Weekly-Market-View-Elite-Wealth

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

Particulars       6th June    Chg Chg(%)
Nasdaq 12,061.37 48.64 0.4
Dow 32915.78 16.08 0.05
FTSE 7,608.22 75.27 1
CAC 6,548.78 63.48 0.98
DAX 14,653.81 193.72 1.34
Dow Fut.* 32915.78 -173.7 -0.53

Asian markets:

Particulars    7th June    Chg. Chg(%)
SGX Nifty 16,462.50 -109.5 -0.66
Nikkei 28,031.15 115.26 0.41
Straits Times 3,223.82 -2.81 -0.09
Hang Seng 21,571.18 -82.72 -0.38
Shanghai 3,233.48 -2.89 -0.09

ADR Watch:

Particulars     6th June Chg. Chg.(%)
Dr Reddy 55.84 0.57 1.03
HDFC Bank 58.31 -0.03 -0.05
ICICI Bank 18.97 -0.1 -0.52
Infosys 19.43 0.05 0.26
Tata Motor 27.8 0.3 1.09
Wipro 6.02 -0.02 -0.33

Commodities & Currency:

Particulars Current Price Chg(%)
USD/INR 77.63 0.01
Brent 120.06 0.48
Gold 1843.20 -0.03
Silver 21.968 -0.56

FIIs & DII:

Particulars         6th June                                   3rd June
FIIs -2397.65                     -451.82                     
DIIs 1940.00 130.63

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

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