ADVICE for the WISE

Newsletter – FEBRUARY 2012

2

Economic Update 4

Equity Outlook 8

Debt Outlook 12

Forex 14

Commodities 15

Index Page No.

Contents

Real Estate 16

Dear Investor,

The month of January was marked by an unusual return of risk appetite

amongst investors globally. While we consider this to be a welcome break

from the excessive risk aversion towards the end of 2011, a word of

caution is due. The fundamentals underlying the global economy as well as

the Indian economy have not changed much through the last month.

Hence the recent increase in the risk asset prices globally might be subject

to a sharp reversal if even a minor macroeconomic hiccup were to occur in

either Europe or the US. The recent rise in the asset prices seems based

more on a sharp turnaround in sentiment rather than actual

developments on the ground. Owing to this, the recent rally is highly

sensitive to even small change in sentiments – potentially leading to a

rapid selloff.

Timing the markets has long been advised against by investment gurus

and academics alike. We do subscribe to the broad philosophy of ill effects

of trying to catch the falling market or being excessively swayed by the

rising one. However, the crucial element of execution while practicing long

term investing is disciplined review. The downside of declaring a three

year horizon in principle but tracking portfolio value every day or every

week is that through the pressures of too low or too high levels of

markets, one is likely to commit some error or other in investing hastily or

divesting too soon or too little. The right approach then is to decide the

horizon of each investment to oneself a priori and stick to the same unless

something utterly unexpected happens. Unlike the conventional wisdom

of three years as the default horizon for any risky investment, we believe

there are multiple different horizons possible for an investment idea.

In the current market scenario, there are several avenues to makemoney provided the investment horizon is genuinely adhered to. Longterm debt, mid cap equities and infrastructure companies are theobvious candidates for the same right now. The long term debt strategyis already yielding good results with 10 year bond prices rising by over3%. Depending on inflation data and RBI stance going forward theappreciation is likely to continue. The horizons about 1 to 1.5 years. Inthe shorter term the yields may fluctuate in unexpected direction aswell.

Mid cap equities are looking attractive since the recent rally hasindicated a bottom of sorts to the broad market level. Even if themarkets were to correct from the current levels, midcap equities havenot rallied as much already and hence remain attractive buys. A goodbottom up strategy to select well-run mid cap companies is likely to bequite sound in the present market conditions. The horizon for theseideas is 2 years – during which risk appetite should return sufficiently totranscend the now relatively cheaply available large cap equities.

Infrastructure has long been taking a sustained beating in terms ofvaluations as a sector. Since the earlier high prices of the infrastructurestocks implicitly had in them continued infrastructure development inIndia which did not fully materialize, some fall there was imminent.However owing to high interest rates through 2011, these stocks wentdown much more than expected. While some of these have staged asharp recovery in January, the sector warrants more attention goingforward as the interest rates go down and infrastructure developmentpicks up again. Our expected horizon for infrastructure turnaround is 1year. 3

From the Desk of the CIO…

“Advisory services are provided through Karvy Stock Broking Ltd. (PMS) having SEBI Registration No: INP000001512. Investments are subject to market risks. Please read the disclaimer on slide no.19”

4

As on 31st

Jan 2012Change over last month

Change over last year

Equity Markets

BSE Sensex 17194 11.2% (6.2%)

S&P Nifty 5199 12.4% (5.6%)

S&P 500 1312 4.4% 2%

Nikkei 225 8802 4.1% (14.1%)

Debt Markets

10-yr G-Sec Yield 8.28% (29 bps) 22 bps

Call Markets 8.60% (40 bps) 170 bps

Fixed Deposit* 9.25% 0 bps 100 bps

Commodity Markets

RICI Index 3750 3.4% (6.7%)

Gold (`/10gm) 28122 3.5% 41.2%

Crude Oil ($/bbl) 110.26 2.0% 17.9%

Forex

Markets

Rupee/Dollar 49.68 7.21% (7.79%)

Yen/Dollar 76.59 1.1% 7.3%

Economic Update - Snapshot of Key Markets

10 yr Gsec

Gold

* Indicates SBI one-year FD

75

80

85

90

95

100

105

110

115

120Sensex Nifty

S&P 500 Nikkei 225

15000

17000

19000

21000

23000

25000

27000

29000

31000

40.00

42.00

44.00

46.00

48.00

50.00

52.00

54.00

56.00

`/$

7.30

7.80

8.30

8.80

9.30

5

US

Europe

Japan

Emerging economies

• India's manufacturing sector grew at its fastest pace in eight months in January as factory output surgedthe most on record on increased domestic and foreign demand. The seasonally adjusted HSBC PurchasingManagers’ Index (PMI), edged up to 57.5 in January from December's final reading of 54.2.

• China’s PMI registered 48.8 in January, broadly unchanged from December’s reading of 48.7, a levelindicating of moderate deterioration in Chinese manufacturing activity

• The Conference Board Consumer Confidence Index which had increased in December retreated inJanuary. The index now stands at 61.1, down from 64.8 in December.

• Over the last 12 months, Consumer Price Index for All Urban Consumers (CPI-U)increased 3.0 percentbefore seasonal adjustment. It was unchanged in December on a seasonally adjusted basis

• Nonfarm payroll employment rose by 200,000 in December, and the unemployment rate, at 8.5 percent,continued to trend down, the U.S. Bureau of Labor Statistics reported. Job gains occurred intransportation and warehousing, retail trade, manufacturing, health care, and mining.

• Unemployment in the eurozone stayed at a record high in November as the impact of the sovereign debtcrisis rumbled on, according to official figures. The jobless rate in the 17 nations that use the euro was10.3% in November for the second month in a row, (Oct-10.3%) according to the Euro statistics agency.

• Eurozone Manufacturing Purchasing Managers' Index (PMI) rose in January to 48.8 from December's 46.9.The PMI was boosted by Eurozone manufacturing output rising marginally, up for first time since last July.

• The seasonally adjusted Markit /JMMA Purchasing Managers’ Index (PMI) is at 50.7 in January, up from50.2 in December, signalling a second successive month-on-month improvement in manufacturing sectoroperating conditions.

• Japan's jobless rate rose to 4.6% in December from 4.5% in November as the strong yen continues tosqueeze manufactures.

• Consumer prices declined an annual 0.1% in December on back weak demand and sluggish wages.

Economy Update - Global

6

Economy Outlook - Domestic

• In December, the RBI paused its aggressive tightening cyclethat involved lifting rates 13 times since March 2010, andthen in January CRR rate was cut by 50 basis points as theinflation slowed down and economy showed signs ofgrowth.

• India's economic growth rate slowed down further to 6.9 percent in the second quarter (July-September) of FY12 ascompared to 8.9 per cent achieved in the same quarter ofthe previous financial year. The GDP growth rate for Q1 andQ2 FY11 was revised downwards to 8.1 and 8.4 respectivelyfrom the previous estimates of 9.3 and 8.9%.

• This was attributed largely to the negative growth in ‘miningand quarrying’ and steep fall in the growth of manufacturingsector, as compared to their levels of growth in Q2 of 2010-11.

• The burgeoning fiscal deficit situation, high inflation ratescenario and slowdown in corporate earnings growth havestalled India's growth story to some extent in 2011.

GDP growth

• India's industrial output recorded a 5.9% growth inNovember after witnessing a sustained slowdown overthe past few months. The growth was led by healthyexpansion of consumer durables, consume non-durablesand electricity generation. Factory output, as measured bythe Index of Industrial Production (IIP), had grown by6.4% in November last year.

• IIP growth was supported by 6.6% growth in themanufacturing sector which constitutes 76% of IIP.Manufacturing activity surged to a six-month high inDecember thanks to a spike in factory output and neworders from domestic and international firm.

• During April-November, industrial production expanded3.8%. Output grew by 7.8% in the 2010/11 fiscal year thatended in March, slower than 10.5% clocked in the yearbefore.

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Nov 10

Dec 10

Jan 11

Feb 11

Mar 11

Apr 11

May 11

Jun 11

Jul 11

Aug 11

Sep 11

Oct 11

Nov 11

IIP

4.0

5.0

6.0

7.0

8.0

9.0

10.0

FY10(Q2) FY10(Q3) FY10(Q4) FY11(Q1) FY11(Q2) FY11(Q3) FY11(Q4) FY12(Q1)

Economic Outlook - Domestic

• As on December 30, bank credit grew 16% and deposits17.2% annually. This is the lowest rate of growth since March2010. Credit growth has been below the central bank’sprojection of 18 per cent since the last two months.

• At its third quarterly monetary policy review on January 24,the central bank had injected Rs 32,000 crore into the systemby lowering the CRR by half-a-percentage point to 5.5 percent but kept the short-term lending, or repo rate unchangedat 8.5%.

• On account of the slowing growth in the economy and thedecrease in inflation, a pause is seen in the interest rate hikes.In addition to this CRR was cut by 50 Bps. It now stands at5.50%

• The Wholesale Price Index (WPI) based inflation,which has remained in double digits for almost twoyears, declined to 7.47% in December 2011 from 9.11%in the previous month, raising popular hope thatinterest rates could start coming down in a few weeks.A year ago, In December 2010, it was 9.45%.

• Prices of food items rose at a lower rate of 0.74% inDecember, compared to 8.54% expansion inNovember. Food articles have a 14.3% share in the WPIbasket and experts attributed the moderation ininflation to cheaper food articles. Inflation in overallprimary articles stood at 3.07% in December,compared to 8.53% in November. Non-food primaryarticles, which include fibres and oil seeds also showedmoderation by registering an inflation of 1.48% inDecember, compared to 3.22% rise in the previousmonth

Growth in credit & deposits of SCBs

7* End of period figures

7.0%

7.5%

8.0%

8.5%

9.0%

9.5%

10.0%

Wholesale Price Index

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Dec/10 Jan/11 Feb/11 Mar/11 Apr/11 May/11 Jun/11 Jul/11 Aug/11 Sep/11 Oct/11 Nov/11 Dec/11

Bank Credit Aggregate Deposits

8

Equity Outlook

The beginning of CY12 has brought positive macroeconomic news as reflected by the buoyancy in PMI numbers formanufacturing and services as well as industrial production data and cool off in inflation number. The extremely negativesentiment about India seen in last quarter seems to be reversing with FIIs coming back to the market. FII’s put in Rs.10,000crs in equity markets in the month of January resulting in a market up move of 12%. The rally was lead by beaten downsectors like banking, metals and capital goods.

12.4%

16.2%

24.5%

16.2%

19.1%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

Nifty

CNX Metal

Bank Nifty

CNX Midcap

CNX Infra

January Performances of Key Sectoral Indices

European debt markets have calmed due to massive liquidity injection done by European central bank. Bond yields of PIIGS countries have been coming down. If Greece is able to arrive at a deal with private bond holders about the haircut in Greek bond holdings, we would expect the situation in Europe to stabilize.

9

Equity Outlook

RBI has started the reversal of the tight monetary policy with a 50 bps cut in cash reserve ratio (CRR). The tone of the policystatement by the Governor continues to be dovish while he expressed concerns about inflation remaining sticky. The CRRcut would address structural pressure on liquidity and would add Rs.32,000 crs to the banking system. RBI governorexpressed his inability to cut repo rates just yet due to a very expansionary fiscal policy which has resulted in inflationarypressures staying elevated. RBI has maintained an end March inflation target of 7%. We believe that if January and Februaryinflation number come around 7%, RBI might start repo rate cuts in the March policy. We expect a cumulative repo rate cutof 100-150bps for this calendar year.

Downward Trend in Inflation (WPI)

9.5 9.59.7 9.7 9.6 9.5 9.4

9.8 10.0 9.9

9.1

7.5

6

7

8

9

10

Jan/11 Feb/11 Mar/11 Apr/11 May/11 Jun/11 Jul/11 Aug/11 Sep/11 Oct/11 Nov/11 Dec/11

Q3FY12 earnings have been more or less on expected lines. Private sector banks have again come up with impressivegrowth considering the extremely tough macro environment. FMCG companies have also surprised on the positive withgood sales volume numbers. The biggest beneficiaries of the reversal in policy would be interest rate sensitive sectors likebanks, autos and capital goods. We are becoming more constructive on these sectors now. Several PSU banks which werebadly beaten down look extremely attractive from a valuation perspective. Also, a large number of midcap ideas appearextremely attractive on valuation basis. From here on, a portfolio of fundamentally sound midcap companies would delivera superior return as compared to the broader markets.

10

Sector View

Sector Stance Remarks

BFSI Overweight

Financial sector is undeniably the lubricant for economic growth. Whether the growth comes

from consumption or investments, credit growth is inevitable. Being a well regulated sector, BFSI

in India has good asset quality and capital adequacy ratios. The reversal of the interest rate cycle

will assist in managing asset quality better and would lead to increase in credit growth

FMCG Overweight

We prefer “discretionary consumption” beneficiaries such as Cigarettes and branded garments,

as the growth in this segment will be disproportionately higher vis-à-vis the increase in

disposable incomes.

Healthcare Neutral

We believe in the large sized opportunity presented by Pharma sector in India. India’s strength in

generics is difficult to replicate due to quality and quantity of available skilled manpower. With

the developed world keen to cut healthcare costs, and a vast pipeline of drugs going off-patent,

Indian Pharma players are at the cusp of rapid growth. We would bet on the opportunity in

Generics and CRAMS space

E&C Neutral

The USD 1 trillion Infra opportunity is hard to ignore. However, The significant slowdown in

order inflow activity combined with high interest rates has hurt the sector. Now since the

interest rate cycle has started to reverse, we have turned more constructive on this space

Telecom Neutral

The regulatory hurdles, competitive pressures and leverage prevent any return to high

profitability levels in the short to medium term. However, incumbents have started to increase

tariffs slowly and we believe that consolidation will happen sooner than expected.

Sector View

11

Sector Stance Remarks

IT/ITES Neutral

While US and European customers of Indian IT companies are in good health, Order inflows

might slow down in near term. However, in the next few quarters big rupee depreciation

will provide cushion to IT companies earnings .

Automobiles Neutral

Demand outlook remains robust with strong earnings growth. Raw material prices have

started coming down which would boost margins. We are more bullish on two-wheeler and

agricultural vehicles segment due to lesser competition and higher pricing power.

Metals Neutral

Commodity prices have corrected significantly over the last few months due to concerns

about growth in developed parts of the world. We believe the commodity prices will

bounce back once growth recovers and hence would be positive on industrial metals space.

Power Utilities NeutralWe like the regulated return characteristics of this space. This space provides steady growth

in earnings and decent return on capital.

Cement UnderweightCement demand will certainly grow over the next three years. But the issue is on the supply

side. We do see an oversupply situation for the next 3-4 quarters.

Energy UnderweightWe would stay away from oil PSUs, due to issues of cross subsidization distorting the

underlying economics of oil exploration and refinery businesses.

12

Debt Outlook

• The 10 year benchmark G–Sec yield decreased by 19 bps in December to close at 8.54%.

• The inflation figures have come down with a reverse trend to be seen in the tight monetary policy.

• The AAA rated corporate bonds are giving an yield of around 9.3%.

10-yr G-sec yieldYield curve

(%)

7.98.08.18.28.38.48.58.68.78.88.99.0

0.0

0.9

1.9

2.8

3.7

4.6

5.5

6.5

7.4

8.3

9.2

10.1

11.1

12.0

12.9

13.8

14.7

15.7

16.6

17.5

18.4

19.4

6.80

7.30

7.80

8.30

8.80

9.30

Debt Strategy

OutlookCategory Details

Long Tenure Debt

With the expected trend reversal in the interest rates, we wouldstrongly recommend investment in Longer term papers. These, whilebeing available at attractive yields, also provide an opportunity forCapital appreciation due to a decrease in interest rates. Hence, thesewould be suitable for both - investors who may want to stay investedfor the medium term (exiting when prices appreciate) and those whowould want to lock in high yields for the longer term.

Some AA and select A rated securities are very attractive at thecurrent yields. A similar trend can be seen in the Fixed Depositsalso. Tight liquidity in the system has also contributed to wideningof the spreads making entry at current levels attractive.

13

With the pause by RBI and the expected trend reversal of theinterest rates, we would not recommend investment in Shorterterm debt funds unless money necessarily needs to be parked forthe shorter term by the investor. The ST funds still have high YTMs(9.5% – 10%) providing interesting investment opportunities toclients for the shorter term.

Short Tenure Debt

Credit

14

Forex

• In January, the rupee has appreciated 7%, after being theworst performing Asian currency in 2011. The gain can beattributed to the recent diversion of foreign funds towardsIndian debt and equity investments.

• Besides active Forex intervention, RBI also took a number ofsteps like relaxing external borrowings norms, cuts ininterbank net open positions and higher interest rates ondeposits for non-resident Indians to stimulate capital inflowsand curb speculation.

• However, renewed concerns from the debt-ridden euro zonemay lead to another round of depreciation in the currentquarter, though there may not be any sharp downwardmovement.

Rupee movement vis-à-vis other currencies (M-o-M) Trade balance and export-import data

• India’s exports grew 6.71% to $25.01 billion in December,2011, compared to $23.44 billion in the same year-agomonth, while imports were up 19.81% at $37.75 billiontranslating into a trade deficit of $12.73 billion. InNovember, 2010, imports aggregated $31.51 billion.

• Capital account balance was positive throughout FY11 andstood at `273133 Cr. at the end of the year. For FY 12, thecapital account is at `93,621Cr. for Q1.

• We expect factors as higher interest rates to attract moreinvestments to India. Increased limits for investment byFIIs would also help in bringing in more funds thoughuncertainty in the global markets could prove to be adampener.

-10000

40000

90000

140000

FY 10 (Q2) FY 10 (Q3) FY 10 (Q4) FY 11 (Q1) FY 11 (Q2) FY 11 (Q3) FY 11 (Q4) FY 12 (Q1)

Capital Account Balance

7.21%

5.03% 5.17% 5.37%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

USD GBP EURO YEN

-25000

-20000

-15000

-10000

-5000

0

-20

0

20

40

60

80

100Export Import Trade Balance (mn $)

15

Commodities

Precious

Metals

Oil & Gas

With uncertainties looming on the Greece front and tension on theIran disruption suicides, oil has started to show signs up cooling. Oiltrajectory should now be largely determined by the uptick in US andEurope economies. As the Fed indicated that US is on a slowergrowth pace, it is logically to see crude oil softening. Expect oil totrade in a range.

Crude

Gold

After gaining for the 11th consecutive years, gold continued its uptrendin 2012. Rupee denominated gold gained 3.7% YTD. The sheen on thedomestic rupee gold was taken away by the rupee appreciation despitegold in dollar denomination generating an YTD return of 12%.As the Fed holds the interest rates at the current levels until end of2014, smart money will move into assets that would generate incomeand outperform dollar deposit. This was clearly vindicated by the sharpup move in gold on the back of short covering and fresh long positions.The current gold holdings of 2,384.8 tons in bullion-backed exchange-traded products are within 0.4 percent of December’s all-time high,indicating added bullishness to this counter.Technically, gold broke its consolidating triangle and poised to set afresh all time high this year. With Greece and its creditors arestruggling to reach an agreement on a debt swap and market buzzingthat creditors might take a bigger hit than earlier planned, gold shouldin all probability shine this quarter.

15000

17000

19000

21000

23000

25000

27000

29000

31000

75.0

85.0

95.0

105.0

115.0

125.0

135.0

Real Estate Outlook - I

16

Asset Classes Outlook

Residential

In the residential space, low sales volumes have led to a sharp decline in the absorption rate from 21.4% in Q1

2011 to 11.5% in Q3 2011. However, strong pre-launch sales have kept the developers far from any correction.

Though sales have gone down to almost 35% as compared to last year, no correction has been witnessed in the

prices. The over-supplied locations remain stagnant and are expected to remain so for the next two quarters. In

cities like Pune, NCR, Hyderabad, Chennai and Bangalore entry points in the range of Rs. 3000 – Rs. 4600 per

Sqft are still valued by first time home -buyers. Infrastructure development and the new airports in these cities

have supported the residential development. On an average, prices in this segment still remain affordable.

Mumbai stands tall with prices at the peak in an over-supplied market also. Corrections are being reported by

media, however not being witnessed on ground level. The retail investors (second home buyers) and HNI

investors are postponing their decision due to expectations of price correction.

Commercial/IT

Average q-o-q rental growth in 3Q11 was recorded at 2.5%. Mumbai SBD BKC was among the most expensivemarkets and Bangalore and Chennai among the least expensive in Asia Pacific, on the basis of Net EffectiveRents. Among the fastest growing office market in the world, India is constructing 100 million Sqft every 7-10quarters. Office stock is expected to become 500 million Sqft by 2015. The Net Absorption is expected to growfrom 30.5 million Sqft in 2010 to 39.1 million Sqft in 2013. Absorption rate has been recorded at 13.3% in3Q11. 8.5 million Sqft of office space was absorbed in 3Q11 compared to 10.5 million sq ft in 2Q11.

Still in the shadows of over-supply and cautious expansion approach by corporates, this segment has gonethrough a correction. Rates per Sqft have seen almost 30% down-trend and is expected to be stagnant for thecoming 2-3 quarters. After this correction we believe the segment is bottoming out and is the best time to buyfor companies looking at long term holding of real estate office space. With signs of recovery in the globaleconomy, the Indian office markets are expected to be nearing the end of the downturn. Despite improvingdemand conditions, vacancies are rising in the short term due to massive infusion of office space. Markets ofBangalore, Mumbai and NCR-Delhi are leading the property cycle as rentals have started to increase in thesemarkets.

Real Estate Outlook - II

17

The IC note is proposed to be presented every quarter

Asset Classes Outlook

Retail

The FDI allowance has given lot of impetus to this sector. Since 2009 retail has seen a major transformation in

all its business aspects and has been built to suit Indian way of consumerism. Low cost, wide reach, more

variety, less innovation, close existence with competition, maximizing bottom line than top-line approach have

been making the retailers smarter. In the retail space, unorganized markets are still a preferred choice. Most

high-street locations are still expensive. Investors prefer Hi-street locations than malls since they would always

have capital appreciation due to dearth of available space.

Of 9.9 mn sq ft forecasted for absorption in 2011, 7.1 mn sq ft has already been absorbed till 3Q11 and another

1.3 mn sq ft is pre-committed. The northern regions of India rate high on propensity to consume followed by

the western, eastern and southern regions. Industrial towns are similar to each other in consumer preferences

and socio-economic & demographic profiles. Most of them remain equally under-served despite recent mall

developments in the last couple of years.

Land

The trend of investment in land is still nascent since lack of transparency and unclear national land acquisitionpolicy/rules makes it tough for the organized players/investors to transact. However this seems to be a veryinteresting time to buy land which is being traded more as a commodity now. It is getting absorbed fast. Landsees immense opportunity since it can be used as a tangible asset and is the most credible pledge againstbusiness. With the growing commitment of the Government in improving infrastructure (roads, bridges,airports, rail metros), in the last 5 years many far flung areas now have very good connectivity to the CBDlocations.

Why Karvy Private Wealth?

We are an open-architecture firm at two levels – asset class level and product level :• Offering COMPREHENSIVE choice of investing across all asset classes• Offering EXTENSIVE choice of multiple products from different product providers under each asset class

Open Architecture – Widest array of products

Intensive Research

We closely track the historical performance across asset classes, sub-asset classes and product providers to identify, evaluate andrecommend investment products (KPW’s or third-party). We have our own proprietary methodology for evaluating products; forproduct providers, we also note the investment style and risk management philosophy. Our comprehensive analysis determinestruly exceptional performers to be added to your portfolio

When you become a Client of KPW, besides getting intelligent & practicable Investment Advice, you get the benefit of “The KPW 3-S Service Promise” :

• Smooth and Hassle Free – Attention, Service & Convenience• Sharp and proactive – Portfolio monitoring and tracking• Smart –Incisive insights on markets and Investment products

The KPW 3-S Service promise:

Group-wide, we have no Mutual Fund or Insurance products of our own unlike most of the financial services groups (banks orbroking houses), who are doing wealth management. Neither do we have exclusive tie-up with any single insurance company likeall banks do.

Honest, unbiased advise

18

A talented team of leaders with global and Indian experience, having a unique blend of backgrounds of wealth management,private equity, strategy consulting and building businesses powers Karvy Private Wealth and its operations.

Pedigreed Senior Management Team

19

Disclaimer

The information and views presented here are prepared by Karvy Private Wealth or other Karvy Group companies. The information containedherein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completenessthereof. 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 decisionsbased on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While actingupon any information or analysis mentioned here, investors may please note that neither Karvy nor any person connected with any associatedcompanies 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 fromtime 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 ofshares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. Allemployees 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 consulttheir respective tax advisers to understand the specific tax incidence applicable to them. We also expect significant changes in the tax laws oncethe 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 regulat ions.

Mumbai office Address: 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)

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No.: INP000001512”

20

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