Market-View-Feature-Image

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

Asian stocks advanced on Monday, amid volatility in equity, bond, currency and commodity markets. Equities in Japan and Australian rose 1% each after a decline in S&P 500 and Nasdaq 100 contracts. The Wall Street ended in the green on Friday and will be closed for the Independence Day break. At 6:20 am, the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — rose 0.63% to 15,844. Crude oil was near $108 a barrel. Bitcoin hovered at $19,000 level.

Economic Calendar:

  • INR: Service PMI on 5th July 2022.
  • INR: IIP Data 12th July 2022.
  • USD: Non-Manufacturing PMI 06th July, 2022.
  • USD: Factory Output 05th July, 2022.

Brokerage Radar:

HAITONG ON FEDERAL BANK: Reiterates ‘outperform’ and maintains target price at Rs 123 apiece Sees improvement in growth momentum from Q1 business update. Gross loans grew 16.3%/4.6% YoY/QoQ compared to 9.5%/2.8% in March quarter. Retail loans grew 16.7% YoY Vs 10.4% YoY in Q4FY2021-22. Retail of wholesale book ratio remained similar to FY2022 numbers Retail customers deposits growth of 10% YoY.

JEFFERIES ON METALS:Cut FY23-24 EPS for JSTL/HNDL/TATA by 2-34% & are 10-31% below Street Believe it’s still early to turn constructive as PB vals remain above historical troughs, earnings visibility is poor, & consensus downgrades will continue Retain Hold- TATA/HNDL U-P- JSW.

MORGAN STANLEY ON RIL: OW, TP Rs 3253 $16bn M Cap erosion following July 1 regulations implies a permanent $6-7/bbl lower refinery margin for RIL With govt looking to review every fortnight, RIL can sustain refinery margins at $15/bbl or above Even $15/bbl GRM would imply earnings upgrades

International Markets:

U.S & Europe:

Particulars      01st June    Chg Chg(%)
Nasdaq 11,127.84 99.1  0.9
Dow 31097.26 321.83 1.05
FTSE 7,168.65 -0.63 -0.01
CAC 5,931.06 8.2 0.14
DAX 12,813.03 29.26 0.23
Dow Fut.* 30880.5 -216.80 -0.70

Asian markets:

Particulars    04th July    Chg. Chg(%)
SGX Nifty 15,710.00 -34.5 -0.22
Nikkei 26,085.07 149.45 0.58
Straits Times 3,115.15 19.56 0.63
Hang Seng 21,675.83 -183.96 -0.84
Shanghai 3,385.68 -1.96 -0.06

ADR Watch:

Particulars     01st June Chg. Chg.(%)
Dr Reddy 15,710.00 -34.5 -0.22
HDFC Bank 26,085.07 149.45 0.58
ICICI Bank 3,115.15 19.56 0.63
Infosys 21,675.83 -183.96 -0.84
Tata Motor 3,385.68 -1.96 -0.06
Wipro 5.41 0.1 1.88

Commodities & Currency

Particulars Current Price Chg(%)
USD/INR 79.05  0.10
Brent 111.21 -0.38
Gold 1810.25  0.49
Silver 19.773 0.54

FIIs & DII:

Particulars         01st June         30th June 
FIIs -2324.74                      -1138.05                      
DIIs  1310.71 1378.20

News Update:

HDFC Bank, HDFC: Stock exchanges give nod for HDFC Bank-HDFC merger. Observation letters of ‘no adverse observations’ from BSE and ‘no objection’ from NSE for HDFC Bank – HDFC merger.

HDFC: The company’s profit on sale of investment on account of the Corporation’s 10% stake sale in HDFC Capital Advisors during quarter ended June 30 was Rs 184 crore. Gross income from dividend for the quarter was Rs 184 crore. Gross income from dividend for the quarter was Rs 687 crore. Pursuant to the buyback option embedded in the home loan arrangement between the company and HDFC Bank, the company assigned loans to HDFC Bank amounting to Rs 9,533 crore.
CSB Bank: The company’s Q1FY23 Business Update showed that advances grew 2.1% QoQ (15% YoY) to Rs 16,333 crore. Gold advances grew 8.2% QoQ to Rs 7,099 crore. Non-gold advances fell 2.1% QoQ to Rs 9,233 crore. Deposits rose 0.4% QoQ while CASA improved to 35.1% from 33.7% QoQ.

IDFC First Bank: The company’s Q1FY23 Business Update showed that advances grew 6.7% QoQ & 21% YoY to Rs 1,37,685 Cr. Retail business represents 65.7% of the overall funded assets as of June 30, 2022 and Commercial business (CV, Business Banking etc.) constitutes 7.8% of the total funded assets. Mortgage business including home loans grew by 32% on a Y-o-Y basis and constituted 37.5% of the retail book. Deposits grew by 9.8% QoQ & 21% YoY and CASA improved to 50.3% vs QoQ 48.4%.

Avenue Supermart (Dmart): The Company reported Q1FY23 standalone sales of Rs 9,806.89cr Vs YoY Rs 5,031.75cr (+95%) QoQ Rs.8606cr (+14%). As Q1 of FY21 and Q1 of FY22 both were disrupted due to Covid, comparing it with Q1FY20 the sales has grown at 19.2% CAGR in last 3 year in Q1FY23. Share is trading at PE of 68 FY 24 EPS.

Karnataka Bank: The company reported YoY Advances growth of 12.59% in Q1FY23.

Deepak Nitrite: The company carried our restoration steps and submitted stability certificates to government with respect to fire incident at Nandeswari plant. Gujarat Pollution Control Board has issued directions revoking the closure order and allowed the company to operate a part of the plant, 50% of consented capacity of Nitro section.

Hindustan Zinc: The company shared its Q1FY23 business update in which Mined Metal Production came at 252 kilo tonnes vs 295 kilo tonnes QoQ (-15%) and 221 kilo tonnes YoY (+14%). Sequentially it was lower on account of lower ore production at mines & overall metal grades. Integrated metal and zinc production rose 10% YoY eah while lead production rose 11%.

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