View on market: Volatility Prevails, Market is searching for better value
Asian markets were primed to open higher on Monday as positive momentum from a rally on Wall Street and signs of moderating U.S. inflation underpinned support for global stocks. Futures contracts for equities in Japan, Australia and Hong Kong all pointed to early gains, as did a gauge of U.S.-listed Chinese companies, which advanced 1% on Friday. The Nasdaq 100 rose almost 2% last week and notched its best ever first-half of a year, with Apple Inc. hitting the $3 trillion milestone along the way. The S&P 500 reached the highest since April 2022 and posted its best first half since 2019. Meanwhile, Brent crude was trading around $75 a barrel and West Texas Intermediate was below $71-mark. The yield on the 10-year U.S. bond was trading at 3.84%, whereas Bitcoin was above 30,000-level. At 5:20 a.m., the GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India was up 0.38% or 73.5 points at 19,364.5.
Economic Calendar:
- USD : ISM Manufacturing PMI (Jun) on 03rd July, 2023
- USD : Services PMI (Jun) on 06th July, 2023
- INR : Nikkei S&P Global Manufacturing PMI (Jun) on 03rd July, 2023
- INR : Nikkei Services PMI (Jun) on 05th July, 2023
Brokerage Radar:
MS ON APOLLO TYRES: Downgrade to EW, TP raised to Rs 425; Commodity cycle & competitive intensity are benign; In FY24, expect co to post EBITDA margin of 15.7% & RoCE of around 11%; With FY25 RoE at 12.3% & P/B at 1.7x, risk-reward balanced
CITI ON ULTRATECH CEMENT: Buy, TP Rs 9,050; Reported 20% yoy growth in grey cement sales vol in 1QFY24 (capacity utilization at 90%), likely driven by strong industry demand + new capacities commissioned over past yr; While demand strong, prices largely rangebound
CLSA ON TATA COM: Buy, TP Rs 1755; Kaleyra acquisition will boost co’s CPaaS offering; Kaleyra is a CPaaS provider with proprietary platforms & revenue of $339m of which 54% is from US market; Deal attractively valued at 0.75x vs TCom’s own valuation 2.5x EV/Sales
International Markets
U.S & Europe:
Particulars | 30th June | Chg. | Chg.(%) |
Nasdaq | 13787.92 | 196.59 | 1.45 |
Dow | 34407.60 | 285.18 | 0.84 |
FTSE | 7531.53 | 59.84 | 0.79 |
CAC | 7400.06 | 87.33 | 1.18 |
DAX | 16147.90 | 201.18 | 1.25 |
Dow Fut.* | 34408.80 | 1.20 | 0.00 |
Asian markets
Particulars | 03rd July | Chg. | Chg.(%) |
GIFT Nifty | 19380.00 | 35.00 | 0.18 |
Nikkei | 33704.73 | 515.69 | 1.53 |
Straits Times | 3214.20 | 8.29 | 0.26 |
Hang Seng | 19167.15 | 250.72 | 1.33 |
Shanghai | 3230.62 | 28.56 | 0.89 |
ADR Watch:
Particulars | 30th June | Chg. | Chg.(%) |
Dr. Reddy | 63.11 | 0.46 | 0.73 |
HDFC Bank | 69.70 | 0.25 | 0.36 |
ICICI Bank | 23.08 | -0.03 | -0.13 |
Infosys | 16.07 | 0.17 | 1.07 |
Wipro | 4.72 | 0.02 | 0.43 |
Commodities & Currency
Particulars | Current Price | Chg.(%) |
USD/INR | 82.04 | -0.07 |
Brent | 75.42 | 0.01 |
Gold | 1922.80 | -0.34 |
Silver | 22.977 | -0.19 |
FIIs & DIIs:
Particulars | 30th June | 28th June |
FIIs | 6397.13 | 12350 |
DIIs | 1197.64 | -1021.01 |
News Update:
Adani Transmission: GQG Partners bought 2.13 crore shares in Adani Transmission in two bulk deals. GQG Partners Emerging Markets Equity Fund bought 72.59 lakh shares at Rs 786.19 per share in a bulk deal. Goldman Sachs GQG Partners International Opportunities Fund has purchased 1.40 crore shares in Adani Transmission at Rs 786.19 apiece in a bulk deal. Fortitude Trade and Investment has sold 3.39 crore shares in Adani Transmission at Rs 786.17 per share.
Vedanta: SEBI has imposed a penalty of Rs 30 lakh on the company for violating disclosure norms. Vedanta made incorrect disclosures about its plan to enter the semiconductor business. Separately, the company said in an exchange filing that it will consider a potential strategic sale of its steel businesses to maximise stakeholder value. The company has engaged advisors to assist in this review.
State Bank of India: The bank’s Chief Financial Officer, Charanjit Surinder Singh Attra, has resigned from the position. The resignation has been accepted and comes into effect after business hours on June 30.
Hero MotoCorp: The automaker raised the prices of its motorcycles and scooters by around 1.5% with effect from July 3, 2023. The price revision is part of a price review that the company undertakes from time to time.
Reliance Industries: RIL and BP have started gas and condensate production from the third deepwater field in India’s KG D6 Block, the MJ Field. The output from the block at peak will account for one-third of India’s domestic gas production. MJ Field, R-Cluster Field, and Satellite Cluster are the three deepwater fields of Block KG D6 off the east coast of India.
Mazagon Dock Shipbuilders: The company has signed a contract worth Rs 2,724.63 crore with the Indian Navy for medium-refit cum Life Certification of the second Shishumar class submarine INS Shankush.
PVR Inox: The company opened a 10-screen multiplex in Delhi and a 5-screen multiplex in Ahmedabad. With this launch, the company now operates the largest multiplex network with 1697 screens at 360 properties in 114 cities, including India and Sri Lanka.
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)
Kiran Tahlani, Elite Wealth Limited, kirantahlani@elitestock.com
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 e-mailing 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:
- 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;
- 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
Provided that research analyst or research entity shall not be required to make a disclosure as per sub-clauses (c), (d) and (e) of clause (ii) or sub-clauses (a) and (b) of clause (iii) to the extent such disclosure would reveal material non-public information regarding specific potential future investment banking or merchant banking or brokerage services transactions of the subject company.
(4) EWL or its proprietor has never served as an officer, director or employee of the subject company;
(5) EWL has never been engaged in market making activity for the subject company;
(6) EWL shall provide all other disclosures in research report and public appearance as specified by the Board under any other regulations.