HINDUJA BANK (SWITZERLAND) LTD

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1 HINDUJA BANK (SWITZERLAND) LTD BUILDING WEALTH, ENABLING ENTERPRISE 31 March 2014 DAILY MARKET COMMENTS INDIA SUMMARY Key benchmark indices edged higher on last trading session of Q4 March 2014 and the fiscal year ended 31 March 2014 (FY 2014), with the market sentiment boosted by data showing that foreign institutional investors (FIIs) made substantial purchases of Indian stocks on Friday, 28 March The Sensex garnered points or 0.21%. The market breadth was strong. The BSE Mid-Cap and Small-Cap indices gained more than 1% each, with both these indices outperforming the Sensex. Shares of metal and mining stocks extended recent gains triggered by growing expectations that China will take steps to stimulate its sagging economy. Shares of aluminium major Hindalco Industries hit 52-week high. Steel stocks surged. Index heavyweight ITC declined. ABB India and Siemens hit a 52- week high. Among auto components makers, shares of Motherson Sumi Systems hit record high while Bharat Forge hit 52-week high. Shares of fast moving electrical goods (FMEG) company Havells India hit record high. Auto and Realty stocks rose as the Reserve Bank of India (RBI) is widely expected to keep its main lending rate viz. the repo rate unchanged after a monetary policy review tomorrow, 1 April 2014, as inflation has eased. HIGHLIGHTS IN THE HEADLINES TODAY Market marks FY'14 end with record highs A M Naik sells his L&T shares worth Rs 720 mn in 20 days Crisil sees no room for rate cut on sticky core inflation Reliance Industries hits 52-week high Coal India may produce 462 million tonnes, missing FY14 target Gold imports at six-year low GM Breweries zooms 40% in two days on bonus issue plan INSTITUTIONAL ACTIVITY ON NSE & BSE Category Buy Value (Rs bn) Sell Value (Rs bn) Net Value (Rs bn) Foreign Institutional Investors (FII) Domestic Institutional Investors (DII) (6.11)

2 INDEX MOVEMENTS Index Close Open High Low Close Gain / Loss Var. S&P BSE Sensex 22,340 22,423 22,467 22,254 22, CNX Nifty 6,696 6,723 6,730 6,662 6, CNX 500 5,202 5,224 5,234 5,188 5, CNX Nifty Junior 13,298 13,358 13,488 13,320 13, CNX Midcap 8,515 8,559 8,624 8,522 8, CNX IT 9,275 9,298 9,325 9,184 9, CNX 100 6,578 6,606 6,617 6,552 6, BANK Nifty 12,755 12,856 12,869 12,660 12,742 (12.65) (0.10) NIFTY GAINERS Company Curr. Gain HINDALCO JINDALSTEL TATASTEEL ACC 1,400 1, SSLT NIFTY LOSERS Company Curr. Loss ONGC (3.34) IDFC (2.95) DRREDDY 2,556 2,626 (2.65) BHEL (2.55) TECHM 1,793 1,837 (2.36) COMMODITIES & CURRENCIES Commodity (Futures) Day Curr. Day Brent Crude (USD / bbl) Gold (USD / t. Oz) 1, , Silver (USD / t. Oz) Currency Curr. Rate USD / INR EUR / INR ASIAN MARKETS Index Closing Gain / Loss Var. Hang Seng 22, Nikkei , Shanghai Composite 2, Straits Times 3, Taiwan TAIEX 8, Yen / INR 58.00

3 GLOBAL MARKET OVERVIEW European stocks edged lower on Monday, 31 March 2014, after a larger-than-expected drop in eurozone inflation reignited deflation fears, adding more pressure on the European Central Bank to ease monetary policy at its meeting on Thursday. Key benchmark indices in UK and Germany were down 0.09% to 0.24%. France's CAC 40 was up 0.56%. Asian stocks edged higher on Monday, 31 March 2014, with investors holding out hopes that China would take steps to stimulate its economy. Key benchmark indices in Hong Kong, Singapore, South Korea, Japan and Taiwan were up 0.23% to 0.9%. China's Shanghai Composite shed 0.41%. GLOBAL NEWS Inflation fell to 0.5% in the currency union in March, below analysts' expectations and marking the lowest level since late A policy meeting of the Governing Council of the European Central Bank (ECB) will be held on Thursday, 3 April 2014, in Frankfurt to decide euro zone interest rates. ECB President Mario Draghi has consistently reassured listeners that the euro zone isn't heading for deflation, but that the central bank stands ready to act if needed. The euro lingered near a one-month low it hit against the dollar on Friday after an unexpected drop in Spanish and German inflation bolstered expectations the European Central Bank could further ease monetary policy as early as Thursday. China's Premier Li Keqiang on Friday sought to reassure jittery global investors that Beijing was ready to support the cooling economy, saying the government had the necessary policies in place and would push ahead with infrastructure investment. South Korea reportedly on Monday returned fire into North Korean waters after shells from a North Korean live-fire drill fell south of the rivals' disputed western sea boundary. Residents on one South Korean island near the artillery exchange have been evacuated, according to reports. Reports said North Korean forces had fired into the South's sea territory as part of a live-fire exercise, prompting South Korea to return fire. ECONOMIC AND POLITICAL NEWS Finance Minister P. Chidambaram Monday said the government is hopeful of meeting major fiscal consolidation targets and the country's current account deficit is estimated to come down to $35 billion in the from a record high of $88 billion. The finance minister said the country's fiscal deficit would be around 4.6 percent of the gross domestic product (GDP), as outlined by him in the union budget for India's crude oil imports surged 23% in February as demand for fuel rose with electioneering for the Lok Sabha polls picking up. The world's third-biggest crude oil importer bought million tons of oil from overseas last month, up from million tons a year earlier, according to oil ministry data. Refiners see demand for fuel, especially diesel, rising as electioneering picks up for the April-May Lok Sabha polls. Import of gold in the financial year that has just ended is estimated at six year low at 557 tonnes which is lowest after The fall in import is following stiff import curbs including very high import duty. Return from gold also came down marginally in FY14. However internationally gold investors lost 19.4%, in India due to lower rupee (10.36%) and increase in duty as well as high premiums for physical delivery, fall in returns from gold was curtailed only to 3.17%.

4 INDUSTRY NEWS The Sports Utility Vehicle (SUV) market in Uttar Pradesh (UP) has hit top gear in buildup to the trailblazing Lok Sabha poll SUVs are the first choice amongst candidates and their enthusiastic supporters for canvassing, especially in the semi-urban and rural constituencies. Besides, the candidates try to make a statement of power with the tough exteriors of these big toys. Automotive dealers in UP claim the market has witnessed an upswing of over 25% in the SUV space. The pre-owned SUV segment is also on hot-wheels for the last couple of months as the elections drew nearer. SECTOR PERFORMANCE AND TRENDS Out of 2884 scrips traded over BSE, 1701 advanced & 1039 declined. Sector Var S&P BSE BANKEX (0.09) S&P BSE CAPITAL GOODS (0.47) S&P BSE REALTY 2.83 S&P BSE POWER (0.60) S&P BSE OIL & GAS 0.32 S&P BSE METAL 3.87 S&P BSE CONSUMER DURABLES 2.62 S&P BSE AUTO 1.05 S&P BSE TECK 0.15 S&P BSE IT 0.17 Sector Trend * Auto BFSI Construction Consumer Goods Energy Industrial Manufacturing IT Metals Telecom * Shows trend for current & previous trading sessions S&P BSE FMCG (0.64) S&P BSE HEALTHCARE 0.11 BONDS, T-BILLS & IPOs Indian firms raised a staggering Rs 713 bn in with debt market emerging as the most preferred route for garnering capital to meet business needs. According to a report by Prime Database, they mopped-up Rs bn through public markets during the financial year ending today, showing a surge of 13% from Rs bn garnered Private lender Lakshmi Vilas Bank has sought market regulator's Sebi approval to raise Rs 5.05 bn through rights issue. Issue of equity shares on a rights basis to its existing equity shareholders would aggregate up to Rs 5.05 bn, draft letter filed by Lakshmi Vilas Bank with Securities and Exchange Board of India (Sebi) showed. The battle between Financial Technologies (India) (FTIL) and the commodity exchange promoted by it - Multi Commodity Exchange (MCX) - took a new turn on Monday with the promoter threatening the exchange to take legal action on any attempt by it to consider allotment of preferential shares.

5 COMMODITIES Gold was little changed on Monday, trading close to a six-week low and headed for its first monthly decline this year as growing optimism about the US economy eroded investment interest and encouraged appetite for riskier assets. Gold prices fell by Rs 50 to Rs 29,300 per 10 grams in the national capital. Silver also lost Rs 100 to Rs 43,400 per kg. Brent crude traded near a two-week high at above $107 a barrel on Monday as simmering tensions between Russia and the West offset a rise in oil supply from OPEC's second-largest producer Iraq. CORPORATE ANNOUNCEMENTS Top executives of Larsen and Toubro (L&T) are on selling spree of their shares in the company, with Executive Chairman A M Naik leading the pack. Naik has sold his 567,000 shares in the company worth about Rs mn in last 20 days, company's filings to the BSE in March showed. Two other top officials, CEO K Venkataramanan and whole time director Shailendra N Roy, have also offloaded part of their shares in the same period. Noel Naval Tata, brother-in-law of Tata group Chairman Cyrus Mistry, has taken over as the chairman of retail firmtrent, succeeding FK Kavarana who retired from the Tata group companies after attaining the age of 70 this month. State-owned power equipment maker BHEL has secured Rs 125 crore contract for setting up a 120 MW Hydro Electric Project in Uttarakhand. Mahindra & Mahindra has completed the merger of trucksand buses vertical of its subsidiary MTBL with itself for greater synergy with the group business. In a filing to the BSE today, M&M said the scheme of arrangement has become effective from March 30, Infrastructure conglomerate Larsen and Toubro (L&T) has won new orders worth Rs bn across various business segments in March. The information in this publication was developed using data which Hinduja Bank () Ltd assumes to be accurate; nevertheless, Hinduja Bank () Ltd accepts no liability and offers no guarantee. The availability of such information does not constitute a recommendation to buy or sell any of the securities discussed therein. Statements made in this publication can be changed without prior notice. Moreover, the content is not intended for individuals (or entities) who (which), by reason of their nationality or domicile or for any other reason, are subject to foreign regulations prohibiting access to banking services or investment instruments via one or several distribution channels, or prohibiting or restricting the use of any information provided in this document.