ASHIKA GROUP

INDIAN MARKET OUTLOOK

• Global markets remained upbeat during the week led by Indian equities as foreign funds poured in, which could be partly on account of diversion of funds from China to following crackdown on tech sector. Besides, the economic indicators have also turned around and the management commentaries post Q1FY22 earnings have highlighted normalisation in July and TECHNO-FUNDA recovering lost ground in FY22 unless hit badly by 3rd wave. IDEAS • NSE Nifty and BSE Sensex gained 3.01% and 3.22% respectively led by gains in financial stocks which have fared better and management have provided favourable guidance ahead. India’s manufacturing activity revived in July and GST collections have • grown to Rs 1.16 lakh cr in July as economic conditions improved.

• During the week, RBI’s monetary policy committee (MPC) has • decided to maintain status quo and keep interest rates unchanged. The central bank left the repo rate unchanged at 4% and the reverse repo rate at 3.35%, with the policy stance being ‘accomodative’. RBI Governor has opined that the inflation would remain elevated till Q2FY22 and would gradually ebb from Q3FY22 as supply side pressures ease on kharif harvest arrivals.

• Globally, US initial jobless claims continue to decline further while services PMI grows from strength to strength narrating the strength of the economy. The Eurozone also remained strong while Bank of England kept its key interest rate and quantitative easing unchanged but hinted at "modest tightening" in a three- year horizon as policymakers expect inflation to temporarily reach 4 percent.

• Going ahead, global factors as well as the ongoing corporate earnings season would guide the markets where largecaps are expected to in favour vis-à-vis small and midcaps. For the week, companies like , HDFC, PNB, Adani Ports, India, Kajaria Ceramics, , , , HPCL, SBI, Titan Company, GAIL, IPCA Labs, , , , , were among the ones which reported strong/in line with consensus estimates while , M&M were lower than estimates.

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TECHNO FUNDA

BASF India Ltd.

• BASF India registered strong 1QFY22 growth both on YoY and QoQ basis due to better handling of raw material and other expenses. All the segments have CMP: Rs 3409 shown robust growth specially materials vertical and industrial solutions business. In terms of Target : Rs. 3800(+11.5%) specific verticals, BASF saw robust growth in its A strong uptrend in the stock can be seen materials vertical, industrial solutions business, since the start of 2020 and prices had nutrition and chemicals business. However, been trading amidst the rising channel. agricultural solutions business, surface technologies In recent period with huge surge in business and nutrition & care business saw volume has led the prices to breach past moderate growth on YoY basis. the said pattern hence indicates prices to rally further here onward. Among the • BASF India’s growth potential remains favorable in oscillators the daily 14periods RSI has the long term, backed by a recovery in end -user generated a buy signal moving above its industries and management’s strategic initiatives. nine periods average thus supports the The company is well on track realignment of positive bias. Hence the stock can be bought with price target of 3800 business service units, which aims at bundling of services and resources including implementation of a wide-ranging digitalization initiatives thereby simplifying processes and utilizing digital solutions.

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TECHNO FUNDA

Eveready Industries India Ltd.

• Eveready Industries India Ltd. (EIIL) is the country's market leader of batteries and flashlights - selling more than 1.3 billion CMP: Rs 386 batteries and nearly 21 million flashlights. Apart Target : Rs. 425 (+10.1%) from these, Eveready offers a basket of other products LED, LED based Luminaires, GLS lamps ‘V’ shaped recovery is being witnessed in & other lighting products and appliances. the stock with gradual rise in volume. Eveready has an extensive distribution network Breakout in the stock was initiated long of 4000 distributors reaching all the way down back in the month of Feb’21 at around to 5000 population towns. 250. In recent period with presence of positive divergence in oscillators • Company is currently setting up a new signaling of a reentering opportunity. Hence the stock can be bought with price production line for AAA batteries at its existing target of 425 plant near Bengaluru with an investment of around Rs. 15-20 crore. With a capacity of 150 million batteries per year, it is likely to start production from H1FY22 and this will support the future growth of the company.

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GLOBAL INDICES

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Dow is consolidating around trend support. The developing bull-flag pattern is seen as leading the DJI higher on a breakout above 35192, while a break below the weekly low at 34714 on a closing basis is seen as negating the bullish posturing.

DOW JONES CHART

MSCI EMERGING MARKETS

A series of indecisive Doji candle in weekly time frame for the past couple of weeks indicated that prices are on the path towards reversal. Index presently is taking support from the 23.6% retracement level of the entire rally since Mar’21 followed by the 50DMA further validates the same. Hence inability to hold the support of 1250 might lead to a further deeper correction.

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GLOBAL UPDATES

• First-time claims for U.S. unemployment benefits in the USA week ended July 31st slipped to 385,000, a decrease of 14,000 from the previous week's revised level of 399,000.

• The ISM said its services PMI jumped to an all-time high of 64.1 in July after pulling back to 60.1 in June, with a reading above 50 indicating growth in the sector.

• The euro area composite output index rose to 60.2 in July Europe from 59.5 in the previous month.

• The Bank of England kept its key interest rate and quantitative easing unchanged but hinted at "modest tightening" in a three-year horizon as policymakers expect inflation to temporarily reach 4 percent.

• Indonesia’s gross domestic product expanded 7.07 Asia percent year-on-year, in contrast to the 0.71 percent decline posted in the first quarter, first expansion in five quarters.

• Japan's leading index, which measures the future economic activity, rose to 104.1 in June from 102.6 in May.

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Weekly price action formed a bull candle carrying higher high-low, indicating follow through strength that augurs well for continuance of upward momentum. Index sustaining above 16300 would lead to extended rally towards 16600 in coming sessions as it happens to be the 138.2% extension of the long 2-months consolidation (15450- 15962). Hence temporary breather from here on should be capitalised as Index cool off the overbought conditions NIFTY CHART

NIFTY OPTIONS OPEN INTERESTS DISTRIBUTIONS

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Weekly price action formed a strong bull candle with a higher high-low and is in the process to resolute breakout from eight weeks prolonged consolidation (36000-34500) indicating resumption of primary up trend. Going ahead it can be expected that Index is likely to head towards the 36600 in the coming sessions as it happens to be the confluence of March 2021 high and the 138.2% external retracement of the current BANK NIFTY CHART breather (35810-33908)

SECTOR PERFROMANCE

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INDIAN ECONOMY NEWS

The Reserve ’s monetary policy committee on Friday kept the key interest rates unchanged for a seventh straight meeting, while retaining an accommodative stance to help revive the economy amid coronavirus-related stress.

After Vodafone and Cairn Energy setbacks, Union government on Thursday moved to end retrospective tax by amending Income Tax Act .

The National Highways Authority of India (NHAI) has incurred an estimated revenue loss of Rs 3,512.62 crore in financial year 2020- 21, due to COVID-19- related restrictions, Parliament was informed on Thursday.

Prime Minister Narendra Modi on Friday will launch a national effort to achieve the target of $400 billion worth merchandise exports in the current fiscal. India has met nearly a third of its annual target in the first four months of 2021-22.

The Services Purchasing Managers' Index, compiled by IHS Markit, rose to 45.4 in July from 41.2 in June it stayed firmly below the 50-level separating growth from contraction for a third month. (BS)

India's e-commerce market continues to grow at 5 per cent year- on-year, with an estimated revenue of USD 56.6 billion in the financial year 2020-21, despite the COVID-19 pandemic, according to IT industry body Nasscom. (BS)

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CORPORATE NEWS

Aurobindo Pharma is looking to commercialise a COVID-19 vaccine, build a portfolio of biosimilar products, expand API production as part of its growth plans going ahead, as per company's annual report for 2020-21.

Tata Motors said it has joined hands with Common Service Centre Scheme (CSC) e-Governance Services India in order to expand sales of its commercial vehicles in the rural areas.

Dr Reddy's Lab has entered into a definitive agreement with BioDelivery Sciences International, Inc., to sell its US and Canada territory rights for Elyxyb to the US-based firm.

Borosil Renewables to increase production capacity of its third furnace (SG3), being installed at its manufacturing facility at Bharuch, Gujarat, from 500 MT to 550 MT per day. The expansion will cost company Rs 600 crore.

Ramkrishna Forgings has received its first ever order in EV segment from a Foreign Multinational Tier 1 OEM in India. The order marks beginning of a new segment for the Company having possibilities for global expansion.

Britannia Industries will gradually undertake price hike of its products to offset a sharp rise in cost, amid uncertainty arising out of the COVID-19 pandemic. The company, which is being cautiously optimistic, has infused Rs 130 crore in capacity building in the current fiscal.

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MAJOR BULK DEALS

• Ujjivan Fin. Servc. Ltd. : Tt Emerging Markets Unconstrained Fund Buy 882786 Shares @ Rs. 240 02.08.21 • Maximus : Escorp Asset Management Limited Buy 66312 Shares @ Rs. 121.94

• Ugrocap : Abakkus Growth Fund 1 Sell 1042599 Shares @ Rs. 03.08.21 119.02 • Bapack : Industrial Promotoin & Investment Corpo. Of Orissa Ltd. Sell 69915 Shares @ Rs. 252.37

• Limited : Hulst B V Sell 3350000 Shares @ Rs. 4738.67 • Coforge Limited : Nomura India Investment Fund Mother Fund 04.08.21 Buy 350000 Shares @ Rs. 4710 • Hsg Fin Ltd : Bnp Paribas Arbitrage Sell 3174056 Shares @ Rs. 280.44

• Gokaldas Exports Limited : Pramerica Mutual Fund Buy 296323 Shares @ Rs. 218.62 • Sbilife : Ca Emerald Investments Sell 19000000 Shares @ Rs. 1130 05.08.21 • Graphite : Emerald Matrix Holdings Pte. Ltd Buy 1396841 Shares @ Rs. 740 • Graphite : Krishna Kumar Bangur Sell 1396841 Shares @ Rs. 740 • Abansent : Astute Foodstuff Trading L.L.C Buy 543859 Shares @ Rs. 103.55

• Greenlam Industries Ltd. : Idfc Mutual Fund A/C Idfc Flexi Cap Fund Sell 400000 Shares @ Rs. 1350.1 06.08.21 • Mold-Tek Packaging Ltd : Alps Kotak India Growth Fund Buy 252000 Shares @ Rs. 517.99

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Q1FY22 RESULT ANALYSIS

Housing Development Finance Corporation Ltd.: Net Revenue at Rs. 30990.6 crore, +3.5% YoY and -13.3% QoQ. Net Profit at Rs. 5310.9 crore, +30.9% YoY and -6.3% QoQ.

State Bank Of India: NII at Rs. 27638.4 crore, +3.7% YoY and +2.1% QoQ. Net Profit at Rs. 6504.0 crore, +55.3% YoY and +0.8% QoQ. GNPA at 5.32x, Vs 5.44x YoY and 4.98x QoQ. NNPA at 1.77x, Vs 1.86x YoY and 1.50x QoQ.

Bharti Airtel Ltd.: Net Revenue at Rs. 26853.6 crore, +12.2% YoY and +4.3% QoQ. EBITDA at Rs. 12980.3 crore, +24.7% YoY and +5.3% QoQ. EBITDA Margin at 48.3%, +486 bps YoY and +44 bps QoQ. Net Profit at Rs. 941 . 4 crore, Rs. -15191.2 crore YoY and -37.7% QoQ.

Adani Green Energy Ltd.: Net Revenue at Rs. 977.0 crore, +25.5% YoY and - 0.9% QoQ. EBITDA at Rs. 754.0 crore, +30% YoY and +21.4% QoQ. EBITDA Margin at 77.2%, +268 bps YoY and +1419 bps QoQ. Net Profit at Rs. 219 .0 crore, +906.7% YoY and +110.6% QoQ.

Adani Enterprises Ltd.: Net Revenue at Rs. 12578.8 crore, +138.9% YoY and -7% QoQ. EBITDA at Rs. 796.4 crore, Rs. -64.0 crore YoY and -11.9% QoQ . EBITDA Margin at 6.3%, +512 bps YoY and -35 bps QoQ. Net Profit at Rs. 265.6 crore, Rs. -65.7 crore YoY and -20.1% QoQ.

Titan Company Ltd.: Net Revenue at Rs. 3473.0 crore, +75.5% YoY and - 53.7% QoQ. EBITDA at Rs. 137.0 crore, Rs. -253.0 crore YoY, Rs. 817.0 crore QoQ. Net Profit at Rs. 18.0 crore, Rs. -297.0 crore YoY, Rs. 568.0 crore QoQ.

Adani Ports and Special Economic Zone Ltd.: Net Revenue at Rs. 4556 .8 crore, +98.8% YoY and +26.3% QoQ. EBITDA at Rs. 2231.7 crore, +63.2% YoY and -3.4% QoQ. EBITDA Margin at 49%, -1068 bps YoY and -1508 bps QoQ. Net Profit at Rs. 1341.7 crore, +77% YoY and +1.6% QoQ.

Dabur India Ltd.: Net Revenue at Rs. 2611.5 crore, +31.9% YoY and +11.8% QoQ. EBITDA at Rs. 552.0 crore, +32.5% YoY and +24.8% QoQ. EBITDA Margin at 21.1%, +10 bps YoY and +220 bps QoQ. Net Profit at Rs. 438.3 crore, +28.4% YoY and +16.2% QoQ.

Mahindra & Mahindra Ltd.: Net Revenue at Rs. 19171 .9 crore, +60.2% YoY and -10.6% QoQ. EBITDA at Rs. 987.5 crore, -53.5% YoY and -74.6% QoQ. EBITDA Margin at 5.2%, -1261 bps YoY and -1295 bps QoQ. Net Profit at Rs. -331.7 crore, Rs. 119.8 crore YoY, Rs. 1634.9 crore QoQ.

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FII & DII INVESTMENT (Rs. Cr.)

DATE FII CASH DII NET

F&O STOCKS TOP 10

BEST PERFORMERS WORST PERFORMERS

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STOCKS 52 WEEK HIGH/LOW

WEEKLY HIGH WEEKLY LOW

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Indian rupee strengthened last week against the dollar, lower oil prices supported the domestic unit to rise towards 74.00 from 74.95. On technical ground elevated support for the currency is at 73.50 (50DMA), breach of which would lead rupee to rise sharply towards 72.50 in coming days

USD INR CHART

CURRENCIES VS INR

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TREASURY AND MONEY MARKET

BANKING UPDATES

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PRECIOUS METALS AND AGRI COMMODITIES

METAL AND ENERGY

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Prices are presently consolidating at the upper quadrant of the range. The overbought placement of the oscillator are on a cool-off period. Presently Index is not indicating or displaying any signs of exhaustion which indicates of an extended rally in the Index. Moving averages too are inclining higher to support the firm acceleration. Immediate support is seen at 200 which can be gauged from previous swing high. CRB INDEX CHART

Crude Oil declined last week as concerns rises over imposition of travel restrictions in order to curb the spread of the COVID-19 Delta variant. However, rising tensions in the Middle East provided a floor for the commodity. Going ahead it may continue to witness rangebound price action unless there are fresh triggers. However general bias may be on the downside amid demand concerns

BRENT CRUDE OIL CHART

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CORPORATE ACTION DIVIDEND

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CORPORATE ACTION

BUYBACK

BONUS ISSUE

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CORPORATE ACTION STOCK SPLIT/ CONSOLIDATION

OPEN OFFER

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CORPORATE ACTION RIGHTS ISSUE

DELISTING

OTHER

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GLOBAL ECONOMIC CALENDER

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Ashika Stock Broking Limited (“ASBL”) started its journey in the year 1994, and is presently offering a wide bouquet of services to its valued clients including broking services, depository services and distributorship of financial products (Mutual funds, IPO & Bonds). It became a “Research Entity” under SEBI (Research Analyst) Regulations 2014 in the year of 2015 (Reg No. INH000000206).

ASBL is a wholly owned subsidiary of Ashika Global Securities (P) Ltd., a RBI registered non-deposit taking NBFC Company. ASHIKA GROUP (details enumerated on our website www.ashikagroup.com) is an integrated financial service provider inter alia engaged in the business of Investment Banking, Corporate Lending, Commodity Broking, Debt Syndication & Other Advisory Services.

There were no significant and material disciplinary actions against ASBL taken by any regulatory authority during last three years except routine matters.

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