- 10 hours ago
On The Business Today Show, anchor Sakshi Batra reviews key developments across financial markets and the Indian economy. Dalal Street recorded a strong rebound as the Nifty gained 220 points to close at 22,776, supported by broader market strength in small-caps, mid-caps, pharmaceuticals, oil and gas, and private banks. Market expert Ambarish Baliga shares insights on market valuations, a drop in crude oil prices, and reports of Jio Platforms planning India's largest-ever initial public offering at a revised 114 billion dollar valuation. Meanwhile, domestic airlines have approached the government seeking tax relief and fuel price stabilization amid West Asia airspace disruptions and jet fuel spikes. Additionally, the Union Cabinet sanctioned integrated transport logistics measures and a 10,000 crore rupee SME growth fund. Finally, Business Today Group Editor Sidharth Zarabi engages with the World Bank following its upgrade of India's economic growth forecast to 7.1 percent, highlighting the dichotomy between rising employment figures and the scarcity of quality jobs.
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NewsTranscript
00:10good afternoon viewers you're watching the business today's show with me sakshi patra
00:13this is where i get you all the closing action on the last street first up let's quickly look
00:17at how the nifty is trading at this point in time 22 717 about 160 points higher we're at
00:24the day's high point 0.7 up and have also crossed above the 22 700 mark remember yesterday we
00:30crossed the hurdle of 22 500 today seems to be that we might be inching closer to a 22 700
00:36close
00:37and above that as well well broader markets have to be thanked for that there's a broad based
00:41momentum today in the markets look at the small caps and the mid caps all at the day's high point
00:45small caps one and a half percent up pharma has pulled up pace towards the last half of the session
00:51you're looking at pharma index now one and a half percent up you will clearly be able to see
00:55how the index has moved to the high point and oil and gas of course had been moving up since
01:01morning
01:01we're looking at the banking space also supporting the move only psu banks are declining and you have
01:07the real estate stocks that are on the back foot along with this you're also looking at it about
01:12one percent down so that's not supporting the index at this point but india vix is lower by about
01:18eight odd percent so a sharp fall in the volatility index is also leading to some kind of a recovery
01:23in the market let me actually welcome ambrish baliga our market expert of the day to give us
01:28some sense of how do you look at the markets at this point mom welcome to you ambrish good to
01:32have
01:32you with us as always well two consecutive days of gains after those eight painful weeks that we have
01:37seen um you know does it seem like the markets are now somehow indicating that a bottom in the near
01:44term may have been made already and are we decisively inching towards 23 000 yet again or could there be
01:50hiccups no because see after eight weeks of consecutive fall i think we have not seen this
01:56sort of a situation for a very long time in fact since 1993 uh possibly this is the third or
02:01fourth
02:02occasion where we have seen fall for eight weeks or more than i think the last one was in 2001
02:07which is nine weeks and 1993 was about 10 weeks and after this sort of a fall i mean the
02:12valuation
02:13becomes a bit compelling by the same time you require a trigger for people to come back and
02:18buy for long term uh you normally have uh i mean people who come back to buy uh from a
02:23short term
02:24angle for a bounce back so that's what i think we i mean has happened as of now because there
02:28are no
02:28major positive triggers i mean except for the fact that a few corporates have come out with some
02:34headline numbers for q2 which have been quite good and we have seen uh that the oil also has corrected
02:40a bit so this has added to the momentum but now we need to see whether this sustains or not
02:45and for
02:46that i think there has to be in place which uh i mean hopefully uh like if like if there's
02:52a
02:52resolution to west asia that will be sort of a permanent trigger for the markets but that doesn't
02:56seem to happen so soon so i think we need to see as to what comes up because even the
03:01q2 numbers i
03:02don't think will be a major trigger because people would be worried about q3 because what inflation
03:08we are seeing whatever rate hikes uh we've been seeing i think uh would affect the q3 numbers so
03:13people would be bothered about that so i mean as of now just keeping your fingers crossed just keeping
03:19the fingers crossed but also there's some relief on the crude oil prices from brand crude has slipped
03:23below 99 a barrel after those many days and weeks when we have seen uh the prices continue to
03:30stay above and elevated above 100 a barrel as well so that's some kind of a respite coming in but
03:36there's another big breaking news coming in viewers and this is with regards to the ipo space a report
03:41in bloomberg indicates that geo platforms whose ipo is likely to open uh in the third week of october is
03:47likely to seek a valuation of 114 billion dollars and this is however less than the earlier expectations
03:53which according to bloomberg were anywhere between 130 to 170 billion dollars also the report indicates
03:59there is a cut in the size also or off because of the recent fall in the in stock markets
04:04the ipo
04:05however will still continue to be india's largest uh ever also the valuation will also make india's
04:11uh third largest most valued company as far as geo platforms is concerned right after parent company
04:18reliance industries and also bharti et al another telco right there in between also so let's take a view
04:25from ambarish right there ambarisha there were two big ipos that were awaited one of them is already
04:30out nsc got listed and now it's geo that's also making its way right around dashera and before
04:36diwali uh coming in and maybe you know setting the stage for history to be made in the in stock
04:42markets
04:43being the biggest ever ipo now this of course is raising a lot of anticipations uh right ahead of
04:49the ipo as well but it might just end up becoming the third largest firm as per what some of
04:55the reports
04:56are indicating but what's your sense of the size being cut probably and the valuations they may
05:01now be seeking around 11 lakh crores odd i think they're quite practical about it because the way
05:07the markets are and the mood of the market i mean it would have been quite difficult to come up
05:11with
05:12that large an ipo at like higher valuations so it is good that they have i mean they have cut
05:19the
05:19valuations and reduce the size of the ipo because they i mean there can be a bit of a liquidity
05:24crunch
05:25also because nsc also have sucked out a decent amount and uh as of now people have not really
05:30made money on nsc so that's the other issue which is there uh so i mean i i don't think
05:36there'll be
05:36any issue in getting the uh i mean i could subscribe as far as geo is concerned i mean looking
05:41at the
05:42promoters and the returns they're given in the past and the whole group the sort of returns they're
05:47given in the past so surely there would be demand but the question is whether you'll get
05:52an immediate pop-up on listing or not that's a big question mark okay will there be a re-rating
05:58of reliance industries also uh re-rating i doubt and and at the same time reliance industries will
06:08be a holding company so you get a holding company discount so i don't see a immediate re-rating
06:13okay there's another breaking news coming in viewers this is as far as some big decisions have
06:18been taken by the union cabinet today especially when it comes to integrated transport and logistics
06:23uh or the proved as well and also about 10 000 crores allocated uh for the sme growth fund as
06:31well so
06:32those are some details that are coming in there we'll continue to come back to it as in when we
06:36get
06:36more details but also shifting focus to the aviation space airlines are sending a desperate sos to the
06:43government facing skyrocketing fuel costs and airspace restrictions from the west asia conflict
06:48carriers like air india and indigo are demanding urgent tax relief and a shift in fuel pricing to stay
06:56afloat in fact richa is now joining in with more details on the same as well richa uh graf noon
07:03give us
07:03an a sense of what exactly are the demands that uh airlines are um you know putting in forth uh
07:08for the
07:09government to give some kind of a relief amidst this trying time
07:12yeah dr sakshi uh what we have thought that federation of indian airlines which is a grouping
07:20of all the major airlines in india have written to the government and they want some of these
07:25measures uh we know were in place during the peak of middle east crisis um you know on may june
07:32so then slowly they were listed as things became eased up so now they want again uh you know these
07:39measures to be brought in because we've seen that uh the crude prices are really high yesterday only
07:46we saw indigo increasing its uh yeah fuel charges uh for domestic and international sector and the
07:52rises are from somewhere around 350 to 1300 on domestic and thousand to ten thousand on international
07:57because they cited that you know operational challenges they are facing because of high
08:03group prices now airlines uh and jointly have written they want uh relaxation on vat
08:09delhi and maharashtra has already waived the vat which has been continuing they want other states
08:15some of the states did put like around 30 percent of the vat then there's an excise which is around
08:2011 percent and then they also want some kind of uh cost plus uh for the fuel and this morning
08:29only
08:29we heard the civil aviation minister kinjara paraju saying that government is reconsidering a price
08:35stabilization fund of rupees 10 000 interestingly this was also introduced in june around may june but
08:43there were no takers no airlines came forward so the offer was that government will fix a kind of a
08:49price uh for airlines a fixed rent crude or sorry the jet fuel prices for the airline and that will
08:56remain same for an year but none of the airlines agreed and the scheme there was no nobody came
09:01forward so again absolutely okay richard thanks a lot for getting us those details markets have
09:07shut shop viewers 22,776 so we are seeing a sharp uptick towards the end of the session to 20
09:14points
09:14higher in trade for the nifty it's panned out to be a fantastic day uh by the end of course
09:19there's
09:19a cash impact that's also played out almost a percent higher now let's see how that one adjusts as
09:24well going forward but uh let's also look at the key sectors that contributed pharma oil and gas
09:29private banks fmcg uh you're seeing at least eight to nine indices sectoral indices managing over one
09:37percent gains in the session today on the nifty you saw names like trent uh pulling up about 12 and
09:43a
09:43half percent higher as the top mover bsc about 3.8 percent higher kotak mahindra bank nestle hul
09:49reliance industries 2.2 uh 2.6 percent higher as among those winners in trade right now some of them
09:56are reacting to the q2 numbers whereas there is another uh you know of course uh the other action
10:02is towards the news flow on the q2 updates on the declining side however you had coal india today down
10:07by 3.2 percent tech mahindra max healthcare itc and apollo hospitals as those stocks that decline
10:13but managing a strong show on the nifty 22 776 remains to be seen whether we sustain this all
10:20through this week and whether we'll be able to snap that eight a week of a losing streak as well
10:25with that we turn our focus now viewers on the world bank which has upgraded india's growth forecast
10:32to 7.1 percent defying global headwinds but there is a catch while employment numbers are rising
10:39quality jobs remain scarce business today group editor siddhar zurabhi has decoded this
10:44jobs conundrum in an exclusive chat with the world bank let's listen in to an excerpt
10:49let me now turn the focus to uh india uh mr cruz uh a very broad question to start uh
10:59with uh what is
11:00the latest uh update as far as india's economy is concerned so i mean it's it's very consistent with
11:08what uh francisca has saying in the sense has been saying in a sense that uh we've upgraded our forecast
11:14relative to the last time we we we were doing the forecast for uh for the fy 27 fiscal year
11:22uh to 7.1
11:24and that's really because the impact of the the crisis in the middle east has been much more muted than
11:29what we uh expected and i think this has to do with um with with a number of things uh
11:37first of all
11:37uh the the rise in oil prices has been less than what we thought and that's because uh of demand
11:44responses on the part of uh of china the u.s india has also been very good at finding alternative
11:50sources of uh oil and gas uh the the second thing is that uh india entered this crisis from a
11:58very
11:58very sound position in terms of macro fundamentals and and the government actually was very swift and
12:04very agile in uh taking policy action to make sure that the the the impact would not be felt
12:11by consumers too much and that was very much key to underpinning the kind of domestic demand
12:16domestic consumption that that francisca uh talked about and then you know the the upgrade is also
12:22reflective of what we've seen happening in q1 and q2 where the economy has really surprised uh in terms
12:29of its uh its performance so you know even if the second half of the year is less strong than
12:36what
12:36we've seen in the first half which is indeed what we expect uh you know the the momentum is such
12:42that
12:42that the full year growth is likely to be uh to be north of seven seven percent which is what
12:48we've
12:48reflected in the latest update let me uh follow up uh your remark by taking you to talk about another
12:56aspect of the report uh which is titled in the report as a very nice box item it says more
13:02indians are
13:03working for pay but good quality jobs remain scarce so uh the data of course is very interesting it says
13:10that between 2017 and 23 about 134 million additional people found work nearly twice the increase
13:19uh in the working age population over the same six years yet uh close to half a billion working age
13:28adults remain outside employment in 2023 uh mr cruz uh expand on this for us and uh try and help
13:38our
13:38viewers understand the jobs conundrum as we see it in the indian context yeah so so i think the the
13:45numbers that you've uh you've quoted are interesting because we we often think of uh of jobs in terms of
13:51numbers of jobs that need to be created and if you look just at the numbers uh the indian economy
13:58has
13:58created uh quite a few jobs and in fact enough if you just think in terms of quantity to accommodate
14:05new
14:06entrants into the the working age population and even to reduce unemployment and increase uh labor force
14:14participation so you know the the the big challenge and and where i think the the the crux of the
14:21issue
14:21is is whether the jobs that the economy creates correspond to the aspirations of people who are entering
14:28or are already in the workforce and and as economies develop uh this gets harder and harder to do because
14:37young people now are much more educated for example than they were uh you know generations ago so
14:44logically with education their aspirations for for uh for occupations that correspond to their skills
14:50correspond to their training have also increased so the point that i would like to make is when we
14:55think about jobs and the jobs challenge we need to think about quantity of jobs but we also need to
15:01think about quality of jobs and whether the jobs that the economy creates correspond to the aspirations
15:06and the skills that that uh participants in the labor force have my sense is that the the challenge
15:13is uh as much if not more on the quality side than on the quantity side
15:21all right viewers of course you can catch the entire conversation on business today youtube and on
15:25the website as well but with that it's a wrap on the business today show right here stay tuned on
15:29to india today but we'll be back to track the markets tomorrow morning at 9 5 a.m