Market View 16th January 2023

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

Asian equities are set to open the week with a tailwind from US stocks closing at the highest in a month as easing inflation expectations fuel January’s global share rally. At 5:59 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, was up 0.11% to 18,058.5. Indian stocks are in for a busy week with economic data, ongoing quarterly earnings, and foreign fund trading activity deciding the direction for investors. The third quarter season has begun with big IT names, and this week market will react to the earnings of some major names, including HDFC Bank, IndusInd Bank, Asian Paints, JSW Steel, and HUL. Overseas investors in Indian equities were net sellers for the 16th day in a row on Friday. Foreign portfolio investors offloaded stocks worth Rs 2,422.39 crore, while the domestic institutional investors mopped up stocks worth Rs 1,953.4 crore.

Economic Calendar:

• USD : Retail Sales (MoM) (Dec) on 18th January, 2023
• USD : PPI (MoM) (Dec) on 18th January, 2023
• INR : WPI Inflation (YoY) (Dec) on 16th January, 2023
• INR : Infrastructure Output (YoY) (Dec) on 31st January, 2023

Q3FY23 Results Today: Federal Bank, Bank of Maharashtra, Angel One

Brokerage Radar:

CITI ON JUST DIAL: Buy, TP Rs 735; 3Q top line in-line but margins ahead; Strong top-line growth (+39% YoY) aided by both campaigns growth (+19% YoY) as well as realizations recovery (+18% YoY)

MS ON HDFC BK: Rev growth strong (22% YoY, 2% above MSe); Core PPoP growth continues to improve – now at 19% YoY (vs. 12% YoY in F22). Retail TD growth was strong (30% YoY, 10% QoQ)

NOMURA ON WIPRO: Neutral, TP Rs 425; Growth hurt by furloughs & lower discretionary spends; Brace for near-term weakness; increasing deal tenures leading to delay in translation to immediate growth; Margin recovery strong, new base set

International Markets:

U.S & Europe

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Mahindra & Mahindra: The Mumbai bench of NCLT has approved the merger of Mahindra Electric Mobility with the company.

Lupin: U.S. FDA inspected Lupin’s Somerset, New Jersey, U.S.A.manufacturing facility and closed with issuance of Form-483 with two observations.

Aster DM: Malabar Institute of Medical Sciences, a material subsidiary of Aster DM Healthcare, has entered into an agreement to acquire 99.99% stake in Cantown Infra Developers for Rs 15.22 crore.

L&T Finance Holdings: The board approved the amalgamation of L&T Finance, L&T Infra Credit and L&T Mutual Fund Trustee with the company. The company appointed Vinay Chhawchharia as chief risk officer for two years, effective Jan. 13, 2023.

Karnataka Bank: The bank appointed Sekhar Rao as Executive Director for a period of three years.

State Bank of India: The bank hiked one-year lending year by 10 basis points to 8.4%, with effect from Jan. 15.

Tata Steel: The company said British Steel Pension Scheme with Tata Steel U.K. as sponsor has completed a substantial part of its de-risking journey with 60% of its liabilities now insured by an insurance company.

Tata Motors: The company filed Form 25 with the Securities and Exchange Commission to termination of its American Depository Share programme.

Whirlpool of India: The company appointed Narasimhan Eswar as managing director from April 4, 2023, for five years after the resignation of Vishal Bhola from the position.

Dr. Reddy’s Laboratories: The company acquired the trademark rights of the breast cancer drug Primcyv from Pfizer Products India for use in the Indian market.

Jet Airways: The Mumbai bench of NCLT approved transfer of the airline’s to the Jalan-Kalrock consortium.

HG Infra Engineering: The company received a letter of acceptance from Delhi Metro Rail Corporation for a project with estimated cost of Rs 399 crore.

Delhivery: The company completed the acquisition of Algorhythm Tech on Jan. 13.

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)
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