Market View 12th March 2024

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

As investors refrained from making new wagers prior to the announcement of the U.S. CPI print for February, share indices in the Asia-Pacific region were trading in a mixed manner. The Nikkei 225 was down 466.02 points, or 1.20%, at 38,354.47 as of 06:37 a.m. as traders began to anticipate that the Bank of Japan would stop its negative interest rate policy next week following the nation’s avoidance of a recession. For the sixth straight session, the yen’s rise against the US dollar persisted. On Monday, the Nasdaq Composite and S&P 500 Index both saw declines of 0.41% and 0.11%, respectively. At the close, the Dow Jones Industrial Average was up 0.12%.

Economic Calendar:

• USD : CPI (YoY) (Feb) on 12^th March, 2024
• USD : PPI (MoM) (Feb) on 14^th March, 2024
• INR : CPI (YoY) (Feb) on 12^th March, 2024
• INR : WPI Inflation (YoY) (Feb) on 14^th March, 2024

Brokerage Radar:

JEFFERIES ON LTMINDTREE: Buy, TP cut to Rs 5890; Resignation of LTIM’s CFO, alongside a slew of other senior-level exits, suggests that LTIM still faces integration issues. Given this, may take longer to realize rev synergies; Cut est. by 5-9% & expect 15% EPS CAGR in FY24-26

CLSA ON GAIL: Sell, TP Rs 165; Takeaways from Vijaipur site visit; Key pilot projects to supplement Gail’s sustainability goals; These initiatives, which include green hydrogen & captive solar power generation, underscore Co’s commitment for energy transition & to be net zero by 2040

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DIIs:

News Update:

Aditya Birla Capital: The board approved the amalgamation of the wholly owned unit Aditya Birla Finance with the company. The merger is subject to the sanction of the National Company Law Tribunal and other necessary approvals from the Reserve Bank of India and other shareholders.

ITC: British American Tobacco is preparing to kick off a sale of part of its stake in the company as soon as this week. Amidst this, about 12 million equity shares (0.09% stake) changed hands in a large trade on Monday. It increased its stake in Sproutlife Foods to 44.74% for Rs.50 crore.

SpiceJet: Chief Operating Officer Arun Kashyap and Chief CommercialOfficer Shilpa Bhatia has resigned from the airline, PTI reported.

Rail Vikas Nigam: The company emerged as the lowest bidder from Central Railway for signalling and telecommunication work for the provision of automatic block signalling on Khapri- Sewagram section of Nagpur Division. It also received a construction order worth Rs 339 crore from Maharashtra Metro Rail Corp.

Adani Enterprises: The survey of Dharavi will commence on March 18 from Kamla Raman Nagar to digitally collect data from lakhs of informal tenement residents.

H.G. Infra Engineering: The company received a letter of award worth Rs 862.11 crore from the National Highways Authority of India.

Jupiter Wagons: The company received an order worth Rs 957 crore from the Ministry of Railways to manufacture and supply 2,237 units of BOSM wagons.

Mahindra and Mahindra: The company reported total production at 73,380 units vs. 58,203 units YoY for the month of February.

Pitti Engineering: The company will buy Bagadia Chaitra Industries for an enterprise value of Rs 124.92 crore.

Wipro: The IT major has expanded its partnership with Nutanix to launch a new Nutanix-focused business unit.

Imagicaaworld Entertainment: The company announced its successful bid to establish a landmark concept at the iconic Sabarmati Riverfront in Ahmedabad for Rs 130 crore.

Triveni Engineering and Industries: The company acquired a 25.43% stake in Sir Shadi Lal Enterprises for Rs 35 crore with the objective of expanding its business operations in sugar and alcohol businesses.

IRB Infrastructure Developers: The company’s unit, IRB Lalitpur tollway, achieves financial closure for the NH-44 project with Rs 3,500 crore in project finance from the lender.

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;

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

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.