Hi Hardeep,
No that's not the right client tools install (though it may include the right bits as well as stuff you don't need, of course.
The documents you want to look at are:
Note 1676665 (Setting Up Microsoft SQL Server 2012) - there's not much there that's relevant to your situation, but it points to the path for the main install documentation
and the SQL Server Upgrade/Installation Guide for 2012 at:
http://service.sap.com/instguides -> Database Upgrades -> MS SQL Server
In that you'll find the information you need for doing the SQL Server install manually with *just* the required components SAP needs (section 4.2) and also the Native Client install for the application server (section 4.4).
I'd do the SQL Server install manually before running sapinst.exe for the database part of the distributed system install. And, obviously, you'll need to do the Native Client install on the other server before you run that phase as well.
