Market View 28th October 2022

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

U.S. stocks seesawed in a volatile session as traders tried to balance conflicting earnings message with mixed economic data. Bond yields saw a downtrend as returns on 10-year Treasuries declined 6 basis points to 3.95%.The S&P 500 changed little till mid of the day, while the tech-heavy Nasdaq 100 fell 1.3%. Oil jumped 1.4% as economic data showed a rebound in the U.S., easing recession fears and bolstering demand outlook. Gold fell 0.5%, while Bitcoin dipped 0.8% to trade around $20,500-level. India benchmarks Sensex and Nifty ended in green after a volatile day, aided by broad-based gains led by metal, realty, energy, and power stocks. Rupee appreciated 61 paise against the U.S. dollar to hit 82.12, before trimming gains from the intraday trade.

Economic Calendar:

• USD : Pending Home Sales (MoM) (Sep) on 28th October, 2022
• USD : ISM Manufacturing PMI (Oct) on 01st November, 2022
• INR : FX Reserves, USD on 28th October, 2022
• INR : Federal Fiscal Deficit (Sep) on 31st October, 2022

Q2FY23 Result Today: Dr Reddy’s Laboratories, JSW Energy, Vedanta, Tata Power Company, Bandhan Bank, Blue Dart Express, CCL Products (India), Dwarikesh Sugar Industries, Eveready Industries India, NIIT, Satin Creditcare Network, Sona BLW Precision Forgings, Sumitomo Chemical India, TTK Healthcare

Brokerage Radar:

MS ON SBI CARDS: OW, TP Rs 1100; PAT miss driven by higher costs (due to higher gross card acquisition) & higher Stage 1 provisions on higher transactor balances; Absolute growth in receivables healthy while revolver mix & higher funding costs could weigh on NIM

UBS ON INDUS TOWER: Neutral, TP Rs 220; Q2: In line at operating level; Co made a provision of Rs17.1bn during qtr, towards receivables from VIL; Expect co to provide more colour on status of payments /receivables from VIL, & on overall demand outlook for FY23/24

MS ON BHEL: OW, TP Rs 124; 2Q in line; Co signed several MoUs at defense expo, launched Indigenously Developed Li-Ion LFP Cell, & received an LOI worth Rs81bn from Triton for Li-ion battery packs; First batch will be delivered in Nov-22 & executed over 24 mths

International Markets:

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Vedanta: The company, along with other parties to the production sharing contract, got government approval for 10-year extension till May 14, 2030, for Rajasthan oil block.

IDBI Bank: The finance ministry extended the deadline for potential bidders to submit queries on IDBI Bank privatisation by 13 days till Nov. 10.

Indus Towers: The board of the company has approved raising Rs 2,000 crore via non-convertible debentures in one or more tranches on private placement basis.

Spandana Sphoorty Financial: The board of the company will convene on Nov. 1, 2022, to consider and approve raising of funds via NCDs on a private placement basis.

FSN E-Commerce Ventures: The company will appoint Rajesh Uppalapati as Chief Technology Officer, with effect from Nov. 01, 2022.

EKI Energy Services: The company has executed a joint venture agreement to incorporate a public limited company to drive focused educational initiatives and establish climate finance marketplace to mobilise funds from global markets for sustainable climate projects across the world.

Infibeam Avenues: The company received in-principle authorisation from the Reserve Bank of India to operate as a payment aggregator.

Dhanuka Agritech: The board of directors will meet on Nov. 1 to consider the proposal for buyback of fully paid-up equity shares through tender offer route.

Kaveri Seed Company: The board approved buyback of equity shares at a price of Rs 700 apiece, aggregating to Rs 125 crore.

PC Jeweller: The company defaulted on loans worth Rs 3,466.28 crore.

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)
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