View on market: Stay Cautious, be with quality business:
U.S. equity futures, crude oil and Treasury yields climbed Monday as investors tried to calibrate economic risks from the omicron coronavirus strain, bringing some calm back to markets S&P 500, Nasdaq 100 and European contracts jumped, WTI oil rallied back above $70 a barrel and the 10-year U.S. Treasury yield rose past 1.50%. Asian stocks fell but the moves were modest compared with Friday’s global equity selloff. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, rose 0.81% at 17,182.00 as of 8:05 a.m.
Economic Calendar:
- INR: Infrastructure Output (YoY) (Oct) on 30th November, 2021.
- INR: GDP Quarterly (YoY) (Q2) on 30th November, 2021.
- USD: Pending Home Sales (MoM) (Oct) on 29thNovember, 2021.
- USD: CB Consumer Confidence (Nov) on 30thNovember, 2021.
Brokerage Radar:
UBS ON ASHOK LEYLAND: Maintain buy at the price of Rs 126 for the target price of Rs 155. Stock Could React Negatively CEO’s Departure. Constructive On Strong Talent Pool, Strong Positioning In Domestic CV Ind. Positive On Cyclical Demand Recovery & High Operating & Financial Leverage. Recent Correction Further Improves The Risk-reward.
MACQUARIE ON PAYTM: Maintain underperform at the price of Rs 1783 for the target price of Rs 1200. Net Payments Revenue Down 22% QOQ. HIFY22 Losses Already At 70% Of their FY22 Estimate. Op Revenue Grew 64% YoY Vs 107% YoY GMV Growth. Revenue Will Lag GMV Going Forward & Take Rates Will Come Down.
MS ON BANKS: RBI Updates Ownership And Corporate Structure Regulations For Private Banks RBI Rules Benefit Indusind & Kotak Bank Key Positive Is A Higher Promoter Stake Cap At 26% Vs 15% Currently. On Harmonization of Corp Structures to NOFHC, RBI Was Silent On Legacy Bank.
International Markets:
U.S & Europe
| Particulars | 26thNov | Chg | Chg(%) |
| Nasdaq | 15,491.66 | -353.57 | -2.23 |
| Dow | 34,899.34 | -905.04 | -2.53 |
| FTSE | 7,044.03 | -266.34 | -3.64 |
| CAC | 6,739.73 | -336.14 | -4.75 |
| DAX | 15,257.04 | -660.94 | -4.15 |
| Dow Fut.* | 35122.00 | 267.00 | 0.77 |
Asian markets:
| Particulars | 29thNov | Chg | Chg(%) |
| SGX Nifty | 17,182.00 | 138.50 | 0.81 |
| Nikkei | 28,746.49 | -5.13 | -0.02 |
| Straits Times | 3,139.48 | -26.79 | -0.85 |
| Hang Seng | 23,980.00 | -100.52 | -0.42 |
| Shanghai | 3,556.58 | -7.51 | -0.21 |
ADR Watch:
| Particulars | 26th Nov | Chg | Chg(%) |
| Dr Reddy | 60.74 | -1.60 | -2.57 |
| HDFC Bank | 68.42 | -3.56 | -4.95 |
| ICICI Bank | 19.30 | -1.17 | -5.72 |
| Infosys | 22.77 | -0.82 | -3.48 |
| Tata Motor | 32.24 | -1.21 | -3.62 |
| Wipro | 8.72 | -0.27 | -3.00 |
Commodities & Currency
| Particulars | Current Price | Chg(%) |
| USD/INR | 74.87 | 0.36 |
| Brent | 74.72 | 4.37 |
| Gold | 1797.75 | 0.54 |
| Silver | 23.655 | 2.25 |
FIIs & DII
| Particulars | 26thNov | 25th Nov |
| FIIs | -5785.83 | -2300.65 |
| DIIs | 2294.11 | 1367.80 |
News Update:
Reliance Industries: Reliance Jio to increase tariffs. Price of the entry-level JioPhone plan will increase by 21.3% to Rs 91. Prices of unlimited voice bundles and data add-ons will increase by 20%. New tariffs will be effective from December 1, 2021.
SBI: RBI has imposed Rs 1 crore penalty on the bank. Penalty was levied after RBI’s supervisory inspection of SBI’s financial position as of March 2018 and March 2019. On supervisory inspection it was revealed that SBI, as pledgee, held stake higher than 30% in borrower companies. This is in contravention of Section 19 of the Banking Regulation Act.
Ashok Leyland: Vipin Sondhi will step down as Managing Director and Chief Executive Officer of the company with effect from December 31, 2021. Dheeraj Hinduja, chairman will take over as executive chairman with immediate effect.
Tata Chemicals: The company is in talks to buy the battery materials business of London-based Johnson Matthey in a deal that can provide an edge to the Tata group in the fast-growing electric vehicle market, two people with direct knowledge of the plan said. The Tata group company is one of the frontrunners in the race to buy this key business from Johnson Matthey, the people said, requesting anonymity. A deal could be struck at a valuation of $500-700 million, they added.
IndusInd Bank: The billionaire Hindujas brothers are looking to increase their stake in IndusInd Bank Ltd., the lender they founded, now that the Reserve Bank of India has eased ownership rules for the country’s private sector banks. Ashok Hinduja, who chairs founding firm IIHL, said in a statement Saturday he’s waiting to act until details of the new rules are spelled out by the RBI, which is also the nation’s banking regulator.
Mahindra & Mahindra: Mumbai-based automotive-to-technology major Mahindra & Mahindra has entered the World Index list of companies in the Dow Jones Sustainability Index (DJSI) 2021.
Paytm: The company posted a loss of Rs 473 crore, up 8.5 percent from Rs 382 crore compared to the corresponding quarter last year. Its revenue from operations for the second quarter jumped 63.6 percent to Rs 1,086.4 crore on a Year-On-Year basis.
Welspun Corp: The company has acquired Mahatva Plastic Products and Building Materials, a newly incorporated company with objects of Polymer products business, from an unrelated party with an intention to make it a Special Purpose Vehicle for organic/inorganic growth.
Salasar Techno Engineering: The company has secured orders worth Rs 170 crore from RITES.
GHCL: The company has signed a MoU with the Government of Tamil Nadu for investing Rs 500 crore in the state.
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@elitewealth.in 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@elitewealth.in
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