- 5 months ago
Market experts say the two companies are in very different positions when it comes to earnings visibility and investor confidence.
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00:00good morning and welcome to market opening on our brand-new collab show
00:20between business today and India today TV it's 9 a.m. and we're here to get you
00:24ahead of the curve as markets kick off trading for the day let's take a look
00:28at what's hot in the corporate and financial space this morning a big
00:33shake-up for Indian techies eyeing jobs in the US days after hiking the fees on
00:37H1B visas the Trump administration is proposing foundational changes to the
00:43system instead of a random lottery visas will now be allocated based on skill
00:48level and wages higher paid high skilled workers will get priority while entry
00:53level applicants could see their chances shrink
00:59US central bank chief Jerome Powell flags high valuations on Wall Street and warns
01:05that inflation could return if interest rates were cut too aggressively comments
01:10that trigger profit booking in US markets with the red-hot tech stocks shedding
01:14some of their recent games
01:19HSBC upgrades Indian stock market after eight months set sense its target at
01:23ninety-four thousand says India is Asia's quiet corner with resilient
01:28domestic investors despite foreign fund outflows
01:35food delivery giant Swiggy approves twenty four hundred crore rupees take sale in
01:39Rapido to process in Westbridge capital exit comes as Rapido enters food
01:44delivery space marking one of the year's biggest start-up deals
01:51Accenture eyes major under Pradesh push proposes a 10 acre campus in the Shaka
01:58Patnam under the state's land policy at just ninety nine percent acre with plans to
02:03add 12,000 jobs Reuters reports citing sources India already its biggest global
02:10base with over three lakhs staff
02:26all right let's start with the global set up then and some amount of profit booking
02:30coming in last night remember after those record highs on those tech stocks as
02:34they keep the momentum intact on Wall Street let's quickly pull up some of those
02:38global indices for you as well as the overnight action so you can take a look
02:42and the Fed commentary also continuing to warn a little bit about economic
02:46outlook going ahead so just those cues coming in for some amount of profit
02:50booking across the board in the US markets overnight in other global news of
02:54course we're tracking very closely for you the h1b visa fallout now that
02:58lifeline that we thought was in place could be slipping out of reach for
03:02thousands of Indian IT workers it's not just the 90 lakh rupee fee that the US
03:08has imposed on each visa the Donald Trump administration is now proposing
03:12radical changes to the entire system the traditional h1b lottery is likely to be
03:17scrapped and replaced with a wage based system workers will be slotted into four
03:21wage bands with those at the top getting multiple chances in the draw and the
03:26highest tier will be the one earning over 160 thousand dollars annually and will be
03:31entered into the selection pool four times in contrast the lowest tier gets just one entry
03:37increasing the probability of the highest paid highest skilled applicants being selected
03:42importantly the draw will be for one position instead of the current generic lottery for 85,000
03:49positions the fresh proposal adds to the steep hundred thousand dollar fee on new petitions as well
03:55business groups warn it may shut out young talent while legal experts say the plan could trigger court
04:02challenges as well we will of course bring you more on that as it continues to develop and also overnight
04:12of course remember piyush goyal has been in the us commerce and industry minister to further bilateral trade
04:19discussions little is known about the progress so far but what the minister has spoken about is the vast
04:25scope of trade in energy and nuclear sectors let's listen in
04:29we expect to increase our trade to the u.s on energy products only years to time and being close friends natural
04:43partners our energy security goals will have a very high element of u.s involvement which will ensure
04:56price stability which will ensure diversified sources of energy for india and help us unlock limitless
05:08possibilities of the u.s on various fronts energy and beyond another area where india and the u.s have
05:18work together plan to work together is nuclear war it's an area that we've been talking about for a long time
05:31all right let's look at the trade setup this morning we've got gorang shah joining us we've
05:35also got shailendra batnagar with us as always let's uh dive deep into what the setup's looking like
05:40shail first give us a quick look at the uh at the nifty and what the benchmarks expected to do today
05:48uh good morning abha uh hello gorang and a warm welcome to everyone on this lovely wednesday morning
05:55well uh a bit of profit booking will still continue on the lal street abha uh the nifty will test its 21
06:02day ema and that's probably because of a weakness continued weakness in tech stocks bank nifty on the
06:09other hand is looking much much better a record high on state bank of india strong moves in access and
06:15kotak banks are helping this index hdfc and icica are flat at the moment but they'll be used
06:21a little later to take the nifty to a record high apart from that you'll see a lot of demand coming
06:26in for psu stocks especially the private banking space within the psu spectre uh stocks like canada
06:33bank auto continues to hog the limelight although we have seen a very sharp rally on hyundai and
06:40uh maruti but top draw there a lot of caution is advised on the long side uh all in all a weak
06:48wetness day today as far as the nifty is concerned but overall a strong momentum as far as the broader
06:53markets are concerned abha okay great i'm going to come back and ask you a little bit more detail on
06:58both auto and financial shell but let me bring in gorang gorang good morning just counting down to
07:03opening and a lot of big news makers today as well what's your overall take first on the sentiment on d
07:08street this morning thank you so much abha for having me on this show good morning to all the
07:13viewers of india today and bt tv good morning to you and to my good friend shell i agree with shell i
07:20think it's going to be a soft opening uh if i'm not mistaken tomorrow is the monthly expiry of the
07:26afternoon segment so you could expect a little bit of elevated uh volatility in the market having said
07:32that uh i think uh there is going to be uh sector specific and stock specific news abha which will
07:39be in focus uh weakness on it will continue given the new development overnight in terms of lottery
07:45system as you were mentioning they're being scrapped off and more skill based and uh fee based or salary
07:52based uh rollout should be done as far as h1b visa is concerned so it will continue to be under pressure
07:57but we remain positive on it from a long term point of view uh defense is something that will
08:03continue to hog the limelight we discussed it even last time that uh about the markets and the defense
08:09sector cap goods engineering along with that and i think uh spotlight will definitely be on cement sector
08:14as well given the kind of infrastructure activity that we are witnessing okay well i've also got to get
08:21your view on uh swiggy gaurang let me uh just run our viewers through the news uh they're set to exit
08:27uh rapido and uh remember of course uh swiggy has been running in uh in losses so this uh this news is
08:35actually uh quite positive for the counter because you know they'd forayed into food delivery the company
08:40has now approved the sale of that stake to process in westbridge capital for 2400 crore rupees uh so you
08:46know lots of uh lots of action coming in for swiggy on the basis of that news gaurang what how do you
08:52think the markets will read into this in terms of of course the cash infusion but on the other hand
08:57wondering perhaps strategically what this means a small disclosure because we're talking stock specific
09:04all recommendations that i'm going to give you on this show are a part of our research team
09:07recommendation our company jujit or i we do not have any personal investment no financial interest
09:12no conflict of interest but we give recommendations to our clients on similar lines
09:16they might have their investment interest so you know if i have to compare between siggy and eternal
09:21which was known as zomato earlier yeah eternal has been on an all-time high lifetime high if i'm not
09:27mistaken and somewhere swiggy has been struggling struggling in terms of performance and it's
09:33somewhere close to its ipo price i believe it was 385 or 400. uh the problem for swiggy is in terms
09:39of earnings visibility and the kind of pressure that is there on the bottom line uh this stake sale of
09:45rapido may be a short-term trigger because it's not going to materially change the earnings of the
09:52company how are the proceeds going to be utilized i think that's going to be very prudent and important
09:58i guess the management will possibly throw some light over there after some time but uh we do not
10:03have coverage on swiggy so it's not a recommendation but eternal that is zomato we continue to have a
10:08positive coverage all right in fact uh you know with the instamart we did see swiggy see up over a
10:16hundred percent uh growth year on year on instamart the aov rising about 26 percent to 612 rupees even
10:23though the adjusted abita still remains negative at minus 15.8 percent so that's perhaps the one bright
10:28spot they've seen so far this festive season but agree with you uh gorang overall uh the market's still
10:34waiting for clarity having said that we're still seeing a lot of buy calls coming in on the counter
10:38and we'll wait to see how it kicks off on opening bell four percent up just to this week trading at
10:43about 458 right now so just counting down now three two one uh for opening bell this wednesday morning
10:49let's pull up those uh ticks for you uh nifty first let's see how it's kicked off uh this morning just down
10:56you know 0.16 so really steady at the moment no major profit booking coming in at this point of time
11:02just steady just quiet as we speak we've got the nifty bank also tepid in early morning trade uh
11:08let's pull up the auto index as well it also continuing to see pressure but just down about
11:14three tenths of a percent we did see a little bit of a pullback yesterday auto taking a little bit of
11:18a breather today and we'll come back and talk to go around about auto in just a moment as well
11:22psu bank some action there i know it's been on shell's list so i'll go back and ask him about some
11:27of the names you should be watching out for there as well uh but it's the psu banks that are a little
11:31bit of the bright spot not the overall financial space at this point of time let's pull up swiggy
11:36let's pull up the the main news maker this morning and see how it's reacting to the rapido news and if
11:41there's any kind of reaction coming in there that's quite a big deal a large size in the startup space
11:47but a moderate reaction on the stock it's up just about half a percent has been up close to four percent
11:52in the week but just about six tenths percent today on the announcement of that deal coming in
11:58few other stocks in news and we'll run you through them as as we continue to um chat with our guests
12:04but let me first go across to shell on some of the news makers this morning as well as uh you know
12:10shell what we're seeing on psu banks what we're seeing in terms of other gainers or pockets of green in
12:15the broader markets well abha i think uh there's a bit of weakness profit booking on third consecutive
12:25day as far as markets are concerned uh the lone bright spot so far is the nifty uh psu banking index
12:32up 0.7 percent all 12 stocks are in the green and obviously the rally is led by state bank of india
12:400.7 percent higher fresh record high what's also interesting abha is amongst the top 10 index heavy
12:46weights only sbi is in the green so that goes on to prove how this rally is being treated as far as
12:54the markets are concerned advanced decline a bit tepid thousand shares in the green 800 in the red
13:01and you have a profit booking across the border you have the 100 200 nifty 500 indices in the red
13:09sectorially nifty bank nifty auto nifty energy is down as far as profit booking is concerned all-time
13:16highs well nothing as of now but a volume buzzers in the form of minda corp tata investment and of
13:24course shipping corporation of india i would bet a lot of horses on psu shipping stocks as also ship
13:32builders abha all right thanks for that shell shipping cop up two and a half percent today in fact
13:39garang i want to focus on auto for a moment though even though we're seeing some amount of
13:42quiet today we've seen some of those stocks on the roll um you know whether it be the two wheelers
13:48whether it be maruti hyundai ayesha of course continues to trend at highs m&m has already seen a
13:53great pickup uh you know with with the navratras and the festive season kicking off and auto ancillaries
13:58we've been talking about that as well and how they're also now seeing an uptake on the back of
14:03revival in the overall segment how are you approaching strategy when it comes to auto
14:08and are you still a little wary for the longer term or are you are you looking closely at auto as
14:14perhaps things changing more structurally
14:15absolutely positive no doubt about that on autos what we witnessed from monday that is 22nd and
14:25yesterday that was 23rd was primarily because of the numbers that the companies reported
14:30now i think maruti sold historical high numbers uh for the last 34 years 30 000 vehicles uh 11 000
14:39vehicles reported by hyundai if i'm not mistaken and similarly a good set of numbers from data motors
14:45now we have to remember one thing that from 15th of august onwards in the time the honorable prime
14:50minister announced this gst rate cut i think for the last 40 odd days all those customers who were
14:58wanting to go ahead and book a vehicle whether it is two-wheeler three-wheeler or a four-wheeler
15:04they were holding on for 22nd of september given the uh benefit that they would get so along with
15:09the gst benefit most of the companies have also doled up festive discounts so that added to the
15:15positivity in terms of numbers uh it would be prudent to see how these numbers continue as far as the
15:22overall month-on-month sales numbers for the next couple of months and of course what will be the
15:26impact on the quarterly earnings there is absolutely no doubt that most of the automobile
15:31manufacturing companies are also spoken about high demand high booking coming in and that is one of
15:36the reasons why inventories have gone down some of the companies have already spoken about capex
15:41because of the high demand to meet up with the high demand and along with that i think export
15:46competitiveness will also have a positive impact on the month-on-month numbers that we'll get from
15:51all the automobile manufacturing companies so the long term okay i mean because these stocks have
15:56rallied for the last couple of weeks uh we are witnessing a little bit of profit booking uh no
16:00complaints against that but the long-term story for the indian automobile industry remains very much in
16:06time all right uh let me also go across to krishna now he's joining us on the swiggy news uh krishna good
16:14morning from a stock market pov we were just talking about how perhaps uh you know it's still a little
16:20unclear to us how they're going to allocate those funds and what it'll mean for swiggy strategically
16:24run us through uh you know what what you're hearing in terms of uh the outlook on swiggy going ahead
16:29post this deal hi abha okay for starters this is really a result of conflict of interest because
16:36rapido purely from being a ride-hailing service is now moving into food delivery a space that's been
16:40occupied by swiggy and its arts rivals romanto for a while now the way i look at it swiggy put in about
16:45thousand crores in 2022 they're exiting at about a 2.3x return which is which is great it also brings
16:52cash back into the stable of swiggy i think which is more than welcome uh also it opens up the whole
16:57business for rapido in the sense the moment they're able to map it in terms of from being a ride-hailing
17:02service they understand the consumer value at least that part of the consumer business it allows them
17:06to get into an allied business like food delivery so i think from a strategic sense it's great it also
17:11gives the investors uh maybe process in westbridge a chance to hike their stake in rapido something
17:15they've been looking at there's still been no real talk of rapido looking to go public but to my
17:20mind that this could very well lay the foundation for that particular development at some point in
17:24time but i think overall it's a good development brings in money for swiggy more than anything else
17:28and i think driving the point that the conflict of interest is an area that needs to be defined very
17:32very clearly but do you really think uh there's space for a third player krishna that's the big question
17:38i really think so because the market is still very large in india we have a large part of india
17:43which is still really coming up with that sense availability of data at a at a low cost obviously
17:50opens up the market completely and the fact that we have a heterogeneous cuisine across an audience
17:55that's really large i think really sets it up so even if you look at larger markets uh though
17:59there's a duopoly uh food habits are pretty much uniform as opposed to india so i think it's still
18:03an underrepresented market as we speak all right krishna thanks so much for joining us this
18:08morning uh gorang i want to just come back to you also on the psu banks that we're looking at this
18:13morning a lot of action there we talked about it being a bright spot but i think even on the fno
18:18side we are seeing a whole bunch of these psu banks that are the top gainers right now
18:23what's your view when it comes to these names and anything particular they're catching your eye
18:27or as a theme what's your view so we have about five or six names under fundamental coverage
18:35uh for the psu banks uh state bank of india indian bank bank of borada bank of india uh canara bank
18:45and pnb these are some five six names on the fundamental side on which we have positive coverage
18:50and our anticipation is that uh the loan good loan uh demand that is credit demand abba is going
18:57to go up substantially which will improve the loan book uh we have had consistent downtick in terms of
19:03gross and net nps which has enabled the provisions to come back to the balance sheet and of course
19:08interest rates coming down over extremely well so if i have to put all this thing in perspective i
19:12think the entire bfsi segment whether it is private sector bank public sector bank or strong nbfc's
19:17all these three verticals in the bfsi segments are likely to perform well going into the future
19:23okay great um shell a quiet market but you mentioned lots of other movers there when we last spoke on
19:29the fno side anything else we should be watching out for today i think abha this day belongs to psu
19:37stocks in particular psu banks out of top seven gainers in fno you have four psu banks led by indian
19:47bank a record high here uh 706 bank of boroda about a percent higher canara bank the third top gainer
19:54123 rupees at about 0.4 percent higher bank of india pnb sbi uh and of course union bank federal bank
20:03so if you extend the fno setup for the top 12 gainers you have eight banks including two private
20:13sector ones which is yes bank and federal bank all through a broader rally which is taking root and
20:20this is also a good sign as far as the uh the broader markets are concerned you have a value
20:26coming in a bit of a view on swiggy as well as the india internet space what's happening abha is that
20:34a lot of established mutual funds are reducing their positions in front line it software exporters
20:41because of h1b problems and many other things that you talk about but that money is moving into
20:47the india internet space look at car trade look at pnb fintech all these companies have posted
20:53very very smart gains over the last three months or so ever since this problem became publicly known
20:59lots of other issues as far as the tsps are concerned but the india internet space doing
21:05very well keep an eye out on eternal take my word for it okay shell i'm holding you to that uh let
21:12that it's also good that you brought up car trade because we are seeing some of those counters also
21:18seeing record highs or really sharp movement on the back of the festive season so keep an eye on
21:23some of these names shell gorang great to have you with us on the show as always have a great day going
21:28ahead and something interesting for our viewers president trump's big statement against the medicine
21:34tylenol had the opposite effect on the stock price of the drug maker the share of kenview the company which
21:40makes the widely sold medicine zoomed as much as seven percent in early hours of trading on wall
21:45street it was only later that the price moderated somewhat but still closed one and a half percent
21:50in the green
21:58and before we leave you for the day visuals of a major technical failure at the un building in new york
22:04as us president donald trump and his wife melania stepped on an escalator in the building
22:09it stopped the first couple had to climb the stairs to the general assembly hall where trump later
22:14slammed the un for this glitch as well as another where the autocue machine failed
22:18maga activists are speculating that the glitches were deliberate to stop trump's speech at the un
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