Morning Insight

JANUARY 20, 2021

19-Jan 1 Day
% Chg
1 Mth 3 Mths
News Highlights
Indian Indices  The department of fertilisers and the ministry of agriculture are working
SENSEX Index 49,398 1.7 5.2 21.8 out the details of the DBT scheme, which may be announced in the
NIFTY Index 14,521 1.7 5.5 22.1 Budget for FY22. (FE)
NSEBANK Index 32,425 1.9 5.6 33.6
NIFTY 500 Index 11,982 1.8 5.5 23.4  The newly-formed working committee of the Reserve Bank of India (RBI)
CNXMcap Index 21,969 2.3 5.6 29.9 is in favour of setting up an agency which will act as an umbrella
BSESMCAP Index 18,952 2.3 6.5 28.9 institution for financial technology (fintech) firms in view of growing
World Indices
complaints against the collection and recovery practices deployed by
Dow Jones 30,931 0.4 2.5 8.1
Nasdaq 13,197 1.5 3.5 13.1
some digital lending applications (apps). (BS)
FTSE 6,713 (0.1) 2.8 14.0  In one of the first moves after passing of the three agriculture Acts,
NIKKEI 28,618 (0.1) 6.9 21.4
National Bulk Handling Corporation (NBHC), a leading agri-warehousing
Hangseng 29,642 2.7 11.9 20.6
Shanghai 3,573 0.2 4.5 7.4 services company, is planning to start an electronic market platform
outside the mandis. (Mint)
Value traded (Rs cr) 19-Jan % Chg Day
Cash BSE 3,577 (55.0)  The Tata Group has finalised a $20-25 cr on primary cash infusion in
Cash NSE 61,864 (15.0) BigBasket as part of its larger deal to acquire a majority stake in India’s
Derivatives 28,57,809 3.6 biggest online grocery company, said people with knowledge of the
Net inflows (US$ mn) 18-Jan MTD YTD matter. The group is also said to be closing in on a majority stake in
FII 267 1,373 23,373 online pharmacy 1mg. (ET)
Mutual Fund (72.0) 425 -7,046
 The Adani Group (Adani Enterprises) signed a concession agreement
Price Chg Vol
Nifty Gainers & Losers with state-owned Airports Authority of India (AAI) for the operation,
19-Jan (Rs) (%) (mn)
development and management of airports at Jaipur, Guwahati and
Gainers
Thiruvananthapuram, almost two years after winning the bids. (Mint)
TTMT 259 5.2 NA
SHTF 1,228 4.6 NA  Vedanta Resources has agreed to settle all claims brought against it by
TTMT/A 100 3.3 NA
Zambian villagers following pollution by a copper mine run by Konkola
Losers
RIL 2,016 1.6 NA
Copper Mines (KCM), Vedanta and law firm Leigh Day said (BS)
HMCL 3,233 2.2 NA
 The Bombay High Court permitted German personal care company
DRRD 5,089 0.7 NA
Sebamed to continue with its advertising campaign for its cleansing bar,
Advances / Declines (BSE) giving relief to the latter. The ads were in the spotlight for naming and
19-Jan A B T Total % total
showing rival Hindustan Unilever's (HUL's) brands Lux, Dove, Rin and
Advances 614 528 142 1,284 100
Pears to be high on pH value. (BS)
Declines 85 195 90 370 29
Unchanged 2 10 7 19 1  The government will sell its entire 26.12 per cent stake in Tata
Commodity % Chg Communications Ltd (TCL), erstwhile VSNL, through offer for sale and
19-Jan 1 Day 1 Mth 3 Mths strategic sale route in the current fiscal. (Mint)
Crude (US$/BBL) 56.0 2.1 8.8 32.1
Gold (US$/OZ) 1,847.0 0.4 (2.2) (3.3)
 HDFC Bank, ICICI Bank and the State Bank of India continue to be the
Silver (US$/OZ) 24.0 (3.3) (6.1) (1.1) bellwethers of the country's banking system, with RBI reiterating that all
three lenders remain in the category designated as Domestic
Debt / Forex Market* 19-Jan 1 Day 1 Mth 3 Mths
Systemically Important Banks. (ET)
10 yr G-Sec yield % 6.2 - 5.0 3.0
Re/US$ 73.2 (11.0) (61.0) (19.0)  Tata Motors said it has received 98 patents last year under its
*Change, basis points accelerated drive for engineering excellence and innovation. These
Nifty patents predominantly relate to the megatrend of CESS (connected,
14,600 electrified, sustainable and safe) automobiles, the company said in a
12,850 statement. (ET)
11,100  HG Infra Engineering gets appointed date from NHAI as January 15,
9,350 2021 for construction of the proposed Rewari bypass in Haryana on a
Hybrid Annuity Mode. (BQ)
7,600
Jan-20 May-20 Sep-20 Jan-21  Indian Bank: A meeting of Board of Directors is scheduled on January
Source: NSE 22, 2021 to consider a proposal for raising of fund/equity capital by the
Bank through QIP/FPO/Rights issue and/or in combination thereof. (BQ)
Source: ET = Economic Times, BS = Business Standard, FE = Financial Express, IE = Indian
Express, BL = Business Line, BQ = BloombergQuint, ToI: Times of India, BSE = Bombay
Stock Exchange, MC = Moneycontrol

Kotak Securities Limited has two independent equity research groups: Institutional Equities and Private Client Group. This report has been prepared by the Private Client Group.
JANUARY 20, 2021

RATING SCALE (PRIVATE CLIENT GROUP)

Definitions of ratings
BUY – We expect the stock to deliver more than 15% returns over the next 12 months
ADD – We expect the stock to deliver 5% - 15% returns over the next 12 months
REDUCE – We expect the stock to deliver -5% - +5% returns over the next 12 months
SELL – We expect the stock to deliver < -5% returns over the next 12 months
NR – Not Rated. Kotak Securities is not assigning any rating or price target to the stock.
The report has been prepared for information purposes only.
SUBSCRIBE – We advise investor to subscribe to the IPO.
RS – Rating Suspended. Kotak Securities has suspended the investment rating and price target
for this stock, either because there is not a sufficient fundamental basis for determining, or
there are legal, regulatory or policy constraints around publishing, an investment rating or
target. The previous investment rating and price target, if any, are no longer in effect for this
stock and should not be relied upon.
NA – Not Available or Not Applicable. The information is not available for display or is not
applicable
NM – Not Meaningful. The information is not meaningful and is therefore excluded.
NOTE – Our target prices are with a 12-month perspective. Returns stated in the rating scale are our
internal benchmark.
FUNDAMENTAL RESEARCH TEAM (PRIVATE CLIENT GROUP)
Rusmik Oza Arun Agarwal Amit Agarwal, CFA Priyesh Babariya
Head of Research Auto & Auto Ancillary Transportation, Paints, FMCG Research Associate
rusmik.oza@kotak.com arun.agarwal@kotak.com agarwal.amit@kotak.com priyesh.babariya@kotak.com
+91 22 6218 6441 +91 22 6218 6443 +91 22 6218 6439 +91 22 6218 6433

Sanjeev Zarbade Jatin Damania Purvi Shah K. Kathirvelu

Cap. Goods & Cons. Durables Metals & Mining, Midcap Pharmaceuticals Support Executive
sanjeev.zarbade@kotak.com jatin.damania@kotak.com purvi.shah@kotak.com k.kathirvelu@kotak.com
+91 22 6218 6424 +91 22 6218 6440 +91 22 6218 6432 +91 22 6218 6427

Sumit Pokharna Pankaj Kumar Krishna Nain

Oil and Gas, Information Tech Midcap M&A, Corporate actions
sumit.pokharna@kotak.com pankajr.kumar@kotak.com krishna.nain@kotak.com
+91 22 6218 6438 +91 22 6218 6434 +91 22 6218 7907

TECHNICAL RESEARCH TEAM (PRIVATE CLIENT GROUP)

Shrikant Chouhan Amol Athawale Sayed Haider
shrikant.chouhan@kotak.com amol.athawale@kotak.com Research Associate
+91 22 6218 5408 +91 20 6620 3350 sayed.haider@kotak.com
+91 22 62185498

DERIVATIVES RESEARCH TEAM (PRIVATE CLIENT GROUP)

Sahaj Agrawal Malay Gandhi Prashanth Lalu Prasenjit Biswas, CMT, CFTe
sahaj.agrawal@kotak.com malay.gandhi@kotak.com prashanth.lalu@kotak.com prasenjit.biswas@kotak.com
+91 79 6607 2231 +91 22 6218 6420 +91 22 6218 5497 +91 33 6615 6273

Kotak Securities – Private Client Group Please see the Disclosure/Disclaimer on the last page For Private Circulation 2
JANUARY 20, 2021

Disclosure/Disclaimer (Private Client Group)

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of publication of Research Report: No

Kotak Securities – Private Client Group Please see the Disclosure/Disclaimer on the last page For Private Circulation 3
JANUARY 20, 2021

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Kotak Securities – Private Client Group Please see the Disclosure/Disclaimer on the last page For Private Circulation 4