Our ‘Advice for the Wise’ monthly newsletter gives you an outlook across sectors along with economic updates both from a global and domestic perspective.

1. ADVICE for the WISE
Newsletter – January’11

2. Index Page No.
Economic Update 4
Equity Outlook 8
Debt Outlook 15
Forex 19
Commodities 20
2

3. Dear Investor, Global economy continued to remain anemic. Concerns about the
future of Euro as a currency are beginning to be voiced more and
Indian equity markets continued to experience significant turbulence in more regularly. While the currency per se is stable, the underlying
December. While January began on a positive note, profit booking has implicit and explicit accords amongst its member countries are not.
continued to exert downward pressure on the indices. We expect a We do not expect a major blow-up amongst the Eurozone
moderate growth in the Indian equities in the present calendar year – countries. However the recurrence of sovereign debt concerns in
driven primarily by earnings growth since the P/E ratio of Indian equities Europe will continue to drag the global investor sentiment down.
is already quite high. Considerable earnings expectations have been That might be a constructive influence in face of the likely liquidity
upgraded in recent past. Hence the results can at best bring glut in the US and its bubble-prone impact on the asset markets
disappointments. We do not expect a major upward move on the basis around the world.
of the quarterly results. However the build-up of positive expectations Owing to the divergence of global economy and Indian economy in
before the budget can drive the valuations higher. terms of growth and its vigor, we believe Indian equities and gold
are likely to perform well in the years to come. Interestingly in
The inflation issue continues to haunt Indian economy. There is a recent past, gold has been negatively correlated with Indian
general consensus that the persistence of high headline inflation is equities in the periods of fall in equity markets, while in the good
driven mainly by runaway food inflation which itself is due to supply times, the correlation has been small and positive. A product
side constraints. There is wide anticipation of an interest rate hike by the combining Indian equities and gold is hence likely to do quite well
Reserve Bank of India in its monetary policy announcement on 25th in the next 2-3 years. We have launched one such product named
January. However we believe that RBI may take a stand that the Aries as part of our endeavor to bring world class products to
monetary tightening is unlikely to bring down food inflation in a direct Indian investors.
manner – thus rendering the tightening ineffective at best and damaging We expect several interesting opportunities to emerge in
for growth at worst. Long term bonds are a good bet on the high interest residential real estate space. There might be a correction in
rates prevalent in India. For one, the investors can lock in high yields residential real estate in parts of the country, creating low entry
which are unlikely to increase any further. If inflation worries subside points for long term investors. The correction however may not be
and RBI takes a more dovish stance on interest rates in the second half visible in the per square foot rate offered by the developers.
of 2011, long term yields will fall as well. In such a scenario long term Instead the discount in price may come as reduction or waiver of
bonds can provide capital appreciation in addition to high yields. additional costs associated with a property purchase. Hence
decisions to invest should be made on the basis of total purchase
price in Rupees rather than the per square foot rate.
“Advisory services are provided through Karvy Stock Broking Ltd. (PMS) having SEBI Registration No: INP000001512. Investments are subject to market risks. Please read the disclaimer on slide no.23” 3

4. 125
As on Change over Change over 120
Sensex
S&P 500
Nifty
Nikkei 225
Dec 31st 2010 last month last year 115
110
105
BSE Sensex 20,509 5.1% 17.4% 100
Equity S&P Nifty 6,134 4.6% 17.9% 95
90
markets S&P 500 1,257 6.5% 12.8% 85
80
Nikkei 225 10,229 2.9% (3.5%)
8.8
10 yr Gsec
8.3
10-yr G-Sec Yield 8.07% (13 bps) 39 bps 7.8
Debt markets Call Markets 5.75% 15 bps 240 bps 7.3
6.8
Fixed Deposit* 8.00% 100 bps 200 bps
21000
20000
19000
18000
Commodity RICI Index 3,896 7.8% 19.0% 17000 Gold
markets Gold (`/10gm) 20,575 0.4% 23.2% 16000
15000
Crude Oil ($/bbl) 93.52 8.0% 20.0%
48
47.5 `/$
47
Forex Rupee/Dollar 44.81 2.7% 3.7% 46.5
46
45.5
markets Yen/Dollar 81.15 3.1% 11.6% 45
44.5
44
Jul-10
Dec-09
Dec-10
Apr-10
Oct-10
Jan-10
Jun-10
Feb-10
Mar-10
Aug-10
Sep-10
Nov-10
May-10
* Indicates SBI one-year FD 4

5. • The Conference Board Consumer Confidence Index, which had improved in
November, decreased slightly in December. The Index now stands at 52.5,
US down from 54.3 in November. This indicated a tepid and cautious outlook
from the consumers.
• US m-o-m unemployment rate worsened to 9.8 per cent in Nov’10.
• Euro-zone purchasing managers index remained constant at 55.4 in December,
unchanged from November. Eurozone recovery remained on track as strong
Europe France-Germany core offset weakness elsewhere. Disparities further widened
as Service Job Index continued to rise in Germany and was at three month
high in France. On the other hand Italy, Spain & Ireland saw job losses.
• Unemployment rate in the Euro zone was steady at 10.1% in November.
• Japan’s industrial production increased by 1% in November showing increase
for the first time in six months, Transport equipment and Electronic parts &
Japan devices were the major contributors. The manufacturing PMI increased to 48.3
from 47.3 November but still indicated contraction in the Japanese markets.
• Japan’s unemployment rate was stagnant at 5.1% in Dec 10.
• The HSBC China Manufacturing Purchasing Managers Index, fell to 54.4 in
December from 55.3 in Nov. indicating increased manufacturing activity
Emerging albeit at a slower rate.
economies • China’s GDP is expected to rise 10% in 2010 (revised upwards from 9.5%)
accelerating from 9.1% in 2009. The economy grew at 11.9% in the first
quarter, 10.3% in the second quarter and 9.6% in the third quarter. 5

6. 20.0% IIP monthly data
18.0% • The GDP growth rate for Q2 FY11 came in at 8.9%
16.0% backed by a strong growth in services and
14.0%
12.0% agricultural output.
10.0%
8.0%
6.0% • The agriculture sector, which accounts for nearly
4.0% 17% of GDP, rose 4.4% and this offset the
moderation manufacturing sector growth, where
production went up by 9.8%. The services sector
too grew at 9.7% during July-September this year,
• Industrial output as measured by the Index of led mainly by finance and real estate as well as
Industrial Production (IIP) grew by 10.8% (y-o-y) trade, hotels, transport and communication
in October ‘10 as compared to 4.4% in
September ‘10 mainly on account of strong base • The Finance ministry is targeting FY11 growth at
effect and robust growth in the capital goods ~8.50% - 8.75% which may be revised upwards. We
sector. believe the current target is sustainable as we
• Growth in manufacturing, which constitutes expect manufacturing and service sectors to
around 80 per cent of the IIP saw growth rise continue to drive growth in the next few quarters.
back to 11.3% from a low of 4.5 per cent last
month.
10
• Capital goods showed a spectacular recovery at 9 GDP growth
8
22%, much higher than the 4% fall in September. 7
6
• We believe the growth will eventually moderate 5
out and may end lower than that seen in the first 4
part of the fiscal. FY09 (Q3) FY09 (Q4) FY10 (Q1) FY10(Q2) FY10(Q3) FY10(Q4) FY11(Q1) FY11(Q2)
6

7. Growth in credit & deposits of SCBs
25.0%
• Inflation as measured by WPI stood at 7.48%
23.0% Bank Credit Aggregate Deposits
(y-o-y) for the month of November -10 as
21.0%
19.0%
compared to 8.58% during October 10. These
17.0% figures are based on the new base year and
15.0%
13.0%
WPI list. The decline is due to the decline in
11.0% Food inflation from 14.1% in October to 9.4% in
9.0%
7.0%
November.
5.0%
Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10
• We expect WPI inflation numbers to moderate
in m-o-m inflation numbers due to the expected
• Bank credit growth increased in the month of decrease in food inflation and the monetary
November to 23.6% as compared to 20.4% in the tightening stance by RBI, but increasing Fuel
month of October 2010. prices may be a cause of worry.
• Growth of credit demand and tight liquidity has put 12.0%
Inflation
pressure on the banks to raise their deposit rates, 10.0%
hence shrinking their margins. The RBI has been
8.0%
intervening to provide adequate liquidity and more
6.0%
such interventions may be seen in the near future.
4.0%
• We expect credit growth to settle at ~20% levels in
2.0%
the coming quarters on the back of improving
business confidence and decline in risk aversion on 0.0% Jan-10
Mar-10
Jun-10
Oct-10
Apr-10
May-10
Aug-10
Nov-09
Feb-10
Jul-10
Sep-10
Nov-10
Dec-09
the part of banks. Increase in exposure to -2.0%
Infrastructure projects is also expected in the second
half of the fiscal. 7

8. Look west before going east
CY 2010 turned out to be a volatile year for equities. The Sensex started 2010 at 17,473, fell a bit in February, regained its previous level
in March, lost its footing for a while in May and then started to move up from June. The upward momentum started slowing in October
and after a brief high in November, it started losing some ground. Interestingly, the US dollar index started moving up from the middle of
January 2010 and continued its upward movement till it reached a peak in early June. Worry about the debt burdens and unsustainable
fiscal deficits in Greece and other countries of the European periphery was the reason for the strengthening dollar. After June, however,
the response of the European authorities appears to have satisfied the markets and the dollar index started to fall. This coincided with
the turnaround in the Sensex. Apart from a brief pause in August, the dollar index then fell all the way till early November. The weakness
this time seems to have been driven by expectations of a second round of quantitative easing (QE2) by the US Federal Reserve, which
was widely expected to lower interest rates further in the US, which in turn was expected to lead to money flowing out of the US into
non-dollar assets, thereby leading to a weaker dollar. Ironically, the dollar index reversed direction once again in early November, after
the announcement of QE2.
During the second half the US economy, long seen to be practically comatose, started exhibiting distinct signs of recovery. Leading
indicators started to improve, jobless claims started to show a downward trend, factory production rose and retail sales showed signs of
a turnaround. It was this new-found strength of the US economy that led to a stronger dollar and the trend was aided and abetted by
continuing problems in the euro area. The net result: the dollar index started moving up and the Sensex started moving down. The
correlation between the US dollar index and the Sensex is remarkable.
Indian economy – a robust performance
In the meanwhile, the Indian economy continued to perform well. Real gross domestic product (GDP) growth at factor cost was 8.6% in
the first Q1 CY10 and 8.9% in the succeeding two quarters. Sensex profit after tax growth shot up in the first quarter of the calendar
year and was moderately high in the next two quarters. But in spite of the GDP for the September quarter coming in much higher than
expected, it had little impact on the market. That suggests the driving force for the Indian market (and indeed for emerging markets), is
what happens to interest rates in the US. An IMF study points out that the single biggest factor accounting for returns in emerging
market equities is liquidity in the mature economies. 8

9. The other important trend at the end of the year, from India’s point of view, is the rise in commodity prices. The Reuters Jefferies CRB
index went down during H1CY10 and reached its January peak only in October. Since then, though, it has made a new high for the year
in December. Crude oil prices, in particular, are headed up. India being net importer of most of the commodities is vulnerable to this.
The outlook
At the end of 2010, the Indian equity market faces the prospect of higher commodity prices, demand-pull inflation pressures and
higher interest rates, while liquidity is being diverted to the US markets. And while earnings growth promises to be strong, the
favorable base effect is wearing off, while valuations continue to be reasonable, though not cheap. Going forward, the investors need
to be more discrete in stock-picking and more patient while riding the volatility. Only a growth in the earnings can be the next return
generator. The earnings for the index are expected to grow at higher teens and that would be a fair expectation from Indian equity
markets as well.
In the Indian markets, we should now focus more on corporate investment than domestic consumption, with analysts projecting a
rebound in the capital expenditure cycle that would lead to a change in the fortunes of infrastructure and capital goods sectors.
Challenges in the execution of infrastructure projects, however, remain a key issue and policy initiatives to tackle them might act as an
upside trigger for the market. Within consumption, the focus seems to be shifting from consumer staples to discretionary
consumption. Telecom —an underperformer for most of 2010—should deliver higher returns next year as the worst seems to be over
for the sector. Real estate might continue to be unattractive as bank loans for the sector slow.
FII & MF data • FIIs invested ` 2,050 Cr. in equities in the month of
25000.0 FII MF
20000.0 December. This was ` 16,243 Cr. lesser than last month and
15000.0 much lower than October which witnessed huge inflows in
10000.0 the Coal India IPO issue.
5000.0
0.0
• Mutual Funds invested around ` 1767 Cr. in the month of
-5000.0
-10000.0
December.
-15000.0
9

10. Sector Stance Remarks
We believe in a large sized opportunity presented by Pharma sector in India. India’s strength in
generics is difficult to replicate due to quality and quantity of available skilled manpower. With the
Highly
Healthcare developed world keen to cut healthcare costs, and a vast pipeline of drugs going off-patent, Indian
Overweight
pharma players are at the cusp of rapid growth. Here, we have taken exposure to medium-sized, non-
index ideas while trying to play on the opportunity in Generics and CRAMS.
The USD 1 trillion Infra opportunity is hard to ignore. Here, we have carefully taken Power sector as
our dominant bet over other sub sectors such as ports, roads and telecom infrastructure, because of
E&C Overweight favorable economics under PPP model. Within power, we focus on the engineering companies over
utilities, T&D and other infrastructure owners because of their superior profitability and better
competitive dynamics.
Financial sector is undeniably the lubricant for economic growth. Whether the growth comes from
consumption or investments, credit growth is inevitable. Being a well regulated sector, BFSI in India
BFSI Overweight
has good asset quality and capital adequacy ratios. This, when juxtaposed to the growth opportunity
available makes an attractive long term opportunity.
The exposure is in “discretionary consumption” beneficiaries such as Paints and branded food, as the
FMCG Neutral growth in this segment will disproportionately higher vis-à-vis the increase in disposable incomes. This
also provides a defensive posture to the portfolio.
Despite the regulatory hurdles, competitive pressures and leverage we believe in the mammoth
opportunity here, largely because of the continuing under-penetration of voice in rural markets and
Telecom Neutral
huge demand for data services in urban markets. 3G & BWA will make sure the revenues grow at
reasonable pace. Discretionary consumption again.
10

11. Sector Stance Remarks
Rich valuations, maturing growth and the menace of appreciating Rupee makes us little cautious
IT/ITES Underweight here. We have chosen to be with the bellwether stock here and believe we have better sectors to
look at.
We believe in the growth prospects here but raw material prices and raging competition
Automobiles Underweight indicates issues. The rich valuations don’t help either. We have taken a position in the
commercial vehicle segment as things are looking much better there.
Through a single company, we have taken a large-sized exposure to refinery and natural gas
exploration sector. The regulatory cap on RoE does not allow a vast value creation opportunity in
Energy Underweight the infrastructure owning companies. We have also purposely tried to stay away from PSUs, due
to issues of cross subsidization distorting the underlying economics of oil exploration and refinery
businesses.
India is not completely isolated from global slowdown. Commodity prices are an international
Metals Underweight issue. We have chosen to stay away with a cautious view to the global commodity cycle.
Cement demand will certainly grow over the next three years. But the issue is on the supply side.
Cement Negative
We do see an oversupply situation for the next 3-4 quarters.
We like power sector but believe that greater value will be created by engineering services
Power Utilities Negative providers. Utilities may be a more defensive play, but we have been defensive enough for the
time being.
11

12. • DELTA seeks to invest in a portfolio of mutual funds through a PMS route that aims to would provide higher returns than the
blended benchmark.
• The asset allocation between Debt and Equity would be done on the basis of the risk profile of the investor (conservative,
moderate or aggressive)
• There is further allocation into sub-asset classes depending on our views on the same
• The portfolio would be reviewed and rebalanced regularly to maintain the asset allocation and the right selection of funds
Asset Allocation for DELTA:
Asset Class DELTA Conservative DELTA Moderate DELTA Aggressive
Equity 43% 66% 82%
Debt 57% 34% 18%
12

13. 1 Year Since Inception (29/4/09)
Portfolios 6 Months (Absolute)
(Absolute) CAGR
Conservative 5.67% 9.09% 26.76%
Market Return Benchmark** 6.64% 9.89% 22.35%
Moderate 7.66% 11.55% 38.21%
Market Return Benchmark** 9.29% 12.64% 31.88%
Aggressive 8.67% 12.59% 46.13%
Market Return Benchmark** 10.78% 14.20% 38.62%
Absolute Return Benchmark 2.63% 6.00% 7.75%
Asset Class Benchmarks
Market Return Benchmark: Equity BSE 200
Market Return Benchmark: Debt CRISIL Composite Bond Fund Index
Absolute Return Benchmark SBI 1 year Fixed deposit rate
*(Returns as on 31st December 2010)
The performance specified is post management fee and all other expenses. The fixed fee model has been considered in all cases.
**The Market Return Benchmark is based on BSE 200 and Crisil Bond index, taken in the same proportion as the asset allocation of that variant 13

14. Minimum
Tenor
Scheme Name Type Open Date Close Date Investment
Amount (Rs.)
Reliance FHF-XVII-2 Debt 30-Dec-2010 05-Jan-2011 5000 367 Days
Birla SL FTP-CK Debt 30-Dec-2010 06-Jan-2011 5000 368 Days
DSP BlackRock FMP- 3M-Series-27 Debt 04-Jan-2011 06-Jan-2011 10000 3 Months
Birla Sun Life Short Term FMP-Series 4 Debt 05-Jan-2011 06-Jan-2011 5000 91 days
ICICI Pru FMP-53-6M-A Debt 28-Dec-2010 10-Jan-2011 5000 182 Days
IDFC Fixed Maturity Plan - Yearly Series 35 Debt 05-Jan-2011 10-Jan-2011 10000 1 Year
Principal Pnb FMP-367D-II Debt 30-Dec-2010 10-Jan-2011 5000 367 Days
BNP PARIBAS FIXED TERM FUND SERIES 20 A Debt 03-Jan-2011 11-Jan-2011 5000 370 Days
Kotak FMP Series 32 Debt 10-Jan-2011 11-Jan-2011 5000 370 Days
Religare FMP Sr-4 F Debt 07-Jan-2011 12-Jan-2011 5000 368 Days
Axis FTP - Series 11 Debt 03-Jan-2011 12-Jan-2011 5000 371 Days
ICICI Pru FMP Sr-53-1Yr-Plan E Debt 03-Jan-2011 12-Jan-2011 5000 1 Year
Fidelity Fixed Maturity Plan Series IV -
Debt 10-Jan-2011 12-Jan-2011 5000 368 Days
Plan F ( 368 days)
Birla Sun Life Fixed Term Plan-Series CL Debt 05-Jan-2011 13-Jan-2011 5000 368 days
ICICI Pru FMP Sr-53-1Yr-Plan F Debt 05-Jan-2011 18-Jan-2011 5000 1 Year
14

15. 8.8 Yield curve
8.6 • The benchmark 10 yr G-sec yield decreased
8.4 from 8.19% in the month of November to close
8.2 at around 8.07% in December.
8.0
7.8
• Though RBI is expected to increase the policy
7.6
7.4
rates in its upcoming review, we believe that RBI
7.2 may take a stand that the monetary tightening is
7.0 unlikely to bring down food inflation in a direct
(%)
manner – thus rendering the tightening
2.9
10.6
0.0
1.0
1.9
3.9
4.8
5.8
6.7
7.7
8.6
9.6
11.5
12.5
13.4
14.4
15.4
16.3
17.3
18.2
19.2
ineffective at best and damaging for growth at
worst.
• We expect yields at the longer end of the yield
curve to remain stable. High inflation, monetary 8.4
tightening and rising credit growth will keep the 8.2 10-yr G-sec yield
yields at the longer end range bound. 8
7.8
• The 10 year G Sec yields are currently around 7.6
8.07%. If the inflation continues to be high, there 7.4
7.2
may be another increase in the interest rates but 7
not one in the immediate future. The yields will 6.8
stabilize around 7.5 – 8.5% levels by year end.
15

16. Category Outlook Details
We recommend short term bond funds with a 6-12 month
investment horizon as we expect them to deliver superior
Short Tenure returns due to high YTM and concerns over credit quality ease
Debt as the economy recovers, thereby prompting ratings upgrade.
We have seen the short term yields harden due to reduced
liquidity in the market and hence Short term bond funds and
FMPs provide an interesting investment option in this space.
Positive economic climate has reduced credit risks without a
commensurate decrease in credit spreads. Some AA and select
Credit A rated securities are very attractive at the current yields. A
similar trend can be seen in the Fixed Deposits also. Tight
liquidity in the system has also contributed to widening of the
spreads making entry at current levels attractive.
We expect this to be the peaking of the yields at the longer end
of the yield curve. Yields may move to the broad range of 7.5–
Long Tenure 8.5% in the next few quarters. As the inflationary pressure
Debt settles down towards the end of the fiscal, these may be an
attractive investment. We recommend gradual entry into long
tenor debt.
16

17. Objective:
• To invest in a portfolio of High Yielding Securities
Investment Rationale:
• The strategy of this portfolio is to invest in lower rated higher yielding securities. We believe that the risk-adjusted returns for
such bonds are currently very attractive. We would be actively monitoring these bonds, thereby selecting the ones which are
relatively safer and offering higher returns.
Fund manager K.P. Jeewan
Vehicle The investments will be made through the PMS structure
Target Returns 11% - 13%
Minimum returns expected 8% - 9%
Risks Interest Rate Risk and Liquidity Risk (No credit risk since all investments are in Sovereign/
Quasi Sovereign Instruments.)
Minimum investment Rs. 50,00,000
Entry Load NIL
Exit Load NIL; (If withdrawal is earlier than 12m, full years management fee will be charged on the
funds or securities withdrawn)
Management Fee 0.5% p.a.
Profit Sharing 10% p.a. of incremental gains beyond 8% p.a.
17

18. Basic Theme
OMEGA is a multi-asset portfolio that seeks to invest in Equity, Debt and Gold through a PMS route, and aims to provide higher returns
than the blended benchmark. The asset allocation is done on the basis of the risk profile of the investor (conservative, moderate or
aggressive). There is further allocation into sub-asset classes depending on our views on the same. The portfolio would be reviewed and
rebalanced regularly to maintain the asset allocation and the right selection of products. Our Product Universe is as follows:
Equity - Direct Equity, Mutual Funds, Exchange Traded Funds, Equity linked debentures
Debt - Mutual Funds, Exchange Traded Funds, Bonds, Non Convertible Debentures
Gold - Exchange Traded Funds, Gold Linked Debentures
Fund Manager: Swapnil Pawar Performance* (31st December 2010)
Swapnil is the head of products and investments Portfolios 6 M (Abs.) 1 Y (Abs.) Since 29/4/09 (CAGR)
at Karvy Private Wealth. He has completed his Conservative 7.38% 11.47% 26.66%
MBA from IIM Ahmedabad and a B.Tech in Market Return Benchmark** 7.16% 11.75% 22.33%
Aerospace Engineering from IIT Bombay. He was Moderate 8.45% 12.31% 36.59%
a co-founder of PARK Financial Advisors. Prior to Market Return Benchmark** 9.05% 13.27% 31.38%
Aggressive 8.81% 12.58% 42.35%
that, Swapnil worked with The Boston Consulting
Market Return Benchmark** 10.67% 14.92% 37.46%
Group (BCG), Mumbai, across various industries
Absolute Return Benchmark 5.25% 6.00% 7.75%
including retail banking services.
*Portfolio performance is net of all fees and expenses. The fixed fee model is assumed for management fee in all cases.
**The Market Return Benchmark is based on BSE 200, Crisil Bond index and Mumbai Spot Gold Prices taken in the same
proportion as the asset allocation of that variant
18

19. Rupee movement vis-à-vis other currencies (M-o-M) Trade balance and export-import data
4.0% 80 0
Export Import Trade Balance (mn $)
3.5% -2000
60
-4000
3.0% 40 -6000
2.5% 20 -8000
2.0% -10000
0
1.5% -12000
-20 -14000
1.0%
0.5%
0.0%
• Exports for the month of October increased by 26.5%
-0.5% USD GBP EURO YEN
-1.0%
(y-o-y) while imports increased by 11.2% reducing the
trade deficit to USD 8.9 bn.
•The Rupee strongly appreciated v/s the US dollar & GBP in 140000
Capital Account Balance
the month of December but marginally depreciated against 90000
the Yen on account of pick-up in Japanese economy.
40000
• US dollar faced selling pressure on dollar by exporters and
-10000
Banks. FY 09 (Q3) FY 09 (Q4) FY 10 (Q1) FY 10 (Q2) FY 10 (Q3) FY 10 (Q4) FY 11 (Q1) FY 11 (Q2)
-60000
•We expect the Rupee to remain volatile in the next month
with no clear direction. Higher interest rates in India would • Capital account balance continues to be positive through
attract large capital inflows putting an upward pressure on FY11 and stands at `1,79,02958 Cr. for the Q1 & Q2.
the Rupee while increase in the Current account deficit would • We expect the capital account balance to remain positive
put a downward pressure on the Rupee. Hence, a clear trend as higher interest rates would make investment in the
might not be seen. Indian markets attractive hence drawing investments into
the market.
1

20. 21000
Seasonally gold will be stronger in 4QCY till mid-January. Gold
20000
Hence, gold is expected to plateau in the near future. Further, 19000
we expect dollar index to be stronger in the near future and 18000
Precious 17000
the consequences of which due to reversal of carry trade
Metals positions shall have a wide spread correction across all asset
16000
15000
classes and commodities as an asset classes will tend to correct
May-10
Jan-10
Feb-10
Mar-10
Sep-10
Dec-09
Apr-10
Jun-10
Aug-10
Dec-10
Oct-10
Nov-10
Jul-10
early.
95
90
Crude
We expect crude oil may continue to have an uptrend given 85
the expectation of reviving US economy and the ongoing high 80
75
Oil & Gas intensity winter across the US and Europe. Although a sharp
70
fall is not expected, any upside surprise on the dollar index will
65
take a toll on the energy market as well.
60
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
09 10 10 10 10 10 10 10 10 10 10 10 10
2

21. Aries – India’s First Multi Asset structured Products
Tenor 36/40 months
Issuer Karvy Financial Services Limited
Reference Index S&P CNX Nifty Index | Benchmark Gold ETF– GoldBeEs
Initial Fixing Level Reference Index levels on DDA
Final Fixing Level Reference Index levels on DDA+36M
Nifty Performance {Final Level / Initial Level}-1
Outcomes at Maturity
Gold Performance Note Return / Initial Level}-1
{Final Level
Principal Protection 100%
Participation Rate 110%
Basket Performance 60% of Nifty Performance + 40% of Gold Performance
Payoff Max{0%,PR * Basket Performance}
Minimum Investment Amount Rs.5,00,000 and in multiples of Rs.1,00,000
Placement Charges 3%+10.30% service tax on placement charges
This example is for illustrative purpose only and does not constitute a guaranteed return or performance.
21

22. Leveraging breadth of related businesses that KARVY is in
KARVY is an integrated financial services group, with Karvy Private Wealth being one of its arms. The entire
group’s strengths are leveraged to provide end-to-end wealth advice to Karvy Private Wealth clients. For
example, SME clients can receive advice on their personal wealth while also getting investment banking advice
from the I-banking arm of Karvy.
Maximum choice of products & services
KARVY Private Wealth offers the widest breadth of products and services, providing clients a variety of options
through a single contact. Products and services include equities, debt instruments, commodities, Mutual Funds,
Insurance, Structured Products, Financial Planning, real estate advice, etc.
Product-neutral advice
We ensure that our recommendations are 100% product-neutral and unbiased because unlike other players,
we are neither tied up with any one particular insurance company nor do we have our own mutual funds.
All-India presence
Set to have business in 20 - 25 cities we are poised to cater to families and businesses spread across multiple
cities in India providing them with combined and integrated advice. For one-off services, if required, we can
also leverage KARVY Group’s presence in 400 cities.
22

23. The information and views presented here are prepared by Karvy Private Wealth or other Karvy Group companies. The
information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch
for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss
incurred based upon it.
The investments discussed or recommended here may not be suitable for all investors. Investors must make their own
investment decisions based on their specific investment objectives and financial position and using such independent advice,
as they believe necessary. While acting upon any information or analysis mentioned here, investors may please note that
neither Karvy nor any person connected with any associated companies of Karvy accepts any liability arising from the use of
this information and views mentioned here.
The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above-mentioned
companies from time to time. Every employee of Karvy and its associated companies are required to disclose their individual
stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment
recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has
either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only
through Karvy Stock Broking Ltd.
The information given in this document on tax are for guidance only, and should not be construed as tax advice. Investors are
advised to consult their respective tax advisers to understand the specific tax incidence applicable to them. We also expect
significant changes in the tax laws once the new Direct Tax Code is in force – this could change the applicability and incidence
of tax on investments
23

24. Bangalore 080-26606126
Chennai 044-45925925
Delhi 011-43533941
Goa 0832-2731822
Hyderabad 040-44507282
Kochi 0484-2322723
Kolkata 033-40515100
Mumbai 022-33055000
Pune 020-30116238
Email: wealth@karvy.com SMS: ‘HNI’ to 56767 Website: www.karvywealth.com
Corporate Office : 702, Hallmark Business Plaza, Off Bandra Kurla Complex, Bandra (East), Mumbai – 400 051
24