Market View 1st March 2023

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

Asian markets are poised for a cautious open after the U.S. equities closed lower, rounding out a turbulent month that saw global stocks drop about 3%. The S&P 500 and Nasdaq 100 both dropped in February while an index of dollar strength had its first monthly gain since September as investors recalibrated for a higher likely peak in US interest rates. The dollar held little changed in early Asian trading. Meanwhile, the yield on 10-year Treasuries advanced to 3.94%. Crude prices were trading around $83-mark, while Bitcoin was trading below 23,500-level. At 6:15 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, was down 0.19% at 17,366. The domestic benchmark indices continued their downward trend to close in the red for the eighth day in a row after erasing marginal gains from opening trade. Rupee snapped its two-day decline against the U.S. dollar to close higher over hopes of RBI intervention and a pause in the greenback’s rally.

Economic Calendar:

• USD : ISM Manufacturing PMI (Feb) on 01^st March, 2023
• USD : Initial Jobless Claims on 02^nd March, 2023
• INR : Nikkei S&P Global Manufacturing PMI (Feb) on 01^st March, 2023
• INR : FX Reserves, USD on 03^rd March, 2023

Brokerage Radar:

CITI ON FEDERAL BANK: Buy, TP Rs 165; Articulated strategy on enhanced distribution, diversified mix, leveraging digital/fintech partnerships & pivoting toward high-margin products; Key to watch i)ensuring cost, capital & credit efficiency ii)narrowing RoA gap with peers

UBS ON DR LAL PATHLABS: Buy, TP Rs 2600; Pricing at Metropolis in Delhi remains largely unchanged vs. July 2022; Low pricing power has been key concern for listed diagnostic names

NOMURA ON CEAT: Neutral, TP Rs 1617; While volume growth momentum is likely to remain subdued, commodity tailwinds & declining capex intensity should drive ROEs to 12-13% over FY24-25F; Believe current valuation at 5.7x FY24F EV/EBITDA already factors in this.

International Markets:

U.S & Europe

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

One97 Communications Ltd.: The parent company of Paytm told the exchanges that it is not part of any negotiations where major stakeholders are planning to offload shares of the company in the open market.

Vedanta Ltd.: In a filing to Singapore Stock Exchange, Vedanta Resources, which owns a majority stake in the company, assured that it is capable of meeting its upcoming maturities in the quarter ending June 2023. The company said it is in an advanced stage to secure a fresh loan of $1 billion, as well as close to finalise $750 million bilateral facilities with various relationship banks.

Adani Enterprises Ltd.: The company’s subsidiary Mundra Aluminium has been granted the Kutrumali bauxite block located in Kalahandi and Rayagada districts of Odisha. The mineral block has 128 million tonnes of bauxite reserves.

Adani Ports and Special Economic Zone Ltd.: S&P Global affirmed its ‘BBB-‘ rating for Adani International Container Terminal Pte. Ltd., a 50:50 joint venture of the company with Terminal Investment Ltd. The outlook is stable.

Reliance Industries Ltd.: The company incorporated a wholly owned subsidiary named Reliance SOU to develop properties for commercial use.

Aditya Birla Capital Ltd.: The company collaborated with the National Payments Corporation of India to develop and promote digital payment methods through subsidiaries for its customers.

Zydus Lifesciences Ltd.: The company received final approval from US FDA for 2.5 mg and 5 mg variations of Apixaban tablets. The company also received US FDA approval for Olmesartan Medoxomil and Hydrochlorothiazide tablets.

Bharat Electronics Ltd.: The defence PSU signed a frame supply agreement with Nagpur-based Thales Reliance Defence Systems for the manufacture and supply of transmit/receive modules, radar line replaceable units and micro modules.

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