Market-View-Feature-Image

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

Stocks and U.S. equity futures declined Monday, as the possibility of a de facto European Union embargo on Russian gas and the threat of curbs on oil led to surge in oil and natural gas prices. Treasury yields rose, as a jump in energy costs amid rising concerns over inflation concerns. Japanese shares fell, as did S&P 500 and Nasdaq 100 contracts. The Singapore-traded SGX Nifty, an early barometer of India’s benchmark Nifty 50, fell 0.20% to 17,293.50 points as of 6:45 a.m. Elsewhere, bitcoin fell below $40,000.

Economic Calendar:

  • INR: RBI MPC Meeting on 22nd April 2022.
  • INR: Bank Loan Growth on 22nd April 2022.
  • USD: IMF Meeting 18th April, 2022.
  • USD: Building Permit 18th April, 2022.

Quarterly Result Today:

Mindtree, SE Power, Star Housing

Q4Fy22 Earning:

Infosys Q4 FY22 (Consolidated, QoQ) Revenue up 1.28% at Rs 32,276 crore Vs Rs 31,867 (Bloomberg Estimate: Rs 32,726.90 crore) Net profit fell 2.1% at Rs 5,686 crore Vs 5,809 crore (Bloomberg Estimate: Rs 5,968 crore) EBIT fell 7% at Rs 6,956 crore Vs Rs 7,484 crore (Bloomberg Estimate: Rs 7,655 crore) EBIT Margins 21.5% Vs 23.5% (Bloomberg Estimate: 23%) Recommended dividend of Rs 16 per share.

HDFC Bank Q4FY22 (Consolidated, YoY) Net profit at Rs 10,055.18 crore, up 23% from Rs 8,186.51 crore (Bloomberg consensus estimate: Rs 10,269.6 crore) Net interest income at Rs 18,872.74 crore, up 10.2% from Rs 17,120.15 crore. Gross NPA at 1.17% in Q4 FY22 vs 1.26% QoQ Net NPA at 0.32% in Q4 FY22 vs 0.37% QoQ.

Brokerage Radar:

MORGAN STANLEY ON TATA POWER: Downgrade to UW, TP raised to Rs 244 With Green biz monetization & Mundra merger getting NCLT approval, stk lacks catalysts Further, given int coal prices our est factor in a goldilocks situation for both Mundra & Indonesian coal JV Prefer NTPC & ReNew.

MORGAN STANLEY ON NTPC : OW, TP Raised to Rs 186 from Rs 150 a) Being a play on India’s energy transition as it embarks building sizeable RE biz (being valued at 12x EV/EBITDA or Rs 18/sh) b) Improving thermal biz viz improving ESG metrics, time capacity commissioning & strong FCF yield.

CREDIT SUISSE ON HDFC BANK: Strong growth trends, NIMs remain soft Capital levels remain strong, with CET-1 at 16.7% Increase EPS by 2-3% With strong loan growth & contained credit costs, even as bank focuses on growing liabilities, expect RoEs of 16-17%,decline in NIM Expect as retail growth picks up and its loan mix improves, its NIM will only gradually recover Prefer ICICI, Axis & SBI over HDFC Bk.

CLSA ON INFOSYS: Buy, TP Rs 2040 Weak 4Q22 print; demand outlook strong but margins under pressure Cut FY23/FY24 EPS forecasts by 5%/4% – could dampen investor sentiment in near term However, stock’s 8% YTD underperformance limits downside

International Markets:

U.S. & Europe:

Particulars 14th Apr Chg Chg(%)
Nasdaq 13,351.08 -292.51 -2.14
Dow 34451.23 -113.36 -0.33
FTSE 7,616.38 35.58 0.47
CAC 6,589.35 47.21 0.72
DAX 14,163.85 87.41 0.62
Dow Fut.* 34357.50 -93.2 -0.27

Asian markets:

Particulars 18th Apr Chg. Chg(%)
SGX Nifty 17,253.50 -75.5 -0.44
Nikkei 26,596.66 -496.53 -1.83
Straits Times 3,318.54 -17.31 -0.52
Hang Seng 21,518.08 143.71 0.67
Shanghai 3,198.62 -12.62 -0.39

ADR Watch:

Particulars 14th Apr Chg. Chg.(%)
Dr Reddy 56.01 0 0
HDFC Bank 58.91 0 0
ICICI Bank 19.69 0 0
Infosys 20.46 0 0
Tata Motor 27.75 0 0
Wipro 7 0 0

Commodities & Currency:

Particulars Current Price Chg(%)
USD/INR 76.18 0.06
Brent 112.48 0.77
Gold 1983.50 0.44
Silver 26.04 1.32

FIIs & DII:

Particulars  13th Apr  12th Apr
FIIs -2061.04 -3128.39
DIIs 1410.85 870.01

News Update

Future Retail: Company says that Bank of India has initiated insolvency proceedings against the company, under IBC at NCLT.

Tata Steel: To consider share split on May 3. Firm to also announce its quarterly earnings on May 3.

Tata Power: Blackrock-led group signs binding agreement with Tata Power’s renewable energy. The group will invest Rs 4,000 crore by way of equity or compulsorily convertible instruments.

JSW Steel: The company has redeemed senior unsecured fixed rate notes aggregating to $500 million.

RITES: Power Mech Projects JV has emerged as lowest bidder for construction of Depot cum Workshop at Challaghatta Depot of Bangalore Metro Rail Project. The order value is Rs. 499.41 crore.

Bharat Forge: The company plans to sell 3-year bonds of upto Rs 200 crore, Bloomberg reported. Ambuja Cement: The company’s shareholder Holcim is considering a potential sale of its stake. Holcim controls 63.1% of the company.

Den Networks: Q4 net income at Rs 49.97 crore vs Rs 36.98 crore YoY

ICICI Prudential Life: Q4 net income at Rs 185 crore vs Rs 63.78 crore YoY

       Source: Moneycontrol, Livemint,, Bloomberg, 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