View on market: Stay Cautious, be with quality business:
Asia stocks fell on Tuesday after a jump in Treasury yields as investors priced in the start of Federal Reserve tapering and elevated energy prices. The dollar edged up. MSCI Inc.’s index of Asia Pacific stocks snapped a three-day advance, with Japan and Australia sliding. Hong Kong opened firmer, while China slipped. U.S. futures declined. Earlier, the tech-heavy Nasdaq 100 underperformed. Investors rotated out of growth stocks as the benchmark 10-year U.S. yield briefly topped 1.5% — a level not seen since June. The S&P 500 dipped. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, rose 0.13% to 17,879.00 as of 8:00 a.m. The U.S. two-year yield hit an 18-month high as traders increasingly priced in the prospect of the Fed trimming its $120 billion in monthly asset purchases soon. The 10-year yield pared gains. The dollar edged higher.
Economic Calender:
- INR: Foreign Debt (USD) (Q2) on 30th September, 2021
- INR: Infrastructure Output (YoY) (Aug) on 30th September, 2021
- USD: CB Consumer Confidence (Sept) on 28th September, 2021.
- USD: Pending Home Sales (MoM) (Aug) on 29th September, 2021.
- USD: Crude Oil Inventories on 29th September,2021.
Brokerage Radar:
CLSA ON GODREJ CONS: Maintain outperform at the price of Rs 1039 for the target price of Rs 1050. Indonesian business has managed covid-19 pressure relatively well. It is looking to drive sustainable double-digit growth while maintaining margin
UBS ON ICICI PRU: Maintain buy at the price of Rs 664 for the target price of Rs 800. Mgmt maintains its guidance of doubling FY19 VNB by FY23. Expect margin expansion to continue. Average VNB margin seen at 26.2% & VNB CAGR over FY21- 24 at 25.7%. Expect an APE CAGR of 22.7% over FY21-24.
International Markets:
U.S & Europe
| Particulars | 27th Sept | Chg | Chg(%) |
| Nasdaq | 14,969.97 | -77.73 | -0.52 |
| Dow | 34,869.37 | 71.37 | 0.21 |
| FTSE | 7,063.40 | 11.92 | 0.17 |
| CAC | 6,650.91 | 12.45 | 0.19 |
| DAX | 15,573.88 | 42.13 | 0.27 |
| Dow Fut.* | 34,761.00 | 17.00 | 0.05 |
Asian markets:
| Particulars | 28th Sept | Chg | Chg(%) |
| SGX Nifty | 17,879.00 | 23.50 | 0.13 |
| Nikkei | 30,106.31 | -133.75 | -0.44 |
| Straits Times | 3,097.06 | -3.24 | -0.10 |
| Hang Seng | 24,442.76 | 233.98 | 0.97 |
| Shanghai | 3,584.50 | 1.67 | 0.05 |
ADR Watch:
| Particulars | 27th Sept | Chg | Chg(%) |
| Dr Reddy | 64.66 | -0.21 | -0.32 |
| HDFC Bank | 74.44 | 0.79 | 1.07 |
| ICICI Bank | 19.85 | 0.31 | 1.59 |
| Infosys | 22.90 | -0.78 | -3.29 |
| Tata Motor | 22.81 | 1.01 | 4.63 |
| Wipro | 9.15 | -0.44 | -4.59 |
Commodities & Currency
| Particulars | Current Price | Chg(%) |
| USD/INR | 73.85 | 0.09 |
| Brent | 78.94 | 0.32 |
| Gold | 1753.25 | 0.07 |
| Silver | 22.657 | 0.16 |
FIIs & DII
| Particulars | 27th Sept | 24th Sept |
| FIIs | -594.63 | 442.49 |
| DIIs | 1397.69 | -515.85 |
News Update:
BPCL: Plans invest Rs 1 lakh crore over next 5 years in raising petrochemical production capacity, gas business, clean fuel, and augmenting marketing infrastructure, Chairman Arun Kumar Singh said during a conference. Company is also looking to create a 1,000 MW portfolio of renewable power generation capacity, mostly through acquisitions while also invest in biofuels & hydrogen. The company plans to shut Bina plant for work next year; expects Mumbai plant to restart in first half of October. Divestment is expected by March.
Allcargo Logistics: The company is considering selling a stake in its container shipping firm ECU Worldwide, according to a Bloomberg report. The company is working with an adviser on the sale of the stake. Allcargo is seeking a deal that would value ECU at about $1 billion.
RIL: The company is in talks to buy a stake in Glance InMobi Pte, according to a Bloomberg report. RIL is considering investing about $300 million in the unicorn backed by Alphabet Inc.’s Google.
Paisalo Digital: State Bank of India has signed a Service Level Agreement with the company, National Corporate Business Correspondent of the Bank, for promoting financial inclusion by providing banking services through kiosks.
RBL Bank: Reserve Bank of India imposes a penalty of Rs 2 crore on RBL Bank for breaching deposit and board composition norms.
Raymond: Approves consolidation of the tools & hardware and auto components businesses into unit JK Files and real estate business wholly-owned unit
Whirlpool of India | The company has entered into a share purchase agreement with Elica S.p.A to acquire an additional stake in Elica PB India. Whirlpool currently owns a 49 percent stake in the Elica PB India and willacquire an additional around 38 percent equity interest for $57 million to bring its total equity ownership to around 87 percent.
Gujarat State Fertilizers and Chemicals: The initiation of anti-dumping duty investigation concerning imports of ‘Caprolactum’ originating in or exported from the EU, Korea RP, Russia and Thailand is seen benefitting the company.
Maruti Suzuki India: The company has told its component suppliers to be ready for the production of 160,000-180,000 cars and SUVs in October, as automaker is making arrangements to secure supply of chipsets through multiple channels, as per reports.
AGMs: NTPC (10:30 a.m.); Bharat Electronics (10 a.m.); Petronet LNG (3 p.m.); Steel Authority of India (10:30 a.m.); Indraprastha Gas (11:30 a.m.); Mahanagar Gas (11 a.m.); Gujarat State Petronet (3 p.m.); Gujarat Gas (12 p.m.); Mastek (5 p.m.); PVR (11 a.m.); Future Retail (11 a.m.); Vardhman Textiles (3 p.m.); Zensar Technologies (3 p.m.).
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