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 Finance 0.6% 0.5% 0.5% 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 Bajaj Auto 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 Tata Motors 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 Suzuki 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 ICICI Securities | Retail Research Opening Bell ICICI Direct Research 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).