Market-View-Feature-Image

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

Stocks rose in Asia on Tuesday with US equity futures pointing higher. Japan, Australia and Hong Kong equities gained, hinting at improvement in sentiment. US markets were shut for holiday on Monday. As of 7:10 am, the Singapore-traded SGX Nifty–an early barometer of India’s benchmark Nifty 50–was 0.13% higher at 15,382.50 points. Nymex crude hovered around $110 per barrel. Elsewhere, bitcoin held above $20,000 after a turbulent period of cryptocurrencies.

Economic Calendar:

  • INR: RBI MPC Minutes on 22nd June 2022.
  • INR: Fiscal Deficit Data 30th June 2022.
  • USD: Existing Home sale 21st June, 2022.
  • USD: Chicago Fed National Activity 21st June, 2022.

Brokerage Radar:

CLSA ON FINANCIALS: Continue to prefer strong liability franchises & do not expect a tougher macro environment to change credit cost trajectory yet ICICI & SBI remain top picks Like MMFS among NBFCs & see value in life insurers (SBI Life top pick).

JEFFERIES ON BANDHAN BANK: Buy, TP Rs 430 Floods in Assam will have near-term impact on biz & collections Assam forms c.6% of total loans & 9% of EEB loans; 500bps higher credit costs in Assam would impact FY23 PBT by 5% Could impact Bk’s MFI biz for next 3-4 weeks.

CITI ON TATA STEEL: Buy, TP cut to Rs 1085 from Rs 1800 Take a relook at earnings estimates for TSL & cut EBITDA by 32% /34% on lower realizations following weakness in China export prices However think now maybe time to bottom fish, TSL’s P/B val at 0.8x isn’t too far from 1SD below mean(0.7x) Reckon stock may not hit 2020 trough of 0.5x given expectations of a China stimulus & a significantly strong b/s (perhaps strongest in last 15 yrs).

MOTILAL OSWAL ON TATA STEEL: Neutral, TP Rs 965 Will not benefit from inexpensive ore, Russian coal India EBITDA to contract significantly in 1HFY23 Cut FY23E consol EBITDA by 22%, driven by 34% reduction in standalone EBITDA, partially offset by 4% increase in TSE EBITDA

International Markets:

U.S & Europe:

Particulars      20th June    Chg Chg(%)
Nasdaq 10,798.35 152.25 1.43
Dow 29888.78 -38.29 -0.13
FTSE 7,121.81  105.56 1.5
CAC 5,920.09 37.44 0.64
DAX 13,265.60 139.34 1.06
Dow Fut.* 30260.00  97.5  0.32

Asian markets:

Particulars    21st June    Chg. Chg(%)
SGX Nifty 15,415.50 53.5 0.35
Nikkei 26,225.15 453.93 1.76
Straits Times 3,119.10 22.7 0.73
Hang Seng 21,369.11 205.2 0.97
Shanghai 3,318.24 2.81 0.08

ADR Watch:

Particulars     20th June Chg. Chg.(%)
Dr Reddy 55.84 0.57 1.03
HDFC Bank 53.48 0 0
ICICI Bank 17.41 0 0
Infosys 17.76 0 0
Tata Motor 25.17 0 0
Wipro 5.21 0 0

Commodities & Currency:

Particulars Current Price Chg(%)
USD/INR 77.98  -0.12
Brent 115.40  1.20
Gold 1842.35  0.11
Silver 21.652 0.30

FIIs & DII:

Particulars        20th June                                  17th June
FIIs -1217.12                         -7818.61                       
DIIs   2093.39  6086.92

News Update

ONGC: The term of CMD Alka Mittal has been extended by two months with effect from July 1 till August 31.

Bharat Forge: The company will transfer its stake in joint venture Refu Drive GmbH to subsidiary Kalyani Powertrain to consolidate its electric vehicle business.

Reliance Industries: SEBI has imposed a total penatly of Rs 30 lakh on RIL and two persons for not making a prompt clarification to the stock exchanges in a matter relating to the Jio-Facebook deal.

KEC International: The company has won new orders worth Rs 1,092 crore across its various businesses.

National Fertilizers: The company has appointed Hira Nand as its director (finance) with effect from June 17.

Engineers India: The company has appointed Sanjay Jindal as the chief financial officer in place of CMD Vartika Shukla with immediate effect for a period of five years.

Eureka Forbes: MD & CEO Marzin R. Shroff has resigned.

Escorts Kubota: Ajay Mandhar, chief executive officer of Escorts Kubota’s agri-machinery business, has resigned. President Shenu Agarwal will take additional charge until a replacement is found.

Suven Lifesciences: The firm will consider a rights issue on June 24.

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