Market-View-Feature-Image

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

Asian stocks were steady Wednesday as traders weighed the latest U.S. earnings reports amid lingering concerns about growth risks from elevated inflation and China’s indebted property sector Equities fluctuated in Japan, South Korea and Australia. The S&P 500 eked out a record high, with United Parcel Service Inc. and General Electric Co. up on strong results. U.S. contracts ticked higher. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, shed 0.15% to 18,305.50, as of 8:00 a.m.

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

Major economic Data:

  • INR: Federal Fiscal Deficit (Sept) on 29thOctober, 2021.
  • INR: Infrastructure Output (YoY) (Sept) on 29thOctober, 2021.
  • USD: Core Durables Goods Orders (MoM) (Sept) on 27th October, 2021.

Earnings to Watch:

Adani Ports And Sez, Larsen & Toubro, Maruti Suzuki India, Bajaj Auto, Titan Company, ITC, IndusInd Bank, Adani Enterprises, SBI Life Insurance Company, Indian Overseas Bank, Punjab National Bank, Lupin, United Breweries, United Spirits, Poonawalla Fincorp, Aegis Logistics, Balaji Amines, Cummins India, Happiest Minds Technologies, Tata Chemicals, Torrent Power, Dalmia Bharat, Deepak Nitrite, , Shriram City Union Finance, Aarti Drugs, Apollo Tricoat Tubes, Arvind, Asahi India Glass, Astec Lifesciences, Greenpanel Industries, KEC International, KEI Industries, Welspun India, HIL, IIFL Finance, IIFL Wealth Management, Oracle Financial Services Software, Lakshmi Machine Works, India Grid Trust, KPR Mill, JK Paper, Mahindra Logistics, MAS Financial Services, MMTC, Phillips Carbon Black, Praj Industries, PSP Projects, Raymond, Reliance Power, Sagar Cements, SIS, SKF India, Sona BLW Precision Forgings, Tube Investments of India, TTK Prestige, Vaibhav Global, Vardhman Textiles

Results:

Axis Bank Q2FY22: Net profit up 86% at Rs 3,133.32 crore Vs Rs 1,683 crore. (YoY) (Bloomberg estimate: Rs 2,649.6 crore) NII up 8% at Rs 7,900 crore Vs Rs 7,326 crore (YoY) Gross NPA ratio at 3.53% Vs 3.85% (QoQ) Net NPA ratio at 1.08% Vs 1.20% (QoQ)

Cipla Q2FY22 (Consolidated, QoQ): Revenue up 0.28% at Rs 5,519.8 crore Vs Rs 5,504.4 crore (BBG estimate: Rs 5,245.5 crore) Net profit down 0.47% at Rs 711.4 crore Vs Rs 714.7 crore (BBG estimate: Rs 701.2 crore profit) Ebitda down 9% at Rs 1,226.2 crore Vs Rs 1,345.9 crore (BBG estimate: Rs 1.187.7 crore) Margins at 22.2% Vs 24.5% (BBG estimate: 22.6%) Not to proceed ahead with the scheme of arrangement. To examine transfer of India based U.S. business to Cipla BioTec and its consumer business undertaking to Cipla Health by way of a more efficient option.

Bajaj Finance Q2FY22 (Consolidated): Net profit up 53.4% at Rs 1,481 crore Vs Rs 965 crore (YoY) NII up 28% at Rs 5,335 crore Vs Rs 4,162 crore (YoY) GNPA at 2.45% Vs 2.96% (QoQ) NNPA at 1.10% Vs 1.46% (QoQ)

Ambuja Cements Q3CY21 (Consolidated, YoY): Revenue up 8% at Rs 6,647.13 crore Vs Rs 6,169.47 crore Net profit up 11% at Rs 890.67 crore Vs Rs 803.50 crore Ebitda up 5% at Rs 1,416.34 crore Vs Rs 1,349.62 crore Margin at 21.3% Vs 21.9%

International Markets:

U.S & Europe

Particulars 26th Oct. Chg Chg(%)
Nasdaq 15,235.72 9.01 0.06
Dow 35756.88 15.73 0.44
FTSE 7,277.62 54.8 0.76
CAC 6,766.51 53.64 0.8
DAX 15,757.06 157.83 1.01
Dow Fut.* 35,630.00 -15 -0.04

Asian markets:

Particulars 27th Oct. Chg Chg(%)
SGX Nifty 18,287.50 -46 -0.25
Nikkei 28946.61 -159.4 -0.55
Straits Times 3,217.15 12.58 0.39
Hang Seng 25,657.69 -380.58 -1.46
Shanghai 3,572.96 -24.68 -0.69

ADR Watch:

Particulars 26th Oct. Chg Chg(%)
Dr Reddy 61.6 -0.13 -0.21
HDFC Bank 75.7 -0.98 -1.28
ICICI Bank 21.7 -0.17 -0.78
Infosys 22.69 -0.24 -1.05
Tata Motor 33.17 0.97 3.01
Wipro 9.19 -0.09 -0.97

Commodities & Currency

Particulars Current Price Chg(%)
USD/INR 74.96 -0.16
Brent 85.17 -0.55
Gold 1,790.15 -0.18
Silver 24.07 -0.06

FIIs & DII

Particulars 26th Oct. 25th Oct.
FIIs -2,368.66 -2,459.10
DIIs 1,385.41 2,390.23

Brokerage Radar:

CLSA on Axis Bank: Maintain Buy with Target Price of Rs. 1080, Strong Asset Quality but weak PPoP Cut PPoP Estimates by 2-4%, but Profit Estimates remain unchanged Have legged Peers on Loan & PPoP growth

Morgan Stanley on Bajaj Finance: Maintain Buy with Target Price of Rs. 9060, A Earnings momentum is set up to pick up significantly Decibels around new initiatives will also rise from here valuation is not cheap but stocks seldom pause against such a backdrop

News Update:

IDFC: IDFC Financial Holding Company writes to IDFC First Bank informing it on value unlocking plans. IDFC Financial Holding Company holds 36.50% equity in IDFC First Bank. Five-year lock-in period for IDFC Ltd as promoter of the bank ended on September 30, 2020. Post this, RBI has clarified that IDFC Ltd can exit as the promoter of IDFC First Bank.

Union Bank of India: The bank has cut home loan rate to 6.4% for festive season. New rate to be effective from October 27. New rate applicable for new home purchases as well as balance transfers from other lenders. Home loan rate cut as the bank is seeing rising demand from customers. Union Bank of India home loan rate is now the most competitive in the industry

Quick Heal Technologies: Appointed Navin Sharma as Chief Financial Officer of the company.

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

 

FILING COMPLAINTS ON SCORES - EASY & QUICK

a. Register on SCORES portal

b. Mandatory details for filing complaints on SCORES:
i. Name, PAN, Address, Mobile Number, E-mail ID

c. Benefits:
i. Effective communication
ii. Speedy redressal of the grievances

SEBI : https://www.scores.gov.in/scores/complaintRegister.html