{LONGTERMINVESTORS} Fwd: Morning Market Starter- March 03, 2016

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From: <research@icicibank.com>
Date: Thu, Mar 3, 2016 at 11:37 AM
Subject: Morning Market Starter- March 03, 2016
To: stockdesai@gmail.com

Central Bank watch: Federal Reserve released the Fed Beige Book. o Most Fed banks reported modest pace of growth. o Consumer spending, and home sales rose in most Fed districts, while auto sales were flat. The energy sector contracted. Wage growth went from flat to strong in most districts. o However, strong Dollar and global headwinds continued to hurt exports. US Fed official John Williams remained bullish on the US economy, citing that the economy is set to "power ahead" and consequently push inflation back to its target. He further added that the Central Bank should use forward guidance or QE if required, than negative interest rates. Federal Reserve Bank of Cleveland President Loretta Mester stated that the fundamentals of the US economy remain strong and the Central Bank should stay on track and raise interest rates gradually. European Central Bank (ECB) Governing Council member Francois Villeroy de Galhau said that the ECB is closely watching for any fall in the level of inflation to guide policy decision. Chart: US ADP employment data came in higher than expected in February Global market developments: Macroeconomic Data: US:  US ADP employment data surprised on the upside, adding 214K private jobs in February vs. prior print of 193K (revised). CH: Caixin PMI Services came in lower at 51.2 levels in February vs. prior reading of 52.4 levels. JN: PMI Services lowered, but remained in the expansionary territory at 51.2 levels vs. prior print of 52.4 levels. US equities ended in the green yesterday. Upbeat US ADP employment data and overnight gains in oil prices stoked market sentiment. The Dow Jones and S&P gained 0.2% and 0.4% respectively. Asian equities are trading largely in the green this morning, in line with US equities. Hopes of additional stimulus measures is aiding sentiment. Nikkei (0.9%), Shanghai Composite (0.8%), Kospi (0.1%) and Australia's ASX (0.8%) are posting gains. In contrast, Hang Seng (-0.4%) is posting losses. US Treasuries are trading little changed today, extending recent losses. Upbeat US data has reduced demand for Treasuries in recent trade. The 10Y benchmark yield is at 1.85% vs. yesterday's close of 1.84%. Global market snapshot Domestic market developments: Reserve Bank of India (RBI) is scheduled to conduct OMO purchases worth INR 120 bn due later today. Indian Rupee is trading stronger vis-à-vis the US Dollar, at 67.39 levels vs. yesterday's close of 67.54. Indian equities are trading in the green today. Nifty and Sensex are trading higher by 0.7% and 0.9% respectively. Regards, ICICI Bank Contact: Sagrika Gogia (+91-22) 2653-1414 (extn: 2180) sagrika.gogia@icicibank.com Niharika Tripathi (+91-22) 2653-1414 (extn: 6943) niharika.tripathi@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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