Nifty Fails to Breach 16K Level

EQUITY MONTHLY REPORT August 2021

Nifty Movement Market Commentary

The benchmark indices Sensex and the Nify rose 0.2% and 0.3% respectively in July. Indian shares rose on strong quarterly earnings, led by IT stocks, as global investor sentiment calmed afer the U.S. Federal Reserve set no timeline for tapering. The market witnessed a smart pullback rally from the intra month lows. Indian indices closed higher buoyed by recovery in Asian markets afer the Chinese government tried to allay industry fears following a spate of sellofs triggered by regulatory tightening around tech companies.

The US Fed struck a dovish note afer it assured that there would be some way to go before a liquidity wind down. Index (Source: NSE) gains were contributed by metal stocks that hit record highs on expectations that strong infrastructure spending will fuel demand. The sectoral performance in the July month series was Global Indices (% change) mixed with Realty and Metal indices gaining over 16% and 13% respectively, Auto and Energy indices lost ground and shed nearly 5 %. Newly listed IPOs did very well on listing attracting even more subscriptions in the IPOs that followed.

World markets ended on a mixed note in the month of July 2021. Indonesia – Jakarta Composite, US - Dow Jones, Singapore – Strait Times, US – Nasdaq ,and Germany – DAX, were up by 1.4%, 1.3%, 1.2%, 1.2%, and 0.1% respectively while Hong Kong – Hang Seng, Chinese - Shanghai composite, Japan – Nikkei, Brazil –Bovespa and UK – FTSE were down by 10.1%, 5.4%, 5.2%, 3.9% and 0.1% respectively.

US stocks ended higher boosted by robust U.S. earnings and forecasts, while data showed the economy recovered to pre-pandemic levels in the second quarter. Index got a boost afer the US Fed said it was not yet time to start withdrawing its (Source: Investing.com) massive monetary stimulus. For the month, the S&P 500 rose 2.3%, the Dow gained 1.3% and the Nasdaq added 1.2%. The S&P 500 hit another record high afer the June jobs report showed an accelerating recovery for the U.S. labor market. Solid moves by major tech stocks helped support the overall market. European stocks hit record highs as strong earnings from commodity majors, Airbus and others set a bright tone in Sectoral Indices(% change) markets, while data showing record high eurozone economic sentiment in July added to the positive mood. Strong quarterly earnings and optimism around European reopening put the Index on course for its sixth straight month of gains despite lingering concerns about inflation and China’s regulatory crackdown. Index traded higher with dovish comments by the Federal Reserve on interest rates and a slew of upbeat earnings updates boosting sentiment.

(Source: Investing.com)

Auto sales July’21

While global chip shortage remains a challenge in the automobile industry, opening up of COVID-induced lockdowns and subsequent easing of restrictions have helped the automakers to streamline their production schedules during July 2021. This was coupled with the preference of personal mobility, pent-up demand and the excitement of new launches, which together revved up the automobile wholesalers for the month on a lower base of last year.

The market leader Maruti Suzuki India Limited witnessed a growth of 50% in its total sales (domestic + exports) at 1,62,462 units in July as against 1,08,064 units in July last year.

Hyundai Motor India’s domestic sales were at 48,042 units against 38,200 units during the same period in 2020 with a Year-on-Year growth of 26 percent.

Tata Motors’ domestic sales rose by 92% to 51,981 vehicles in July 2021 from 27,024 vehicles in July 2020. The domestic sales are higher by 19% as compared with 43,704 vehicles sold in June 2021.

UV major Mahindra and Mahindra reported a nearly two-fold jump in passenger vehicle sales at 21,046 units in July. The company had sold 11,025 units in the same month last year.

For Honda cars India dispatched 6,055 units in the domestic market and exported 918 units in the month of July’21.

August’21 Amongst two wheelers,The world’s largest two-wheeler manufacturer, Hero MotoCorp sold 4,54,398 units in July. Sales fell 3% over the last month led by decline in sales of the motorcycle segment. The company in the statement added that localised lockdowns imposed by certain states due to the second wave continues to restrict the customer movement.

Bajaj Auto reported a pickup in July sales as it sold 3,69,136 units, an increase of 6.6% over June.

TVS Motor Company reported a 10.7% rise in total sales to 2,78,855 units in July over last month.

Eicher Motor achieved motorcycle sales of 44,038 units in the month of July 2021 compared to 40,334 units in July 2020, recording a growth of 9%.Total sales include exports of 4,748 units, higher by 97%.

TOTAL FIGURE Name of Company Jul-21 Jul-20 Ch. (in %)- (YoY) Jun-21 Ch. (in %)- (MoM) Maruti Suzuki India Limited 162,462 108,064 50.34 147,368 10.24 Hero MotoCorp Limited 454,398 520,104 -12.63 469,160 -3.15 Tata Motors Limited 54,033 46,210 16.93 46,210 16.93 Bajaj Auto Limited 369116 255832 44.28 346136 6.64 Mahindra & Mahindra Limited 42983 25678 67.39 32964 30.39 TVS Motor Company Limited 278,855 252,744 10.33 251,886 10.71 Eicher Motors Limited 44038 40334 9.18 43048 2.30 Escorts Limited 6564 5322 23.34 12533 -47.63 Ashok Leyland Limited 8129 4283 89.80 5851 38.93

(Source:BSE)

EXPORT FIGURE Name of Company Jul-21 Jul-20 Ch. (in %)- (YoY) Jun-21 Ch. (in %)- (MoM) Maruti Suzuki India Limited 21,224 6,757 214.10 17,020 24.70 Hero MotoCorp Limited 25,190 7,563 233.07 30,646 -17.80 Tata Motors Limited 2,052 2,506 -18.12 2,506 -18.12 Bajaj Auto Limited 201,843 96,856 108.39 184,300 9.52 Mahindra & Mahindra Limited 2,123 1467 44.72 2,607 -18.57 TVS Motor Company Limited 103,133 62,389 65.31 106,246 -2.93 Eicher Motors Limited 4,748 2,409 97.09 7,233 -34.36 Escorts Limited 509 369 37.94 577 -11.79

(Source:BSE)

August’21 TOTAL DOMESTIC SALES FIGURE (Excluding Export) Name of Company Jul-21 Jul-20 Ch. (in %)- (YoY) Jun-21 Ch. (in %)- (MoM) Maruti Suzuki India Limited 141238 101307 39.42 130348 8.35 Hero MotoCorp Limited 429208 512541 -16.26 438514 -2.12 Tata Motors Limited 51981 43704 18.94 43704 18.94 Bajaj Auto Limited 167273 158976 5.22 161836 3.36 Mahindra & Mahindra Limited 40860 24211 68.77 30357 34.60 TVS Motor Company Limited 175722 190355 -7.69 145640 20.66 Eicher Motors Limited 39290 37925 3.60 35815 9.70 Escorts Limited 6055 4953 22.25 11956 -49.36

(Source:BSE)

Telecom Subscription Data as on 31 May ’21

The number of telephone subscribers in India decreased from 1,203.47 million at the end of April-21 to 1,198.50 million at the end of May-21, thereby showing a monthly decline rate of 0.41%. Urban telephone subscriptions decreased from 664.34 million at the end of April-21 to 661.18 million at the end of May-21 and the rural subscription also decreased from 539.14 million to 537.32 million during the same period. The monthly decline rates of urban and rural telephone subscription were 0.47% and 0.34% respectively during the month of May-21.

Service Provider wise growth in total subscribers ( April’21-May’21)

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August’21