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

Asian markets are poised for a mixed open on Tuesday as the rally in global equities shows signs of wavering and investors fret over China’s tepid post-pandemic recovery. Futures for Japan suggested a dip at the open following a 1% slump Monday in Europe’s main equity gauge. Contracts for U.S. benchmarks fell about 0.2% as they reopened after Wall Street was closed for a holiday Monday. Futures for Hong Kong and Australia pointed to marginal early gains. Monday’s slump in tech companies in China including Alibaba Group Holding Ltd, Inc. and Baidu Inc. underscore the pressure on the market, particularly for big tech firms. The yen strengthened slightly versus the dollar, after weakening to 142 on Monday as Japan’s loose monetary policy weighs on the currency. Meanwhile, Brent crude was trading around $76 a barrel and West Texas Intermediate was around $71. The yield on the 10-year U.S. bond was trading at 3.76%, whereas Bitcoin was below 27,000-level. At 05:26 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India was down 0.26% at 18,826.

Economic Calendar:

  • USD : Building Permits (May) on 20th June, 2023
  • USD : Initial Jobless Claims on 22nd June, 2023
  • INR : FX Reserves, USD on 23rd June, 2023
  • INR : Foreign Debt (USD) (Q1) on 30th June, 2023

Brokerage Radar:

MS ON INTERGLOBE AVIATION: OW, TP Rs.3,126; Announced another order of 500 A320 family aircraft, which will be delivered over 2030-35. With this order, IndiGo’s pending aircraft orders reach around 1,000 aircraft; Market share & margin trends r two key drivers, both inching up

CITI ON COFORGE: Sell, TP Rs.3,980; Co reiterated their overall cc FY24 revenue guidance of 13% to 16%; Gross margin likely to improve by 50bps in FY24E, while adjusted EBITDA margins will likely be at similar levels as FY23

JPM ON BOB: OW, TP Rs 230; Market share improving; Retail loan growth faster than even prvt bks; Unique model for attracting talent from prvt sector; ROA still have levers on NIM, costs & provisions; Value crystallization in subs added trigger

International Markets

U.S & Europe:

Particulars 16th June Chg. Chg.(%)
Nasdaq 13689.57 -93.25 -0.68
Dow 34299.12 -108.94 -0.32
FTSE 7642.72 14.46 0.19
CAC 7388.65 97.74 1.32
DAX 16357.63 67.51 0.41
Dow Fut.* 34174.00 -51.00 -0.15

Asian markets

Particulars 20th June Chg. Chg.(%)
SGX Nifty 18810.00 -64.50 -0.34
Nikkei 33161.94 -208.48 -0.63
Straits Times 3226.05 -15.12 -0.47
Hang Seng 19655.64 -257.25 -1.29
Shanghai 3245.71 -10.10 -0.31

ADR Watch:

Particulars 16th June  Chg.       Chg.(%)
Dr. Reddy 60.27 0.86 1.45
HDFC Bank 66.45 1.85 2.86
ICICI Bank 22.87 0.00 0.00
Infosys 15.83 0.21 1.34
Wipro 4.67 -0.03 -0.64

Commodities & Currency

Particulars Current Price Chg.(%)
USD/INR 81.97 -0.02
Brent 76.02 -0.09
Gold 1961.15 -0.06
Silver 23.970 -0.21

FIIs & DIIs:

Particulars 19th June 16th June
FIIs                          -1030.90 794.78
DIIs -365.20 681.33

News Update:

InterGlobe Aviation/Air India: IndiGo places a 500-aircraft order with Airbus SE, surpassing the recent historical 470-aircraft order of Air India in March. IndiGo’s now 1,000-strong order book comprises a mix of A320NEO, A321NEO, and A321XLR aircraft.

HDFC: The company has sold a 90% stake in HDFC Credila to a consortium of Baring Private Equity Asia and ChrysCapital for Rs 9,060.4 crore. HDFC Credila will receive additional fresh capital of Rs 2003.61 crore as a part of the proposed transaction. The company will hold less than 10% of Credila after the stake sale.

HDFC AMC: Abrdn Investment Management will exit the company as its promoter through the sale of its 10.2% stake. It will offer 2.17 crore shares in the price range of Rs 1,800–1,892.45 apiece, representing a discount of up to 4.9% on Monday’s closing price.

ITC: The company will acquire a further stake in Mother Sparsh through 857 compulsory convertible preference shares of Rs. 10 each. Its stake in the Mother Sparsh will increase from 22% to 26.50% (on a fully diluted basis).

Timken India: Timken Singapore will offer 6.3 million shares of Timken India at the floor price of Rs 3,000 apiece, representing a discount of up to 14% on Monday’s closing price. The seller has a 90-day lockup.

IIFL Securities: SEBI barred the company from onboarding any new client for two years in respect of its business as a stockbroker. Funds from its credit balance clients’ were used to not only fund trades of its debit balance clients but also to fund its own trades, it said. However, the company plans to appeal before SAT against the SEBI order.

Sun Pharmaceuticals: The company announced Health Canada’s approval of PRWINLEVI (clascoterone cream 1%) for topical treatment of acne in patients 12 years of age and older.

Zydus Lifesciences: The company has received final approval from the United States Food and Drug Administration for Minocycline Hydrochloride Extended-Release Tablets USP, 55 mg, 65 mg, and 115 mg.

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 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,

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

Company-Specific Disclosures

Important disclosures, including price charts, are available and all Elite Wealth Limited covered companies by visiting, or e-mailing 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

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

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:

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;

  1. 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.