- 2 months ago
Discussions about support for domestic and international mining, including rare earth metals, are expected to help India move towards self-sufficiency, the expert says.
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00:00thanks a lot Anjali for that good afternoon and welcome to the market closing show this is our
00:19collab show between business today and India today television I'm Sakshi Patra and this is
00:23the 3 p.m. show where we will get you all the market closing action but first up let's take
00:27a look at what's hot in the world of business and the corporate world as well markets rally on
00:36global optimism as the sensex soars 1,000 points and the nifty nears 26,200 mark back nifty hits a
00:42fresh record high level while the mid caps and the small cap indices gain over a percent
00:46the first day of December series sees strong broad-based buying across the market
00:57metal stock surges center is likely to be clearing 7,300 crore rupees rare earth magnets incentive
01:05scheme move targets fully indigenous manufacturing ecosystem with 6,000 ton capacity nifty metals index
01:12jumps 2% in the stancing gmdc and nalco search by up to 6% train trade
01:18bar theater shares slip over two percent as 7,400 crore rupees block deal hits the markets with three
01:29and a half crore shares about point six percent of equity now changing hands promoter entity icil is
01:36likely the seller gold is back in flavor among investors hits a two-week high with u.s. economic
01:47data raising expectations of an interest rate cut by the u.s. federal reserve next month spot gold is
01:54now above the 4,150 dollar mark on the comex in india the 24 carat jumps 2,000 rupees overnight and now
02:02crosses the 1,27,000 rupee level prime minister narendra modi inaugurates saffron's aircraft engine
02:13services facility in hyderabad the french aerospace major plans to triple india revenue to 3 billion
02:19euros by 2030 and agrees to full fighter jet engine tech transfer prime minister modi now urges saffron to
02:26design and build engines in india
02:41strong day for dalal street and it's the first session of the december series as well right
02:56it's twenty six thousand two hundred and eleven for the nifty uh in trade you're also looking at
03:18all the sectors now into the green led by the nifty metals two percent higher oil and gas one point seven
03:24percent up media index nifty next 50 index also when we talk about the it stocks they're also
03:29hovering about one and a half percent higher in fact at least 10 uh stock indices are up by over
03:35one percent each you're seeing a broad based buying action small caps and mid caps up by over a percent
03:41the nifty bank at record high levels as well top of the show as far as the nifty is concerned jsw steel
03:47htfc live bajaj finance bajaj finsov geo financial services so nbfc and metals definitely showing from
03:54the top as among those top gainers let's actually go across to shayna mukaddam our market expert for
03:59the day to help us understand what's behind this fresh wave of move and with this over a 325 point of
04:06a jump on the nifty can be yet again hope for fresh record high levels soon rather than later
04:12shayna bomb welcome graf to you what do you make of the market's move well it's showing a very a lot
04:17of strength and it's a combination of factors i believe one is a bit of short covering two is we're seeing
04:25buying come back from fis so that is supporting the dias have all you know have been buying throughout
04:30the month but you are getting some extra support and i think some of the government policies
04:36announcements are driving some sectors like for example metals that you touched upon so it's a
04:41combination of many factors okay so what do you make of this fresh wave of metal rally that we are
04:47seeing at this point in time remember metals have always been extremely volatile and rather than a
04:53structural story do you think things are changing for the better for the metal story and what are the
04:57key factors there yeah i think there are a couple of issues over here uh that are supporting the
05:04the sentiment positive going in for metal stocks uh let us take copper for example uh copper the
05:10prices have gone up if you see the last two three months have gone up substantially so there you have
05:16some of the copper stocks that are doing well today you have hindustan copper that was actually
05:20doing pretty well today of course let me just say that i personally have investments small investments
05:25but in a number of these metal stocks also including others now today we've had announcement regarding
05:31the mineral and metal mining the mining industry where actually from some months there has been
05:38discussion as to the boost that the government was likely to give for them to uh you know not only
05:45domestic mining but also look to international uh areas where they can countries where they can actually
05:50increase mining of uh uh rare earth to make india self-sufficient so i think to that extent we have gmdc
05:58which actually also rallied uh other than that we've had aluminium nalco and indalco so it's a broad
06:03based rally even uh for example government has come across saying that the uh even for steel there would
06:11be some uh protection going forward increasing protection going forward so the overall sector is
06:16doing well among other sectors okay so should one just select a few stocks from this entire basket
06:22should one bet big on the nifty metals index is etf a better way to play this uh wave of momentum
06:29that we are seeing how are you advising clients to look at the metal story i would say it is better to
06:35be stock specific i've already mentioned uh my topics as of now given the balance sheet quality the
06:41opportunity and the price strength in the individual metals i would go with hindustan copper
06:46first gmdc 2 nalco 3 and uh you know vedanta i'm a bit iffy because there are a lot of changes that
06:54are happening in terms of the you know there is going to be uh split in the uh vedanta stocks into
07:00number of different companies so i would be a bit iffy on vedanta but uh you know it could be a
07:06trading pick if you would want to go in for it okay fair point well so the metal story is definitely
07:12moving in strong two percent higher shining the brightest as far as the sectors are concerned
07:17along with this we are also looking at some of the other commodities like oil and gas also pulling
07:21up in space you'll look at the cement story that's also doing well how are you looking at some of the
07:25other commodities based move that we are seeing right now what else looks attractive to you china
07:29the oil i would avoid as of now because while we are seeing very high grms uh singapore grms and that
07:37as of now but i believe that at least we are hearing very strong news or rumors that uh there is going to
07:43be some sort of settlement with between russia and ukraine now if that were to happen and one of the major
07:48conditions that russia is putting in is that they should be allowed to enter into the oil market globally
07:53so if that happens then we are likely to see these uh come off and uh i would say it is uh you know a
08:00bit risky to enter into that segment as of now so that is oil is something i would give a skip as of now
08:07okay let's also talk about the defense space remember viewers paras defense is in focus today after
08:12signing mou for the development of an mri magnet system in an exclusive conversation with business
08:19today television the company has laid out its growth roadmap and new sectors that it is geared
08:23to enter first up let's listen in to what the conversation was and then we'll take an overall
08:27view from china on defense space in the medium term uh three years to five years what are the new
08:35sectors that paras defense hopes to enter so three or four areas that paras defense is really strongly
08:44banking upon one is our anti-drone systems we've been we've been you know shout out uh towards an
08:51anti-drone technology how complex it is and how relevant it is for today's war-like situations even
08:58prior to what happened with our nation post what happened now you see anti-drone becoming the blue-eyed
09:04boy of technologies to be deployed on the war front so anti-drone technology is is one area very very
09:11strong area uh you will be surprised to know that paras has been conferred by the ministry of defense to
09:18develop uh laser systems for air defense applications and we are going to take this
09:25as an opportunity the faith and the trust that the ministry has shown on us we are going to take it
09:31to level where we will be wanting to become the laser technology company for not just for defense but
09:38also for space so this is where we would want uh to go the third area that we would want to work on
09:45is the the space uh sector where we already have a very strong positioning but we would want to take
09:52our contribution for space from just optics and optical systems to a larger value-added products
09:59and solutions so that is where one area and electromagnetics right now electromagnetic pulse
10:05protection or electromagnetic solutions is a very very uh dormant uh technology because people are not
10:13aware of the threats that are associated with it just like an anti-drone world which was three years
10:18back today electromagnetics is at that level maybe a couple of or three to five years from now that
10:23will become extremely relevant and extremely big as an opportunity let me go across to china now and
10:31try and understand what's actually happening in the defense space and uh are you looking at any key
10:36stocks um you know our valuations looking better than before uh is it giving you any opportunity to enter
10:41at this point the index is up by 1.2 it has had periodic strong moves uh what would you say uh yeah see
10:49actually uh after uh you know very good performance if you see uh last year we saw a bit of softness
10:56come in in the overall sector in the last couple of uh i would say in the last quarter having said that i
11:02think valuations still remain a bit expensive but uh the opportunity is so big and especially if you're a
11:09long-term investor looking at three to five year investment uh there i believe that uh you know
11:14the changes that the order book position the increase in order book uh that is actually pretty
11:19strong and likely to be good investments here i would believe you need a portfolio of stocks in your
11:25you know a couple of stocks in your portfolio and you could look at some of the leaders like bel you
11:31could look at hindustan aeronautics of course they've had this small bit of negative but of course you
11:37know uh we uh we really believe that uh in the next three to five years it's going to be a good stock
11:45to hold uh of course you have some of these smaller stocks which as you know your uh you just had the
11:51interview where they are looking at drone technology uh they're looking at surveillance systems smaller
11:56companies smaller come smaller the small cap companies like for example zen technologies uh they've got
12:03some order today you've got paris that is talking of orders these are all the sub 10 000 or crore
12:09market caps so if your valuations are expensive but if you're looking at three to five year i think
12:14these also could be decent opportunities to enter into their solar industries has been pretty well so
12:20you have a number of stocks in the overall sector that you could hold in your portfolio okay let's also
12:27focus on how french defense major safran has now offered to build its engines for the rafale fighter
12:33jet in india remember the company today has inaugurated its largest civil aircraft engine maintenance and
12:40repair facility or the mro as it is called outside of france in hyderabad now and has said its revenues
12:46from india operations will cross three billion euros by 2030 the company makes a cfm leap engines widely used
12:54by airbus 320 and boeing 737 aircraft safran will soon set up an mro facility for m88 engines
13:02used in rafales at the same location as well it had already on monday signed a deal with bharat
13:07electronics to produce hammer smart precision guided air to ground weapons in india so let's actually
13:14take you to excerpts from the exclusive chat business today has had with oliver andreas the ceo
13:20of safran in conversation with my colleague karishma sudhani we are also a strong partner of the rafale
13:29fighter and the rafale fighter so today we have announced that we will establish here also a maintenance
13:37repair and overall facility for the rafale fighter engine named m88 this is the first time we do that
13:45outside of france so it's it's uh it's a trust full uh let's say movement from us but we do that to
13:54serve the indian air force the indian navy but also our customers in the region as well how soon could that
14:02be uh on the footing in terms of comments this will be operational fully operational uh by i would say
14:10and uh 2027 i would say yeah yeah next two years very important two years for you and more more to
14:19come because we are committed to make in india and build a complete engine ecosystem in india relying on
14:26our civilian leg and our military leg and so we will build contribute to build a complete indian aerospace engine
14:37ecosystem u.s prime minister narendra modi has also meanwhile urged safran to do more than just
14:45set up an mro in the country has urged the french to a defense major to also design its engines
14:50and systems in india the pm has announced big plans for the shipping sector as well
14:55as they are the new one and the new department are also working on the design of the mro ecosystem
15:12and we are doing the big scale of the shipping sector in india and we are also promoting in
15:17We are also promoting the design in India as well as we are promoting the design in India.
15:23I will support the team from Safran's team,
15:26that you will also support the aircraft engine and component design.
15:31We will also support the MSME's,
15:34our network and our human talent pool.
15:38Safran Aerospace has been working on the propulsion system.
15:45I would like to use the propulsion design,
15:48and also use the talent and benefits for manufacturing.
15:53Absolutely, so that was all the focus about
15:57make in India and make India's defence system strong.
16:00Let's go back to China and try and understand
16:03how should one be really looking at this as a long-term theme
16:06for one's investment portfolios as well.
16:09We've seen what happened in 2024.
16:11Suddenly, everybody was talking about defence.
16:14Suddenly, every investor wanted to have defence in their portfolios.
16:17There were so many NFOs that were launched,
16:19there were so many mutual fund indices that were launched
16:22that would track the defence move.
16:24And right after, we saw all the defence stocks fall sharply,
16:29looking at the steep valuations
16:31because every stock was rallying just on mere sentiment and huge order flows,
16:36but execution was still slow.
16:38Even now, we see that the order flows that are coming in have to be surfaced over the next five years,
16:45ten years odd, but the sentiment is up and about at this point in time.
16:48So, how would you advise an average investor looking at defence in this new world order
16:53as the theme to look at over the next five to ten years?
16:57Yeah. So, basically, we've seen the corrections set in, I think, from June.
17:03June to now four or five months, we've seen the correction.
17:06And some of the stocks, like for example, BEL I mentioned,
17:10order book is strong.
17:11They've got something like 72,000 crores of orders in hand,
17:14which is almost three times its turnover.
17:17And execution also has been pretty good.
17:19So, I think if you combine good execution along with a good order book,
17:24slightly higher valuations, about if you take P basis, about 50 times.
17:28So, it's not cheap.
17:30But at the same time, if you're holding it for three to five years,
17:33you know, the opportunity that exists for making decent amount of money in a strong sector exists.
17:40So, I think one needs to modify your portfolio to have strong,
17:45have companies which have good order book as well as showing good execution and a strong balance sheet.
17:51So, I think some of the stocks that we mentioned earlier do fall into that category.
17:55Okay. Got that.
17:57Let me also just go across to try and understand when it comes to make in India,
18:02there are other manufacturing sectors that one should be really looking at as well.
18:06And where else would you find opportunities when it comes to the make in India theme
18:11that continues to be one of the focus themes for the government?
18:15And the government is consistently talking about incentives,
18:18PLIs for encouraging more and more industries to make in India,
18:23to safeguard themselves from the disruptive supply chains that we've been seeing in many cases,
18:29right from COVID up until now from the semiconductors to the rare earth space as well.
18:34Now, looking at the government's push even more on this space,
18:37how would you look at tapping make in India widely beyond even defence?
18:41See, well, we have semiconductors, we have EMS, the electronic manufacturing companies.
18:48Now here, I think in both these segments, opportunity is good.
18:52Like for example, CG power, you have Keynes technology.
18:55But in my view, the valuations are still expensive.
18:58So, if you are an investor who's looking at a one-year holding,
19:02you may not make too much money because most of the investments that they have made
19:06are likely to start, you know, showing good numbers in say FY27, FY28.
19:11So, I would believe that if you want to enter into the stocks,
19:15look for certain dips that you get.
19:17And you do get dips in across the sectors, across companies.
19:20So, look at these, keep them in your list to buy.
19:24And any dips that you see, you can add on to them.
19:28And similar is for the electronic manufacturing.
19:31Like for example, you have Dixon.
19:33My view, the valuations are expensive.
19:35There's nothing really wrong in those companies.
19:37But valuations are expensive.
19:38So, I would think a dip, you know, look at dips to buy and invest
19:44if you're looking at the sector.
19:46Okay.
19:47Like when we were talking about semiconductors,
19:50names like Moschip were already surging at, you know, days high level.
19:54So, we have been looking at a lot of these stocks that are now buzzing in trade.
19:58Apart from these sectors, let's also talk about the tech space.
20:01Look at Moschip, it's like a vertical rally that we are seeing at this point in time.
20:053.7% higher.
20:07Let me first just take a view on Moschip.
20:09What do you think has led to this sharp move?
20:11Almost a 4% of an uptick on Moschip right now.
20:14217 odd levels.
20:16Shaina, how are you looking at this stock?
20:18And do you think these levels also give an opportunity to, you know, enter a fresh?
20:22I would say better to buy it at dips, never get in when, you know, the stock is moving up on good news
20:28and it's showing that sharp rally.
20:31I would wait and valuation is also expensive.
20:34So, it's a good company to hold for the long term, but not at these levels.
20:38Not at these levels.
20:39There's a sharp spike, almost now 4.2% higher, even as we spoke about it, 218 right now.
20:46Huge volume surge that can be seen on Moschip technologies right now.
20:50Viewers, keep an eye out on this stock.
20:52Let's talk about the broader tech universe now.
20:55The IT stocks off late have been starting to move out of their large underperformance
21:01that they have displayed all this year around in 2025.
21:05But if you look at the last one month, there has been considerable amount of an uptake across large caps,
21:11across mid caps.
21:12Of course, there was no big negative news in Q2 earnings that we actually saw.
21:16No positive surprises either.
21:18But at the same time, there are these conversations that even you're talking about
21:23that there could be a potential, you know, US-India deal that could be in the offing.
21:28Once that happens, there could be some, you know, sentiments that return to the tech sector as well.
21:33And of course, the valuations after that long lull also seemingly look promising at this stage.
21:39How would you look at the IT sector?
21:41Would it be, you know, giving you any opportunities or would you still be cautious at this pace?
21:46Yeah, so actually the fear that AI is going to actually disrupt growth for the domestic ITs, you know, because they are largely services,
21:56would disrupt their growth going forward is to some extent, you know, subsiding.
22:03Also, you have the rupee depreciation, which is supporting, which will support them at least over the next couple of months.
22:09So, and in terms of the valuations, they are becoming pretty attractive.
22:15Like for example, TCS is now just about $3,000, $3,100.
22:19Infosys is actually, you know, going through their open offer, which is actually ongoing.
22:25So at $1,800, of course, there's no point in buying it now, because, you know, you're not going to get to participate in that.
22:32But at the same time, once that closes, and it settles down, then you could look at, you know, entry in that.
22:38You have most of the other stocks, like Mahindra Tech, they're talking about, you know, good growth over the next three years.
22:44So you can take your pick, HCL Tech also is doing well, Persistent Systems.
22:48So you have some of the stocks which have actually consolidated over a couple of months, which you could look at.
22:54But here also, you cannot expect to be a multi-bag or anything of that sort.
22:57You have to look at, you know, buying and expecting some decent 10 to 12% upside over the next one year.
23:05Okay, got that. Just three minutes to go before we see the end, in fact, of the session today.
23:12Remember, within the IT pack, Infosys is also in focus. Remember, today is when the 18,000 crore rupees share buyback ends
23:21for all those investors who want to tender their shares in the company as well.
23:251,559 is the price at which Infosys is trading at, 1.9% higher.
23:30This is an 18,000 crore rupees buyback at the price of 1,800 rupees per share, giving the investors final chance to tender their holdings to the IT major,
23:38repurchasing about 10 crore equity shares by the tender route.
23:43You know, what has been the trend over the last five sessions when we have seen this window open China?
23:48What have you advised investors? What are the queries that they have come up with?
23:52Have they been interested in? And any suggestion on the kind of acceptance ratio that we are expecting this time?
24:00Well, I would say the acceptance ratio will not be more than 5% to 8% in my view.
24:06Though the promoters, the initial, you know, the promoters have said that they will not be participating.
24:12So it could be slightly higher than the usual 3% to 5%.
24:16Probably it could range between 5% to 10%.
24:18So I would, in fact, I had, like whoever asked me, I was like, yeah, tender in the shares because it's a good price and you can always buy it back because valuations are not that expensive.
24:31You know, if you look at the current price, valuations are about 20 times one year forward FY27.
24:36So, but it makes sense to, of course, tender in and then whatever's left of your holding, you can sort of, again, average.
24:43Okay, got that. Just a minute to go before we shut shop for the day.
24:47So we'll just wrap up the market and come back to you, Shaina, with a lot of queries that are coming from our viewers also for you.
24:5326,202 for the Nifty viewers.
24:56So we hopefully will end above that 26,200 odd mark.
24:59313 points high end rate at the day's high point is what we are looking at.
25:04The Nifty bank, 1.2% higher at 59,528.
25:08Definitely looking at this fresh closing record high as well.
25:111.2% higher, strong volumes across the banking space led by private banks, financial services.
25:17Also the PSU banks, you know, hovering higher.
25:20IT index, the other strong heavyweight index that also moved up about 1.5% up.
25:25And that's also definitely supported the sentiments.
25:28Metals almost end by 2% uptick.
25:31You can see oil and gas up by 1.7%.
25:33Private banks, 1.4% higher.
25:36You can also see the mid and the small caps, 1.3% higher each for the broader market stocks too.
25:42Top movers by the end of the session.
25:44JSW Steel, Bajaj Winserv, HDFC Life, Bajaj Finance and Geo Financial Services and Indigo.
25:50When we look at the lag arts, there were just about five to six stocks that slipped in trade among those 50 stocks listed on the exchanges today.
25:57So a strong bullish trend across the Nifty stocks.
26:00Bharti et al., of course, seeing that pressure of the block deal.
26:04Adani Enterprises, Aisha Motors, SPI Life, Asian Pains also slipping in trade as well.
26:10So that's as far as the Nifty stocks are concerned.
26:13Let me also highlight for you the top movers from the Nifty 500 basket.
26:17Some of the strong moves that we actually saw were Finu Payments Bank about 9% higher in trade.
26:22Panesia Biotech also up by about 8% in trade.
26:26Then you also had names like Landmark Property Developers that's higher.
26:30You also saw Vikas Ecotech.
26:31You saw names like Natco Pharma in fact.
26:35Interesting one.
26:3611% higher for that one as well.
26:38Among those top movers.
26:39When we look at the top movers, you'll also see Tourism Finance Corporation among the winners as well.
26:46And Sadbhav Engineering as among those gainers.
26:49But on the losing side, Chennai, Petro declined in trade.
26:52You also had names like Muraji Dextiles that was declining.
26:57Also had names like Stallion India, Florochemicals and Sikha Logistics and Cupid also coming under some pressure.
27:03Even Yatra Online declining in trade from the Nifty 500 basket.
27:08Alright, let's jump into the questions now.
27:11We have a lot of queries coming in from all our viewers.
27:13Rishabh from Lucknow is the first question that has come up with us.
27:17He says, is now the right time to bet on travel and hotel related stocks amid spiritual tourism boom?
27:24That's an interesting question for you, Shaina.
27:26What would you advise?
27:27We are looking at how yesterday the entire beautiful ceremony at Ayodhya took place.
27:33Dhwaja Rohan was there.
27:34And we actually saw how everybody is discussing how Ayodhya is becoming the next economic hub for Uttar Pradesh as well with the rise in spiritual tourism.
27:44What would you advise in terms of the hospitality stocks there?
27:48Absolutely.
27:49And a lot of my friends who visited have come back with very positive reviews and I think
27:58tourism, domestic tourism is picking up in a big way.
28:03So hospitality as a sector overall is going to actually do well in my view.
28:07Domestic consumers have a lot of more money in their hands.
28:10You could look at hotels, for example, ITC hotels is one of my topics.
28:16There I believe there is value.
28:18You could look at some of the smaller ones also like lemon and make a portfolio there also
28:23of two or three hotel stocks.
28:25Other than that, of course, in airlines, you could look at Indigo.
28:29There I believe numbers could be better going forward because the yields are up and it is
28:36hopeful that the fuel cost will remain in check.
28:40So, I mean, for the hospitality segment, you could look at both these opportunities.
28:48Let's take the next question.
28:49This one is from Parul from Kolkata.
28:51She wants to know from you, Shaina, whether two-wheelers or four-wheelers or auto ancillaries
28:55would be better spaces to invest in for a one-year investment bet.
28:59So, where should one really look at within the auto ecosystem, two-wheelers, four-wheelers
29:04or auto ancillaries?
29:07Well, I think two-wheelers will do better in my view than four-wheelers because there's
29:11a lot of competition.
29:12But if you want to have one stock in four-wheelers, I think Maruti could be there.
29:18You could have Ashok Leyland that you could be invested in the passenger vehicle as well
29:23as if you have the CVs.
29:28And I would say two-wheelers should do better.
29:30Bajaj Auto does look good from these levels.
29:33And one can look to invest in Bajaj Auto if you have a one-year view.
29:36So, selective.
29:38And auto components, you could look at pre-call.
29:41But otherwise, I think the stocks have actually run up quite a bit.
29:47So, it's better to actually review it after a couple of months.
29:52Fantastic.
29:53All right, Shaina.
29:54We'll thank you on that note for being with us on the show.
29:57And of course, guiding all our viewers through the various opportunities that present themselves
30:00in the current investment market.
30:02And you can actually see how the markets have climbed higher above 26,200.
30:06Once again, giving us hopes that we could be soon inching towards fresh record high levels.
30:11With that, viewers, it's a wrap on the Business Today show.
30:13And in case you too have any questions about your investments in mutual funds,
30:17your SIPs, stocks or gold-related queries,
30:19then please do send them to us on the number that's flashing right on your screens.
30:22And we'll be happy to address them with our top market experts on the show as well.
30:26With that, it's a wrap.
30:27Stay tuned with us on India Today.
30:29And for the market coverage, join in at 9 a.m. tomorrow morning.
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