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

Asian stocks were steady early Friday after U.S. shares and Treasuries rallied as investors judged that a jump in inflation is likely to be transitory, leaving scope for ongoing central-bank support. Japanese shares fluctuated, South Korea rose and Australia slipped. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, was little changed at 15,794.50 as of 8:15 a.m. The 10-year U.S. Treasury yield held most of an earlier drop to 1.43%, its lowest point since March. The yield declined after a brief jump on above-forecast gains in U.S. consumer prices. The dollar retreated.The CPI increase in May was driven largely by categories associated with a broader reopening of the economy, as vaccinations bring the pandemic under control. Despite some signs of wider price pressures, concerns about a spike in longer-term borrowing costs that could destabilise global markets have eased.

Key Data/ Action, Result, and Board meeting to watch

Major economic Data:

  • INR: Industrial Production YoY APR on 11th June, 2021
  • INR: Foreign Exchange Reserves on 11th June, 2021
  • USD: Core Retail Sales (MoM) (May) on15th June, 2021
  • USD: PPI (MoM) (May) on 15th June, 2021

Earnings to Watch:

Earnings: DLF, BEML, Bharat Heavy Electricals, CG Power and Industrial Solutions, Cochin Shipyard, Deccan Cements, DFM Foods, Heranba Industries, Likhitha Infrastructure, Lumax Industries, Max Ventures and Industries, Patel Engineering, Sun TV Network

International Markets:

U.S & Europe

Particulars    10th June. Chg Chg(%)
Nasdaq 14,020.33 108.58 0.78
Dow 34466.24 19.1 0.055
FTSE 7,088.18 7.17 0.1
CAC 6,546.49 -16.96 -0.26
DAX 15,571.22 -9.92 -0.06
Dow Fut.* 34456.5 -4.5 -0.01

Asian markets:

Particulars    11th June. Chg Chg(%)
SGX Nifty 15,794.50 19 0.12
Nikkei 28,923.30 -35.26 -0.12
Straits Times 3,165.99 3.49 0.11
Hang Seng 28,808.34 69.46 0.24
Shanghai 3,597.15 -13.71 -0.38

ADR Watch:

Particulars       10th June. Chg Chg(%)
Dr Reddy 72.61 0.82 1.14
HDFC Bank 77.24 -0.01 -0.01
ICICI Bank 17.61 0.18 1.03
Infosys 19.89 0.23 1.17
Tata Motor 23.56 0.14 0.6
Wipro 8.24 0.08 0.98

Commodities & Currency

Particulars Current Price Chg(%)
USD/INR        73.05 0.11
Brent 71.98 -0.74
Gold 1902.85 0.34
Silver 28.188 0.56

FIIs & DII

Particulars         10th June.     9th June.
FIIs         1329.70      1422.71
DIIs -575.19      -1626.98

 

Results:

Eclerx Services Q4FY21 (Consolidated, QoQ) Revenue 20% at Rs 472.8 crore Vs Rs 394.30 crore Net profit up 38% at Rs 98.30 crore Vs Rs 71.20 crore Ebitda up 36% at Rs 152.40 crore Vs Rs 112 crore Ebitda margin at 32.2% Vs 28.4% Recommended dividend of Re 1 per share Constant currency growth at 19.3%. Offshore growth stronger than onshore.

NHPC Q4FY21 (Consolidated, QoQ) Revenue down 32% at Rs 1,609.17 crore Vs Rs 2,359.68 crore Net profit down 51% at Rs 427.55 crore Vs Rs 869.21 crore Ebitda down 60% at Rs 548.10 crore Vs Rs 1,364.21 crore Ebitda margin at 34.1% Vs 57.8%

News Update:

NHPC: Approved raising up to Rs 4,300 crore through issuance of secured, redeemable, taxable, non-cumulative, non-convertible taxable corporate bonds in FY22.

Suven Pharmaceuticals Ltd, CSIR-Indian Institute of Chemical Technology, Hyderabad and CSIR-National Institute of Interdisciplinary Science & Technology, Thiruvananthapuram: have entered into an agreement for the process technology transfer and manufacturing of the anti-Covid drugs, Molnupiravir and 2-DG. This is a related party transaction as one of the Independent Directors of SPL, S Chandrasekha is also the Director of CSIR-IICT, Hyderabad. The agreements between the parties involve a total fee of Rs 8 lakh plus taxes for the grant of the licenses on a non-exclusive basis to SPL.

GOCL Corporation: The company and its wholly owned subsidiary, IDL Explosives, have bagged orders of Rs 286.63 crore from Coal India. The company will supply raydets, electronic and other detonators and cartridge explosives over a period of 2 years to Coal India.

Godrej Properties: Godrej Projects Development, a wholly owned subsidiary of the company, has acquired 20% issued and paid-up share capital of Vagishwari Land Developers for Rs 29.99 crore

Reliance Industries: Partly paid-up equity shares will be entitled to dividend of Rs 3.50 per share for FY21.

Mangalore Refinery and Petrochemicals: Approved the scheme of amalgamation of ONGC Mangalore Petrochemicals with the company. The amalgamation will create greater synergies between the business operations of both the companies, result in optimal utilisation of resources and will maximise returns to the entire group, the company said.

Power Grid Corp: To consider a free share issue on June 17.

Cosmo Films: Cosmo Speciality Chemicals, a subsidiary of the company, has launched a new product called Fabritizer, an after-wash laundry sanitizer for germ-free clothing.

Indian Bank: Declared the non-performing accounts of Emmsons International, Runit Fabrics and KR Corporation as fraud and reported them to the RBI.

Yes Bank: To seek shareholders approval to raise up to Rs 10,000 crore via issue of debt securities.

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 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, advisory 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 Advisory 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 Advisory or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;
(b) EWL Advisory 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 Advisory 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 Advisory or its associates have not received any compensation from the subject company in the past twelve months;
(b) EWL Advisory or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;
(c) EWL Advisory 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 Advisory 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 Advisory 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 Advisory 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 Advisory
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 Advisory or its proprietor has never served as an officer, director or employee of the subject company;
(5) EWL Advisory has never been engaged in market making activity for the subject company;
(6) EWL Advisory shall provide all other disclosures in research report and public appearance as specified by the Board under any other regulations.