HSL PCG Currency Insight-Weekly

19 September, 2016

MARKET WRAP UP

WEEKLY MOVEMENT

RUPEE FALLS ON DEVALUATION REPORTS AND FOREIGN FUND OUTFLOW

Currency

Currency
(Spot)

Last

Prev.
Close

Chg.

96.1080

95.3360

0.7720

0.8%

EURUSD

1.1155

1.1233

-0.0078

-0.7%

GBPUSD

1.3002

1.3267

-0.0265

-2.0%

102.2900 102.6900

-0.4000

-0.4%

DXY Index

USDJPY

%
Chg.

USDINR

66.9850

66.6775

0.3075

0.5%

EURINR

75.1842

75.1870

-0.0028

0.0%

GBPINR

88.1791

88.7996

-0.6205

-0.7%

JPYINR

65.7700

65.1700

0.6000

0.9%

DGCX USDINR

67.2043

67.0691

0.1352

0.2%

RBI Reference Rate

Last

Prev.
Close

USDINR

66.8804

66.5462

0.33

0.50%

EURINR

75.1535

75.0242

0.13

0.17%

GBPINR

88.4694

88.5863

-0.12

-0.13%

JPYINR

65.5200

65.1300

0.39

0.60%

Chg.

%
Chg.

Currency

Chg.

%
Chg.

GOI 10 Yr. Bond Yield

Instrument

Last

759GS2026

6.8680

Prev.
Close
6.97

-0.10

-1.46%

India rupee completed weekly loss against the green back to close just a paise
away from 67. The volatility has climbed in the week gone by as the FCNR
deposit start to mature from now to November. Beside currency devaluation
rumours and foreign fund outflow also hit the rupee sentiment. Overseas
funds sold a net $107.4 million of Indian shares this week through Thursday,
set for the biggest weekly outflow since early April, as emerging-market
investors turned cautious ahead of central bank meetings in the U.S. and
Japan.
USDINR closed up in the week gone by at 66.99 or 0.5%, most since the June
24. The high-range close sets the stage for a steady to higher opening when
Monday's session begins trading. The near term resistance is around 67.30
while support in the range of 66.50 to 66.30.
Indias forex reserves hit a new life time peak of $371.279 billion, up $3.513
billion for the week ended September 9. The reserves are more than sufficient
to cover nearly 13 month of exports. The Foreign currency assets, a major
component of the overall reserves, up by $3.509 billion to $345.747 billion.
The country's special drawing rights with the International Monetary Fund
increased by $5.3 million to $1.493 billion, while the reserve position with the
fund was down by $1.3 million to $2.395 billion, the Reserve Bank said.

Dollar and Yen Strengthen Ahead of Policy Meet

In the week gone by, Dollar and Japanese Yen ended stronger against major
currencies, ahead of BoJ and FOMC meeting. Dollar started the week with
weaker note after fed member Brainards dovish comment. However, the
greenback surged after stronger than expected August consumer inflation
reading. The inflation data suggested a greater probability of a December
move from the U.S. central bank and a quicker pace of rate increases next
year. The Bloomberg September rate hike probability moved slightly higher to
20% from 18% before inflation data. It's still generally expected Fed to stand
pat after September 20-21 meeting. But there is possibility for a hawkish
statement that paves way for a December hike. Also, Fed will release new set
of economic projections that could paint a more optimistic picture. The dollar
index rose 0.81% to 96.10 in the week ended on 16th September.

Ahead BoJ policy decision, the risk aversion drives the yen higher against
major currencies. A comprehensive review of monetary policy is expected in
the next week meeting. But it's believed that BoJ policy makers are split over
the next easing steps. Some might even believe in continuing with the current
government bond purchase program and negative rates and give time for the
policies to pass through to the economy.

PRIVATE CLIENT GROUP [PCG]

Meanwhile, the Japanese financial industries opposing deepening negative interest rates. Opinions are divided on what BoJ would do in the
end and the result could surprise the markets.

Pound Hammered On BoE Signaled Rate Cut This Year

Pound ended the week as the weakest major currency as BoE signaled more rate cut later in the year. BOE voted unanimously to keep the
Bank rate at 0.25% and the asset purchase program at 435B pound. Despite the encouraging macroeconomic data, BOE suggested that
"the Committee's view of the contours of the economic outlook following the EU referendum had not changed". Meanwhile, if November's
forecasts were "broadly consistent" with those in August, "a majority of members expected to support a further cut in Bank Rate to its
effective lower bound at one of the MPC's forthcoming meetings during the course of the year".

Technically, GBP/USD's sharp fall last week affirmed the case of lower top bottom formation. Initial bias stays on the downside for 1.2794
low. On the upside, above 1.3278 minor resistance will possibly extend the consolidation pattern from 1.2794. In that case, upside should
be limited by 38.2% retracement of 1.5016 to 1.2794 at 1.3643 and bring down trend resumption eventually. Looking at the weakness in
GBP the outlook for GBPINR also remains bearish.

Week Ahead
The week ahead will be a busy one for global markets as policy makers from Japan and US will review policy.

On Wednesday, The Bank of Japan will conduct a review of the effectiveness of its stimulus and decide on policy. Uncertainty
is high, but on balance chances are slightly in favour of the central bank refraining from increasing easing. The 2% inflation
target is distant, but stimulus is already extreme and negative side effects are appearing.

The flash September PMI readings for France, Germany and the wider euro area will be in focus from Europe. Thus far,
business surveys have held up fairly well and Britain's vote to leave the EU seems not to have dampened sentiment in the
euro region.

The ECB will publish its economic bulletin on Thursday. The bank will also conduct a new round of its targeted longer-term
refinancing operation. The first auction in May attracted 514 banks for a total 399 billion euros ($449 billion). ECB President
Mario Draghi also speaks at a conference in Frankfurt.

The US Federal Reserve is projected to keep its benchmark interest rate unchanged at the conclusion of a two-day meeting, as
per Bloomberg survey. Policy makers will also issue economic projections followed by a news conference by Chair Janet Yellen.

WEEKLY PRICE - VOLUME - OI (PVO)

CURRENCY PAIR

NSE INRUSD Future Sep16

NSE EURINR Future Sep16
NSE GBPINR Future Sep16
NSE JPYINR Future Sep16

CLOSE

PREV.
WEEK
CLOSE

67.0850
75.2975
88.3400
65.8125

66.8675
75.3800
89.0450
65.1500

WKLY
% CHG.

0.3%
-0.1%
-0.8%
1.0%

OPEN
INTEREST
(OI)

1780463
51312
40249
45534

PREV.
WEEK OI

2471637
56256
40942
31316

PRIVATE CLIENT GROUP [PCG]

WKLY OI
% CHG.

-28.0%
-8.8%
-1.7%
45.4%

VOLUME
(VOL.)

691417
27670
58820
43838

PRV.
WEEK
VOL.

965675
43060
53052
37988

WKLY VOL.
% CHG.

-28.4%
-35.7%
10.9%
15.4%

TECHNICAL OUTLOOK

USDINR SEPT. FUTURE

USDINR Sept. Future CMP 67.11

Currency

Weekly Pivot

Resistance 2

67.45

Resistance 1

67.28

Pivot

67.10

Support 1

66.94

Support 2

66.76

DAILY CHART

Technical Observation:

Lower tops and lower bottoms

are well intact on the daily
charts.
Recently pair seen a recovery
from 66.52 to 67.27. However
overall trend has been bearish
on the medium term charts.
We should not ruled out the
development
of
Death
Crossover on the Daily chart of
USDINR. This means 50 DMA
has reached below 200 DMA.
Death Crossover indicates that
long
term
trend
of
the
underlying may be turning
bearish.
Considering
the
technical
evidences
discussed
above, traders should adopt sell
on rallies approach for the pair.
Unless Pair surpasses 67.50 on
closing basis, traders should
remain bearish.

PRIVATE CLIENT GROUP [PCG]

TECHNICAL OUTLOOK

EURINR SEPT. FUTURE

EURINR Sept. Future CMP 75.32

Currency

Weekly Pivot

Resistance 2

75.84

Resistance 1

75.58

Pivot

75.37

Support 1

75.11

Support 2

74.89

Technical Observations

For last 3 Months pair is

failing to sustain above 76 odd
levels.
The pair has been showing
swings alternately on the both
sides.
In last 8 sessions, pair has
gone up from 74.48 to 75.63.
Looking at the price behavior
of previous 3 Months, there
are good chances that pair
may now move on the
downside.
Resistance would remain at
76.16.
Supports for the pair are seen
at 74.50 and 74.10.
Traders should remain bearish
in the pair unless it closes
above 76.16.

PRIVATE CLIENT GROUP [PCG]

DAILY CHART

TECHNICAL OUTLOOK

GBPINR SEPT. FUTURE

GBPINR Sept. Future CMP 88.42

Currency

Weekly Pivot

Resistance 2

89.48

Resistance 1

88.95

Pivot

88.64

Support 1

88.11

Support 2

87.80

Sell GBPINR Sep Fut

Primary trend of the pair has

been bearish with lower tops
and lower bottoms on weekly
charts.
On Friday, Pair has broken
down below crucial support of
50 DMA placed at 88.34.
Resistance for the pair would
remain at 89.35
Supports for the pair are seen
at 86.66 and 86.38
Oscillators on the short term
charts showing negative bias
for the pair.
Bias for the pair would remain
bearish for the next week.
We advise selling GBPINR
Sep fut. at CMP for the
downside targets of 86.67
and
86.38,
keeping
a
stoploss at 89.35.

PRIVATE CLIENT GROUP [PCG]

DAILY CHART

TECHNICAL OUTLOOK

JPYINR SEPT. FUTURE

JPYINR Sept. Future CMP : 65.87

Currency

Weekly Pivot

Resistance 2

66.55

Resistance 1

66.21

Pivot

65.57

Support 1

65.23

Support 2

64.59

DAILY CHART

Sell JPYINR Sep Fur Below 64.42

Pair has recently recovered

from 64.42 to 65.91.
Though we saw some recovery,
but major swings for the pair
has been bearish with lower
tops and lower bottoms.
There is a strong long term
resistance placed at 69, which
we believe is very difficult to
crack for the pair.
Any level below 64.42 would be
considered fresh breakdown
and Short sell should be
initiated thereafter
Resistance for the pair is seen
at 67.10.
We advise selling JPYINR
Sep Fut only below 64.42 for
the targets of 62.70 and
61.50, keeping stoploss at
65.92

PRIVATE CLIENT GROUP [PCG]

EURUSD

DOLLAR INDEX

EURUSD: Daily Chart

DXY: Daily Chart

GBPUSD

USDJPY
USDJPY: Daily Chart

GBPUSD: Daily Chart

PRIVATE CLIENT GROUP [PCG]

USDINR SEPT. MONTH OPTION DISTRIBUTION

OI in Lakhs

USDINR OPTION OPEN INTEREST DISTRIBUTION

4.50
4.00
3.50
3.00

CALL OI

PUT OI

WKLY CALL OI CHG

68.00

68.50

0.00

0.04

0.00

0.98

0.00

0.34

1.35

0.28

2.60

67.50

0.47

0.35

0.27

2.25

2.96

67.00

-0.01

66.50

69.00

-0.21

-1.00

0.39

0.08

1.81
0.03

1.03
66.00

-0.44

-0.50

-0.01

0.00

0.06

1.00
0.50

2.60

1.50

0.43

2.00

3.55

3.81

2.50

WKLY PUT OI CHG.

Data Interpretation:

From the option front, the 66.50 strike put has witnessed covering as the pair started moving higher. Though the highest
position at 66.50 put would act as near term support.
We have seen major movement in 67 and 67.50 strikes as a part of hedging , ahead of the economic events scheduled in
the next week.
In the coming week, there would be a higher volatility with the pair getting resistance in the range of 67.50 to 67.80
while holding support around 66.50.

PRIVATE CLIENT GROUP [PCG]

USDINR SEPT. FUT. ROLLING CHART (PRICE AND OPEN INTEREST)

Data Interpretation:

USDINR Sept. future closed at 67.11 up by 0.3% in the week gone. The near month future open interest was at 17.78 lakh
from previous week 24.72 lakh contracts.
The aggregate Open interest stood at 29.05 lakh lower than previous week 34.62 lakh contracts suggesting short covering
at lower level.
In near term, the pair may trade in range of 67.50 to 66.50 in coming week.

PRIVATE CLIENT GROUP [PCG]

INDIA FOREX RESERVE

Indian Foreign Exchange Reserves (US$ Billions)
Wkly Chg.

9-Sep

2-Sep

26-Aug

19-Aug

12-Aug

5-Aug

Total Reserves

3.51

371.28

367.77

366.78

367.17

365.82

365.75

Foreign Currency Assets

3.51

345.75

342.24

341.29

341.68

340.36

340.28

Gold

0.00

21.64

21.64

21.58

21.58

21.58

21.58

Special Drawing Rights

0.00

1.49

1.49

1.49

1.49

1.48

1.49

Position in IMF

0.00

2.4

2.4

2.4

2.41

2.39

2.39

FOREIGN FUND FLOW VS USDINR

Foreign Fund Flows Activity

PRIVATE CLIENT GROUP [PCG]

MAJOR CURRENCIES
CURRENCY PAIR
DOLLAR INDEX SPOT
Euro Spot
British Pound Spot
Japanese Yen Spot
Indian Rupee Spot
Brazilian Real Spot
Australian Dollar Spot
South Korean Won Spot
S. African Rand Spot
Canadian Dollar Spot
Swiss Franc Spot

OPEN

HIGH

LOW

CLOSE

95.251
1.1244
1.3239
102.09
66.8663
3.3035
0.7515
1124.87
14.2486
1.316
0.9718

96.108
1.125
1.3248
102.46
67.0325
3.3188
0.7527
1125.2
14.325
1.3248
0.9818

95.219
1.115
1.2998
101.74
66.84
3.2621
0.7475
1119.06
14.1035
1.3142
0.9712

96.108
1.1155
1.3002
102.29
66.985
3.2629
0.7491
1121.87
14.182
1.3212
0.9804

OPEN

HIGH

LOW

CLOSE

1314.75
18.9845
43.71

1318.17
19.03
43.75

1306.27
18.6645
42.74

1310.35
18.7854
43.03

OPEN

HIGH

LOW

CLOSE

8780.85
28520.3
18217.2
2146.48
5238.71
6730.3
4359.87
10403.7
16458.7
23237.2
3008.9

8847.65
28778.6
18217.2
2146.48
5248.61
6746.29
4380.13
10427.2
16532.8
23471.5
3017.95

8750.5
28494.6
18070.2
2131.2
5218.97
6692.73
4310.88
10262.2
16415.9
23194.4
2995.42

8779.85
28599
18123.8
2139.16
5244.57
6710.28
4332.45
10276.2
16519.3
23335.6
3002.85

1 DAY
(% CHG)
0.86
(0.79)
(1.79)
(0.19)
0.06
1.22
(0.32)
0.48
0.47
(0.39)
(0.88)

5 DAY
(% CHG)
0.81
(0.69)
(2.00)
0.39
(0.46)
0.34
(0.66)
(2.10)
1.65
(1.23)
(0.49)

1 MONTH 3 MONTHS
(% CHG) (% CHG)
1.39
1.63
(1.10)
(0.62)
(0.34)
(8.46)
(1.94)
1.93
(0.33)
0.44
(1.86)
6.22
(2.65)
1.74
(2.62)
4.41
(5.36)
8.21
(2.64)
(1.85)
(1.90)
(1.57)

1 DAY
(% CHG)
(0.33)
(1.05)
(2.00)

5 DAY
(% CHG)
(1.32)
(1.39)
(6.21)

1 MONTH 3 MONTHS
(% CHG) (% CHG)
(2.67)
2.50
(5.07)
9.26
(8.87)
(9.75)

1 DAY
(% CHG)
0.43
0.66
(0.49)
(0.38)
(0.10)
(0.30)
(0.93)
(1.49)
0.70
0.63
(0.68)

5 DAY
(% CHG)
(1.93)
(1.54)
0.21
0.53
2.31
(0.98)
(3.54)
(2.81)
(2.63)
(2.44)
(2.88)

1 MONTH 3 MONTHS
(% CHG) (% CHG)
1.30
7.46
1.86
7.41
(2.31)
2.54
(2.05)
3.28
0.12
9.25
(2.17)
11.45
(1.55)
3.31
(2.54)
6.69
(0.16)
5.90
1.85
16.45
(3.91)
4.01

MAJOR COMMODITIES
COMMODITY
GOLD
SILVER
CRUDE OIL

MAJOR INDICES
INDEX
Nifty 50
S&P BSE SENSEX INDEX
DOW JONES INDUS. AVG
S&P 500 INDEX
NASDAQ COMPOSITE INDEX
FTSE 100 INDEX
CAC 40 INDEX
DAX INDEX
NIKKEI 225
HANG SENG INDEX
SHANGHAI SE COMPOSITE

PRIVATE CLIENT GROUP [PCG]

ECONOMIC EVENTS NEXT WEEK

Date Time

Country

Event

Period

Survey

Prior

09/15/2016 09/30

IN

BoP Current Account Balance

2Q

$2.70b

-$0.30b

09/19/2016 13:30

EC

ECB Current Account SA

Jul

--

28.2b

09/19/2016 13:30

EC

Current Account NSA

Jul

--

37.6b

09/19/2016 14:30

EC

Construction Output YoY

Jul

--

0.60%

09/19/2016 19:30

US

NAHB Housing Market Index

Sep

60

60

09/20/2016 18:00

US

Housing Starts

Aug

1190k

1211k

09/20/2016 18:00

US

Building Permits

Aug

1165k

1144k

09/21/2016 05:20

JN

Trade Balance

Aug

195.5b

513.6b

09/21/2016 14:00

UK

Public Finances (PSNCR)

Aug

--

-2.1b

09/21/2016 14:00

UK

Public Sector Net Borrowing

Aug

10.5b

-1.5b

09/21/2016 16:30

US

MBA Mortgage Applications

16-Sep

--

4.20%

09/21/2016 23:30

US

FOMC Rate Decision (Upper Bound)

21-Sep

0.50%

0.50%

09/21/2016 23:30

US

FOMC Rate Decision (Lower Bound)

21-Sep

0.25%

0.25%

09/21/2016

JN

BOJ Annual Rise in Monetary Base

21-Sep

80t

80t

09/21/2016

JN

BOJ Policy Rate

21-Sep

-0.10%

-0.10%

09/21/2016

JN

BOJ Basic Balance Rate

21-Sep

--

0.10%

09/21/2016

JN

BOJ Macro Add-On Balance Rate

21-Sep

--

0.00%

09/22/2016 18:00

US

Initial Jobless Claims

17-Sep

260k

260k

09/22/2016 18:00

US

Continuing Claims

10-Sep

2145k

2143k

09/22/2016 19:30

EC

Consumer Confidence

-8.3

-8.5

09/22/2016 19:30

US

Existing Home Sales

Aug

5.45m

5.39m

09/22/2016 19:30

US

Leading Index

Aug

0.00%

0.40%

09/23/2016 06:00

JN

Nikkei Japan PMI Mfg

Sep P

--

49.5

09/23/2016 13:30

EC

Markit Eurozone Manufacturing PMI

Sep P

51.5

51.7

09/23/2016 13:30

EC

Markit Eurozone Services PMI

Sep P

52.8

52.8

09/23/2016 13:30

EC

Markit Eurozone Composite PMI

Sep P

52.8

52.9

09/23/2016 19:15

US

Markit US Manufacturing PMI

Sep P

52

52

PRIVATE CLIENT GROUP [PCG]

Sep A

KNOWLEDGE CENTRE
How Importers And Exporters Could Use A Forex Hedge To Minimise Losses
An important tool in the global financial markets, hedging is used in every asset class to mitigate losses. This can be
utilised by anyone, whether it is an individual or corporate, to overcome the negative impact of price volatility.
For the corporate in which the business activity is dependent on import and export of commodities, there is an automatic
exposure to foreign exchange and, hence, the need for hedging is higher. In the current context, since the world markets
are interlinked, they eventually affect and impact the movement of currencies.
Hedging, in any asset class, is ultimately a strategy to decrease or transfer risk in order to protect one's portfolio or
business from uncertainty in prices. In case of hedging in the foreign exchange market, a participant who is entering a
trade with the intention of protecting the existing position from an unexpected currency move, is said to have created a
forex hedge.
With the help of a forex hedge, a participant who is long in a foreign currency pair, can protect himself from the downside
risk. On the other hand, a hedger who is short on a foreign currency pair will protect his existing position from the upside
risk.
The strategy to create a hedge would depend on the following parameters: (a) risk component (b) risk tolerance and (c) to
plan and execute the strategy.
The impact of the movement in the USD-INR currencies affects both importers and exporters. In other words, an importer
will benefit when the rupee appreciates, while the exporter will gain when the rupee depreciates against the US dollar. The
cost of import reduces when the rupee gains strength, thus benefiting an importer, and at the same time creating a loss for
the exporter, since a stronger rupee will reduce the export remittances when converted to Indian rupees.
In order to reduce the risks associated with these uncertain movements in the financial markets, both importers and
exporters can utilize the derivatives platform of currency futures. By creating an equal and opposite position in the
derivatives market, a hedge can be created.

PRIVATE CLIENT GROUP [PCG]

KNOWLEDGE CENTRE
How Hedging Works For An Importer
Suppose an oil importer wants to purchase oil worth $1,00,000 and places his order on 11 March 2016, with the delivery
date being three months away. At the time of placing the contract in the spot market, one US dollar is worth, say, Rs
66.50. However, suppose the Indian rupee depreciates to Rs 69 per dollar when the payment is due in June 2016, the
value of the payment for the importer goes up to Rs 69,00,000 rather than Rs 66,50,000.
In this case, if the importer hedges the currency risk, the losses can be reduced. Here's how the hedging strategy for the
importer would work:
Buy 100 lots of USD June 2016 contracts on 11th March 2016, assuming that June 2016 contract is trading at 67 on 11th
March 2016.
Then in June 2016, He square off 100 lots USD at 69. Profit of Rs. 200000, i.e. 1000 lot size* (69-67) *100.
Then importer makes the payment of oil purchase at 69 per dollar
Had the importer not hedged his position, he would have suffered a loss of Rs 2,50,000 (Rs 69,00,000 - Rs 66,50,000).
However, by creating a hedge position on the futures platform, his losses were reduced to Rs 50,000 due to profits in
currency hedge.
How An Exporter Can Use Hedging
A Jeweller, who is exporting gold jewellery worth US$50,000 in March 2016, wants protection against a possible
appreciation in the Indian rupee in June 2016 (spot Rs 66.50), when he receives his payment. When he is required to make
the payment in June 2016, suppose the rupee appreciates to 64. If, in this situation, he wants to lock in the exchange rate
for the above transaction, his strategy would be as follows
In March 2016, Sell 50 lots of June 2016 contract USD with a lot size of 1000,spot market @66.50. Assume that initially
the Indian rupee depreciated, but later appreciated to 64 per USD as foreseen by the exporter at end of June 2016.
Had the exporter not hedged his position, he would have suffered a loss of Rs 75,000, i.e. (50*1000*(66.50-64)), but by
creating a hedge he has made a profit of Rs 75,000 in the futures, offsetting his business loss. Hence, exposure
management is essential, given the premise of a volatile foreign exchange market. Hedging in the currency markets,
therefore, holds prime importance.

PRIVATE CLIENT GROUP [PCG]

Technical Research Analyst(Equity and Currency): Vinay Rajani ([Link]@[Link])

Research Analyst(Currency): Dilip Parmar ([Link]@[Link])
HDFC securities Limited, I Think Techno Campus, Building - B, "Alpha", Office Floor 8, Near Kanjurmarg Station, Opp. Crompton Greaves, Kanjurmarg (East), Mumbai 400 042
HDFC securities Limited, 4th Floor, Above HDFC Bank, Astral Tower, Nr. Mithakadi 6 Road, Navrangpura, Ahmedabad-380009, Gujarat.
Phone: (079) 66090040 /66070168, Website: [Link] Email: [Link]@[Link]
"HDFC Securities Ltd. is a SEBI Registered Research Analyst having registration no. INH000002475."
Disclosure:
I/We, Vinay Rajani and Dilip Parmar, M.B.A., authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views
about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this
report.
Research Analyst or his/her relative or HDFC Securities Ltd. does not have any financial interest in the subject company. Also Research Analyst or his relative or HDFC Securities Ltd. or its
Associate may have beneficial ownership of 1% or more in the subject company at the end of the month immediately preceding the date of publication of the Research Report. Further
Research Analyst or his relative or HDFC Securities Ltd. or its associate does not have any material conflict of interest. Any holding in underlying No
Disclaimer:
This report has been prepared by HDFC Securities Ltd and is meant for sole use by the recipient and not for circulation. The information and opinions contained herein have been compiled or
arrived at, based upon information obtained in good faith from sources believed to be reliable. Such information has not been independently verified and no guaranty, representation of
warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. This document is for information
purposes only. Descriptions of any company or companies or their securities mentioned herein are not intended to be complete and this document is not, and should not be construed as an
offer or solicitation of an offer, to buy or sell any securities or other financial instruments.
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Foreign currencies denominated securities, wherever mentioned, are subject to exchange rate fluctuations, which could have an adverse effect on their value or price, or the income derived
from them. In addition, investors in securities such as ADRs, the values of which are influenced by foreign currencies effectively assume currency risk.
It should not be considered to be taken as an offer to sell or a solicitation to buy any security. HDFC Securities Ltd may from time to time solicit from, or perform broking, or other services for,
any company mentioned in this mail and/or its attachments.
HDFC Securities and its affiliated company(ies), their directors and employees may; (a) from time to time, have a long or short position in, and buy or sell the securities of the company(ies)
mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the
company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and
other related information and opinions.
HDFC Securities Ltd, its directors, analysts or employees do not take any responsibility, financial or otherwise, of the losses or the damages sustained due to the investments made or any
action taken on basis of this report, including but not restricted to, fluctuation in the prices of shares and bonds, changes in the currency rates, diminution in the NAVs, reduction in the dividend
or income, etc.
HDFC Securities Ltd and other group companies, its directors, associates, employees may have various positions in any of the stocks, securities and financial instruments dealt in the report,
or may make sell or purchase or other deals in these securities from time to time or may deal in other securities of the companies / organizations described in this report.
HDFC Securities or its associates might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any
other assignment in the past twelve months.
HDFC Securities or its associates might have received any compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report
for services in respect of managing or co-managing public offerings, corporate finance, investment banking or merchant banking, brokerage services or other advisory service in a merger or
specific transaction in the normal course of business.
HDFC Securities or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research
report. Accordingly, neither HDFC Securities nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not
based on any specific merchant banking, investment banking or brokerage service transactions. HDFC Securities may have issued other reports that are inconsistent with and reach different
conclusion from the information presented in this report.
Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We
have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.
This report has been prepared by the PCG 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, Retail) of HDFC Securities Ltd.

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