View on market: Stay Cautious, be with quality business:
Asian equity futures were mixed and the dollar held losses on Thursday after treasury yields fell on signs of easing inflationary pressure in the U.S. Contracts for the S&P 500 were little changed after the benchmark rose 0.4% Wednesday. Nasdaq 100 futures were also steady following a 1.1% rise in the tech-heavy benchmark, which closed at the highest level since August. The move in the Japanese currency weighed on the nation’s equity futures, which inched lower alongside Australian contracts. Futures for Hong Kong were marginally higher. Headline U.S. inflation eased to 4.9% in April, the first reading below 5% in two years and below consensus expectations. Core inflation remained at 5.5%. Meanwhile, the yield on 10-year treasuries in U.S. was trading at 3.43%. Crude prices traded below $77-mark, while Bitcoin declined below 28,000-level. At 6:09 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was up 0.20% at 18,395. Domestic benchmark indices picked up towards the end of session after swinging between gains and losses. The Indian rupee inched against the U.S. dollar as the greenback suffered due to cautious investor sentiment.
Economic Calendar:
- USD : PPI (MoM) (Apr) on 11th May, 2023
- USD : Initial Jobless Claims on 11th May, 2023
- INR : CPI (YoY) (Apr) on 12th May, 2023
- INR : Industrial Production (YoY) (Mar) on 12th May, 2023
Q4 Results Today: Asian Paints, Eicher
Motors, PDS, Deepak Nitrite, Balrampur Chini Mills, Zensar Technologies, Ujjivan Small Finance Bank, Intellect Design Arena, Dr Lal Pathlabs, Care Ratings, Siemens, Aditya Birla Capital, Ajmera Realty & Infra India, Alkyl Amines Chemicals, BLS International Services, DCW, Everest Industries, Gillette India. Gujarat State Petronet, GTL Infrastructure, Kirloskar Brothers
Brokerage Radar:
JEFFERIES ON L&T: Buy, TP raised to Rs 2900; 4Q EBITDA weaker as E&C margins were 120 bps lower YoY at 9.1%; FY23 order flow growth up 19% YoY vs guidance of 12-15% YoY; Management guided for 10-12% YoY order flow growth & 12-15% YoY rev growth in FY24E
NOMURA ON HNDALCO: Buy, TP Rs 540; Novelis 4Q: profitability weak led by weak can demand, in line with est. Beverage can demand could continue to be weak; Novelis’management has guided for destocking to continue in 1QFY24 as well
GS ON DR REDDY’S: Neutral, TP Rs 4750; Weak qtr, management upbeat of medium term prospects; Co reiterated that it expects gRevlimid to continue to contribute meaningfully to topline ; Q4 adj. EBITDA margins grew by 27bps yoy to 22.3% (-570bps vs GSe)
International Markets
U.S & Europe:
| Particulars | 10th May | Chg. | Chg.(%) |
| Nasdaq | 12306.44 | 126.89 | 1.04 |
| Dow | 33531.33 | -30.48 | -0.09 |
| FTSE | 7741.33 | -22.76 | -0.29 |
| CAC | 7361.20 | -35.97 | -0.49 |
| DAX | 15896.23 | -59.25 | -0.37 |
| Dow Fut.* | 33547.90 | 16.60 | 0.05 |
Asian markets
| Particulars | 11th May | Chg. | Chg.(%) |
| SGX Nifty | 18397.50 | 39.00 | 0.21 |
| Nikkei | 29062.04 | -60.14 | -0.21 |
| Straits Times | 3233.12 | -9.17 | -0.28 |
| Hang Seng | 19739.52 | -22.68 | -0.11 |
| Shanghai | 3319.26 | 0.11 | 0.00 |
ADR Watch:
| Particulars | 10th May | Chg. | Chg.(%) |
| Dr. Reddy | 58.55 | -1.82 | -3.01 |
| HDFC Bank | 68.33 | 2.34 | 3.55 |
| ICICI Bank | 23.01 | 0.12 | 0.52 |
| Infosys | 15.30 | 0.03 | 0.20 |
| Wipro | 4.66 | 0.01 | 0.22 |
Commodities & Currency
| Particulars | Current Price | Chg.(%) |
| USD/INR | 81.95 | 0.03 |
| Brent | 77.02 | 0.80 |
| Gold | 2039.45 | 0.12 |
| Silver | 25.585 | -0.28 |
FIIs & DIIs:
| Particulars | 10th May | 09th May |
| FIIs | 1833.13 | 1942.19 |
| DIIs | -789.67 | 404.70 |
News Update:
Larsen & Toubro: AM Naik will step down as non-executive chairman of the company from Sept. 30, and will be conferred the status of chairman emeritus. SN Subrahmanyan, the chief executive officer & managing director, has been re-designated as the chairman and managing director of the company, with effect from Oct. 1, 2023.
Rail Vikas Nigam/Siemens: The consortium of the two companies received an order worth Rs 300.11 crore from Mumbai Metropolitan Region Development Authority for design, manufacture, supply, installation, testing and commissioning of two 110KV receiving substations for main line and depot of Mumbai Metro line 2B. Siemens is the lead consortium partner with 60% share, and RVNL holds 40% share.
Oil India: Stimul-T, the owner of Project License-61 oil block in Tomsk, Russia, has filed for bankruptcy. Oil India owns 50% stake in WorldAce tnvestment, the parent company of Stimul-T, through its subsidiary Oil India International BV. Meanwhile, the Numaligarh refinery allotted 20.03 crore partly paid-up shares to the company on May 10 at Rs 110 per share, taking its stake in the refinery to 73.27%.
Zydus Lifesciences: The company received establishment inspection report from the U.S. FDA for the inspection conducted at its facility in Moraiya, Ahmedabad without any observations. The pre-approval inspection, conducted from Jan. 23 to 27, covered transdermal patch products.
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 pMarket View 13th April 2023reviously 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