CURRENCY VIEW

NEWS UPDATE :
Pound Extends Decline After U.K. Unemployment Data, BOE Minutes
The pound fell to a one-month low against the euro after a government report showed U.K. unemployment rose and wage increases slowed, adding to evidence the economy is weakening.
Sterling also dropped against the dollar as minutes of the Bank of England’s April 3-4 meeting showed policy makers grappled with a “trade-off between output growth and inflation” before leaving monetary policy unchanged. The International Monetary Fund cut its forecast for the U.K. economy yesterday and suggested the government and the central bank should increase stimulus to boost the recovery.
The pound fell 0.7 percent to 86.37 pence per euro at 10:28 a.m. London time after depreciating to 86.25 pence, the weakest since March 15. The currency dropped 0.6 percent to $1.5267.
Joblessness as measured by International Labour Organisation methods rose by 70,000 to 2.56 million in the three months through February, the most since November 2011, the Office for National Statistics said. The unemployment rate climbed to 7.9 percent from 7.8 percent in the previous quarter.

NIFTY OPTION CALL

BUY 5600 PUT OF NIFTY APRIL BETWEEN RS.9/RS.8/RS.11

FOR TARGETS RS19 TO RS24 AND TARGET BEFORE EXPIRY RS.28 TO RS.47

5 DAYS MARKET REVIEW AND UPDATE

(11/04/2013 to 17/04/2013)
	ECOSCOPE: Mar-13 WPI at 40-month low of 6%; Core inflation at 3.5%; expect 25bp cut in both Repo and CRR in May 3 policy
	16 April 2013
	METALS: Steel | WSA cuts demand growth rates; stocks down 30-40% from 52-week high; Buy NMDC; Sell Tata Steel, SAIL, JSP & JSW Steel
	17 April 2013
	METALS WEEKLY: Steel prices remain subdued; Iron ore up 4% WoW on Chinese restocking
	16 April 2013
	L&T: L&T-IDPL top’s NHAI’s CY13 pre-qualification list; Number of enlisted players halve, competitive intensity easing BUY
	17 April 2013
	Reliance 4QFY13: EBIT below est; Higher other income/lower depr. brings PAT in-line; meaningful earnings contribution from new capex from FY16/17 NEUTRAL
	17 April 2013
	DB CORP: Well-positioned despite moderate growth environment Strong sales and content strategy to help consolidate market leadership BUY
	17 April 2013
	JAYPEE INFRATECH: Gearing to decline by 30% over the next 12-18 months; Limiting capex; focusing on delivery at Noida and monetization at Parcel-3 BUY
	17 April 2013
	NESTLE INDIA: Annual Report Update | Lowest volume growth in a decade; highest FCF generation; Valuations rich amidst muted volume growth NEUTRAL
	16 April 2013
	INFOSYS 4QFY13: Disappoints; Weak revenue guidance and no earnings outlook amid citations of pricing pressure; Cutting estimates BUY
	15 April 2013
	SUN TV NETWORK: Top digitization pick; Digitization upside of ~INR160/sh; incorporating 50% into target price BUY
	15 April 2013
	BPCL: Entering into next investment phase; positive on sectoral reforms BUY
	11 April 2013

CURRENCY VIEW

Major Forex News
Pound Falls Against Euro as Inflation Stays Above BOE’s Target
The pound fell toward a three-week low against the euro after a report showed consumer-price inflation stayed above the Bank of England’s target at the same time as growth stagnates.
U.K. government bonds fell for the first time in four days after the Office for National Statistics said the annual inflation rate was 2.8 percent last month, unchanged from the previous month. The government in March loosened the Bank of England’s remit to give it greater flexibility to keep adding stimulus even if inflation remains above its 2 percent target.
The pound weakened 0.2 percent to 85.45 pence per euro at 10:49 a.m. London time after depreciating to 85.60 pence on April 10, the weakest level since March 25. The U.K. currency was little changed at $1.5307.
Core inflation, which excludes alcohol, tobacco, food and energy prices, accelerated to 2.4 percent in March from 2.3 percent in February. The Retail Prices Index, used as a basis for the inflation-linked bond market, was 3.3 percent, up from 3.2 percent in February.