View on market: Stay Cautious, be with quality business:
Asian stocks were mixed Wednesday as traders weigh the impact of elevated inflation on the economic recovery and look ahead to earnings reports. Longer term Treasury yields declined. Shares retreated in Japan, edged up in South Korea and fluctuated in Australia. U.S. futures fell after the S&P 500 and Nasdaq 100 dipped, with investors waiting to see whether the profit outlook can repair sentiment. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, rose 0.26% to 18,052 as of 8:00 a.m.
Economic Calender:
- INR: WPI Inflation (YoY) (Sept) on 14th October, 2021.
- INR: Trade Balance (Sept) & FX Reserve, USD on 15th October, 2021.
- USD: Core CPI (MoM) (Sep) on 13th October, 2021.
- USD: PPI (MoM) (Sep) on 14th October, 2021.
Earnings: Infosys, Wipro, Mindtree.
Brokerage Radar:
CLSA ON ADANI PORTS: Maintain outperform at the price of Rs 737 for the target price of Rs 825. Announced its foray into the grade a warehousing market. It intends to leverage its group strength across sea ports, dry ports, airports. It has already secured a land bank for 19 msf, completed strategic deals with Flipkart. India’s GAW mkt could be 370 msf by FY26 & see a CAGR of 17% YoY led by eComm.
JEFFERIES ON TATA MOTORS: Maintain buy at the price of Rs 421 for the target price of Rs 565 (previous target- Rs 435). TPG’s $1 Bn investment values EV biz at $6.7-9.1 bn. A big value boost for an otherwise underappreciated opportunity. Balance sheet strength to drive portfolio electrification. Stock offers many catalysts; revival & mkt share gains in Indian trucks/ PVs. Upcoming launch of next-gen RR/RR-Sport Models at JLR a catalyst too.
International Markets:
U.S & Europe
| Particulars | 12th Oct | Chg | Chg(%) |
| Nasdaq | 14,465.92 | -20.28 | -0.14 |
| Dow | 34,378.34 | -117.72 | -0.34 |
| FTSE | 7,130.23 | -16.62 | -0.23 |
| CAC | 6,548.11 | -22.43 | -0.34 |
| DAX | 15,146.87 | -52.27 | -0.34 |
| Dow Fut.* | 34,220.00 | -40.00 | -0.12 |
Asian markets:
| Particulars | 13th Oct | Chg | Chg(%) |
| SGX Nifty | 18,052.00 | 47.50 | 0.26 |
| Nikkei | 28,183.90 | -46.71 | -0.17 |
| Straits Times | 3,147.64 | 35.59 | 1.14 |
| Hang Seng | 24,962.59 | -362.50 | -1.43 |
| Shanghai | 3,527.39 | -19.55 | -0.55 |
ADR Watch:
| Particulars | 12th Oct | Chg | Chg(%) |
| Dr Reddy | 64.56 | 0.12 | 0.19 |
| HDFC Bank | 73.67 | 1.07 | 1.47 |
| ICICI Bank | 18.88 | 0.11 | 0.59 |
| Infosys | 21.88 | 0.06 | 0.27 |
| Tata Motor | 31.68 | 3.62 | 12.90 |
| Wipro | 8.92 | 0.09 | 1.02 |
Commodities & Currency
| Particulars | Current Price | Chg(%) |
| USD/INR | 75.59 | 0.13 |
| Brent | 83.22 | -0.24 |
| Gold | 1762.65 | 0.19 |
| Silver | 22.593 | 0.35 |
FIIs & DII
| Particulars | 12th Oct | 11th Oct |
| FIIs | -278.32 | -1303.22 |
| DIIs | -741.22 | -373.28 |
News Update:
Tata Motors: The company will raise up to $1 billion (about Rs 7,500 crore) for a new passenger electric vehicle subsidiary (TML EV Co.) from TPG Rise Climate and its co-investor ADQ. The investors will pump in the funds through compulsory convertible instruments for an 11-15% stake in TML EV Co. That would give the company an equity valuation of up to $9.1 billion, Tata Motors said. TML EV Co. will invest over Rs 16,000 crore in the next five years for products, platforms, drive trains and dedicated EV manufacturing and charging infrastructure.
Reliance Industries: Reliance New Energy Solar leads series C financing round in German solar component maker NexWafe. RIL subsidiary will pump $29 million to accelerate product and technology development. Other investors in the $45 million round include InnoEnergy, Lynwood and Saudi Aramco Energy Ventures, among others. Reliance plans to build large-scale solar wafer manufacturing facilities in I in India using NexWafe’s technology.
Centrum Capital: RBI grants small finance bank license to consortium of Centrum Group and Resilient Innovations. The new SFB, Unity Small Finance Bank, to take over assets and liabilities of Punjab & Maharashtra Cooperative Bank. Centrum’s MSME and microfinance book to be merged with the SFB.
IndusInd Bank, Kotak Mahindra Bank: Both banks have received government approval to collect direct and indirect taxes. Customers of both banks will be able to use net banking and mobile applications to pay taxes. Banks can also collect taxes through their branch networks. In February 2021, government lifted its bar on private banks from taking up government business.
Zee Entertainment Enterprises: Representatives of Invesco proposed a deal to Zee’s CEO Punit Goenka in February, involving the merger of the company and certain entities owned by a large Indian group, the media firm said. Zee’s board met on Tuesday to consider a note addressed to them by Goenka. He said he had expressed his apprehension to Invesco that as the merging entities of the Indian group were over-valued, it would cause a loss to Zee shareholders. The proposed deal by Invesco representatives had valued public holding in Zee at Rs 21,130 crore. The company’s board also took note of an open letter issued by Invesco on October 11 and said it will respond to comments made in the letter.
Power Grid Corporation of India: Board has given investment approval for setting up of electric vehicle charging station in Navi Mumbai at an estimated cost of Rs 14.23 crore. It has also approved incorporation of wholly owned subsidiary to undertake telecommunications and digital technology business of Power Grid.
Bajaj Finserv: Trustee company under the name of Bajaj Finserv Mutual Fund Trustee Limited has been incorporated as a wholly owned subsidiary of the company.
Source: Moneycontrol, Livemint,, Bloomberg, 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