- 14 hours ago
With global investors turning cautious and companies such as NVIDIA drawing huge attention, the fear is that any sharp correction in US tech may spill over into Indian IT shares as well.
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00:00Good morning and welcome to market opening on our collab show between business today and India
00:19today TV let's get you ahead of all the market opening action let's take a look at what's hot
00:24in the corporate and financial space today tech stocks in the US tumble as outage in IT services
00:30company Cloudflare brings down giants like chat GPTX perplexity Amazon web services
00:36Nvidia leads the fall with pessimism growing around AI valuations slight recovery in the
00:43Bitcoin investors waiting for September US jobs report now which is to be released after a long
00:48delay United States affirms that a trade deal with India could be finalized soon close Trump
00:56aid however adds that India's relations with Russia have complicated the situation the statement comes
01:02a day after Piyush Goyal made it clear that a deal will happen only when it is fair equitable and
01:08balanced Rajiv Jain backed GQG partners extends its bet on the Adani group raises stake in five
01:18companies through multiple block deals reports say GQG has spent more than 5,000 crores in fresh
01:25investments it's the same group which plowed in more than 38,000 crore in Adani companies after
01:31the Hindenburg report Bengaluru to get a new IT city on its outskirts Karnataka announces a new
01:40massive tech project in Bidadi says several countries have expressed interest in investing
01:45billions of dollars it'll be part of the Greater Bengaluru Integrated Township which will come up
01:50on the Bengaluru-Misuru Highway Google introduces its newest artificial intelligence system Gemini
02:013 in a direct challenge to open AI's GPT says the new AI is state-of-the-art in reasoning and is
02:09built to grasp depth and nuance the new AI will be immediately available to all users in its search engine
02:15all right let's take a look at global market first and how they're stacking up as I just mentioned
02:27clearly tech is playing spoilsport and all eyes now on Nvidia's numbers which are due later on tonight
02:33of course in the US let's see how those markets shaped up overnight down over a percent or so across
02:40and we saw tech taking quite a beating as well so while US markets are looking weak right now meanwhile
02:46on the trade deal as well some clarity and yet some measures still to close officials from India and the US
02:52are gearing up a senior Trump administration official has said that the long discussed trade
02:58deal between India and the US could be finalized soon Kevin Hassett director of the National Economic
03:02Council revealed that both sides are very close but added that there were complications because of
03:08India's ties with Russia the statement comes even as India reaffirmed its commitment to protecting the
03:13interests of its farmers fishermen and small industries listen it a partnership which is as comprehensive as the US
03:22India relationship has many elements and every element need not run at the same speed
03:28and of course negotiations is a process and India as a nation has to secure its interests has to secure the
03:48interests of our stakeholders businesses and balance it with our sensitivities with the farmers with the
03:58fishermen with the small industry and when we find the right balance you can rest assured
04:04we will even get outcomes on this score but the friendship is very enduring and the partnership is ever
04:16growing so we need not be worried we stand on very strong pillars of democracy very strong pillars
04:26of diversity and a very strong pillar of a shared commitment to development
04:35all right let's also welcome in Gaurang Shah who's joining us on the show this morning Gaurang good to have you with us
04:44yesterday we did inch up a clearly positive momentum a whole host of brokerage upgrades that are coming in
04:50on the index on the back of the entire consumption boost Bihar elections are behind us now and there
04:56too of course we saw it only feed into the momentum what's your take what are we headed in for today
05:01thank you so much Abha for having me on the show good morning to all the viewers of India today in business television
05:08small disclosure Abha has mandatory that all recommendations that I'll be sharing this morning on your show
05:14these are the part of our fundamental team research team our company Jujit or I we do not have any personal investment
05:20no financial interest no conflict of interest either but we give recommendations to our clients on similar lines
05:25they might have their investment interest so I think our one thing that has excited me or has reinforced my confidence
05:33or our confidence Abha is the earning season beginning of the Q2 earning season there was a lot of auditory that was written
05:40especially with respect to some sectors like IT etc and at the curtains down of the Q2 virtually we are seeing that there is
05:48rising optimism not only in terms of what we have delivered in Q2 but we are going to see in form of Q3 Q4 the next financial year
05:57so remember one thing you know political policies political alliances political ups and downs in terms of election numbers outcome
06:08trade agreements they do play some important part in terms of direction the equity market but one of the most important things
06:17that the market follows the earnings numbers if you deliver the numbers as per expectation of about that then the market will adjust
06:24itself on the higher side and if you fail to do that then it will adjust on the lower side so I'm quite excited I think sooner or later
06:31we are going to see a new all-time high maybe we'll spend some time consolidating but that new all-time high is not far away
06:38fantastic okay so earnings of course continue to be in focus we've also got a whole segment of stocks
06:45that are in news go around we've got in fees buyback opens today TCS a whole you know whole big order five
06:53year contract from the NHS supply chain in the UK so that's a fillip for TCS we've got LTI Mindtree expanding
07:00its partnership with Microsoft to drive AI led transformation lots of news in tech and the background
07:05currently is Nvidia we're going to be watching out for that tonight do you think that Indian IT given
07:11how it's looking to adapt currently to the fast changes in AI and calibrate itself to what's happening
07:17globally will withstand this trend are you seeing opportunity to buy at these levels I don't think it's
07:24going to be impossible maybe it may be a little bit of a knee-jerk reaction or maybe a little bit of a hurdle in
07:35terms of digesting whatever and one thing is absolutely known to all of us that if there is one sector which
07:41always goes all evolving through changes in terms of new technology that is IT and we have to accept that fact
07:49we have to accept that fact what is happening in US in terms of the verbatim that we are hearing
07:55AI etc etc a bubble waiting to burst etc
08:02hope let's hope that that does not happen if it happens then maybe you know the repercussions
08:06may be felt across different markets and sectorial specific in terms of you know adjusting or absorbing the
08:14changes I don't think it's going to be difficult we have already heard earlier we have heard after the Q2
08:20earnings specifically from the top mid cap small cap management companies that they are evolving themselves
08:31they are adjusting to the new change that is coming through and that they will deliver over a longer period of time
08:36and we as a brokerage house Jiojit was always positive on IT even when a lot of people were telling you or advising you to stay away
08:44and now with the Q2 earnings and the growth that lies ahead I think it's all the more reason to reinforce your
08:51Okay so that's Gurang's view on IT and HCL Tech also has opened a new office in Calgary Canada
08:59so signalling continued global expansion so a whole host of news triggers in some of those IT names
09:05but we're also watching out for how the route overnight on Wall Street impacts the stocks today
09:10meanwhile Adani Enterprises that's the other pocket in news with the GQG investment coming in across
09:16Adani Power Energy Enterprises a whole series of block deals coming in there
09:20we're just counting down to opening so we'll see how some of these stocks pick up
09:24but Adani Group also clearly will be in focus on that continued investment coming in from one of its major partners
09:31there you go on your screen
09:32the opening bell coming in today it's really going to be about IT it's going to be about Adani
09:37we'll continue to see if some of those brokerage upgrades and positive calls on the index lead us closer to a new high
09:44let's pull up the index for you
09:46just a flat start right now just a marginal downtick on your screen at this point of time as we can see
09:52let's pull up the nifty bank also down remember PSU banks in particular have been in focus
09:57and we've been seeing some strength building up there IT is steady this morning up about two tenths of a percent right now
10:03let's take a look at some of the other gainers and losers for you on your screen
10:08let's pull up some of the index movers
10:10heroes continuing to see some traction HUL by the way
10:14we've got the de-merger of the quality unit the ice cream unit coming in in line with its global strategy
10:20so keep an eye on that one some value unlocking potentially there
10:24so in fees up TCS is up IT is looking good Sriram Finance Dr. Reddy's
10:29Grassim some of the other movers on your screen right now
10:32let's take a look at what else possibly is in the news at this point of time
10:36we'll come back and talk to Gorang on HUL in a moment
10:39but on the downside some of the other financials
10:41Indusin Bank Bajaj Fincer for instance
10:44ONGC is taking a breather
10:46Sipla Hindalko seeing some of them are a profit booking or a cool off coming in
10:50in early morning trade so far
10:52Apollo Hospitals add that to the list as well
10:54but overall on the index it's a steady
10:57just a marginal downtick
10:59Mark is clearly watching and waiting
11:00I want to just bring up grow
11:02let's bring up grow for a moment
11:03because this stock has just been on a roll since listing
11:06and what's happening now is that a lot of investors or short sellers who place bets on
11:11on really getting out of it just after listing were caught in a bit of a trap
11:15today it's now down 4-4.5% after series of consecutive 6-7% gains right after the listing day
11:24so 179 is what we're looking at on grow
11:26advanced decline ratio isn't looking too good right now
11:29it is actually skewed towards the negative
11:32but the cuts are limited and the index is just down marginally at this point of time
11:37Gauranga let me come to you on market opening
11:40that seems to be the set up
11:42it's mixed when it comes to auto this morning
11:45some amount of an uptick in HUL on the ice cream business de-merger
11:49otherwise banks are a little cooling off
11:52so are some of the oil and gas majors
11:54what do you make of this opening?
11:57well Abha I think like I said you know we may spend some time consolidating
12:01and that consolidation zone which we had put out via our YouTube channel Jiu Jiu Spotlight on Monday morning
12:10was lower end was somewhere close to about 25,700 to 25,800
12:15on the higher side we had anticipated a top heavy feeling somewhere close to about 25,980 and 26,075, 26,100
12:25so broadly you know we've been to those higher levels and again now we are consolidating
12:29so according to us and according to me
12:32Abha I think it is good to see this consolidation
12:34we are possibly trying to make a base building exercise
12:36every time we do this you know after making an upward move
12:40we try to consolidate at a particular level and then again try to move up
12:44and this consolidation results into a very strong foundation
12:48which enables us to you know stay at an elevated level as we go into it in the future
12:54so this consolidation will continue
12:56but I think sector and stock specific there are a lot of stories that you can definitely record
13:01alright
13:03so consolidation continuing there
13:07a few other names on the screen
13:09I think VARI is taking a bit of a knock
13:11KEC International
13:12so some of these on the downside
13:17alright
13:18we've also got
13:19let's pull up some of the Sriram stocks as well
13:22Sriram finance
13:23let's pull that one up for you on your screen
13:25Muthud finance
13:26some increase in guidance coming in there
13:29so Muthud could potentially be looking good this morning
13:32pull up some of the financials to see how they're stacking up in an otherwise weak market right now
13:38and grow
13:39let me pull that one up for you once again
13:41because that's really the story isn't it
13:43we've got
13:44we've got the fact that short sellers have been caught a little bit in the trap
13:50and that now playing out today
13:5230 lakh shares moved into auction window
13:55and that's leading to some amount of an auction coming in on grow
13:5870% up in just the last 5 sessions
14:01that's what we saw on grow right after listing
14:03with demand overwhelming the share supply in the market
14:06it was really much in demand
14:08but this is what we're seeing on grow today
14:10and a complete
14:11complete squeeze coming in
14:13and the stock now down about 5% right now
14:17okay a few others
14:18new newsmaker India's Azad Engineering
14:21they've signed an aircraft engine parts deal with Pratt & Whitney
14:25let's bring that up as well
14:26so from the broader market defence
14:28continuing to play out as a theme all across frankly
14:31and this is something we've been talking about regularly Gaurang
14:34just want to come in and chat to you about that
14:36because while we have been talking a little bit more
14:38the last week or so on banks and otherwise
14:41but defence continues to be a steady mover
14:43with consistent order wins
14:45consistent deal news that we've been getting across the board here
14:50so Abha, it is one of my personal favourite let me be very honest
14:53I've been discussing this sector with your colleague Shail
14:58and Shaqshi for a pretty long period of time
15:03and my sense is that this sector is a growth story for the next 3 to 5 years
15:09so eventually if you have the understanding capability
15:13and wisdom to invest in any defence related stock
15:17have a 3 to 5 year plus kind of horizon
15:19because it takes time for these companies to execute the order
15:22because of the complexity in terms of technology and precision
15:27as a brokerage house we are positive on BEL, BHEL, Cochin Shipyard, Musgown Docks to name a few
15:35and the kind of orders that they are getting not only from the Ministry of Defence
15:39on the local front Abha
15:41but going into the future you know global orders are something that these companies will be registering
15:48fantastic run rate in terms of not only the order book coming in
15:52but post execution adding the numbers to the top line and bottom line
15:57so I think defence is a very very long term road store
16:00and it's here to stay for quite some time
16:02OK, so that's on defence this morning
16:05we've got INOX, Wind and KP Energy joining forces for 2.5 gigawatt wind project development across India
16:11let's pull up those stocks as well and take a look
16:13and you know you can clearly see the structural shift play out
16:17in terms of the investments coming in and the deals coming in
16:20when it comes to infrastructure, defence, power, energy, renewables
16:23INOX Wind is down about 0.3% right now
16:26cooling off also we've got on real estate
16:29that's clearly some profit bookings across the board today
16:32we're seeing a little bit of cool off coming in across the real estate stocks
16:36just want to get your view on HUL Gaurang
16:40post the ice cream business demerger
16:42do you see much of an upside for investors there?
16:45well we definitely see and as a consumption theme
16:48non-discretionary Abha is something that will be in the spotlight for all the good reasons
16:53and the tax cut tax benefit for 12.75 lakhs good monsoon boosting the income from semi-urban rural India
17:03and of course the latest one being the GST avatar new avatar of 2.0 introduced on 22nd of September
17:10all this will lead to consumption boost as we go into the future
17:13and I think that ground level green shoots are already visible from this month onwards
17:17then I think they'll go even stronger as we go into the future
17:20hiving off of business does create a value unlocking proposition
17:24we've been positive on HUL for a pretty long period of time
17:27so that's like something like what ITC did
17:29they demerge their hotel business and list it as a separate entity
17:32so any company which has got diversified business
17:35and if they eventually the management decides on its wisdom
17:38to hive it off and list it as a separate entity
17:41it does create value only
17:44all right and interestingly today IT is up
17:47so we've got Infosys, TCS, all of them seeing a bit of a move
17:52and of course individual triggers there as well
17:56but clearly no rub off of what we saw overnight
17:59when it comes to some of the IT majors this morning
18:02INFI is a nice 1% higher right now
18:04remember of course its mega buyback opens and closes on the 26th
18:08so that's the other trigger that we're tracking on an Infosys this morning
18:12now Bengaluru will soon have a new IT city campus
18:16Karnataka Deputy Chief Minister D.K. Shiv Kumar has said
18:19that the state government is planning a new IT city in Bidadi
18:22with leaders from several countries expressing interest
18:24investing billions of dollars in the project
18:26now Bidadi is a town situated on the Bengaluru-Mysuru expressway
18:30where the Karnataka government plans to make greater Bengaluru integrated township
18:34listen in for more on this
18:38My IT minister Mr. Madhikaajan, our Priyank Kirkeji
18:43and Mr. Sharad Bajshagoda
18:45both of them have joined and helping this government
18:49and all of them I am getting hundreds of calls
18:55so that they will start investing it
18:59and a new IT city also has been planned
19:02in the greater Bangalore near Bidadi
19:06Bidadi is Bangalore south
19:08so I hope this talent, this research, this innovation, start-ups
19:13it all joined together
19:15and even on this cyber issue
19:17cyber crimes are increasing in the world
19:20but Bangalore also has started
19:22and we have taken initiative from the Karnataka government
19:25Alright, let's go across to Sagai Raj for more on this
19:28Sagai Raj, good morning
19:30just talk us through some of the plans there as indicated
19:33you know, what can we expect
19:35how soon do they intend to really see this come to life
19:38Good morning Abhay
19:40and if you notice that D.K. Shiv Kumar
19:42the Directorate of Karnataka as well as Bangalore
19:45is pushing for a lot of tech cities in the city of Bangalore
19:50after AICT in South Bangalore
19:53now we have announced that there will be a tech city as well
19:56in South Bangalore
19:57remember that South Bangalore has been renamed from Ramnagara
20:02and now he is pushing a lot of investment
20:04a lot of tech companies to establish their organization
20:08in South Bangalore
20:09and yesterday he has also said that
20:11that's close to 60 countries
20:13the delegations have participated in the tech summit
20:17and they are showing more interest in the investment in Bangalore
20:20and that is one of the reasons that they are coming up with tech city
20:24in Birdie on Bangalore
20:26and in the past we have also said that there will be AICT which will be coming up in Birdie as well
20:35so you will be getting two IP parks probably in Birdie
20:39one for tech companies and the other for exclusively for AI
20:45all right thanks for that Sagaraj
20:49we leave it there for now but do tune in at 3pm for all the market closing action
20:53that's all from us for this hour here on Business City
20:56that's all from us for this hour here on Business City
21:00I'm about to make sure that we haven't given our enough product for today
21:02and we will see you on the next level
21:04I guess it's all from us for this hour here on Business City
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