{LONGTERMINVESTORS} Fwd: Morning Market Starter- March 01, 2016

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From: <research@icicibank.com>
Date: Tue, Mar 1, 2016 at 11:54 AM
Subject: Morning Market Starter- March 01, 2016
To: stockdesai@gmail.com

Central Bank watch: The Reserve Bank of Australia (RBA) maintained status quo in its policy meeting today and kept the cash rate unchanged at 2%. Bank of Japan (BoJ) Governor Haruhiko Kuroda stated that the Central Bank's quantitative and qualitative easing (QQE) and policy of negative interest rates have yielded expected results in financial markets. People's Bank of China (PBOC) cut the reserve requirement ratio by 50 bps yesterday. Chart: Eurozone's CPI inflation slipped into the negative territory at (-) 0.2% YoY in February Global market developments: Macroeconomic Data: o EZ: Headline CPI (advance estimate) in February was downbeat, with the reading at (-) 0.2% YoY, vs. prior print of 0.3% YoY. Core CPI for February also came in below expectations, at 0.7% YoY (previous print: 1.0% YoY). o US: Chicago manufacturing PMI slipped into contractionary territory (below 50 levels) at 47.6 in February (prior levels: 55.6). Dallas Fed Manufacturing activity for February came in at (-) 31.8 vs. prior print of (-) 34.6. US equities ended in the red yesterday. Downbeat US data showing softened manufacturing activity in February curbed investor confidence. Declines were led by specialty pharma companies. Dow Jones and S&P lost 0.7% and 0.8% respectively. Asian equities are trading in the green this morning. Announcement of a cut in the reserve ratio requirement by the PBoC provided some buoyancy to risk sentiment. However, gains have been capped on account of a slew of downbeat manufacturing PMI prints from Japan and China. Nikkei (0.4%), Hang Seng (0.4%), Shanghai Composite (0.2%) and Australia's ASX (0.5%) are all posting gains. Markets in South Korea are closed on account of a holiday. US Treasuries are trading higher today. The 10Y benchmark yield is at 1.71% vs. yesterday's close of 1.74%. Global market snapshot Domestic market developments: April-January FY2016 fiscal deficit currently stands at 95.8% of the FY2016 budgeted aim vs. 107.0% in the corresponding period last year. Union Budget for FY2017 was tabled in the Parliament yesterday. Indian Oil Corporation lowered petrol prices by INR 3.02/litre with effect from yesterday midnight. However, Diesel prices were raised by INR 1.47/litre. Rupee is trading stronger vis-à-vis the US Dollar, at 68.27 levels vs. yesterday's close of 68.43. Indian equities are trading in the green this morning.  Nifty and Sensex are trading higher 2.2% each. Regards, ICICI Bank Contact: Sagrika Gogia (+91-22) 2653-1414 (extn: 2180) sagrika.gogia@icicibank.com Sonal Surana (+91-22) 2653-1414 (extn: 2087) sonal.surana@icicibank.com Radhika Wadhwa (+91-22) 2653-1414 (extn: 2085) radhika.wadhwa@icicibank.com ​

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CA. Rajesh Desai

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