OVERVIEW

International financial scenario has not been changed yet, but capital market has
started stabilising.

Indian scenario as mentioned earlier is improving. This is evident from the latest IIP
data.

In view of the above, sectors such as automobile, cement, steel, construction, heavy
earth moving equipments, tractor, power, power distribution and ancillaries, banking
are looking attractive for medium to long term investment. Investors having risk
appetite, may slowly invest into textile and its finished products sector for longer
term.

Importance of infrastructure on Indian economy

In face of the global financial crisis and the economic downturn, infrastructure sector
plays an important role to counter balance against slowing economic activity and
lower consumption. In India the infrastructure sector currently accounts for 26.7%
of India’s industrial output and thus remains a useful tool to balance the economy.
Moreover infrastructure is the lifeline of any business activity, proper infrastructure
increases business activity manifold. In India, out of the proposed 31,755 km by the
National Highways Development Programme, completion achieved is just 28 percent
or 9,165 km, even if this project is to be completed by 2012, there will be huge
opportunity for companies engaged in highway building sector.

According to Assocham-Ernst & Young - Infrastructure, including roads, power,

highways, airports, ports and railways, have emerged as an asset class with long-
term growth that can provide relatively stable returns to investors.

In terms of investment attractiveness in the future, the joint study has ranked power
as the most sought after segment among respondents for investment in the future
(83%), followed by roads and highways (72%), ports and logistics (66%), rail
(45%), airports (43%) and shipping (35%). An interesting segment identified as
offering a strong growth potential was urban infrastructure, especially areas such as
water management, waste-water management, sewerage system and solid waste
management. The survey conclude that if government can overcome regulatory
procedures, delays in project implementation and several unplanned cost escalation
create then Infrastructure industry as a whole has a great potential in India.

Hazy outlook for the shipping sector for next 12-18 months
Shipping Corporation of India (SCI), Great Eastern Shipping and other lines will
remain in troubled waters for at least another year as global trade slumps with
consumers in developed markets cutting down on
spending due to job losses and a surge in number of
ships sailing in global waters, industry officials say.
The shipping industry has been hurt by the collapse of
global trade because of credit crisis with freight rates
last year plunging as much as 94% in a matter of 8
months, leaving companies in deep losses and forcing
some to cancel orders for new ships. India’s exports
have fallen for 12 straight months and any recovery in
higher prices for transportation is far away as
shipyards are expected to deliver nearly 37% percent of the current capacity in the
months ahead pressuring freight rates.

The Baltic Dry Index (BDI), which was at a peak of 11,793 in May 2008, fell to as
low as 663 by December, but has since recovered to 3,103, still down 74% from the
peak and showing little signs of getting back to good old with companies trimming
investments and individuals reducing spending. BDI tracks world-wide international
shipping prices of various dry bulk cargoes.

Car sales grown 33.88%, Bajaj auto in ultra small car

Domestic passenger car sales have recorded 33.88 per cent increase at 1,32,615
units in October from 99,052 units in the same month last year. According to the
figures released by the Society of Indian Automobile Manufacturers (SIAM),
motorcycle sales in the country during the month was also up 14.22 per cent to
6,11,828 units from 5,35,642 units in the corresponding month last year.

Following trend of Nano, Bajaj Auto is on its way of entering ultra small car Segment.
They have resolved their differences with Nissan-Renault and are set to announce
the details of the proposed joint venture for making the ultra low-cost car.

Company News

Infosys BPO Ltd, the business process outsourcing arm of Infosys Technologies,
announced that the company has signed a definite agreement to acquire all of the
outstanding interests of US-based business process solutions provider McCamish
Systems LLC.
Opto Circuits India Ltd was ranked among Forbes’ Asia’s 200 Best Under a Billion
companies for the second consecutive year. Opto Circuits is among the leading
Indian companies that develop, manufacture and market medical devices for global
markets.
Venus Remedies Ltd has bagged its third product patent in South Africa from
CIPRO (Companies and Intellectual Property Registration Office) for Potentox after
Sulbactomax and Tobracef. Potentox is a unique super speciality product with a
combination of a Cephalosporin with Aminoglycoside recommended for the treatment
of hospital acquired pneumonia and community acquired pneumonia and Febrile
Neutropenia. According to the company, this is the fifth product patent achieved by
Venus Remedies in the current year.

Economy
Industrial production grew 9.1 per cent in September, higher than the 6.03 per cent
growth recorded in the same month last year, the latest official data show.

FDI inflows slowdown to $1.5 bn in September’09. In first half though, total FDI
inflows at $17.7 bn is still higher than last year’s levels($17.2 bn). Also, FDI inflows
in H1’09-10, ended up being higher than FII inflows of $15 bn during period.

ECONOMIC INDICATOR
Rupee/Us dollar 46.56
Nymex oil ($) 76.83