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

Asian stocks were steady early Thursday as investors weighed Federal Reserve minutes that flagged the possibility of a debate on scaling back asset purchases. Treasury yields and the dollar held an advance. Benchmarks fluctuated in Japan and Australia, and fell in South Korea. U.S. futures edged down after the S&P 500 fell a third day. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, fell 0.03% to 15,030.0 as of 8:22 a.m.

The minutes indicated some Fed officials may be open “at some point” to discussing adjustments to the pace of massive bond purchases if the U.S. economy keeps progressing rapidly.

The benchmark 10-year Treasury yield was steady after climbing to 1.67%. Commodity prices slid amid mounting concern about inflation and potential curbs on monetary stimulus.

Oil stabilised after slumping to the lowest in three weeks with traders also concerned about growing supply from the U.S. and

Key Data/ Action, Result, and Board meeting to watch

Major economic Data:

  • INR: Deposit Growth YoY MAY on 21st May, 2021
  • INR: Bank Loan Growth YoY MAY on 21st May, 2021
  • USD: Existing Home Sales (Apr) on 21st May, 2021
  • USD: Initial jobless claims on 20th May,2021

International Markets:

U.S & Europe

Particulars    19th May. Chg Chg(%)
Nasdaq 13,299.74 -3.9 -0.03
Dow 33896.04 -162.62 -0.48
FTSE 6,950.20 -84.04 -1.19
CAC 6,262.55 -91.12 -1.43
DAX 15,113.56 -273.02 -1.77
Dow Fut.* 33,788.00 -0.43 -0.13

Asian markets:

Particulars    20th May. Chg Chg(%)
SGX Nifty 15,030.00 -5 -0.03
Nikkei 28,030.46 -13.99 -0.05
Straits Times 3,119.38 15.17 0.49
Hang Seng 28,348.21 -245.6 -0.86
Shanghai 3,491.67 -19.29 -0.55

ADR Watch:

Particulars       19th May. Chg Chg(%)
Dr Reddy 72.2 0.45 0.63
HDFC Bank 73.55 -0.44 -0.59
ICICI Bank 17.24 0.06 0.35
Infosys 18.44 0.18 0.99
Tata Motor 20.85 -1.06 -4.84
Wipro 7.47 0.02 0.27

Commodities & Currency

Particulars Current Price Chg(%)
USD/INR 73.17 0.16
Brent 66.70 0.05
Gold 1875.35 -0.33
Silver 27.848 -0.63

FIIs & DII

Particulars   19th May. 18th May.
FIIs -697.75 618.49
DIIs -852.52 449.52

 

Earnings  to Watch:

HPCL, Brookfield India Real Estate Trust REIT, Bosch, Cosmo Films, Disa India, Electrosteel Castings, EPL, Expleo Solutions, Gujarat Industries Power Co., Havells India, IndInfravit Trust, JK Lakshmi Cement, KNR Constructions, Meghmani Organics, Plastiblends India, Music Broadcast, Relaxo Footwears, The Investment Trust Of India, Torrent Power, Ultramarine & Pigments, Usha Martin, Zee Entertainment.

Results:

JK Tyre & Industries Q4FY21 (QoQ) Revenue up 6% at Rs 2,927.28 crore Vs Rs 2,769.28 crore Net profit down 16% at Rs 189.12 crore Vs Rs 224.09 crore Ebitda down 9% at Rs 454.67 crore Vs Rs 500.39 crore Ebitda margin at 15.5% Vs 18.1% Recommended a dividend of Rs 2 per share for FY21

Endurance Technologies Q4FY21 (QoQ) Revenue up 5% at Rs 2,132.80 crore Vs Rs 2,040.80 crore Net profit down 1% at Rs 187.20 crore Vs Rs 190 crore Ebitda down 6% at Rs 332 crore Vs Rs 352 crore Ebitda margin at 15.6% Vs 17.2% Recommended dividend of Rs 6 per share for FY21

Brokerage Radar:

MORGAN STANLEY ON IOC:

Maintain Overweight at the Target Price of Rs.139.Core earnings Should raise Investor confidence on Earning Delivery.See Integrated Margin to Rise Further.

JEFFERIES ON IOC:

Maintain Hold at the Target Price of Rs.100.Significant EBITDA Beat on higher inventory gains in refining & Mktg.Market share loss in Auto Fuel Marketing Continues unbated.Cut Earnings by 6%/5% for FY22/23 on ongoing lockdown.

JPMORGAN  ON IOC:

Maintain overweight at the Target Price of Rs.147 Reported a large beat driven by inventory gains. See a Sharp improvement in co’s underlying performance Risk-Reward Remains Attracive in our view.

News Update:

Tata Steel: Fitch upgrades rating to BB with a stable outlook.

Sintex Industries: The company’s plant situated at Lunsapur in Gujarat has been damaged due to Cyclone Tauktae. The quantum of loss and estimated impact on the production due to the cyclone is being determined, the company said.

Shree Pushkar Chemicals & Fertilisers: The company’s plant situated at Ratnagiri in Maharashtra has been dmaged due to Cyclone Tauktae, resulting in a temporary suspension of production at Unit I to V.

lndo Rama Synthetics (India): Approved capex plan up to Rs 600 crore in the company and its wholly-owned subsidiary at Butibori in Nagpur towards the addition of balancing equipment, manufacturing of specialty yarns and to install a 700 TPD PET Resin manufacturing facility.

Axis Bank: OFS for non-retail investors gets 4 times the demand as compared to the shares on offer. OFS for retail investors to open today. SUUTI will exercise the oversubscription option to sell another 0.74% stake in the bank.

Source: Moneycontrol, Livemint,, Bloomberg, Investing, Business Standard

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 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, advisory 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 Advisory 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 Advisory or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;
(b) EWL Advisory 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 Advisory 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 Advisory or its associates have not received any compensation from the subject company in the past twelve months;
(b) EWL Advisory or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;
(c) EWL Advisory 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 Advisory 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 Advisory 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 Advisory 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 Advisory
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 Advisory or its proprietor has never served as an officer, director or employee of the subject company;
(5) EWL Advisory has never been engaged in market making activity for the subject company;
(6) EWL Advisory shall provide all other disclosures in research report and public appearance as specified by the Board under any other regulations.