{LONGTERMINVESTORS} Fwd: Morning market Starter- January 19, 2016

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From: <research@icicibank.com>
Date: Tue, Jan 19, 2016 at 10:58 AM
Subject: Morning market Starter- January 19, 2016
To: stockdesai@gmail.com

On the radar: Markets await UK's December CPI print. Key developments today: China's Q4 GDP print was released early morning, in addition to data on industrial production and retail sales o GDP growth in Q4 2015 came in at 6.8% YoY (previous quarter growth: 6.9% YoY), lowest since 2009. However, annual GDP growth rate in 2015 was 6.9%, the lowest in the past 25 years. o Industrial production declined to 5.9% YoY in December, lower than November's reading of 6.2% YoY. o Retail sales data also showed a mild decline, coming in at 11.1% YoY in December vs. November' s print of 11.2% YoY. Central Bank watch: Bank of England's Monetary Policy Committee member Gertjan Vlieghe has quelled hopes of a rate hike by the Central Bank in the near term. He was quoted as saying, "With growth still slowing, and inflation pressures either easing outright or disappointing relative to forecasts, I do not believe the conditions are in place to warrant a rise in bank rate". Chart: China's Q4 2015 GDP came in at 6.8% YoY, lowest since 2009 Source: Bloomberg, ICICI Bank Research Global market developments: US equities markets were closed yesterday on account of a holiday. Asian equities are trading mixed this morning, correcting some of the sharp losses posted yesterday. Markets saw volatile early morning trade in anticipation of crucial Chinese data. However, the data prints remained largely in line with expectations providing some respite to the markets. o Shanghai Composite, Hang Seng and Australia's ASX have edged up 0.2%, 0.8% and 0.5% respectively. o Meanwhile, Nikkei is trading flat and Kospi has dipped 0.4%. US Treasuries are trading lower today, albeit holding on to bulk of Friday's gains. A modest retracement in Asian equity markets following the release of Chinese data prints on expected lines is keeping market sentiment buoyed. The 10Y benchmark yield is at 2.06% relative to Friday's close of 2.03%. Table: Global market developments Domestic Market Developments: Reserve Bank of India has announced open market purchases worth INR 100 bn to be conducted on Wednesday. Rupee is trading little changed against the US Dollar, at 67.67 levels relative to yesterday's close of 67.68. Indian indices opened in the green this morning, following positive cues from Asian markets. Both Sensex and Nifty have gained 0.7% and 0.5% respectively. Regards, ICICI Bank Contact: Samir Tripathi (+91-22) 4008-1414(extn:7233) samir.tripathi@icicibank.com Sagrika Gogia (+91-22) 4008-1414(extn:2180) sagrika.gogia@icicibank.com

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CA. Rajesh Desai

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