STOCK SELECTED -- NSE DATED - 27TH OCTOBER 2020.

1. STOCK
MARKET
SECTORAL
ANALYSIS
JANIKA MAHESHKUMAR

2. NIFTY ANALYSIS:
SECTORS CHOSSEN:
1.NIFTY BANK
2.NIFTY IT
3.NIFTY FMCG.
A stock market, equity market or share market is the aggregation of buyers and sellers of stocks (also called shares), which
represent ownership claims on businesses; these may include securities listed on a public stock exchange, as well as stock that
is only traded privately, such as shares of private companies which are sold to investors through equity crowdfunding platforms.
Investment in the stock market is most often done via stockbrokerages and electronic trading platforms. Investment is usually
made with an investment strategy in mind.
Stocks can be categorized by the country where the company is domiciled. For example, Nestlé and Novartis are domiciled in
Switzerland and traded on the SIX Swiss Exchange, so they may be considered as part of the Swiss stock market, although the
stocks may also be traded on exchanges in other countries, for example, as American depositary receipts (ADRs) on U.S. stock
markets.
Stock market index: The movements of the prices in global, regional or local markets are captured in price indices called stock
market indices, of which there are many, e.g. the S&P, the FTSE and the Euronext indices. Such indices are usually market
capitalization weighted, with the weights reflecting the contribution of the stock to the index. The constituents of the index are
reviewed frequently to include/exclude stocks in order to reflect the changing business environment.

3. NIFTY FMCG :
DATED : 27th October 2020

4. NESTLEIND
Among the consumer pack, Nestlé India are the favorites for
obvious reasons. Investors believe in execution capabilities and
distribution might. “Most of Nestlé India’s portfolio consists of
food products and in such times, consumers prefer a good
brand," said Nitin Gupta, analyst at SBICAP Securities Ltd.
Nestlé India’s higher exposure to urban markets is also seen as
a positive, especially at a time when the rural market is
expected to be hit.
. While earnings estimate for Nestlé India and other consumer
companies haven’t fallen as much as other firms, they are still
down.
Shares of Nestle significantly surged up by 6.01% (Rs. 17233.25)
at closing at BSE. Today ( 27/10/2020) 0.17 Lac shares of the
company were traded at BSE. At the current price, its market
cap amounts to approximately Rs. 1,66,155.61 Cr.
Amongst top competitors, Britannia Inds rose 2.58%, Hatsun Agro Products was also up 2.2%, while, Zydus Wellness had a fall
of -2.24% today.
Nestle made a profit of 486.6 Cr from the total revenue of Rs. 3,050.48 Cr in the past quarter. Also, its shares had a 52-week
high of Rs. 18301.00 and a 52-week low of Rs. 12588.95.

5. BRITANNIA
Britannia Industries has partnered with Google-backed personal concierge startup Dunzo to deliver its essential
products such as biscuits, cakes, wafers, milkshakes and ghee.
This move by the leading biscuit manufacturer comes as a response to ensure uninterrupted supply of essentials
amidst the lockdown due to the Covid-19 outbreak in the country.
The new partnership will allow customers to order products from Britannia Essential stores through the Dunzo app.
Dunzo will source the products from Britannia’s distribution centers to ensure the proper handling of the goods and
enable availability across cities through no-contact delivery.
During this unprecedented time, it is critical for us to maintain a continuous supply of our products which are daily
staples in Indian households. With a significant rise in demand for at-home delivery, we are leveraging Dunzo’s
technology platform,
Partnering with Britannia ensures that essentials are produced and packaged safely, adding to the measures that have
been taken to ensure safety of our users, merchants and delivery partners.
Britannia Industries, the makers of Good Day and Tiger biscuits, has a turnover of about Rs 10000 crore. Dunzo, the
hyperlocal ecommerce company that connects merchants, partners, and users to facilitate transactions across courier,
commerce, and commute, delivers packages in top Indian metros.

7. HIUNUNLVR
Anglo-Dutch consumer goods company Unilever said its India business did well during the July-September quarter as pick-up in economic
activity after a strict lockdown helped the company with sales of hygiene and food and refreshment products.
On Thursday, Unilever said underlying sales rose 4.4% year-on-year as it reported strong than expected growth in the third quarter. Sales in
emerging markets rose 5.3% compared to the previous year, while in developed markets they rose 3.1%, according to a news report by Reuters.
Reuters.
Its India unit, Hindustan Unilever Ltd, announced its September quarter earnings earlier this week—net profit rose around 9% y-o-y to ₹2,009
crore in the September quarter. Overall growth stood at 3% on a like-to-like basis in the during the period compared to a 7% decline in the June
June quarter.
In India you know about the market, we just saw from HUL, there has been a pickup in economic activity and the marketplace in India after a
very strong lockdown in the first half. And, you know, looks like we are over the hump now in India in terms of the economy and the market
growth numbers. Our business in India did really well to grow single-digits this quarter. That again was driven by hygiene products and our food
food and refreshment portfolio in India.
In India too, HUL’s top management had said that economic outlook has improved given the various initiatives taken by the government and
Reserve Bank of India.
The maker of Dove soaps and Knorr soups benefitted from strong sales in rural markets. "In our sector, rural markets have been resilient but the
the demand in urban India especially in metropolitan cities has been muted. We believe that the worst is behind us and we are cautiously
optimistic on demand recovery," Sanjiv Mehta, chairman and managing director, HUL, had said in a press statement earlier this week.
Several large global FMCG companies announced earnings this week giving a peak into the consumption uptick in certain categories.
Reckitt Benckiser reported record additions to its Harpic brand here. Coca-Cola said while volumes in Asia Pacific dropped led by India and
Japan, the markets were making "meaningful improvement". Nestle said its local unit reported mid-single-digit growth for the third quarter.

8. NIFTY IT

9. HCLTECH
HCL Technologies chairperson Roshini Nadar said that the
impact from COVID-19 on customer demand had stabilised and
the company had moved to a positive growth trajectory.
Addressing shareholders for the first time at the company’s
AGM as the chairperson, she said the challenges in the external
environment had created a new demand for the company’s
products and services and it had seen growth in several areas,
including infrastructure and cybersecurity services, e-
commerce, digital marketing, and digital experience.
The impact from COVID-19 on customer demand has stabilised
after the early days of the pandemic. They have managed their
business with operational discipline, and they believe the initial
revenue decline has turned the corner to a positive good
growth trajectory going forward.
Digital transformation for clients and within HCL would
continue to drive the company’s business agenda.
For instance, retailers are now looking to accelerate and scale
their e-commerce model to quickly move away from remaining
brick and mortar structures.

10. TCS

12. Social distancing, lockdowns, and other restrictions unleashed
by the COVID-19 crisis is driving people to switch to online
modes to buy essentials and other necessities. As people shop
from the safety of their homes to protect against the virus,
financial institutions are experiencing an explosion in digital
payments. While financial institutions have so far ensured the
availability of digital modes of payment without any major
disruptions, it is impossible to predict how the crisis will play
out in the coming weeks and months. To assess the impact of
COVID-19 on digital payments and prepare for unforeseen
situations, banks will need to expand access to digital
touchpoints in a secure manner while ensuring round-the-clock
availability.
Ensuring seamless payment services during the COVID-19 crisis
will require banks to
•Scale up digitalization initiatives
•Upgrade infrastructure to support growth in digital payments
•Open data access and leverage analytics to design personalized offerings
•Step up cybersecurity, cyber surveillance, and financial crime controls.

13. LTI
L&T Infotech (LTI) feels the COVID-19 pandemic will impact business in the first half of the fiscal, but it will not resort to employee retrenchment even as it seeks to
protect profit margin, a top company official said. Different tools, including reducing subcontracted staff and deferring capital expenditure plans, will be deployed to
protect margins, LTI Managing Director and Chief Executive Officer Sanjay Jalona told PTI.
A lot of information technology (IT) companies have voiced concern about the business impact of COVID-19 pandemic as economic activity slows down across the world,
leading companies to spend less or defer spending on IT front.
LTI posted a 12.9 per cent jump in its March quarter net profit at Rs 427.5 crore, on the back of a 21 per cent rise in revenue to Rs 3,110 crore.In the March quarter, the
impact of COVID was only in the last two weeks. The full impact will be seen in Q1, and we feel Q1 and Q2 business will surely be impacted.
The company will try to minimise the impact on profit margin through various moves, he said, without giving any guidance on numbers for 2020-21.LTI is postponing its
capital expenditure plans to save cash and has also started renegotiating contracts, wherever possible, including on supply of manpower, he said.
Currently, over 98 per cent of staff is operating from home and almost all the key delivery milestones are being met, Jalona said, adding that the wellbeing of the
employees is the top priority. The company is deferring wage hikes by six months, he said, specifying that the revised salaries will set in from January 2021 as against the
usual practice of having reviews from July.
When asked if the company plans to go for employee retrenchment, Jalona said it will not resort to any actions which will be viewed as being adverse by the employees.
LTI wants to protect its margins amid the turbulence, and will resort to other moves, apart from capex reductions and renegotiating contracts, to achieve the objective.
Utilisation will be impacted because of the difficulties on the business front, which will put pressure on margins.The company may look at reducing the number of
subcontracted staff which works for the company in other locations.

14. NIFTY BANK

15. ICICIBANK
ICICI Bank expects its revenues to be impacted in 2020-21 due to the COVID-19 crisis and said it will look to maintain adequate
liquidity and focus on robust credit monitoring. The economic conditions remain challenging going forward due to the
uncertainties posed by the global health crisis and the stand-still in the economic activity, ICICI Bank said in its annual report
2019-20.
The Indian economy would be impacted by this pandemic with contraction in industrial and services output across small and
large businesses, said the private sector lender.
While systemic liquidity is abundant, the economic weakness caused by the pandemic and uncertainty regarding normalisation
will impact banking sector loan growth, revenues, margins, asset quality and credit costs.
In view of the COVID-19 pandemic, there will be an impact on revenues and an increase in rating downgrades in the portfolio
and NPA formation at a systemic level and for the bank.
The bank's immediate focus in fiscal 2021 would be towards maintaining adequate liquidity, conservation of capital and robust
credit monitoring, it said further.
Given the bank's core operating profitability, liquidity and capital adequacy, the bank believes it is well-placed to absorb the
impact of the challenges in the environment. The bank would look at further strengthening the balance sheet as opportunities
arise. The bank will closely monitor the evolving scenario and calibrate its business based on the assessment of risk and
profitability, the FY20 annual report of the bank.

16. As part of its capital raising plans for the current fiscal year, the second largest private sector lender earlier this month informed
about the board's decision to raise up to Rs 15,000 crore in core capital through various routes.
Before this in June, it sold 3.96 percent stake in its general insurance subsidiary ICICI Lombard General Insurance for Rs 2,250
crore and 1.5 per cent in life insurance subsidiary for around Rs 840 crore with an aim to strengthen the balance sheet.
In 2018-19, the bank had sold 2 per cent of its shareholding in ICICI Prudential Life Insurance Company and made a net gain of Rs
1,005.93 crore on this sale.
The private sector lender said it would continue its focus on re-engineering business processes and enhancing customer
convenience leveraging technology, with digital banking having received further impetus amid the constraints on traditional ways
of working imposed by the pandemic-related lockdowns.
Despite the challenging time, ICICI Bank said it is seeing opportunities to grow and strengthen its franchise and it is using these
opportunities to further accelerate the digital journey of the bank and its customers.
The bank is seeing increased utilisation of its digital channels and platforms by its customers and has ensured that the IT
infrastructure is able to handle any unexpected surge in digital transactions. The bank continues to monitor the situation in the
country and would 'take necessary steps to ensure safety of its people and continuity of its business operations.
Bank Chairman Girish Chandra Chaturvedi in his message to shareholders said that looking ahead, there are significant challenges
for the economy and the banking sector in fiscal 2021

17. A contraction in economic growth is inevitable, and regaining the confidence and momentum of activity as in the past may take
some time. A health emergency of this magnitude will lead to extraordinary responses and outcomes.
Under these circumstances, the Bank remains committed to being with its customers and ensuring seamless delivery of
financial services and will participate in the relief measures to mitigate the impact of the crisis.
In its annual general meeting, the bank seeks shareholders' nod for shifting its registered office from Gujarat to Maharashtra
consequent to amendment to the Memorandum of Association of the Bank, the bank said in the report.
ICICI Bank had posted 135.8 per cent jump in its net profit to Rs 7,931 crore in 2019-20 as against Rs 3,363 crore in the previous
year.
The key takeaways from ICICI Bank’s Q4 results:
•Net interest income
Net interest income (NII) increased by 17 per cent YoY to Rs 8,927 crore in Q4FY20 from Rs 7,620 crore in Q4FY19.
The net interest margin stood at 3.87 per cent in the quarter under review compared with 3.77 per cent in the per
cent in the quarter ended December 31, 2019, and 3.72 per cent in the same period last year.
• Fee and Treasury income
Fee income grew 13 per cent YoY to Rs 3,598 crore in the March quarter from Rs 3,178 crore in the corresponding
quarter last year. Treasury income grew 55 per cent YoY to Rs 242 crore in Q4FY20 from Rs 156 crore in Q4FY19.

18. •Asset Quality
During the quarter, the gross additions to NPAs were Rs 5,306 crore, while recoveries and upgrades, excluding write-offs, from
nonperforming loans were Rs 1,883 crore. Net nonperforming assets declined 26 per cent from a year ago to Rs 10,114 crore at
March 31. NPA ratio for the said quarter decreased from 2.06 per cent a year ago to 1.41 per cent. Overall, provisions and
contingencies increased by 9.47 per cent YoY to Rs 5,967 crore. Provision coverage ratio (excluding technical write-offs)
increased to 75.7 per cent from 70.6 per cent a year ago.
•Credit growth
Domestic advances rose 13 per cent YoY during the quarter. It continued to leverage its strong retail franchise, resulting in a 16
per cent YoY growth in the retail loan portfolio. Total advances increased 10 per cent YoY to Rs 645,290 crore for the quarter
ended March 31, 2020, from Rs 586,647 crore a year ago.
•Deposit growth
Total deposits jumped 18 per cent YoY to Rs 770,969 crore during the quarter under review. The average CASA (current account
to savings account) ratio came in at 42.3 per cent for the quarter compared with 42.8 per cent in the preceding quarter and 44.6
per cent in the same period last year.
•Capital adequacy
The bank’s total capital adequacy at March 31, 2020, as per the Reserve Bank of India’s guidelines on Basel III norms, including
profits for FY2020, was at 16.11 per cent and Tier-1 capital adequacy was 14.72 per cent compared with the minimum
regulatory requirements of 11.08 per cent and 9.08 per cent, respectively.

19. KOTAKBANK
Kotak Mahindra Bank shares fell by -1.73% to Rs. 1560.55 at 12:36 hours at BSE. So far today 1.76 Lac shares of the company were
were traded at the BSE. At the current price, the market cap of Kotak Mahindra Bank amounts Rs. 3,08,567.69 Cr.
Kotak Mahindra Bank shares have been
trading in the price band of Rs. 1546.00
and Rs. 1580.00 at BSE today. At the day's
low, its shares fell by -2.15% as compared
to previous closing price of Rs. 1588.02.
Both Sensex (down -0.47%) and Nifty
(down -0.95%) performed better than
Kotak Mahindra Bank.
Looking into peers, HDFC Bank fell -1.12%,
ICICI Bank fell -0.94% and Indusind Bank as
well fell by -1.77% today.
In Jun-2020 quarter, Kotak Mahindra Bank
had posted standalone revenues of Rs.
6,911.86 Cr and profits of 1,244.45 Cr. Also,
52-week high of Rs. 1739.95 and a 52-
week low of Rs. 1000.35 were noted.

20. HDFCBANK
HDFC Bank shares fell by -1.63% to Rs. 1213.25 at closing at BSE. Today 7.33 Lac shares of the company were traded at the BSE.
At the current price, the market cap of HDFC Bank amounts Rs. 6,65,776.69 Cr.
HDFC Bank shares have been trading in the price band of Rs.
1201.35 and Rs. 1231.70 at BSE today. At the day's low, its
shares fell by -2.33% as compared to previous closing price of
Rs. 1233.35.
Although, the benchmark indices Sensex and Nifty were down
by -1.44% and -1.34% respectively, they have outperformed
HDFC Bank Today.
Amongst top competitors, Kotak Mahindra Bank fell -1.84%,
ICICI Bank fell -3.34% and Axis Bank as well fell by -0.53% today.
In the past quarter, HDFC Bank revenue summed up to Rs.
30,377.97 Cr while profits of 6,658.62 Cr were noted. Also, its
shares had a 52-week high of Rs. 1304.10 and a 52-week low of
Rs. 738.90.

21. THANKYOU