Market-View-Feature-Image

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

Asian stocks were steady Wednesday as traders mulled another all-time high for U.S. equities and a retreat in short-term sovereign yields ahead of the Federal Reserve policy decision. Stability in iron-ore prices bolstered commodity-exporter Australia, while shares in China and Hong Kong fluctuated. Japan is shut for a holiday. S&P 500 and Nasdaq 100 futures were little changed following fresh peaks for U.S. shares. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, rose 0.13% to 17,943, as of 8:10 a.m.

Economic Calender:

  • INR: Nikkei Service PMI (Oct) on 3rd November, 2021.
  • INR: Bank Loan and Deposit Growth on 5th November, 2021.
  • USD: Fed Interest Rate Decision on 03rd November, 2021.
  • USD: Initial Jobless Claims on 04th November, 2021.

Earnings: State Bank of India, Eicher Motors, Aditya Birla Fashion and Retail, Bata India, Centrum Capital, Grindwell Norton, Gujarat State Petronet, Gujarat Alkalies & Chemicals, Gufic Biosciences, Pfizer, Rattanindia Enterprises, RattanIndia Power, Uflex.

Results:

Bharti Airtel Q2FY22 (Consolidated, QoQ): Revenue up 5.5% at Rs 28,326.4 cr Vs Rs 26,853.6 crore. Net profit up 4 times at Rs 1,134 crore Vs Rs 283.5 crore. Ebitda up 6.3% at Rs 14,018 crore Vs Rs 13,189 crore. Margins at 49.5% Vs 49.1%.

PNB Housing Finance Q2FY22 (Consolidated, YoY): NII down 19% at Rs 548.54 crore Vs Rs 675.84 crore Net profit down 25% at Rs 235.21 crore Vs Rs 313.29 crore Net interest margin at 3% Vs 3.5% Gross margin, net of acquisition cost, at 3.3% Vs 3.5% Disbursements stood at Rs 2,961 crore compared to Rs 2,444 crore Asset under Management degrew by 3% QoQ at Rs 69,810 crore.

Brokerage Radar:

CLSA ON SUN PHARMA: Maintain buy at the price of Rs 815 for the target price of Rs 1050. Specialty ramp-up on track & earnings upgrades continue. Another quarterly margin surprise drives a Q2 result beat. Well placed to boost specialty sales & achieve EBITDA breakeven in FY23. Raise earnings estimates 4-11% over 22-24.

JEFFERIES ON BHARTI AIRTEL: Maintain buy at the price of Rs 714 for the target price of Rs 860. Revenue/EBITDA in-line while profit beat estimates. Mobile ARPU missed estimate, lower than expected churn offset this. Subscriber mix improved further, a reflection of its network investments. Homes & enterprise segments also surprised positively.

International Markets:

U.S & Europe

Particulars 2ndNov Chg Chg(%)
Nasdaq 15,649.60 53.68 0.34
Dow 36,052.63 138.79 0.39
FTSE 7,274.81 -13.81 -0.19
CAC 6,927.03 33.74 0.49
DAX 15,954.45 148.16 0.94
Dow Fut.* 35,911.00 -27.00 -0.08

Asian markets:

Particulars 2rdNov Chg Chg(%)
SGX Nifty 17,943.00 22.50 0.13
Nikkei 29,520.90 -126.18 -0.43
Straits Times 3,227.80 -4.57 -0.14
Hang Seng 24,936.28 -163.39 -0.65
Shanghai 3,495.27 -10.36 -0.30

ADR Watch:

Particulars 2ndNov Chg Chg(%)
Dr Reddy 63.38 -0.18 -0.28
HDFC Bank 72.06 -0.79 -1.08
ICICI Bank 21.18 -0.10 -0.47
Infosys 22.66 0.19 0.85
Tata Motor 31.77 -1.76 -5.25
Wipro 9.05 0.08 0.89

Commodities & Currency

Particulars Current Price Chg(%)
USD/INR 74.68 -0.25
Brent 83.51 -1.42
Gold 1781.15 -0.46
Silver 23.462 -0.20

FIIs & DII

Particulars 2nd Nov 1st Nov
FIIs 244.87 -202.13
DIIs -6.00 116.01

News Update:

M&M Financial Services: With opening of the economy and customer cashflow improving on account of mobility, festival and harvest, the company expects gradual reduction in Stage 3 and Stage 2 to continue in the months to come. The company witnessed visible trends of sequential improvement in Stage 2 while Stage 3 was range-bound. October collection efficiency at 91% was higher than than 89% in the year-ago month, but lower compared with the second quarter ended September 30. Disbursements rose 20% YoY to Rs 2,650 crore.

HDFC Life Insurance Company: CCI has approved acquisition of 100% shareholding in Exide Life Insurance Company by HDFC Life Insurance Company.

Poonawalla Fincorp: Approved divestment of its direct and indirect shareholding in Magma HDI General Insurance to comply with IRDAI regulations. Sanoti Properties LLP will acquire the company’s stake in Magma HDI. The company will also divest its of 48.89% shareholding in Jaguar Advisory, which is a t venture partner in Magma HDI. The proposed transactions will result in a pre-tax profit of Rs 351.85 crore for PFL and sale of stake will result in an effective increase in Tier 1 capital adequacy ratio from 52.2% to 56.1%.

Adani Enterprises: Adani Defence Systems and Technologies, a wholly owned subsidiary of the company, has incorporated a unit Astraeus Services IFSC. The unit is incorporated with the object of leasing and managing of General Aviation aircraft

Minda Corporation: The company has signed an agreement to purchase 49% equity shares in Minda Stoneridge Instruments for Rs 161 crore. The agreement has been executed among Minda Corporation, Stoneridge Inc., USA and Minda Stoneridge Instruments.

Infosys: Infosys Finacle, a subsidiary of the company, and IBM have collaborated to help banks accelerate cloud transformation journeys. Finacle Digital Banking Solution Suite will be available on Red Hat OpenShift and IBM Cloud for financial services

Wipro: Company has partnered with TEOCO to develop next-generation network solutions for communication service providers. The partnership includes the establishment of a Center of Excellence. 

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

 

FILING COMPLAINTS ON SCORES - EASY & QUICK

a. Register on SCORES portal

b. Mandatory details for filing complaints on SCORES:
i. Name, PAN, Address, Mobile Number, E-mail ID

c. Benefits:
i. Effective communication
ii. Speedy redressal of the grievances

SEBI : https://www.scores.gov.in/scores/complaintRegister.html