Market-View-Feature-Image

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

Asian stocks opened steady Tuesday as traders evaluated a record-high close for U.S. equities and awaited key central bank decisions amid concerns about elevated inflation. Equities dipped in Japan and Australia, and rose in South Korea. U.S. contracts fluctuated after optimism over corporate earnings saw the S&P 500 hit a new peak and the Dow Jones Industrial Average touch 36,000 for the first tt time. Electric-vehicle giant Tesla Inc. extended a rally. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, rose 0.20% to 18,011.50, as of 8:10 a.m.

Economic Calender:

  • INR: Trade Balance (Oct) on 2nd November, 2021.
  • INR: Nikkei Service PMI (Oct) on 3rd November, 2021.
  • USD: Fed Interest Rate Decision on 03rd November, 2021.
  • USD: Initial Jobless Claims on 04th November, 2021.

Earnings: Bharti Airtel, Sun Pharmaceutical Industries, Dabur India, Godrej Properties, Hindustan Petroleum Corporation, Jindal Steel & Power, Procter & Gamble Hygiene & Health Care, PNB Housing Finance, Alkyl Amines Chemicals, Bank Of India, Union Bank Of India, Easy Trip Planners, BASF India, Advanced Enzyme Technologies, Trent, Bajaj Healthcare, eClerx Services, Bombay Dyeing & Mfg.Co., Caplin Point Laboratories, Century Plyboards (I), Cholamandalam Financial Holdings, Elantas Beck India, GE Power India, Gillette India, Gulf Oil Lubricants India, Indoco Remedies, Jyothy Labs, LA Opala RG, Laxmi Organic Industries, Minda Corporation, MTAR Technologies, NCL Industries, NOCIL, Prince Pipes and Fittings, Radico Khaitan, R Systems International, Stove Kraft, Thangamayil Jewellery.

Results:

Tata Motors Q2FY22 (Consolidated, QoQ): Revenue down 8% at Rs 61,379 crore Vs Rs 66,406 crore. Net loss at Rs 4,442 crore Vs Rs 3,509.91 crore. Ebitda at Rs 4,117 crore Vs Rs 5,242 crore. Margins at 7% Vs 8%.

The Phoenix Mills Q2FY22 (Consolidated, YoY): Revenue up 73% at Rs 371.30 crore Vs Rs 214.91 crore Net profit of Rs 63.15 crore Vs Net loss of Rs 39.98 crore Ebitda up 1.03 times at Rs 186.25 crore Vs Rs 91.67 crore Margin at 50.2% Vs 42.7%.

Bayer Cropscience Q2FY22 (Consolidated, YoY): Revenue down 1% at Rs 1,365.10 crore Vs Rs 1,381.60 crore Net profit down 31% at Rs 154.10 crore Vs Rs 224.60 crore Ebitda down 25% at Rs 221.80 crore Vs Rs 297.7 crore Margin at 16.2% Vs 21.5%.

Brokerage Radar:

CLSA ON HDFC: Maintain outperform at the price of Rs 2888 for the target price of Rs 3250. Strong growth but best of margin behind us. Expect 15-16% NII/PPoP growth over FY21-24 vs 8% over FY15-20. See its valuation at close to fair levels & hence downgrade.

JEFFERIES ON TATA MOTORS: Maintain buy at the price of Rs 486 for the target price of Rs 625. Q2 EBITDA fell 23% QoQ, pulled down by chip shortages at JLR, but in-line with estimate. JLR believes worst of chip shortages are behind & volumes should gradually improve. It is seeing good demand, has strong order book. Next-gen RR/RR-sport launches should boost JLR volumes. Demand recovery, mkt shr gains & better margin should continue to help India biz.

International Markets:

U.S & Europe

Particulars 1st Nov Chg Chg(%)
Nasdaq 15,595.92 97.53 0.63
Dow 35,913.84 94.28 0.26
FTSE 7,288.62 51.05 0.71
CAC 6,893.29 62.95 0.92
DAX 15,806.29 117.52 0.75
Dow Fut.* 35,741.00 -59.00 -0.16

Asian markets:

Particulars 2nd Nov Chg Chg(%)
SGX Nifty 18,011.50 14.50 0.08
Nikkei 29,580.49 -66.59 -0.22
Straits Times 3,219.66 0.61 0.02
Hang Seng 25,508.83 354.51 1.41
Shanghai 3,547.45 2.97 0.08

ADR Watch:

Particulars 1stNov Chg Chg(%)
Dr Reddy 63.56 2.12 3.45
HDFC Bank 72.85 0.94 1.31
ICICI Bank 21.28 0.13 0.61
Infosys 22.47 0.19 0.85
Tata Motor 33.53 1.95 6.17
Wipro 8.97 0.01 0.11

Commodities & Currency

Particulars Current Price Chg(%)
USD/INR 74.87 -0.01
Brent 85.00 0.34
Gold 1792.20 -0.20
Silver 24.067 -0.02

FIIs & DII

Particulars 1st Nov 29th Oct
FIIs -202.13 -5142.63
DIIs 116.01 4342.51

News Update:

Centrum Capital: Centrum Financial Services and Centrum Microcredit, WOS of the company have effected transfer of their respective businesses to Unity Small Finance Bank, a step-down subsidiary of the company. Unity Bank has commenced operations with effect from November 1. Centrum Financial Services-Bharatpe consortium has set up Unity Bank as part of the rescue process for Punjab & Maharashtra Cooperative Bank.

Adani Transmission: Company has signed share purchase agreement with REC Power Development and Consultancy for acquisition of its entire stake in MP Power Transmission Package-II.

Grasim Industries: The company has commissioned a new line of 300 ton per day capacity of Viscose Staple Fibre and has commenced the commercial production from November 1. With this the total VSF capacity has increased to 7,00,500 ton per annum. Further, it has commissioned first phase of expansion project at Rehla, Jharkhand with a capacity of 170 TPD Caustic Soda Lye.

Yes Bank: The bank has completed the transaction for sale of stake in YES Asset Management (India) and YES Trustee to GPL Finance and Investments.

Motherson Sumi Systems: Board to meet on November 8 to consider a proposal for raising of funds through the issuance of bonds/debentures/non-convertible debt securities.

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