312.5 -11.9 1.3 -3.2 121.7 93.1 1.4 40.6

New Zealand 3274.7 -1.0 0.8 -0.4 96.9 56.0 2.7 -14.2Norway 357.6 -10.7 6.0 2.6 44.3 88.5 2.9 11.2Portugal 5494.3 -27.6 1.3 -3.2 1092.7 118.7 1.4 40.6Singapore 2646.4 -17.0 1.3 1.0 - - 0.4 -10.9Spain 8566.3 -13.1 1.3 -3.2 393.4 12.6 1.4 40.6Sweden 987.9 -14.5 6.9 2.6 78.0 129.3 2.0 3.2Switzerland 5936.2 -7.8 0.9 0.3 - 2.2 0.1 -69.6United Kingdom 5572.3 -5.6 1.6 -0.4 97.5 34.6 1.1 42.6

United States 1257.6 0.0 50.8 21.0 0.6 91.9

Primary equity Index Currency CDS Interest Rate ( ST)


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Emerging Markets snapshot CY11

Source: Bloomberg; all changes YoY

Value % change Value % change Value % change Value % changeChina 2199.4 -21.7 6.3 -4.7 148.9 114.7 6.3 -0.5India 15454.9 -24.6 53.1 18.7 - 8.6 20.0Malaysia 1530.7 0.8 3.2 3.4 147.4 97.8 3.2 8.1South Korea 1825.7 -11.0 1152.5 2.3 170.0 77.8 3.6 26.8Taiwan 7072.1 -21.2 30.3 3.3 - 0.8 28.4

Czech Republic 911.1 -25.6 19.7 5.6 173.8 94.0 1.2 -4.1Hungary 16974.2 -20.4 243.0 16.8 622.6 61.8 7.2 23.8Ploand 37595.4 -20.8 3.4 16.3 280.0 94.8 4.9 27.0Russia 1402.2 -16.9 32.1 5.2 275.1 88.9 7.2 77.8Turkey 51266.6 -22.3 1.9 22.5 287.0 103.8 11.3 51.4

Argentina 2462.6 -30.1 4.3 8.1 919.5 52.9 23.2 85.2Brazil 56754.1 -18.1 1.9 12.4 161.9 45.9 10.4 -10.8Chile 4177.5 -15.2 519.6 11.0 131.8 56.1 5.6 13.9Colombia 12665.7 -18.3 1938.5 1.6 154.6 36.5 5.0 43.5Mexico 37077.5 -3.8 13.9 12.9 153.2 35.1 4.8 -2.6

Israel 1085.6 -18.2 3.8 8.1 2.6 17.8Saudi Arabia 6417.7 -3.1 3.8 0.0 0.8 3.8South Africa 31985.7 -0.4 8.1 22.0 201.9 60.1 5.6 0.8

UAE - Dubai 1353.4 -17.0 3.7 0.0 448.4 6.6 1.5 -29.1

Primary equity In ex Currency CDS Interest Rate ST


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Fund flows across the globe: CY-11


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5

CONCERNS

Indian BoP crisisGold reserves pledged to raise fundsINR devalued by ~ 40%FY92 GDP growth expectations were at 1.2%Rajiv Gandhi assassinated in May91Crumbling Soviet Union - dissolved in Dec91Gulf war starts post Iraq invading Kuwait

Oct90 -Jan91

ECONOMIC, REGULATORY & TECHNOLOGICAL DEVELOPMENTSCongress under the stewardship of PV Narsimha Rao asPM and Manmohan Singh as FM unleash liberalization of Indian economyAmendment to Industrial & Trade Policy, opening of moresectors for foreign investors, reduction of trade barriersetc.

MRTP ordinance removes substantial restrictions onexpansion of businessesTax Reforms Initiated Indias peak direct tax, excise &custom duty rates were ~ 50% , ~40% & ~150%respectively > page 22

ENTREPRENEURS SEIZE THE ENSUING OPPORTUNITIESCorporate India seized opportunities post-liberalization > page 23

Oct90 Jan91: -26%


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6

CONCERNS

Harshad Mehta Scam unearthed Sensex plungesBabri Masjid demolished in Dec92

Mar- Jul92

ECONOMIC, REGULATORY & TECHNOLOGICAL DEVELOPMENTSSEBI established / CCI abolishedFIIs allowed to invest in Indian equitiesRaja Chelliah Report on taxation accepted

Telephony & Mobile opened to the private sectorMega power project policy (for >1000MW) announcedPrivate airlines begin to roll out services(1991-93)Cable TV started in India > page 24

US-Russia cold war formally endedUS lifted trade sanctions against ChinaNAFTA signed

ENTREPRENEURS SEIZE THE ENSUING OPPORTUNITIESZee TV started in Oct92 > page 25

March July'92: -34%


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7

CONCERNS

Mumbai bomb blasts in Mar93 - over 250 deadLatur earthquake in Sep93 over 20,000 dead16th Sept92 Black Wednesday UK decides towithdraw from European Exchange Rate Mechanism

Soros made $1 bn shorting pound

Sep92 -Apr93

ECONOMIC, REGULATORY & TECHNOLOGICAL DEVELOPMENTSNational Mineral policy announced > page 26Interest rate de-regulation picks up pacePrivate sector Mutual Funds start operationsEuropean Union formally established in Nov93

ENTREPRENEURS SEIZE THE ENSUING OPPORTUNITIESInfosys IPO in 1993

(Issue undersubscribed; the Underwriter had to buy theunsubscribed portion of the issue) > page 27

Sept92 Apr93: -35%


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8

CONCERNS

Further INR depreciation in 1995MS Shoes Scam dampens the market moodMajor bond market correction globallyMexican financial crisis in 1994Jan95 Japan Kobe earthquake - 5,500 dead. Economicloss of USD 200 bnCollapse of Barings

Aug94 - Jan96

ECONOMIC, REGULATORY & TECHNOLOGICAL DEVELOPMENTSInternet commercialized in 1995India joins World Trade Organization(WTO)National Telecom Policy- NTP94 announced with licenses

given for mobile services in metros & 19 circles > page 28New Private sector banks start operationsNSE (equity segment) started in Nov94

ENTREPRENEURS SEIZE THE ENSUING OPPORTUNITIESTitan launches Tanishq jewellery in 1994 > page 29Sun Pharma IPO -1994HDFC Bank IPO -1995

Dec94 11: 8.7% CAGR

Aug94 Jan96: -28%

Dec95 11: 10.7% CAGR


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9

CONCERNS

1996 - Jain Hawala Scam unearthed. 24 politicians jailedMay96 Vajpayee Government falls in a fortnightSep96 Taliban captures Afghanistans capital Kabul

Jun- Nov96

ECONOMIC, REGULATORY & TECHNOLOGICAL DEVELOPMENTSChidambaram presented the dream budget in Feb 1997

Income Tax, Corporate Tax and Customs Dutylowered.Tax Base widened.Tax on dividends abolished. Voluntary Disclosure of Income Scheme(VDIS)announced

ENTREPRENEURS SEIZE THE ENSUING OPPORTUNITIESSteve Jobs re-joins Apple as CEO in 1996 > page 30Sabeer Bhatia launches Hotmail in July96Shift from scooters to fuel efficient bikes continues tohasten > page 31

Dec96 11: 11% CAGR

June96 Nov96: -25%


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10

CONCERNS

Asian financial crisisIndustrial slowdown intensifies coupled with high interestrates

Jul97 - Jan98

ECONOMIC, REGULATORY & TECHNOLOGICAL DEVELOPMENTSIndependent statutory regulatory body Telecom

Regulatory Authority of India(TRAI) establishedVDIS collects an income tax of Rs. 10,000 cr

ENTREPRENEURS SEIZE THE ENSUING OPPORTUNITIESLakshmi Mittal continues to buy steel mills in distress.Indian steel sector too faces the heat > page 32

July97 Jan98: -24%


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11

CONCERNSMay98 - Pokhran nuclear test. Fear of economic sanctions

pushes stock market downAug98 - Russian debt crisis. Russia defaults on its debt

obligations

Apr- Oct98

ENTREPRENEURS SEIZE THE ENSUING OPPORTUNITIESHDFC Ltd. capitalizes on low penetration of mortgagefinance > page 33

Indian IT companies scale up capitalizing on the back of Y2K opportunity

ECONOMIC, REGULATORY & TECHNOLOGICAL DEVELOPMENTSCentral Electricity Regulatory Commission(CERC)

constitutedNational Highway Authority of India(NHAI) constitutedSBI Resurgent India Bonds collect over $ 3.5bnConsumer loan cult picks up led by new private sectorbanksBanks starts Large-scale ATM roll-outs1999 BJP budget promises boost toinfrastructure sector

New Telecom Policy(NTP99) migrates the telecom sector

from fixed license fee regime to a revenue sharingmechanism and opens up long distance phone services toprivate competition

Dec98 11: 13.3% CAGR

Apr98 Oct98: -30%


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12

CONCERNS

Dot.com / Technology bubble burstsUTI suspends US- 64 for 6 months in Jul01Economic crisis in Argentina. Argentina defaults on its debt

obligations9/11 Terrorist attack on WTCAttack on Indian Parliament in Dec01

Feb00 - Sep01

ECONOMIC, REGULATORY & TECHNOLOGICAL DEVELOPMENTSDisinvestment started with Balco, HZL, VSNL etc.> page 34Goldman came out with the BRICs reportPrivate Insurance Companies start operationsNHAI Phase 1 approved in Dec.00 with GQ projectDelhi Metro begins services in 2002

ENTREPRENEURS SEIZE THE ENSUING OPPORTUNITIESDr Reddys becomes the first Indian company to get 180

day marketing exclusivity in the US generics market for40mg Fluoxetine in Aug 01

Dec01 11: 17% CAGR

Feb00 Sept01: -51%


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13

Apr-May04

CONCERNS

Sensex falls ~25% in a week as BJP loses general electionsunexpectedly and NDA Govt. fallsDec04 - Tsunami hits South India & SE Asia

ECONOMIC, REGULATORY & TECHNOLOGICAL DEVELOPMENTSNew electricity act enacted in 2003 > page 35

Gold/Silver imports freed in 2004National broadband policy announcedNorth-South 4-lane Highway corridor work startedRight to Information (RTI) Act enacted in 2005VAT implemented from 2005 onwardsGoogle which signifies the full use of internet prowess lists in Aug04 with a market cap of USD 27 billion. Todaysmarket cap ~ USD 200 bnFirst year of low cost airlines Air Deccan launched in

2003, gains traction benefits the consumers and theeconomy > page 36

ENTREPRENEURS SEIZE THE ENSUING OPPORTUNITIESInvestment Rate crosses 30% of GDP in FY05> page37

TCS IPO >page38

Apr-May04: -16%

Feb00 Sept01: -51%Dec05 11: 8.9% CAGR

Dec04 11: 13.2% CAGR


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14

CONCERNS

US real estate bubble burstsGlobal Financial crisis engulfs the world economyLehman collapses & Madoffs Ponzi Scheme unearthedRun on Northern Rock a British Bank

Jan08 Feb09

ECONOMIC, REGULATORY & TECHNOLOGICAL DEVELOPMENTS

Government announces stimulus package and RBIaggressively eases the monetary policy6th Pay Commission with ~ 40% increase in salaries forGovernment employees announcedBush signs an energy bill requiring 40% increase inmileage by 2020 over 2007 standardLimited Liability Partnership (LLP) structure allowedSpectrum for the launch of 3G auctioned in 2010

ENTREPRENEURS SEIZE THE ENSUING OPPORTUNITIESE-commerce and internet companies gain traction in India.Makemytrip, RedBus, Flipkart, IRCTC.in, Snapdeal,

Naukri.com, Shaadi.com etc. changing the way we live ourlives

Jubiliant Foodworks (Dominos) started operations in1996, listed in 2010 - captures the changing consumption

pattern in India

Dec09 11: -5.6% CAGR

Dec07 Feb09: -56%

Dec08 11: 18.3% CAGR


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15

CONCERNS

Lingering world economic crisis

Corruption issues from 2G /Common WealthFailure on policy implementation due to inter-ministerial issuesInability to enact economic legislations stemmingfrom political weaknessPopulist measures and slowing growth impacting fiscaldeficit

Persistent high inflationHigh interest rates & slowdown in capexHigh oil prices adding to CAD & INR weakness

Asset quality concerns hit the banking sector

Sep10 Dec11

Sept10 Dec11: -23%


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16

Unique Identification Number (UID) Better transmission of subsidies

Goods and Services Tax (GST) The Impending biggest tax reform in India

Power sector reforms / Franchisee route for distribution

Implementation of Right to Education Act

Opening up of the mining sector

Deregulation of the auto fuels

Financial Inclusion

Advancement in modern medicine continues to improve the quality of life and the longevity

Increasing participation of women in the work force Boost to consumption

Digital Inclusion / J curve in data consumptionMobile and E-Commerce

Expanding E-Governance

Energy efficient technologies e.g. LED / Alternate sources of power e.g. solar power

Going forward.. Opportunities ahead


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THE MARCH FORWARD

THERE WILL ALWAYS BE CONCERNS

YET ECONOMIC, REGULATORY, TECHNOLOGICAL AND SOCIAL

CHANGES WILL CONTINUE

ENTREPRENUERS WILL CAPTURE THE AVAILABLEOPPORTUNITIES

AND THIS WILL CREATE WEALTH

SO BE AN OPTIMIST ANDCONTINUE TO INVEST SYSTEMATICALLY IN EQUITIES

23/32 YEARS OF POSITIVE RETURNS >page 3917


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18

In the long-term: Stock Prices follow Earnings

Dec91 11: 10.5% CAGR

Oct90 Jan91: -26%Sensex & Sensex earnings (TTM-12) for last 10 years

Source: Bloomberg


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Sensex P/E ratio:At the lower end of the band Last 10 years

Source: Bloomberg


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20

Sensex and the underlying Book Value

Dec91 11: 10.5% CAGR

Oct90 Jan91: -26%Sensex & Sensex BV(TTM-12) for last 10 years

Source: Bloomberg


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21

Thank You


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22

Indias BoP & Taxation : 1991 to 2011

Tax/GDPIndia 10.6% UK 34% US 24%(Source: OECD)

0.0%10.0%20.0%30.0%40.0%50.0%

60.0%70.0%

050,000

100,000150,000200,000250,000

300,000350,000

Direct tax Net Indirect tax Net Direct tax/Total tax

0

50000

100000

150000

200000

250000

300000

350000

India FX Reserves $ mn

From FX reserves hardlysufficient for 3 weeks of imports in 1991 , India now hasFX reserves enough for 9months of imports

1991 2011

Highest marginal tax rate 50% 30%

Direct tax revenue Rs cr 6,900 314,606

Direct tax /Total tax revenue 19.2% 55.8%

Direct tax /GDP 2% 6.7%(Source: RBI, Dept of Economic Affairs, NIPFP Study papers, Tata AMC)


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23

Corporate India seized opportunities post-liberalization

PATFY 2011

Rs crRIL 19,738

L & T 4,002

PATFY 1990

Rs Cr

% CAGR

91 29

43 24

SOURCE: CAPITALINE PLUS, CLSA


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24

Cable & Satellite TV Households growth

From 4 lacs in 1991, cable &satellite TV connections havereached 12 cr households(estimated) by 2011

No. of channels increased from

2 to over 400

Monthly subscription chargescontinue to be competitive

Source: Frank Small Studies (Up to 1999), KPMG, Hathway Cable, Tata AMC internal research (for2000-11)

0

20

40

60

80

100

120

140

1991 1993 1995 1999 2003 2006 2009 2011

C&S Subscribers mn


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25

Zee TV

FY11

Revenue 3014

Profit 625

FY94 % CAGR

23 33

9 28

SOURCE: BLOOMBERG

Subhash Chandra, bought the transponder on AsiaSat theonly satellite beaming into India at that time - in 1991, andlaunched Zee TV


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26

JINDAL STEEL & POWER(JSPL)Captures the opportunity thrown open by

National Mineral Policy93

Source: Company, Bloomberg

FY00-11 PAT CAGR 44%Mar00 -Dec11 Stock Price CAGR 49%

0

100

200

300

400

500

600

700

800

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

FY00 FY02 FY04 FY06 FY08 FY10 Dec'11

PAT Rs cr LHS Stock Price Rs RHS


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27

Infosys

India IT Story

IT -BPO sector revenue $ 88.1 bnIT-BPO sector exports $ 59.4 bn

Direct employment 2.5 mnIndirect employment 8.3 mn

Sector revenue / GDP1998 1.2%2011 6.4%

IT,BPO exports/ Total exports1998 4%2011 26%

M Cap (Top 3 Listed co) Rs 483,921 cr

(Source: NASSCOM website all figures Fy-11 estimates)

*M Cap based on 30/12/11 prices


0

500

1,000

1,500

2,000

2,500

3,000

3,500

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

FY94 FY96 FY98 FY00 FY02 FY04 FY06 FY08 FY10 Dec'11


Infosys IPO June93 FY94 -11 PAT CAGR 48%

Mar94 -Dec11 Market Cap CAGR 45%


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28

NTP94: Bharti Airtel capitalizes on therevolution in telephony


India Telecom Story

1991 MTNL subscriber share : ~25%1991 Bharti subscriber share : 0%

2011 MTNL subscriber market share : ~ 1.2%2011Bharti subscriber market share :~ 25%(Source: 2011 Calculated from TRAI activesubscriber numbers)

1995 Mobile charge/min :~Rs. 17.02011 Mobile charge/min :~Rs.0.44

FY-11 India wireless revenue : Rs 102,230 cr(Source: Voice & Data)

FY-10 Telecoms contribution to Govt exchequerthrough revenue share and service tax (perann.) Rs. 17,000 cr(Source: DoT, Govt website on service tax)FY-11 3G/ Broadband auction Rs. 105,000cr

Source: COAI-PWC Aug11 Report on Indian mobilesector

0

50

100

150

200

250

300

350

400

450

0

10

20

30

40

50

60

70

80

90

FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Dec'11

India Wireless Subs Cr LHS Bharti Stock Price Rs RHS

Bharti IPO02 Mar02 -Dec11 Stock Price CAGR 34%


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29

Titan


Mar94 -Dec11 Stock Price CAGR 19%

0

20

40

60

80

100

120

140

160

180

200

0

1,000

2,000

3,000

4,000

5,000

6,000

FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11

Jewellery Sales Rs cr LHS PAT Rs cr LHS Stock Price Rs RHS

Tanishq salescross Rs. 250 cr

in FY02.


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30

Apple: An example of rejuvenation andtransformation

Steve Jobs re-joins Apple in 1996 & transforms the company

Launch CumulativeSales

Till Dec11(mn pieces)

iPod Q2-02 321

iPhone Q3-07 146

iPad Q3-10 40

Apple Inc. now is amongst the top two most valuable companies in the world with aM cap of USD 376bn (as of Sep11)

From a loss-making company in 1996,Apple made profits of USD26bn in 2011

Source: www.applinvestors.net


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Hero MotoCorpCatalyzed the Shift from Scooters to Motorcycles

Source: CMIE, Bloomberg

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

FY92 FY94 FY96 FY98 FY00 FY02 FY04 FY06 FY08 FY10

Industry Scooters LHS Industry Motor Cycles LHS Stock Price Rs RHS



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SAIL

Lakshmi Mittal

6th Richest in theworld with net

worth of $31 bn

(Source: Forbes RichestList2011)

0

50

100

150

200

250

FY98 FY00 FY02 FY04 FY06 FY08 FY10 Dec'11

Stock Price Rs.


Investing when thechips are down ina cyclical industrycreates wealth


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33

HDFC Ltd.Capitalizing on the under-penetration in housing finance

Source: RBI, Bloomberg

Tax deduction oninterest on home

loans doubledfrom Rs. 15,000 toRs. 30,000 in the1998 Budget and

then to Rs. 75,000in 1999 Budget.

0

100

200

300

400

500

600

700

800

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Outstanding Loans Rs cr LHS Disbursements Rs cr LHS Stock Price Rs RHS



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34

Disinvestment & Productivity improvement:Hindustan Zinc Ltd.

Source: Company

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11

Zinc (tons) LHS Lead (tons) RHS Silver (kg) RHS


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35

Pvt sector contributes almost 40% of incremental power capacity now

Source: CEA

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

FY05 FY06 FY07 FY08 FY09 FY10 FY11Public Private Pvt % of total

LHS-MEGA WATT ADDITION


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36

Air traffic spurtsAfter the advent of Budget Airlines in 2003

Source: DGCA

India Aviation Story

1991 Domestic traffic 7.9 mn2011 Domestic traffic 53.8 mn

1991 Pvt carriers share 0.4%2011 Pvt carriers share 68.5%

Airline ticket rates haveremained at similar levels forthe last 10 years

-

10.0

20.0

30.0

40.0

50.0

60.0

FY91 FY93 FY95 FY97 FY99 FY01 FY03 FY05 FY07 FY09 FY11

Domestic Air Passenger Traffic (mn )


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37

THERMAXBENEFITS FROM INCREASING GCF/GDP RATIO

Source: CSO, Company, Tata AMC


0

100

200

300

400

500

600

700

800

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

FY01 FY03 FY05 FY07 FY09 FY11

GCF/GDP % LHS Stock Price Rs. RHS

GCF-GROSS CAPITAL FORMATIONGDP GROSS DOMESTIC PRODUCT


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38

TATA CONSULTANCY SERVICES (TCS)IPO HAPPENED WHEN IT HAD A FAIRLY SIZEABLE BUSINESS -YET HAS GIVEN DECENT RETURNS TO THE SHAREHOLDERS


0

200

400

600

800

1,000

1,200

1,400

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Dec'11


FY04-11 PAT CAGR 28%RETURNS SINCE IPO AUG04-Dec11 Stock Price CAGR 26%


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39

BSE SENSEX Calendar Year Returns Last 32 Years.

Source: BSE

Positive Years 23

Negative Years 9

Year % Return

2010 17

2004 13

2002 4Year % Return 1997 19 Year % Return

2001 -18 1994 17 2007 47

2000 -21 1993 29 2006 47 Year % Return

1998 -16 1989 17 2005 42 2009 81

1996 -1 1984 7 1992 37 2003 73

Year % Return 1995 -21 1983 7 1990 35 1999 64

2011 -25 1987 -16 1982 4 1988 51 1991 82

2008 -52 1986 -1 1980 25 1981 54 1985 94

> -25 - 25 to 0 0 to 30 30 to 60 > 60

2 worst yearsin history of

Sensexhappened inrecent past

Only thrice havetwo consecutive

years beennegative

It pays to be anoptimist

23/32 = 72%odds


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Statutory Details

Statutory Details: Constitution: Tata Mutual Fund (TMF) has been set up as a Trust underthe Indian Trust Act, 1882. Sponsors: Tata Sons Ltd.& Tata Investment Corporation Ltd. Trustee: Tata Trustee Company Ltd., Investment Manager: Tata Asset Management Ltd.

Mutual Fund Investments are subject to market risks, please read SchemeInformation Document carefully before investing

Disclaimer: The views expressed in this presentation are of Tata Asset ManagementLtd. and are in no way trying to predict the markets or to time them. The viewsexpressed are for information purpose only and do not construe to be anyinvestment, legal or taxation advice. Any action taken by you on the basis of theinformation contained herein is your responsibility alone and Tata AssetManagement will not be liable in any manner for the consequences of such actiontaken by you. Please consult your Financial/Investment Adviser before investing The views expressed in this presentation may not reflect in the scheme portfolios of TataMutual Fund. This presentation has been prepared using information believed to beaccurate at the time of its use. The scripts discussed in this presentation are forillustration purposes only and it should not be construed as an investment advice todeal in such scripts. This presentation captures the end-data of indices, stock prices,

Documents

20 Yrs of Journey - Indian Stock Market - 06022012