Market View 26th September 2023

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

Asia’s stocks fell, but Treasury yields and the dollar increased, showing that investors have not yet totally adjusted their expectations for interest rates. Equity benchmarks for Hong Kong, Australia, and Japan all decreased, and the Kospi Index hit a six-month low as South Korean stocks plummeted. S&P 500 and Nasdaq 100 futures contracts also decreased, thus wiping out Monday gains for the underlying benchmarks. Benchmarks on the Chinese mainland opened unchanged. West Texas Intermediate was trading under the $90 a barrel mark while Brent crude increased to $93.29 a barrel. While Bitcoin was trading above $26,000, the yield on the 10-year US bond was 4.53%. At 7:45 a.m., the GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India, was down 0.35% or 69.50 points trading at 19,657.50.

Economic Calendar:

• USD : New Home Sales (Aug) on 26^th Sep, 2023
• USD : Building Permits on 26^th Sep, 2023
• INR : FX Reserves, USD on 29^th Sep, 2023
• INR : RBI Monetary and Credit Information Review on 29^th Sep, 2023

Brokerage Radar:

JEFFERIES ON EICHER MOTORS: Buy, TP Raised to Rs 4150; Rising competitive concerns have weighed on EIM in 2023, resulting in stk lagging Nifty Auto Index by 24%; Despite fresh competition from Hero-Harley & Bajaj-Triumph bikes, web search trend & channel checks suggest ltd. impact

HSBC ON MARUTI: Buy, TP Raised to Rs 12000; Believe recent hike in reinvestment rate not necessarily -ve for shareholders; In short term, market share has peaked; Medium-term ‘hybridisation’ of more models could push it further; Val premium to NIFTY has shrunk to 33% vs historical 50%

CITI ON COFORGE: Sell, TP Rs 3890; Management meet takeaways; Deal ramp up happening on time – no delay there; Coforge expects FY25 to be better than FY24 as client discussions have picked up

International Markets

 U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DIIs:

News Update:

Reliance Industries: The company has issued a postal ballot notice to seek shareholders’ approval to appoint Isha Ambani, Anant Ambani, and Akash Ambani as non-executive directors. The voting will be held between Sept. 27 and Oct. 26.

Tata Steel: Moody’s raised the steelmaker’s long-term rating to Baa3 from Ba1 and outlook to stable from positive. It said the upgrade reflects expectations of continued strength in the company’s credit profile and considerable deleveraging through gross debt reduction. The rating agency expects Tata Steel to maintain conservative financial policies with well-balanced capital allocation and financial metrics.

Mahindra & Mahindra: Canada’s Ontario will buy a 20% stake in company unit Mahindra Teqo for Rs 35 crore. The stake sale will be completed by Jan. 3, 2024.

Wipro: The company sold a 14.02-acre land parcel and building in Chennai to Casagrand Bizpark for Rs 266.38 crore.

HDFC AMC: The company will invest Rs 25 crore in unit HDFC AMC International to help it meet the net worth requirements prescribed for Registered Fund Management Entity (Retail) under IFSC rules.

Mankind Pharma: Commercial operations commenced at the newly set-up pharmaceutical formulations plant in Udaipur, Rajasthan.

Indian Hotels: The company will invest $11.5 as equity in Dutch subsidiary Ihoco BV to help it repay debt and for other operations.

Fortis Healthcare: The company will acquire a 99.9% stake in Artistery Properties Pvt. for Rs 32 crore.

Welspun Corp: Unit Sintex will set up water tanks and PVC pipe facilities in Telangana with up to a Rs 350 crore investment.

Century Textiles: Unit Birla Estates has successfully launched Phase 1 of Birla Trimaya in Bengaluru’s Devanahalli. The project is expected to have a revenue potential of Rs 3000 crore.

Kalpataru Projects International: The company will raise Rs 150 crore via NCDs through private placement.

GR Infraprojects: The bids for two projects worth Rs 3,613 crore won by the company in February are annulled.

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