Market View 7th June 2022

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

Stocks in Asia opened steady Tuesday after a jump in Treasury yields capped gains on Wall Street. The yen extended a drop to a 20-year low. Equities in Japan gained as its currency plunged on a widening interest-rate gap. Australian stocks were little changed before a central bank meeting while South Korea markets fell. US futures dipped after both the S&P 500 and the Nasdaq 100 ended slightly higher. The Singapore-traded SGX Nifty, an early barometer of India’s benchmark Nifty 50, fell 0.82% to 16,430.50 points as of 7:00 am. Elsewhere, the pound held gains after UK Prime Minister Boris Johnson survived a leadership vote. Bitcoin rose back above the $31,000 mark.

Economic Calendar:

• INR: Cash Reserve Ratio on 8^th June 2022.
• INR: Interest Rate Decision on 8^th June 2022.
• USD: Wholesale Trade Sale 8^th June, 2022.
• USD: US Interest Rate 15^th June, 2022.

Brokerage Radar:

MACQUARIE ON HDFC BANK: O-P, TP Rs 2005 Add to Marquee buy list BK underperformed MSCI India by 15% over last 12 months, led by merger-related concerns; more than priced in BK plans to double its merged b/s over next 5 yrs & ramping up deposits significantly to achieve this.

JP MORGAN ON IT SECTOR: IT Services remains a late cyclical industry & investors should take positive management commentary bearing in mind lack of foresight sector has displayed at inflexion points in each of past cycles.

CLSA ON CEMENT: (Q4 Review) Risk-reward most attractive for Ultratech (Top Pick) Expect full impact of cost inflation to reflect in 1HFY23 Forecast FY23 industry demand growth of 7% YoY & profitability to fall 13% YoY Believe sector is on cusp of another round of consolidation.

JEFFERIES ON CEMENT: key takeaways from our checks: a) all-India avg price declined 3% MoM (Rs11/ bag) for May 2022 as prices in multiple markets declined, driven by weak demand/discipline; b) smallest decline seen in western region & largest in central region (c) price hikes were announced in very few markets for June 2022; d) downward risk on earnings estimates has resurfaced as price hikes are not sustaining & costs remain elevated.

JP MORGAN ON PAYTM (One 97 comm): Reinstate OW, TP cut to Rs 1000 from Rs 1200 Believe sustained improvement in profit margin contribution (Q4F22 35%) at PayTM seen over last 2Qs sets stage for operating leverage Q2F23 onwards as indirect costs moderate, Lending biz scale up, an increased contribution from devices & credit card sourcing should result in consistent qtry improvement in contribution profits which should touch near 40% by 4Q23

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DII:

News Update :

SBI Card and Payments: The bank approved raising Rs 2,500 crore through non-convertible debentures.

Bharti Airtel: Subsidiary company Nxtra Data has acquired 11.696% stake in Avaada MHAmravati, a special purpose vehicle formed for the purpose of owning and operating the captive power plant, for Rs 5.11 crore.

PB Fintech: Chairman and Chief Executive Officer Yashish Dahiya will sell 37,69,471 equity shares via bulk deals on the stock exchanges. There is no further sale of shares planned beyond these shares, at least for 1 year.

HLE Glascoat: The company approved split of existing share of Rs 10 each into five shares of Rs 2 each. It also approved raising Rs 350 crore through equity shares or any other instruments convertible into equity shares or any other eligible securities through qualified institutions placement, private placement/ public issue of equity, preferential issue or through any other mode.

NMDC: The company fixed price of lump of iron ore at Rs 4,400 per ton. This price doesn’t include royalty, DMF , NMET, cess, forest permit fee and other taxes

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