2

\

Current Market Scenario

2

\

2

\

2

\

2

\

2

\

2

\

2

\

2

\

2

\Market Exhibits Optimism

INDEX WATCH

INDEX 13, May 8, Apr % Change

Nifty 7,814 7,555 3.4

Sensex 25,489 24,673 3.3

CNX Midcap 13,130 12,793 2.6

BSE Small Cap 11,113 10,664 4.2

• Better Q4 results

• Above normal monsoon forecast

• Positive liquidity flows

• Stable global markets

2

\Govt. Amends Mauritius Treaty

• Investments from Mauritius will start

attracting capital gain tax from April 2017

• 50% of domestic tax rate for FY18, 19

• Full tax from FY2020 onwards

• Investments made prior to April 2017 will

not attract capital gains

2

\Impact of Mauritius Treaty

• Domestic and Foreign investors will have level playing field

• Mauritius Treaty aimed to curb black money

• Short Term speculative money inflows will get impacted

• Govt. has taken sensible steps without creating much panic in market

2

\Tax Rate Comparisons

Domestic Investors Tax Treaty Investors

Short Term

Capital Gain15 % Nil

Long Term

Capital GainNil Nil

Derivatives Gain 30 % Nil

STT Applicable Applicable

2

\

Q4 Result Performance

Results of 291 companies

% Change (YoY)

Mar 2016 Mar 2015

Sales 6.3 - 2.3

Net Profit 15.0 1.6

2

\

Q4 Result – Sensex Companies

Results of 13 companies

% Change (YoY)

Mar 2016 Mar 2015

Sales 6.3 - 8.7

Net Profit 11.0 4.7

2

\Above Normal Monsoon Forecast

• IMD and Skymet forecasts above normal

monsoon

• Southwest monsoon key for economic

revival

• Two consecutive below normal monsoon

affected rural economy significantly

2

\Markets Hoping Earnings Growth

• Good monsoon expected to boost

economy

• 7th Pay Commission to be implemented

soon

• Analyst much hopeful of earnings recovery

this year

2

\Equity Mutual Fund Flows

-4,000

-2,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

May June July Aug Sep Oct Nov Dec Jan-

16

Feb-

16

Mar-

16

Apr-

16

FY16

Cr.

4,042

9,850

11,999

5,840

8,760

5,014

6,005 6,073

3,1082,128

1,634

- 3,206

2

\FII Turns SellersFII Flows

-3

-2

-1

0

1

2

3

4

Jun

Aug Oct

Dec Fe

b

Apr

Month

$ B

n

3.1

- 0.5 - 2.5 - 0.9

0.8 1.0

- 1.0 - 0.8- 1.6

- 0.4

1.9

0 *

* Till May 12

2

\

-15

-10

-5

0

5

10

15

20

25

30

2003 2005 2007 2009 2011 2013 2015

FII Flows FII Flows -- Equity Equity

billion

US $

17.6

-11.9

17.4

29.3

- 0.3

24.3

20.1

3.2

16.1

1.9*

* Till May 12

2

\IPO Market Gaining Stream

0

2000

4000

6000

8000

10000

12000

14000

CY

2011

CY

2012

CY

2013

CY

2014

CY

2015

CY

2016

Am

ount R

ais

ed C

r.

*

* Till April

2

\IPO Issues – New Normal

• Investors are advised to apply only minimum quantity as new SEBI norms favors distributing minimum lot to all of them

• Most of IPO are issued at very high valuation

• Most issues are offer for sale by existing investors

2

\Crude Oil Bottomed ?

2

\PSU Banks Performance

• PSU banks continue to post poor

performance

• NPA on higher side

• One more year needed for NPA to come

down

2

\Next Global Watch - UK Referendum

• UK to hold referendum on June 23 to decide on staying with European Union

• European Union formed after World War II for economic co-operation between member countries

• Common rules in many areas and easy immigration

• Stocks like Tata Motors expected to see volatility before voting

2

\Sectors Attracting Investors

• Sugar

• Paper

• Textiles

• Fertilizers

2

\Events to Watch

• Monsoon

• Global markets

• Q4 Results

• Election Results

2

\

Thank You