View on market: Stay Cautious, be with quality business:
Stocks extended a selloff Friday and investors sought havens, including bonds and gold, on geopolitical risks from the Ukraine standoff. Shares retreated in Japan, South Korea and Australia. U.S. futures stabilised after the S&P 500 tumbled and the Nasdaq 100 shed 3%.Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, fell 0.12% to 17,246.50 as of 7:40 a.m. Crude oil dipped as traders balanced the potential return of Iranian barrels against the risk of disruption to Russian energy supplies. Cryptocurrencies have suffered sharp falls, leaving Bitcoin below $41,000.
Economic Calendar:
- INR: Forex Reserve on 18th February 2022.
- INR: Forex Reserve on 25th February 2022.
- USD: Existing Home Sales on 18th February, 2022.
- USD: FOMC Member Brainard speaks on 19th February, 2022.
Brokerage Radar:
GOLDMAN SACHS ON INDIA GREEN HYDROGEN POLICY:See RIL, Renew, & L&T as key beneficiaries Although benefits will likely accrue more towards end of this decade as cost structures decline & demand pools become meaningful. Hyper integration could position RIL as a low cost hydrogen supplier.
CREDIT SUISSE ON LIFE INSURANCE: Expect margin pressure to continue driving underperformance for private insurers. Stay UNDERPERFORM on IPRUNEUTRAL on HDFC Life/SBI Life.
CREDIT SUISSE ON NBFC: Valuations attractive, most NBFCs trading 1 SD below Long Term average. (save for BAF & Chola) Prefer HDFC (housing cycle recovery), Chola (>20% ROEs & optionality from new loan products), & STFC (cyclical recovery, attractive valuations) Remain cautious on LICHF & PNBHF.
MORGAN STANLEY ON NESTLE: OW, TP Rs 15712, 4Q earnings ahead estimates on better margins. Weaker growth in largest category, margin pressures from inflation headwinds & likely mix deterioration (higher rural focus), & relative valuation keep us UW.
CREDIT SUISSE ON NESTLE: Neutral, TP Rs 20000,Healthy volume growth, relatively lower margin pressure. Nestle faces relatively lower input cost pressures compared to other FMCG cos,While are positive on medium-term outlook, stay NEUTRAL on stretched valuations.
International Markets:
U.S & Europe:
| Particulars | 17th Feb | Chg | Chg(%) |
| Nasdaq | 13,716.72 | -407.38 | -2.88 |
| Dow | 34312.03 | -622.24 | -1.78 |
| FTSE | 7,537.37 | -66.41 | -0.87 |
| CAC | 6,946.82 | -18.16 | -0.26 |
| DAX | 15,267.63 | -102.67 | -0.67 |
| Dow Fut.* | 34449.4 | 136.9 | 0.41 |
*As per 18th Feb.
Asian markets:
| Particulars | 18th Feb | Chg. | Chg(%) |
| SGX Nifty | 17,246.50 | -20.5 | -0.12 |
| Nikkei | 27,094.16 | -138.71 | -0.51 |
| Straits Times | 3,438.34 | -3.23 | -0.09 |
| Hang Seng | 24,670.03 | -122.74 | -0.5 |
| Shanghai | 3,465.69 | -2.35 | -0.07 |
ADR Watch:
| Particulars | 17th Feb | Chg. | Chg.(%) |
| Dr Reddy | 56.13 | -0.62 | -1.09 |
| HDFC Bank | 65.96 | -1.56 | -2.31 |
| ICICI Bank | 19.72 | -0.45 | -2.23 |
| Infosys | 22.43 | -0.41 | -1.8 |
| Tata Motor | 32.97 | -0.08 | -0.24 |
| Wipro | 7.36 | -0.09 | -1.21 |
Commodities & Currency:
| Particulars | Current Price | Chg(%) |
| USD/INR | 75.11 | 0.05 |
| Brent | 92.46 | -0.55 |
| Gold | 1892.85 | -0.49 |
| Silver | 23.832 | -0.18 |
FIIs & DII:
| Particulars | 17th Feb | 16th Feb |
| FIIs | -1242.10 | -1890.96 |
| DIIs | 901.10 | 1180.14 |
News Update:
Ambuja Cements Q3FY22 (Standalone, YoY): Revenue up 6% at Rs 3,735.12 crore vs Rs 3,515.11 crore Net profit down 49% at Rs 251.66 crore vs Rs 497.10 crore Ebitda down 26% at Rs 567.88 crore vs Rs 767.83 crore Margin at 15.2% vs 21.8% Recommended a final dividend of Rs 6.30 per share. Approved in principle an investment of Rs 3,500 crore for a cement grinding expansion plan.
Lupin: The U.S. Food and Drug Administration has approved the company’s supplemental new drug application to expand the use of SOLOSEC (secnidazole) in the treatment of bacterial vaginosis and trichomoniasis.
Hinduja Global Solutions: The Company has approved acquisition NXTDIGITAL, a related party of the company. It approved share entitlement ratio of 20:63.
Adani Ports & SEZ: The Company has received NCLT approval for composite scheme of arrangement between Brahmi Tracks Management Services and Adani Ports and Special Economic Zone, and Adani Tracks Management Services and Sarguja Rail Corridor.
Uttam Sugar: The company has redeemed 50,000, 10% non-cumulative redeemable preference shares of Rs 100 each alongwith premium of Rs 109 on each share.
Confidence Futuristic Energetech: The Company has acquired 50% stake in Maruti Koatsu Cylinders based in Halol, Gujarat.
CSB Bank: The bank has appointed Pralay Mondal as the deputy managing Director.
HERO MOTOCORP LAWYERS TO CNBC-TV18″The high court has declined relief to Hero Electric and Hero MotoCorp is free to manufacture and sell electric vehicles under the trademark Hero”, said Senior Advocate Rajiv Nayar.
Hindustan Aeronautics: The IncomeTaxIndia department has allowed the research and development expense at the company to be presented as capital expenditure, resulting in a refund of Rs 710 cr.
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