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

With attention on China’s lending prime rates, share indices in the Asia-Pacific area recovered Friday’s losses to trade higher. At 06:33 a.m., the Nikkei 225 was up 226.68 points, or 0.61%, at 37,295.03, and the KOSPI index was up 15.30 points, or 0.59%, at 2,607.16. The People’s Bank of China will release its one-year and five-year loan prime rates on Monday; the latter will receive more attention than the former because of its strong correlation with numerous real estate mortgages. According to Bloomberg, the Big Tech sell-off put further pressure on the US stock market, as traders continued to be wary of geopolitical threats ahead of the weekend. As of Friday, the Nasdaq composite and S&P 500 Index had both dropped by 2.05% and 0.88%, respectively. The Dow experienced a 0.56% increase.

Economic Calendar:

  • USD : Building Permits on 23rd April, 2024
  • USD : Manufacturing PMI (Apr) on 23rd April, 2024
  • INR : Nikkei Services PMI on 23rd April, 2024
  • INR : FX Reserves, USD on 26th April, 2024

Brokerage Radar:

JEFFERIES ON HDFC BANK: Buy, TP Raised to Rs 1880; Q4 profit of Rs165bn below est., but PPOP inline & adj. for one-offs EPS was at Rs21 & ROA at 1.9%. Key +ve was slight rise in NIMs; Deposit growth was strong at 17% (merger adj.), but loan growth lagged at 12%

MS ON HDFC AMC: EW, TP Rs 33250; PAT beat MSe due to lower deferred tax charge; PBT was in line. Operating profit 5% below MSe as revenue yields contracted sharply, partially due to a one-off; Trim F2025- 27e EPS due to lower yields & stay EW given elevated vals

UBS ON VOLTAS: Upgrade to Buy, TP raised to Rs 1800; Believe co will surprise on market share in room air conditioner segment, reaching 23% in FY26E vs 19.5% for consensus; VoltBek JV should also continue to gain market share & boost profitability by breaking even in FY26E; Expect incremental revenue of Rs100bn (60% of FY27E revenue) in consumer electronics segment by FY27E. Lift FY24-26E EPS 4-31% & expect 20%/28% revenue/EBITDA CAGRs over FY23-26E

International Markets:

U.S & Europe:

Particulars 19th April Chg. Chg.(%)
Nasdaq 15282.01 -319.49 -2.05
Dow 37986.40 211.02 0.56
FTSE 7895.85 18.80 0.24
CAC 8022.41 -0.85 -0.01
DAX 17737.36 -100.04 -0.56
Dow Fut.* 38058.57 72.17 0.19

Asian markets:

Particulars 22nd April Chg. Chg.(%)
GIFT Nifty 22275.00 71.50 0.32
Nikkei 37334.97 266.62 0.71
Straits Times 3227.25 50.74 1.57
Hang Seng 16555.36 331.22 2.00
Shanghai 3062.41 -2.85 -0.09

ADR Watch:

Particulars 19th April  Chg.       Chg.(%)
Dr. Reddy 71.12 0.21 0.30
HDFC Bank 59.06 1.68 2.93
ICICI Bank 25.68 0.25 0.98
Infosys 16.81 0.30 1.82
Wipro 5.25 0.09 1.74

Commodities & Currency:

Particulars Current Price Chg.(%)
USD/INR 83.42 0.06
Brent 86.55 -0.85
Gold 2378.20 -1.47
Silver 27.94 -3.13

FIIs & DIIs:

Particulars 19th April 18th April
FIIs                          129.39 -4260.33
DIIs -52.50 2285.52

News Update:

Dr. Reddy’s Laboratories: The company launched the condition management programme DailyBloom IBS, India’s first integrated care plan for irritable bowel syndrome.

Tata Steel: NCLT has approved the amalgamation of Angul Energy with the company.

Central Bank of India: The company signed an agreement with Aditya Birla Sun Life AMC for the distribution of mutual fund products.

Laurus Labs: The USFDA completed an inspection of the company’s API manufacturing facilities in Andhra Pradesh. The inspection was conducted from April 15 to April 19. The inspection was successfully closed without any 483 observations.

NTPC: The company’s arm, NTPC Green Energy, signs a pact with Indus Towers to create a joint venture for green energy objectives. The company and Indus Tower JV will explore renewable energy projects. The company plans to have 60 GW of renewable energy capacity by 2032.

KPIT Technologies: The company completed the acquisition of PathPartner Technology for Rs 191 crore.

Aditya Birla Fashion And Retail: The board approved the demerger of the Madura Fashion and Lifestyle business into a separate listed entity, Aditya Birla Lifestyle Brands.

Allcargo Gati: The total volume, including surface and air express, stood at 111 kt, up 3% YoY.

Sterlite Technologies: The arbitrator rejected a claim worth Rs 145 crore against BSNL.

Ujjivan Small Finance Bank: The company received approval from the National Company Law Tribunal for the Scheme of Amalgamation with Ujjivan Financial Services.

Sanghvi Movers: Sham Dattatraya Kajale, joint MD and CFO, has stepped down from the position of joint MD and will be continuing as CFO.

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;

  1. 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.

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;

  1. 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.