Market View 11th October 2023

View on market: Volatility Prevails, Market is searching for better value

After its greatest surge since April, oil slipped lower as Asian markets opened higher. Early trading on Wednesday saw an increase in Australian shares as well as those in South Korean and Japanese markets. The S&P 500 increased for a third day, getting close to 4,400 on Tuesday. PepsiCo Inc. increased on an optimistic prediction, and Amazon.com Inc. increased during its fall offer for Prime users. The CBOE Volatility Index, or VIX, a measure of anxiety on Wall Street, dropped to a two-week low. The yield on the 10-year U.S. bond was 4.64% at the time, while Bitcoin was trading above the 27,000 mark. WTI crude was trading above the $85 level, while Brent crude was trading above $87 a barrel.

Economic Calendar:

• USD : PPI (MoM) (Sep) on 11^th Oct, 2023
• USD : FOMC Meeting Minutes on 11^th Oct, 2023
• INR : Manufacturing Output (MoM) (Aug) on 12^th Oct, 2023
• INR : CPI (YoY) (Sep) on 12^th Oct, 2023

Brokerage Radar:

CITI ON BOB: Buy, TP Rs 245; Embargo on customer onboarding onto ‘bob World’ mobile application; Will moderate pace of new customer acquisition, as 43% of FDs/RDs & 44% PPF are being opened through bob World; Also 89% of PLs sanctioned digitally

MS ON PHOENIX MILLS: OW, TP Rs 2200; 2QFY24 Retail sales and rental growth accelerated; 1H24 consumption was 45% of FY24 target of Rs. 115 bn, but 2HFY is usually stronger. Preferred stock in India’s property sector as it can deliver more than 20% income growth

International Markets

 U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DIIs:

News Update:

Titan Company: The company’s board will be meeting on Oct. 17 to consider the issuance of non-convertible debentures on a private placement basis within the permissible borrowing limits.

Wipro: The IT major has completed a subscription to the 9.95% equity share capital of FPEL Ujwal, which is engaged in the business of developing, building, and managing a portfolio of solar power assets.

Bank of Baroda: RBI had directed the lender to suspend the onboarding of new customers onto its ‘bob World’ app due to certain supervisory concerns. The bank has said it has initiated steps to plug in gaps in its app, and it will work closely with the RBI to address their concerns as soon as possible.

Samvardhana Motherson International: The company has incorporated Motherson Groups Investments USA Inc. as an indirect wholly owned subsidiary for the purpose of acquiring, investing and holding movable and immovable assets of the group.

PI Industries: Therachem Research Medilab (India) and Solis Pharmachem have been merged into parent company PI Health Sciences, a wholly owned subsidiary of PI Industries.

Thermax: The Bombay High Court granted stay of operation and execution of the arbitral award, subject to the company depositing Rs 218.45 crore, which is returnable with interest in the event the award is set aside by the Court.

Zee Entertainment: The company has been served with an appeal on behalf of IDBI Trusteeship Services against it before the NCLAT, Delhi. The appeal challenges the scheme of arrangement involving Zee Entertainment Enterprises, Bangla Entertainment, and Culver Max Entertainment.

Crompton Greaves Consumer Electricals: The company launched a new product named Acenza in the Storage Water Heater segment.

Fine Organic Industries: The company has incorporated a wholly owned subsidiary ‘Fine Organic Industries (SEZ) Private Limited’ with a share capital of Rs 1,00,000 for the purpose of carrying on the business of manufacturing specialty chemical products.

MCX: The Multi Commodity Exchange of India will go live with the new commodity derivatives platform on Oct. 16. The exchange will conduct mock trading on Oct. 15.

Birla Corporation: The Office of Collector, Satna (Madhya Pradesh), has imposed a penalty of Rs 8.43 crore on the company for excess production of limestone from captive mining without obtaining environment clearance for the period from 2000-01 to 2006-07.

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)

Kiran Tahlani, Elite Wealth Limited, kirantahlani@elitestock.com

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 e-mailing 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
2. 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

Provided that research analyst or research entity shall not be required to make a disclosure as per sub-clauses (c), (d) and (e) of clause (ii) or sub-clauses (a) and (b) of clause (iii) to the extent such disclosure would reveal material non-public information regarding specific potential future investment banking or merchant banking or brokerage services transactions of the subject company.
(4) EWL or its proprietor has never served as an officer, director or employee of the subject company;
(5) EWL has never been engaged in market making activity for the subject company;
(6) EWL shall provide all other disclosures in research report and public appearance as specified by the Board under any other regulations