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     16th February 2010
                                                  MORNING MANTRA (METALS & ENERGY)

                           NEWS ROUND UP
               o     The Bank of Japan will probably refrain from easing monetary policy further at a board meeting this week because
                     the recovery remains intact even as deflation intensifies, economists said.
               o     European finance ministers are prepared to impose deeper deficit cuts on Greece and refused to say how they
                     would make good on a pledge to rescue the nation if it can’t finance its debt.
               o     Gold gained for a second day on speculation the dollar may weaken as investors await the measures the European
                     Union may take to rescue debt-laden Greece.
               o     Copper climbed in London as accelerating growth in Japan, the world’s fourth-largest consumer of the metal, may
                     support demand for metals.

                            MOVEMENTS IN INTERNATIONAL EXCHANGES AS ON 12 February 2010

                     COMMODITY             EXCHANGE          CONTRACT                  UNIT                CLOSING       %CHANGE
                     GOLD                     COMEX               APR          USD/TROY OUNCE              1,090.00           -0.43
                     SILVER                   COMEX               MAR             USD/OUNCE                 15.447            -0.92
                     PLATINUM                 COMEX               FEB          USD/TROY OUNCE              1,507.30           -0.54
                     BASE METALS
                     COPPER                   COMEX               MAR              USD/POUND                3.0825            -1.63
                     ZINC                       SHFE              MAY             YUAN/TONNE               18345.00           1.49
                     COPPER                     SHFE              MAY             YUAN/TONNE               56410.00           1.84
                     ALUMINIUM                  SHFE              MAY             YUAN/TONNE               16825.00           1.11
                     LME *
                     COPPER                     LME           3 MONTHS             USD/TONNE               6855.00            1.18
                     ALUMINIUM                  LME           3 MONTHS             USD/TONNE               2066.00            1.55
                     ZINC                       LME           3 MONTHS             USD/TONNE               2200.00            3.29
                     LEAD                       LME           3 MONTHS             USD/TONNE               2150.00            2.38
                     NICKEL                     LME           3 MONTHS             USD/TONNE               19070.00           3.08
                     TIN                        LME           3 MONTHS             USD/TONNE               16425.00           1.42
                     CRUDE OIL                NYMEX               MAR             USD/BARREL                74.13             -1.53
                     NATURAL GAS              NYMEX               MAR             USD/MMBTU                 5.468             1.33
                     CURRENCY                                                              CLOSING
                     DOLLAR INDEX (MAR)                                       80.41                                   0.39
                     EURO/ USD (MAR)                                         1.36145                                  -0.53

                     * Closing as on 15.02.10
                   MOVEMENTS IN MCX AND NCDEX AS ON 15 February 2010

COMMODITY           EXCHANGE         CONTRACT                  UNIT               CLOSING         % CHANGE
GOLD                      MCX            APR              INR / 10 GM              16605            0.62
SILVER                    MCX            MAR               INR /1KG                24529            0.29
COPPER                    MCX             FEB              INR /1KG                317.70           0.89
ALUMINIUM                 MCX             FEB              INR /1KG                94.60            -0.05
ZINC                      MCX             FEB              INR /1KG                101.80           1.39
LEAD                      MCX             FEB              INR/1KG                 101.25           3.11
NICKEL                    MCX             FEB              INR /1KG                893.90           3.76
                          NCDEX           FEB               INR /MT                317.70           -2.50
CRUDE OIL                 MCX             FEB           INR /1BARREL               3432             -0.03
NATURAL GAS               MCX             FEB            INR /1MMBTU               254.20           0.08
CURRENCY                                                          CLOSING                         % CHANGE
INR/ 1 DOLLAR MCX (FEB. CONTRACT)                                     46.34                         -0.41
INR/ 1 EURO       (RBI REFERENCE RATE)                                63.00                         -1.59


                                  CLOSING STOCK                         LME
           COMMODITY                                       +/-                      CANCELLED
                                     POSITION                         WARRANT

                 Copper                 549125            1350         532500          16625

               Aluminium               4550025           -5775        4276625          273400
                  Nickel                165084            -378         159696              5388
                   Zinc                 499825             0           495700              4125

                  Lead                  159200            -25          144800          14400

                    Tin                 26215             -190          24500              1715

       Note:          LME WARRANT: - A document of possession, issued by the warehouse company,
       for each lot of LME approved metal held within an LME approved facility. Warrants are used as the
       means of delivering metal under LME contracts.
       LME CANCELLED WARRANT: - Change in stockpiles of metal, which may no longer be available
       at warehouses and is booked for removal or onward shipment. This information is a valuable
       indicator of consumption trends, which in turn can provide valuable information in price trends.
                           Yesterday results of key U.S economic releases

                       Indicator                       Period         Forecast       Previous         Actual

                            -                              -               -              -               -

                            -                              -               -              -               -

                                                   Market Update

Gold prices held steady above $1,100 per ounce on Tuesday as investors remained risk averse on concern about
Greece's fiscal crisis, but trading was subdued with many Asian players away for the Chinese new year. There were few
market participants in Asia as many markets were closed for the Lunar New Year holiday, meaning price moves were
exaggerated. Hong Kong and Singapore markets resume trading on Wednesday, but markets in mainland China will be
closed until next Monday. Investment flows were slow, with holdings at the world's largest gold-backed exchange-traded
fund, SPDR Gold Trust unchanged at 1,106.378 tonnes as of Feb. 15. The holdings have remained steady since Feb. 5.

U.S. crude futures were steady above $74 a barrel on Tuesday in thin trade, with much of Asia still off for the Lunar New
Year, following public holidays in the United States and Asia the previous day. There was no settlement price on
Monday because the New York Mercantile Exchange was closed for the U.S. President's Day holiday. Oil is likely to
hold in its current price range during today session, although some upward movement could be possible in later part of
the day.
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Rajesh Jain                          Head (Research)

        Fundamental Research
Saurabh Jain                         Team Leader                      
Saurabh Rana                         Team Leader                      
Priyanka Ahluwalia                   Sr. Research Analyst             
Jaisheel Garg                        Sr. Research Analyst             
Manish Choudhary                     Sr. Research Analyst             
Ankita Nanda                         Research Analyst                 
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Technical Research (Commodity / Equity)
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        Derivative Research
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        Commodity/Currency Research Team
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              Morning Mantra – Commodities (Metals and
              Energy)                                                 DGCX Daily Commodity Watch
              Morning Mantra – Commodities (Agri)                     Derivative Daily
              Daily Currency Report                                   Mutual Fund Weekly Update
              Evening Buzzer – Equity                                 Currency Afternoon Buzzer
              Evening Buzzer – Commodities                            Daily Metal and Energy Report
              Mutual Fund Portfolio Monitor                           Daily Commodity Hindi Reports
              Weekly Report covering major stocks with their short term, medium term and long-term trends
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