Market View 13th September 2023

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

On Wednesday, Asian stocks are expected to open cautiously as markets around the world prepare for a crucial inflation data that is anticipated to provide information about the trajectory of the Federal Reserve’s main interest rate. Despite supply constraints globally, oil prices rose. While contracts for Hong Kong marginally increased and a measure of Chinese businesses with U.S. listings showed little change, futures for Japanese and Australian shares indicated slight drops. The U.S. stock market was negatively impacted by a collapse in technology businesses, with the Nasdaq 100 declining 1.1%. Nearly 2% was lost by Apple Inc., which also revealed the iPhone 15 and other goods. S&P 500 prices fell 0.6%. Prices for Brent Crude were over $92 per barrel at the same time. The yield on the 10-year U.S. bond was trading at 4.28% and Bitcoin was below 26,000-level. At 05:21 a.m., the GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India was down 21 points or 0.10% at 20,148.

Economic Calendar:

• USD : CPI (MoM) (Aug) on 13^th Sep, 2023
• USD : PPI (MoM) (Aug) on 14^th Sep, 2023
• INR : WPI Inflation (YoY) (Aug) on 14^th Sep, 2023
• INR : FX Reserves, USD on 15^th Sep, 2023

Brokerage Radar:

BERNSTEIN ON ZOMATO: Outperform Rating; Target Raised To Rs 120; Continues To Raise Profitability Bar With Break-even 3 Quarters Ahead Of Target; Strong Execution & Profit Has Reinforced Investor Confidence; Stock Has Graduated From ‘GMV Multiple’ To ‘Profit Multiple’; Medium-term EV/EBITDA Multiple Look Reasonable

NOMURA ON HUL: BUY, TP Rs 2950; 2Q24F: Anemic demand; GPM to improve but OPM muted; Weak 2Q expected as demand remains unchanged with ltd. signs of improvement; significant step up in A&P to drag down EBITDA growth; 2Q demand trends: Vol growth in low single-digits y-y

CLSA ON CEMENT: Strength in demand continued in July & Aug; There has been an unseasonal price increase in Sept.  However, that is partly offset by a sharp jump in fuel costs; As such, don’t see a case for upward revision in earnings yet while val remains elevated

International Markets

 U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DIIs:

News Update:

NTPC: The power company completed the trail operation of Unit 1 of the 800 MW capacity of Stage I of the Telangana Super Thermal Power Project and consequently included it in its installed capacity. With this, the installed capacity of NTPC and the NTPC Group has become 57,838 MW and 73,824 MW, respectively. Infosys: The IT major has tied up with STARK Group, Europe’s largest retailer and distributor of building materials, to establish a state-of-the-art data centre in Denmark, which will serve as the foundation to drive technological advancements with an ‘AI first’ approach powered by Infosys Topaz.

Wipro: Wipro Holdings (UK) has transferred 100% of its shareholding in Wipro 4C NV to Wipro IT Services UK Societas, effective Sept 12. Wipro Holdings (UK) and Wipro IT Services UK Societas are wholly-owned subsidiaries of the company, while Wipro 4C NV is the step-down subsidiary. The rationalisation and simplification of the overall group structure is the objective behind the stake transfer.

IRCTC: The company signed an MoU with NBCC Services for the planning, designing, and execution of interior works for its upcoming office space in Delhi. The cost of the project is Rs 31.4 crore.

Tata Power: Subsidiary Tata Power Solar Systems, signed an MoU with the Small Industries Development Bank of India to finance MSMEs for solar adoption.

Mahindra and Mahindra: Company has been fined Rs 1,69,949 by the Assistant Commercial Taxes Department, Begumpet Division, Hyderabad for not reversing VAT ITC, as per an exchange filing. It also added that it is hopeful for a favourable outcome at the appellate level.

Avenue Supermarts: The retailer has opened a new store in Perungudi, Tamil Nadu, taking the total number of stores to 334.

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