Opening Bell

July 21, 2020

Market Outlook Today’s Highlights

Indian markets are likely to open in the green on the back of Results: Mahindra CIE, Bajaj Finserv, firm global cues amid positive outcomes of potential Covid- Syngene, Tata Elxsi, HUL, SBI Life, HDFC Life 19 vaccines trials. However, global news flows and earnings Insurance, Axis Bank, Bajaj Finance, outcomes of domestic companies would be key Heidelberg Cement, Hindustan Zinc, Polycab, monitorables. Himadri Specialty Chemicals

Index Movement

Markets Yesterday 39600 11800 . Domestic markets ended higher tracking gains in the IT sector and amid strong corporate earnings 37600 11000

35600 . US markets ended higher led by gains in tech heavyweights 10200 and positive news flows about the Covid-19 vaccine 33600 31600 9400 8-Jul 11-Jul 14-Jul 17-Jul 20-Jul

Key Developments BSE (LHS) NSE (RHS) . For Bajaj Finance, moratorium has come down from 27% C lose Previous C hg (%) MTD(%) YTD(%) P/E (1yrfwd) to 15%. Credit growth was reported at 7% YoY, down 6% S ensex 37,419 36,472 2.6 7.2 -9.3 23.1

QoQ to | 138000 crore, lowest ever in the last several Nifty 11,022 10,740 2.6 7.0 -9.4 22.4

years due to lockdown. New loan addition also slowed to 50 lakh from 60 lakh QoQ. Lower growth would impact Institutional Activity NIM negatively. NII is seen declining to | 4025 crore, down C Y18 C Y19 YTD C Y20 Yesterday Last 5 Days 15% YoY but provisions may surge to | 1500 crore (| 1940 F II (| cr) -68,503 40,893 -72,730 1,710 -1,960 crore in Q4FY20) as the management is planning to raise D II (| cr) 107,388 44,478 91,590 -1,522 -1,584 provisions for Covid and build higher PCR. Asset quality expected to see some shocks accordingly. PAT is World Indices – Monthly performance estimated to decline 29% YoY to | 851 crore S hanghai Nasdaq BSE NSE G ermany . As per media sources, the government is mulling 3,314 10,767 37,419 11,022 13,047 privatising more than half of its state-run PSU banks to 11.7% 8.3% 7.7% 7.6% 5.8% keep only five PSBs, going forward. As part of this plan, D ow Jones K ospi F rance Nikkei U.K. the government plans to sell stakes in Bank of India, 26,681 2,198 5,093 22,717 6,262

3.1% 2.7% 2.3% 1.1% -0.5% Central Bank of India, Indian Overseas Bank, Uco Bank, Bank of Maharashtra, Punjab & Sind Bank. Also, the

government has clarified it would disclose the full plan under privatisation policy currently being formulated

. Nifty. Heat Map Britanni 3,983 Bajaj 3,442 H C l 649 Bajaj 6,620 454 UPL a 5.2% F inance 4.2% T ech 4.1% F inserv 4.1% 3.9%

623 271 H ero 2,860 934 H D F C 1,133 T echM Wipro Infosys 3.9% 3.6% Moto 3.5% 3.4% Bank 3.1%

IC IC I 363 Bharti 203 19,188 Asian 1,752 G rasim 603 E icher Bank Infratel P aints Ind 2.6% 2.5% 2.0% 2.0% 1.9% Markets Today (ADR sata updated till yesterday) C oal 133 88 Bharti 576 Indusind 529 Adani 317 IOC Commodities C lose Previous C hng (%) MTD(%) YTD(%) India 1.8% 1.6% Airtel 1.6% Bank 1.5% P orts 1.4% G old (|/10 gm) 49,032 48,967 0.1 0.3 25.1 191 594 R elianc 1,920 T ata 352 1,002 SBI M&M T itan Silver (|/kg) 53,930 52,899 2.0 6.8 13.6 1.4% 0.9% e Ind. 0.4% S teel 0.4% 0.4% Crude ($/barrel) 43.4 43.28 0.4 4.0 -35.2 2,208 Bajaj 3,003 Axis 434 P ower 164 17,247 C opper ($/tonne) 6,488 6,448 0.6 7.5 5.0 TCS Nestle 0.3% Auto 0.3% Bank 0.2% G rid 0.1% 0.1% C urrency U S D /INR 74.9 74.8 0.1 0.8 -4.7 U ltratec 3,865 JS W 207 H D F C 1,806 80 S hree 22,236 ONGC E U R /U S D 1.1 1.1 0.7 2.0 2.2 h 0.1% S teel 0.0% Ltd 0.0% -0.1% C ement -0.2% U S D /Y E N 107.2 107.4 -0.2 0.7 1.3 2,331 K otak 1,319 920 100 4,092 ADR s HUL L&T GAIL D r R eddy Bank -0.2% -0.6% -0.6% -0.6% -0.6% H D F C Bank 47.3 46.7 1.2 4.0 -25.4 IC IC I Bank 9.4 9.4 0.1 1.2 -37.7 193 161 5,868 108 T ata 105 ITC H indalco Maruti V edanta T ata Motors 7.0 7.0 -1.0 5.8 -46.2 -0.7% -0.8% -0.9% -1.0% Motors -1.3% Infosys 12.3 11.9 3.0 27.0 18.9 87 437 155 674 S un 484 NTPC BPCL Z ee E nt. C ipla Dr Reddys Labs 55.0 53.7 2.4 3.7 35.5 P harma -1.3% -1.5% -1.7% -2.1% -3.9% Wipro 3.8 3.9 -1.0 15.1 1.6

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Key Data Points Exchange Cash Turnover (| crore) Key Econom ic Indicator Pe rio d L ate s t Prior Values 100000

RBI Cash Reserve Ratio N/A 3.00% 4.00%

64,037 61,250 58,667 56,333 54,109 RBI Repo Rate N/A 4.00% 4.40% 52,355 RBI Reverse Repo Rate N/A 3.35% 3.75% 50000

CPI Y Y Jun 6.09% 5.84%

3,735

3,583

3,420

3,346

3,193 3,093 Current Account Balance Q1 -0.6bln $ -1.4bln $ 0 Exports - USD May 19.05 bln$ 10.36 bln$ 13-Jul 14-Jul 15-Jul 16-Jul 17-Jul 20-Jul FX Reserves, USD Final Jun 506.8 bln$ 493.5 bln$ BSE Cash NSE Cash GDP Quarterly yy Q1 3.10% 4.70%

GDP Annual FY 20 4.20% 6.10% Imports - USD May 22.2 bln $ 17.1 bln $ NSE Derivative Turnover (| crore) Industrial Output yy May -34.70% -55.50% 4000000

Manufacturing Output May -39.30% -64.30% Bell Opening 3000000

Trade Deficit Govt - USD May 3.15 bln $ 6.8 bln $

3,650,219 2,150,273

WPI Food yy May 1.10% 2.60% 2000000 1,510,279

1,187,373

1,167,813 1,075,163 WPI Fuel yy May -19.83% -10.12% 1000000 WPI Inflation yy May -3.12% - WPI Manuf Inflation yy May -0.42% - 0 13-Jul 14-Jul 15-Jul 16-Jul 17-Jul 20-Jul NSE Derivative

Corporate Action Tracker Sectoral Performance – Monthly Returns (%) Security nam e Actio n Ex Date Record Date Statu s Price (|)

IT 19.9 Sun Pharma Buyback O ngoing 425.00 FMCG 8.4 Sterlite Technologies Buyback O ngoing 150.00 Auto 8.2 BSE Midcap 6.6 eClerx Buyback O ngoing 550.00 Metals 5.6 PVR Rights Issue O ngoing 784.00 BSE Small Cap 5.2 Balrampur Chini Buyback O ngoing 180.00 Healthcare 4.9 Consumer Durables 4.6 O riental Hotels Dividend 20-Jul-20 - 0.20 Banks 4.0 V ST Industries Dividend 20-Jul-20 - 103.00 Oil & Gas 3.4

Asian Paints Dividend 23-Jul-20 - 1.50 Capital Goods 2.7

PSU 1.9 Research Equity Retail HCL Tech Dividend 23-Jul-20 25-Jul-20 2.00

Power -1.9 – Sobha Ltd Dividend 23-Jul-20 - 7.00 Real Estate -5.6 Tech Mahindra Dividend 23-Jul-20 - 5.00 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 Timken India Dividend 23-Jul-20 - 50.00 (%) Trent Ltd Dividend 24-Jul-20 - 1.00

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Key News for Today Company/ News View Impact Industry ACC ACC reported healthy margin expansion of While volume got affected due to lockdown over ~313bps YoY to 20.2% during Q2CY20 impact, a demand recovery in the later half despite weak sales volume for the quarter. along with the benign cost environment had Revenue for the quarter declined 35.9% a positive impact on margins and YoY to | 2602 crore. This remained broadly profitability for the quarter. The company  in line with our estimates. However, healthy has debt free status and strong liquidity margins led the company to report net profit position, which is a key positive of | 271 crore. This remained ahead of our expected PAT of | 167 crore for the quarter

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Banking The IL&FS Board of Directors led by Uday In terms of exposure, SBI, Bank of India and sector Kotak plan to close | 50500 crore of its debt Indusind Bank have a substantial exposure by March 2021 while an additional | 6600 to the debt laden IL&FS Group. Complete crore of debt would be addressed beyond implementation of the debt resolution plan FY21. IL&FS has a total debt of | 99000 crore would address ~| 57000 crore of debt, which would entail a haircut of 42%. As most lenders have provided for IL&FS exposure in excess of 50%, the aforesaid issue has subsided. However, complete implementation of the said debt reduction programme amid Covid remains uncertain

Telecom The Supreme Court reserved its order on Assuming a 15 year payment timeline, we timeline of staggered payment of adjusted expect annual instalments of ~| 6600 for gross revenue (AGR) related dues by and | 3400 crore for Airtel. telecom operators. Both Vodafone Idea, While for Airtel, it is very much within the requested a 15-year window to ability, we expect a meaningful case for clear dues while sought Vodafone Idea's long term survival only seven to 10 years. The court also directed when there is substantial capitalisation by Department of Telecommunications (DoT) promoters/ strategic partners and/or change to submit insolvency proceedings details of in regulations such as floor tariff norms, bankrupt telcos lowering of levies, etc (RCom), and Videocon Telecom within seven days

Majesco Majesco US (the US listed company) has Majesco India (the India listed company) decided to sell its company to a private holds a 74.07% stake in the US entity equity (Thoma Bravo, LP) at US$13.1/share (Majesco US). Hence, based on the stake, valuing the company at US$594 million (| the company will receive cash of US$420 4455 crore). This offer price is at a 77% million (| 3154 crore). Assuming a capital premium to Majesco US' last close price. gains tax, the company would receive cash The company is valued at 4x FY20 EV/sales of ~| 2555 crore. This, coupled with a cash of | 26 crore on the company's balance sheet the total cash with the firm would be | 2581 crore or | 852/share (i.e is 224% above the last closing price of | 380/share). The company intends to distribute entire proceeds via dividend or buyback as expeditiously as possible. The transaction is expected to be completed by end of 2020 subject to regulatory approvals

Mastek Majesco US (the US listed company) has Mastek holds ~6.5% stake in Majesco US. decided to sell its company to a private This transaction will value its stake at ~| equity firm (Thoma Bravo, LP) at 198 crore. This transaction will boost the US$13.1/share valuing the company at current valuation of mastek by ~10% US$594 million (| 4455 crore). This offer  price is 77% premium to Majesco US's last close price. The company is valued at 4x FY20 EV/sales

Container As per media sources, in an another twist to However, private rail container operators Corporatio the privatisation of Concor, the Government are of the view that such a plan would n of India of India is planning to provide potential create undue advantage for the new private buyers with an existing land lease owner of Concor and create a private agreement. The existing agreement is based monopoly. However, the step is critical for on concessional market value of Indian the Government of India to keep the bidding Railways land, leased to Concor interest intact for privatisation of the company ICICI Securities | Retail Research Opening Bell ICICI Direct Research

HUL & Tata Tea prices have further firmed up due to The sharp increase in tea prices (40% up) Consumer 10% production cut as heavy rain and would impact gross margins of HUL food Products flooding hampered work in the tea gardens segment & Tata Consumer Products as of Assam and West Bengal last month. The companies may be unable to pass on the  production of high quality tea was also entire increase in cost. HUL & TCPL took impacted by lockdown in April-May ~10% price hike earlier this quarter

Key developments (Continued…)

 Hindustan Unilever (HUL) is likely to witness a revenue decline of 2.4% (including the acquired company's sales). It was able to start manufacturing in mid-April but only reached the previous year’s levels by June 2020. We believe HUL would have been able to refill the inventory at the distributor level by the end of June 2020, which would have absorbed some of the lost sales in April & May. Q1FY21 would have been a near washout quarter for cosmetics & ice-creams. However, soaps, sanitisers would have seen strong growth induced by increased hygiene awareness. We expect 12% & 13% revenue decline in home care & BPC (beauty & personal care) categories, respectively. With benign raw material cost, reduction in A&P spends and other cost cutting measures, we expect the company to maintain operating margins at 26.5% (35 bps higher). PAT is likely to grow 7.9% aided by profits from GSK acquisition & lower income tax  For Axis Bank, advances momentum is expected to remain benign led by retail segment (53% of advances); disbursement to MSME and corporate segment to keep growth at ~15% YoY to | 573966 crore. Deposit inflow is expected to remain healthy at | 651942 crore. Impact of lower CD ratio and cut in MCLR, is to be curtailed by aggressive reduction in deposit rates safeguarding margins, expected to decline ~5 bps to ~3.5%. Fee income is expected to remain muted impacting operational performance with PPP at | 5570 crore. Credit cost is going to be crucial in determining earnings trajectory. Given relative lower moratorium at 28% and adequate contingent provision, credit cost is to tapper down at ~0.8% of advances, leading to PAT at | 753 crore. Moratorium to keep GNPA ratio steady at ~4.8-5%. Commentary on moratorium trend to remain key monitorable  For Hindustan Zinc, on the back of Covid-19 related shutdown, we expect zinc, lead and silver volumes to be lower YoY. In dollar terms, LME zinc prices during the quarter were down 28.6% YoY, 7.3% QoQ to US$1970/tonne while lead prices were down 10.8% YoY, 8.9% QoQ to US$1679/tonne. We expect zinc sales of ~162500 tonne, lead sales of ~42500 tonne and silver sales of ~120000 kg for the quarter. The topline is likely to decline 21.9% YoY, 11.3% QoQ to | 3893 crore, EBITDA is likely to decline 31.7% YoY, 13.9% QoQ to | 1692 crore while PAT is likely to decline 29.4% YoY, 7.0% QoQ to | 1245 crore. We expect the EBITDA margin to come in at 43.4% in Q1FY21  Bajaj Finserv is expected to witness a slowdown in overall performance as well as profitability primarily due to moderation in lending business. Consolidated revenue is seen flat YoY at | 12387 crore with earnings set to dip ~25% YoY to | 637 crore. A substantial moderation in AUM growth and higher provisioning is seen impacting profitability of lending business. In life insurance, premium accretion is seen remaining flat YoY at | 1928 crore, while general insurance business is expected to witness a decline in premium growth to | 2560 crore. Despite substantial claims, slower premium accretion is expected to impact earnings in the insurance business. Commentary regarding traction in protection business and health insurance will remain a monitorable  For SBI Life, premium accretion is expected to get hit in April 2020 but strong revival in subsequent months is seen keeping growth momentum healthy. Renewal premium may remain healthy though expect some moderation owing to lockdown. Premium growth is seen at 6% YoY to | 7052 crore while premium on APE basis may decline 23% YoY, due to higher accretion in single premium. Commission expense is expected to remain lower at 3.6%, led by higher traction in single premium business. Anticipating no substantial increase in claims, expect surplus at | 228 crore. Given seasonally slower quarter and impact of lockdown, PAT is seen declining 22% YoY to | 290 crore. The management commentary on claims and demand for protection products is to be watched  Dabur has filed a case in the Delhi High Court alleging Marico has copied its honey brand with similarities such as the shape of the bottle, its yellow cap, dome-shaped label, usage of honey combs on the label. Marico forayed into honey under the Saffola brand recently  Jubilant Life has received Indian drug regulator's (DCGI) approval for its generic version of Gilead Sciences' Remdesivir, lyophilised injection, 100 mg/vial under its brand name 'Jubi-R' for restricted emergency use in Covid-19 patients. Remdesivir is the only USFDA approved emergency use authorisation (EUA) antiviral treatment in severe (hospitalised) Covid-19 patients. The company plans to commercialise the drug in August 2020 through its distribution network, having secured non-exclusive license from Gilead earlier in May 2020  The authorities have booked HUL for negligence during the Covid pandemic as 224 people were found Covid19 positive in its Haridwar factory

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Key developments (Continued…)

 Infosys announced a strategic long term partnership with Lanxess, a specialty chemicals company headquartered in Germany. Infosys will support Lanxess in its IT infrastructure digitisation strategy and enable its global workforce spread across 33 countries with a secure and fully managed modern workplace  Indigo Airlines has announced a layoff of 10% of its workforce due to economic crisis caused by Covid-19 pandemic  Cipla, Amgen settle the lawsuit relating to Cinacalcet hydrochloride (Sensipar) tablets filed in January 2019. As per the settlement Cipla can continue importing, marketing, and selling the generic drug (30/60/90 mg) in the US. The drug is indicated for treatment of hypercalcemia and secondary hyperparathroidism in adults  Wipro’s consulting and business process services company today announced a partnership with ComplianceQuest to develop transformative quality management solutions for the medical devices and life sciences industries  Realty firm Omaxe has signed an agreement with Jindal Steel and Power (JSPL) for supply of modular steel structure to its commercial project at Chandni Chowk in the national capital. Omaxe is developing a multi-level parking-cum-commercial project at Chandni Chowk under PPP model with North Delhi Municipal Corporation (NDMC). JSPL will supply 7,000-8,000 metric tonnes of structure steel to Omaxe  The Andhra Pradesh government has increased VAT on petrol and diesel by | 1.2/litre and | 0.9/litre to | 4, respectively  As per media reports, capacity utilisation of PSU refiners reduced following a fall in demand. IOC's capacity utilisation dropped to 85% from 94% while BPCL and HPCL's capacity utilisation was also lower  Mindtree announced it has been commissioned by Husqvarna Group to provide DevOps-centric SAP services to help drive the company’s digital transformation initiatives. The company seeks to gain better visibility into its operations, more effectively improve service and product offerings across sales and service channels and optimize its supply chain  Liberty House has evinced interest in collaborating with Tata Steel for its plant at Port Talbot. The project involves conversion of two coal-fired blast furnace into electric arc furnace melting scrap steel. Tata Steel UK earlier said it is exploring plans to close two blast furnaces at its Port Talbot steelworks, as part of plans to access millions of pounds via a UK government Coronavirus bailout fund  Tata Steel is exploring plans to close its two blast furnaces at its Port Talbot steelworks in Wales and replace them with electric arc furnaces as part of plans to acquire millions of pounds via a UK government Coronavirus bailout fund. Under the proposal, the state would invest alongside Tata Steel, with the conversion of the furnaces starting in 2025. Ministers have placed stringent conditions on Project Birch cash, including demanding that it helps achieve its target of net-zero carbon emissions by 2050 and that jobs are not lost  Alembic Pharma has received tentative approval from USFDA for the generic version of Boehringer Ingelheim's Synjardy (Empagliflozin + Metformin Hydrochloride) tablets in US. The drug, indicated for the treatment of type-2 diabetes mellitus, had an estimated market size of US$172 million as per IQVIA MAT March 2020  CERC has proposed a uniform price discovery process through pooling of bids across power exchanges for optimal utilisation of transmission systems. The regulator has introduced a new concept called ‘Market Coupling’, meaning a process of collecting bids from all power exchanges and matching them to discover a uniform market clearing price. The job will be carried on by a ‘Market Coupling Operator’, an entity to be notified by the regulator  Media reports indicate Sony Pictures Network (SPN) and Viacom 18 group will be merged with SPN controlling 74% stake and Viacom 18 partners controlling 26% stake in merged entity. The deal will be done via share swap  Inox Leisure said they will not shut any cinema halls and maintained guidance of 41 new screens in FY21E  Nippon India, Societe Generale and Sundaram BNP Paribas have acquired rights entitlement shares of PVR via open market transactions on July 20  A PNG leakage incident occurred from IOC-AGPPL pipeline in Hubli, Karnataka on July 20  As per media sources, Chhattisgarh Chief Minister Bhupesh Baghel has written to Prime Minister Narendra Modi, requesting him to make iron ore available to steel industries in the underdeveloped Bastar region at a 30% concession rate through National Mineral Development Corporation (NMDC). As per the letter, the concession would help the steel industries to operate on a larger scale, make them profitable, and would also create employment opportunities for local youth

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Nifty Daily Chart Technical Outlook

Equity benchmarks reclaimed the 11000 mark after four months and ended Monday’s session on a buoyant note. The Nifty settled at 11022, up 121 points or 1.2%. In the coming session, Nifty future is likely to open above Monday’s high, tracking firm Asian cues. We expect index to trade with a positive bias by maintaining higher high-low formation. Hence, intraday dip towards 11040–11065 should be used to create long for target of 11159. We expect it to endure the ongoing up move over medium term and head towards 11400 levels by August 2020, as it is 80% retracement of entire CY20 decline (12430 – 7511), placed at 11445. We believe, the rally towards 11400 is likely to be gradual as past five week’s ~16% rally hauled weekly stochastic oscillator in overbought zone (currently placed at 96), indicating impending breather at higher levels. However we believe, such a breather should not be construed as negative, instead it should be capitalised on to accumulate quality stocks.

Pivot Points CNX Nifty Technical Picture

Index/Stocks Trend Close S1 S2 R1 R2 Nifty 50 Intraday Short Term SENSEX Positive 37419.0 37243 37068 37536 37654 Trend Up Up Nifty 50 Positive 11022.2 10970 10919 11055 11089 Support 11030-10990 10600 ACC Ltd Positive 1329.8 1317 1306 1338 1346 Resistance 11130-11170 11400 Axis Bank Ltd Positive 434.0 427 422 441 449 20 day EMA 0 10596.0 HINDALCO INDS Negative 160.9 159 158 162 164 200 day EMA 0 10542.0 SBI Positive 190.8 189 187 193 196 Advances/Declines HINDUSTAN PETRO Positive 227.1 225 221 231 233 MUTHOOT FINANCE Positive 1229.8 1169 1107 1264 1297 Advances Declines Unchanged Tata Motors Neutral 105.1 104 103 106 108 BSE 1510 1179 185 MRF LTD Neutral 65042.8 64559 64075 65688 66333 NSE 1139 783 91 BAJAJ AUTO LTD Positive 3002.6 2978 2953 3024 3045

Daily Technical Calls TCS Neutral 2211.5 2193 2174 2229 2246 ITC LTD Negative 192.7 191 190 194 196 Daily Technical Calls CIPLA LTD Neutral 674.4 667 661 686 698 1. Buy Pidilite Industries in the range of 1440.00-1445.00 PIRAMAL ENTERPRI Positive 1406.4 1383 1361 1428 1451 2. Buy TCS in the range of 2217.00-2223.00 Reliance Industries Positive 1919.9 1902 1885 1934 1949 All recommendations of July Future

BHARTI AIRTEL Positive 575.8 568 560 582 590 EQUITAS HOLDINGS Positive 58.4 55 54 59 61 See Momentum Pick for more details

Nifty Call – Put Strike (Number of shares in lakh) – July 2020 Intraday Derivative Strategy

i) Infosys 10400 13 4 Buy INFTEC JUL Fut at ₹940.00 -₹942.00 10500 23 8 CMP: 942 10600 16 6 Target 1: 946 Target 2: 953.5 10700 11 7 Stop Loss : 936 10800 15 12 10900 5 8 11000 7 25 ii) Vedanta 11100 0 9 Sell VEDLIM JUL Fut at ₹108.50 - ₹108.70 11200 1 11 CMP : 108.5 Target 1: 107.6 Target 2: 106.2 30.0 20.0 10.0 0.0 10.0 20.0 30.0 Stop Loss: 109.6 Put Call

See Derivatives view for more details

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Results/Events Calendar

06 July 07 July 08 July 09 July 10 July 11 July Monday Tuesday Wednesday Thursday Friday Saturday Bodal Chemicals,NBCC CH FX Reserves South Indian Bank TCS,Sadbhav Engineering IN Industrial Production Avenue Supermarts UK Constrution PMI JP Current Account IN M3 Money Supply JP PPI (YoY) IN Manufacturing Output(MoM) 0 EU Retail Sales(MoM) 0 Crude Oil Inventories JP PPI (MoM) IN FX Reserves USD 0 US Services PMI 0 CH CPI (YoY),CH CPI (MoM) US Initial Jobless Claims US PPI (MoM) 0 JP Foreign Reserves 0 CH PPI YoY 0 0 0

13 July 14 July 15 July 16 July 17 July 18 July Monday Tuesday Wednesday Thursday Friday Saturday 5paisa Capital Wipro,Mindtree,Oberoi Realty LTI, Bandhan Bank Cyient HCL Tech,GNA Axles HDFC Bank Simmonds Marshall UK Unemployment Rate Federal Bank,Infosys L&T Tech. Services Ltd. Britannia Mahindra Finance Ltd. US Federal Budget Balance IN WPI Inflation (YoY) GTPL US Retail Sales (MoM) Granules India,EU CPI (YoY) IIFL Securities. IN CPI (YoY) EU Industrial Prod.(YoY), Minda Corporation EU Trade Balance EU Construction Output YoY 0 0 CH Exports, CH Trade Bal. US Industrial Production 0 0 0

20 July 21 July 22 July 23 July 24 July 25 July Monday Tuesday Wednesday Thursday Friday Saturday Swaraj Engines,ACC Mahindra CIE,Bajaj Finserv Bajaj Auto,Music Broadcast HDFC AMC,Zensar Asian Paints,TCI Express Persistent Systems NRB Bearings Syngene,Tata Elxsi,HUL Larsen & Turbo Ltd.,JSPL Mphasis,Biocon,SKF India Ambuja Cement,Atul,GHCL Supreme Industries EU Current Account HDFC Life Ins.Ltd.,Axis Bank Rallis,Heidelberg Radico,GM Breweries JSW Steel,ITC,Ambuja Cement Control Print JP Natl CPI (YoY) Bajaj FinanceLtd.,Heidelberg US Existing Home Sales Sterlite Technologies Schaeffler,Zee Entertainment 0 0 Hind Zinc,Polycab,SBI Life 0 Tube Investments Coromandel International 0

27 July 28 July 29 July 30 July 31 July 01 August Monday Tuesday Wednesday Thursday Friday Saturday Marico,Bharat Electronics Nestle,Castrol,IDFC First Mahindra Lifespace Dabur,JM Financials IOC,Bluedart 0 United Spirits,Havells India Orient Cement Dr.Reddy,GSK,SIS HDFC Ltd.,Torrent Pharma IN Federal Fiscal Defecit 0 ,Pfizer,Tech M US CB ConsumerConfidence Sagar Cement,Colgate Mahindra Logistics IN Infra. Output(YoY) 0 MM Forging,Vguard 0 Maruti Suzuki,Navin Fluorine JP Unemployment Rate EU CPI YoY 0 Orient Electric 0 Chambal Fertilisers CH Manufacturing PMI 0 0

03 August 04 August 05 August 06 August 07 August 08 August Monday Tuesday Wednesday Thursday Friday Saturday VST,Kandsi Nerolac Tata Consumer Products Trent Pidilite India TV Today,Ramco Cements 0 EU Manufacturing PMI Taj GVK Hotels,PI Industries UK Services PMI UK Constrution PMI Mahanagar Gas,Cipla 0 UK Manufacturing PMI UK PPI (MoM) UK Composite PMI 0 US Unemployment Rate 0 0 JP Services PMI US Trade Balance 0 CH Trade Balance 0 0 0 EU Services PMI 0 CH Exports, CH Imports 0

Major Economic Events this Week Result Preview

Date Event Country Period Actual Expected Company Revenue Chg(%) EBITDA Chg(%) PAT Chg(%) 20-Jul Current Account EU May 8.0B -- | Crore Q1FY21E YoY QoQ Q1FY21E YoY QoQ Q1FY21E YoY QoQ Date Event Country Period Expected Previous HUL 9,872.8 -2.4 9.6 2,618.0 -1.1 26.8 1,892.8 7.9 24.6 20-Jul National Core CPI YoY JP May 0.1% -0.2% Hindustan Zinc 3,893.2 -21.9 -11.3 1,691.6 -31.7 -13.9 1,245.3 -29.4 -7.0 21-Jul Manufacturing PMI JP July -- 40.1 Bajaj Finance 4,025.7 9.2 -14.0 2,634.7 9.7 -18.5 851.0 -28.8 -10.2 21-Jul Services PMI JP July -- 45.0 Bajaj Finserv 12,387.0 0.9 -6.8 1,389.9 -38.4 75.3 637.2 -24.6 227.7 22-Jul Crude Oil Inventories US July -2.098M -7.493M Axis Bank 6,756.7 15.6 -0.7 5,570.3 -5.5 -4.8 753.4 -45.0 NA SBI Life 7,052.1 6.0 -40.6 228.5 -17.7 -65.3 305.3 -19.2 -41.5 23-Jul Initail Jobless Claims US June 1,300K 1,300K 23-Jul Consumer Confidence EU July -12.00 -14.70 24-Jul Manufacturing PMI EU July 50.00 47.40

24-Jul Services PMI EU July 51.00 48.30 24-Jul Manufacturing PMI US July 51.50 49.80 24-Jul Services PMI US July 51.00 47.90 24-Jul Retail Sales (MoM) UK June 8.5% 12.0% Recent Releases Date Report July 20,2020 Result Update – HDFC Bank July 20,2020 Result Update – HCL Tech July 20,2020 Covid Recovery Pulse July 17,2020 Company Update – GTPL Hathway July 17, 2020 Company Update – Cyient Ltd.

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Pankaj Pandey Head – Research [email protected]

ICICI Direct Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No 7, MIDC Andheri (East) – 400 093 [email protected]

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Disclaimer ANALYST CERTIFICATION

I/We, Pankaj Pandey, Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. It is also confirmed that above mentioned Analysts of this report have not received any compensation from the companies mentioned in the report in the preceding twelve months and do not serve as an officer, director or employee of the companies mentioned in the report.

Terms & conditions and other disclosures:

ICICI Securities Limited (ICICI Securities) is a full-service, integrated investment banking and is, inter alia, engaged in the business of stock brokering and distribution of financial products. ICICI Securities Limited is a SEBI registered Research Analyst with SEBI Registration Number – INH000000990. ICICI Securities Limited SEBI Registration is INZ000183631 for stock broker. ICICI Securities is a subsidiary of ICICI Bank which is India’s largest private sector bank and has its various subsidiaries engaged in businesses of housing finance, asset management, life insurance, general insurance, venture capital fund management, etc. (“associates”), the details in respect of which are available on www.icicibank.com

ICICI Securities is one of the leading merchant bankers/ underwriters of securities and participate in virtually all securities trading markets in India. We and our associates might have investment banking and other business relationship with a significant percentage of companies covered by our Investment Research Department. ICICI Securities generally prohibits its analysts, persons reporting to analysts and their relatives from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover.

Recommendation in reports based on technical and derivative analysis centre on studying charts of a stock's price movement, outstanding positions, trading volume etc. as opposed to focusing on a company's fundamentals and, as such, may not match with the recommendation in fundamental reports. Investors may visit icicidirect.com to view the Fundamental and Technical Research Reports.

Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein.

ICICI Securities Limited has two independent equity research groups: Institutional Research and Retail Research. This report has been prepared by the Retail Research. The views and opinions expressed in this document may or may not match or may be contrary with the views, estimates, rating, and target price of the Institutional Research.

The information and opinions in this report have been prepared by ICICI Securities and are subject to change without any notice. The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of ICICI Securities. While we would endeavour to update the information herein on a reasonable basis, ICICI Securities is under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent ICICI Securities from doing so. Non-rated securities indicate that rating on a particular security has been suspended temporarily and such suspension is in compliance with applicable regulations and/or ICICI Securities policies, in circumstances where ICICI Securities might be acting in an advisory capacity to this company, or in certain other circumstances.

This report is based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. ICICI Securities will not treat recipients as customers by virtue of their receiving this report. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. The recipient should independently evaluate the investment risks. The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. ICICI Securities accepts no liabilities whatsoever for any loss or damage of any kind arising out of the use of this report. Past performance is not necessarily a guide to future performance. Investors are advised to see Risk Disclosure Document to understand the risks associated before investing in the securities markets. Actual results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to change without notice.

ICICI Securities or its associates might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any other assignment in the past twelve months.

ICICI Securities or its associates might have received any compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report for services in respect of managing or co-managing public offerings, corporate finance, investment banking or merchant banking, brokerage services or other advisory service in a merger or specific transaction.

ICICI Securities encourages independence in research report preparation and strives to minimize conflict in preparation of research report. ICICI Securities or its associates or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither ICICI Securities nor Research Analysts and their relatives have any material conflict of interest at the time of publication of this report.

Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.

ICICI Securities or its subsidiaries collectively or Research Analysts or their relatives do not own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month preceding the publication of the research report.

Since associates of ICICI Securities are engaged in various financial service businesses, they might have financial interests or beneficial ownership in various companies including the subject company/companies mentioned in this report.

ICICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report.

Neither the Research Analysts nor ICICI Securities have been engaged in market making activity for the companies mentioned in the report.

We submit that no material disciplinary action has been taken on ICICI Securities by any Regulatory Authority impacting Equity Research Analysis activities.

This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject ICICI Securities and affiliates to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.

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