HSL PCG Currency Insight-Weekly

3 September, 2016

MARKET WRAP UP

WEEKLY MOVEMENT

RUPEE CHEERS BY POTENTIAL DOVISH FED ON WEAK DATA

Currency
Currency
(Spot)
DXY Index

Last

Prev.
Close

Chg.

%
Chg.

95.8440

95.5660

0.2780

0.3%
-0.4%

EURUSD

1.1156

1.1198 -0.0042

GBPUSD

1.3294

1.3137

0.0157

1.2%

103.9200 101.8400

2.0800

2.0%

USDJPY
USDINR

66.8250

67.0587 -0.2337

-0.3%

EURINR

74.8130

75.6940 -0.8810

-1.2%

GBPINR

88.5768

88.4990

0.0778

0.1%

JPYINR

64.5600

66.7600 -2.2000

-3.3%

DGCX USDINR

66.8315

67.4127 -0.5812

-0.9%

RBI Reference Rate

Last

Prev.
Close

Chg.

USDINR

66.8405

67.0299

-0.1894

-0.3%

EURINR

74.8012

75.7371

-0.9359

-1.2%

GBPINR

88.7040

88.5934

0.1106

0.1%

JPYINR

64.5200

66.7200

-2.2000

-3.3%

Currency

%
Chg.

GOI 10 Yr. Bond Yield

Instrument
759GS2026

Last
7.1180

Prev.
Close

Chg.

7.1290

-0.0110

%
Chg.
-0.2%

The rupee on Friday strengthened for the fourth consecutive session and
hit a two-week high against the US dollar after strong foreign fund flows
in last couple of days. The currency closed at 66.83 per dollar--a level
last seen on 18 August, up 0.3% from its previous close of 67.06. Since 1
March till date, FIIs have bought $8.98 billion in local equity markets.
The 10-year bond yield closed at 7.118% compared with its Thursday's
close of 7.121%. Bond yields and prices move in opposite directions.

Euro got stuck ahead of ECB Meet

The lack of growth and failure to produce inflation has led many of us to
the expectation that the ECB might go for even more stimulus at their
upcoming meeting on Wednesday-Thursday, either through a deeper cut
of the deposit rate into further negative territory (low probability, less
likely after recent PMI's), or perhaps through an extension of the bank's
80 billion-per-month bond buying program beyond its currently
designed March 2017 end-date.

Yen Extend Losses As BoJ Could Give New Easing

The Japanese Yen finished last week lower against major currencies in
anticipate the dual Central Bank meeting of Federal Reserve and the BoJ
on September. Market-men expect BoJ may give new easing and in turn
weak the Yen.

Next week, the finalized print for 2Q GDP for the Japanese economy is
expected to see an upward revision to a seasonally adjusted 0.4% q/q
up from the preliminary reading of 0.2%. The GDP print will be combined
with the Balance of Payments reading that will help traders see how the
export-dependent economy is faring in an environment of a rather
strong JPY.

A weaker-than-expected U.S. jobs report for August may slightly

strengthen the hand of Fed officials who want to delay an interest-rate
increase when they meet in a few weeks, though others may argue that
cumulative gains warrant a move soon. Labor Department report showed
151,000 workers were added to payrolls last month, by marking down
the chances of rate increase at the FOMCs Sept. 20-21 meeting to about
one in five, according to the prices of federal funds futures contracts.

PRIVATE CLIENT GROUP [PCG]

Pound Continues Winning Run for the Third Week

The pound marked its longest run of gains since before Britain voted to leave the European Union as data signal the economic
consequences of the decision may be less dire than expected. Sterling climbed to its highest level in a month versus the dollar, extending
its advance into a third week. The British Pound made high of 1.3352 before ending the week at 1.3294 with the gain of 1.20%.

Week Ahead

Caixin's services PMI will round out the set of China's early indicators for August. July's reading came in at 51.7, pointing to a
moderate pace of expansion.

Tuesday's release will reveal the drivers of growth over 2Q for the first time, perhaps with a revision. Elsewhere, the Bank of
England will announce the results of its long-term repurchase operation.

Wednesday will see the publication of the first hard data to capture the aftermath of Britain's vote to leave the EU. The July
industrial production numbers will be incorporated into the country's GDP figures for 3Q. The report can be used to assess the
accuracy of the manufacturing PMI, which indicated that output plunged in July. Production is volatile month to month, and
July's reading should be viewed in the context of a decent 1H for the sector.

The U.K. will also see its Halifax house price release, used mainly to cross-check the nationwide numbers already published.
And some Bank of England Monetary Policy Committee members are due to speak in London, including Governor Mark Carney.

On Thursday, Japan's 2Q GDP is likely to be revised upward. Bloomberg expects 0.4% QoQ seasonally-adjusted annualized
growth, up from the preliminary 0.2% estimate. A downward revision to private inventories may pull the other way. Stronger
growth data could ease pressure on the BOJ to add stimulus at its Sept. 20-21 meeting.

The biggest event coming week is the European Central Bank's policy decision on Thursday. With the growth outlook evolving
following Britain's vote to leave the EU, Economist expects only a modest change to ECB policy: an acknowledgement that
purchases are more likely to run beyond March than end sooner. Elsewhere, Britain will get its PMI reading for August, an
important indicator of growth momentum, and the first hard data since the vote -- industrial production for July.

Chinas NBS will release August consumer and producer price data on Friday. The consensus forecast is for the CPI to stay
low at 1.7% YoY, easing from 1.8% in July as food prices moderate. The PPI is expected to edge closer to positive territory,
rising to -1.0% from -1.7%. A return to increasing producer prices after 4 years of deflation could be a significant positive for
the corporate sector.

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
75.1075
88.9375
64.8325

67.3875
76.0700
88.9325
67.0425

WKLY
% CHG.

-0.4%
-1.3%
0.0%
-3.3%

OPEN
INTEREST
(OI)

1934318
71135
39130
40187

PREV.
WEEK OI

1408323
64877
26333
36787

PRIVATE CLIENT GROUP [PCG]

WKLY OI
% CHG.

37.3%
9.6%
48.6%
9.2%

VOLUME
(VOL.)

810944
39125
48806
29420

PRV.
WEEK
VOL.

566793
16747
17778
18091

WKLY VOL.
% CHG.

43.1%
133.6%
174.5%
62.6%

TECHNICAL OUTLOOK

USDINR SEPT. FUTURE

USDINR Sept. Future CMP 67.07

Currency

Weekly Pivot

Resistance 2

67.68

Resistance 1

67.38

Pivot

67.21

Support 1

66.91

Support 2

66.74

DAILY CHART

Technical Observation:

Lower tops and lower bottoms

are well intact on the daily
charts.
Pair is trading below its 20, 50
and 200 DMA
Head and shoulder pattern
breakdown is observed on the
daily chart, which could push
the pair towards 65.50-65.60
levels.
Pair is on the verge of
registering lowest levels of the
current down trend
Oscillators
are
indicating
weakness in the pair
Trend of the pair is bearish and
one should continue to remain
short in the pair, with a stop
loss at 67.50

PRIVATE CLIENT GROUP [PCG]

TECHNICAL OUTLOOK

EURINR SEPT. FUTURE

EURINR Sept. Future CMP 75.12

Currency

Weekly Pivot

Resistance 2

76.89

Resistance 1

76.01

Pivot

75.45

Support 1

74.57

Support 2

74.01

View: Buy EURINR Sep Fut.

Higher tops and higher bottoms

are well intact on the daily
chart.
Pair has recently corrected from
76.16 levels to 74.90.
Pair is still maintaining the level
above its 200 DMA.
Pair has formed inverse head
and shoulder pattern on the
daily chart, indicating bullish
reversal.
Resistance for the pair is placed
at 76.16.
Support for the pair is placed at
74.10.
Bias for the pair is bullish
We advise buying EURINR
Sep
Fut.
Around
74.50
target of 76.15, keeping
stop loss at 73.70

PRIVATE CLIENT GROUP [PCG]

DAILY CHART

TECHNICAL OUTLOOK

GBPINR SEPT. FUTURE

GBPINR Sept. Future CMP 88.88

Currency

Weekly Pivot

Resistance 2

89.85

Resistance 1

89.36

Pivot

88.72

Support 1

88.23

Support 2

87.59

View: Bullish

The pair seems to have

reversed the trend from bearish
to bullish on the daily charts
Pair has reached above 20 DMA
resistance.
Pair has formed higher top
preceded by higher bottom
Pair is on the verge of giving
breakout from bullish inverse
head and shoulder pattern on
the daily chart.
Bias for the next week remain
bullish for the pair.
Resistance for the pair is seen
at 90.30
Support for the pair is seen at
88.
Traders can initiate longs with a
stop loss at 88, for the target of
90.30.

PRIVATE CLIENT GROUP [PCG]

DAILY CHART

TECHNICAL OUTLOOK

JPYINR SEPT. FUTURE

JPYINR Sept. Future CMP : 64.89

Currency

Weekly Pivot

Resistance 2

67.94

Resistance 1

67.91

Pivot

66.33

Support 1

66.30

Support 2

64.72

DAILY CHART

View: Bearish

Pair has breached the support of

its 20 DMA.
Pair has violated the bullish
inverse head and shoulder on the
daily chart.
The level of 67.10 would be
acting as key resistance going
forward.
Support for the pair is placed at
62.70.
RSI has reached below the
benchmark level of 50, indicating
weakness.
Considering
the
technical
evidences discussed above, we
advise traders to remain bearish
in the pair.
Sell on rallies
should be the
strategy for the next week.

PRIVATE CLIENT GROUP [PCG]

EURUSD

DOLLAR INDEX
DXY: Daily Chart

GBPUSD

EURUSD: Daily Chart

USDJPY
USDJPY: Daily Chart

GBPUSD: Daily Chart

PRIVATE CLIENT GROUP [PCG]

USDINR SEPT. MONTH OPTION DISTRIBUTION

3.50
3.00
2.50

1
2.6

66.50

67.00

67.50

0.3

1.7
68.00

68.50

66.00

0.6

0.6

0
0

0.4

0.00

0.0

0.50

1.00

2.0

2.4

1.50

3.0

3.3

2.00

3.2

OI in Lakhs

USDINR OPTION OPEN INTEREST DISTRIBUTION

-0.50
CALL OI

PUT OI

WKLY CALL OI CHG

WKLY PUT OI CHG.

Data Interpretation:

The put call ratio for the September contract drifted lower to 0.84 from previous week 0.98 as ratio is still near one
indicating bearishness for the pair.
There is high number of open interest in 66.50 and 67.50, indicating consolidation in USDINR. The either side of the
break out would bring high volatility with price action.
Looking at the above option distribution the USDINR Sept. future would trade in tight range of 67.50 to 66.50.

PRIVATE CLIENT GROUP [PCG]

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

Data Interpretation:

USDINR Sept. future witnessed loss of 0.4% and addition of 37% in open interest indicating fresh short.

The aggregate Open interest stood at 2.417 million contract.

The overall bias for the pair remains bearish with expected downside of 66.50 while sustainable trade only above 67.50 will
negate the trend.

PRIVATE CLIENT GROUP [PCG]

INDIA FOREX RESERVE

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

19-Aug

12-Aug

5-Aug

22-Jul

15-Jul

8-Jul

Total Reserves

1.35

367.17

365.82

365.75

362.69

363.35

361.94

Foreign Currency Assets

1.32

341.68

340.36

340.28

338.26

338.90

337.49

Gold

0.00

21.58

21.58

21.58

20.57

20.57

20.57

Special Drawing Rights

0.01

1.49

1.48

1.49

1.47

1.48

1.48

Position in IMF

0.02

2.41

2.39

2.39

2.38

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

95.672
1.1197
1.3268
103.23
66.825
3.2523
0.7551
1117.72
14.5985
1.3103
0.9801

95.958
1.1252
1.3352
104.32
66.8613
3.2701
0.7616
1119.69
14.6828
1.3115
0.982

95.189
1.1151
1.3253
102.8
66.8112
3.2241
0.7536
1115
14.3635
1.2982
0.9739

95.844
1.1156
1.3294
103.92
66.825
3.2569
0.7573
1117.25
14.4932
1.2993
0.9809

OPEN

HIGH

LOW

CLOSE

1313.89
18.8945
43.55

1330.2
19.463
44.67

1304.83
18.7575
43.16

1325.21
19.4475
44.44

OPEN

HIGH

LOW

CLOSE

8796.35
28498.7
18466
2177.49
5249.66
6745.97
4461.29
10570.7
16903.8
23157
3057.49

8824.1
28581.6
18544.8
2184.87
5263.39
6928.25
4548.04
10693.6
16946.5
23306.5
3072.53

8768.2
28427.6
18439.1
2173.59
5231.02
6745.97
4446.5
10516.8
16848.1
23152.8
3050.49

8809.65
28532.1
18492
2179.98
5249.9
6894.6
4542.17
10683.8
16925.7
23266.7
3067.35

1 DAY
(% CHG)
0.20
(0.37)
0.20
(0.66)
0.20
0.01
0.29
0.43
0.73
0.85
(0.08)

5 DAY
(% CHG)
0.29
(0.38)
1.20
(2.00)
0.35
0.27
0.12
(0.31)
(0.85)
0.08
(0.28)

1 MONTH 3 MONTHS
(% CHG) (% CHG)
0.82
0.29
(0.61)
0.04
(0.47)
(7.83)
(2.92)
4.76
(0.13)
0.70
0.07
10.34
(0.47)
4.76
(0.64)
6.21
(3.40)
7.48
0.90
0.79
(1.70)
0.97

1 DAY
(% CHG)
0.86
2.93
2.97

5 DAY
(% CHG)
0.31
4.24
(6.72)

1 MONTH 3 MONTHS
(% CHG) (% CHG)
(2.81)
9.43
(5.70)
21.62
10.27
(11.88)

1 DAY
(% CHG)
0.40
0.38
0.39
0.42
0.43
2.20
2.31
1.42
(0.01)
0.45
0.13

5 DAY
(% CHG)
2.77
2.70
0.52
0.50
0.59
1.14
2.26
0.91
3.45
1.56
(0.10)

1 MONTH 3 MONTHS
(% CHG) (% CHG)
1.46
7.16
1.62
6.29
(0.28)
3.85
(0.13)
3.85
0.55
6.22
1.49
11.03
2.98
2.72
3.05
5.75
4.13
1.70
5.06
11.07
3.05
4.38

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

09/05/2016 06:00

JN

Nikkei Japan PMI Composite

Aug

--

50.1

09/05/2016 07:15

CH

Caixin China PMI Composite

Aug

--

51.9

09/05/2016 10:30

IN

Nikkei India PMI Services

Aug

--

51.9

09/05/2016 10:30

IN

Nikkei India PMI Composite

Aug

--

52.4

09/05/2016 13:30

EC

Markit Eurozone Composite PMI

Aug F

53.3

53.3

09/05/2016 14:00

UK

Markit/CIPS UK Composite PMI

Aug

49.5

47.5

09/05/2016 14:00

EC

Sentix Investor Confidence

Sep

5.5

4.2

09/05/2016 14:30

EC

Retail Sales YoY

Jul

1.80%

1.60%

09/05/2016 09/30

IN

BoP Current Account Balance

2Q

--

-$0.30b

09/06/2016 13:40

EC

Markit Eurozone Retail PMI

Aug

--

48.9

09/06/2016 14:30

EC

GDP SA YoY

2Q F

1.60%

1.60%

09/06/2016 19:15

US

Markit US Composite PMI

Aug F

--

51.5

09/06/2016 19:30

US

ISM Non-Manf. Composite

Aug

55.4

55.5

09/07/2016 13:00

UK

Halifax House Prices MoM

Aug

-0.30%

-1.00%

09/07/2016 14:00

UK

Industrial Production YoY

Jul

1.90%

1.60%

09/07/2016 14:00

UK

Manufacturing Production YoY

Jul

1.60%

0.90%

09/07/2016 16:30

US

MBA Mortgage Applications

2-Sep

--

2.80%

09/07/2016 19:30

UK

NIESR GDP Estimate

Aug

--

0.30%

09/08/2016 05:20

JN

GDP SA QoQ

2Q F

0.00%

0.00%

09/08/2016 17:15

EC

ECB Main Refinancing Rate

8-Sep

0.00%

0.00%

09/08/2016 17:15

EC

ECB Deposit Facility Rate

8-Sep

-0.40%

-0.40%

09/08/2016 17:15

EC

ECB Marginal Lending Facility

8-Sep

0.25%

0.25%

09/08/2016 17:15

EC

ECB Asset Purchase Target

Sep

EU80b

EU80b

09/08/2016 18:00

US

Initial Jobless Claims

265k

263k

09/08/2016 18:00

US

Continuing Claims

2151k

2159k

09/08/2016

CH

Trade Balance

Aug

$58.35b

$52.31b

09/09/2016 07:00

CH

CPI YoY

Aug

1.70%

1.80%

09/09/2016 07:00

CH

PPI YoY

Aug

-1.00%

-1.70%

PRIVATE CLIENT GROUP [PCG]

3-Sep
27-Aug

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 (vinay.rajani@hdfcsec.com)

Research Analyst(Currency): Dilip Parmar (dilip.parmar@hdfcsec.com)
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: www.hdfcsec.com Email: pcg.advisory@hdfcsec.com
"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.
This report is not directed to, or intended for display, downloading, printing, reproducing or for distribution to or use by, any person or entity who is a citizen or resident or located in any
locality, state, country or other jurisdiction where such distribution, publication, reproduction, availability or use would be contrary to law or regulation or what would subject HDFC Securities Ltd
or its affiliates to any registration or licensing requirement within such jurisdiction.
If this report is inadvertently send or has reached any individual in such country, especially, USA, the same may be ignored and brought to the attention of the sender. This document may not
be reproduced, distributed or published for any purposes without prior written approval of HDFC Securities Ltd.
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.

PRIVATE CLIENT GROUP [PCG]