- 7 weeks ago
Experts recommend the financial stock as a strong buy for investors focusing on financial stocks, while also suggesting PSU banks, defence tech firms, and auto ancillary stocks as potential picks.
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00:00good morning and welcome to market opening on our brand new collab show between business today
00:28and india today tv just after nine we're here to get you ahead of the curve as markets kick off
00:34trading for the day let's take a look at what's hot in the corporate and financial space this morning
00:38big tuesday twist to the seven week long tale of trump tariff tantrums hours after india and u.s
00:46trade negotiators hold talks to lay out a path for the future u.s president dials up friend prime
00:53minister modi from onboard air force one fresh thaw between the two leaders as trump wishes
00:59modi a happy birthday and thanks him for support on ukraine
01:02all three u.s stock indices end lower and choppy trade ahead of the fed reserve interest rate
01:11decision tonight investors largely pricing in a 25 basis point cut despite news from the central bank
01:18oracle is also up after trump claims a deal with china to buy out tiktok's american operations
01:25investors in last week's main board ipo is set for a windfall this morning urban company expected
01:36to debut nearly an hour from now with more than 50 percent listing gains gray market premium and
01:42other issues shringar house and dev accelerator as high as 20 percent
01:46fresh twist to the jain street probe reports say the central board of direct taxes is looking into
01:56the alleged misuse of india's tax treaty with singapore liabilities to be imposed once the case
02:02is established news reports say cbdt has already collected data on this and will soon be submitted to
02:07the finance ministry jindal steel international in talks with germany's thyssen krupp to acquire its
02:16european steel business the naveen jindal company commits more than two billion euros to thyssen krupp's
02:22projects in duisburg and also constructing an electric arc furnace
02:26all right lots of optimism in the markets ahead of that fed meat pricing in a 25 basis point cut
02:43let's take a look at the overnight action on wall street as i mentioned markets right now just wait
02:49and watch mode to see really if the fed meets their expectations so that's really what's keeping the
02:55indices quiet for the moment so s p does nasdaq and dow all down just a touch in the red overnight
03:01action and then let's move across to asia this morning as well and see how things are shaping up
03:06there good move on the hang saying shanghai and nikke just marginally in the green while kospi lags
03:11behind so that's the setup there in asia now let's take a look at the nifty for you as well
03:16and of course that's the wall street action for you again on your screen but let's pull up the nifty
03:21and let me also bring in shalendra bhattnagar our chief analyst shell good morning lots of optimism
03:27that you're seeing especially you know the index still looking like just a slight upward bias and
03:32pre-open but clearly it's in the broader markets or in the kind of sentiment that you're observing
03:37when it comes to the lal street that that there is optimism both with regards to the fed meat and
03:43otherwise good morning abha and a very warm welcome to all our viewers of course there is optimism uh and
03:54you and i have also done what we can you're wearing red to include the bulls i'm wearing green to put the
04:00nifty higher and we have a gap up today abha and i'd like to advise all viewers and all investors
04:07to tighten their seat belts the final missing piece in the jigsaw a call between prime minister
04:15narendra modi and u.s president trump is now in place and this is the first and the last thing that
04:23was needed by the market for the bull run to continue yesterday we added 169 points overall in
04:29the last 10 sessions 860 on the nifty we are now at a four five week high last time you saw this
04:38number was on july 11th everything is in place the dollar index is at a five six month low the u.s
04:4610-year yield is at its five month low crude oil is below 200 day dma and a good monsoon a gst rate cut
04:54an income tax cut and of course uh the gst region everything is in place abha let's get ready for a
05:02very decent bull run from now on a trending day will follow today abha all right so very strong
05:09commentary coming in uh from our editor markets let's also go across to sharad avasti who's uh joining us
05:14he's head of research pcg uh let's uh get your view in sharad good morning are you also seeing a lot of
05:21bullish momentum when it comes to the index and of course the broader markets whether it be uh you
05:26know trump calling modi whether it be countdown to the fed meet uh what do you think is driving action
05:31and are you as bullish yeah well i'm bullish about uh everything else other than trump i think
05:38i would look at everything that he does i would take it with a pinch of salt and you can't be really
05:44sure how this topsy-turvy wave is going to respond so i don't know what it will do or what will end up
05:50because now we are talking that these are first round rhetoric talks what finally money is a deal
05:56or not we do not know and uh but the narratives have been different different from trump different
06:02from his people so i think i would not bet much but yeah i think what shell has very intelligently
06:06covered most of the points that you know uh there is a consumption boost we are looking at there is a
06:11tax cut boost we are looking at a part of the rally is already playing out so i think yeah over the
06:16next six months i think maybe at worst you know this quarter numbers do not look as rosy as we
06:22were expecting it earlier because of this dst cut announcement and a delay but next quarter i think
06:29the whole thing is going to bunch up so i am very positive that over the next you know three to six
06:34months we should see a very good rally in the markets all right so still looking at a three to six
06:39month scenario there very wisely in terms of uh you know the kind of sustained traction that
06:45shall they anticipate let's pull up some individual stocks as well uh shell bajaj finance i mean you
06:51know somebody would say it's always been a top performer why now what are you noticing on the stock
06:55well abha uh if there is one stock in india that needs uh uh no uh how should i say help from anybody
07:07there are four major tailwinds that have coming into bajaj finance remember for the month of september
07:13bajaj finance is already at a record high up about 15 16 percent it's the top performing stock on the nifty
07:20for the last fortnight and even on an year-to-date basis 47 percent higher again nifty stock performer
07:27now jeffries has put in a price target of 1100 rupees on bajaj finance for four tailwinds the gst rate
07:36cut uh the income tax cut a good monsoon and this consumer boom that we are seeing in front of us
07:44so jeffries hopes that bajaj finance will have a 20 percent uptick in its earnings for
07:50the next uh couple of years followed by uh a 20 percent return on equity more importantly abha
07:59this is the best nbfc franchise that we know if you're looking to buy a car if you're looking to buy
08:04a two-wheeler if you're looking to buy a fridge ac bajaj finances everywhere you and i get five calls
08:11a day from bajaj finance such as their reach the aum guidance for bajaj finances 23 to 24 percent this year
08:19versus bank credit growth of 10 percent so if there's one stock that you want to buy in india
08:25it should be bajaj finance according to jeffries of course please consult an independent financial
08:30advisor as well abha all right uh shell thanks for taking us through that let's pull up some other
08:36stocks and news as well we're just counting down to market opening right now uh axon noble cci has
08:41approved jsw paints buying up to 75 percent stake there in axon noble in fact talking about some of the
08:47the jindal counters uh jindal steel is the other big news maker today offering to buy thyssen chrome
08:53steel europe that's um you know that's quite a large uh buy coming in uh you know for jindal steel
09:00i want to get your view on this actually just quickly um shudder before we go to the opening
09:05bell because it's through a private subsidiary uh regardless do you see any kind of sentimental
09:10impact coming in on jspl this morning uh yeah there could be some impact i think this is a big
09:16acquisition we are talking about uh i think most of the steel companies do not have a gearing problem
09:21as on date also i think most of the debt is more or less negligible on most balance sheets
09:26including companies like sale so i think yeah jspl should benefit out of this forward we are trading at
09:3215 times and most probably over the next two years growth was anyways expected to be very strong
09:37so i think there's a strong balance sheet even post acquisition not much you know debt overhang
09:42should be there so in case everything goes through and it's not very exorbitant in terms of prices i
09:47think uh yeah jspl could see some upset from countries okay so let's take a keep an eye out on jspl
09:54on opening we're just counting now down now just about a few seconds to go uh remember we're expecting a
09:59gap up and continued traction through the day and we're of course uh cheering trump's call to modi
10:05and seeing some amount of market optimism on the back of that as well let's take a look at opening
10:11trades then on the screen up 0.3 percent 25 305 on the nifty so really good start coming in i know
10:19shell's gonna say i told you so nifty bank is looking good as well right now this morning we've
10:23got green on it up a nice strong half a percent in morning trade let's pull up some of the other
10:29indices and top gainers as well and take a look where the action is coming in auto is continuously
10:34gaining this week and last week so up three tenths of percent on some of those auto majors
10:39data consumers up over three percent coal india ultra tech some of the movers this morning seeing
10:44a good strong move one one and a half percent bel is back in the green data motors up about seven
10:49tenths of a percent we've got um grassim also on the move trend infosys ntpc and remember some of
10:56these names hadn't been participating earlier this week so definitely adding their muscle now today
11:01meanwhile on the downside adani ports has been very much in the news a slight breather there so
11:05same with aisha party is just about flat this morning right now let's take a look at what else is
11:12on the downside right now and titan and wipro market breadth is strong it's looking really good
11:17shell it's it's like you you indicated in the pre-open that clearly momentum seems to be at play today
11:24yes abha the top 10 stocks in terms of index weight on the nifty are doing pretty well nifty's
11:36infosys is up seven seven rupees at 15 18 a strong show that is coming into uh bajaj fincer hindustan
11:45uni lever and reliance uh apart from that the advanced decline is very strong as you mentioned
11:5115 36 shares in the green versus 3 40 in the red so that's an easy five is to one we track 19 indices
11:5818 of them are in the green and the rally is led by the it index the realty index energy and auto in
12:05terms of new highs in the market you have again maruti mannapuram finance adhaar housing finance and
12:14jsw street so the mood is really good and we are also uh getting ready for the urban company listing at
12:20about 10 a.m that's going to be a blowout hour today it totally is and in fact we spoke to the
12:26management uh we'll try and pull up a snippet of that but clearly on the path to profitability
12:32and quite confident of managing to build on that uh let me pull up um okay you said jsw steel is in
12:39action so let's pull that one up as well a whole bunch of the uh you know jsw stocks are of course in
12:44news today but jsw steels for other reasons some of those housing finance companies gold finance
12:49companies let me go across to sharad on that sharad so much to talk about in the market clearly
12:53but uh you know from some of these um broader market plays as shell said new highs every day
12:58coming in what would be your pick from the financials in the broader market i think uh within
13:04the financials uh bsu banks could be something that you could start looking at uh sbi the type of
13:11commentary that is coming from the management uh seems like good you know for around 1050 uh considering
13:17it trades at 1.752 price to book uh similarly i think the other psu lot also with a lot of talk
13:24about you know concentration and considering rebalancing it into much lesser number of banks
13:30so i think stocks like pnb bank over all trading at 0.91 times 0.8 times price to book so i think these
13:38offer a very good opportunity and on the private sector banks also i think there are opportunities
13:43hdfc is a decent bet but if i have to choose between the two i think the psus look much better
13:48sbi bank of baroda and bnb and we have been tracking some of that psu bank action as well now a few more
13:56news makers let's see how they're reacting we've got um bel of course in the green on the back of an
14:02order win as well as you know as well as continued traction on the counter apollo tires they're going to
14:07be sponsoring the india cricket team for three years apollo tires let's take a look if it's seeing any action
14:12this morning and amber enterprises a qip issue coming in there for that one apollo is up about
14:18one one and a half percent uh coal india they declared a preferred bidder for a rare earth block
14:24in ontilu chandragiri so that's why that counters in the news as well uh dr reddy is introducing a new
14:31molecule in india and gale seeking october cargo for the dubhole terminal so that's an lng tender coming
14:38in for gale so some of these news makers this morning just running through some of those names
14:42as well but uh you know we've been talking a lot about some of these defense names energy names
14:48uh and clearly some very key themes that are building in the market a clear shift that seems
14:52to be emerging sharath would you be in a consensus with that view and if so what would be some of
14:58your preferred picks in that space uh yeah certainly think this is a very good space to be in over the
15:05longer term you know three to five years uh but maybe the frontline names you would find it difficult to
15:10make money in a you know 18 24 month kind of horizon they might be priced perfectly i was looking at
15:16bel the other day it's trading at what uh 20 30 times if like 28 numbers uh so i think they leave
15:23very little on the table though you can consider the fact that there will be a lot of improvement in
15:27terms of order book etc uh what we are looking at right now i think if you look at a mix of power
15:33hydrogen etc i think mtar space i think mtar could be a good name to look at i think the order book
15:39acceleration should look much better in the second half and purely on the defense side i think idea
15:44forge is something though expensive but i think the tech book dominance they have in the drone technology
15:50these could be two small cap mid cap names that could do very well according to me in the next you
15:54know one one and a half year and the second half of the year should be much better for them
15:59okay great uh some more of those news makers we've got uh pnc infra tech with cci approving an
16:04acquisition of jp associates by pnc infra let's pull that one up and we've got hcl tech with its
16:10first ai martech platform uh in india as well it is looking good this morning pnc is actually seeing a
16:16pretty good move coming in right now and i think the other one i just want to go back to for a moment
16:21of the polo tires and shell you're picking up something there we just talked about how they're
16:25going to be looking to sponsor the indian cricket team so no business fundamental reasons but that's
16:30definitely why that counters in the news this morning yes and also the fact abha that auto
16:39ancillaries have done immensely well in this market remember polo tires were somewhere like 350 rupees
16:47in the month of april now somewhere like 492 so it's the auto ancillary theme that is running
16:54uh full steam for apollo tires as well and this new contract with the bcci for a three two-year period
17:02i'd also like to mark larsan and tubro a big order win uh at least 2500 crores worth of fresh orders
17:11that have come into lnt that's what the board has just informed shareholders and there is a runaway
17:20move that's happening on bel garden reach from the defense space this is something that
17:27sharad has also marked uh you have cochin shipyard one percent higher bdl one percent higher
17:33and a strong move coming into idea force something that he just recommended 2.3 percent higher uh
17:39apollo micro 2.4 percent higher abha all around you see a lot of activity the nifty now adding further to
17:47its gains 77 points higher 25 315 we'll have a strong trending day today the nifty will end at
17:55its days high at 3 30 pm abha okay i'm going to hold you to that shell when we come when we come back
18:03at 3 30 but uh you know sharad i'm going to come to you and auto and auto inc in just a moment but i
18:08just want to run through a few more uh brokerage views as well clsa on cement that's an upgrade on
18:13ultra tech so we'll just pull that up and outperform an ambuja so let's pull up some of those cement
18:18majors and we've got novama on eureka forbes also initiating a buy uh looking strong there and namura
18:25on prestige estates as well so there's a buy coming in there uh from namura on prestige estates just
18:30wanted to run through some of these other uh brokerage reports coming in as well i'll pull them
18:35up for you on your screen ultra tech looking good this morning and we'll pull up some of those others as
18:39well but auto and auto angshara let me come to you on that because um you know it definitely has
18:45been an area that's been buzzing post the gst news ahead of festive season we've seen auto make a big
18:50comeback of course uh but auto ancillary is also looking interesting any top picks there uh yeah i
18:56think uh varot looks like a good idea that you could look at uh the fact that you know four wheelers
19:02two wheelers should do very well i think that could be one company that could benefit substantially out of
19:06this uh though post issue they haven't really improved much in terms of price performance
19:12uh and the company has gone through some turbulence uh but i'm very bullish on it i think uh long term
19:17that could be a very good idea to look at uh some other mother son after this recent announcement of the
19:24aggressive targets that they have put in over the next three four years i think that's a very aggressive
19:28target uh usually they always put an aggressive target so i think that could be a good idea to bet on
19:33um but this environment might have run up a bit so much might not leave much on the table for one
19:37minute half years so i think some more than mother son and varov would be two ideas within the auto
19:41ancillary space that you can look at all right let me focus on the uh the big ipo listing this morning
19:48urban company set to list in a few minutes at an issue price of 103 rupees per share following a
19:53blockbuster response the ipo subscribed 109 times uh we did catch up with abiraj singh behal founder and ceo who
20:00spoke about the company's journey from back-to-back losses to turning profitable in fy25 he explains
20:05what's driving this turnaround and how it can be sustained abiraj fy25 saw turnaround from heavy
20:13losses in fy 23 and 24 to a profit of 239 crore rupees how sustainable is this profitability trend
20:20abha so if i talk about the last three actual years we have gone from about 437 and a half crores
20:31in revenue from operations in fy22 to about 1144 and a half in fy25 and of that 707 crores of
20:41incremental revenue that we have added to the top line we've seen a translation of about 385 crores
20:47moving to the adjusted even going from negative 373 to positive 12 and about 540 odd crores in the
20:56profit before tax going from negative 540 to positive 28 now the profit after tax has a deferred
21:04tax asset of 211 crores i would urge uh you know your listeners to ignore that accounting entry because
21:12that is taken in lieu of future profitability the real profits that the company generated should be
21:18seen as a profit before tax level which is about 28 odd crores or the adjusted dividend which is about
21:2412 so you can say more or less the company today is at a break-even stage uh you know on the base of
21:30about 1144 crores of revenue we've generated small profits but it's turned the corner uh in our kind of
21:37businesses investments happen up front in technology training brand building and customer acquisition
21:43etc and once you hit a certain threshold scale uh the fixed costs don't grow linearly with top line
21:50and one can expect a meaningful uh percentage of the top line and contribution margin flowing into the
21:56adjusted ebitda all right before we close the show let's just quickly focus on some of the pockets
22:03buzzing on the back of uh easing trump tensions shell absolutely i think there's a massive rally
22:14happening in all leather exporters look at mirza international and look at khadim both of them make
22:21shoes which are exported to the u.s and textile stocks this phone call between president trump and
22:29prime minister narendra moody is doing wonders look at gokaldas exports look at skytex both of them
22:35up five percent they export a lot of stuff to the u.s look at uh himad singha sida one percent higher
22:42look at aym syntax i track about 22 uh textile stocks 21 of them are in the green gains ranging
22:51between two and five percent two of them are on circuit which is kitex and gokaldas exports and there's
22:57of course no stopping mirza international and khadim up 11 and eight percent respectively abha great to
23:05see all these uh pockets of action and momentum clearly intact charad we are completely out of
23:10time just a 10 second answer from you do you see a fresh closing high today yeah very much possible
23:16i think yeah all right very much endorsing it then all right stay tuned we'll be back with market
23:22closing later but that's all from us for now uh thanks so much for watching
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