NAVindia

� The index of industrial production, or IIP, rose 5.6% in May from a year ago. Manufacturing accounts for about 75.5% overall industrial output. Eight of the 22 manufacturing sectors reported a contraction in output during the month. Production of capital goods, an indicator of investment activity, expanded only 5.9% in May, against 7.3% in the previous month, while that of consumer durables rose 5.2%, compared with 3.7% in April

� Headline inflation eased to its eight-month low at 9.22 per cent in July from 9.44 per cent. The non-food category in primary articles recorded a drop to 15.51 per cent in July from 18.57 per cent in June. The fuel and power category also observed a falling trend, from 12.85 per cent to 12.05 per cent in July.

� Month to date, the economy has seen FII outflows of approx. USD 1bn from equities, while the YTD inflows have been approx. USD 1bn.

Outlook

� The markets have corrected further, down 3% over the last two weeks taking cues from the global news flows. Calendar YTD the Indian market is down 18%

� Inflation continues to be at elevated levels, though the softening of commodities and crude oil to help the situation going forward � First quarter results have come below estimates at 14% for the quarter ending June 2011

� YTD FII inflows have been USD 1 bn

� FDI was the strongest during the quarter (June numbers up 310% to $5.68 bn

� With this correction, the markets are now trading at less than 14x FY12 earnings which looks attractive

� Fall in global commodities on fears of US and Euro zone recession could benefit India

� IIP data for June was strong at 8.8% vs. 5.9% in May

� With this correction, India's relative valuation is in line with the other emerging markets. It has come down from 35% to 20%

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We Expect Liquidity to Worsen Due To Festival Related Withdrawals (Mutual Funds - From the Fund Managers Desk 24-Aug)
DSP BlackRock MF Declares Dividend For FMP-3M- Series 36 (Mutual Funds - Reports 22-Aug)
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DSP BlackRock MF Unveils Two Fixed Maturity Plans (Mutual Funds - Reports 18-Aug)
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DSP BlackRock Savings Manager Fund to Be Renamed as DSP BlackRock MIP Fund (Mutual Funds - Reports 11-Aug)
DSP BlackRock MF Unveils Three Fixed Maturity Plan (Mutual Funds - Reports 10-Aug)
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	Recent correction in the price of Gold has not dented the value of Gold in the minds of investors (21-May)
	Expect the ten year G-sec benchmark trading between 7.50% to 7.80% band (20-May)
	BNP Paribas Mutual Fund remains overweight on Pharmaceuticals, Utilities, Telecom Services and Auto Ancillaries (16-May)
	Sensex at close to previous highs, but valuations significantly cheaper now-Kotak Mutual Fund (16-May)
	Long Term Bond Yields Will Trend Lower As Near Term Data Points Would Be Favorable (15-May)
	The point is that investors should see the value being offered by the market and not the absolute level of the market (13-May)
	Recent fall in global commodity prices augurs well for the short term (13-May)
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