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Expert believes global investors continue to see India as an attractive and diversified long-term market, which has supported overall sentiment.
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00:08good afternoon dear viewers you're watching the business today's show with me sakshi batra this
00:12is where i get you all the stock market closing action on the lal street but first up let's take
00:16a look at what's hot in the corporate and the financial world markets recover from the day's
00:24lows as hopes of diplomacy emerge after iran's foreign ministry has said it has received proposals
00:29from the mediators in the conflict with the u.s now also looking at the same
00:40sensex cuts losses to 400 points near to 77 700 now while the nifty is also down 90 points to
00:47trade
00:47at 24 250 far more gains while financials remain under pressure
00:56oil sensitive stocks recover as brent crude slips below 89 dollars a barrel oil marketing companies
01:02ioc bbcl hbcl along with aviation stocks interglobe aviation have trimmed the losses as crude oil prices
01:09ease
01:13private banking stocks are under pressure after mixed june quarterly earnings htfc bank is leading the
01:18decline after disappointing on the margins front while icica bank access bank and kotak mahindra bank
01:24are also trading lower amid profit booking and weak global queues
01:33prime minister narendra modi says india remains the world's fastest growing major economy despite the
01:40west asia conflict disrupting supplies of crude oil petrol diesel lpg fertilizers and even chemicals
01:46he's also said india has clocked in 7.7 seven percent growth despite the global headwinds
01:56and india has approved its first dengue vaccine with japanese drug maker takira's q denga receiving
02:03the regulatory clearance the vaccine protects us against all four dengue virus strains and can also be
02:11administered without prior dengue testing
02:23we'll straight away look at how the markets are trading at this point in time viewers we are off the
02:28low point of the session so you have seen some pickup take place and that's on the back of improved
02:32performance of the psu banks in today's trading session 2.8 percent rally coming in on the psu banks
02:38that's pulled up the nifty from the low point even though the nifty continues to remain into the red
02:43right now but the psu banks are hovering near the high point and that's lifted some sentiments
02:47pharma index also up by one and a half percent is supporting the sentiment today we're also looking at
02:52metals oil and gas infrastructure stocks and even broader markets with slight gains in the session
02:58but the heavyweights are in fact pulling down the markets capping the kind of an upside that we have
03:03you're looking at the private sector banks post the earnings where there is a sharp downturn on the
03:09likes of htfc bank access bank kotak mehendra bank these are the stocks that are dragging the private
03:14banking index down 2.3 percent in the session today you also have the financial services autos and even
03:20it pack that is declining in the session let's actually pull up the top winners and the top laggards
03:25in the session today for all of you to see where the money is moving well on the nifty where
03:30the big move
03:31can be seen um there are names like trent power grid sipla uh all from various sectors that are up
03:37anywhere between one to three odd percent ntpc is up jsw steel post the earnings and you're looking at
03:42bharati airtel also up by one and a half percent odd it's iltech sbi and hero motocop are the other
03:47stocks that are up and about by one one and a half odd percent on the declining action no surprises
03:52axis bank top loser 5.5 percent lower htfc bank five percent cut there maruti suzuki also down by two
03:59odd percent so the auto pack is also in the slow lane today you're looking at kotak mehendra bank
04:03geo finance and even infosys declining a tad bit let's actually welcome our guest on board we have
04:08sneha puddar the vice president for research analyst at motilal osval financial services joining in
04:13welcome to you sneha good to have you your sense of how are you looking at the markets when it
04:18began
04:19it looked pretty difficult and somber in the markets but soon uh the markets have picked up some
04:24pace and we are looking at 24 200 now seems that will be protected right now and we have covered
04:30up
04:30almost what 100 100 points of a loss in the session today already on the nifty your sense of where
04:36are
04:36we headed uh hi good afternoon uh so i see the markets uh currently uh is showing a lot of
04:43uh resilience
04:44uh despite the uh the renewed tensions between the uh us and the iran and uh the crude prices have
04:51uh climbed really uh sharply uh to almost 91 levels so they have cooled off a little uh but then
04:57despite
04:58uh this renewed tension uh the indian markets are showing uh quite a good resilience and uh i believe
05:05this is uh largely like you know one of the reasons can be attributed to uh solid fundamentals of the
05:12indian economy and the overall earnings season which has kicked off last week uh so though it has
05:18been a mixed pack but still uh the numbers has been uh quite a decent with few uh companies really
05:25outshining in that uh space uh so i believe that is giving some sort of uh confidence to the uh
05:31uh to
05:32the uh market that uh the uh in uh overall q1 numbers uh should be uh quite healthy and uh
05:38that will
05:39provide some sort of like you know uh the support to the uh markets also if you look at the
05:45fi activity
05:46that has kind of a softened a little so the aggressive selling is not being witnessed with
05:52buying seeing on some of the days as they realize that the other markets are too concentrated
05:57uh for long-term investment while the indian market is well diversified so probably these could be few
06:03reasons uh which is uh keeping the indian market uh uh quite resilient sure all right uh sneha we'll
06:11come back to the key moving parts in the markets but there's a breaking news coming in viewers
06:15uh with respect to the parliamentary news that's coming in no proposal to privatize the psu banks
06:20that's what the finance ministry has uh said as far as the parliamentary proceedings are concerned
06:25they've also talked about no plan to scrap the ltcg uh tax on equities the government's written
06:30reply has come in as far as the parliament is concerned uh they've also talked about how the
06:35government is collected 2.01 lakh crores via the equity ltcg in fy25 and two lakh crores capex
06:41loans earmarked for states in fy27 those are the details that are coming in out of the parliament
06:46right now this is as far as the written uh reply uh in parliament is concerned for the government on
06:52various queries that have been raised so far no proposal to privatize psu banks also no plan to
06:58scrap the ltcg the long-term capital gains tax on equities it is here to stay that's what the
07:03government has said in its written reply in the parliament the government has also talked about
07:07how over two lakh crores have been collected via the equity long-term capital gains tax for fy25
07:14that goes on to show how the tax collection remain buoyant and investors uh preference on equity as
07:19an asset class is constantly growing they're talking about capex loans have been earmarked for states
07:24for fy27 as well those are the details coming in let me quickly look at um you know also some
07:31of the
07:31other key uh stocks and uh sectoral impact that we are looking at into the markets neha will take
07:36your view on the private sector banks today although uh that's where um the pain has emerged since
07:42morning uh most of these companies heavyweights htfc icici bank access bank otak all of them reported
07:49their earnings uh there's been a clear contrast between what icici bank uh has reacted in terms of
07:55its uh earnings report today the index the stock is up by over one percent but all the others have
08:00declined in this session we are seeing also htfc bank uh further decline after having consolidated
08:05for a far too long period as well and there have been a lot of debates around as to every
08:10quarter we
08:11believe the things will bottom out the management commentary points out to so but the stock price
08:15has taken a massive hit there how are you looking at these private sector banks uh so sakshi basically
08:22uh like you know and among all the four uh large banks that reported the numbers over the weekend
08:27uh icica bank clearly stood out and uh in fact if we look at uh like you know uh they
08:33have been the
08:34uh consistent uh uh i mean they have been consistently delivering on the numbers quarter after quarter and
08:40it's not a just story of few quarters but if we look at the long history as well they have
08:45been
08:45consistently like you know steady with their numbers and even this quarter uh they continue to
08:51outperform the entire private sector space now when we talk about the other three banks uh so um
08:57in case of other three banks while the credit growth was quite a decent uh the main pain point was
09:03uh the
09:04asset quality uh deteriorated a little and the nims uh the pressure was clearly seen across the three
09:12uh banks and going ahead uh though the banks are talking about that the uh nims would start improving
09:19from here onwards this is more of a seasonal uh play um but uh it has to be really uh
09:25like you know uh
09:26seen whether uh they are actually able to uh revive it or the pressure still continues because the cost of
09:32borrowing for these three banks are still continuous to remain a little uh elevated though kodak was
09:39comparatively better off uh but uh yeah the pain point still continues for these three would you uh
09:45uh you know have a buy rating on any of them post the earnings would you advise investors to buy
09:50the dip that we are seeing on the banks see i mean i would clearly uh like you know the
09:56first
09:56preference stands out for icici bank so if one has to look at one bank then it's icici otherwise htfc
10:03can be seen but then it one has to take a very long-term view because over next two years
10:09their
10:09high priced borrowings uh will uh like you know uh get mature post which the uh like you know in
10:16a
10:16phased manner the cost of borrowings will gradually come down for them but then it's a long period of
10:21two years which i'm talking about so still uh some pain a lot of patients to be had yes uh
10:28well we'll
10:28focus now on the pharma story as well viewers um as we highlighted a major breakthrough in india's first
10:35fight a fight against dengue is being seen the country's first dengue vaccine has received
10:40regulatory approval uh with the takeda's cute denga uh getting the green light now what does this mean
10:45for patients uh the vaccination plans ahead and uh the other vaccine makers in the pipeline as well
10:52we'll try and understand all of that with my colleague need to chandra sharma who's been standing by
10:57with more details need to first up um big win uh against the fight of dengue uh we're looking at
11:02this
11:02q denga's um you know of course participation coming in does this approval pave the way for
11:08other dengue vaccine makers in india as well yes absolutely sakshi this approval is significant not
11:14just because the q denga is the first dengue vaccine to be cleared in india but also because it
11:21establishes a regulatory benchmark for the entire category so until now uh what we know there was no
11:28approved dengue vaccine in the country despite india carrying one of the world's highest dengue
11:34burdens so with the regulator approving a vaccine backed by extensive global clinical data it is
11:40expected to boost confidence among other developers as well and it will also uh you know it could help
11:45accelerate regulatory discussions for vaccines that are already under development and at the same time
11:51each new vaccine will still have to you know independently demonstrate its safety efficacy and quality
11:58before it can actually receive approval going forward sakshi so neetho which companies are next in
12:04queue and how competitive could this market become now uh yes so among other indian companies if i i
12:11ought to talk about the most advanced program is from panacea biotech which is developing an indigenous
12:17dengue vaccine in collaboration with the indian indian research body which is indian council of medical
12:24research so the candidate candidate is the drug candidate is uh sorry vaccine candidate is currently
12:30in the phase three clinical trials and beyond panacea a number of indian vaccine makers have expressed
12:36interest in degi vaccine development although most of uh them are still at the earlier stages of
12:42research so what industry experts have said that and they believe that the approval of qdenga could
12:48encourage greater investments in this space because india represents one of the world's largest
12:53potential markets for dengue vaccine as i said so over the next few years we could also see both
12:59multinational and domestic companies competing not just on efficacy but also on pricing manufacturing
13:04capacity accessibility and particularly if the government eventually you know considers including
13:10dengue vaccination in the public health programs actually absolutely thanks a lot neetu for getting
13:15us all of those details there a quick word from sneha how are you looking at the pharma story
13:20developing from here um now after the weight loss drugs this is the other major uh you know segment
13:26that most of the pharma companies will be probably seen entering both domestic and international neetu
13:31points out panesha biotech is the first one after qdenga that she expects to be in the queue and of
13:36course
13:36the rest of them will also make a beeline how do you see this as an opportunity for the pharma
13:40story
13:41and uh any key stocks on your data so sakshi uh definitely this is a big development and this uh
13:48development really reinforces the india's uh growing status as a global hub for the uh vaccine
13:55manufacturing so uh basically like you know by leveraging the uh local manufacturing through
14:00various uh partnerships uh the uh companies can actually like you know capitalize on this big
14:07opportunity uh currently uh uh the uh i mean the players uh the listed players which can benefit is
14:13uh panacea uh but then like you know if we uh take a uh bigger picture then uh zidas life
14:19science could
14:20be another a major company which could benefit in the future uh because they uh they have a huge r
14:26d
14:26pipeline and they have various innovative vaccine technologies so probably they could be uh the ones
14:33uh like you know who could really capitalize on it and probably another name which i can uh
14:38think of it uh posters is gland pharma and singi uh who could also uh be like you know uh
14:44at a later stage look at participating in this all right we can all pull up those stocks right
14:49there which are on top of the radar for sneha amidst this and she believes these are the companies
14:54that could probably be uh the first ones to really tap this market uh going forward from here so
15:00we'll keep an eye out on these companies as well let's also focus on of course how uh the ethanol
15:06story has been developing and we've been getting you all aspects there on the program on uh business
15:11today as well viewers it seems like india may soon also see a new fuel option in kitchens now
15:17reports indicate the government may be working on a policy framework to probably introduce ethanol as a
15:24mainstream cooking fuel now that could aim to cut dependence on imported lpg and utilize the
15:30country's growing ethanol surplus as well what could this mean for households for fuel companies india's
15:36energy security let me go across to my colleague aishwarya patul for getting us more details now
15:40uh well aishwarya first up it was uh the cars that were being seen and vehicles that were seen
15:46as the first point where a lot of uh you know flex fuels biofuels uh you know have already started
15:53to
15:53get introduced uh to cut our um you know export usage of fuel or dependence on fuel now it's going
16:00to be kitchens we have actually seen uh both our dependence on heavy crude oil imports and even lpg
16:07imports as well from the recent uh you know west asia crisis uh what are you hearing from your sources
16:15well this is just an initial report and what it's suggesting is that the ministry of petroleum
16:21and natural gas may be contemplating introducing ethanol as a fuel for cooking as well uh during
16:29the west asia crisis alternative uh methods of cooking was suggested by the petroleum ministry as
16:36well uh electronic cooktops even uh you know some coal usage was also uh something that was that was
16:44told by the ministry during this period so what we're hearing is that around the september maybe if the
16:50plan goes well and this may be just on the drawing board as of now but if that fructifies and
16:57is uh
16:58being able to execute in indian uh households as well in the kitchens as well uh is something that the
17:06ministry is looking at uh is what this report suggests uh now there are some stuffs uh that are ethanol
17:14based in the market already globally present but we'll have to see which companies are really working
17:20towards uh supplying this kind of uh cooking fuel and and stubs in the market going forward as well we'll
17:28keep an eye on uh if this does uh reach our homes and kitchens as well absolutely that's a very
17:35uh you
17:36know big development if it really comes true um you know that we will have to track very very closely
17:41with ashwarya getting us all of those details thanks a lot for that initial report um you know
17:45ashwarya to get us uh all of those details as well sneha um how would you look at this expanded
17:51universe
17:51that ethanol is uh you know targeting at least the government is targeting with ethanol at this
17:56point in time it was to be the auto sector initially now it could be the kitchens and uh how
18:01would you
18:02look at of course one the impact on um you know the oil marketing companies uh the gas um you
18:10know
18:10companies as well and how should one be really looking at that entire sector if one is a long-term
18:15investor uh see basically uh it's a good uh uh initiative which the government is uh thinking
18:23on those lines as uh like you know uh so currently we have about uh 20 billion liters of annual
18:30ethanol
18:30uh capacity and uh another four billion uh liters um capacity will uh come on stream very soon so uh
18:39that makes us a good 24 billion liters of uh capacity of which uh roughly seven billion liters uh remains
18:45unutilized uh so uh there's a good way of utilizing uh those uh idle seven billion liters of capacity uh
18:54and
18:54uh moreover this will reduce the dependency on the um on the import of the uh fuel from the uh
19:01uh
19:02global markets um especially uh given the uh current geopolitical situation so uh uh keeping that in
19:09mind it's a very good step uh but uh what really needs uh uh from the government side is they
19:15they'll
19:16really have to do a very good balancing act because there could be years uh like you know like the
19:21one
19:21in 2006 where the monsoon is a little weak uh so then the sugar production could take a hit so
19:27in
19:27those scenarios how they would uh like you know balance the situation that that is one really key
19:32step the government really needs to uh think over uh but this would be a good step and would benefit
19:38the omc companies uh definitely uh so um i mean uh but still my suggestion would be to avoid these
19:46regulated uh sectors from the long-term trading perspective because there's so many regulating uh
19:52risk involved in these sectors uh that uh in the long term uh somehow the uh like you know it
19:59gets
19:59neutralized absolutely i will focus on some of the other stocks in a bit but uh you know earnings focus
20:06continues also on the business today show uh we're going to be also sharing with you what happens with
20:12the the technology companies that are reporting their numbers tata technologies in fact has come
20:17out to talk that how they believe its recent large deal wins are more than just isolated successes the
20:24company says its hundred million dollars five-year partnership with teneco reflects a broader shift
20:30in the client demand towards end-to-end engineering capabilities in fact boren harris the ceo and managing
20:36director for tata technologies has said the company's flagship bmw joint venture has strengthened its
20:43credentials in the global engineering services market and expects future growth to be driven by
20:48customers looking for partners that can take complete product ownership let's listen into what
20:54he had to say on the sidelines of the earnings conversation i think that that is going to be
21:00representative of similar deals in the future you know i think one of the things that um that we
21:06have uh have really celebrated in the last couple of years is the joint venture with bmw i think that
21:13the uh the joint venture is really the flagship to for how to run a gcc in uh in india
21:20and i think the
21:22halo effect of uh of that transaction is uh is now starting to inform other types of opportunity and
21:29certainly the decision that teneco made was very much um in support of uh of building something that
21:37is similar to what we built for uh for our friends in uh in munich we've had a relationship with
21:43uh with
21:43teneco um since the uh since the pandemic we started to work with teneco in 2020 i think they've been
21:51very pleased with the relationship and the quality of uh of service that we've uh we've delivered so
21:56there's real confidence in uh in our company and uh and i think the uh the uh the proof of
22:02that is in
22:03the uh the award that we uh we secured but i i i think one of the things that informs
22:09our confidence
22:10about the future and about the fact that the momentum that we've established is not just a
22:15one-off is that that's just one deal you know in the first quarter we celebrated a number of full
22:23vehicle programs that we were awarded one with a japanese uh oem that we're now starting to uh
22:29to scale and uh and i think what we were going to see in the engineering services market in the
22:35future
22:36is this bifurcation of companies that can take the full responsibility for complete product and those
22:44organizations that are going to restrict themselves to just delivering services and we believe
22:48that demand in the future will increasingly gravitate towards organizations that can take on
22:56the uh the responsibility for key components of the value chain or key parts of the product portfolio
23:03all right viewers let's focus on the markets closing we are ending the session at 24 241 we recovered
23:11most of the losses since morning but and we managed to end near the high point of the session still
23:17into the
23:17red 92 points of cut coming in for the nifty today 0.38 percent lower at 24 241 the nifty
23:24bank that's
23:25where the pain emerged truly but the index has managed to recover some of that pain too 0.9 percent
23:31of
23:31an uh downtick that you could see on the nifty bank largely led by the private banks today uh most
23:37of the
23:38contribution has actually come in from hdfc bank out there that declined by over five percent uh leading to
23:44a lot of pain on the private sector banking space of course along with it we saw pain in axis
23:50bank
23:51kotak mahindra bank these are heavyweight private sector banking names that declined post their
23:56quarterly earnings numbers and some nim pressure that we have seen today um although we've seen
24:02smart moves on some of the stocks uh today like mrs vector's food 11 and a half percent higher remember
24:08since last week the stock has been on our upward move uh it's one of the top bovers within the
24:12midcap
24:12index index that managed to pull up about 0.6 percent higher some distilleries about 20 percent higher
24:18within the broader markets those are the big bang moves that we've seen in the session today that
24:22watch intan pharma another speciality chemicals name that moved up and himadri chemicals also about
24:273.8 percent higher these are the stocks that truly moved in the broader markets and led to a lot
24:33of gains
24:33today uh we could see some of these stocks contributing to the overall nifty um you know midcap index as
24:40well as the small cap index as well but uh largely it's been the losses on the banking space on
24:46the
24:46auto space today that declined in the session let's start uh taking some of your queries now with our
24:51guest neha as they have we have a first question from our viewer uh preeti shukla from kanpur asking
24:57you will the pharma rally continue over the next two to three months and can i continue to invest in
25:03uh so yes the pharma rally uh seems to uh continue because uh the numbers expected from the pharma
25:10companies are expected to be uh quite good uh and overall we are witnessing a structural change in
25:16the industry uh wherein uh the uh growth uh seems to be a structural uh growth opportunity emerging in
25:23the uh in the name of cdmo uh so um india is emerging as a manufacturing hub and does uh
25:29the uh domestic
25:30uh growth story especially for the pharma companies is a very resilient uh so one can really stay
25:36invested uh from a long-term uh point of view and especially focus on the uh companies which have a
25:42good mix of uh domestic uh plus a global growth opportunity we'll take the next question this one
25:49is from raman jain from jaipur who wants to know about private banking stocks he's been holding them in
25:54profits but should he now look at booking profits looking at the current decline how would you advise
25:59him uh so in case of private banks among the large cap banks i would just stick with icsa bank
26:06and avoid
26:06the other ones but among the uh mid-sized private banks uh some of them really hold a lot of
26:13promise
26:13like for example a federal bank is doing really well and the numbers that came out has been a very
26:19very
26:19robust uh in case of arville bank it's uh it's gradually turning around the turnaround will take a
26:26little time but uh that turnaround is uh visible especially pose a fresh fund infusion from emirates
26:33and uh that's probably from second half their numbers should start reflecting that soon so
26:38it's a high risk bet but then uh one can uh depending upon the risk appetite one can take the
26:44bet uh from a long-term point of view so these two banks really stand out among the mid-sized
26:49banks
26:49okay there's a another uh earnings that have just recently come in and that's ultra tech cement from
26:55the cement pack this is the only nifty company that reported its numbers and you could clearly see
27:01india's largest cement maker reported the june quarterly numbers that have exceeded the street
27:05estimates as far as the revenue operating profit and the net profit are concerned as well you're looking at
27:10a 17 percent year-on-year consolidated net profit growth to 2600 for crore rupees uh for the company we
27:16are also looking at revenue that's risen by almost 16 percent from a year ago period to 24 648 odd
27:23crore rupees
27:23as well and ebitda has seen a jump of 13.7 odd percent the margins have come in marginally lower
27:29at 20.4
27:30odd percent coming in but the sales volume for uh the company has seen a 13.1 percent year-on
27:35-year growth
27:36to 39.2 million tons a quick takes now before we let you go on ultra tech cement and the
27:41cement sector
27:42uh see the uh cement uh i mean ultra tech cement has come out with a really good set of
27:48uh numbers it
27:49has uh beaten our estimates uh and overall if i talk about the cement industry uh what we are uh
27:56witnessing is uh the demand uh is expected to pick up from the second half of uh fi 27 as
28:02uh pose the
28:03monsoon uh as uh the uh india's uh capex story uh continues and the government's uh investment on the
28:10infrastructure side continues to gain a momentum so the demand will definitely pick up uh moreover the
28:16uh the prices uh which were not sustaining in the first half uh the chances are with the uh good
28:22uh
28:23demand uh uh pickup the uh prices would sustain in the second half and probably the price hacks can be
28:28taken and on the raw material side where a lot of pressure was seen uh raw material uh not uh
28:35pressure
28:35uh the price pricing pressure seems to be easing off and probably uh that would also help in operating
28:41leverage from the second half so second half seems to be a really good picture and turnaround time for
28:46these cement players thanks lots neha for getting us all of those uh you know insights as far as the
28:51markets are concerned pleasure to have you with us viewers in case you have any questions about your
28:55investments then write in to us on the number that's flashing on your screens but before we let you go
29:00and the latest edition of the business today magazine is already out under the stands now the
29:05issue shines the spotlight on india's dairy boom as the world's largest milk producer india is now
29:10betting big on value-added products from cheese and yogurt to protein rich and premium dairy offerings
29:16to power the next phase of growth and as consumer preferences also evolve organized dairy brands
29:22are steadily capturing market share from the unorganized sector driving higher margins and reshaping
29:29the industry's future go grab your copies on the stands and in case you want to order in you have
29:34blink it where you can definitely order in the next edition of business today
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