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

Asian stocks opened largely steady Wednesday after softer economic data weighed on U.S. equities. Treasuries maintained a rally as Federal Reserve officials again predicted transitory price pressures. Shares fluctuated in Japan, Australia and South Korea. The spotlight will be on China, where stocks Tuesday surged the most since July. U.S. equity contracts rose and Nasdaq 100 futures outperformed after the S&P 500 slipped and the tech-heavy gauge made a small gain. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, fell 0.15% to 15,221 as of 8:16 a.m.

A dollar gauge touched the lowest level since early January. Oil was steady, gold erased 2021 losses and Bitcoin held below $40,000 in the wake of last week’s crypto rout

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

Major economic Data:

  • INR: Foreign Exchange Reserves on 28th May, 2021
  • INR: Infrastructure Output on 31st May, 2021
  • INR: GDP Growth Rate YoY Q1on 31st May, 2021

International Markets:

U.S & Europe

Particulars    25th May. Chg Chg(%)
Nasdaq 13,657.17 -4 -0.03
Dow 34312.46 -81.52 -0.24
FTSE 7,029.79 -21.8 -0.31
CAC 6,390.27 -18.22 -0.28
DAX 15,465.09 27.58 0.18
Dow Fut.* 34,356.50 85.5 0.25

Asian markets:

Particulars    26th May. Chg Chg(%)
SGX Nifty 15,221.00 -28.5 -0.19
Nikkei 28,604.47 50.49 0.18
Straits Times 3,146.09 22.48 0.72
Hang Seng 29,102.89 192.03 0.66
Shanghai 3,597.50 16.16 0.45

ADR Watch:

Particulars       25th May. Chg Chg(%)
Dr Reddy 72.75 0.16 0.22
HDFC Bank 73.01 -2.51 -3.32
ICICI Bank 17.67 -0.11 -0.62
Infosys 18.73 0.06 0.32
Tata Motor 21.37 -0.15 -0.7
Wipro 7.61 -0.03 -0.39

 

Commodities & Currency

Particulars Current Price Chg(%)
USD/INR        72.77 -0.26
Brent 68.45 -0.06
Gold 1905.85 0.41
Silver 28.825 0.82

FIIs & DII

Particulars   25th May.     24th May.
FIIs 959.77        585.36
DIIs    -563.59    -707.69

Earnings to Watch:

Nifty Earning: BPCL

Non-Nifty Earnings: Allsec Technologies, Arvind, Berger Paints India, Burger King India, LT Foods, Capital India Finance, Cummins India, Datamatics Global Services, FDC, Gabriel India, Hindustan Composites, Hindustan Foods, J Kumar Infraprojects, Jtekt India, KIOCL, Kewal Kiran Clothing, Manappuram Finance, Mold-Tek Packaging, MPS, Pfizer, Pricol, Sharda Cropchem, Somany Home Innovation, The Investment Trust Of India, Thirumalai Chemicals, Uniphos Enterprises, Vardhman Holdings, Astra Microwave Products,

Results:

Bayer Cropscience Q4FY21 (QoQ) Revenue down 20% at Rs 733.70 crore Vs Rs 918.20 crore Net profit of Rs 61.90 crore Vs Net loss of Rs 45.10 crore Ebitda down 22% at Rs 82.70 crore Vs Rs 106 crore Ebitda margin at 11.3% Vs 11.5%

Godawari Power & Ispat Q4FY21 (Consolidated, QoQ) Revenue up 12% at Rs 1,262.25 crore Vs Rs 1,131.65 crore Net profit at Rs 326.95 crore Vs Rs 160.83 crore Ebitda up 41% at Rs 489.63 crore Vs Rs 347.02 crore Ebitda margin at 38.8% Vs 30.7% Recommended payment of final dividend of Rs 13.50 per share

Brokerage Radar:

Credit Suisse on Steel:

The brokerage said that the expectation of elevated domestic iron ore prices would hurt spreads. It downgraded Tata Steel and JSPL to ‘neutral’ from ‘outperform’ and JSW Steel to ‘underperform’ from ‘neutral’

CLSA Equity Strategy:

The brokerage added Axis Bank to India’s focus portfolio, replacing HCL Tech. It has reduced weight in defensives after strong outperformance in the last 2 months.

Credit Suisse Equity Strategy:

The brokerage cut metals to underweight from overweight, moves to cement. It has reversed the overweight on metals as P/B relative to the market is near 10-year highs.

CLSA on Emami:

The brokerage maintains an ‘outperform’ call on the stock with a target at Rs 520 per share. It cut the FY22 EPS estimates for the firm by 5 percent but kept it unchanged for FY23

News Update:

Zuari Agro Chemicals: Incurred a loss of Rs 2.5 crore due to the damages caused by Cyclone Tauktae to its fertilizer plant in Goa.

HPCL: Shut one of the crude units at Vizag refinery on Tuesday, after an overheated line caught fire, said Chairman Mukesh Kumar Surana. The fire broke out at 3 pm and has been extinguished, the company said. No casualties were reported.

Hinduja Global Solutions: To hire up to 250 remote customer service representatives in Montreal, Quebec to support its ongoing growth of its Canadian entity.
HDFC Ltd | The mortgage lender will raise up to Rs 7,000 crore by issuing bonds on a private placement basis. The base issue size for the secured redeemable non-convertible debentures (NCDs) is Rs 5,000 crore with the option to retain an oversubscription of up to Rs 2,000 crore.

Motherson Sumi Systems | The Competition Commission of India (CCI) gave approval to a proposal pertaining to the intra-group reorganisation of the Motherson Group under the green channel route.

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.