Market-View-Feature-Image

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

Stocks in Asia fell amid decline in US futures after Fed Chair Jerome Powell and his counterparts in Europe and the UK warned inflation is going to last longer. Equities fell in Japan, Australia and South Korea after the S&P 500 and the Nasdaq 100 ended a volatile trading session nearly flat. At 6:30 am IST, the Singapore-traded SGX Nifty–an early barometer of India’s benchmark Nifty 50–was little changed at 15,765. Oil traded below $110 a barrel, while bitcoin hovered around $20,000.

Economic Calendar:

  • INR: Service PMI on 5th July 2022.
  • INR: Fiscal Deficit Data 30th June 2022.
  • USD: Non-Manufacturing PMI 06th July, 2022.
  • USD: Factory Output 05th July, 2022.

Brokerage Radar:

JEFFERIES ON CROMPTON GREAVES: Buy, TP at Rs 490 Stock has corrected ~25% YTD, despite robust margin resilience Potential to strengthen appliances franchise with Butterfly acquisition Near-term EPS could be impacted due to higher debt and lower margins (FY24-25e cut by 7-9%) Medium-term catalysts seem strong.

MOTILAL OSWAL ON ULTRATECH CEMENT: Buy, TP Rs 6,450 per share (from Rs 7,825 earlier) TP based on 15x FY24E EV/EBITDA Correction in the stock seems to factor in concerns. Current profit estimates factor in lower pricing power, profitability Energy cost decline will be the key trigger for cement stocks
INVESTEC ON EXIDE: Buy, TP Cut To Rs 200 From Rs 230/Sh Nexcharge Is A Key Strategic Investment Have 1st Mover Advantage In New Tech Landscape Of Lithium-ion Batteries Valuation at 10x FY24E EPS (5.5x for core-battery biz) is supportive.

JEFFERIES ON BANDHAN BANK: (Roadshow takeaways) Biz normalised on disbursements & collections Diversification of loan mix & geography are key targets While 1Q seasonally weak, floods in Assam can impact biz for 3-4 weeks & some restructured loans can slip but are well provisioned

International Markets:

U.S & Europe:

Particulars      29th June    Chg Chg(%)
Nasdaq 11,177.89 -3.65 -0.03
Dow 31029.31 82.32 -0.27
FTSE 7,312.32 -11.09 -0.15
CAC 6,031.48 -54.54 -0.9
DAX 13,003.35 -228.47 -1.73
Dow Fut.* 30977.5 -52.30 -0.17

Asian markets:

Particulars    30th June    Chg. Chg(%)
SGX Nifty 15,755.50 -22 -0.14
Nikkei 26,561.05 -243.55 -0.91
Straits Times 3,124.83 -10.04 -0.32
Hang Seng 22,061.89 65 0.3
Shanghai 3,387.82 26.3 0.78

ADR Watch:

Particulars     29th June Chg. Chg.(%)
Dr Reddy 55.84 0.57 1.03
HDFC Bank 55.56 0.4 0.73
ICICI Bank 17.75 0.01 0.06
Infosys 18.61 0.15 0.81
Tata Motor 26.31 0.07 0.27
Wipro 5.34 0.02 0.38

Commodities & Currency:

Particulars Current Price Chg(%)
USD/INR 78.97  0.25
Brent 113.16  0.63
Gold 1820.60  0.17
Silver 20.733  -0.02

FIIs & DII:

Particulars  29th June                           28th  June
FIIs -851.06                         -1244.44                       
DIIs 847.46  1205.63

News Update:

Indian Oil: The state-run refiner has approved expansion of its Digboi Refinery in Assam to 1 mtpa from 0.65 mtpa at an estimated cost of Rs 740.2 crore. The project is expected to be commissioned by October 2025.

Adani Enterprises: The company acquired mining company Alluvial Natural Resources for Rs 2.14 lakh.

Biocon Ltd: The company has agreed to acquire 26% stake in AMPYR Renewable Energy Resources Eleven, a special purpose vehicle formed for the generation and supply of solar power.

LIC: India’s largest insurer has sought time until July 15 to determine its embedded value as on March 31, 2022.

Infosys: The IT services firm has agreed to invest $10 million in a US-based venture capital fund The House Fund III to acquire a minority stake not exceeding 20%.

GR Infraprojects: The infrastructure firm has completed construction of Purvanchal Expressway (Package-VII) from Mojrapur to Bijaura in Uttar Pradesh on EPC basis.

Minda Industries: The company has acquired 5.24% stake in FRIWO AG, Germany for €14.99 million.

Mazagon Dock Shipbuilders: The company has laid the keel for the fourth ship P17A class stealth frigates. In this series, seven frigates in will be constructed, of which four will be made in Mazagon and the rest by Garden Reach Shipbuilders & Engineers.

Sterlite Technologies: The company will acquire 25% stake in Jiangsu Sterlite Tongguang Fiber Co. for Rs 65 crore (RMB 55.67 million). After the acquisition, JSTFCL will become a wholly owned subsidiary of the company.

CSB Bank: Deputy MD Pralay Mondal will stay on as interim CEO and MD for three more months starting July 1, as RBI has approved the term extension.

Karnataka Bank: The lender raised interest rates on its Domestic and NRE Rupee term deposits for amount below Rs 2 crore by 10 basis points to 5.35% for 1-2 years and 5.5% p.a. for more than two years.

MCX: The Securities and Exchange Board of India has allowed foreign portfolio investors to trade in exchange-traded commodity derivatives.

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