- 1 hour ago
Indian equity benchmarks reversed early gains to trade sharply lower as elevated crude oil prices and rising global bond yields weighed on market sentiment. The Nifty slipped below the 23,200 mark while the Sensex registered steep losses, with real estate and metal stocks leading the downturn even as select information technology shares bucked the trend. Meanwhile, the National Payments Corporation of India held discussions regarding Merchant Discount Rate charges on merchant UPI transactions above 2,000 rupees following a Finance Ministry notification. In the corporate domain, the Reserve Bank of India filed a caveat in the Bombay High Court ahead of an anticipated appeal by Tata Sons seeking exemption from mandatory listing norms, triggering a rally in several Tata Group shares including Tata Chemicals and Tata Investment Corporation. The bulletin also examined market trends, crude oil volatility, and the upcoming National Stock Exchange initial public offering.
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NewsTranscript
00:09Hello and welcome. You're watching the Business Today show with me, Sakshi Batra.
00:12This is where I get you all the stock market closing action on the LAL Street.
00:16But first up, let's take a look at what's hot in the corporate and the financial world.
00:23Markets reverse early gains and trade sharply lower as rising bond yields and oil prices
00:28weigh on the sentiment. Sensex falls 600 points to trade near 74,200 mark,
00:34while the Nifty slips 200 points to trade at about 23,200 now.
00:40Metals, real estate stocks decline, while IT stocks buck the trend with strong gains.
00:47India's crude oil basket surges to $129 a barrel near its highest level since April
00:53as West Asia tensions push oil prices higher.
00:57Brent crude rises 2% to near $108.
01:04Rupee under pressure is down. 40 Pesce now to trade at 95.94 against the dollar.
01:11Elevated crude oil prices.
01:12West Asia tensions are again weighing on the currency,
01:15while Federal Reserve's rate hike expectations are adding the pressure.
01:23Reserve Bank of India's caveat in Bombay High Court over Tata Sun's listing.
01:27After rejecting its CIC exit request, Tata Stocks rally with Tata Chemicals up 20%,
01:31Tata Investment 10% higher and other Tata Stocks gain about 1-4% in trade.
01:40And here, India board meets in Mumbai to discuss the incoming CEO,
01:45Jevold Gibramariam's salary as well as the other matters.
01:48Current CEO Campbell Wilson stepped down this month.
01:52Will Gibramariam also set to take charge later this September?
02:04We'll start off with the very crucial news coming in.
02:07Viewers, this is with regards to the NPCI meeting on UPI transaction fee today.
02:13Banks, payment firms are going to be discussing the UPI charges in this meet.
02:17The fee is only on merchant payments of over Rs. 2,000.
02:22Remember, the NPCI meeting will happen after Monday's Finance Ministries notification.
02:28The NPCI is likely to exempt person-to-person transfers.
02:33In fact, we also have my colleague Surabhi with us to break down all the details with us as well.
02:38Surabhi, first up, there was a whole lot of confusion at the Rs. 2,000 limit
02:43when it comes to the UPI transactions.
02:45First up, the government has clarified that this Rs. 2,000 limit
02:51is not going to be impacting consumers like you and I.
02:55But give us an understanding of what is the NPCI going to be discussing today?
03:00Who is going to be paying the fee above Rs. 2,000?
03:05So, yesterday, last evening, the Finance Ministry notified the provision for MDR on UPI
03:12and Rupee debit cards. For UPI transactions above Rs. 2,000 will have an MDR.
03:18And the next steps now have to be decided by the NPCI's UPI and Services Steering Committee.
03:25This includes banks, some payment players, and industry bodies,
03:30including the Payments Council of India and the IBA.
03:33So, the issues before them now is that, you know,
03:36what will be the rate at which MDR is to be levied?
03:39This is likely to be around 0.4% of the transaction value with a certain cap in place,
03:46maybe, say, Rs. 100 or Rs. 200, which was also there in the past.
03:51Second issue which they will have to look at is what kind of merchants will be impacted by the MDR,
03:57whether it will be all merchants in case you're doing, like, a transaction above Rs. 2,000,
04:02only larger merchants. And the third issue that they will have to decide on is how will this
04:08fees then be split between the payment industry. This would include the bank,
04:13the payment aggregator, as well as the payment app.
04:15So, what would be the revenue sharing model between these three?
04:18These are the three key issues which the committee will discuss today.
04:23And it's expected that some sort of decision and announcement will come either today or in the coming days.
04:30Absolutely. But one thing remains to be clear, I think, Surabhi,
04:34that the days of completely free UPI transactions are to be over pretty soon.
04:41Whether it's the consumers or whether it's the merchants,
04:43somebody will have to pay the fee for these transactions.
04:47It cannot go on for eternity that UPI payment system remains free at all accounts.
04:53Is that right, Surabhi?
04:54Oh, absolutely. Even now, since 2021, UPI payments were exempt from MDR.
04:59The payment cost was actually being borne by the banks and the back-end infrastructure providers.
05:07So, industry estimates put in at, you know, anywhere around 18,000 to 20,000 rupees was still,
05:1320,000 crore rupees was still going into this, you know, which is now expected will be taken through MDR.
05:19And the idea with the MDR is that it will help, you know, further the infrastructure needed for UPI and
05:26digital payments
05:27so that it can become more prevalent, say, even in tier 2, tier 3 towns.
05:33Absolutely. Surabhi, thanks a lot for getting us those details.
05:35Today's meeting is going to be crucial at the NPCI.
05:38And we will await the details of what comes out from this meeting in terms of the quantum of the
05:43hike
05:44that we are looking at in terms of what fee will be implied and also, you know,
05:50what will be the categories in which this fee will be applied to,
05:54as in what categories of merchants will have to incur the MDR at large as well.
06:00So, two details are what going to be something that the markets will be watching out for tomorrow.
06:05We are already looking at some of the payment-related stocks already see some impact today,
06:11like the likes of Paytm and MobiQuick.
06:13Both are down by 3.5% to 4% amidst this uncertainty.
06:17But let's also welcome our guest on board, Abhishek Basu Malik,
06:21the co-founder and fund manager at Srirama Managers PMS is joining in.
06:25Welcome to you, Abhishek. Good to have you with us.
06:27Well, the big story that we've started off with is the entire confusion over the UPI payment
06:33or the MDR fee that will be applied over the 2,000 rupee mark.
06:38We are given to understand that the NPCI meeting will happen today,
06:42that we'll decide on two of the most important accounts.
06:45Consumers are likely to remain, you know, not impacted with this kind of a fee hike
06:51because any person-to-person transaction is likely to remain free
06:54and consumers are not likely to pay this MDR.
06:58But the system at large will have to see which are the parties and the stakeholders
07:02that will go on to absorb this shock right there.
07:05But how do you see this system evolving now from a free system to a paid system
07:10in some or the other way?
07:11And do you think at large accounts, will consumers at all be impacted?
07:20So I think, you know, that there is going to be some initial resistance from people
07:27if they are asked to pay, you know, some charges,
07:32because obviously you've enjoyed something for free for a long period
07:37and then you're asked to pay, there's this problem.
07:39But in general, if it's a very nominal amount above 2,000 or above a cutoff,
07:45like 2,000 has been made a cutoff and if they're charging a very nominal fee,
07:51I think it may be a good option for the long-term viability of
07:57or even expansion of UPI as a payment mechanism.
08:02Absolutely.
08:03Let's in fact focus on these stocks.
08:06Do you think any impact on the stocks that should be watched out for
08:10on the likes of Paytm, Ubiquik?
08:12They're showing a knee-jerk reaction today.
08:13But is there in any way that such fintech players, payment companies
08:18might get impacted because of a fee that might be implemented?
08:21Will there be any impact on the business that they do?
08:26Not that I understand, you know, as of now,
08:29because anyway, they were not earning anything through UPI.
08:33The only thing, probably the sentiment negative is because
08:37people are thinking that there might be an impact in overall usage.
08:41But if the fee is very nominal, I am not sure if there is going to be any impact
08:47because we've seen that paying through UPI has sort of become a practice
08:53or it's become a habit.
08:55So, you know, I don't think it's going to change all that much.
08:59So, medium to long term, I don't see it as a negative for any one of these.
09:04Maybe, in fact, a slight positive if in this whole,
09:09they end up making a little bit of money.
09:12Let's also look at the markets, viewers.
09:15We have slipped even further.
09:17225 points of a cut now on the Nifty.
09:1923,172.
09:21There's been a sharp fall in the markets.
09:23Remember, we were hovering at around 23,300 for the large part of the session today.
09:28But towards the second half, we have seen a stiff, you know,
09:31impact on the markets across the board.
09:33Remember, in the morning, there were two sectors that were holding up about,
09:37you can see IT stocks that were holding about 3.5% to 4% higher.
09:41That gain has reduced to just 2.3%.
09:44That's the lone gainer now among the sectors today.
09:46If you look at the IT sector also, it has seen a decline from the morning gains.
09:51FMCG that was hovering higher for the largest part of the session
09:54has also slipped into the red.
09:55All the other sectors are down.
09:56At least 5 to 6 sectors are down by over 2% right now.
10:00Talk about metals, talk about PSU banks, infrastructure,
10:03even the broader markets like mid-caps and small-caps
10:06and the real estate pocket.
10:07All of them are down.
10:08Real estate is, in fact, the biggest laggard right now.
10:113.5% lower in the markets.
10:13And look at the India wigs.
10:15There's been a sharp spurt there that indicates to a lot of fear
10:19that is again trickling back into the street.
10:219.7% higher at 13.4 levels.
10:25India wigs is at the highest point of the day.
10:27Of course, there are two big concerns there.
10:29One, the elevated crude oil prices now hitting $108 a barrel
10:33and the rupee that constantly continues to weaken as well.
10:37Abhishek ji, how are you looking at this sharp fall in the markets
10:40caused by the external factors now?
10:44See, I think the last couple of years, most of the time,
10:47the market has fallen because of external factors.
10:51Now, I think a couple of things, like you said,
10:54the rupee is a major factor.
10:58I think the challenge of, again, the war flaring up
11:03and food going through the roof again is becoming a challenge.
11:09I think we are now close to $110 per barrel today.
11:14So that's another worry.
11:17Bond rates in the US are going up.
11:19It's going up in Germany, Japan, most of the developed world.
11:23So that's another dampener for equity prices.
11:27So all of this put together, I think,
11:29is putting pressure on the markets.
11:30It's also the fact that, you know,
11:33Indian investors have seen some bit of,
11:36especially in the mid and small caps,
11:38some bit of run up in the last couple of months.
11:41I think now people are becoming jittery
11:43and trying to book profits, you know,
11:46whatever they have in that.
11:47So all of this is sort of coming together
11:50and creating this kind of a pressure.
11:53If you see a crossboard, especially in the mid and small caps today.
11:58Some of the subsectors like the Defence Index has lost,
12:01you know, further about 6% in the session today.
12:04Sharp cuts being seen across the board, viewers.
12:06So we'll continue to watch out for what's happening in the markets through and through.
12:10But let's also focus on the Tata Group that's been in focus since morning.
12:13Now, a report is indicating that the Central Bank has filed a caveat
12:16in the Bombay High Court ahead of the expected appeal by Tata Sons.
12:20The holding company of Tata Group is seeking exemption from the mandatory listing.
12:24The caveat now ensures that the RBI is headed before the court
12:29and passes any order on the matter as well.
12:32Meanwhile, the stocks of the seven Tata companies
12:34that hold about 11.6% stake in Tata Sons
12:37have been shining on the trade today.
12:40You can clearly see Tata Chemicals about 20% circuit.
12:43Tata Investment Company also gaining about 12% in trade,
12:47while the others have also risen by 1% to 4%.
12:49In fact, shares of Shapurji, Palonji Group companies
12:52have also spiked in anticipation of any kind of value unlocking there.
12:56But Krishna Kopalan, the Executive Editor at Business Today
12:59is now joining in to share with us more details on the same as well.
13:03Krishna, you know, given that now what is happening
13:08as far as the RBI move is concerned,
13:10give us an understanding of what it means for Tata Sons,
13:12the upcoming anticipated listing
13:14and what should investors gauge as to what's happening now?
13:18Hi, Sakshi.
13:19It's quite clear the RBI obviously anticipated
13:21the fact that Tata's might challenge this
13:23and one, expect that to take place.
13:26They've not really been in favour of the listing of Tata Sons,
13:29most notably Noel Tata, the current chairman of Tata Trust,
13:31that holds a two-third stake in Tata Sons.
13:34So, to my mind, I think they will challenge it
13:36and they've been used.
13:37And if you're correct, a whole host of senior execs from the Tata Group
13:41have been writing articles in media
13:44specifically seeking favourable exemption
13:46from a proposed listing of Tata Sons.
13:48So, I don't think this issue is going to die down that quickly.
13:50And even if the Tata's decide to challenge it,
13:52we're speaking of a long, drawn-out battle.
13:54I don't see the listing take place right away
13:56if the Tata's decide to check,
13:57because then it can go to the High Court, Supreme Court,
13:59and then it's a pretty never-ending excess beyond that.
14:01In terms of the market today,
14:03I think the fact that the potential unlocking
14:05has obviously excited a whole host of people
14:06who invested in companies like chemicals and consultancy services
14:10expected, but I think the upcoming meeting,
14:13the board meeting, the other of Tata Sons,
14:15hopefully should iron out a few things,
14:16but it's quite clear it's going to be a long, drawn-out battle
14:18from where it's position today.
14:21Okay, fair point.
14:22We'll continue to take more updates from you, Krishna,
14:25as and when we keep on getting more developments around the same.
14:28This is a hot space and one has to constantly keep an eye
14:31on what's really happening.
14:33Both sides making their efforts.
14:35The Tata Group as a whole are trying in any which way possible
14:38that Tata Sons listing can be avoided,
14:40but on the other side, the RBI has now gone ahead
14:43and talked about that they have to be heard first
14:45before they go ahead and look at any kind of appeals
14:50that are made by Tata Group
14:52against the steps towards Tata Sons listing.
14:55Thanks a lot, Krishna, for getting us all of those updates
14:57and keeping an eye out on all the developments there as well.
15:00Shifting focus to what's going to be busing biggest
15:03on the street this week,
15:04and that is the National Stock Exchange upcoming IPO.
15:07The CEO and MD has now justified his decision
15:11not to offer additional shares of the exchanges
15:13in the upcoming IPO.
15:14This is what Mr. Ashish Kumar Chauhan had to say
15:17about profitability and the shareholder sentiment of NSE.
15:20Let's listen in to what he had to say.
15:23Currently, we are going with 5.11%.
15:25All the shares are from the existing shareholders.
15:31No new shares are being issued.
15:33The reason being NSE is highly profitable.
15:35It ends up giving a huge amount of profits
15:39and gives most of that free cash flow profits as dividends,
15:44and that's why it doesn't require money.
15:47So, we requested some of our existing shareholders
15:49to give us shares for completing these formalities of listing.
15:55Going back to Abhishek.
15:57Abhishek, what's the anticipation that you're looking at
15:59around NSE IPO?
16:01One, of course, we do know the price span,
16:041700 to 1785 now.
16:07It has been the most anticipated IPO
16:11of the last decade, if I can say.
16:14So, the talks and the buzz started a decade ago.
16:17Finally, NSE is going to be getting listed.
16:20What does it mean for India's, you know,
16:25fastest, largest derivatives exchange
16:28to go public for investors at large?
16:31Those who missed out on an opportunity
16:33of participating in BSE IPO,
16:35what should they remember
16:37when they look at NSE IPO coming in?
16:40Firstly, I think, like I always say,
16:42when you have a large company coming to the market,
16:47is that it, you know, gives,
16:49it improves the selection of stocks available, right,
16:55for investors.
16:56So, that's always a good thing.
16:58You always, you know, welcome one more good company
17:02that you can invest in.
17:03And NSC, BSE, MCAX,
17:06these are all, you know, exchanges
17:07which are sort of monopolies,
17:11duopolies in their own right
17:12in whatever they are doing.
17:15And as such, very, very strong businesses.
17:17So, given the right valuation
17:19over a longer period of time,
17:22these kinds of, you know,
17:23businesses tend to give you good returns.
17:26So, I won't hazard a guess
17:29in terms of whether one should invest in the IPO
17:33because I'm, generally,
17:35not, you know, for investment in IPOs.
17:38But NSC is one stock
17:40where mostly the fundamentals
17:42are well-known, well-discovered.
17:45One thing that we need to remember
17:47is that there is an effort
17:49from the government,
17:50from, you know,
17:53SEBI to actually reduce F&O,
17:57reduce the fervor that F&O creates.
18:00And we all know that F&O
18:03is where the biggest money is
18:05for these exchanges.
18:08That's something that we need to remember
18:09because last couple of years,
18:12I think we've seen constant policy decisions
18:14coming in,
18:15which is, you know,
18:17trying to reduce the F&O,
18:20you know, trading in the market.
18:21So, that's something
18:23that we need to keep in mind.
18:24We cannot just extrapolate current growth,
18:27current numbers
18:28continuously into the future.
18:31Okay.
18:31Let's shift back our focus
18:33to what's happening
18:34on the crude oil front.
18:36Crude oil prices continue to surge
18:38amidst the escalating tensions
18:39in West Asia.
18:41India's crude basket
18:42is now nearing $129 a barrel.
18:45This is the highest level
18:46that we've seen
18:46for the India crude basket
18:48since April.
18:48What does the sustained surge
18:50in crude oil prices
18:51really mean for the markets
18:53and importantly
18:54for retail fuel prices?
18:55Are we once again
18:56going to be seeing
18:57a time when
18:59fuel pumps
19:00are going to be selling
19:01petrol, diesel
19:02at a much higher rate?
19:04That's something
19:04that all of you
19:05must be looking at,
19:06finding out.
19:06Let me welcome
19:07Aishwarya Patil,
19:08my colleague,
19:09to join in
19:09with more details
19:10on the same.
19:11Aishwarya,
19:12if we look at
19:13the highest level
19:14for India crude basket
19:15that was seen
19:17back in April,
19:18right after that,
19:19we had seen
19:19a series of fuel price
19:21surge back home
19:22in India.
19:23The prices had cooled off
19:25over the last couple
19:26of months
19:26and therefore no action
19:27but yet again
19:28we are seeing crude oil
19:29prices soar through the roof.
19:31What are you expecting?
19:35Well, the current prices
19:37at which Brent and WDI
19:39are hovering
19:40is anywhere between
19:41$102 to $109
19:43or $10 per barrel,
19:45that kind of a mark
19:46for both these indices.
19:49And of course,
19:50throughout the crisis,
19:52the West Asia crisis,
19:53we've seen
19:54around February
19:55it was at $65 per barrel
19:57and it has been hovering
20:00over $100 per barrel
20:02and even touched
20:03a peak of about
20:04$126 to $29 per barrel
20:06during the West Asia crisis.
20:08As we speak,
20:09also there are
20:11some drivers
20:12to this kind of figure
20:14of the crude
20:15which is the Saudi pipeline
20:17shut down,
20:17the Strait of Hormuz
20:18tensions continue
20:19and even stalled diplomacy
20:22between the Gulf states
20:24as well as Iran,
20:25the US as well
20:27and Israel.
20:28So as we speak,
20:30crude continues
20:32to hover
20:32at those levels
20:33although it hasn't
20:34reached the
20:35129 or 26 mark.
20:38But having said that,
20:41crude being
20:41at these levels
20:43means for the OMCs,
20:45oil marketing companies,
20:46under recoveries
20:47are going up
20:48and the crack spreads,
20:51the difference between
20:52the cost of production
20:53versus that
20:55seeing in the market
20:56at retail level
20:57also is something
20:58that we really need
20:59to watch out for
21:00now that the crude oil prices
21:02are at these levels.
21:03Thanks, Aishwarya,
21:04for getting us
21:05those details as well.
21:07Once again,
21:09you know,
21:09Abhishek,
21:09I'm going to be
21:09coming to you.
21:11You know,
21:11how do you see
21:12this uncertainty
21:13really flowing
21:15into the markets
21:16as well?
21:17You know,
21:17we have broken
21:18so many crucial
21:19support levels
21:20in this last
21:21two weeks
21:22or so.
21:23you know,
21:24it was all about
21:25markets being
21:26in a tight range
21:27for the last
21:27three months
21:28from 23,800
21:30to 24,400
21:32and now we have
21:33broken 2300,
21:3423,500,
21:3623,200.
21:37Now,
21:38what's next
21:39for the markets
21:39if the oil prices
21:40continue to surge
21:42at the pace
21:43that they are
21:44and again reach
21:45those elevated levels
21:46of the peak
21:48of the West Asia crisis
21:49and therefore
21:51what do you expect
21:52the investors
21:52to keep in mind
21:53when they are
21:54looking at this
21:55both as an opportunity
21:56and with a lot
21:57of uncertainty
21:58as well?
22:01I would tend
22:03to be,
22:04you know,
22:05optimistic.
22:05I don't think
22:06that crude
22:08is going to go
22:09sharply ahead.
22:12At least I hope
22:13so immediately.
22:14I mean,
22:16110 odd dollars
22:17is probably
22:18where it's going
22:19to hit
22:19and pause.
22:21We might see
22:22some,
22:23you know,
22:24action,
22:24some dialogue
22:25coming in
22:25from the US
22:27president
22:28or from,
22:29you know,
22:30you know,
22:31the other global
22:31leaders which
22:32might calm the nerves.
22:34Let's see how it goes
22:35but my sense is
22:36we've seen
22:37a very sharp
22:37up move in crude.
22:40The possibility
22:41is that
22:41it will consolidate
22:43here
22:43and if
22:44the situation
22:46continues like this
22:47then it might
22:47go ahead further
22:48but we have
22:49to keep a
22:50very,
22:50very close
22:51watch on it.
22:52Very difficult
22:53to forecast
22:56this in advance.
22:57But are you
22:57deploying any
22:58fresh cash in
22:59hand or are you
23:00sitting on cash?
23:02Right now
23:03not doing anything,
23:04just sitting.
23:05Let's see how it
23:05pans out and then
23:06we'll figure out
23:07what to do.
23:08Absolutely.
23:09Let's quickly look
23:10at how the markets
23:10are shutting
23:11shop viewers.
23:11We'll come back
23:12to your questions
23:13with Abhishek
23:13now about
23:14in a minute.
23:1523,118.
23:17That's where
23:18the Nifty
23:18seems to be
23:19settling low up.
23:20About 279
23:22points of a cut.
23:23Over a percent
23:23kind of a decline
23:24coming in.
23:25Sharp fall
23:25coming in the
23:26last half an hour,
23:27one hour of trade
23:28particularly.
23:29IT stocks
23:30reduced their gains
23:31by half almost.
23:32About a 2% higher
23:34for the indexes
23:35where we are
23:35seeing it end at.
23:37But rest of the
23:37sectors have all
23:38slipped.
23:40Autos,
23:40PSU banks,
23:41real estate,
23:43the big laggards
23:44today,
23:44metals declining
23:45in trade,
23:46BSU banks
23:47and broader markets
23:48mid and small caps.
23:49That's where the
23:49pain has emerged.
23:50On the Nifty,
23:51IT names continue
23:52to rally.
23:53You have HCL Tech,
23:54Infosys,
23:54TCS,
23:55Tech Mahindra,
23:56Wipro among
23:57the top winners
23:57on the street.
23:58Anywhere between
23:591 to 5% gains
24:00coming in there.
24:01On your screens,
24:02the top declining
24:03names on the Nifty.
24:04We have BEL
24:06as the top laggard,
24:07almost a 5% cut
24:08here.
24:09Sriram Finance,
24:10Adani Enterprises,
24:11Indigo and
24:12Grasim and even
24:13Bajaj Fin Sarva.
24:14Some of the big
24:15laggards on the
24:16Nifty today.
24:17But on the
24:17broader markets,
24:18the Nifty 500
24:19names,
24:19a lot of names
24:20that managed to
24:21pull up despite
24:21this overall
24:22weakening index.
24:23You did see a
24:24lot of names
24:25like Tata Group
24:26stocks we already
24:27marked out for you.
24:27So Tata Chemicals
24:28still ends about
24:2920% circuit,
24:31Tata Investment
24:31Corp about
24:3210% higher.
24:33From the IT
24:34pack,
24:35you had
24:35first source
24:36solutions up
24:36and about,
24:37quick heal
24:37solutions up
24:38and about in
24:39trade.
24:39Broad moves that
24:40were coming in
24:41in the gaining
24:42side there.
24:43Then you're
24:44looking at the
24:44debut stock
24:45run of
24:45constructions about
24:466.5-7% higher.
24:48Some such names
24:49also managed to
24:50pull up despite
24:51this overall
24:51weakness in the
24:52markets.
24:53markets.
24:53On the Nifty
24:55next 50 names
24:56again, just
24:57about two
24:58stocks, LTI
24:59Mindtree and
25:00HDFC-AMC that
25:01managed some
25:02gains.
25:02Rest of the
25:03pocket all
25:03slipped and
25:04that also goes
25:05on to show how
25:06even broader
25:07markets are facing
25:09the pressure
25:09today in the
25:10markets.
25:10But let's now
25:11ship focus to
25:12taking your
25:13questions now.
25:14We have
25:14Harsh Jain from
25:15Mumbai asking
25:15you,
25:16Abhishek on
25:17IT stocks.
25:18IT stocks are
25:19rallying and
25:19can the momentum
25:20continue and
25:21should investors
25:21accumulate IT
25:22shares for the
25:23long term now?
25:24Interestingly,
25:25nobody imagined
25:26that the IT
25:27stocks will
25:28actually shoot
25:29up through the
25:30roof this
25:30morning.
25:31It was all
25:31to do with
25:32some AI
25:33chiefs globally
25:34talking about
25:35slower pace of
25:36development of
25:37AI that led to
25:38the traditional
25:38IT firms
25:39coming back
25:40into focus.
25:41But is this
25:42something that
25:42can sustain for
25:43the long term?
25:44Again, the
25:45question, how
25:45would you look at
25:46it?
25:46I think the last
25:47couple of
25:48weeks we had
25:49this discussion
25:49a couple of
25:50times about
25:50IT.
25:51And my
25:52sense was
25:52always that
25:53if you have
25:54a three to
25:55five year
25:56horizon, IT
25:57might be a
25:57good bet to
25:58start looking
25:59at.
26:00One, because
26:01it's extremely
26:02cheap.
26:03Second is
26:04obviously the
26:05AI trade at
26:06some point
26:07will unwind
26:08and then that
26:09will benefit
26:10the IT
26:10services place
26:12that India
26:12has.
26:13And thirdly,
26:13now I think
26:14because the
26:15dollar is
26:15trending, so
26:16that's another
26:18slide
26:19impetus to
26:19the IT
26:20companies.
26:21So in
26:21all, I
26:22think, if
26:23you have a
26:24longer time
26:24horizon, IT
26:25may not be a
26:26bad option to
26:26look at.
26:27Okay, may
26:28not be a
26:28bad option to
26:29look at.
26:30Parson Shukla
26:30from Bengaluru
26:31asks you,
26:32what is the
26:33outlook for
26:33banking stocks
26:34over the next
26:35six months?
26:36Now, banking
26:36is a very
26:36vast space.
26:38Let's break
26:39it down.
26:39Are you looking
26:40at any pocket
26:41within the
26:41banking space
26:42that attracts
26:42you more than
26:43the others,
26:43PSU's, private
26:44or the
26:44NBFC's, but
26:46within the
26:46banks, what
26:47looks appealing?
26:48In general, I
26:49am very
26:49positive on the
26:50banking space,
26:53especially the
26:53two ends, I
26:54mean, the
26:55PSU banks
26:56and the
26:56MFIs.
26:57So the two
26:57extremes is
26:58what I like.
26:59The MFI
27:00sector has
27:01made a
27:02turnaround,
27:04they have
27:04cleaned up
27:05their books.
27:05So a
27:07good next
27:08one and a
27:09half, two
27:09years is
27:09expected.
27:11PSU banks
27:11would tend
27:12to do
27:13well in
27:14a rate
27:16hiking cycle
27:17and it's
27:18possible that
27:19India will
27:20follow suit
27:21its global
27:22peers in
27:23terms of
27:23hiking rates,
27:24at least
27:25partially.
27:27So PSU
27:29banks and
27:29MFIs are
27:30what I am
27:31looking at.
27:31Okay.
27:32Let's also
27:33take the
27:33last query.
27:34This one
27:34is from
27:34Arpeth from
27:35Vadodara.
27:36He asks
27:36you,
27:36defense stocks
27:37in my
27:37portfolio have
27:39continued to
27:39deliver good
27:40profits but
27:41should I
27:41continue to
27:42hold them
27:42for say
27:43another year
27:44or so,
27:44what can
27:45you advise
27:45here?
27:47See,
27:47longer term,
27:483, 5,
27:4910 years,
27:49I think
27:50defense is
27:50going to do
27:51extremely
27:51well.
27:52Days like
27:53today or
27:53weeks like
27:54this week,
27:55sometime,
27:56you will get
27:57these sharp
27:57falls,
27:59profit booking,
28:00etc.
28:00that's going
28:01to happen.
28:01I think
28:01today,
28:02defense index
28:03was down
28:045-6%.
28:04But these
28:05kinds of
28:06things will
28:06happen if
28:08you are
28:09holding a
28:09particular stock
28:10or sector
28:11for a long
28:11term.
28:12But if you
28:13look at the
28:13fundamentals or
28:14just simply the
28:16demand that is
28:16there across
28:17the world,
28:19the geopolitical
28:20situation across
28:21the world and
28:22things that it's
28:23not going to
28:23change very,
28:24very soon.
28:26spending on
28:28defense is
28:28going to
28:29continue.
28:30These companies
28:31that are there,
28:32if you pick
28:33them correctly,
28:34they will
28:34continue to
28:36give good
28:37results for
28:38many years
28:39for now.
28:40So,
28:41I think
28:42defense is a
28:43very good
28:43sector to
28:44remain invested
28:45in.
28:46Okay.
28:47All right.
28:48Abhishek,
28:48we'll thank you
28:49there for being
28:49with us and
28:50sharing all
28:50these insights
28:51and answering
28:52our viewers
28:52questions as
28:53well.
28:53Viewers,
28:54in case you
28:54too have any
28:55questions about
28:55your investments
28:56in stock
28:56markets,
28:57mutual funds,
28:58gold or
28:59SIP related
28:59questions,
29:00then send
29:01them to us
29:01on the number
29:02that's flashing
29:02on your screens.
29:03We'll be happy
29:03to get that
29:04answered with
29:05our top market
29:05experts.
29:06And before
29:06we leave you,
29:08the latest
29:08edition of the
29:09Business Today
29:10magazine is now
29:11out on the
29:11stands and
29:12this issue
29:12tracks a big
29:13shift across
29:14India Inc.
29:15From growth
29:16at any cost
29:17to profitable
29:18growth.
29:18Our cover
29:19story looks
29:20at quick
29:20commerce,
29:21where the
29:21focus is
29:22moving from
29:23dark store
29:23expansion and
29:25deep discounts
29:25to now unit
29:26economics,
29:27profitability and
29:29cash flows.
29:30With Blinkit,
29:31which has shown
29:31that the model
29:32can work,
29:33Zepto,
29:34Swiggy,
29:34Instamart and
29:35Big Basket
29:35and many others,
29:36the path to
29:37profitability still
29:38remains a work
29:38in progress.
29:39So with the
29:40online grocery
29:41penetration still
29:42relatively low,
29:43the opportunity
29:44seems far from
29:45over.
29:46So the big
29:46question now is
29:47who can turn
29:48scale into
29:50sustainable
29:50cash flows.
29:51Grab the
29:52latest edition
29:52to read about
29:54quick commerce
29:55race and
29:56many other
29:56stories.
29:57The magazine
29:58is out on the
29:58stands and
29:59even on
30:00Blinkit.
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30:17The magazine
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30:20The
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30:20is out on the
30:30You
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