Market View 2nd November 2022

View on market: Stay Cautious, be with quality business:

Asian equities were mixed on Wednesday, driven by declines in U.S. stocks after hopes of Federal Reserve softening its hawkish stance faded amid strong U.S. jobs data. Japan’s Topix gauge edged higher while the Nikkei 225 fell. South Korean shares inched higher while Australian shares were up slightly. Futures for Hong Kong fell and U.S. contracts fluctuated. Meanwhile, U.S. stocks pared losses in a volatile session to come off session lows, with U.S. Fed’s policy announcement close at hand. Meanwhile, bond yields changed little with 10-year Treasuries returning 4.05%. The S&P 500 fell 0.3%, while the tech-heavy Nasdaq 100 fell 0.7%. Crude oil rose 2.4%, bolstered by speculations of China reopening. Gold rose 0.6%, while Bitcoin grew 0.2% to trade around $20,400-level. Domestic benchmarks indices again closed higher with gains in supporting the surge ahead of Federal Reserve policy announcement. Rupee closed higher against the U.S. dollar, rising seven paise after a volatile session. At 6:54 a.m., the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — slipped 0.16% to 18,225.5.

Economic Calendar:

• USD : Fed Interest Rate Decision on 02nd November, 2022
• USD : Initial Jobless Claims on 03rd November, 2022
• INR : Nikkei Services PMI (Oct) on 03^rd November, 2022
• INR : Bank Loan Growth on 04th November, 2022

Q2FY23 Result Today: Adani Transmission, Dalmia Bharat, EIH, GATI, Gravita India, JK Paper, Kajaria Ceramics, KSB, Mahindra Holidays & Resorts India, MTAR Technologies, Procter & Gamble Hygiene & Health Care, Redington, SIS, and Triveni Turbine

Brokerage Radar:

MS ON CANSAI NEROLAC: UW, TP Rs 415;KNP’s earnings missed est. for top line & margins; Auto segment demand recovered in 2Q; Management expects decorative paint demand in 3Q to be weak

CLSA ON CHOLA FIN: O-P, TP Rs 820; Loan growth healthy; opex & cost of funds slightly higher; Cut est. by 4-6% primarily due to higher opex; Asset quality performance in line; steady-state; ROE strong at 19-20%

NOMURA ON TECH MAH: Buy, TP Rs 1160; 2Q broadly in line; outlook sketchy; Revenue performance strong, despite pruning initiatives in 2Q FY23; Margin expanded 40bp in 2Q FY23; likely to improve in 2H FY23F; Deal wins remain robust

International Markets:

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Adani Ports and Special Economic Zone: Consolidated profit increased by 65.5% YoY to Rs 1,738 crore for the quarter ended September FY23, supported by top line, operating income and lower tax cost. Revenue surged 33% YoY to Rs 5,211 crore for the quarter. Cargo for the quarter stood at 86.6 MMT, a 15% YoY growth.

Tech Mahindra: Consolidated revenue increased by 3.3% QoQ to Rs 13,129 crore for the quarter. Revenue in dollar terms grew by 0.3% QoQ to $1,638 million and it clocked 2.9% growth in revenue in constant currency terms. The company has declared special dividend of Rs 18 per share.

Voltas: Consolidated loss of Rs 6 crore for the quarter ended September FY23 as against a profit of Rs 104 crore for the same period last year, impacted by provision made on an overseas project. Total income for the quarter at Rs 1,833 crore rose by 5.5 percent compared to the year-ago period.

Grasim Industries: The board approved issue of non-convertible debentures worth up to Rs 1,000 crore on private placement basis.

IDFC First Bank: The board will meet on Nov. 04, 2022, to consider capital plan of the bank for the next one year and to explore raising of capital through various permissible modes.

Indian Bank: The bank will hike MCLR and TCLR in a range of 15-25 basis points and 45-50 basis points, respectively, across tenors from Nov. 3, 2022.

ONGC/Reliance Industries: The government has cut windfall tax on crude petroleum to Rs 9,500 per tonne, and raised the same on export of diesel and ATF to Rs 13 per litre and Rs 5 per litre, respectively.

Source: Moneycontrol, Bloomberg Quint, Investing

Disclosure in pursuance of Section 19 of SEBI (RA) Regulation 2014

Elite Wealth Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only information in making their investment decision and must exercise their own judgment before making any investment decision.
For analyst certification and other important disclosures, see the Disclosure Appendix, or go to www.elitewealth.in. Analysts employed by Elite Wealth Limited are registered/qualified as research analysts with SEBI in India.( SEBI Registration No.: INH100002300)
Disclosure Appendix
Analyst Certification (For Reports)
Israil Khan, Elite Wealth Limited, suhail@elitewealth.in
The analyst(s) certify that all of the views expressed in this report accurately reflect my/our personal views about the subject company or companies and its or their securities. I/We also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Elite Wealth Limited.
As to each individual report referenced herein, the primary research analyst(s) named within the report individually certify, with respect to each security or issuer that the analyst covered in the report, that:
(1) all of the views expressed in the report accurately reflect his or her personal views about any and all of the subject securities or issuers; and
(2) no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in the report.
For individual analyst certifications, please refer to the disclosure section at the end of the attached individual notes.
Research Excerpts
This note may include excerpts from previously published research. For access to the full reports, including analyst certification and important disclosures, investment thesis, valuation methodology, and risks to rating and price targets, please visit www.elitewealth.in.
Company-Specific Disclosures
Important disclosures, including price charts, are available and all Elite Wealth Limited covered companies by visiting https://www.elitewealth.in, or emailing research@elitestock.com with your request. Elite Wealth Limited may screen companies based on Strategy, Technical, and Quantitative Research. For important disclosures for these companies, please e-mail research@elitestock.com.
Options related research:
If the information contained herein regards options related research, such information is available only to persons who have received the proper option risk disclosure documents. For a copy of the risk disclosure documents, please contact your Broker’s Representative or visit the OCC’s website at https://www.elitewealth.in
Other Disclosures
All research reports made available to clients are simultaneously available on our client websites. Not all research content is redistributed, e-mailed or made available to third-party aggregators. For all research reports available on a particular stock, please contact your respective broker’s sales person.
Ownership and material conflicts of interest Disclosure
Elite Wealth Limited policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst’s area of coverage. Analyst compensation: Analysts are salary based permanent employees of Elite Wealth Limited. Analyst as officer or director: Elite Wealth Limited policy prohibits its analysts, persons reporting to analysts from serving as an officer, director, board member or employee of any company in the analyst’s area of coverage.
Country Specific Disclosures
India – For private circulation only, not for sale.
Legal Entities Disclosures
Mr. Ravinder Parkash Seth is the Managing Director of Elite Wealth Ltd (EWL, henceforth), having its registered office at Casa Picasso, Golf Course Extension, Near Rajesh Pilot Chowk, Radha Swami, Sector-61, Gurgaon-122001 Haryana, is a SEBI registered Research Analyst and is regulated by Securities and Exchange Board of India. Telephone:011-43035555, Facsimile: 011-22795783 and Website: www.elitewealth.in
EWL discloses all material information about itself including its business activity, disciplinary history, the terms and conditions on which it offers research report, details of associates and such other information as is necessary to take an investment decision, including the following:
1. Reports
a) EWL or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;
(b) EWL or its associates or relatives, have no actual/beneficial ownership of one per cent. or more in the securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance;
(c) EWL or its associate or his relative, has no other material conflict of interest at the time of publication of the research report or at the time of public appearance;
2. Compensation
(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
(b) EWL or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;
(c) EWL or its associates have not received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
(d) EWL or its associates have not received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
(e) EWL or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.
3 In respect of Public Appearances
(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
(b) The subject company is not now or never a client during twelve months preceding the date of distribution of the research report and the types of services provided by EWL