Opening Bell

August 5, 2021

Market Outlook Today’s Highlights

Indian markets are likely to open flat to positive on the back Results: Cipla, Escorts, Bajaj Consumer, Gail, of mixed global cues, led by optimism on an economic Thermax, Ipca, Ador Welding, Hikal, Birla recovery and on expectations of dovish policy from the Corp, NCC, Accelya, Brigade, Caplin Point, Reserve Bank of India on Friday. Quess Corp, Gujarat Gas, Narayana Hrudayalaya, Somany

Index Movement

Markets Yesterday 55000 17000

. Domestic markets ended higher tracking gains in BFSI 52000 16000 stocks amid positive global cues 49000 15000

46000 14000 . US markets ended mixed amid release of macroeconomic 43000 13000 data and corporate earnings results 40000 12000

8-Jul 5-Jul

1-Aug 4-Aug

11-Jul 17-Jul 23-Jul 29-Jul 20-Jul 26-Jul 14-Jul

BSE (LHS) NSE (RHS) Key Developments

. Cipla's revenues are expected to grow 11% YoY to | 4822 Close Previous Chg (%) MTD(%) YTD(%) P/E (1yrfwd) crore, mainly due to 20% growth in domestic formulations Sensex 54,370 53,823 1.0 3.4 13.9 26.5 Nifty 16,259 16,131 0.8 3.1 16.3 24.8 to | 1930 crore. US formulations is expected to grow mere 1.3% YoY to | 1034 core. EBITDA margins are expected to decline 363 bps YoY to 20.5% mainly due to increase in Institutional Activity other expenditure. EBITDA is expected to de-grow 5.7% CY19 CY20 YTD CY21 Yesterday Last 5 Days YoY to | 989 crore. Subsequently, net profit is expected to FII (| cr) 40,893 64,379 13,748 2,829 -6,413 decline 7.5% YoY to | 534 crore DII (| cr) 44,478 -28,544 16,265 -411 7,132 . We expect Gujarat Gas' revenues to increase 165.1% YoY in Q1FY22 on account of higher volumes as well as World Indices – Monthly performance realisation. Volumes are expected to jump 143.8% YoY to BSE NSE France Nasdaq Germany 54,370 16,259 6,746 14,781 15,692 10.1 mmscmd as volumes were impacted by nationwide lockdown in base quarter. On a QoQ basis, volumes are 3.6% 3.4% 2.7% 1.0% 0.2% expected to decline 16.8%. Gross margins are expected to Dow Jones Kospi U.K. Shanghai Nikkei 34,793 3,280 7,124 3,477 27,584 dip | 1.3/scm to | 8.1/scm. On a QoQ basis, we expect 0.0% 0.0% -0.6% -1.2% -4.2% gross margins to increase by | 1/scm due to a drop in gas costs. EBITDA/scm is expected at | 5.5/scm, up | 0.4/scm

YoY and | 0.6/scm QoQ. Subsequently, we expect PAT at | 320.5 crore, up 446% YoY

Nifty Heat Map

2,676 1,750 715 457 1,465 HDFC Ltd Kotak Bank ICICI Bank SBI HDFC Bank 4.8% 3.8% 3.5% 2.3% 2.1% 754 940 4,769 747 Reliance 2,104 Axis Bank Cipla Dr Reddy JSW Steel 2.1% 1.2% 1.0% 0.9% Ind. 0.8%

1,416 175 1,137 Bajaj 6,359 145 Tata Steel Power Grid SBI Life Coal India 0.6% 0.5% 0.5% Finance 0.4% 0.3% Markets Today (Updated till yesterday) (Not Updated-Technical Error) 675 118 3,578 3,832 1,040 HDFC Life NTPC Britannia HCL Tech 0.2% 0.2% 0.1% 0.1% 0.0% Commodities Close Previous Chng (%) MTD(%) YTD(%) Gold (|/10 gm) 47,800 48,045 -0.5 -0.1 -4.7 Indusind 1,021 Shree 29,133 Asian 3,019 2,642 3,274 Eicher TCS Silver (|/kg) 67,695 67,889 -0.3 -0.2 -0.6 Bank Cement Paints -0.1% -0.2% -0.3% -0.3% -0.3% Crude ($/barrel) 73.3 72.9 0.5 -4.0 41.5 1,649 2,377 597 117 2,806 Copper ($/tonne) 9,675 9,701 -0.3 -0.3 24.9 Infosys HUL Wipro ONGC Hero Moto -0.4% -0.4% -0.4% -0.5% -0.5% Currency USD/INR 74.3 74.2 0.1 0.2 -1.6 766 209 1,623 785 Bajaj 14,187 M&M ITC L&T UPL EUR/USD 1.2 1.2 0.1 0.1 -2.7 Finserv -0.6% -0.6% -0.7% -0.7% -0.8% USD/YEN 109.2 109.1 0.1 0.5 -5.4 1,217 105 4,964 Bharti 574 Sun 786 ADRs TechM IOC Divis Lab -0.8% -0.8% -0.9% Airtel -1.0% Pharma -1.1% HDFC Bank 70.7 70.6 0.2 0.2 -2.1 ICICI Bank 18.4 18.6 -1.0 -1.0 23.9 Tata 759 7,750 18,057 7,103 457 Ultratech Nestle Maruti BPCL 19.8 19.7 0.8 0.8 57.5 Consum -1.2% -1.2% -1.2% -1.3% -1.3% Infosys 22.3 22.1 0.7 0.7 31.4 443 695 Tata 298 1,800 1,555 Hindalco Adani Ports Titan Grasim Ind Dr Reddys Labs 62.6 62.6 0.1 0.1 -12.2 Motors -1.4% -1.5% -1.8% -2.2% -2.4% Wipro 8.4 8.3 0.8 0.8 48.7

Opening Bell ICICI Direct Research

Key Data Points Exchange Cash Turnover (| crore) Key Economic Indicator Period Latest Prior Values 100000

RBI Cash Reserve Ratio N/A 4.00% 4.00%

67,626 74,356 76,758 66,849 69,031 76,694 RBI Repo Rate N/A 4.00% 4.00% 50000

RBI Reverse Repo Rate N/A 3.35% 3.35%

6,311

5,980

5,411

5,074 4,997 CPI YY Jun 6.26% 6.30% 4,954 0

Current Account Balance Q4 -8.1bln $ -2.2bln $ 28-Jul 29-Jul 30-Jul 2-Aug 3-Aug 4-Aug Exports - USD Jun 32.5 bln$ 32.3 bln$ BSE Cash NSE Cash FX Reserves, USD Final Jun 610 bln$ 598 bln$

GDP Quarterly yy Q4 1.60% 0.40% GDP Annual FY21 -7.30% 4.20% NSE Derivative Turnover (| crore) Imports - USD Jun 41.8 bln $ 38.6 bln $ 15000000 Industrial Output yy May 29.3% 134.4% Bell Opening

10000000 9,627,514

Manufacturing Output May 34.5% 197.1% 7,167,865 6,915,352

Trade Deficit Govt - USD Jun -9.4bln $ -6.3bln $ 4,710,258

5000000 2,884,874 WPI Food yy Jun 6.7% 8.1% 2,858,026 WPI Fuel yy Jun 32.8% 37.6% 0 WPI Inflation yy Jun 12.1% 12.9% 28-Jul 29-Jul 30-Jul 2-Aug 3-Aug 4-Aug WPI Manuf Inflation yy Jun 10.9% 10.8% NSE Derivative

Corporate Action Tracker Sectoral Performance – Monthly Returns (%) Security name Action Ex Date Record Date Status Price (|) Real Estate 19.7 Jagran Prakashan Buyback Ongoing Metals 13.8 Navneet Education Buyback Ongoing BSE Small Cap 5.0 Infosys Buyback Ongoing IT 4.7 Capital Goods 4.7 Gujarat Pipavav Port Dividend 5-Aug-21 2.40 Banks 4.0 Granules India Dividend 5-Aug-21 6-Aug-21 0.25 BSE Midcap 2.8 Hester Biosciences Dividend 5-Aug-21 10.00 Consumer Durables 1.7 PSU 1.6 INEOS Styrolution India Dividend 5-Aug-21 10.00 Healthcare 1.4

Indian Oil Corporation Dividend 5-Aug-21 1.50 FMCG 0.3

Power -1.3 Research Equity Retail Jubilant Pharmova Dividend 5-Aug-21 6-Aug-21 5.00

Oil & Gas -2.0 – Maruti India Dividend 5-Aug-21 45.00 Auto -4.1 NCC Limited Dividend 5-Aug-21 0.80 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 Sonata Software Dividend 6-Aug-21 10.00 (%)

ICICI Securities Key News for Today Company/I News View Impact ndustry Hindustan HPCL's topline declined 8.9% QoQ to | HPCL's results were better than estimates Petroleum 77585.5 crore in Q1FY22 as marketing sales on the profitability front. The company did Corporatio fell 14% QoQ to 8.5 MMT due to travel not disclose details on inventory gains. n (HPCL) restrictions. On the refining front, reported However, refining segment's overall GRMs were at US$ 3.3/bbl while crude performance was below estimates while throughput was 2.5 MMT. EBITDA came in at marketing segment's profitability must | 3193 crore, down 31.6% QoQ). have been better than expected as per our Subsequently, reported PAT was at | 1795 understanding. In the current quarter crore, down 40.5% QoQ (Q2FY22-TD), faster demand recovery (mainly in diesel) with easing restrictions will be key. Global product spreads are still at lower levels and likely to affect GRMs. Improvement in product cracks and recovery in fuel demand will be important for HPCL's performance in the near term

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Titan Titan reported Q1FY22 results that were The quarter was significantly disrupted Company ahead of our estimates mainly on account of owing to nearly zero sales in May but with gold bullion sale worth | 424 crore. As guided gradual lifting of restrictions on stores, the by the management in its pre-quarterly sales bounced back sharply towards Q1 update, the jewellery division (excluding gold end with good momentum till date. bullion sale) reported 115% YoY revenue Despite various headwinds, Titan has, over growth (~63% recovery rate on base of the years, withstood challenges and Q1FY20). Overall revenues grew by 75% YoY emerged as a resilient player. Though the to | 3473 crore (I-direct estimate: | 3015 near term may present a volatile demand crore). Reported gross margins improved 50 scenario, we believe Titan is a structural bps YoY to 22.4% but the management growth story and appears to be a key indicated that underling gross margins beneficiary of the unorganised to (excluding impact of ineffective hedging and organised shift in the Indian jewellery bullion sale) were significantly better owing to market favourable product mix. Sharp curtailment of expenses (marketing and other expenses down 51% and 38% QoQ, respectively) resulted in the company reporting EBITDA margins of 3.9% (I-direct estimate: 3.6%). PBT for Q1FY22 was at | 39.0 crore (I-direct estimate: | 19.6 crore, Q1FY21: loss of | 357 crore). Higher tax rate (53%) resulted in the company reporting PAT of | 18.0 crore (Q1FY21 loss of | 294 crore)

Adani Total ATGL's revenue were at | 522.3 crore, up Exit volume in Q1FY22 was 1.79 mmscmd Gas (ATGL) 152.8% YoY (down 15% QoQ). Sales volume against average volume of 1.85 mmscmd was 1.5 mmscmd, ~118% YoY. However, on in Q4FY21. The company reported healthy QoQ basis, sales volume de-grew ~17% due gross margins of | 19.8/scm, up| 0.8/scm to travel restrictions. EBITDA increased YoY due to better realisation. On QoQ 167.7% YoY (and 1.2% QoQ) to | 207.1 crore. basis, gross margins improved | 2.8/scm EBITDA improvement QoQ was due to lower on account of low gas costs. Margin gas costs. Subsequently, PAT was | 138.4 outlook with steady pickup in sales volume crore, up 198.7% YoY (and down 4.4% QoQ) will be important, going ahead

Tata Topline came in at | 4103 crore, down 6.8% Tata Communications remains a key Communic YoY & up 0.7% QoQ. Data revenues (forming beneficiary of new normal of work from ation ~76% of the revenues) declined 2.2% YoY home, increased conferencing needs (up 0.6% QoQ), largely due to slower deal thereof and overall digitisation at conversion and moderation of UCC traffic. enterprise levels. We seek management Consolidated EBITDA came in at | 986 crore, commentary on the growth trajectory down 5.3% YoY, 2.9%QoQ due to provision ahead, which has tapered off of late for the license fee on revenue from pure internet services. The consequent margin was at 24% (up 37 bps YoY, down 89 bps QoQ). The company reported higher PAT of | 296 crore (up 15% YoY and down 1% QoQ) aided by lower depreciation and tax rate

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Vardhman For Q1FY22, Vardhman Special Steel (VSSL) VSSL’s topline decline on a QoQ basis was Special reported a topline of | 330 crore, down 1% due to a sequential decline in sales Steel QoQ. EBITDA for the quarter was at | 51 crore volumes. During Q1FY22, VSSL reported down 2% QoQ. Ensuing PAT for the quarter sales volumes of 43705 tonnes compared was at | 28 crore, up 5% QoQ to 47828 tonnes in Q4FY21. Despite decline in sales volumes, VSSL reported an increase in EBITDA/tonne on a QoQ basis. During Q1FY22, VSSL reported an  EBITDA/tonne of |11684/tonne compared to an EBITDA/tonne of |10928/tonne in Q4FY21. Sequential improvement in EBITDA/tonne augurs well Time The company has received two new orders of New order of LPG cylinders from domestic Technolpas worth | 35 crore and ~ | 7 crore for its Type OMCs was long awaited. The current order t IV CNG cascade and LPG Cylinders from is on a trial basis of LPG composite OMCs and a leading gas distribution cylinder in India where the addressable company respectively market size is ~28 crore units and Time Techoplast is the market leader in the same category. For the Type IV CNG cascade, the company’s order book is at | 85 crore (including new order). The company expects the addressable market size of the said segment to be | 20,000 crore in the next eight to 10 years with the expansion of CNG gas filling stations. Time Technoplast is the only Indian company manufacturing CNG cascade and, therefore, is likely to benefit the most from this opportunity

Apollo ATL’s consolidated QoQ net sales decline in Q1FY22 performance was ahead of Tyres (ATL) Q1FY22 was limited to just 8.8% (| 4,584 estimates on the topline and bottomline crore), with APMEA (largely India) revenues front but sharper than expected gross down 11.3% and Europe revenues flat margin decline (lower by 236 bps QoQ in sequentially. Margins were down 385 bps consolidated books) led to miss at the QoQ to 12.4%. Consolidated PAT at | 128 margin level. In particular, standalone crore was lower by 55.5% QoQ gross margins fell by a steep ~440 bps QoQ, ahead of comparable peers, possibly due to worse product mix (high exposure to domestic CV space)

HG Infra HG Infra reported strong set of numbers We have a positive outlook on HG Infra Engineerin during Q1FY22 with standalone revenue mainly on account of a) its comfortable g Ltd improving 206% YoY to | 911.7 crore, albeit order book position, b) better revenue on the washout base of Q1FY21. On a QoQ visibility, c) healthy operating margin of basis, the topline declined merely by 11.3% 15%+, d) comfortable balance sheet despite disruptions in executions caused by position, e) controlled working capital second wave of Covid-19. EBITDA margin cycle (driven by apt mix of remained at an elevated level of 16.3% (down private/government projects coupled with 20 bps YoY). Effectively, EBITDA at | 148.5 efficient project management) and f) crore, was up 202% YoY. At net level, robust healthy return ratios operating performance translated into ~6x YoY jump in PAT (to | 88.8 crore)

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Sumitomo Sumitomo Chemical reported topline growth Going ahead, increase in the outsourcing Chemical of 20.7% YoY to | 782 crore against our from SCC Japan would aid export expectations of | 773.2 crore. The revenue business growth. Further higher exports to from agrochemical segment was up 18.4% nufarm would diversify business risk, to a YoY to | 728.5 crore while the same from certain extent. This would improve other segment remained at | 53.5 crore financial profile of the company in the (+65.3% YoY). We believe better volume medium to long run growth along with rise in the realisation owing to higher RMAT supported the growth for the quarter.OPM for the quarter expanded 90 bps YoY to 19.2 % leading to EBITDA growth of 26% YoY to | 149.8 crore against our estimates of | 160.6 crore. The EBITDA from agrochemical business remained at | 149.4 crore (+27% YoY), while the same from other segments was | 0.4 crore (-68% YoY). Higher other income (+107% YoY) boosted bottomline growth, which was up by 33% YoY to | 105.7 crore against our estimates of | 112.9 crore Butterfly BGAL's financial performance in Q1FY22 was In spite of significant increase in raw Gandhimat impacted owing to pandemic related material prices the company has been able hi (BGAL) lockdown in Q1FY22. The company’s to maintain a healthy gross margin of operations were shut for five weeks from May around 40%. The inventory days have 10, 2021. Revenue de-grew on a QoQ basis increased from 75 days in FY21 to 130 by 30% to | 144.4 crore (YoY growth of 88%). days in Q1FY22 (Q1FY21: 183 days) owing Gross margins declined 100 bps QoQ to 40% to the impact of lockdown which resulted (decline of 280 bps YoY). Negative operating in lower sales during the quarter. Overall leverage led to employee cost as percentage working capital days have increased from of sales increase QoQ by 332 bps but the 36 days in FY21 to 80 days in Q1FY22. The management through cost control measures company expects the inventory days to was able to reduce other expense as normalise once the revenue picks up from percentage of sales by 330 bps to 20.4%. Q2FY22 onwards. The company has EBITDA margin declined 120 bps QoQ to maintained a revenue growth guidance of 5.4% with EBITDA being lower by 43% QoQ 10-15% in FY22 with EBITDA margin to | 7.8 crore (Q1FY21: EBITDA loss of | 4 similar to FY21 (~9%). The company crore). Consequently, net profit declined by continues to focus on maintaining balance 89% QoQ to | 1 crore (Q1FY21 : net loss of | sheet strength and expects to keep its net 8.6 crore) working capital days in the range of 35-45 days and maintain net debt to EBITDA of less than 0.5x in FY22

Greenply Greenply Industries reported robust growth Greenply continues has lagged behind Industries on YoY, on a depressed base (~ 162% YoY Century in plywood segment as well as decline in Q1FY21) but a sharp decline on lack of MDF leg of growth. Consequently, QOQ basis owing to second wave led the company has announced foray into lockdowns. The topline at | 396.7 crore, was MDF with 800 CBM/day capacity greenfield up by 96.5% YoY/down 34.3% QoQ with project at Vadodara at a capex of | 548 98.3%YoY growth/41% QoQ decline in crore. Management commentary on Plywood revenues at | 213.3 crore with recovery and competitive advantage (if volume, up 88.6%YoY but down 44% QoQ). any) vs. existing MDF players will be key The EBITDA margins was down by 640 bps at monitorable 5.1%. The PAT came in at | 4 crore vs. loss in base quarter and down 86% QoQ owing to weak revenues and margins

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Hindalco For the quarter, Novelis net sales increased Hindalco's wholly owned subsidiary (Novelis) 59% YoY to US$3.9 billion. Adjusted EBITDA Novelis reported steady performance for came in at US$555 million, up 119% YoY. The Q1FY22. For the quarter, Novelis reported increase in Adjusted EBITDA is primarily due sales volume of 973 KT , up 26% YoY (our to higher volume and favourable product mix, estimate of 950 KT). Novelis achieved an as well as metal benefits and a $47 million Adjusted EBITDA/tonne of US$570/tonne gain related to a favourable decision in a in Q1FY22 as compared to US$327/tonne Brazilian tax litigation, partially offset by in Q1FY21 and US$514/tonne in Q4FY21. higher costs resulting from higher production Excluding the non-recurring tax litigation volume and inflationary cost pressures. benefit, Adjusted EBITDA per tonne Excluding the non-recurring tax litigation equates to US$522/tonne in Q1FY22 (our benefit, adjusted EBITDA stood at US$508 estimate of US$510/tonne) million (our estimate of US$485 million). The ensuing net income from continuing operations stood at US$303 million, up 597% YoY. Excluding special items in both years, Q1FY22 net income from continuing operations was US$260 million, as compared to $22 million in the prior year

Mayur For Q1FY22, MUL’s consolidated net sales The company’s showing was Uniquoters were lower by 33.8% QoQ to | 118.1 crore. disappointing, with the quantum of margin (MUL) Margins took a beating, dropping by 1450 bps decline coming as a negative surprise. sequentially to 14.9% with consequent PAT Sequential drop in margins was due to decline placed at 59.6% QoQ to | 14 crore sharp cost increases under all heads, with gross margin contraction placed at ~860  bps. Going forward, management commentary on return to earlier outlined sustainable margin levels (>24%) is a key monitorable

Key developments (Continued…)

 Escorts is expected to report a subdued performance in Q1FY22. Total tractor sales came in at 25,935 units (down 20.4% QoQ) with construction equipment volumes at 606 units (down 62% QoQ). Consequently, total operating income is expected at | 1,621 crore (down 26.7% QoQ). EBITDA margins are seen at 11.4%, down 420 bps QoQ, driven by spike in input costs as well as negative operating leverage. Ensuing PAT is expected at | 145 crore (down 45.5% QoQ)  Gail’s operational performance is expected to improve YoY in Q1FY22 mainly on account of gas trading and petchem segments. On the gas business front, gas transmission volumes are expected to increase 14.2% YoY to 103 mmscmd with its EBIT at | 839.5 crore. However, transmission volume expected to fall 6.2% QoQ. For gas trading segment, we expect EBIT at | 381.6 crore against EBIT loss of | 545.5 crore on account of increase in spot LNG prices. On the LPG liquid hydrocarbon front, EBIT is expected to increase 1314% YoY to | 623.2 crore due to higher realisation while Petchem segment is expected to report EBIT of | 221.4 crore  NCC to report Q1FY22 numbers today. We expect topline to grow 58.8% YoY to | 1871.9 crore, on a depressed base (~46% decline in Q1FY21), albeit a sequential decline of 28% due to Covid second wave impact. EBITDA margin is expected at 11%, (up 120 bps YoY on a benign base). The reported PAT is expected to grow ~233% YoY to | 56.4 crore, driven by operating performance. Key monitorable is the management commentary on order inflows, execution ahead and margins impact owing to commodity price rise, status on Andhra Pradesh orders, receivables and net debt  For Q1FY22E, we expect Thermax to report revenues | 951 crore, up 43% YoY on a low base factoring in impact of second wave of pandemic. We expect EBITDA at | 66.6 crore with EBITDA margins at 7.0% factoring in pandemic and commodity price impact. Adjusted PAT is expected at | 44.2 crore partly aided by tax adjustment in base quarter. It announced order inflows worth ~ | 250 crore, as on date for the quarter. In terms of financial performance

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 Brigade Enterprises to report Q1FY22 numbers today. We expect sales volumes to grow ~50% YoY to 6.3 lakh sq ft, on a depressed base, albeit a 62% QoQ decline on account of second wave led disruptions. On the financial front, we expect the topline to grow 118.8% YoY to | 445 crore, on a washout base. The performance is expected to be weak QoQ (down 43.8%) owing to lower revenue recognition in residential, along with hospitality and mall portfolio performance, which were impacted by the second wave. Overall, at the PAT level, we expect | 3.7 crore vs. loss in Q1FY21. Key Monitorable: Sales volume and outlook ahead  Expected to be a subdued quarter for IPCA amid one-off export supply opportunity of HCQS in 1st wave of Covid. Revenues are expected to decline 14% YoY to |1321 crore mainly due to 11.5% decline in export formulations to | 410 crore and 46% decline in API segment to | 278.1 core. Domestic formulations are expected to grow 15% YoY to |563 crore. EBITDA margins are likely at 22.2% against 38.3%/22.2% Q1FY21/Q4FY21. Subsequently, net profit is expected to decline 53.5% YoY to | 207.6 crore  Since there has been a revival in a construction activity across the globe, we expect flat glass demand to also have improved along with demand for soda ash. We expect Tata chemical’s export business for North America unit to have performed well. Thus, it should have provided a respite to the overall performance. Apart from this, better demand from container glass should also have aided overall growth for the quarter along with base segment such as detergent should have performed at normalcy as expected. This, in turn, should lead overall topline growth of 22% YoY to | 2868 crore. OPM can likely to expand by 208 bps YoY to 17.4% resulting in EBITDA growth of 38.8% YoY to | 499.2 crore. PAT is expected to remain at | 134 crore. Key monitorable: Growth in North America and Magadi along with EBITDA/tonne across geographies for basis chemical business. Progress in the HDS and neutraceuticals business will be key to watch  SBI reported steady operational performance with stress accretion being in-line with industry. NII up 3.7% YoY to | 27638 crore with domestic NIMs improving ~4 bps QoQ to 3.15%. Other income was up YoY to |11803 crore boosted by recovery of | 2805 crore. Opex declined 13% QoQ while PAT came at | 6504 crore, up 55% YoY. GNPA increased by 34 bps QoQ to 5.32% as slippages were elevated at |15666 crore. Restructured book up ~28 bps QoQ to ~1% of loans. Provision buffer increased to | 29816 crore versus |25376 crore QoQ strengthening the balance sheet. Covid provision stood at | 9065 crore. Overall loan growth came at 5.8% YoY to | 25.24 lakh crore (in-line with industry trends). Deposits grew 8.8% YoY to | 37.2 lakh crore  Sonata Software reported muted set of Q1FY22 numbers on IT services side compared to mid-cap peers. IT service segment dollar revenues increased 1.5% QoQ to US$44.5 million (| 324 crore). IT service core EBITDA margin (excluding other income) declined 115 bps QoQ to 21.3%. Domestic revenues increased 24.3% QoQ to | 946.2 crore but EBITDA margin decreased 75 bps QoQ to 3.4%. Hence, overall revenues increased 17.5% QoQ to | 1,268.5 crore and EBITDA margin decreased 162 bps QoQ to 8%. Overall PAT increased 4% QoQ to | 86.7 crore due higher other income (led by reversal of provisions).  Bosch Ltd posted muted Q1FY22 numbers. Net sales declined by 24.1% QoQ to | 2,444 crore (automotive down 22%, others down 34%), with margins coming off by 669 bps QoQ to 12.5%. Sequential decline in margins appears larger on account of exceptionally low employee costs (| 135 crore vs. usual run rate of | 150- 200 crore), which have normalised in Q1FY22. Encouragingly, gross margins expanded by ~250 bps QoQ. PAT decline stood at 46.1% QoQ to | 260 crore  Gabriel India posted muted Q1FY22 results. Net sales declined by 21.9% QoQ to | 453.6 crore amid ~33% OEM volume decline. EBITDA margins shrunk 300 bps QoQ to 5.5% on account of negative operating leverage, with gross margins flat QoQ. Consequent PAT at | 12 crore was lower by 56.7% QoQ  Kumar Mangalam Birla has stepped down as non-executive director and non-executive chairman of the board of Vodafone Idea with effect from close of business hours on August 4, 2021. The board, in the meanwhile, has unanimously elected current Non-Executive Director Himanshu Kapania as the non-executive chairman of the firm  Mahindra Finance saw macro sentiments turning positive with normalcy returning in July 2021, as reported in business line. The disbursement during the month stood at ~ |2,400 crore, more than doubled over a smaller base in July 2020. The collection efficiency further improved to ~95%, up from ~90% in June 2021. The NPA contract counts are showing stability and a declining trend. The Company expects a meaningful reduction in number of NPA contracts in August 2021 and September 2021 with improved mobility and customer cash flows  According to Moneycontrol, the government is preparing a relief package for the telecom sector that would be sent to the finance ministry by next week and an announcement was likely by the month-end  Dr Reddy's has sold it's US & Canada territory rights for ELYXYB (celecoxib oral solution; indicated for acute treatment of migraine) 25mg/mL to BioDelivery Sciences. In addition to the event, sales & quarterly payments, the deal includes a US$6 million upfront payment followed by US$9 million post 1 year of deal closure  CESC via its subsidiary has emerged has the highest bidder for Chandigarh Electricity Distribution company. The company quoted the winning bid at | 871 crore overcoming the likes of NTPC, Torrent Power & other bidders. The Union territory has three lakh customers, majority of which are domestic consumers  According to The Economic Times, The Competition Commission of India (CCI) has approved Carlyle Group's proposed |4000 crore investment in PNB Housing Finance making it the majority shareholder, even as the Securities Appellate Tribunal (SAT) is yet to give its judgement on the matter

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 HPCL will operate its expanded Mumbai refinery at capacity of 190 kbpd from mid-October. The company had shut the Mumbai refinery from April 1 for maintenance and capacity expansion  As per media reports (ET Auto), Mr. Shubhabrata Saha, CEO of M&M’s farm division has resigned from his position. Mr. Hemant Sikka, President of the company’s Farm Equipment section is slated to take over  Reliance Industries is planning to more than double its recycling capacity to 5 billion post-consumer PET bottles by setting up a recycled polyester staple fiber (PSF) manufacturing facility in Andhra Pradesh  Oil minister said that PSU refiners will invest | 2 trillion to increase India's refining capacity by 20% to 298 MMTPA by 2024-25  According to Moneycontrol, Coforge Promoter Hulst B V has offloaded 5.52% equity stake. It sold 33.5 lakh equity shares at | 4,738.67 per share  Huhtamaki India said in a BSE filing that ~102 employees of its Thane plants have opted for Voluntary Retirement Scheme (VRS) which will result in a one-time payout of | 31 crore for the company  Cochin Shipyard has informed the exchanges that the Indigenous Aircraft carrier has proceeded for its maiden sea trials on August 4, 2021. The vessels propulsion plants will be put to rigorous testing at the sea in addition to the trials of various navigation, communication and hull equipment  said that Suzuki Motor Gujarat would be undertaking 3 non production days in July in addition to reduction in number of daily shifts on some production lines on account of challenges being posed by semiconductor shortages

ICICI Securities | Retail Research Opening Bell ICICI Direct Research Nifty Daily Chart Technical Outlook Equity benchmark maintained their winning streak over a third consecutive session and scaled fresh all-time high of 16290. The Nifty ended Wednesday’s session at 16259, up 128 points or 0.8%. In the coming session, the index is likely to open on a positive note tracking firm Asian cues. We expect index to endure upward momentum while maintaining higher high-low. Hence, use intraday dips towards 16210-16232 to create long for target of 16321. Key point to highlight is that, the Nifty and Bank Nifty have witnessed a faster pace of retracement, highlighting inherent strength that bodes well for extension of ongoing up trend. We believe, a sustained move above 16300 would lead to extended rally paving the way towards our revised target of 16600 in coming weeks as it is 138.2% extension of mid June rally (15450-15915) projected from June high of 15915 is placed at16575. Thus temporary breather from here on should be capitalised to accumulate quality stocks amid progression of Q1FY21 result season.

Pivot Points CNX Nifty Technical Picture Index/Stocks Trend Close S1 S2 R1 R2 Nifty 50 Intraday Short Term SENSEX Positive 54369.8 54114 53858 54546 54722 Trend Up Up Nifty 50 Positive 16258.8 16194 16128 16308 16356 Support 16210-16170 15700 ACC Ltd Negative 943.1 927 910 973 1002 Resistance 16300-16350 16300 Axis Bank Ltd Neutral 3018.6 3003 2987 3044 3069 20 day EMA 0 15813 GODREJ PROPERTIE Neutral 1637.4 1613 1588 1671 1704 200 day EMA 0 14432 SBI Positive 457.0 443 429 469 481 GRANULES INDIA Positive 386.9 377 369 399 413 Advances/Declines CUMMINS INDIA Positive 894.7 883 871 917 938 Tata Motors Neutral 298.2 296 292 305 310 Advances Declines Unchanged JSW STEEL LTD Positive 747.3 738 728 756 764 BSE 1086 2176 110 BHARAT HEAVY ELE Negative 58.0 58 57 60 61 NSE 612 1410 40 TCS Positive 3274.0 3255 3236 3299 3324 HERO MOTOCORP LT Positive 2805.5 2794 2781 2827 2847 Daily Technical Calls CONTAINER CORP Neutral 692.8 684 675 709 725 Daily Technical Calls MAHINDRA & MAHIN Positive 766.3 762 758 773 780 1. Buy TCS in the range of 3270.00-3276.00 Reliance Industries Positive 2103.8 2090 2075 2117 2129 1. Buy Torrent Power in the range of 470.00-472.00 AUROBINDO PHARMA Neutral 906.6 898 890 922 936 All recommendations of July Future COAL INDIA LTD Positive 144.7 143 142 146 148

See Momentum Pick for more details

Nifty Call – Put Strike (Number of shares in lakh) – July, 2020 Intraday Derivative Strategy i) Reliance Industries Buy RELIND August Fut at | 2100.00-2105.00 CMP: 2105.10 Target 1: 2138.5 Target 2: 2192.5 Stop Loss: 2066.5

ii) Cadila Healthcare Sell CADHEA August Fut at | 588.50-589.50 CMP: 590.30 Target 1: 584.9 Target 2: 578.8 Stop Loss: 593.1

See Derivatives view for more details

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Results/Events Calendar

19 July 20 July 21 July 22 July 23 July 24 July Monday Tuesday Wednesday Thursday Friday Saturday Swaraj Engines,Mastek,ACC Bajaj Finance Ltd.,Syngene Mahindra CIE, CEAT Ultratech,Hindustan Zinc,HUL RIL, Crompton Greaves ICICI Bank Ltd. HCL Technologies,Indian Bank Asian Paints,ITDC, ICICI Securities Bajaj Finserv Ltd. Bajaj Auto,Mphasis,IEX, CSB Bank JSW Steel,USL,Federal Bank, Zee Media, MCX GTPL Hathway Shyam Metalics & Energy Sasken,Schaeffler,Rallis India South India Bank, IIFL Securities Jubilant Pharmova, SKF India, GNA Axles Nippon Life Ind Asset Manag. JSW ISPAT Special Prod. Havells India Sterlite Tech,Saregam India Yes Bank, SBI Cards, Atul Ltd ITC HDFC Life Insurance Co. Ltd. JP Trade Balance Supreme India,Polycab India Music Broadcast,Biocon US JP Manufacturing PMI 0

26 July 27 July 28 July 29 July 30 July 31 July Monday Tuesday Wednesday Thursday Friday Saturday Navin Fluorine,Vedanta Ltd. Dr.Reddy's,KPR Mill, IndusInd Bank Intellect,Mahanagar Gas, Wabco Firstsource,Dwarikesh,JyothyLab Marico, IOC, Gokaldas, Finolex, KEC IDFC First Bank Ltd. Zensar,TataMotors,L&T Oriental Hotels,Torrent Pharma Nestle,Maruti Suzuki, Birlasoft TechMahi,AjantaPhrma, Jindal SH Exide Industries, BHEL, PI Industries Sarda Energy & Minerals Ltd. Axis Bank Ltd.,Alembic, SBI Life GM Breweries, VST Ind, Filatex JM Financial Ltd.,Sagar Cement TVS Motors,IndusTwrs,Colgate,PVR Nerolac,Zydus,Vguard,Sunteck,ABFLD-Link India, Relaxo Footwear M&M FinServ, Jindal Stainless Ltd. TTK Prestige, Anup Engineering TCI Express, Nestle, Moldtek Pack Laurus Labs, MRPL, Concor, MOSL Bluedart,Jindal SAW, Bandhan Bank Vinati Organics Kotak Mahindra Bank, ApolloPipe Granules,Sanofi, DixonTech Teamlease, Coforge LICHousing, ShoppersStop, Hawkins Sun Pharma,Sunflag,Dalmia Sugar KEI Ind, Surya Roshni

02 August 03 August 04 August 05 August 06 August 07 August Monday Tuesday Wednesday Thursday Friday Saturday Castro, HDFC Ltd, OrientCem TATA Consumer, TATA Steel BSL Bosch,Sumitmo,AdaniTotlGs,Titan Escorts,GAIL,Thermax Hindalco, Bharat Ele, Abbott,TajGVK HindusthanCopper,Divis,NeogenChe Kalyani Steel Ltd., Emami Indo Count, Kajaria, Everest Ind ChamblFerti,GodrejCon,ApolloTyres Ipca, Ador Welding, Hikal,Birla corp SudarshanChem,Berger,Zee,JKTyre Bank of Baroda, AmberEnt, CUB Avadh Sugar, Varun beverages Elgi Equipments, Kakatiya, Dabur HPCL,Butterfly Gandhimati,BlueStar Cipla,NCC,Accelya,Brigade,CaplinPt Voltas, Huhtamki, GraphiteInd,M&M Affle,NRBBearings, DCB Bank US UK EU - Manufacturing PMI Inox, Bharti Airtel, Pratap Snacks Gabriel,MayurUni,BharatForge, SBI Quess Corp, Bajaj Cons, Guj Gas Astral,NatAluminium,ArvindFashion QuickHeal, AdvancedEnzyme IN Imp/Exp, TradeBal, Manu PMI JPY Services PMI Tata Comm, HG Infra, Srikalahasthi Narayana Hrudayalaya, Somany AartiIndus,Phoenix,PPAP Auto,SAIL CH Trade Bal IMP/EXP Forex

09 August 10 August 11 August 12 August 13 August 14 August Monday Tuesday Wednesday Thursday Friday Saturday ShreeCem, GSPL Trent, Ashoka Buildcon, CoalInd Pidilite,PNCInfra, Cadila, Aster DM Hero MotoCorp, Matrimony,EsabInd NCLInd, Maharashtra seamless JKCement, Sobha Shankara Building Products CAMS, , PowerGrid,Siemen Indoco Remidies, Nesco AshokLeyland,GujSidhee,TATASteel Petronet LNG, JagranPrakashan 0 Balrampur chini Motherson Sumi, Lupin Bata, Greaves Cotton MishraDhatu,NMDC,KNR,GulfOilLub AkzoNobel, Apollo Hospitals 0 Shalby Century Ply, Wonderla HEG Page Ind, Gujarat Pipavav, Natco Indraprastha Gas,TechnoEle 0 0 US CPI CESC AurobindoPhar,HesterBio,Engg. Ind AIA Engg., 0

16 August 17 August 18 August 19 August 20 August 21 August Monday Tuesday Wednesday Thursday Friday Saturday 0 0 0 0 0 0 0 US Retail Sales 0 0 0 0 IN WPI Food Fuel Inflation, Imp/Exp Industrial/Manufacturing Production 0 0 0 0 US NY Empire State Manu Index EU Unemployment Rate, GDP GB CPI, RPI, PPI 0 0 0 US Overall Net Capital Flow GB Unemployment Rate US Housing Stats EU Current Account GB Retail Sales 0

Major Economic Events this Week Result Preview

Date Event Country Period Actual Expected Company Revenue Chg(%) EBITDA Chg(%) PAT Chg(%) | Crore Q1FY22E YoY QoQ Q1FY22E YoY QoQ Q1FY22E YoY QoQ 02-Aug Manufacturing PMI IN Jul 55.3 50.5 Gujarat Gas 2,870.5 165.1 -16.3 509.0 174.0 -8.2 320.5 446.4 -8.4 Manufacturing PMI Jul 62.8 '62.6 02-Aug EU Gail India 14,786.2 22.3 -4.9 2,295.0 268.6 -10.5 1,497.9 486.3 -21.5 02-Aug Manufacturing PMI GB Jul 60.4 60.4 Brigade 445.0 118.9 -43.8 125.3 164.2 -33.6 3.7 L P -90.7 02-Aug Manufacturing PMI US Jul 63.4 63.1 Ipca 1,321.4 -13.9 18.6 293.1 -50.2 28.1 207.6 -53.5 28.8 Escorts 1,621.0 52.6 -26.7 185.0 54.5 -46.4 145.0 59.8 -45.5 02-Aug Exports (USD) IN Jul 35.17B -

02-Aug Imports (USD) IN Jul 46.40B - 02-Aug Trade Balance IN Jul -11.23B - 04-Aug Service PMI IN Jul 45.4 49.0 04-Aug Crude Oil Inventories US Jul 3.626M -3.102M

Date Event Country Period Expected Previous 05-Aug BoE Interest Rate GB Aug 0.1% 0.1% 05-Aug Construction PMI GB Jul 63.8 66.3 05-Aug Initial Job Claims US Jul 380K 400K Recent Releases 06-Aug Cash Reserve Ratio IN Aug 4.0% 4.0% Date Report 06-Aug Interest Rate Decision IN Aug 4.0% 4.0% July 19,2021 Result Update- Indo Count 07-Aug Reverse REPO Rate IN Aug 3.35% 3.35% July 17,2021 Result Update- Orient Cement 06-Aug FX Reserves, USD IN Aug - 611.15B July 17,2021 Result Update – Dabur India 06-Aug Unemployment Rate US Jul 5.7% 5.9% 07-Aug Trade Balance (USD) CH Jul 44.20B 51.53B July 16,2021 Result Update- Inox Leisure 08-Aug CPI (MoM) CH Jul - -0.4% July 16,2021 Result Update- Kajaria Ceramics

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V

Pankaj Pandey Head – Research [email protected]

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

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