View on market: Stay Cautious, be with quality business:
Asian stocks rose early Tuesday after U.S. shares rebounded amid easing concerns among equity investors about the impact of the omicron coronavirus strain on global reopening. Shares climbed in Japan, Australia and South Korea. U.S. futures pushed higher after the S&P 500 wiped out its November losses and the technology-heavy Nasdaq 100 more than recouped Friday’s rout. The Singapore-traded SGX Nifty shed 0.11% at 17,071 as of 8:05 a.m.
Economic Calendar:
- INR: Infrastructure Output (YoY) (Oct) on 30th November, 2021.
- INR: GDP Quarterly (YoY) (Q2) on 30th November, 2021.
- USD: CB Consumer Confidence (Nov) on 30thNovember, 2021.
- USD: ADP Nonfarm Employment Change (Nov) on 1st December, 2021.
Brokerage Radar:
GS ON SBI: Maintain buy at the price of Rs 465 for the target price of Rs 739. Macro Outlook Upbeat; On Track To Deliver RoA Improvements. High Frequency Macro Indicators Suggest Underlying Improvement. Uncertainty Surrounding The New Variant Of The COVID Virus Is Under Watch. Retail To Be Growth Driver With 14-15% Loan Growth Expectation. Recovery Continues With Bank Seeing Sustained Colln Activity In Past 2 Mths. YONO Remains A Top Focus For The Bank.
CS ON BHARTI AIRTEL: Maintain outperform at the price of Rs 739 for the target price of Rs 900. After Prepaid Tariff Hike, Expect Co To Realign Postpaid Tariffs As Well. Raise ARPU Estimates For Q4FY22 By 14% & FY23/FY24 By 9.5%/5.6%. Overall EBITDA Estimate Rises By 7.6% For H2FY22 & 5.9%/3% For FY23/FY24.
CS ON OIL & GAS: Current Trend Of Lower Crude But Still High Spot Gas Price Is Negative. City Gas Companies Will Be Impacted From Lower CNG Conversions (IGL, MGL). Guj Gas Will Be Impacted From Lower Industrial Margin. GAIL’S Profit Reduces On Petrochemical & LPG Due To Lower Crude Price. In City Gas, Guj Gas’ Margin Would Be The Most Impacted. Spot Gas Price May Remain High In The Near-term & Impact Margin. Low Demand For Refining Pdts, Jet Fuel Should Impact RIL & OMCs’ Refining Margins. Telecom Tariff Increase More Than Offset Lower Refining For RIL.
International Markets:
U.S & Europe
| Particulars | 29thNov | Chg | Chg(%) |
| Nasdaq | 15,782.83 | 291.17 | 1.88 |
| Dow | 35,135.94 | 236.60 | 0.68 |
| FTSE | 7,109.95 | 65.92 | 0.94 |
| CAC | 6,776.25 | 36.52 | 0.54 |
| DAX | 15,280.86 | 23.82 | 0.16 |
| Dow Fut.* | 35,160.00 | 83.00 | 24.00 |
Asian markets:
| Particulars | 30thNov | Chg | Chg(%) |
| SGX Nifty | 17,071.00 | -19.00 | -0.11 |
| Nikkei | 28,498.91 | 214.99 | 0.76 |
| Straits Times | 3,121.62 | 1.04 | 0.03 |
| Hang Seng | 23,659.41 | -192.83 | -0.81 |
| Shanghai | 3,572.89 | 10.19 | 0.29 |
ADR Watch:
| Particulars | 29th Nov | Chg | Chg(%) |
| Dr Reddy | 60.74 | -1.60 | -2.57 |
| HDFC Bank | 68.42 | -3.56 | -4.95 |
| ICICI Bank | 19.30 | -1.17 | -5.72 |
| Infosys | 22.77 | -0.82 | -3.48 |
| Tata Motor | 32.24 | -1.21 | -3.62 |
| Wipro | 8.72 | -0.27 | -3.00 |
Commodities & Currency
| Particulars | Current Price | Chg(%) |
| USD/INR | 75.10 | 0.23 |
| Brent | 73.85 | 0.98 |
| Gold | 1791.20 | 0.34 |
| Silver | 23.265 | 1.81 |
FIIs & DII
| Particulars | 29thNov | 26th Nov |
| FIIs | -3332.21 | -5785.83 |
| DIIs | 4611.41 | 2294.11 |
News Update:
Union Bank of India: RBI has imposed a penalty of Rs 1 crore on the bank. Penalty imposed due to non-compliance with RBI’s directions on fraud classification and sale of stressed assets. The bank failed to classify an account as a red flag account, did not disclose ageing of security receipts.
NTPC: The wholly-owned subsidiary of the company, NTPC Renewable Energy, has signed power purchase agreements for 325 MW solar projects.
Tatva Chintan Pharma Chem: As a part of future need, the company has acquired an industrial land admeasuring 50,399.16 square metre at Dahej-III GIDC Estate, Gujarat.
Mastek: Mastek U.K. has been awarded a healthcare contract of £45 million by National Health Services Digital.
Axis Bank: Fitch affirmed the long-term issuer default rating of Axis Bank at ‘BB+’ with a ‘negative’ outlook.
ICICI Bank: Fitch affirmed rating on ICICI Bank at ‘BB+’ and outlook ‘negative’.
Ratnamani Metals & Tubes: The company has received new domestic orders aggregating to Rs 297.87 crore from the oil and gas sector. These orders are to be executed between February 2022 and January 2023.
Asian Paints: The company will invest ₹960 crore to expand the manufacturing capacity of its facility situated at Ankleshwar in Gujarat. The company has signed a memorandum of understanding with the Government of Gujarat commencing the proposed expansion of manufacturing capacity of paint from 1.3 lakh KL to 2.5 lakh KL and resins and emulsions from 32,000 MT to 85,000 MT, Asian Paints. The expansion is to be completed in the next 2-3 years at a total investment of ₹960 crore approximately on plant and machinery.
Kotak Mahindra: Private lender Kotak Mahindra Bank said that LIC has received approval from the RBI to increase its stake in the Bank up to 9.99%. While announcing reformed rules on the structure of private sector banks, the RBI had on Friday said that non-promoter share holdings would continue to be capped at 10% for individuals and non-financial institutions.
Dr Reddy’s: Company is in talks with partners to export domestically made doses of Russia’s COVID-19 vaccine, Sputnik, after New Delhi recently approved shipments of other shots, the firm said on Monday. As the main Indian distributor of Sputnik, sold only on the private market, Dr. Reddy’s has struggled to compete with vaccines that the government distributes free.
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@elitewealth.in 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@elitewealth.in
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