Edel Market Next Fundamental market In-House View

 Indian market closed negative during the week. Nifty and Sensex down this week by 1.20% and 1.27% respectively.

 Government to infuse Rs 1,500 cr into Exim Bank next fiscal: The government has decided to infuse Rs 1,500 crore capital into state-owned Export-Import Bank of (Exim Bank) in the next financial year. The amount is Rs 200 crore higher than the provision made by the government for the current fiscal. The government has earmarked Rs 1,300 crore capital infusion for the bank. "The (Rs 1,500 crore) provision is for Exim Bank as equity support/ subscription to increase the paid up capital of the bank to the level of its authorised capital," as per the Budget documents presented in Parliament earlier this month. The government doubled the authorised capital of the bank from Rs 10,000 crore to Rs 20,000 crore in 2019.

 Foodgrain production to hit record high in 2020-21: The country is likely to achieve an all-time high foodgrains production of over 297 million tonnes in 2020-21, the fifth consecutive year of record production, as per the government’s second advance estimate, which is to be released soon. This will be slightly more than the fourth advance estimate of 2019-20, which is at over 296 million tonnes. However, the estimated production is short of 301 million tonnes of food grains production targeted for 2020-21. “We expect to meet the target. There will be three more estimates before finalising the production for this year. The figure will move up in subsequent estimates,” said an agriculture ministry official.

 India rice exports pick up as additional port opened: Indian rice exports gained momentum this week after an additional port was opened in the country’s biggest rice-handling facility, potentially easing congestion. Waiting periods at the Kakinada Anchorage Port had reached up to four weeks, compared with about a week normally, because of congestion at the port. “From Saturday we have started using Kakinada deepwater port,” said B.V. Krishna Rao, president of the Rice Exporters Association of India, adding that this will reduce waiting times and accelerate overall exports. Rao said that exporters’ resulting savings in demurrage fees could be passed on to farmers and overseas buyers. India’s 5% broken parboiled variety of rice eased to $395-$401 a tonne from last week’s multi-year high of $402-$408.

 Cabinet approves trade pact between India, Mauritius: The Union Cabinet on Wednesday approved signing of a comprehensive economic cooperation agreement, a kind of a free trade pact, between India and Mauritius which is aimed at liberalising norms to boost two-way commerce. The Cabinet meeting chaired by Prime Minister Narendra Modi approved the signing of the Comprehensive Economic Cooperation and Partnership Agreement (CECPA) between India and Mauritius, an official statement said. The pact would cover 310 export items for India, including foodstuff and beverages, agricultural products, textile and textile articles, base metals, electricals and electronic items, plastics and chemicals, wood and its articles. Mauritius would benefit from preferential market access into India for 615 products, including frozen fish, speciality sugar, biscuits, fresh fruits, juices, mineral water, beer, alcoholic drinks, soaps, bags, medical and surgical equipment, and apparel.

 Bank credit grows by 5.93%, deposits by 11.06%: Bank credit grew 5.93 percent to Rs 107.05 lakh crore, while deposits rose 11.06 percent to Rs 147.98 lakh crore in the fortnight ended January 29, RBI data showed. In the fortnight ended January 31, 2020, bank credit stood at Rs 101.05 lakh crore and deposits at Rs 133.24 lakh crore. In the previous fortnight ended January 15, 2021, growth in bank credit was 6.36 percent, while deposits rose 11.41 percent. During the first nine months of the current fiscal, bank credit rose by 3.2 percent and deposits by 8.5 percent. In December 2020, non-food credit growth of banks stood at 5.9 percent as compared to 7 percent in the same month of the previous year, according to RBI data on Sectoral Deployment of Bank Credit for December 2020, released last month. During the reporting month, growth in credit to agriculture and allied activities accelerated to 9.4 percent from 5.3 percent in December 2019.

 India's exports up 6.16% in January, trade deficit narrows to $14.54 billion: The country’s exports grew by 6.16 percent to $27.45 billion in January, according to data by the commerce ministry. Imports too grew by 2 percent to about $42 billion, leaving a trade deficit of $14.54 billion during the month under review, the data showed. Exports during April-January this fiscal dipped by 13.58 percent to $228.25 billion, while imports declined by 25.92 percent to $300.26 billion.

Edelweiss Professional Investor Research 1

Edel Market Next Fundamental market In-House View

 WPI inflation rises to 2.03% in January on costlier manufactured items, food prices ease: The wholesale price-based inflation rose to 2.03 per cent in January, 2021, even as food prices cooled. The WPI inflation was 1.22 percent in December, 2020 and 3.52 percent in January last year. While food articles saw softening in inflation in January, manufactured items witnessed hardening of prices, as per data released by the Commerce and Industry ministry. Food inflation in January stood at (-) 2.8 percent, against (-) 1.11 percent in the previous month. Inflation in vegetables and potatoes was (-) 20.82 percent and 22.04 percent during January, while in the fuel and power basket it was (-) 4.78 percent. In non-food articles inflation was higher at 4.16 percent during the month under review.

Edelweiss Professional Investor Research 2

Edel Market Next Domestic Bites – News during the week

gets RBI nod for DHFL acquisition: Piramal Group on February 18 said the Reserve (RBI) is understood to have cleared the resolution plan for debt-ridden DHFL as approved by the Committee of Creditors (CoC). The CoC had approved a resolution plan submitted by a Piramal Group company, Piramal Capital and Housing Finance Limited, last month. “We understand that the RBI has approved the DHFL resolution plan from Piramal Capital and Housing Finance, submitted by the CoC,” Piramal Group said in a statement. The resolution plan was a pproved by the CoC in its 18th meeting concluded on January 15, 2021.

 DLF rental arm acquires 'One Horizon Centre' building in Gurugram for ₹780 cr: DLF's rental arm DCCDL has completed the acquisition of the entire 52 per cent stake of US-based Hines in a premium commercial project in Gurugram for ₹780 crore. In December, DLF had informed that its joint venture firm DLF Cyber City Developers Ltd (DCCDL) entered into a securities purchase agreement with funds managed by Hines for acquisition of their stake in Fairleaf Real Estate, which owns and operates 'One Horizon Center'. "DCCDL has completed the acquisition of this 51.8 per cent stake at a consideration of ₹779.40 crore and consequently Fairleaf has become a wholly-owned subsidiary of DCCDL with effect from February 18, 2021", DLF said in a regulatory filing. Hines had nearly 52 per cent stake in the One Horizon Centre while the rest was with the DCCDL.

 Airtel to acquire 20% stake in Bharti Telemedia from Warburg Pincus: “A full control and ownership over Bharti Telemedia allows Airtel to offer differentiated and converged solutions to customers so as to promote ‘one home’ strategy," Airtel said. The telecom operator will pay the said amount primarily through issuance of 36.47 million of its own equity shares at ₹600 per share, while ₹1,037.8 crore will be paid in cash. The issuance of shares proposed through preferential allotment is subject to shareholders’ approval, said India’s second largest telecom operator by market share.

 Adani Ports to invest ₹10,000 crore to build new gateway into Maharashtra: Adani Ports and Special Economic Zone Ltd on Tuesday completed the acquisition of 100% stake of Dighi Port Limited (DPL) for Rs705 crore. Dighi port is located on the banks of the Rajpuri Creek, in the Raigad District of Maharashtra on the West Coast of India. The port is located at a distance of 42 nautical miles (NM) from Port and 170kms south of Mumbai by road. "APSEZ plans to invest over ₹10,000 crore to develop the port into a multi-cargo port with world-class infrastructure as well as investing in the development of rail & road evacuation infrastructure for seamless and efficient cargo movement," the companysaid in a regulatory filing. Dighi Port Limited, the 12th port to join APSEZ’s string of economic gateways across the eastern and western coast of India would establish the company’s footprint in Maharashtra, the largest contributor to India’s GDP. This would enable APSEZ to service customers in Maharashtra which includes the highly industrial areas and development in the Mumbai & Pune regions.

to take $1.3 billion stake in BigBasket: Tata group will buy a 68% stake in online grocery startup BigBasket for about ₹9500 crore ($1.31 billion), television channel ET Now said on Tuesday, citing sources. The salt-to-software has been planning to launch a "super app" that will tie in all its consumer businesses, according to media reports, as it competes against Amazon.com Inc and Ltd in India's booming e-commerce market. Bengaluru-based BigBasket competes with Walmart Inc-owned Flipkart and Amazon's "Fresh" service as more consumers stay indoors and choose to shop online during the COVID-19 pandemic. Tata's stake will translate into an enterprise value of ₹13,500 crore for BigBasket, which is backed by Alibaba, ET Now said. BigBasket top management, including co-founder Hari Menon, are likely to stay on for three to four years, according to the report.

 Gibraltar Tech buys HCL arm for ₹147 crore: UAE-based Gibraltar Technologies (GT) has acquired HCL Infotech Ltd, part of India’s HCL group, for 74.6 million dirhams (about ₹147 crore). As part of the deal, the AI-based digital solutions company will absorb the assets, 800 employees and customer contracts managed by HCL Infotech. Gilbraltar Technologies said in a statement on Tuesday that it hopes to strengthen and grow its service offerings and offer better solutions to customers by combining its 20-year-long experience servicing large government organizations in the Middle East with the organizational capabilities of HCL Infotech.

Edelweiss Professional Investor Research 3

Edel Market Next Domestic Bites – News during the week

Consumer Care’s subsidiary invests in Onelife: Wipro Consumer Care Ventures, the venture capital arm of Wipro Consumer Care and Lighting, has backed consumer healthcare brand Onelife, which sells health and nutrition products, it said on Monday. The development highlights growing interest from legacy consumer firms in stepping up investments in brands and categories beyond traditional businesses. In early February, Ltd said it had acquired a 100% stake in Kottaram Agro Foods Pvt. Ltd, which manufactures the Soulfull brand of breakfast cereals and millet-based snacks. Last month, consumer goods firm Reckitt Benckiser led a ₹45 crore round in Visage Lines Personal Care Pvt. Ltd, which owns grooming brand Bombay Shaving Co.

Edelweiss Professional Investor Research 4

Edel Market Next International – News during the week

 U.S. Jobless Claims Hit Four-Week High in Fresh Labor Setback: Applications for U.S. state unemployment insurance jumped to a four-week high, indicating the labor market is suffering fresh setbacks even as the coronavirus pandemic shows signs of ebbing. Initial jobless claims in regular state programs totaled 861,000 in the week ended Feb. 13, up 13,000 from the prior week, Labor Department data showed Thursday. Last week’s report had originally shown a decrease but was revised up to show a 36,000 increase. Continuing claims -- an approximation of the number of people filing for ongoing state benefits -- declined by 64,000 to 4.49 million in the week ended Feb. 6.

 Australia Unemployment Falls Further as Recovery Intensifies: Australia’s unemployment rate declined in January as a second round of central bank stimulus combined with a big-spending government budget accelerated the economy’s recovery and further boosted hiring. The jobless rate fell to 6.4% from 6.6% in December, versus economists’ estimate of 6.5%, data from the statistics bureau showed Thursday in Sydney. Employment advanced by 29,100 in January, compared with an expected 30,000 gain, driven by the state of Victoria that’s still rebounding from its second lockdown. The participation rate was 66.1%, slightly below the forecast 66.2%. “Australia has recouped almost all the jobs lost in April/May 2020 at the depths of the recession and nationwide lockdown,” said Su-Lin Ong, head of Australian economic and fixed-income strategy at Royal Bank of Canada. “While the unemployment rate remains higher, it is heading in the right direction.”

 U.S. Economy Surges Into 2021 as Sales, Output Top Forecasts: The U.S. economy started 2021 with a bang as retail sales and factory output accelerated and expectations continue to build for another jolt of government stimulus, setting the stage for what could be the best year of economic growth in nearly four decades. Retail sales rose in January by the most in seven months, increasing 5.3% after a disappointing December and beating all forecasts, Commerce Department figures showed. Meanwhile, factory output rose by more than expected last month and a measure of producer prices advanced by the most in records back to 2009. After a surge in Covid-19 infections curbed spending as 2020 drew to a close, cases have ebbed and states have started to ease some restrictions on businesses and activity. The ability to shop and dine out, paired with the l atest round of $600 stimulus payments, helped spark retail sales gains across all major categories last month.

 Singapore Trims Deficit, Taps Reserves Again for Covid Aid: Singapore plans to rein in its budget deficit as the economy recovers, while digging deeper into government reserves for a new S$11 billion ($8.3 billion) package to help households and businesses rebound from the Covid-19 pandemic. “Even as our economy recovers gradually and some sectors grow well, some other sectors remain stressed,” Deputy Prime Minister Heng Swee Keat said Tuesday in the annual budget speech to Parliament. “Our fiscal approach must strike a careful balance between addressing our immediate needs and meeting our longer-term structural needs in a responsible manner.” The new package comes after Singapore’s economy endured its biggest-ever contraction in 2020, with gross domestic product shrinking 5.4%. Growth is expected to rebound to 4%-6% this year, but the outlook remains challenging for some important sectors including aviation, transport and h ospitality.

 Japan’s Double-Digit Expansion Signals Resilience in Economy: Japan’s economy clocked another quarter of double-digit growth and finished the pandemic year in better shape than initially expected, signaling potential for a more sure-footed recovery once a damaging state of emergency ends. Gross domestic product grew an annualized 12.7% from the prior quarter in the three months through December, the Cabinet Office reported Monday. The result was better than 22 of 24 forecasts from surveyed economists and defied a winter surge of the coronavirus. The fourth-quarter expansion helped the economy survive the pandemic year with a 4.8% contraction, better than forecast by economists and a smaller hit than the 5.7% drop in 2009 following the global financial crisis.

Edelweiss Professional Investor Research 5

Edel Market Next

FII/DII

FII Flows (In INR Cr) DII Flows (In INR Cr) 1500 1234 1144 1008 903 1000

500

0

-500

-1000 -1,049 -1,217 -1500 -1,283 -1,560 -2000 15-Feb 16-Feb 17-Feb 18-Feb

Only FII were net buyers INR 4,290cr in the past week.

Edelweiss Professional Investor Research 6

Edel Market Next

Events to watch out for:

The markets will take their cue from the following economic updates.

Country Event Forecast Previous USA House Price Index (YoY) (Dec) NA 11.00% USA New Home Sales (Jan) 857K 1K USA GDP (QoQ) (Q4) 4.30% 4.00% USA GDP Sales (Q4) NA 3.00%

Country Event Forecast Previous INDIA Federal Fiscal Deficit (Jan) 11,584.69B INDIA GDP Quarterly (YoY) (Q3) -8.80% -7.50% INDIA Infrastructure Output (YoY) (Jan) NA -2.60% INDIA GDP Annual () NA 4.20%

Edelweiss Professional Investor Research 7

Disclaimer

Edelweiss Broking Limited (“EBL” or “Research Entity”) is regulated by the Securities and Exchange Board of India (“SEBI”) an d is licensed to carry on the business of broking, depository services and related activities. The business of EBL and its Associates (list available on www.edelweissfin.com) are organized around five broad business groups – Credit including Housing and SME Finance, Commodities, Financial Markets, Asset Management and Life Insurance.

Broking services offered by Edelweiss Broking Limited under SEBI Registration No.: INZ000005231; Name of the Compliance Offic er: Mr. Brijmohan Bohra, Email ID: [email protected] Corporate Office: Edelweiss House, Off CST Road, Kalina, Mumbai - 400098; Tel. 18001023335/022-42722200/022-40094279

This Report has been prepared by Edelweiss Broking Limited in the capacity of a Research Analyst having SEBI Registration No.INH000000172 and distributed as per SEBI (Research Analysts) Regulations 2014. This report does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. The information contained herein is from publicly available data or other sources believed to be reliable. This report is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this informat ion. Each recipient of this report should make such investigation as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult his own advisors to determine the merits and risks of such investment. The investment discussed or views expressed may not be suitable for all investors.

This information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose. 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 EBL and associates / group companies to any registration or licensing requirements within such jurisdiction. The distribution of this report in certain jurisdictions may be restricted by law, and persons in whose possession this report comes, should observe, any such restrictions. The information given in this report is as of the date of this report and there can be no assurance that future results or events will be consistent with this information. This information is subject to change without any prior notice. EBL reserves the right to make modifications and alterations to this statement as may be required from time to time. EBL or any of its ass ociates / group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. EBL is committed to providing independent and transparent recommendation to its clients. Neither EBL nor any of its associates, group companies, directors, employees, agents or repres entatives shall be liable for any damages whether direct, indirect, special or co`quential including loss of revenue or lost profits that may arise from or in connection with the use of the information. Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein. Past performance is not necessarily a guide to future performance .The disclosures of interest statements incorporated in this report are provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the report. The information provided in these reports remains, unless otherwise stated, the copyright of EBL. All layout, design, original artwork, concepts and other Intellectual Properties, remains the property and copyright of EBL and may not be used in any form or for any purpose whatsoever by any party without the express written permission of the copyright holders.

EBL shall not be liable for any delay or any other interruption which may occur in presenting the data due to any reason including network (Internet) reasons or snags in the system, break down of the system or any other equipment, server breakdown, maintenance shutdown, breakdown of communication services or inability of the EBL to present the data. In no event shall EBL be liable for any damages, including without limitation direct or indirect, special, incidental, or consequen tial damages, losses or expenses arising in connection with the data presented by the EBL through this report. We offer our research services to clients as well as our prospects. Though this report is disseminated to all the customers s imultaneously, not all customers may receive this report at the same time. We will not treat recipients as customers by virtue of their receiving this report.

EBL and its associates, officer, directors, and employees, research analyst (including relatives) worldwide may: (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company(ies), mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the subject company/company(ies) discussed herein or act as advisor or lender/borrower to such company(ies) or have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication of research report or at the time of public appearance. EBL may have proprietary long/short position in the above mentioned scrip(s) and therefore should be considered as interested. The views provided herein are general in nature and do not consider risk appetite or investment objective of any particular investor; readers are requested to take independent professional advice before investing. This should not be construed as invitation or solicitation to do business with EBL.

EBL or its associates may have received compensation from the subject company in the past 12 months. EBL or its associates may have managed or co-managed public offering of securities for the subject company in the past 12 months. EBL or its associates may have received compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months. EBL or its associates may have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months. EBL or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report. Research analyst or his/her relative or EBL’s associates may have financial interest in the subject company. EBL, its associates, research analyst and his/her relative may have other potential/material conflict of interest with respect to any recommendation and related in formation and opinions at the time of publication of research report or at the time of public appearance. Participants in foreign exchange transactions may incur risks arising from several factors, including the following: ( i) exc hange rates can be volatile and are subject to large fluctuations; ( ii) the value of currencies may be affected by numerous market factors, including world and national economic, political and regulatory events, events in equity and debt markets and changes in interest rates; and (iii) currencies may be subject to devaluation or government imposed exchange controls which could affect the value of the currency. Investors in securities such as ADRs and Currency Derivatives, whose values are affected by the currency of an underlying security, effectively assume currency risk.

Research analyst has served as an officer, director or employee of subject Company: No EBL has financial interest in the subject companies: No

EBL’s Associates may have actual / beneficial ownership of 1% or more securities of the subject company at the end of the mon th immediately preceding the date of publication of research report. Research analyst or his/her relative has actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report: No

EBL has actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report: No Subject company may have been client during twelve months preceding the date of distribution of the research report.

There were no instances of non-compliance by EBL on any matter related to the capital markets, resulting in significant and material disciplinary action during the last three years. A graph of daily closing prices of the securities is also available at www.nseindia.com

Analyst Certification:

Edelweiss Professional Investor Research 8

Disclaimer

The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the subject company or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report.

Additional Disclaimer for U.S. Persons Edelweiss is not a registered broker – dealer under the U.S. Securities Exchange Act of 1934, as amended (the“1934 act”) and under applicable state laws in the United States. In addition Edelweiss is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by Edelweiss, including the products and services described herein are not available to or intended for U.S. persons.

This report does not constitute an offer or invitation to purchase or subscribe for any securities or solicitation of any investments or investment services and/or shall not be considered as an advertisement tool. "U.S. Persons" are generally defined as a natural person, residing in the United States or any entity organized or incorporated under the laws of the United States. US Citizens living abroad may also be deemed "US Persons" under certain rules.

Transactions in securities discussed in this research report should be effected through Edelweiss Financial Services Inc.

Additional Disclaimer for U.K. Persons The contents of this research report have not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 ("FSMA"). In the United Kingdom, this research report is being distributed only to and is directed only at (a) persons who have professional experience in matters relating to investments falling within Article 19(5) of the FSMA (Financial Promotion) Order 2005 (the “Order”); (b) persons falling within Article 49(2)(a) to (d) of the Order (including high net worth companies and unincorporated associations); and (c) any other persons to whom it may otherwise lawfully be communicated (all such persons together being referred to as “ relevant persons”).

This research report must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this research report relates is available only to relevant persons and will be engaged in only with relevant persons. Any person who is not a relevant person should no t act or rely on this research report or any of its contents. This research report must not be distributed, published, reproduced or disclosed (in whole or in part) by recipients to any o ther person.

Additional Disclaimer for Canadian Persons Edelweiss is not a registered adviser or dealer under applicable Canadian securities laws nor has it obtained an exemption from the adviser and/or dealer registration requirements under such law. Accordingly, any brokerage and investment services provided by Edelweiss, including the products and services described herein, are not available to or intended for Canadian persons. This research report and its respective contents do not constitute an offer or invitation to purchase or subscribe for any securities or solicitation of any investments or investment services.

Disclosures under the provisions of SEBI (Research Analysts) Regulations 2014 (Regulations) Edelweiss Broking Limited ("EBL" or "Research Entity") is regulated by the Securities and Exchange Board of India ("SEBI") an d is licensed to carry on the business of broking, depository services and related activities. The business of EBL and its associates are organized around five broad business groups – Credit including Housing and SME Finance, Commodities, Financial Markets, Asset Management and Life Insurance. There were no instances of non-compliance by EBL on any matter related to the capital markets, resulting in significant and material disciplinary action during the last three years. This research report has been prepared and distributed by Edelweiss Broking Limited ("Edelweiss") in the capacity of a Research Analyst as per Regulation 22(1) of SEBI (Research Analysts) Regulations 2014 having SEBI Registration No.INH000000172.

Edelweiss Professional Investor Research 9