Equity Monthly Report May'21

EQUITY MONTHLY REPORT May’ 2021

Nifty Movement Market Commentary

Indian stocks were higher in May even as the country battled a devastating resurgence of Covid-19. Indian benchmark indices ended on a strong note. Nify and Sensex rose to fresh record highs tracking gains in global stocks, in-line earnings from India Inc and amid a steady drop in covid cases. These indices have closed the month of May with a 6.5% gain almost matching the February gains. RBI's string of measures to support the economy amid the pandemic also boosted sentiments. Sharp gains in index heavyweight Reliance Industries also pushed the markets higher. The rise in heavyweights supported the rally and sectors like metal, private banks and energy witnessed maximum gains in anticipation of better economic growth. (Source: NSE) The benchmark indices Sensex and the Nify both rose 6.5% in May.The BSE Mid-cap and BSE Small-cap indices also recorded Global Indices (% change) new highs, gaining 7.1% and 8.9% respectively. On the sectoral front, all the sector indices closed in green, with BSE power, capital goods and oil & gas indices gaining 13.5%, 11.1% and 9.8%. BSE consumer durables, healthcare and IT indices underperformed broader markets by gaining 3.3%, 4.3%, and 4.9% respectively.

World markets ended on a mixed note in the month of May 2021.Brazil – Bovespa, Chinese - Shanghaicomposite , US - Dow Jones, Germany – DAX, Hong Kong – Hang Seng,UK – FTSE and Japan – Nikkei were up by 6.2%, 4.9%,1.9%, 1.9%, 1.7%, 0.8% and 0.2% respectively while Singapore – StraitTimes, US - Nasdaq and Indonesia – Jakarta Composite were down by1.7%, 1.5% and 0.8% respectively.

The month has been marked by big swings in everything from stocks to bitcoin. Worries about inflation injected a jolt of (Source: Investing.com) volatility to markets earlier in May, though major U.S. indexes have regained their footing since as investors rapidly stepped back into markets. An increase in spending and a surge in the number of Americans that have been vaccinated have added to optimism about an economic recovery from the Sectoral Indices(% change) pandemic-induced recession. That led many investors to increase bets in recent months on cyclical corners of the market like smaller companies and the financials and energy groups.

(Source: Investing.com)

Auto sales May’21

Sales of automobiles in the local market last month sequentially declined in strong double-digits with state governments imposing sporadic lockdowns to check the spread of the second wave of the coronavirus pandemic.

The market leader Maruti Suzuki posted total sales of 46,555 units in May. This is a de-growth of 71% over the 1,59,691 units it sold last month.Exports fell to 34% to 11,262 units in May '21.

Hyundai Motor India monthly sales were nearly halved in May, dropping from 49,001 units to just 25,001. In a YoY comparison, that’s 263 percent more than the Korean carmaker’s tally in May 2020 of less than 7,000 units.

Tata Motors retailed 24,552 units in the domestic market in May 2021, witnessing a month-on-month decline of 38 per cent over April 2021 as sales were disrupted due to the Covid-19 lockdown restrictions across India.

UV major Mahindra and Mahindra (M&M), sold 8,004 units and 7,508 units of passenger vehicles and commercial vehicles, respectively, in the domestic market and exported 1,935 units in May 2021.

For Honda cars India domestic sales stood at 2,032 units. Compared to the 9,072 units sold a month ago, in April 2021, the company registered a Month-on-Month decline of nearly 78 per cent.

May’21 Amongst two wheelers,The world’s largest two-wheeler manufacturer, Hero MotoCorp sold 183,044 units of two-wheelers in the month of May 2021.Sales in the month of May'21 were adversely impacted due to the closure of plant operations in view of the escalation in the spread of the Coronavirus in the country.

Bajaj Auto registered total sales of 2,71,862 two-wheelers in May 2021, which is a decrease of 30 per cent over April 2021. Bajaj exported 2,11,032 two-wheelers in May 2021, which is a decrease of 17 per cent over last month and it is a growth of 142 per cent over May 2020.

TVS Motor Company registered sales of 166,889 units in May 2021 as against sales of 58,906 units in the month of May 2020 which was a growth of 183% YoY.

Eicher Motor sold a total of 27,294 Royal Enfield in May 2021, rising by a whopping 43% from 19,113 units sold in the same month a year ago. From the total, exports stood at 7,221 units skyrocketing by a breathtaking 956% yoy.

TOTAL FIGURE Name of Company May-21 May-20 Ch. (in %)- (YoY) Apr-21 Ch. (in %)- (MoM) Maruti Suzuki India Limited 46,555 18539 151.12 159,691 -70.85 Hero MotoCorp Limited 183,044 112,682 62.44 372,285 -50.83 Tata Motors Limited 26,582 41,739 -36.31 41739 -36.31 Bajaj Auto Limited 271862 127128 113.85 388016 -29.94 Mahindra & Mahindra Limited 17447 9560 82.50 36437 -52.12 TVS Motor Company Limited 166,889 58,906 183.31 238,983 -30.17 Eicher Motors Limited 27294 19113 42.80 53298 -48.79 Escorts Limited 6423 6594 -2.59 6979 -7.97 Ashok Leyland Limited 15761 1734 808.94 7961 97.98

(Source:BSE)

EXPORT FIGURE Name of Company May-21 May-20 Ch. (in %)- (YoY) Apr-21 Ch. (in %)- (MoM) Maruti Suzuki India Limited 11,262 4,651 142.14 17,237 -34.66 Hero MotoCorp Limited 23483 3834 512.49 29671 -20.86 Tata Motors Limited 2,030 2,209 -8.10 25095 -91.91 Bajaj Auto Limited 211,032 87,054 142.42 253,545 -16.77 Mahindra & Mahindra Limited 1,935 484 299.79 2,005 -3.49 TVS Motor Company Limited 114,674 17,707 547.62 107,185 6.99 Eicher Motors Limited 7,221 684 955.70 4,509 60.15 Escorts Limited 265 140 89.29 593 -55.31

(Source:BSE)

May’21 TOTAL DOMESTIC SALES FIGURE (Excluding Export) Name of Company May-21 May-20 Ch. (in %)- (YoY) Apr-21 Ch. (in %)- (MoM) Maruti Suzuki India Limited 35293 13888 154.13 142454 -75.22 Hero MotoCorp Limited 159561 108848 46.59 342614 -53.43 Tata Motors Limited 24552 39530 -37.89 16644 47.51 Bajaj Auto Limited 60830 40074 51.79 134471 -54.76 Mahindra & Mahindra Limited 15512 9076 70.91 34432 -54.95 TVS Motor Company Limited 52215 41199 26.74 131798 -60.38 Eicher Motors Limited 20073 18429 8.92 48789 -58.86 Escorts Limited 6158 6454 -4.59 6386 -3.57

(Source:BSE)

May’21 Telecom Subscription Data as on 31 March’21

The number of telephone subscribers inIndia increased from 1,187.90 million at the end of February-21 to 1,201.20million at the end of March-21, thereby showing a monthly growth rate of 1.12%.Urban telephone subscription increased from 657.72 million at the end ofFebruary-21 to 663.77 million at the end of March-21 and the rural subscription also increased from 530.18 million to537.42 million during the same period.

Service Provider wise growth in total subscribers ( February’21-March’21)

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May’21