The wound is very deepEDITORIALQuote of the Week

Introductory Offer only for a very limited periodOne Year 52 Issues Online `2,900

Disclaimer: The views and opinions; thoughts and assumptions; analysis and conclusions expressed in this document do not necessarily reflect any legal standing.

Markets Change in one week

Advance Decline List (on Friday)

Sensex 32424.10 +1751.51 +5.71%

Nifty 9580.30 +541.05 +5.99%

Nifty Bank 19297.25 +2018.35 +11.68%

Nifty IT 14010.50 +167.85 +1.21%

BSE Mid Cap 11843.22 +573.20 +5.09%

BSE 500 12414.85 +651.67 +5.54%

BSE FMCG 10897.67 +558.08 +5.40%

BSE IT 14067.30 +38.10 +0.27%

BSE NSE All

Advances 22 40 1415

Declines 8 10 928

Unchanged 0 0 1766

“I have probably purchased fifty ‘hot tips’ in my career, maybe even more. When I put them all together, I know I am a net loser.”

– Charles Schwab

The GDP number came on the lines it was expected on the back of the coronavirus pandemic and a prolonged slowdown. But the good news is that with the gradual opening of the economy, the focus has now shifted to revival from survival.

The number suggests that the economy has slowed down to 3.1 per cent in Q4 but the government has left a caveat that the figures can be revised as the current data is insufficient. Considering the data available with us, the full year 2019-20 GDP growth stood at 4.2 per cent. The government has also revised down the GDP growth in Q1, Q2, and Q3 to 5.2 per cent, 4.4 per cent, and 4.1 per cent respectively. The growth rate of eight core industries for April 2020 fell by 38.1 per cent, compared to a fall of 9 per cent in March 2020. The output of cement fell by 86 per cent; steel by 84 per cent, electricity by 22.8 per cent, fertiliser by 4.5; refinery by 24.2 per cent; crude oil by 6.4 per cent; and coal by 15.5 per cent in April 2020.

However, the market is more concerned with the reopening of the economy which was already under pressure and struggling through a prolonged slowdown. So the usual importance of number has diminished. Market participants are also aware that the GDP numbers may touch unprecedented lows during the April-June quarter as restrictions and lockdowns continue till today. However, the government has announced phased reopening of the economy and significant easing of restrictions in many parts, including restaurants, malls and religious institutions as these are permitted to reopen from June 8. But the Centre has extended the lockdown until June 30 in containment or high-risk zones.

We believe that the poor numbers will be recorded at least in another two quarters and the weakness may continue throughout the year. But not to forget the measures announced by the Centre and the RBI. The large liquidity infusion by RBI, the rate cuts and fiscal measures will aid the revival of the economy albeit at a slow and steady pace. The wound is really very deep.

READERS TO NOTE: As all the modes of communications except digital is no longer active due to lockdown in the country, the printed version of Indian Economy & Market will not be delivered to our esteemed readers by courier and also the magazine will not be available at stalls. So April and May Issue was released in only Digital Format.

Vol 1 | No 32 | June 01, 2020

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MArket MoveMentS

nIFtY SPot

Bank nIFtY SPot

For next week NIFTY has strong support at 9440 level. A Break will take NIFTY up to 9365-9300 levels. On the upper side 9725 will act as strong hurdles while a Cross over will take NIFTY up to 9800-9900 level.

For next week BANK NIFTY has strong support at 18950 levels. A Break will take NIFTY up to 18550 levels. On the upper side 19500 will act as strong hurdle while a Cross over will take NIFTY up to 19750-20050 levels.SAMPLE COPY

ANOTHER MILESTONE

It’s absolute microscopic analysis with a deep study of Financials, Promoter’s credibility, and share movement on technical parameters

IE&M Research Team never suggests a buying/ selling just for the check of itWeeks pass and we suggest no buying or selling.

In March - April for three weeks we didn’t suggest any buying.

Because we care for your hard-earned money.

Endurance Technologies Ltd.

was suggested in the Issue dated

May 25, 2020 @ `641.25In just 4 days on May 29

the stock moved to `734

Giving a return of 14 per cent

WHAT ELSE WE CAN SAY?

NoAstrology.

Recommendation based on any planetary movement.

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Global Markets

FII & DII Activities in May 2020

FII & DII Activities in last one year

MArket DAtA | At A GLAnCe

Index Close Difference (Change in %)

Asia Pacific

Shanghai Composite 2852.35 +6.13 +0.22%

SGX Nifty 9556.00 +42.00 +0.44%

Nikkei 225 21877.89 –38.42 –0.18%

Hang Seng 22961.47 –171.29 –0.74%

Europe

FTSE 100 6076.60 –142.19 –2.29%

DAX 11586.85 –194.28 –1.65%

CAC 4695.44 –75.95 –1.59%

Americas

Dow Jones 25383.11 –17.53 –0.07%

S&P 500 3044.31 +14.58 +0.48%

Nasdaq Composite 0.00 0.00 0.00%

FII (` crore) DII (` crore)Date Net Purchase / Sell Net Purchase / SellMay’2020 13914.49 12293.19

Apr’ 2020 –5208.50 –117.00

Mar’ 2020 –65816.70 55,595.1

Feb' 2020 –12,684.30 16,933.03Jan' 2020 –5,359.51 1,073.49Dec’ 2019 694.12 –740.76Nov’ 2019 12,924.93 –7,970.29Oct’ 2019 8,595.66 4,758.48Sept’ 2019 –6,624.05 12,490.81Aug’ 2019 –14,828.76 20,933.59July 2019 –16,870.13 20,394.52June 2019 –688.50 3,643.31

FII (` crore) DII (` crore)Date Net Purchase / Sell Net Purchase / SellMonth till date 13914.49 12293.19

29-May-20 1,460.71 967.43

28-May-20 2,354.14 144.83

27-May-20 –334.74 2,408.85

26-May-20 4,716.13 2,841.09

22 May 2020 –1,353.90 –344.16

21May 2020 –258.73 401.78

20 May 2020 –1,466.52 2,373.19

19 May 2020 –1,328.31 1,659.74

18 May 2020 –2,512.82 –152.42

15 May 2020 –2,388.04 1,225.5314 May 2020 –2,152.52 802.3613 May 2020 –283.43 232.6512 May 2020 –1,662.03 –364.0011 May 2020 534.87 –821.6008-May-2020 1,724.71 –1,503.1407-May-2020 19,056.49 3,818.4106-May-2020 –493.68 322.4705-May-2020 –323.86 –58.2104-May-2020 –1,373.98 –1,661.61

on Friday, the S&P BSE Sensex rose 223 points to 32,424 while the Nifty50 rose 90 points to close at 9,580. The Nifty rose 6 percent while the Sensex gained 5.7 percent to post their biggest weekly gains since April 6. The action was seen in oil & Gas, FMCG, realty, public sector, and capital goods while selling pressure was visible in IT, telecom, consumer, and power indices. The S&P BSE Midcap index was up more than 2 percent while the S&P BSE Smallcap index rose more than 1 percent.

Last Week

Markets Change in Year till DateSensex 32424.10 –8829.64 –21.40%Nifty 9580.30 –2588.15 –21.27%Nifty Bank 19297.25 –12864.40 –40.00%Nifty IT 14010.50 –1641.90 –10.49%BSE Mid Cap 11843.22 –3124.61 –20.88%BSE 500 12414.85 –3252.59 –20.76%BSE FMCG 10897.67 –508.21 –4.46%

BSE IT 14067.30 –1408.51 –9.10%

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MArket DAtA | At A GLAnCe

nSe – top GainerCompany High Low Last Price Prev Close Change Gain (%)IOC 84.7 77.2 83.2 77.7 5.5 7.08Wipro 214.9 196.15 212.8 199.35 13.45 6.75Coal India 142.45 132.25 141.3 133.9 7.4 5.53ONGC 83.75 77.4 83.2 78.85 4.35 5.52BPCL 347.15 326 342.8 326.45 16.35 5.01Dr Reddys Labs 4,090.70 3,869.30 4,071.25 3,887.75 183.5 4.72Bajaj Auto 2,741.00 2,591.25 2,710.50 2,600.00 110.5 4.25UPL 419.75 388.4 405.85 391.1 14.75 3.77GAIL 93.75 88.1 92.35 89.1 3.25 3.65ITC 198 189 197.35 190.65 6.7 3.51Sun Pharma 481.6 458 474.25 459.1 15.15 3.3Nestle 17,600.00 16,784.55 17,540.80 16,989.15 551.65 3.25Cipla 650.95 631 648.15 628.35 19.8 3.15Larsen 937.5 891 932.25 905.5 26.75 2.95Bajaj Finserv 4,428.95 4,201.50 4,404.90 4,285.95 118.95 2.78Bharti Infratel 242.5 224.3 229.95 223.85 6.1 2.73Hero Motocorp 2,391.90 2,250.00 2,360.85 2,298.10 62.75 2.73Maruti Suzuki 5,666.75 5,375.00 5,610.80 5,468.35 142.45 2.6UltraTechCement 3,940.00 3,794.85 3,904.85 3,809.20 95.65 2.51Vedanta 92.7 89 92.2 89.95 2.25 2.5Asian Paints 1,699.00 1,633.10 1,683.10 1,643.60 39.5 2.4

DividendsCompany Dividend (%) Announcement Record Date

Sanofi India Final 1060 25-02-2020 29-06-2020

Sanofi India Special 2430 26-02-2020 29-06-2020

TATA Cons. Prod Final 270 14-05-2020 18-06-2020

Avantel Final 20 11-05-2020 17-06-2020

Kansai Nerolac Final 315 06 05-2020 12-06-2020

Nestle Final 610 13-02-2020 11-06-2020

Huhtamaki PPL Final 150 17-02-2020 11-06-2020

DIC India Final 45 12-02-2020 04-06-2020

TCS Interim 600 16-04-2020 03-06-2020

Infosys Final 190 20-04-2020 29-05-2020

DIC India Final 45 12-02-2020 04-06-2020

Kewal Kiran Interim 60 26-05-2020 04-06-2020

TCS Interim 600 16-04-2020 03-06-2020

Colgate Interim 1600 15-05-2020 01-06-2020

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MArket DAtA | At A GLAnCe

Company Name High Low Last Price Prev Close Change % LossAdani Ports 330 322.05 323.8 331.8 –8 –2.41Infosys 700.8 674.95 691 707.4 –16.4 –2.32Bharti Airtel 564 543.8 552.6 562.75 –10.15 –1.8TCS 2,002.65 1,962.40 1,972.35 2,004.30 –31.95 –1.59Axis Bank 389.25 375.35 384.95 390.95 –6 –1.53Titan Company 898 875 890 899.45 –9.45 –1.05M&M 450 431.1 436.35 440.4 –4.05 –0.92Reliance 1,472.00 1,452.65 1,464.40 1,472.25 –7.85 –0.53Kotak Mahindra 1,229.80 1,200.05 1,224.00 1,229.45 –5.45 –0.44Tata Steel 296.9 287.85 295.2 295.5 –0.3 –0.1

Company Name Last Price Price Change

(%)

Traded Value

Traded Amount

HDFC 1659.35 2.08% 1.41cr 2,308.96crAxis Bank 383.2 –1.96% 5.65cr 2,163.71crICICI Bank 332.1 1.64% 6.41cr 2,095.40crBajaj Fin. 1952.7 0.30% 1.07cr 2,084.90crTorrent Pharma 2364.8 0.32% 86.80lk 2,061.77crHind. Unilever 2056.9 2.37% 99.64lk 2,023.63crInfosys 691.35 –2.25% 2.89cr 1,994.52crJubilant Food. 1658.5 –1.67% 1.18cr 1,962.44crVodafone Idea 6.55 12.93% 247.56cr 1,958.45crMaruti Suzuki 5612 2.59% 34.81lk 1,925.41crBiocon 354.7 2.65% 4.72cr 1,673.48crTCS 1971.55 –1.68% 74.61lk 1,475.76crHDFC Life Insur. 523.1 1.22% 2.75cr 1,440.25crEicher Motors 16555.55 2.09% 8.68lk 1,437.83crIndraprastha Gas 472.1 0.29% 3.02cr 1,437.04crIndusind Bank 393.3 1.68% 3.46cr 1,350.28cr

nSe – top Losers

Most Active Stocks by valueCompany Name Last Price Price

Change (%)

Traded Value

Traded Amount

SBI 160.3 1.26% 6.72cr 1,070.20crLarsen & Toubro 932.25 2.95% 1.05cr 965.10crUPL 406.75 4.07% 2.35cr 955.67crAvenue Super. 2269.35 –1.69% 38.59lk 879.47crLupin 869.8 –1.32% 97.67lk 842.51crHero MotoCorp 2364.9 3.08% 34.22lk 799.89crDr Reddy's Labs 4057.95 4.35% 19.80lk 795.62crUltratech Cem 3901.8 2.39% 19.77lk 768.33crKotak Mahindra Bank 1223.7 –0.38% 60.93lk 742.41crCipla 647.6 3.07% 1.14cr 732.69crITC 197.45 3.62% 3.72cr 726.06crZee Entertainment 183.4 1.47% 3.96cr 724.95crTata Motors 87 0.00% 8.40cr 721.01crAshok Leyland 42.45 –4.39% 16.45cr 702.68crWipro 212.55 6.65% 3.31cr 689.16crM & M Fin. Serv. 139.95 2.49% 4.80cr 672.17cr

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reCoMMenDAtIon | BASeD on FunDAMentAL AnALYSIS

radico khaitan Ltd. Radico Khaitan Limited is among the oldest and one of the largest manufacturers of Indian Made Foreign Liquor (“IMFL”) in India. Earlier known as Rampur Distillery, Radico Khaitan commenced its operations in 1943 and over the years emerged as a major bulk spirits supplier and bottler to other spirit manufacturers. The Company has three distilleries in Rampur (Uttar Pradesh) and two in joint venture RNV in Aurangabad (Maharashtra) in which Radico Khaitan owns 36% equity. The Company has a total capacity of over 157 million litres and operates 28 bottling units spread across the country.

In 1998 the Company started its own brands with the launch of 8PM Whisky. Radico Khaitan is one of the few companies in India to have developed its entire brand portfolio with inhouse capabilities. The Company’s brand portfolio across the IMFL categories of Whisky, Brandy, Rum and White Spirits includes After Dark Whisky, Contessa Rum, Jaisalmer Indian Craft Gin, Magic Moments Vodka, Magic Moments Verve Vodka,

NSE Symbol RADICO

BSE Code 532497

BSE Index S&P BSE 500

Face Value `2

Current Price `330.25

Buy first part `330-328

Buy second part, if comes `310-308

First Target `365

Holding Time 3 Months

Second Target `450

Holding Time 12 Months

Stop Loss `290

Financial Highlights

Q4FY20 Q3FY20 Q4FY19 FY20 FY19Revenue 585 648 510 2427 2063Operating Profit 82 102 72 371 352Operating Margin 14% 16% 14% 15% 17%Interest 8 8 8 32 36TAX 16 19 18 45 98Net Profit 38 56 39 228 188EPS 2.89 4.17 2.93 17.06 14.10NPM 6.5% 9% 8% 9% 9%Equity 26.71 26.70 26.68 26.71 26.68

(Figures, wherever applicable, are in Rupees Crore)

Morpheus Brandy, Old Admiral Brandy, Pluton Bay Rum, Rampur Indian Single Malt Whisky, Regal Talon Whisky, 1965 – The Spirit of Victory Rum and 8PM Whisky.

Currently, the Company has four millionaire brands which are 8PM Whisky, Contessa Rum, Old Admiral Brandy and Magic Moments Vodka. Over the years, Radico Khaitan has been able to successfully expand its premium brand portfolio. The Company has launched ten new brands over the last decade of which nine are in the premium category. Radico Khaitan is also one of the largest providers of branded IMFL to the Canteen Stores Department (CSD), which has significant business barriers to entry. The Company has been successfully building its brand equity in international markets and currently exports its products to over 70 countries.

Latest Share Holding Pattern Promoter hold stake of 40.31%,

Mutual Funds 11.03%, FIIs & AIFs 21.24%, Madhuri Madhu Kela 1.15%, Ashish Agrawal 1.12% and

other investor public hold 25.15%.

FinancialsIn Q4FY20, the sales of the

Company stood at Rs585 crore from Rs510 crore in Q4FY19. The company’s profit stood at Rs38 crore in Q4FY20, from Rs39 crore in March 2019. During FY20, its PAT grew 21% to Rs228 crore from Rs188 crore in FY19 on sales of Rs2427 crore. The Company has reported EPS of Rs17.06 for FY20.

SuggestionAt present the stock is trading at P/E

ratio of 19.35x. It paid 60% dividend for FY19 and recommended 100% dividend for FY20. Considering all these factors, we recommend a Buy.

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oil and natural Gas Corporation Ltd.

Maharatna ONGC is the largest crude oil and natural gas Company in India, contributing around 75 per cent to Indian domestic production. Crude oil is the raw material used by downstream companies like IOC, BPCL, and HPCL (subsidiary of ONGC) to produce petroleum products like Petrol, Diesel, Kerosene, Naphtha, and Cooking Gas-LPG. ONGC Videsh is a wholly owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC), the National Oil Company of India, and is India’s largest international oil and gas Company. ONGC Videsh has participation in 39 projects in 19 countries namely Azerbaijan, Bangladesh, Brazil, Colombia, Iraq, Israel, Iran, Kazakhstan, Libya, Mozambique, Myanmar, Namibia, Russia, South Sudan, Syria, United Arab Emirates, Venezuela, Vietnam

and New Zealand.

Why it is here?Technically the stock is ready for an up move in short term. One can buy ONGC around Rs83-79 in two parts with stop loss of Rs 76 for an up move to target of Rs 88-91.5-95 in one month.

Disclaimer: Readers must not forget that these observations are purely based on the Technical Analysis and may not be backed by strong fundamentals. The information has been collected by IE&M team from public domain, and other sources like analysts, brokers, fund managers and any other market sources believed to be reliable. The information contained in this document does not have regard to specific investment objectives. Neither IE&M nor any person connected with the organisation, accepts any liability arising from the use of this document. Great care should be taken before taking any decision based on the above information.

BSE Code/ NSE: 500312/ ONGC Face Value: `5 CMP: `83.2052 Weeks H/L (`): 174.65/ 51.80 Market Cap: `104668 Crore

Target: `88 - 91.5 - 95 Stop Loss: `76 Time Period: One Month

BuY`83 - 79

reCoMMenDAtIon | BASeD on teCHnICAL AnALYSIS

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Publication Date

recommendation Stock

recommendation Price

recommended target & Duration

High after recommendation

High Made on Date

Appreciation in %

20th April 2020 BANDHAN BANK 207.5 229-240-250 in 15 days 266 30th April 28%

20th April 2020 TATA MoToR 76 85-94-97 in 15 days 93.75 30th April 23%

20th April 2020 ADANI PoWER 30 34.5-36-38 in 15 days 38.25 27th May 28%

20th April 2020 SUMIToMo 225 300 in 6-9 months 262.75 29th May 17%

27th April 2020 LINCoLN PHARMA 145 170 in 1 month and 200 in 3 months

169 20th May 17%

27th April 2020 JoCIL 140 170 in 1 month and 200 in 3 months

230 4th May 64%

04th May 2020 DBL 245 300-315 in 1 month 274 29th May 12%

04th May 2020 EXCEL IND 660 775-800 in 3 months hit 718 first and SL click later

11th May 2020 GMR INFRA 17.5 19.5-21 in 2 weeks 20.4 29th May 17%

18th May 2020 ADANI ENTER 139 155-161 in 2 weeks 153.6 29th May 11%

25th May 2020 ENDURANCE TECH 645 685-700 in 1 month 734 29th May 14%

Publication Date

recommendation Stock

recommendation Price

recommended target & Duration

High after recommendation

High Made on Date

Appreciation in %

11th May 2020 APoLLo PIPE 308 (Average Buying Price)

375 in 4 months and 500 in 15 months

18th May 2020 MIDHAMI 200 (Average Buying Price)

250 in 2 months and 325 in 12 months

25th May 2020 J K CEMENT 1100 1200 in 1 month and 1500 in 12 months

1181 29th May 7%

SHort terM reCoMMenDAtIonS AFter 20tH APrIL In MoneY MuLtIPLIer

FunDAMentAL reCoMMenDAtIonS AFter 20tH APrIL In MoneY MuLtIPLIerSAMPLE COPY

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In the month of January 2020, IE&M Research Team had prepared a model portfolio for the readers. The

Team believed and still firmly believes that the future of Indian corporate world is brighter, having gone through a robust and sometimes unpleasant cleansing process.

So the base is solid and firm. Following this strong conviction the portfolio was not limited to year 2020

but even beyond that.

–“–We followed Harry Markowitz, who has rightly said, In choosing a portfolio, investors should seek broad diversification, Further, they should understand that

equities - and corporate bonds also - involve risk; that markets inevitably fluctuate; and their portfolio should be such that they are willing to ride out the

bad as well as the good times.

–”–The portfolio is made keeping in mind a moderate

risk taking investor. We started with a well-diversified portfolio of 20 stocks covering

12 sectors.

It was rebalanced just once on April 25, 2020.

In the following pages we present our REPORT CARD, spread over two pages as we have made it for an

investment of Three and Five Lakh.

In this period the benchmark BSE SENSEX is down by –8.89%, NIFTY 50 is down by –8.72% whereas

IE&M’s Multi-millionaire Portfolio is up by 17.93%.

IE&M’s Multi-millionaire

Portfolio

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IMPortAnt InForMAtIon

RIL Rights EntitlementActive trading stopped on May 29 in RIL Rights Entitlement (RE). The share price closed at Rs 222 which is almost 7 percent premium over the intrinsic value (Rs 207.4). The intrinsic value is the difference between Reliance Industries share price (Rs 1,464.40) on May 29 and rights issue price (Rs 1,257). So far RIL RE touched a record high of Rs 258.30 on May 21 and low of Rs 152 on May 20. Now the company will determine the eligibility of shareholders for partly paid-up rights shares.

As per T+2 settlement, shareholder will be eligible for partly paid-up rights shares if he/she holds the Rights Entitlement on June 2 and the payment of first installment (Rs 314.25) has to be made by June 3.

Since the start of trading in Rights Entitlement, more than 8.2 crore RE shares have been traded so far which is over 19 percent of total issue size of 42.26 crore rights shares. On an average, the value of these traded shares stood at over Rs 1,615 crore.

As announces earlier, the partly paid-up rights shares will be allotted and credited to shareholders by June 11 and same shares will be listed on June 12. The second installment of Rs 314.25 will be due in May 2021

and the final installment of Rs 628.50 in November 2021. Shareholders who paid the first installment will get partly paid-up rights shares in their account by June 11 and these shares will be listed on exchanges on June 12. The second installment of Rs 314.25 will be due in May 2021 and last installment of Rs 628.50 in November 2021.

Reliance Industries created a new page in the history of Indian stock market when it launched the biggest ever rights issue of Rs 53,125 crore on May 20. This was the first issue to be available for trading in the Rights Entitlement segment and again it was the first time that shareholders received Rights Entitlement in their demat accounts which was available for trading.

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