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OVERVIEW

International financial scenario has not been changed yet, but capital market has

started stabilising.

Indian scenario as mentioned earlier is improving. This is evident from the latest IIPdata.

In view of the above, sectors such as automobile, cement, steel, construction, heavyearth moving equipments, tractor, power, power distribution and ancillaries, bankingare looking attractive for medium to long term investment. Investors having riskappetite, may slowly invest into textile and its finished products sector for longerterm.

Importance of infrastructure on Indian economy

In face of the global financial crisis and the economic downturn, infrastructure sectorplays an important role to counter balance against slowing economic activity andlower consumption. In India the infrastructure sector currently accounts for 26.7%of Indias industrial output and thus remains a useful tool to balance the economy.Moreover infrastructure is the lifeline of any business activity, proper infrastructureincreases business activity manifold. In India, out of the proposed 31,755 km by theNational Highways Development Programme, completion achieved is just 28 percentor 9,165 km, even if this project is to be completed by 2012, there will be hugeopportunity for companies engaged in highway building sector.

According to Assocham-Ernst & Young - Infrastructure, including roads, power,highways, airports, ports and railways, have emerged as an asset class with long-term growth that can provide relatively stable returns to investors.

In terms of investment attractiveness in the future, the joint study has ranked poweras the most sought after segment among respondents for investment in the future(83%), followed by roads and highways (72%), ports and logistics (66%), rail(45%), airports (43%) and shipping (35%). An interesting segment identified asoffering a strong growth potential was urban infrastructure, especially areas such aswater management, waste-water management, sewerage system and solid wastemanagement. The survey conclude that if government can overcome regulatory

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procedures, delays in project implementation and several unplanned cost escalationcreate then Infrastructure industry as a whole has a great potential in India.

Hazy outlook for the shipping sector for next 12-18 months

Shipping Corporation of India (SCI), Great Eastern Shipping and other lines willremain in troubled waters for at least another year as global trade slumps with

consumers in developed markets cutting down onspending due to job losses and a surge in number ofships sailing in global waters, industry officials say.The shipping industry has been hurt by the collapse ofglobal trade because of credit crisis with freight rateslast year plunging as much as 94% in a matter of 8months, leaving companies in deep losses and forcingsome to cancel orders for new ships. Indias exportshave fallen for 12 straight months and any recovery inhigher prices for transportation is far away as

shipyards are expected to deliver nearly 37% percent of the current capacity in themonths ahead pressuring freight rates.

The Baltic Dry Index (BDI), which was at a peak of 11,793 in May 2008, fell to aslow as 663 by December, but has since recovered to 3,103, still down 74% from thepeak and showing little signs of getting back to good old with companies trimminginvestments and individuals reducing spending. BDI tracks world-wide internationalshipping prices of various dry bulk cargoes.

Car sales grown 33.88%, Bajaj auto in ultra small car

Domestic passenger car sales have recorded 33.88 per cent increase at 1,32,615units in October from 99,052 units in the same month last year. According to thefigures released by the Society of Indian Automobile Manufacturers (SIAM),motorcycle sales in the country during the month was also up 14.22 per cent to6,11,828 units from 5,35,642 units in the corresponding month last year.

Following trend of Nano, Bajaj Auto is on its way of entering ultra small car Segment.They have resolved their differences with Nissan-Renault and are set to announcethe details of the proposed joint venture for making the ultra low-cost car.

Company News

Infosys BPO Ltd, the business process outsourcing arm of Infosys Technologies,announced that the company has signed a definite agreement to acquire all of the

outstanding interests of US-based business process solutions provider McCamish

Systems LLC.Opto Circuits India Ltd was ranked among Forbes Asias 200 Best Under a Billioncompanies for the second consecutive year. Opto Circuits is among the leadingIndian companies that develop, manufacture and market medical devices for globalmarkets.

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Venus Remedies Ltd has bagged its third product patent in South Africa fromCIPRO (Companies and Intellectual Property Registration Office) for Potentox afterSulbactomax and Tobracef. Potentox is a unique super speciality product with acombination of a Cephalosporin with Aminoglycoside recommended for the treatmentof hospital acquired pneumonia and community acquired pneumonia and FebrileNeutropenia. According to the company, this is the fifth product patent achieved by

Venus Remedies in the current year.

Economy

Industrial production grew 9.1 per cent in September, higher than the 6.03 per centgrowth recorded in the same month last year, the latest official data show.

FDI inflows slowdown to $1.5 bn in September09. In first half though, total FDIinflows at $17.7 bn is still higher than last years levels($17.2 bn). Also, FDI inflowsin H109-10, ended up being higher than FII inflows of $15 bn during period.

ECONOMIC INDICATOR

Rupee/Us dollar 46.56Nymex oil ($) 76.83