Market View 20th January 2024

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

National bourses have announced that on Saturday, the equity and derivatives markets will operate as usual from 9:15 a.m. to 3:30 p.m., with no scheduled disaster recovery movements. U.S. indexes rose on Friday as Wall Street risk-taking appeared to be supported by a decline in Treasury volatility, according to Bloomberg. The surge in technology stocks propelled the S&P 500 index to a new lifetime closing high of 4,839.81 points. As investors evaluated the European Central Bank’s commentary and Japan’s inflation figures, other Asian and European markets finished Friday’s trading session neutral. Japan’s core inflation rate, which deducts the cost of fresh food, dropped to 2.3% from 2.5% in November, while the country’s headline inflation rate decreased to 2.6% from 2.8%.

Economic Calendar:

• USD : Manufacturing PMI (Jan) on 19^th January, 2024
• USD : Services PMI (Jan) on 24^th January, 2024
• INR : FX Reserves, USD on 26^th January, 2024
• INR : Infrastructure Output (YoY) (Dec) on 31^st January, 2024

Brokerage Radar:

MOSL ON PNB HSG: Buy, TP Rs 1025; Set to deliver PAT CAGR of 25% over FY24E-FY26E & RoA/RoE of 2.5%/14% in FY26; Healthy loan growth to return in Retail while Corporate will be an enabler; Improvement in yields & lower CoF to boost NIM Trades @1.1x FY26E P/BV

CITI ON HFCs: HFC regulations harmonized with NBFC framework; LICHF & Can Fin has less than 2% of borrowings by ways of public deposits while PNBHF has almost one-third of borrowings through deposits

CLSA ON TATA COMM: O-P, TP Rs 2045; Data rev up 29%; Kaleyra is Ebitda +ve in 1st qtr. Revenue in line & Ebitda above est. High growth in digital portfolio services Comfortable gearing and Kaleyra added debt; Play on enterprise data growth

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DIIs:

News Update:

Tata Steel: The company will commence statutory consultation as part of its plan to transform and restructure its U.K. business.

HFCL: The company received a purchase order worth of Rs 623 crore from a telecom service provider for the supply of 5G telecom networking equipment.

Zee Entertainment: The company issued a clarification on media reports of Sony’s board to take a call on a $10 bn merger with Zee Entertainment on Friday. It said that it is not aware of any board meeting held or proposed to be held by Sony India and added that the company is committed to the merger with Sony.

KPI Green Energy: The company’s unit received an order for a 5.60 MW solar project from a domestic entity.

Hardwyn India: The company’s subsidiary Slim-X plans to generate -revenue of Rs 100 crore in the next two years.

One 97 Communication: The company approved joint development pact with ACE Builders for the development of the IT/ITES complex in Noida and approved the incorporation of one or more subsidiaries in GIFT City.

Shilpa Medicare: The company’s NDA Product PEMRYDI RTU (Pemetrexed Injection) received product-specific code J* from the U.S. Centers for Medicare & Medicaid Services. PEMRYDI RTU is used as a drug in the treatment of non-small cell lung cancer in combination with other chemotherapy agents.

Star Health and Allied Insurance: N. Chittibab resigned from the position of chief innovation officer and key managerial personnel.

Navkar Corp: The company said that there are no negotiations taking place that require disclosure under the SEBI.

Prataap Snacks: The company issued a clarification that it is not in negotiations with Haldiram’s for a stake sale.

Rico Auto Industries: The company unit signed a licensing agreement for the transfer of technology with DRDO.

Fortis Healthcare: The company’s unit Agilus Diagnostics received notice from Delhi’s anti-corruption bureau in the Mohalla Clinics’ case.

Life Insurance Corp: The company announced the new product launch of LIC’s Jeevan Dhara-II.

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.