June 08, 2015

Weekly Mutual Fund and Debt Report

RETAIL RESEARCH
Equity Markets
Key benchmark indices witnessed a sharp slide in the week ended on worries of weak monsoon rains. The
barometer index, the S&P BSE Sensex, fell below the psychological 27,000 level. The Sensex fell in four
out of five trading sessions in the week. The S&P BSE Sensex declined 1,059.95 points or 3.8% to settle at
26,768.49. The 50-unit CNX Nifty shed 318.95 points or 3.78% to settle at 8,114.70.
Broader market depicted weakness. The BSE Mid-Cap index shed 362.16 points or 3.37% to settle at
10,353.93. The decline in the index was lower than Sensex's decline in percentage terms. The BSE SmallCap index fell 429.07 points or 3.8% to settle at 10,851.50, matching Sensex's fall in percentage terms.

Outlook for the current weeks

Slew of macro-economic data, investment by foreign portfolio investors (FPIs), the movement of rupee
against the dollar, crude oil price movement and the progress of monsoon will dictate trend on the
bourses in the coming week. The Reserve Bank of India (RBI) is scheduled to announce current account
deficit (CAD) data for Q4 March 2015 on Monday.
India's index of industrial production (IIP) data for April 2015 and CPI data for May 2015 is scheduled to
release on Friday. Among company specific events, Reliance Industries' annual general meeting (AGM) is
scheduled on 12 June 2015. The India Meteorological Department (IMD) on Friday announced that the
southwest monsoon has set in over Kerala on 5 June 2015, four days later than the normal onset date of 1
June. Developments in Greece will also be closely watched.
The increased likelihood of a hike in interest rates in the US may make investors watchful, already on the
edge over delay in Greece's loan repayment, foreign institutional selling and weaker monsoon forecast.
Worries about further weakness in the rupee against the dollar in the wake of the stronger US jobs data
may also affect sentiment in the days ahead. We expect cautiousness to continue in the Indian markets
and the BSE Sensex to trade in the range of 26200 - 26900 during this week.

Global Markets
The Dow Jones Industrial Average DJIA, -0.31% 115.44 points, or 0.6%, to 18,010.68 and ended the week
1.2% lower. The Nasdaq Composite COMP, +0.18% ended the session down 27.95 points, or 0.6%, at
5,032 and posted a 0.4% loss over the week. The tech-heavy index gained 2.6% over the month, however.
The main indexes recorded a second straight month of gains. The benchmark S&P 500 and Dow
industrials gained about 1% in May. The MSCI Asia Pacific Index slid 2.3 percent during the week, closing
Friday at the lowest since April 3. Japans Topix index added 0.3 percent. New Zealands NZX 50 Index was
little changed. South Koreas Kospi index fell 0.2 percent. Markets in Australia are closed for a holiday,
while those in China and Hong Kong have yet to open. The Shanghai Composite Index climbed 1.5 percent
on Friday, capping a 8.9 percent advance last week, the most since December.

Weekly Statistics
Key Indices

5-June

% Chg

Sensex

26768

-3.81

Nifty

8115

-3.78

DJIA

17849

-0.9

Nasdaq

5068

-0.03

FTSE

6805

-2.57

DAX

11197

-1.9

Hang Seng

27260

-0.6

Nikkei

20461

-0.5

Bovespa

52973

0.4

Indonesia Jakarta

5101

-2.22

Singapore Strait

3334

-1.72

MSCI Emerging Mkt

982

-2.2

MSCI World

1760

-1.06

Mutual Fund Categories watch

Category Name

1 Week
Absolute

1 Month
Absolute

3 Month
Absolute

6 Month
Absolute

1 Year
CAGR

3 Year
CAGR

Arbitrage Funds

0.05

0.63

1.62

4.01

8.36

8.69

Balanced - Equity

-2.66

-1.52

-5.09

0.03

17.71

20.93

Equity - Banking

-4.98

-3.39

-10.42

-4.60

13.31

22.44

Equity - Contra

-3.10

-1.83

-8.21

-1.66

20.30

23.66

Equity - Div Yield

-3.29

-1.92

-6.11

-1.62

18.99

21.99

Equity - Infra

-2.88

-2.43

-7.40

-1.64

10.96

20.12

Equity - LARGE

-3.47

-2.07

-7.59

-1.57

17.11

22.08

Equity - MID

-3.09

-1.59

-5.44

2.03

31.49

33.00

Equity - MULTI

-3.44

-1.93

-6.71

-0.59

20.37

24.64

Equity - FMCG

-2.83

-2.29

-5.97

-4.03

22.07

21.46

Equity - Infotech

-1.95

1.94

-9.76

-1.74

27.82

25.47

Equity - Pharma

-5.19

-2.78

-2.80

7.45

57.77

35.18

ELSS

-3.36

-2.04

-7.16

-0.78

20.32

24.98

Gold ETFs

-0.98

-0.37

0.38

0.48

0.16

-3.57

Gilt Funds

-0.92

-0.61

-0.43

3.06

10.75

8.84

Income Funds

-0.54

-0.05

0.39

3.13

9.46

8.74

Liquid Funds

0.15

0.66

2.05

4.05

8.32

8.57

MIP

-0.92

-0.35

-0.76

2.45

10.73

10.64

Short Term Income

-0.04

0.55

1.68

3.92

9.05

9.02

Note: Trailing Returns up to 1 year are absolute and over 1 year are CAGR. NAV/index values are as on June 05, 2015.

RETAIL RESEARCH

G sec Markets

10 Year G sec Benchmark move:

Indian bond yields ended up during the week ended June 05, 2015. The G sec market opened Monday on
firm note tracking the fall in US Treasury yields. However, cautious activity was witnessed among the
participants ahead of RBIs monetary policy review that was scheduled on June 02.
The G sec market witnessed a sharp rise in the yields of bonds on Tuesday as the RBI has adopted a
hawkish stance on the macro-economic indicators on the review meeting. The central bank has cut
25bps in the repo rate (a third time this year) to 7.25%. Consequently, the reverse repo rate under the
LAF stands adjusted to 6.25%, and the marginal standing facility (MSF) rate and the Bank Rate to 8.25%.
The central bank has showed concerns on the upside risks to inflation due to uncertainty on the monsoon
front. The market witnessed a selloff as participants sought to trim their positions as they think further
easing of rates appears limited. The new benchmark security closed 8bps higher than its previous close.
G sec prices ended lower on Wednesday due to the continued bearish stance. An uncertainty over the
future interest rate trajectory led to lackluster activity in the bond market. Government bond prices
ended lower on Thursday as well due to bearish activity that continued for the third consecutive sessions
among the market participants.
Liquidity:

G sec prices ended higher marginally on Friday seeing the fall in the global crude oil prices. Cutoffs in the
weekly bond auctions were also along expected line.
Hence, the yields of the old 10-year benchmark 8.40% 2024 bond ended down by 16 bps at 7.98% (Rs
102.65) on Friday against the last week close of 7.82%. The yields of the new 10-Year benchmark 7.72%
GS 2025 closed at 7.79% (Rs. 99.54) on Friday against the last week close of 7.64%.

Outlook for the week

We feel that the new 10-year G Sec yields could trade in the 7.70% - 7.90% band for the week.

Liquidity, Call & CBLO

The liquidity in the banking system improved during last week compared to the previous week. The net
infusion from the LAF window was a daily average of Rs. 4,343 crore for last week (Rs. 19,195 crore in
previous week). The inter-bank call rates traded around 7.27% levels on Friday. The CBLO rates were
positioned at 7.18% level.

T Bills
The 91-Days T-Bill auction worth Rs 9,000 crore was fully subscribed. The cut-off yield was set at 7.69%.
The 182-Days T-Bill auction worth Rs 6,000 crore was also fully subscribed. The cut-off yield was set at
7.75%.

RETAIL RESEARCH

Debt Securities Benchmarks watch

Debt (%)

05-June

29-May

Change (bps)

Call Rate

7.27

7.56

-29

CBLO

7.18

7.54

-36

Repo

7.25

7.5

-25

Reverse Repo

6.25

6.5

-25

10 Year G sec

7.79

7.64

15

LIBOR UK

0.57

0.57

LIBOR USA

0.28

0.28

LIBOR Europe

-0.02

-0.02

Corporate Debts
The 1 year bond ended at 8.25% compared to the previous week close of 8.35%. The 10-year AAA bond
traded at 8.51% compared to the previous week close 8.42%.

AAA Corporate Bond Spread over Gsec:

AAA Corporate Bond Spread over Gsec
Security

05-June

29-May

The USD depreciated against the Euro by 1.52% for week ended 05th June, 2015.

1 Year
3 Year
5 Year
10 Year

59
48
37
47

55
55
57
53

The dollar appreciated against the yen by 1.35% for the week ended 05th June, 2015.

Forthcoming Auctions;
Date of Auction

Value (Rs. Crs)

27-May
27-May

8,000
6,000

Currency

Security

The USD appreciated against the pound by 0.29% for the week ended 05th June, 2015.

Gold & Crude oil

International crude oil prices (WTI) declined by 1.94% for the week ended 05th June, 2015 to close at USD
59.1 per barrel.
International gold prices fell 1.79% for the week ended 05th June, 2015 to close at USD 1168.1 per troy
ounce.

10 Yr G sec Benchmark Yields Movements in last one month.

91 D T Bill
364 D T Bill

Certificates of Deposits:
Maturity

05-June

29-May

3 Months
6 Months
1 Year

7.85
8.00
8.25

7.97
8.1
8.25

Commercial Papers:
Maturity

05-June

29-May

3 Months
6 Months
1 Year

8.10
8.35
8.65

8.25
8.7
8.9

Commodity Update:

RETAIL RESEARCH

Commodity

05-June

29-May

Change (%)

NYMEX Crude Oil ($/bbl)

Gold (oz/$)

59.1
1,168.1

60.30
1,189.4

-1.94%
-1.79%

Scheme Analysis

RETAIL RESEARCH

Franklin India Prima Plus Fund - G

Key Points

Unit Growth of investments Vs. Benchmark

Franklin India Prima Plus is one of the consistently performing schemes from Diversified Equity Largecap category. The scheme has managed to deliver better returns over periods thanks to the fund
managers efficiency. The scheme has registered +33%, +29% and +17% of compounded returns
respectively for one, three and five year periods while the benchmark posted +11%, +20% and +10% of
returns respectively. For the same period, the category registered the growth of +17%, +22% and +12% of
CAGR returns respectively.
Considering its portfolio, Franklin India Prima Plus follows large-cap orientation. However, notable
portion into mid and small cap stocks has helped the scheme to generate higher returns during market
rally over the peer schemes in the large-cap category. The recent period shows the portfolio of the
scheme is tilting towards more in large-cap side. The performance of the scheme during market
corrections has also been good.
The portfolio has been churned moderately in last six months period in as much as it added 11 new stocks
and exited from 3. The turnover ratio of the scheme was at 24%.
HDFC Bank, ICICI Bank and INFY are the stocks topped in its latest portfolio having weights of 6.27%,
4.91% and 4.39% to its net assets respectively.
The expense ratio of 2.29% for the scheme is lower compared to the category average of 2.63%. Rating
agencies like Value research & Crisil assigned 5 star and CPR 1 respectively for the scheme. These
reflect the very good performance of the scheme in generating high-risk adjusted returns.
The scheme is managed by Mr. Anand Radhakrishnan and Mr. Janakiraman. The corpus of the scheme as
per latest data was at Rs. 3,568 crore.
As far as risk measures are concerned, the scheme has done reasonably well in terms of Sharpe and
Jensons Alpha. It registered Sharpe of 0.11% (category 0.03%) and Alpha of 0.08% (category 0.03%).
The scheme seems to be less risky in the category as it generated 0.82% (category 0.94%) of Standard
Deviation over the last three-year period.

RETAIL RESEARCH

Fund Performance Vis-a-vis Benchmark (Excess return):

(Rebased to 100)

Mutual Fund ready reckoner:

Equity - Diversified - Large CAP
NAV
(Rs)

Fund Size
(Crs. Rs)

1 Year
Return

3 Year
Return

5 Year
Return

Return Since
Inception

Top holdings

Crisil
Rank

Value Research
Rating

Risk
Grade

Birla Sun Life Frontline Equity - Plan A (G)

INF209K01BR9

163.17

8733

25.77

28.38

16.09

24.52

ICICI Bank, HDFC Bank, ITC

Tata Mot and SBI

CPR 2

4 Star

Average

HDFC Equity Fund - (G)

INF179K01608

465.12

17808

17.83

24.86

14.47

20.71

SBI, ICICI Bank, Infy, L&T

Aurobindo Pharma

CPR 3

2 Star

High

Average

ICICI Pru Focused Bluechip Equity Fund (G)

INF109K01BL4

29.36

8642

23.26

25.12

16.53

16.63

HDFC Bank Ltd, Infosys Ltd, ICICI Bank

Ltd, ITC Ltd and RIL

CPR 2

5 Star

Low

High

NAV
(Rs)

Fund Size
(Crs. Rs)

1 Year
Return

3 Year
Return

5 Year
Return

Return Since
Inception

Top holdings

Crisil
Rank

Value Research
Rating

Return
Grade

Franklin India High Growth Companies (G)

INF090I01981

29.60

2445

52.50

37.82

21.25

14.87

Axis Bank, HDFC Bank, Maruti Suzuki

,Tech Mahindra & ICICI Bank

CPR 1

5 Star

Risk
Grade
Below
Average

ICICI Pru Dynamic Plan (G)

INF109K01761

190.28

5726

20.64

24.42

15.30

26.42

Power Grid Corp, INFY, HDFC Bank,

Wipro and RIL

CPR 2

4 Star

Below
Average

High

Reliance Equity Opportunities Fund (G)

INF204K01489

74.53

11077

34.28

28.49

19.43

21.87

HDFC Bank, Divi's Lab, SBI, Trent,

Cummins India

CPR 2

3 Star

Average

Average

NAV
(Rs)

Fund Size
(Crs. Rs)

1 Year
Return

3 Year
Return

5 Year
Return

Return Since
Inception

Top holdings

Crisil
Rank

Value Research
Rating

Risk
Grade

Return
Grade

Reliance Small Cap Fund (G)

INF204K01HY3

24.00

1533

46.49

40.10

20.56

LG Balakrishnan & Bros, TVS Motor

Co., Atul, Kalpataru & CCL Pro

CPR 3

4 Star

Average

High

ICICI Pru Value Discovery Fund (G)

INF109K01AF8

114.72

9115

38.65

35.01

21.64

25.43

ICICI Bank, RIL, Sadbhav Engg, PI Ind &

Amara Raja Bat

CPR 2

4 Star

Low

Above
Average

Religare Invesco Mid N Small Cap

INF205K01DN2

34.78

413

40.07

36.25

22.96

19.76

DB Corporation, STFC, ING Vysya

Bank, Bharat Forge & Dish TV India

CPR 3

4 Star

Below
Average

High

NAV
(Rs)

Fund Size
(Crs. Rs)

1 Year
Return

3 Year
Return

5 Year
Return

Return Since
Inception

Top holdings

Crisil
Rank

Value Research
Rating

Risk
Grade

Return
Grade

AXIS Long Term Equity Fund (G)

INF846K01131

31.15

4954

47.42

37.40

24.25

23.44

HDFC Bank Ltd, TCS, L&T, HDFC Ltd,

ITC Ltd

CPR 1

5 Star

Low

High

Reliance Tax Saver Fund - (G)

INF204K01GK4

47.18

4416

38.09

32.55

20.56

17.40

TVS Motor Co, SBI, Tata Steel, Wipro

& BHEL

CPR 1

5 Star

High

High

Scheme Name

Return
Grade
Above
Average

Equity - Diversified - Multi CAP

Scheme Name

High

Equity - Diversified - Mid n Small CAP

Scheme Name

Equity - Tax Planning

Scheme Name

RETAIL RESEARCH

Hybrid - Equity Oriented (Atleast 60% in equity)

NAV
(Rs)

Fund Size
(Crs. Rs)

1 Year
Return

3 Year
Return

5 Year
Return

Return Since
Inception

Top holdings

Crisil
Rank

Value Research
Rating

HDFC Balanced Fund (G)

INF179K01392

107.53

3685

28.85

24.30

17.83

17.53

SBI, ICICI Bank, Axis Bank, Aurobindo

Pharma & L&T

CPR 1

4 Star

Tata Balanced Fund - Plan A (G)

INF277K01303

170.48

3051

37.49

27.49

18.04

17.38

Eq: Axis Bank, HCL Technologies,

HDFC Bank, Eicher Motors & Infosys

CPR 1

4 Star

Below
Average

High

DSP BR Balanced Fund - (G)

INF740K01318

107.13

643

30.27

19.89

12.45

15.98

Eq: HDFC Bank, ICICI Bank, SRF,

Britannia Inds & LIC Housing Fin.

CPR 3

3 Star

Above
Average

Average

NAV
(Rs)

Fund Size
(Crs. Rs)

1 Year
Return

3 Year
Return

5 Year
Return

Return Since
Inception

Top holdings

Crisil
Rank

Value Research
Rating

Reliance Monthly Income Plan (G)

INF204K01FD1

33.44

2679

17.74

12.91

10.38

11.17

Eq: Sundaram-Clayton, Federal Mogul

Goetze, HDFC Bank. CP: PFC

CPR 2

4 Star

Risk
Grade
Above
Average

Return
Grade
Above
Average

HDFC Monthly Income Plan - LTP (G)

INF179K01AE4

34.59

3833

13.02

12.99

10.11

11.49

Eq: SBI, Infy, ICICI Bank, L&T. Debt:

TATA Power, Hindalco Inds

CPR 2

3 Star

Average

Average

Risk
Grade
Below
Average

Return
Grade
Above
Average

Below
Average

Above
Average

Risk
Grade
Below
Average

Return
Grade
Above
Average
High

Scheme Name

Risk
Grade
Below
Average

Return
Grade
High

Hybrid - Monthly Income Plan - Long Term (About 15% to 20% in equity)
Scheme Name

Liquid Funds
NAV (Rs)

Fund Size
(Crs. Rs)

1 Year
Return

2 Year
Return

3 Year
Return

Return Since
Inception

Top Holdings

Crisil
Rank

Value Research
Rating

27.93

17649

8.88

9.17

9.12

7.28

CP: National Bank Agr. Rur. Devp, CD:

National Bank Agr. Rur, Union Bank.

CPR 3

3 Star

3128.83

2933

8.83

9.18

9.08

7.36

CP: M&M Financial Services, Kotak

Mahindra Prime, PFC, CD: SIDBI 2014

CPR 3

4 Star

NAV
(Rs)

Fund Size
(Crs. Rs)

1 Year
Return

2 Year
Return

3 Year
Return

Return Since
Inception

Top Holdings

Crisil
Rank

Value Research
Rating

ICICI Pru Flexible Income Plan - Regular (G)

INF109K01746

266.26

12053

9.17

9.46

9.44

8.04

CD: NABARD, Canara Bk, T Bill, CP:

HDFC, Debt: TCFSL

CPR 1

4 Star

Birla Sun Life Treasury Optimizer - Ret (G)

INF209K01LT4

263.17

4598

11.29

10.72

10.26

7.67

Bonds: PFC, LIC Housing Fin, Tata

Capital Fina, Bajaj Finance

CPR 1

5 Star

Below
Average

NAV
(Rs)

Fund Size
(Crs. Rs)

1 Year
Return

2 Year
Return

3 Year
Return

Return Since
Inception

Top Holdings

Crisil
Rank

Value Research
Rating

Risk
Grade

23.08

4284

10.47

9.96

10.64

7.15

Debenture: Indiabulls Hou Fin,

Reliance Uti, TRIL Infopark, SD Corp

CPR 1

4 Star

Average

2902.24

10705

11.01

9.48

10.28

8.33

PTC: 11.85% Adani Enterprises. Debt:

CPR 1

4 Star

Average

Scheme Name
HDFC Liquid Fund (G)
INF179K01KG8
SBI Magnum InstaCash - Cash Plan
INF200K01LJ4

Ultra Short Term Funds

Scheme Name

Short Term Income Funds

Scheme Name
Birla Sun Life Short Term Opportunities (G)
INF209K01942
Franklin India Short Term Income (G)

RETAIL RESEARCH

Return
Grade
Above
Average
Above

INF090I01304

Dewan Housing Fin

Average

Income Funds
NAV
(Rs)

Fund Size
(Crs. Rs)

1 Year
Return

2 Year
Return

3 Year
Return

Return Since
Inception

Top Holdings

Crisil
Rank

Value Research
Rating

Risk
Grade

Birla Sun Life Medium Term Plan (G)

INF209K01603

17.23

3984

11.05

10.22

10.78

9.23

Debenture: DLF, Tata Mot, IL&FS

Transport, RHC Holdings

CPR 3

4 Star

Low

ICICI Pru Long Term Plan - Retail (G)

INF109K01712

31.88

602

15.76

13.81

12.27

9.21

Bonds: EXIM Bk, 8.28% GOI 9-21, 8.4%

GOI 7-28 & Cash

5 Star

Low

High

NAV
(Rs)

Fund Size
(Crs. Rs)

1 Year
Return

2 Year
Return

3 Year
Return

Return Since
Inception

Top Holdings

Crisil
Rank

Value Research
Rating

Return
Grade

SBI Magnum Gilt Fund - Long term (G)

INF200K01982

30.35

1396

18.63

9.52

12.39

8.01

8.32% GOI 2032, 9.23% GOI 2043,

9.2% GOI 2030, 8.17% GOI 2044

CPR 1

5 Star

Risk
Grade
Below
Average

Sundaram Gilt Fund - (G)

INF903J01FA6

23.59

51

10.69

12.75

14.23

6.29

8.83% GOI 2023, 8.28% GOI 2027,

8.6% GOI 2028 & 8.15% GOI 2026

5 Star

Low

High

Scheme Name

Return
Grade
Above
Average

Gilt Funds
Scheme Name

High

Notes:

NAV value as on May 22, 2015. Portfolio data as on Apr 2015.

Returns are trailing and annualized (CAGR).
The notations '5 Star & CPR 1' (used by VR & Crisil respectively) are considered as top in respective rating and ranking scales.
The performance of the funds are rated and classified by Value Research in the following ways. Top 10% funds in each category were classified ***** funds, the next 22.5% got a **** star,
while the middle 35% got a ***, while the next 22.5% and bottom 10% got ** and * respectively.
The criteria used in computing the CRISIL Composite Performance Rank are Superior Return Score, based on NAVs over the Quarter Ended March 2015, Based on percentile of number of
schemes considered in the category, the schemes are ranked as follows: CPR 1- Very Good performance, CPR 2 - Good performance, CPR 3 - Average performance, CPR 4 - Below average and
CPR 5 - Relatively weak performance in the category.
Schemes shortlisted based on the corpus and age. Final picks arrived from return score (respective weightage given for rolling returns for 1m, 3m, 6m, 1yr, 2yr & 3yr) and risk score. Schemes
from Quantum, Mirae and JM Mutual Funds have not been considered.

NFO:
Scheme name

Open Date

Close Date

Minimum Investments

Tenure

Structure

Balanced
ICICI Pru Capital Protection Orient. VIII-D Reg(G)

6/2/2015

6/16/2015

5000

1101 Days

CLOSE

DWS Hybrid FTF - Series 39 (G)

5/28/2015

6/11/2015

5000

1100 Days

CLOSE

AXIS Hybrid Fund - Series 24 (G)

5/28/2015

6/10/2015

5000

1276 Days

CLOSE

Sundaram Hybrid Fund - Series N (G)

5/27/2015

6/10/2015

5000

1300 Days

CLOSE

5/28/2015

6/11/2015

5000

1159 Days

CLOSE

Fixed Maturity Plans

Birla Sun Life FTP - Series MQ (G)

RETAIL RESEARCH

UTI-FTI - Series XXII - V(1099Days)-Reg (G)

HDFC FMP - 1127Days-May 2015(1)(XXXIII) (G)

6/1/2015

6/10/2015

5000

1099 Days

CLOSE

5/29/2015

6/9/2015

5000

1127 Days

CLOSE

Religare Invesco FMP - Sr.XXVI - Plan A (G)

6/4/2015

6/9/2015

5000

1098 Days

CLOSE

SBI Debt Fund Series B - 19 (G)

6/3/2015

6/8/2015

5000

1100 Days

CLOSE

DWS FMP - Series 91 - 1100Days (G)

6/4/2015

6/8/2015

5000

1100 Days

CLOSE

ICICI Pru FMP - Series 77 - 1134Days Plan H-Reg(G)

6/5/2015

6/8/2015

5000

1134 Days

CLOSE

Mutual Fund NEWS:

Dividend
Scheme Name

L&T India Large Cap Fund reduced exit load: L&T Mutual Fund has revised the exit load of L&T India Large
Cap, L&T India Value and L&T Infrastructure to 1 per cent if redeemed within 1 year. Currently, it is 2 per
cent if redeemed within 1 year & 1 per cent if redeemed after 1 year but within 2 years. The effective
date is June 01, 2015.

Tata Balanced Fund - Plan A (Div-M)

Reliance Quant Plus Fund reduces exit load: Reliance Mutual Fund has revised the exit load of Reliance
Quant Plus Fund to 0.25 per cent if redeemed within 1 month. Currently, it is 1 per cent if redeemed
within 1 year. The effective date is June 05, 2015.

RETAIL RESEARCH

Record Date

Gross (%)

Date

6/3/2015

4.60

6/4/2015

SBI FMCG Fund (D)

5/29/2015

100.00

5/29/2015

DWS Income Advantage Fund (D)

5/29/2015

0.70

6/1/2015

Franklin India Balanced Fund - (D)

5/29/2015

25.00

6/1/2015

L&T India Prudence Fund (D)

5/27/2015

1.10

5/28/2015

Sundaram Select Micro Cap - Sr.I (D)

5/26/2015

10.00

5/26/2015

Sundaram Select Micro Cap - Sr.II (D)

5/26/2015

10.00

5/26/2015

Sundaram Select Micro Cap - Sr.IV (D)

5/26/2015

10.00

5/26/2015

Sundaram Select Micro Cap - Sr.III (D)

5/26/2015

10.00

5/26/2015

IDBI Diversified Equity Fund (D)

5/25/2015

10.00

5/26/2015

IDBI India Top 100 Equity Fund (D)

5/25/2015

10.00

5/26/2015

Global Updates:

(Source: AMC Newsletters)

India:

The projection for headline retail inflation for January 2016 has been revised upward to 6% from 5.8%.
Indias core sector output contracted by 0.4% in April after declining by 0.1% in March.
Indias HSBC manufacturing purchasing managers index (PMI) rose to 52.6 points in May from 51.3 in April, while services PMI fell to 49.6 in May from 52.4 in April; composite PMI index fell
to a 7-month low of 51.2 in May from 52.5 in April.
RBI asks government to put in place a contingency plan to deal with the possibility of a below normal monsoon and its impact on food grain production and prices.
Indias foreign exchange reserves rose by $917.5 bn in the week ending May 29 to $352.47 bn.
India Meteorological Department revises its rainfall forecast from 93% to 88% of average.
IRDA says all insurance policies can be held in the digital format
Government says the direct tax collection target of Rs 7.98 lakh cr for the current financial year is likely to be met on account of improvement in economic growth.
Governments total debt increased 0.9% in the fourth quarter on a q-o-q basis, compared with a 2.4% increase in the previous quarter.
Finance Ministry is planning to launch a revamped and retail investor friendly CPSE Exchange Traded Fund (ETF) by October in which cash rich EPFO and NPS could park their money along with
individual investors.

Asia:

Chinas official manufacturing PMI edged up to 50.2 from 50.1 in April.

Chinas PMI for the non-manufacturing sector fell to 53.2 in May, down from 53.4 for April.
Japans leading index rose to 107.2 in April from 106.0 in the previous month; the coincident index increased to 111.1 in April from 109.2 in March.
China to cut import tariffs on consumer goods to boost domestic consumption.

IMF downgrades US growth forecast for 2015 from 3.1% to 2.5% citing significant uncertainties as to the future resilience of economic growth; also slashes its forecast for 2016 to 3% from
3.1%.
US non-farm payrolls rose to a seasonally adjusted 280,000 in May compared to a revised 221,000 in April.
US trade deficit narrows to $ 40.9 bn in April from the March reading of $ 50.6 bn.
US manufacturing PMI for May came in at 54, down fractionally from 54.1 posted in April.
US factory orders slipped 0.4% in April after a slightly upwardly revised 2.2% increase in March.

UK GfK consumer confidence index slipped to 1 in May from 4 in April.

UK retail sales expanded 1.2% month-on-month in April reversing a 0.7% fall in March.

US:

UK:

Euro Zone:

European Central Bank opts to keep its key refinancing interest rate at a record low of 0.05%.
Euro zones final May manufacturing PMI was 52.2, just ahead of April's 52.0, while services PMI fell to 53.8 in May from Aprils 54.1; the composite PMI fell to 53.6 in May from the April
reading of 53.9.

RETAIL RESEARCH

Economic Calendar:
Date

Country

Event

Period

Frequency

8/6/2015

India

9/6/2015

India

9/6/2015
9/6/2015

Unit

Previous

OECD composite leading indicator for India

Apr

Monthly

Automobile sales data (y/y chg)

May

Monthly

pct

1.91

European Monetary Union

GDP (Year over Year)

Q1, 2015

Yearly

Percent

0.9

US

Redbook

wk6/6, 2015

Weekly
0.1

99.3

9/6/2015

US

Wholesale Trade (Inventories - M/M change)

Apr, 2015

Monthly

Percent

10/6/2015

Japan

Machine Orders (M/M Change)

Apr, 2015

Monthly

Percent

2.9

10/6/2015

India

91 day T- Bills auction of Rs 90 bln (cut-off yld)

Weekly

pct

7.69

10/6/2015

India

Reserve Money (change on year)

Wk to Jun 5

Weekly

pct

11.25

10/6/2015

India

M3 (YoY Chg)

Wk to May 29

Fortnightly

pct

11.34

10/6/2015

India

364 day T- Bills auction of Rs 60 bln (cut-off yld)

Fortnightly

pct

7.83

10/6/2015

US

Treasury Budget (Treasury Budget - Level)

May, 2015

Monthly

Billion

156.7

11/6/2015

US

Jobless Claims

wk6/6, 2015

Weekly

11/6/2015

US

Bloomberg Consumer Comfort Index

wk6/7, 2015

Weekly

12/6/2015

US

Fed Balance Sheet

wk6/10, 2015

Weekly

12/6/2015

India

Foreign merchandise trade Imports (YoY Chg)

May

Monthly

pct

-7.48

12/6/2015

India

IIP (YoY Chg)

Apr

Monthly

pct

2.1

12/6/2015

India

GSM mobile subscriber

May

Monthly

Million

12/6/2015

European Monetary Union

Industrial Production (Year over Year)

Apr, 2015

Yearly

Percent

12/6/2015

US

Consumer Sentiment

Jun, 2015

Monthly

12/6/2015

India

WMA (ways and means advance) - to central govt

Wk to Jun 5

Weekly

Rs bln

12/6/2015

India

FX reserve (change on wk)

Wk to Jun 5

Weekly

$ mln

917.5

12/6/2015

India

Bank Deposit (YoY Chg)

Wk to May 29

Fortnightly

pct

11.9

12/6/2015

India

Bank Credit (YoY Chg)

Wk to May 29

Fortnightly

pct

10.2

12/6/2015

India

Bank Investment (YoY Chg)

Wk to May 29

Fortnightly

pct

14.2

12/6/2015

India

Bank Cash Deposit Ratio

Wk to May 29

Fortnightly

4.76

12/6/2015

India

Bank Investment Deposit Ratio

Wk to May 29

Fortnightly

29.94

12/6/2015

India

Bank Credit Deposit Ratio

Wk to May 29

Fortnightly

15-06-2015

India

WPI Inflation (YoY Chg) New Series (Base 2004-05)

May

Monthly

pct

16-06-2015

India

Output of Crude oil

May

Monthly

mln tn

16-06-2015

India

Output of Refinery

May

Monthly

mln tn

16-06-2015

India

Output of Natural gas

May

Monthly

bln cu m

RETAIL RESEARCH

1.8

75.89
-2.65

Economy Updates
US Dollar Vs Indian Rupee

The US dollar ended almost flat against the rupee down by 0.01% for the week ended
22nd May, 2015. The Indian rupee ended almost steady at 63.52, a mere one paisa
lower, against the American unit on alternate bouts of demand and supply of dollars
during the week under review. However, it failed to maintain gains on fag-end dollar
demand from banks and importers on the back of firm dollar in the overseas market.

WPI Inflation (YoY)

Inflation, as measured on the Wholesale Price Index (WPI) came in at -2.65 for the
month of April 2015, has been in the negative zone for the last six months. It was mainly
on account of decline in prices of fuel and manufactured items even though the food
prices increased. The favorable inflation numbers raised hopes of an interest rate cut by
the RBI in its upcoming policy announcement.

RETAIL RESEARCH

Relationship among policy rates and benchmarks:

The Wholesale Price Index (WPI) based inflation came in at -2.65 for the month of April
2015, has been in the negative zone for the last six months. On the other hand, the
Consumer Price Index based inflation data (CPI), showed retail inflation fell to a 4-month
low of 4.87% in April on account of easing food prices. In its policy meet held on June 04,
the RBI cut repo rate by 25bps to 7.25% and expressed its concerns over the upside risks to
inflation due to uncertainty on the monsoon front.
Deposit vs. Advance Growth (YoY)%

The y-o-y growth in scheduled commercial bank (SCB) credit slowed down to 10.2 per cent
in the fortnight ended 15 May 2015 from 10.5 per cent in the preceding fortnight. The
outstanding SCB credit decreased by Rs.478.5 billion to Rs.66.3 trillion. The food and nonfood credit stood at Rs.1.1 trillion and Rs.65.2 trillion respectively, as on 15 May 2015. The
y-o-y growth in total deposits decelerated to 11.9 per cent from 12.3 per cent at the end of
the preceding fortnight. The demand deposit and time deposit stood at Rs.7.9 trillion and
Rs.79.5 trillion, respectively, as on 15 May 2015.

Money Stock (M3) (YoY) (%)

Corporate Bonds Spread Vs Gilt Securities:

Money supply (M3) fell by Rs.434.1 billion to Rs.108 trillion during the fortnight ended
15 May 2015. On a y-o-y basis, growth in money supply decelerated to 11.3 per cent
from 11.7 per cent a fortnight ago. Demand deposits decreased by Rs.472.9 billion to
Rs.8.8 trillion. Currency with the public rose by Rs.306 billion to Rs.14.6 trillion.

Corporate bond yields rose last week. The one year AAA credit spreads rose by 4 basis
points while 10 year spread fell by 6 basis points.

Foreign Exchange Reserves (mn of USD)

Indias foreign exchange reserves rose by $917.5 bn in the week ending May 29 to
$352.47 bn.

RETAIL RESEARCH

Liquidity support from RBI (Bn. Rs)

The liquidity in the banking system improved during last week compared to the previous
week. The net infusion from the LAF window was a daily average of Rs. 4,343 crore for last
week (Rs. 19,195 crore in previous week). The inter-bank call rates traded around 7.27%
levels on Friday. The CBLO rates were positioned at 7.18% level.

MFs net investment in Debt (Rs Crs):

Certificates of Deposit (%):

In Apr, MF have bought debt worth Rs. 22,584 crore while in May, MF bought debts
worth Rs. 15,956 crore. So far in June, MF bought worth Rs. 13,820 crore.

CD rates are trending marginally higher in the recent periods. The CD rates hovered around
8.25% levels (as per the latest data) (one year CD).

FIIs net investment in Debt (Rs Crs):

Commercial Paper (%):

In April, FII bought debt worth Rs. 3,483 crore while in May, FII sold debt worth Rs. 8,815
crore. So far in June, FII sold debt worth Rs. 2,414 crore.

Rates of Commercial papers are seen trading lower in the recent periods. The CP rates are
hovering around 8.65% levels (one year maturity CP).

Analyst: Dhuraivel Gunasekaran (dhuraivel.gunasekaran@hdfcsec.com)

RETAIL RESEARCH Tel: (022) 3075 3400 Fax: (022) 2496 5066 Corporate Office
HDFC securities Limited, I Think Techno Campus, Building - B, "Alpha", Office Floor 8, Near Kanjurmarg Station, Opp. Crompton Greaves, Kanjurmarg (East), Mumbai 400 042 Phone: (022) 3075 3400 Fax: (022) 2496 5066 Website: www.hdfcsec.com Email:
hdfcsecretailresearch@hdfcsec.com
Disclaimer: Mutual Funds and Debt investments are subject to risk. Past performance is no guarantee for future performance This document has been prepared by HDFC Securities Limited and is meant for sole use by the recipient and not for circulation. This document is not to be
reported or copied or made available to others. It should not be considered to be taken as an offer to sell or a solicitation to buy any security. The information contained herein is from sources believed reliable. We do not represent that it is accurate or complete and it should not be relied
upon as such. We may have from time to time positions or options on, and buy and sell securities referred to herein. We may from time to time solicit from, or perform investment banking, or other services for, any company mentioned in this document. This report is intended for nonInstitutional Clients
This report has been prepared by the Retail Research team of HDFC Securities Ltd. The views, opinions, estimates, ratings, target price, entry prices and/or other parameters mentioned in this document may or may not match or may be contrary with those of the other Research teams
(Institutional, PCG) of HDFC Securities Ltd.

RETAIL RESEARCH