EQUITY DAILY REPORT 13Th May, 2020

EQUITY DAILY REPORT 13th May, 2020

Index Chart Market Wrap Up

● Key equity indices ended with strong gains as PM Modi's Rs 20 lakh crore economic stimulus package boosted investor sentiment. The S&P BSE Sensex jumped 637.49 points or 2.03% at 32,008.61. The Nifty 50 index gained 187 points or 2.03% at 9,383.55.

● The BSE Mid-Cap index rose 1.49% and the BSE Small-Cap index added 1.97%.

● Among the sectoral indices on the BSE, the CG index (up 5.08%), the S&P BSE Industrials index (up 3.98%) and the Bankex (up 3.88%) outperformed the S&P BSE Sensex. Meanwhile, the Healthcare index (down 0.82%), the FMCG index (down 0.61%) and the Telecom index (down 0.09%) underperformed the S&P BSE Sensex.

(Source: Capitaline Market Commentary)

Derivative Watch

● Nifty May series futures witnessed a fresh long position build up. Open Interest has been increased (Source: Bloomberg) by 901 contracts at the end of the day. Long position build up for the May series has been Indian Markets witnessed in RELIANCE, LT, BHEL, SBIN, HDFC, INFY. Indices Close Previous Change(%) NIFTY 50 9383.55 9196.55 2.03% ● Short position build up for the May series has been S&P BSE SENSEX 32008.61 31371.12 2.03% witnessed in BHARTIARTL, CESC, BERGEPAINT. NIFTY MID100 13064.00 12771.30 2.29% ● Short position build up for the May series has been NIFTY SML100 3975.70 3878.85 2.50% witnessed in ICICIBANK, HDFCBANK, MINDTREE. (Source: NSE, BSE) (Source: Capitaline F&O) Sectoral Indices Indices Close Previous Change(%) NIFTY BANK 19634.95 18862.85 4.09%

NIFTY AUTO 5844.60 5708.95 2.38%

NIFTY FMCG 26746.50 26857.15 -0.41% Corporate News NIFTY IT 13776.95 13687.75 0.65% ● Maruti Suzuki declared its March quarter profit of Rs NIFTY METAL 1760.60 1717.55 2.51% 1,291.7 crore, down by 28.1% YoY. The company had NIFTY PHARMA 9147.75 9246.65 -1.07% reported a profit of Rs 1,795.6 crore for March quarter NIFTY REALTY 178.40 172.45 3.45% previous year. Revenue from operations for the March BSE CG 11692.92 11127.86 5.08% quarter declined 15.2% year-on-year to Rs 18,198.7 BSE CD 18608.31 18397.58 1.15% crore as sales volumes slipped 16% to 3.85 lakh vehicles BSE OIL & GAS 11434.29 11298.82 1.20% compared to same period last year. BSE POWER 1468.36 1430.27 2.66% ● Godrej Consumer Products Ltd reported an over 75% (Source: NSE, BSE) drop in its consolidated net profit at Rs 229.90 crore in the fourth quarter ended March 2020. The company had posted a net profit of Rs 935.24 crore in the Asia Pacific Markets January-March quarter a year ago. Its net sales were down 12.22% to Rs 2,132.69 crore during the quarter Indices Close Previous Change (%) under review as against Rs 2,429.68 crore in the Nikkei225 20267.05 20366.48 -0.49% corresponding period of the last fiscal. HangSeng 24180.30 24245.68 -0.27% Straits Times 2572.01 2587.81 -0.61% ● Kotak Mahindra Bank posted consolidated NII at Rs Shanghai 2898.05 2891.56 0.22% 4,633.19 crore in March 2020 up 15.8% from Rs. 4001.02 Kospi 1940.42 1922.17 0.95% crore in March 2019. Net profit at Rs. 1,905.18 crore in Jakarta 4554.36 4588.73 -0.75% March 2020 down 6.53% from Rs. 2,038.27 crore in Taiwan 10938.27 10879.47 0.54% March 2019. KLSE Composite 1397.13 1379.93 1.25% All Ordinaries 5513.70 5497.30 0.30% ● Sterlite Technologies posted consolidated net sales at Rs 1,160.06 crore in March 2020 down 35.23% from Rs. (Source: Yahoo Finance) 1,791.16 crore in March 2019. Net profit at Rs. 80.33 crore in March 2020 down 51.37% from Rs. 165.17 crore in March 2019.

Exchange Turnover (Crores) ● Sonata Software posted net sales at Rs 928.68 crore in Market Current Previous March 2020 up 11.15% from Rs. 835.55 crore in March NSE Cash 57602.65 53128.40 2019. Net profit at Rs. 61.79 crore in March 2020 down NSE F&O 1180265.29 1073997.01 5.45% from Rs. 65.35 crore in March 2019.

(Source: NSE) ● Havells India posted consolidated net sales at Rs 2,217.44 crore in March 2020 down 19.51% from Rs. 2,754.77 crore in March 2019. Net profit at Rs. 177.73 crore in March 2020 down 10.67% from Rs. 198.96 crore FII Activities (Crores) in March 2019. ACTIVITIES Cash NET BUY - ● ADF Foods Industries posted consolidated net sales at NET SELL 283.43 Rs 79.72 crore in March 2020 up 24.4% from Rs. 64.09 crore in March 2019. Net Profit at Rs. 13.31 crore in (Source: NSE) March 2020 up 320.29% from Rs. 3.17 crore in March 2019.

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● Cipla Limited has announced that it has signed a Top Gainers non-exclusive licensing agreement with Gilead Sciences, SCRIP NAME Close Previous Change (%) Inc for the manufacturing and distribution of the AXISBANK 414.00 386.85 7.02% investigational medicine Remdesivir, which has been ZEEL 165.15 155.05 6.51% issued an Emergency Use Authorization (EUA) by the US ADANIPORTS 309.35 291.50 6.12% Food and Drug Administration (FDA) to treat COVID-19 LT 862.90 814.80 5.90% patients. This agreement is part of Cipla’s efforts to ULTRACEMCO 3546.70 3349.35 5.89% enhance global access to life-saving treatments for patients affected by the pandemic. (Source: Moneycontrol) ● Dr Reddy’s Laboratories has received the Establishment Inspection Report (EIR) from USFDA for Top Losers its Formulations Srikakulum Plant (SEZ) Unit I, Andhra SCRIP NAME Close Previous Change (%) Pradesh, indicating closure of the audit and the NESTLE 16512.35 17461.95 -5.44% inspection classification of this facility is determined as SUNPHARMA 452.35 463.90 -2.49% No Action Indicated. BRITANNIA 3079.55 3107.30 -0.89% ● Jubilant Life Sciences Limited announce that its HINDUNILVR 1995.75 2011.55 -0.79% subsidiary, Jubilant Generics Limited ("Jubilant"), has BHARTIARTL 555.95 559.85 -0.70% entered into a non-exclusive Licensing Agreement with

(Source: Moneycontrol) Gilead Sciences, Inc. that will grant Jubilant the right to register, manufacture and sell Gilead’s investigational drug, remdesivir, a potential therapy for Covid-19 in 127 countries including India. ● Hexaware Technologies launched Amaze for Data & AI. The latest product would be a new cloud transformation solution for taking on-premise Data warehouses and Analytics ecosystems to cloud.

(Source: Business Standard, Economic Times, Smart investor)

Global News

● U.S. consumer price index slid by 0.8% in April after falling by 0.4% in March. Core consumer prices fell by 0.4% in April after edging down by 0.1% in March. Compared to the same month a year ago, consumer prices in April were up by just 0.3%, reflecting the slowest annual growth since October of 2015. The annual rate of growth on core consumer prices also slowed to 1.4% in April from 2.1% in March, showing the smallest increase since April of 2011.

● U.S. federal government ran a budget deficit of $737.9 billion in April, up from $160 billion in the same month last year. This brought the fiscal year-to-date deficit to $1.48 billion up from $530.9 billion in the same period last year.

● U.K. gross domestic product fell 2% sequentially in the first quarter, which was the largest decline since the fourth quarter of 2008. On a yearly basis, GDP decreased 1.6%, marking the biggest contraction since late 2009. In March, GDP

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declined 5.8% after contracting 0.2% in February.

● U.K. visible trade deficit widened to GBP 28.12 billion in the three months to March from GBP 15.5 billion shortfall seen a quarter ago. The total trade balance swung to a deficit of GBP 4.7 billion. In March, the visible trade deficit widened to GBP 12.5 billion from GBP 9.8 billion in February. Likewise, the total trade deficit increased to GBP 6.67 billion from GBP 1.54 billion.

● Eurozone industrial production decreased 11.3% month-on-month in March. On a year-on-year basis, industrial production decreased 12.9% in March after a revised 2.2% drop in February.

● Japan had a current account surplus of 1,971.0 billion yen in March - down 32.1% on year, down from the 3,168.8 billion yen surplus in February.

Source: Market Watch, RTT News, Reuters, Bloomberg)

Economic News

● Crude Oil traded at US$ 25.26/ bbl (IST 17:00).

● INR strengthened to Rs. 75.46 from Rs. 75.51 against each US$ resulting in daily change of 0.06%.

● Finance Minister Nirmala Sitharaman shares the details of Rs20 lakh cr economic package announced by Prime Minister Narendra Modi.

Key highlights:

Due date for all I-T returns for 2019-20 extended to Nov 30, 2020.

Extension of registration and completion date of real estate projects under RERA. Government to infuse Rs50,000cr liquidity by reducing rates of TDS. The TDS deduction will infuse liquidity of Rs50,000cr. TDS rate cuts will apply for all purposes. It comes into force from tomorrow. Till 31 March 21, TDS, TCS rates by 25%.

PFC and REC to infuse liquidity of Rs90,000cr to DISCOMS against receivables, FM says.

Statutory PF contribution by employer reduced to 10% from 12% earlier; to provide Rs6,750cr liquidity relief.

Govt. announces Rs45,000cr liquidity infusion through a Partial Credit Guarantee Scheme 2.0 for NBFCs. Rs30,000 cr liquidity scheme through debt papers, HFCs and micro-finance institutions and CPSEs will continue to maintain EPF at 12%.

To ease financial stress as businesses, get back to work, the government decides to continue EPF support for business and workers for three more months by providing a liquidity relief of Rs2,500cr. Statutory PF contribution is being reduced from 12% to 10%, FM Sitharaman said. Govt of India will pay for EPF for another 3 months. 72 lakh employees will benefit from it. Liquidity relief is being given for all EPF establishments. 12% of contribution which is paid by employer, and 12% by employee is now extended for another 3-months.

All receivables of MSMEs from CPSEs and other govt. enterprises to be cleared within the next 45 days. Rs50,000cr

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equity infusion through MSME Fund of Funds; to provide support to growth potential MSMEs. Global tender disallowed in govt procurement for tenders up to Rs200cr to provide MSMEs the opportunity to participate in tenders. The first measure is for MSMEs with a collateral-free automatic loan for MSMEs; the size of the scheme is Rs3 lakh cr. Emergency credit line to biz, MSMEs from banks and NBFCs up to 20% of entire outstanding credit as on 29.02; the scheme can be availed till Oct 31 2020.100% credit guarantee cover to banks NBFCs on principal and interest. Loans to have 4-year tenor with a moratorium of 12 months on principal repayment; Interest to be capped. Govt to provide stressed MSMEs with equity support, will facilitate provision of Rs20,000cr as subordinate debt. FM on Rs20 lakh cr special economic package said that collateral-free loan to be provided to SMEs with 12-month moratorium and 45 lakh units to benefit. For stressed MSMEs, Rs20,000cr worth of subordinate debt-based scheme and 200,000 to benefit. This will enable 45 lakh MSME units to resume business activity and also safeguard jobs and collateral-free loan for MSMEs upto Rs3 lakh cr, FM Sitharaman. The FM also said that we also ensured Rs18,000cr of refunds through a special drive were given to all taxpayers. Today's tranche of announcements has 15 different measures to be announced - 6 for MSMEs, 2 related to EPF and 2 related to MFIs, 1 to discus, 1 to contractors, 1 to real estate, and 3 tax measures. Income tax refunds of Rs18,000cr expedited to improve liquidity

FM Nirmala Sitharaman says - We have a responsibility towards poor, needy, migrant workers, divyaang and old-age pensioners of the country. For all those who have up to Rs 5,00,000 refunds have been cleared. Rs 14,00,000 taxpayers have benefitted. We ensured that Rs 18,000 crore worth of refunds were given out to income-tax payers. 1.4 million taxpayers benefitted. This is and always has been a sensitive and responsive government. The coronavirus came soon after February 2020 budget was presented. We are going to have to build on Gareeb Kalyan Package. The financial package announced by Prime Minister Narendra Modi essentially aims to spur growth and build a very self-reliant India.

Finance Minister Sitharaman says wouldn't have been able to get gas to the poor without the Ujjwala scheme.

India's economic package is among the largest economic stimulus package announced by nations around the world but would rank behind Japan, the US, Sweden, Australia and Germany.

Given pillars based on which we seek to build 'Aatma nirbhar Bharat', our focus would be on land, labour, liquidity and law. A global value chain integration is a part of this vision.

FM Nirmala Sitharaman unveils details of the Rs 20 lakh cr economic package in a press conference to fight the coronavirus (COVID-19), announced by PM Narendra Modi in his address the nation. It will play a role in Atmanirbhar Bharat Abhiyan (self-reliance India campaign).

● India's manufacturing output crashed 20.6% year-on-year in March. Mining production was unchanged, while electricity output dropped 6.8%. Industrial output, which the three sectors, dropped 16.7%. During the financial year April 2019-March 2020, industrial production decreased 0.7% from the previous year.

(Source: Economic Times, Business Standard)

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Forthcoming Events

Board Meetings as on 14/05/2020

Biocon Limited Financial Results Escorts Limited Financial Results/Dividend TATA CONSUMER PRODUCTS LIMITED Financial Results/Dividend Zensar Technologies Limited Financial Results TV Today Network Limited Financial Results/Dividend Aavas Financiers Limited Financial Results/Fund Raising Accelya Solutions India Limited Financial Results Ashok Leyland Limited Fund Raising Indiabulls Real Estate Limited Financial Results/Other business matters Indian Energy Exchange Limited Financial Results Mahindra EPC Irrigation Limited Financial Results Mahindra Lifespace Developers Limited Financial Results/Dividend Manappuram Finance Limited Financial Results Oracle Financial Services Software Limited Financial Results/Dividend

(Source: NSE)

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