View on market: Volatility Prevails, Market is searching for better value
Asian markets were set to climb Thursday after U.S. inflation slid to a two-year low, easing pressure on global markets from rising interest rates in the world’s biggest economy. Futures for benchmarks in Hong Kong and Australia pointed to strong opening gains while contracts for Japan suggested a smaller move upward, in part reflecting the drag from the recent rebound of the yen. The U.S. consumer price index rose 3% in June from a year ago. The core measure, which economists view as the better indicator of underlying inflation, advanced just 4.8%, the lowest since 2021. The inflation data propelled the S&P 500 to finish at its highest since April 2022. The tech-heavy Nasdaq 100 outperformed with a jump of 1.2%. At 05:24 a.m., the GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India was unchanged at 19,591.5.
- USD : Initial Jobless Claims on 13th July, 2023
- USD : PPI (MoM) (Jun) on 13th July, 2023
- INR : WPI Inflation (YoY) (Jun) on 14th July, 2023
- INR : Bank Loan Growth on 14th July, 2023
JPM ON TCS: UW, TP cut to Rs 2650; 1Q24 broadly in-line with expectations of CC QQ flat & margins declining 130bps QQ; Growth dragged down by Telecom, Hitech & BFSI; Co witnessing near term softness driven by uncertainty driving project pauses & deferrals
JEFFERIES ON HCL TECH: Hold, TP Rs 1205; 1Q missed est mainly due to unexpected rev decline in both Services & Software segments; Deal wins soft though management expects stronger deal wins in 2Q; Despite miss, co maintained guidance of 6-8% YoY cc for growth &18-20%for margins
U.S & Europe:
Commodities & Currency
FIIs & DIIs:
|Particulars||12th July||11th July|
Oil Stocks: To be in focus after Brent crude futures hit $80.05 a barrel amid signs of tightening supplies and slower-than-expected U.S. inflation.
Titan Company, Kalyan Jewellers India, and Jewellery Stocks: The Central Government has restricted the import of unstudded gold and certain gold articles. Importers would require permission from the government to import these gold products. Restrictions will not apply to imports under the India-UAE free trade agreement.
JSW Steel: The company will replace HDFC on the S&P BSE Sensex from July 13. On July 5, the stock exchange made the announcement. HDFC, which merged with HDFC Bank earlier this month, will delist from the benchmark index today.
Patanjali Foods: The company’s promoter will sell a 7% stake over two trading days. Patanjali Ayurved will sell 2.53 crore shares, or a 7% stake, in Patanjali Foods on July 13 and 14. The floor price of the offer shall be Rs 1000 apiece. The promoter will have the option to additionally sell up to 2% in the event of oversubscription.
SpiceJet: Promoter to invest Rs 500 crore to strengthen the airline’s financial position. Ajay Singh, also the CMD of SpiceJet, will infuse capital through equity and or convertible securities on a preferential basis. Funds to be considered equity shares of promoters in the government’s ECLG scheme.
Dr. Reddy’s Laboratories: The drugmaker’s biologics license application for its proposed biosimilar rituximab has been accepted by the U.S. Food and Drug Administration, the European Medicines Agency, and the U.K. Medicines and Healthcare Products Regulatory Agency. The biosimilar will be used in the treatment of rheumatoid arthritis, non-Hodgkin’s lymphoma, chronic lymphocytic leukaemia, pemphigus vulgaris, granulomatosis with polyangiitis, and microscopic polyangiitis.
Aurobindo Pharma: The company’s unit, APL Healthcare, has received final approval from the U.S. Food and Drug Administration to manufacture and sell Sevelamer Hydrochloride Tablets in doses of 400 mg and 800 mg, equivalent to Renagel Tablets of Genzyme Corporation. The drug has an estimated market size of around $37 million for the twelve months ending May 2023, according to IQVIA. Sevelamer Hydrochloride Tablets are used to treat chronic kidney disease.
Hindalco Industries: The company approved a proposal to sell its land at Kalwa in Maharashtra for Rs 595 crore and 1.5% of the sales revenue to Birla Estates, a unit of Century Textiles and Industries.
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)
Analyst Certification (For Reports)
Kiran Tahlani, Elite Wealth Limited, firstname.lastname@example.org
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.
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.
Important disclosures, including price charts, are available and all Elite Wealth Limited covered companies by visiting https://www.elitewealth.in, or e-mailing email@example.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 firstname.lastname@example.org.
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
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:
- 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;
(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.