Market-View-Feature-Image

View on market: Stay Cautious, be with quality business:

Asian stocks extended their decline Tuesday amid surging oil prices, as concerns that commodity costs will fan inflation and choke economic expansion intensified. Equities retreated in Japan, Australia and South Korea. U.S. futures were volatile after the S&P 500 posted its worst drop since 2020, as it fell 3%.Singapore-traded SGX Nifty, an early barometer of India’s benchmark Nifty 50 Index, fell 1.29% to 15,638.50 points as of 6:40 am. Oil pushed higher after closing at a near 14-year peak. European gas, nickel and wheat hit unprecedented levels Monday. Among cryptocurrencies, Bitcoin was trading near $38,000, nursing recent losses.

Economic Calendar:

  • INR: Manufacturing Output on 11th March 2022.
  • INR: WPI Inflation on 14th March 2022.
  • USD: Federal Budget Balance on 11th March, 2022.
  • USD: Trade balance on 8th March, 2022.

Brokerage Radar:

MORGAN STANLEY ON HERO MOTOCORP: UW, TP Cut to Rs 1937 vs Rs 2400 Taking into a/c weaker-than-expected vol, lower earnings est 2w industry has passed on all cost pressures to date, but continuing inflationary pressures could delay demand recovery, especially for entry level segment.

MORGAN STANLEY ON SBI CARDS: OW, TP Rs 1215 Industry spending (+35% YoY) declined by 6.5% MoM, likely owing to impact of COVID 3 SBIC posted a lesser decline of 5.7% MoM (+45% YoY) and gained market share With respect to cards in force, industry added 1.3mn cards on a net basis.

CLSA ON HAL: Buy, TP Rs 1740 Hnas emerged as an integrated producer of aircraft & helicopter vs an assembler of Russian aircraft This has reduced its share of Russian-spares-driven biz to 7% of its backlog and 25% of revenue, HAL’s dependence on Russia is in its repairs & overhaul (RoH) business, but we believe its well-stocked inventory of spares protects it from sanctions till end-2022.

CREDIT SUISSE ON ULTRATECH CEMENT: O-P, TP cut to Rs 7500 from Rs 9250 Coal price sensitivity is about Rs500/ton for every  US$100/ton increase in high calorific value coal. Crude sensitivity is lower, as about 30% of freight cost depend on diesel prices, At current spot prices of coal & crude, & market price of cement, sector is not profitable at EBITA level Maintain OP as crisis driven spike can be short lived.

Credit Suisse Tactically Downgrade India to UW from OW Downgrade is largely based on Oil Still like India’s +ve EPS revisions & positioning in credit & property cycles, but India is most vulnerable to higher oil prices, along with Philippines, Rich valuations magnify the short-term risks Use funds freed from India to raise China from Market Weight to Overweight

International Markets:

U.S & Europe:

Particulars 07th Mar Chg Chg(%)
Nasdaq 12,830.96 -482.48 -3.62
Dow 32817.38 -797.42 -2.37
FTSE 6,959.48 -27.66 -0.4
CAC 5,982.27 -79.39 -1.31
DAX 12,834.65 -259.89 -1.98
Dow Fut.* 32814.7 -20.2 -0.07

Asian markets:

Particulars 08th Mar Chg. Chg(%)
SGX Nifty 15,756.50 -86.5 -0.55
Nikkei 25,143.52 -77.89 -0.31
Straits Times 3,179.36 -8.46 -0.27
Hang Seng 21,133.03 75.4 0.36
Shanghai 3,343.43 -29.43 -0.87

ADR Watch: 

Particulars 07th Mar Chg. Chg.(%)
Dr Reddy 48.27 -0.89 -1.81
HDFC Bank 54.48 -2.76 -4.82
ICICI Bank 16.39 -1.07 -6.13
Infosys 22.58 0.12 0.53
Tata Motor 24.75 -1.58 -6
Wipro 7.24 -0.08 -1.09

Commodities & Currency:

Particulars Current Price Chg(%)
USD/INR 76.96 1.05
Brent 127.07 3.05
Gold 1992.95 -0.16
Silver 25.723 0.01

FIIs & DII:

Particulars 7th Mar 4th Mar
FIIs -7482.08 -7631.02
DIIs 5331.03 4738.99

News Update:

Dish TV: SEBI passed an interim order against the company, promoter, and MD Jawahar Goel, and the board of directors for alleged violation of listing regulations. The capital markets regulator also directed the compliance officer to disclose the voting results of the AGM and told depositories to freeze the demat accounts of Dish TV’s directors and compliance officer until they are out.

Natco Pharma: The company first generic version of Revlimid (Lenalidomide capsules) in the U.S. market for treatment of multiple myeloma in combination with the medicine dexamethasone, certain myelodysplastic syndromes, and mantle cell lymphoma following specific prior treatment. The capsules are available in 5 mg, l0 mg, 15 mg, and 25 mg strengths.

NLC India: The company declared interim dividend of Rs 1.5/share.

Metro Brands: The company declared interim dividend of Rs 1.5 per share. Chief Operating Officer Sahel Kamdar resigned.

Sun TV Network: The company declared interim dividend of Rs 5 per share.

Axis Bank: Report on Citi India retail deal speculative. Lender denies taking any such decision.

Future Retail: Shareholders, creditors to meet on April 20-21 to discuss the Reliance deal.

ICICI Prudential Life: February new business premium falls 22.8% year-on-year.

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