#Sensex, #Nifty trade near day's high as financial services, power stocks gain.
What were the key market trends today? What to expect from the markets tomorrow?
Watch India Market Close' with Tamanna Inamdar and Hersh Sayta. #NDTVProfitLive
What were the key market trends today? What to expect from the markets tomorrow?
Watch India Market Close' with Tamanna Inamdar and Hersh Sayta. #NDTVProfitLive
Category
📺
TVTranscript
00:00:00 (upbeat music)
00:00:02 (upbeat music continues)
00:00:06 (upbeat music continues)
00:00:09 (upbeat music continues)
00:00:12 (upbeat music continues)
00:00:16 (upbeat music continues)
00:00:19 (upbeat music continues)
00:00:23 (upbeat music continues)
00:00:26 (upbeat music continues)
00:00:29 (upbeat music continues)
00:00:33 (upbeat music continues)
00:00:36 (upbeat music continues)
00:00:44 (upbeat music continues)
00:00:52 (upbeat music continues)
00:01:00 (upbeat music continues)
00:01:03 (upbeat music)
00:01:14 - Very good afternoon
00:01:26 and welcome you're watching India Market Close.
00:01:28 I'm Tamannah Inamdar
00:01:29 and with me is Harsh Saita.
00:01:30 Let's take a quick look at how markets are fair today.
00:01:33 Let's begin with the fact that it's a better day
00:01:36 than was anticipated.
00:01:37 And markets have held up fairly decently in today's trade.
00:01:42 I just wanna pull up the Bank Nifty as well over here
00:01:44 because we have the Nifty 50
00:01:45 and you're seeing the Bank Nifty doing quite well
00:01:48 considering positive business updates which are coming.
00:01:52 So the sort of prequel to the quarterly numbers
00:01:55 has given us a sense that it's going to be
00:01:58 a fairly decent quarter for financials.
00:02:02 And you're seeing that in the Sensex and the Nifty as well.
00:02:04 Let's pull up the advanced decline ratios
00:02:06 to see what the key indices are doing.
00:02:09 As usual, the mid caps are the winners of the day
00:02:12 and you're seeing that today as well.
00:02:13 So a steady sort of a movement through the day
00:02:17 and we are seeing markets hold up.
00:02:19 Now that's a bit of a positive surprise I would say
00:02:23 looking at how the global market cues were fairly negative
00:02:26 but India seems to have bucked that trend.
00:02:29 So optimism of quarterly numbers
00:02:32 would be the biggest issue over there.
00:02:34 Let's take a look at the heat map and see how they're fair
00:02:36 before we come to the broader indices
00:02:38 and look at Bajaj Finance.
00:02:39 Top of the heap over there.
00:02:41 Again, business updates and we're gonna talk about that
00:02:43 in detail on the show.
00:02:45 ONGC doing well.
00:02:47 Crude worry is good for ONGC.
00:02:49 You're seeing power stocks fire
00:02:51 and that continues to be a trend.
00:02:53 Adani ports, they're up about 3%.
00:02:56 So a combination of factors there, of course,
00:02:58 big relief for the Adani pack yesterday,
00:03:01 fundraising and then positive brokerage reports
00:03:04 has contributed to that.
00:03:06 Some of the financials doing okay
00:03:07 but IT in terms of an index also continues to be laggard.
00:03:12 So you're seeing TCS over there, LTI, Maintree.
00:03:15 I would say IT, auto and OMCs
00:03:17 would be the weak spots in the market today.
00:03:20 A quick look at the broader indices
00:03:21 before I go across to Harsh for more stock specific action.
00:03:24 And if the year began with the idea
00:03:27 that you're going to see the return of the large caps,
00:03:30 well, that may still play out, but we're waiting for that
00:03:32 because look at the mid cap index,
00:03:35 the Nifty mid cap 100 up about one and a half percent as well
00:03:40 and you're seeing small caps also up 1%.
00:03:43 So on Nifty expiry day,
00:03:44 you're seeing a good kind of an upswing,
00:03:47 but the story lies and Harsh I would say,
00:03:51 real estate stocks, power stocks
00:03:54 and especially those with positive business updates.
00:03:57 You're seeing a lot of pockets of stock specific action.
00:04:00 What's on your radar this afternoon?
00:04:01 - Well, yes, absolutely.
00:04:02 Let me start off with GM Breweries,
00:04:05 quarter three numbers and the stock is down
00:04:07 on the back of that.
00:04:09 Let's have a quick look at the chart.
00:04:11 It's in fact fallen off post the results.
00:04:13 When I'm looking at the numbers itself,
00:04:16 revenue marginally higher around a percent or so higher
00:04:21 and you're looking at EBITDA, which has contracted,
00:04:23 margins, which are contracting
00:04:25 and profit after tax also, which is lower.
00:04:27 So that one's the first one on the radar.
00:04:30 The other one, which Tamannaah did speak about
00:04:32 was Bajaj Finance on the back of again, numbers,
00:04:35 very strong set 30% was the FY20 for guidance
00:04:39 for AUM growth.
00:04:40 It's clocked a 35% growth and that too,
00:04:44 in a quarter tellingly, which was a quarter in which
00:04:47 the RBI has cautioned unsecured lending
00:04:50 as well as increased risk weights.
00:04:52 So despite that, that growth coming in 7% sequential
00:04:55 is definitely keeping Bajaj Finance well above
00:04:58 four and a half percent higher on Bajaj Finance.
00:05:01 Quickly moving on, AU Small also reported its numbers
00:05:04 largely flat at the start of trade today,
00:05:06 but up and about three and a half percent higher on AU
00:05:10 as we speak.
00:05:11 Again, the positivity comes from the deposit growth number,
00:05:14 31% year over year growth and deposits.
00:05:16 On the loan side, not as great
00:05:18 because the base is small, 20% loan growth
00:05:21 is definitely decent, but the base is small.
00:05:24 Quickly moving on to another banking counter,
00:05:26 Ujjivan Small Finance, 27% loan growth,
00:05:29 29% deposit growth.
00:05:31 This is another one where deposits have outstripped loans
00:05:35 in terms of growth and therefore,
00:05:36 the loan to deposit ratio has actually improved
00:05:38 in a tough quarter.
00:05:40 So that one in focus as well, up 4% as we speak.
00:05:43 Then we have two updates quickly,
00:05:46 one on Balaji Amines, their plant has been recognized
00:05:51 in Solapur, has been recognized
00:05:53 by the government of Maharashtra,
00:05:54 and on the back of that, you can see the stock buzzing,
00:05:57 3% higher, around 750 odd crore of investment
00:06:00 coming in there.
00:06:01 And last off, we have the likes of Asobha,
00:06:04 which is within the real estate pack.
00:06:06 The entire real estate pack is buzzing,
00:06:07 but Asobha especially, after the Motilal Oswal note,
00:06:11 suggesting a 1400 rupee target price for Asobha,
00:06:14 and you're seeing a 15% uptake on that counter.
00:06:17 In fact, went up as much as 19% in the day-to-day,
00:06:21 intraday, Tamanna.
00:06:23 - I mean, the whole real estate story is an astonishing one,
00:06:26 and we'll get into more details on it.
00:06:28 Sobha, Brigade, Macrotech,
00:06:30 all of them seeing a great run up today in trade.
00:06:34 But let me quickly bring in Rajesh Palviya,
00:06:36 SVP, Technical and Derivatives Research
00:06:38 at Axis Securities, joining us on the show today.
00:06:41 Rajesh, a very good afternoon to you.
00:06:43 Thank you for joining us on NDTV Profit.
00:06:45 We're looking like we're having a good day, isn't it?
00:06:49 How far to 22,000 now, or is it premature to say that?
00:06:53 - Good afternoon, Tamanna.
00:06:56 Good afternoon, Harsha.
00:06:58 Good afternoon, everyone.
00:06:58 So we are heading towards 22,000.
00:07:03 Yes, it may take some time
00:07:04 because some consolidation activity is going on
00:07:07 in the index, but definitely, yes,
00:07:10 sooner or later we are moving towards 22,000,
00:07:13 or we may continue further beyond 22,000 level also,
00:07:17 as overall structure is bullish,
00:07:19 broad-based market is looking quite bullish,
00:07:24 and sectoral rotation is also happening in the market.
00:07:28 So we expect that some consolidation
00:07:31 for some couple of days,
00:07:32 and then possibly once we're able to take out
00:07:34 that 21,750 on Nifty Spot,
00:07:37 then we can see another round of short covering in Nifty,
00:07:40 and then that can add further more upside
00:07:43 towards 22,000 level.
00:07:45 So maybe next 10, 15 trading sessions,
00:07:47 we could see our 22,000 level for Nifty.
00:07:51 Bank Nifty is looking a little attractive,
00:07:53 as we have seen that in the previous session,
00:07:55 there was a Bank Nifty weekly expiry,
00:07:58 and Bank Nifty took support from 47,500.
00:08:01 That was the important proof-based concentration
00:08:04 for weekly as well as for the monthly expiry,
00:08:07 and almost those level acted as a good support area,
00:08:11 and we have seen again,
00:08:13 smart recovery from those level.
00:08:15 So for Bank Nifty, we believe that once we cross
00:08:17 a sum of 48,200, then possibly Bank Nifty
00:08:21 can add further more support to the Nifty
00:08:24 to inch up further higher,
00:08:26 and Bank Nifty can head further higher
00:08:28 towards 48,600 to 800 in the continuation of this pullback.
00:08:32 So both indices are looking bullish.
00:08:34 Buy on Nifty should be your strategy for Nifty.
00:08:36 21,500 is the key level to watch for on the downside.
00:08:40 - Right, bullish.
00:08:41 Rajesh, good having you here.
00:08:43 Quickly, your calls.
00:08:44 - So first off, definitely from the real estate space,
00:08:49 and that is the Godrej property,
00:08:50 very strong buying action across all real estate space,
00:08:54 and looking at the overall sector structure,
00:08:59 we believe that further more upside,
00:09:01 we can see in most of the real estate stocks
00:09:05 from here onwards.
00:09:07 Godrej property has given a very strong breakout,
00:09:10 rounding bottom formation is taking place
00:09:12 on the weekly chart,
00:09:13 and after a consolidation of almost for three, four week,
00:09:17 now stock is breaking out.
00:09:19 So looking at the overall structure for Godrej property,
00:09:22 we believe that this stock can scale up
00:09:24 to the target of 2280 to 2300,
00:09:27 so one can buy this stock with stop loss of 2185.
00:09:31 Second stock is from cement space, that is Ambuja Cement.
00:09:34 Since last couple of trading session,
00:09:37 stock is showing good traction,
00:09:39 long buildup was there in the data on the derivative front,
00:09:42 and stock managed to break out
00:09:44 of last three week consolidation on the weekly chart.
00:09:47 Looking at the breakout,
00:09:48 we believe that Ambuja Cement can continue further more
00:09:51 upside towards 585,
00:09:53 so one can buy this stock with stop loss of 538.
00:09:57 And the third stock is from banking space,
00:09:59 that is Bandhan Bank.
00:10:00 Very strong momentum in last couple of trading session,
00:10:04 long buildup is clearly there,
00:10:07 and now stock is approaching to its multiple supply zone.
00:10:11 Once the stock crosses about 263, 264 zone,
00:10:15 then possibly this stock can really further higher
00:10:18 towards 275 to 280.
00:10:20 So Bandhan Bank, one can look to buy at the current level
00:10:23 with stop loss of 252.
00:10:25 - Follow up there, Rajesh,
00:10:28 I want a little more detail from you on your picks
00:10:31 on in the reality space,
00:10:33 because the kind of buzz we're seeing is crazy today.
00:10:38 And one sense is that we're going to see
00:10:42 perhaps fantastic numbers in this quarter.
00:10:45 So Q3 is expected to be good,
00:10:47 business updates are likely to trickle in
00:10:49 over the next few days.
00:10:51 You've had a couple of reports talking about
00:10:53 11 year highs of registration,
00:10:55 at least in Mumbai on the residential side.
00:10:57 But having said that,
00:10:58 what would be your top picks in the reality space,
00:11:03 apart from Godrej properties that you've mentioned,
00:11:05 which still have enough of an upside on the charts?
00:11:08 - So we like DLF also,
00:11:11 very strong run up is in the stock in last couple of month,
00:11:15 but still we believe that DLF is the one pick
00:11:19 where one can focus at this moment
00:11:21 and buy on dip should be a strategy,
00:11:23 buy on accumulate one can do in DLF.
00:11:25 And we are projecting target of positional basis,
00:11:28 840 to 860 could be the next target for DLF
00:11:32 in the continuation of this uptrend.
00:11:34 And another stock that we like very much,
00:11:37 that is, you know,
00:11:38 Microtech developer Lodha is also looking very promising,
00:11:41 very strong buying action in last couple of trading session
00:11:44 and looking at the overall structure,
00:11:46 looking at the accumulation activity
00:11:50 and now breaking out on consolidation
00:11:52 that clearly shows that Lodha can continue
00:11:55 for the more upside 1250 to 1300
00:11:58 could be the next target on a positional basis.
00:12:01 So overall, most of the stocks have done well
00:12:04 in the same pass and we believe that, you know,
00:12:06 Nifty Realty Index is clearly showing that, you know,
00:12:08 this really can extend further
00:12:10 and we can see another 10 to 15%
00:12:13 kind of up move in Nifty Realty also.
00:12:15 - Absolutely, I wanna come also to the stock of the day
00:12:19 that we have picked
00:12:19 and it's not just the reality space, it's Torrent Power.
00:12:24 Let's just pull up Torrent Power
00:12:25 and look at the kind of buzz
00:12:27 that we've been seeing astonishing.
00:12:30 Now, you know, down actually from its peak,
00:12:34 but still up about 7% steady.
00:12:36 And now the news is that they've got an MOU
00:12:38 with the Gujarat government of close to 47,000 crores
00:12:42 for a company whose market cap is 49,000 crores,
00:12:44 that's obviously a big, big deal.
00:12:46 But remember at the end of the day, it's an MOU.
00:12:48 Now, what are they gonna do?
00:12:49 They're going to create, you know,
00:12:51 solar energy of about 3,450 megawatts,
00:12:54 4,045 megawatts of hybrid energy projects
00:12:58 and a 7,000 megawatt solar park
00:13:01 with a green hydrogen and ammonia facility.
00:13:04 So Torrent Power seeing a fantastic run up
00:13:07 as a key player in the renewable investment space.
00:13:11 Do you track this at all, Rajesh?
00:13:13 Do you like Torrent Power?
00:13:14 Yeah?
00:13:16 - Yeah, yeah.
00:13:16 So a very strong set up across all time frame
00:13:19 for Torrent Power,
00:13:20 a series of higher top, higher bottom formation
00:13:22 on a weekly, daily, as well as on the monthly chart.
00:13:26 Very strong run up we have seen
00:13:27 throughout the year for the stock.
00:13:29 It's a clear outperforming stock in this segment.
00:13:32 And looking at the up move in today's session,
00:13:35 it clearly shows that, you know,
00:13:36 now if the stock's sustainable, thousand level,
00:13:38 then possibly we can see an extension of this
00:13:41 really towards 1200 to 1300.
00:13:43 So this is a buy on dips category stock.
00:13:46 One can keep in there, you know,
00:13:48 short to medium term, long term portfolio also
00:13:50 in this stock and very strong,
00:13:52 you know, bullish structure on the across all time frame.
00:13:56 So we are holding our bullish view for this stock.
00:13:58 Your stop loss on the downside should be at around 920.
00:14:03 But if it's hold at thousand level,
00:14:05 then possibly next target on the position basis
00:14:07 towards 1200 to 1250, we can see.
00:14:09 - Absolutely.
00:14:11 Sunny Agarwal is with us as well.
00:14:12 Sunny, welcome to the show.
00:14:13 He's head of Fundamental Equity Research
00:14:16 at SBI Cap Securities.
00:14:17 And I'll just come to you in a second on,
00:14:22 you know, how the markets are looking.
00:14:24 It's a good day so far,
00:14:25 but I just want to quickly address a story
00:14:27 and you would have seen flashes on your screen
00:14:29 on what's happening with Precall.
00:14:31 Very interesting because Minda Corp had initiated
00:14:35 a buy of 15% of the company,
00:14:39 which is its rival in the auto cluster space last year.
00:14:43 And Precall had gone to the competition commission of India
00:14:47 saying that, you know, please look into this.
00:14:49 The CCI is now intending to conduct further inquiry
00:14:52 into Minda Corp's proposed investment in the company.
00:14:55 Minda Corp wants to take the stake up to over 24%.
00:14:58 CCI believes the investment is likely to result
00:15:01 in an adverse effect on competition for many reasons.
00:15:04 And so Minda and Precall is both what we should look at.
00:15:09 Their attempt to take the stake up to 24.5%
00:15:13 has hit a head over there.
00:15:15 So interesting development,
00:15:17 especially in the auto and space
00:15:19 when you're seeing the majors fire right now.
00:15:23 Well, yes.
00:15:24 So it's a very interesting development
00:15:26 because Precall has run up significantly
00:15:28 over the last six months.
00:15:29 We've seen 65% gain in terms of returns
00:15:32 for Precall shareholders.
00:15:34 And that's reflective of the price.
00:15:37 Of course, we're seeing a bit of a downtick
00:15:39 on the back of this news.
00:15:41 But, you know, even today we have shareholders
00:15:44 or other promoters of Precall holding roughly 38.5% shares.
00:15:49 And this TIFF is a well-known TIFF now.
00:15:51 A lot of that has been priced in,
00:15:54 but this is a new development, of course,
00:15:56 in favor of the promoters.
00:15:58 And the CCI clearly calling out
00:16:00 that this could hamper competition.
00:16:02 And therefore they will conduct an investigation,
00:16:05 which is big.
00:16:05 We should get a more detailed report in a bit for you
00:16:07 on that story, but one to watch.
00:16:09 Very quick opening comments from Sunny
00:16:12 before we go into break.
00:16:13 Sunny, great to have you on the show.
00:16:15 You know, we started the day thinking about
00:16:19 what is going to happen in the Indian markets.
00:16:21 Are we going to follow global cues?
00:16:23 But we seem to be leading the way.
00:16:25 What do you think is driving the optimism
00:16:27 and is there more to come?
00:16:28 - Yeah, good afternoon.
00:16:30 And thanks for having me on the show.
00:16:32 What I feel is that basically two big event,
00:16:35 which is keeping very market excited
00:16:37 is upcoming Gujarat Vibrant Gujarat Summit,
00:16:41 which is scheduled from 10th to 12th of Jan.
00:16:45 At the same time, vote on account budget,
00:16:47 which is on 1st of Feb.
00:16:48 So I feel at the same time, the hope of rate cut.
00:16:53 So basically what I feel is that the sectors
00:16:55 where there is an expectation of healthy order flow
00:16:58 or order, we know for that matter, MOU,
00:17:01 for sectors like power, for that matter, defense,
00:17:03 railway, rate sensitive sectors,
00:17:06 such as the real estate, auto.
00:17:07 I think at the same time, the stock specific number,
00:17:12 provisional numbers, which are coming for a monthly data
00:17:15 or quarterly data that is keeping market optimistic.
00:17:18 I think it's a stock specific market.
00:17:20 So rather than focusing on key benchmark indices,
00:17:23 what I feel is that henceforth,
00:17:25 the market is a stock specific.
00:17:27 And based on the companies which are likely to report
00:17:29 healthy number in the December quarter,
00:17:32 which is the results again will kickstart,
00:17:34 any rate has kickstarted from today itself.
00:17:37 So GM has reported the number.
00:17:39 So I think stock specific market.
00:17:40 And again, I mean, you have rightly pointed out that
00:17:44 despite only negative global cues,
00:17:46 the Indian markets are holding up very well.
00:17:49 And yeah, so we continue to remain optimistic
00:17:53 with a stock specific moneymaking opportunity
00:17:56 which exists in the market.
00:17:57 - Obviously, absolutely.
00:17:58 And if they comfortably over 21,651 at this point
00:18:03 and looking to end the day in style possibly,
00:18:07 let me quickly go across to Mehika.
00:18:08 She has a list of volume buzzers in today's trade.
00:18:11 Mehika, what's on the list?
00:18:12 - Yes.
00:18:13 So first we have Soba,
00:18:14 which is trading at around 12.8% is 30 day average
00:18:17 and went to an intraday high of 19.22%.
00:18:20 And this was on the back of Motilal Oswal rating the stock
00:18:24 as its top pick for 2024 and implying a 25% upside
00:18:28 at target price of 1,400.
00:18:30 Then we have a Torrent Power
00:18:31 where the company rose to an intraday high of 13.5%.
00:18:35 And after signing four MOUs with the Gujarat government
00:18:38 worth 47,500 crores.
00:18:41 Then we had a Johnson's Control
00:18:42 which is Hitachi Air Conditioning,
00:18:44 which rose to a 7.69% intraday high
00:18:47 and was trading at 10 times its 30 day average.
00:18:50 And this was mainly in the back
00:18:51 after the central government amended
00:18:53 the quality control orders
00:18:55 for certain air conditioner components
00:18:57 where the hermetic compressors
00:18:58 of more than 7,000 gigawatt capacities are now removed
00:19:02 from the order.
00:19:03 Then we had a GE T&D India,
00:19:06 which rose to an intraday high of around 4.6%.
00:19:09 And this was on the back of a block trade
00:19:11 with where 2.5 lakh shares changed hands at 600 a piece
00:19:16 and the deal was worth us 15 crores.
00:19:19 And then we had a Borosil Renewables,
00:19:22 no specific trigger,
00:19:23 but in terms of the demand and growth for renewables
00:19:27 and solar glass is positive for the company
00:19:30 since it is the largest manufacturer of solar gas in India.
00:19:34 And lastly, we had Kolte Patil Developers,
00:19:37 which also rose to an intraday high of 11.3%.
00:19:39 And this was mainly in line with the sectoral action
00:19:42 with the realty stocks picking up today.
00:19:45 - All right, thank you for that, Meeka.
00:19:47 We're gonna take a very short break
00:19:48 and come back and talk of some of those stocks.
00:19:51 Sunny Agarwal says the entire game is stock specific.
00:19:53 What's on his list?
00:19:54 What's on Rajesh's list?
00:19:55 All of that coming up after the short break, stay tuned.
00:19:58 (upbeat music)
00:20:00 (upbeat music)
00:20:15 (upbeat music)
00:20:17 (upbeat music)
00:20:20 (upbeat music)
00:20:22 (upbeat music)
00:20:25 (upbeat music)
00:20:28 (upbeat music)
00:20:30 (upbeat music)
00:20:33 (upbeat music)
00:20:35 (upbeat music)
00:20:43 (upbeat music)
00:20:49 (upbeat music)
00:20:56 (upbeat music)
00:21:02 (upbeat music)
00:21:04 (upbeat music)
00:21:23 (upbeat music)
00:21:25 (upbeat music)
00:21:35 (upbeat music)
00:21:42 (upbeat music)
00:21:48 (upbeat music)
00:21:50 (upbeat music)
00:21:53 (upbeat music)
00:22:14 (upbeat music)
00:22:17 (upbeat music)
00:22:20 (upbeat music)
00:22:33 (upbeat music)
00:22:45 (upbeat music)
00:22:48 (upbeat music)
00:23:15 - Welcome back, you're watching India Market Close
00:23:17 here on NDTV Profit.
00:23:18 Thanks for staying tuned.
00:23:19 Quickly on to some stocks which were buzzing
00:23:22 on the back of their Q3 numbers.
00:23:25 Let me start off with Bajaj Finance.
00:23:28 It saw very strong growth in terms of its AUM,
00:23:31 but before that, customer franchise,
00:23:34 up 5% sequential, 22% year over year,
00:23:37 around 40 lakh odd customers added in Q3.
00:23:40 New loans booked also very close
00:23:42 to a core of new loans booked,
00:23:44 up 26% year over year.
00:23:46 And on the back of that,
00:23:47 the stock was up and kicking,
00:23:49 4.5% higher as we speak.
00:23:52 AUM growth of 35%.
00:23:54 The guidance was 30 for FY24,
00:23:56 so it's well above guidance at least at the moment.
00:23:59 And deposit growth also matched AUM growth,
00:24:01 35% deposit growth as well, clocked in.
00:24:05 Let's also take it to the likes of an industry,
00:24:07 and actually it has done quite well in trade as well today.
00:24:11 You saw good growth on the advances front, 20%,
00:24:14 a slightly lower than what most market participants
00:24:17 were pencilling in,
00:24:18 but it's guided for 18 to 23% loan growth.
00:24:21 So it's not a very bad number to have 20%,
00:24:24 especially when your guidance is 18 to 23,
00:24:26 pretty much in that band.
00:24:28 And deposit growth at 13%,
00:24:30 that may cause a bit of worry
00:24:31 because your credit to deposit ratio has gone up.
00:24:34 Among the other buzzers,
00:24:36 you had the likes of Vedanta as well,
00:24:38 if we can pull that up.
00:24:40 And we saw aluminium output go up,
00:24:43 we saw zinc output come down, oil and gas come down.
00:24:47 But the key here is the restructure on Vedanta,
00:24:50 stock is up because of the debt restructuring
00:24:53 that's at play as well.
00:24:54 - But I want to come to you because you track this, Harsh,
00:24:56 and of course we'll get to Vedanta,
00:24:58 but talking about the business updates,
00:25:00 since you track the financial space,
00:25:03 Bajaj Finance, Ujjivan, IndusInd,
00:25:06 what is the street looking at?
00:25:08 Because the entire space has been rewarded,
00:25:09 it's looking good so far.
00:25:10 Bajaj Finance, you qualified contextually
00:25:13 that even after the RBI sort of clamping down
00:25:15 on smaller ticket rules,
00:25:16 they seem to be doing well.
00:25:17 But what are the parameters
00:25:19 that seem to be ticking the boxes so far?
00:25:21 - Well, what seems to continue to happen,
00:25:24 Tamanna, surprisingly,
00:25:26 is credit growth continues to remain extremely robust.
00:25:29 System level credit growth obviously is at 15 to 16%,
00:25:32 which is very, very healthy.
00:25:34 And on higher basis, mind you,
00:25:36 because this time last year as well,
00:25:38 you saw an uptick in credit growth anyway,
00:25:40 so we were seeing that uptick,
00:25:42 and now you have a higher base
00:25:44 on which also growth seems to be coming through,
00:25:46 so that's one trend which is at play.
00:25:48 The other trend, though,
00:25:48 which is most important in my view,
00:25:51 is going to be the liquidity position of companies,
00:25:54 because you're starting to see
00:25:55 the credit to deposit ratio start to shrink,
00:25:59 because your deposit growth
00:26:00 needs to start catching up with your loan growth,
00:26:02 which doesn't seem to be happening for a lot of players.
00:26:06 You had two players today
00:26:08 which reported higher deposit growth than credit growth,
00:26:10 but those are exceptions,
00:26:12 AU Small Finance and Ujjivan Small Finance.
00:26:14 Both of those had higher deposit growth than credit growth,
00:26:17 but the others are seeing a shrink
00:26:20 with regard to their credit to deposit ratio,
00:26:22 so that's the other trend which is starting to play out.
00:26:24 And of course, that will start putting a lid
00:26:27 on credit growth as well,
00:26:28 so one would have to look out for
00:26:31 how long can this delta be sustained,
00:26:34 and which banks or financial institutions or lenders
00:26:39 start capping growth because this delta is too large.
00:26:42 Yeah, but for now, it seems like good news.
00:26:44 I just want to get a quick take from Sunny Agarwal and Rajesh,
00:26:48 who are with us on the show,
00:26:50 on the entire space and what we've seen.
00:26:52 Bajaj Finance, of course, looking fantastic today.
00:26:55 One of the top gainers, Ujjivan as well.
00:26:59 Sunny, do you want to start?
00:27:01 What are you liking in this space?
00:27:04 Yeah, I think, Tamannaah, I mean,
00:27:06 the entire space is buzzing with the trend
00:27:07 with credit growth as well as deposit growth.
00:27:10 But one thing that is key monitorable for me
00:27:13 will be when the company comes out with actual numbers,
00:27:17 will be our commentary, especially on NIM.
00:27:20 So what I feel that for the next three to four quarters,
00:27:24 the fight is on deposit mobilization.
00:27:26 So I think the NIM commentary on NIM will be very important.
00:27:29 At the same time, asset quality,
00:27:31 especially on unsecured books,
00:27:32 the way RBI is behind tightening the lending norms
00:27:36 for the unsecured portfolio.
00:27:39 So I feel the commentary on how are things panning out
00:27:43 in unsecured books,
00:27:43 that will be one of the important parameters
00:27:45 which I would like to watch.
00:27:46 But having said that, the larger size franchisee,
00:27:50 such as Canara Bank, for that matter, Axis Bank,
00:27:53 ICICI Bank, HDFC Bank,
00:27:54 where there is a relatively kind of more certainty
00:27:59 in terms of that, at least they will be able to mobilize
00:28:02 a decent amount of deposit at benign cost of fund.
00:28:07 So that gives a lot of comfort that at least NIM
00:28:11 will be protected for all these large players.
00:28:13 And at the same time, asset quality,
00:28:15 I believe will continue to remain healthy
00:28:17 for all these large size banks.
00:28:19 So I would like to stick to a larger size franchisee
00:28:22 rather than going to a mid-size or small size bank.
00:28:25 So again, my topic here would be HDFC Bank
00:28:28 just because of the valuation comfort
00:28:30 trading at 2.5 dime price to book.
00:28:32 And if somebody is really looking at
00:28:34 a mid-size to small size bank,
00:28:35 then one can look at Karur Vaishya Bank
00:28:38 and Iquita Small Finance Bank.
00:28:40 - Sure, thanks for that, Sunny.
00:28:41 Rajesh, if I can quickly come to you,
00:28:44 your views, thoughts within the banking sector,
00:28:46 what are you finding attractive?
00:28:48 - So Harsh, we believe that banking and financial space
00:28:51 is likely to continue furthermore,
00:28:53 upside and the whole banking basket
00:28:56 as well as the NBFC stocks are showing good traction
00:29:00 in terms of buying.
00:29:02 From banking space, from private banking space,
00:29:04 yes, we like IndusInd Bank at this moment
00:29:07 and looking at the breakout on the long-term chart,
00:29:10 that clearly shows that IndusInd Bank
00:29:13 can continue furthermore out of performance
00:29:15 and possibly we can see a target towards 1750, 1800
00:29:19 kind of target on a positional basis.
00:29:21 So one can look to buy this stock.
00:29:24 From PSU Bank, we like Banco Garuda
00:29:29 has shown a good breakout in recent past
00:29:31 and looking at the overall structure,
00:29:34 we believe that now the stock holds about 210 mark
00:29:38 then possibly the next target we can see
00:29:41 towards 265, 270 on the high side.
00:29:44 So Banco Garuda is also looking promising.
00:29:47 From NBFC space, we like L&D Finance Holding.
00:29:51 That stock is also forming a rounding bottom
00:29:54 sort of formation on a weekly
00:29:55 as well as on the monthly chart
00:29:57 and looking at overall structure,
00:29:59 we believe that now the stocks continues to hold
00:30:01 above 165 mark then possibly this stock
00:30:06 can scale up to the next target of 195 to 200.
00:30:09 So overall, banking as well as the NBFC space,
00:30:13 both are looking promising at this moment.
00:30:16 Even from housing finance company,
00:30:17 LIC Housing Finance is also looking very attractive
00:30:21 in the very recent past,
00:30:25 we have seen a very strong breakout,
00:30:27 long buildup is clearly there.
00:30:29 Rollover data was very encouraging.
00:30:31 So we believe that LIC Housing Finance
00:30:33 can also exhibit good amount of rally in the near term.
00:30:37 We are projecting target of 620, 640.
00:30:41 So one can look to buy this stock also
00:30:43 with stop loss of 550.
00:30:44 - All right, quickly want to just address GMR Airports,
00:30:49 large deal over there, 1.96 crore shares
00:30:52 that have changed hands,
00:30:53 that's just about 0.3% of equity,
00:30:56 but in the band of 84.25 to 84.5,
00:31:01 the stock up 4%.
00:31:03 It's a day of reality,
00:31:04 we need to talk a little more about what's happening
00:31:06 in that sector and why.
00:31:08 Look at Soba, one of the top gainers
00:31:09 in the mid cap space today
00:31:11 and firing about 8% up even now.
00:31:14 Anushi joining us, oh, sorry, my mistake,
00:31:16 15% up now as we speak.
00:31:18 Anushi joining us with more.
00:31:20 Anushi, do we know what is fueling the rally?
00:31:23 - Right, so coming to Soba Limited,
00:31:24 as you mentioned a 15% upside over here.
00:31:27 - Can't quite hear you.
00:31:28 - Hello.
00:31:31 - Okay.
00:31:34 - Yeah.
00:31:35 So coming to Soba, quite a 15% of upside over here
00:31:40 with the come, this is on the back of the Motilal Oswal note
00:31:43 wherein they have picked Soba as its top pick for 2024,
00:31:46 implying about 25% upside at a target price of Rs. 1,400.
00:31:51 So a couple of reasons that they have cited,
00:31:53 one is the expected scale up of launches
00:31:55 that the company is making,
00:31:57 which will take its land area
00:31:59 to about nine to 10 million square feet going ahead.
00:32:02 Also, they see about a 25% CAGR growth
00:32:05 in its pre-sales numbers over the course of FY23 to 26.
00:32:09 Along with this, what they're also noting
00:32:11 is the re-rating in the land valuation
00:32:13 with the monetization of Bengaluru's land parcels.
00:32:16 So that is on Soba, but what is interesting
00:32:19 is the whole nifty pack is buzzing in trade today
00:32:21 with this index being more than 5% up.
00:32:24 This was mainly led by, as we mentioned, Soba Limited,
00:32:27 but there is also DLF and Godrej properties
00:32:30 that is bringing the sector to the focus.
00:32:33 Along with this, there are other realty stocks
00:32:35 like Purvankara and Signature Global
00:32:38 and Koltepatel also showing about eight to 10% upside here.
00:32:42 Now we have to note, Tamanna, over here,
00:32:43 that this is on the back of the Q3 business updates
00:32:47 that we are going to be seeing in the next few sessions.
00:32:49 So quite an up move before the results start coming,
00:32:53 before the updates start flowing in.
00:32:55 - All right.
00:32:56 Thanks you for that, Anushi.
00:32:59 Sunny, quick view on the reality pack.
00:33:01 We had an opportunity to speak to Rajesh earlier
00:33:03 and his stock pick was Godrej properties,
00:33:06 which is doing phenomenally well today.
00:33:08 But the question is that has the market run ahead of itself?
00:33:12 Are the numbers on ground justifying
00:33:16 the kind of run up we've seen
00:33:17 or you see a larger upside here?
00:33:18 - Yeah, I think the kind of registration number
00:33:23 which we have seen for the month of December,
00:33:25 so we have seen a record registration
00:33:27 for the Mumbai market also.
00:33:29 At the same time, the way commentary is coming
00:33:31 from all the residential real estate companies
00:33:34 seems to be very optimistic.
00:33:35 The sale potential or GDV, what we call, is very robust.
00:33:40 I mean, you check presentation of any company
00:33:43 and everyone is very pretty bullish
00:33:45 that 20, 30%, 40% growth over the span of next two years
00:33:49 seems to be very easy cakewalk for all these companies.
00:33:53 And that is the reason I think our market
00:33:55 is reacting to that development.
00:33:57 At the same time, maybe market is discounting
00:33:59 the rate cut cycle, which may start maybe
00:34:02 in the second half of this calendar year.
00:34:04 So affordability factor is something
00:34:06 which may play out in real estate sector.
00:34:09 At the same time, what I feel is that whenever,
00:34:11 historically we have seen that whenever
00:34:13 stock market do well, people make money in the stock market,
00:34:17 obviously a natural flow of money
00:34:20 goes to the real estate sector also.
00:34:22 And to that extent, I feel that there may be
00:34:24 a slight bump up in terms of sale potential
00:34:27 for all these real estate companies.
00:34:29 And if I were to pick one company at a current juncture,
00:34:32 what I feel is that, basically two companies
00:34:34 I would like to highlight.
00:34:35 One is the Century Textile, where I feel
00:34:38 for FY24, the GDV value is close to around 3,000 crores.
00:34:42 And FY25, the GDV value is likely to be
00:34:45 around 50, 100 crore rupees.
00:34:47 Again, a Mumbai-focused market doing pretty well.
00:34:50 And again, one more player is on the commercial side,
00:34:53 which is Nesco Limited.
00:34:54 What I feel is that after the COVID impact,
00:34:57 the exhibition business is doing pretty well now.
00:35:01 So that business is back with a full strength
00:35:03 and trading at a reasonable valuation,
00:35:05 a thousand crore cash sitting on the balance sheet.
00:35:08 The existing exhibition center will see expansion
00:35:11 in capacity, at the same time, IT Park is likely
00:35:14 to see expansion in capacity in next two years.
00:35:16 So I think well-placed for the decent earning growth
00:35:19 and trading at a reasonable valuation.
00:35:21 - Right, thank you so much for those views, Sunny.
00:35:25 Trading at a reasonable valuation, Tamanna,
00:35:27 6.72% was the top in terms of the gains
00:35:31 that the Nifty Realty Index made today.
00:35:33 That's the highest gain since the 7th of October, 2021.
00:35:38 And that's interesting because over the last two years,
00:35:41 plenty has happened, but today it seems that
00:35:45 the Nifty Realty Index-- - Nifty Realty and real estate
00:35:46 moves in cycles of 10 years each, decadal cycles.
00:35:51 So hopefully the run-up will also continue for some time.
00:35:55 There's been a slump for a while in the actual market.
00:35:58 - Correct, and that seems to be what Sunny seems
00:36:01 to be suggesting as well.
00:36:02 But it's time for a short break.
00:36:05 On the other side, of course, we'll get you all
00:36:06 that's happening in derivative markets,
00:36:08 as well as top buy today, sell tomorrow ideas.
00:36:12 Stay tuned.
00:36:12 (upbeat music)
00:36:15 (upbeat music)
00:36:18 (upbeat music)
00:36:20 (upbeat music)
00:36:23 (upbeat music)
00:36:25 (upbeat music)
00:36:28 (upbeat music)
00:36:31 (upbeat music)
00:36:33 (upbeat music)
00:36:36 (upbeat music)
00:36:38 (upbeat music)
00:36:41 (upbeat music)
00:36:44 (upbeat music)
00:36:46 (upbeat music)
00:36:49 (upbeat music)
00:36:51 (upbeat music)
00:36:54 (upbeat music)
00:36:57 (upbeat music)
00:36:59 (upbeat music)
00:37:02 (upbeat music)
00:37:05 (upbeat music)
00:37:08 (upbeat music)
00:37:11 (upbeat music)
00:37:13 (upbeat music)
00:37:16 (upbeat music)
00:37:19 (upbeat music)
00:37:22 (upbeat music)
00:37:27 (upbeat music)
00:37:34 (upbeat music)
00:37:39 (upbeat music)
00:37:47 (upbeat music)
00:37:50 (upbeat music)
00:38:00 (upbeat music)
00:38:11 (upbeat music)
00:38:13 (upbeat music)
00:38:21 (upbeat music)
00:38:28 (upbeat music)
00:38:40 (upbeat music)
00:38:42 (upbeat music)
00:38:53 (upbeat music)
00:39:03 (upbeat music)
00:39:06 (upbeat music)
00:39:14 (upbeat music)
00:39:31 (upbeat music)
00:39:34 (upbeat music)
00:39:48 - All right, you're watching India Market Close
00:40:01 and it's looking like a decent close for the market,
00:40:05 at least leading into it.
00:40:07 First, weekly Nifty expiry of 2024.
00:40:10 Agam is standing by.
00:40:12 Agam, any excitement happening there?
00:40:14 - Not really, I reckon.
00:40:16 This certainly is good news
00:40:17 for all those who have written options today.
00:40:19 So yes, a decent expiry, a positive one,
00:40:22 as well as a very quiet one
00:40:24 for the Nifty options coming through.
00:40:26 As far as your future is concerned,
00:40:27 we are not looking at any traction whatsoever.
00:40:29 As you can see, very little change in open interest here,
00:40:32 even as the index advances by well over half a percent
00:40:36 for the Bank Nifty futures, also as well,
00:40:38 while the underlying advances by 1%,
00:40:41 well, we are looking at a good 3, 3 1/2% increase
00:40:44 in open interest towards fresh longs.
00:40:46 Now, we were keeping an eye on options
00:40:48 because of the weekly options expiry.
00:40:50 Remember, we were talking about the range being
00:40:53 anywhere between 21,500 on the lower end
00:40:56 and on the higher end, 21,700.
00:40:58 It seems like we're gonna get an expiry bang
00:41:01 in the middle of that mark,
00:41:03 and which also means that a lot of traders
00:41:05 who had in fact written these respective call and put options
00:41:09 are standing to make a substantial amount of profits.
00:41:13 To talk about the change in OI quite quickly,
00:41:16 as far as that goes, as one might expect,
00:41:18 we saw a little more writing around the calls.
00:41:21 Of course, a lot of traders took advantage of that,
00:41:23 but I wanna talk quickly about stocks as well.
00:41:25 Let's pull up that list and see
00:41:26 where is there is in fact an increase in OI
00:41:29 towards longs seen in Alchem Laboratories in India Cement,
00:41:32 Naveen Chlorine, LTIM, and PVR,
00:41:34 INOX on the other, looking at shorts building up,
00:41:37 and among those stocks we saw, well, unwinding,
00:41:39 we see a whole host of names in terms of short covering
00:41:43 for Nalco, Coromandel, IEX, Petronet, LNG,
00:41:46 and Cipla on the other hand, looking at longs and winding.
00:41:49 As I said earlier, it's been a quiet, nifty options expiry.
00:41:54 Perhaps this is not such bad news,
00:41:56 at least for those who were short volatility today.
00:41:59 - Right, not such bad news, but a quiet expiry,
00:42:05 nothing to complain about, I guess, Agam.
00:42:07 But let me quickly move on.
00:42:09 The nifty IT index has been a little bit weak,
00:42:14 has shown some weakness in the current calendar year
00:42:19 over the last two to three days,
00:42:21 and I quickly wanted to have our guests
00:42:24 and some views on it.
00:42:26 Nifty IT, largely flat today,
00:42:28 but we have a Morgan Stanley note,
00:42:30 somewhere demonstrating some level of weakness.
00:42:34 So Sunny, let me first take it to you,
00:42:36 your views on where IT currently stands at.
00:42:40 We saw good 7, 8% rally in December,
00:42:42 followed by a bit of a cool off over the last few days.
00:42:45 Where do you see valuations?
00:42:47 Where do you see pockets of valuation,
00:42:49 mid cap versus large cap IT?
00:42:51 - Yeah, Harsh, so basically,
00:42:54 the rally, what I feel in the month of December,
00:42:57 was fueled by an expectation that
00:42:59 with the rate cut cycle,
00:43:00 which is likely to begin in US,
00:43:03 that would lead to the increase in discretionary spending
00:43:07 by the clients of large IT companies
00:43:09 based out of US and Europe.
00:43:11 And that led to the rally.
00:43:12 At the same time, what I feel is that
00:43:14 there was under-ownership as far as IT sector is concerned.
00:43:17 So we all know there is a low 2 to 3% growth
00:43:21 we are seeing in the large cap IT companies.
00:43:25 And that led to the rally in the month of December.
00:43:28 But having said that,
00:43:30 what I feel is that with the results
00:43:32 season very close by for the IT company,
00:43:35 I would like to hear from the management
00:43:37 the commentary on demand environment,
00:43:39 especially on discretionary spend.
00:43:41 On cost side, I think I'm not worried.
00:43:42 Cost side already has been taken care by
00:43:45 reduction in the attrition rate.
00:43:46 So that part is already taken care.
00:43:49 Now only issue is of demand.
00:43:51 And at the same time,
00:43:53 we have recently seen the large contract of Infosys
00:43:56 getting terminated $1.5 billion contract.
00:44:00 So that shows that maybe all the new dealings
00:44:03 may come at a lower rate, lower price,
00:44:06 and that may hurt the margin.
00:44:07 Again, we need to hear from the management
00:44:10 on outlook on basically demand environment
00:44:12 and margins going forward.
00:44:14 So however, in terms of valuation,
00:44:16 if you ask me large cap versus mid cap,
00:44:19 so mid cap companies definitely are trading
00:44:21 at an expensive valuation.
00:44:23 But having said that,
00:44:25 they are exhibiting a high growth rate also.
00:44:28 So KPIT, a case in point,
00:44:31 growing at 25%.
00:44:33 In fact, that was the only company
00:44:35 which has upgraded its earnings guidance
00:44:37 during the quarter too.
00:44:38 And again, it's a play on electrification
00:44:41 which is going on in the automobile space.
00:44:44 So there are certain things which will keep on growing
00:44:46 at a rapid clip, a case in point,
00:44:48 AI or for that matter, cloud migration.
00:44:50 So a company like IPS Mind
00:44:52 or for that matter, Tata ELXP
00:44:54 may continue to deliver a relatively faster growth.
00:44:56 And hence, they are trading at a premium valuation.
00:44:59 In terms of value buy or comfort in terms of valuation,
00:45:03 definitely large cap IT pack is the place to be in.
00:45:06 In case the management is on the demand environment
00:45:09 for next three to four quarter,
00:45:11 then definitely we may see next round of buying
00:45:13 in the large cap IT company also.
00:45:15 So tepid trade, I would say, in the Nifty IT
00:45:18 definitely has recovered through the day,
00:45:23 but completely flat.
00:45:25 Rajesh, LTI, MindTree, HCL Tech,
00:45:29 you know, losing steam today.
00:45:32 Your view on these two as well as emphasis.
00:45:34 Well, ahead of earnings for these Bellwethers IT companies,
00:45:40 I think some profit taking is happening
00:45:42 in most of the IT space.
00:45:44 As it's still, you know,
00:45:47 the cautious approach is still there on IT space
00:45:50 at this moment.
00:45:51 Although we have seen a good recovery
00:45:53 in month of December,
00:45:54 but overall, if you analyze the long-term structure
00:45:57 for large cap IT stocks,
00:45:59 still they are struggling to cross their, you know,
00:46:01 major threshold level on the long-term chart.
00:46:05 But yes, if we compare with the mid-cap IT,
00:46:07 they are doing good and they are one notch better
00:46:10 compared to the large cap IT space.
00:46:12 So I think outperformance from IT sector
00:46:15 would be in mid-cap IT compared to the large cap IT
00:46:18 is going to continue.
00:46:20 As you talked about HCL Tech,
00:46:22 stock has managed to do breakout in December,
00:46:25 but some profit taking is happening now.
00:46:27 Stocks slip below to 20-day moving average.
00:46:30 Looking at the overall long-term structure,
00:46:32 I think in this corrective move,
00:46:34 the stocks comes near to 1350, 1360 zone.
00:46:38 That is good again, you know,
00:46:40 good level to re-enter in the stock on the decline.
00:46:43 So I think one should wait to buy this stock
00:46:45 around another 2% to 3% kind of correction if you get.
00:46:49 Then one should look to enter in this stock
00:46:51 as overall long-term structure is looking bullish
00:46:53 for HCL Tech.
00:46:55 On the downside, the major support area
00:46:57 is placed at around 1320,
00:46:59 so where one can keep a stop loss.
00:47:01 LTI MindTree, yes, again,
00:47:04 this stock is also pulling off from its recent high.
00:47:07 But if we analyze on the near-term short-term structure,
00:47:10 the major support now for LTI MindTree
00:47:13 is towards 5800, 5750.
00:47:16 So another 3-4% down move we can see in the coming days
00:47:20 and then one can look to again re-enter in this stock.
00:47:24 So wait for some more corrective move in LTI MindTree
00:47:27 as well as in HCL Tech.
00:47:28 I think from IT space, mid-cap IT space,
00:47:31 that from CoForge is looking promising.
00:47:34 This stock may exhibit upward momentum
00:47:38 from the current level looking at the overall structure.
00:47:41 We believe that if CoForge holds 5900,
00:47:43 then one can look to buy this stock.
00:47:46 All right.
00:47:47 So CoForge is definitely on the radar right now.
00:47:52 Now, the only Nifty 50 constituent to gain over 100% in 2023,
00:47:56 a growing share in the EV space,
00:47:58 a strong product portfolio,
00:48:00 and a top pick for brokerages all across the board
00:48:04 was Tata Motors, the only multi-bagger,
00:48:08 at least from the Nifty, in 2023.
00:48:10 It's had a stellar year.
00:48:11 To tell us more about that journey, that drive,
00:48:14 and whether there are speed breakers ahead,
00:48:16 I'm going across to Himansh.
00:48:17 Himansh.
00:48:18 Thank you, Tamanna.
00:48:20 So Tata Motors and its story for 2023.
00:48:23 As the only multi-bagger for this year,
00:48:25 for the past year,
00:48:27 it's a story that one must really look at.
00:48:29 The stock has been up for several consecutive sessions
00:48:32 as it's currently trading near its life highs,
00:48:34 and it's also one of the top pick of brokerages.
00:48:36 But this hasn't been the only year
00:48:37 where it has delivered stellar returns.
00:48:39 In 2021, it was up 2.6 times.
00:48:43 In 2009, the stock returned over five times.
00:48:46 And in 2023, you're seeing it jump two times.
00:48:49 Now, if one were to see
00:48:51 what's been really driving this performance,
00:48:53 it is, firstly, the PV portfolio
00:48:55 that covers its petrol and CNG and diesel models
00:48:59 has been performing really well
00:49:01 with great launches and extremely well performance.
00:49:04 In FY23, the SUVs alone
00:49:07 contributed to 66% of its overall sales.
00:49:11 The EV is another game changer for this company
00:49:13 where the Tata Motors maintains its leadership
00:49:16 with a robust pipeline.
00:49:18 Although it used to maintain its leadership
00:49:20 at 80% of the market share levels,
00:49:22 it's now down to 73%,
00:49:24 yet it's a formidable opponent in the market.
00:49:27 Secondly, thirdly, you have the second consecutive year
00:49:30 where passenger vehicles are set to cross
00:49:32 half a million of its sales.
00:49:34 Lastly, it's on track to become a net debt-free company,
00:49:38 which is something that the credit rating agencies
00:49:40 have also been attesting to.
00:49:41 Now, the multibagger portfolio
00:49:43 is backed by passenger vehicle models
00:49:45 such as Altroz, Tiago, Tiger, and Nexon.
00:49:49 And its EV model, the current portfolio,
00:49:52 also looks really good with Punch, Harrier, and Safari.
00:49:55 The robust pipeline for this EV model, though,
00:49:57 is looking even better this year
00:49:58 with the likes of Harrier EV and Curve EV
00:50:01 that are soon to be launched.
00:50:02 And Curve EV is an especially good one
00:50:04 because it's being made from the ground up,
00:50:05 unlike the previous models that were retrofitted
00:50:08 to the ICE engines and to adapt to the EV model.
00:50:11 Now, let's take a look at what's this EV contribution
00:50:15 in terms of volumes.
00:50:16 In FY24, as of now,
00:50:18 EV contributes to about 13% of its portfolio sales,
00:50:22 and while the volumes stand at about 30, nearly 32,000,
00:50:25 it once was at 2% levels back in FY21
00:50:28 with volumes at around 4,218 levels.
00:50:32 So it's been a journey for Tata Motors
00:50:35 and its EV performance as well.
00:50:38 In terms of its credit rating performance,
00:50:40 let's take a look at that.
00:50:41 You have Moody's and S&P that recently upgraded the stock
00:50:45 with a positive outlook
00:50:46 on the back of its debt reduction plans.
00:50:49 Its net debt has come down significantly
00:50:51 by about 5,000 odd crores over these past two fiscal years.
00:50:55 And lastly, if one were to look what's ahead for Tata Motors,
00:50:59 well, firstly, the EV pipeline that I have mentioned.
00:51:02 Secondly, if it's going to be able to execute
00:51:05 on achieving its net debt target and reducing it,
00:51:08 JLR performance is certainly one key thing to track.
00:51:11 Well, that's a story for another time, but stay tuned.
00:51:16 Right. Thanks so much for that, Himansh.
00:51:20 You know, let me quickly go to Rajesh
00:51:24 for his BTST picks because it's that time of the day.
00:51:28 Very quickly, Rajesh, if you can have your picks.
00:51:30 So, Harsh, Bharti Airtel is looking promising.
00:51:34 Its stock managed to break out of its previous swing high.
00:51:37 Recently, it has made a high of around 1,045.
00:51:41 And now, stock is trading above those levels.
00:51:43 So I think Bharti Airtel can be a BTST trade.
00:51:46 One can expect a target of around 1,075 to 1,085
00:51:51 with stop loss of 1,030.
00:51:54 Another stock that we like at this moment, that is Voltas.
00:51:57 Stock managed to break out on the long-term chart
00:52:00 after a long consideration.
00:52:02 The stock is now breaking out and looking at overall structure
00:52:05 and long build-up was clearly there in the data.
00:52:08 Voltas can scale up to the level of 1,040, 1,050.
00:52:11 So one can buy this stock with stop loss of 995.
00:52:15 And the third stock is from Pharma Space.
00:52:19 That is Arvindo Pharma is looking promising.
00:52:22 I think whole Pharma Space is continuing good uptick.
00:52:27 So Arvindo Pharma one can look to buy for upside target of 1,150, 1,160.
00:52:32 Stop loss would be at around 1,095.
00:52:34 Absolutely.
00:52:36 I just quickly want to address this piece of news on DCM Sriram.
00:52:40 Let me come to you, Sunny,
00:52:42 because you were talking about Vibrant Gujarat and orders coming in
00:52:46 and some news here on DCM Sriram.
00:52:49 The stock is nearly 10% up.
00:52:51 They have signed an MOU with the Gujarat government
00:52:54 to invest Rs. 12,000 crores by 2028.
00:52:57 They have signed the MOU for investment in manufacturing
00:53:00 of chemical and petrochemical products.
00:53:03 You briefly talked about this.
00:53:05 I am assuming we are going to hear more of such news flows
00:53:08 and orders coming in.
00:53:10 Most of them will be MOUs.
00:53:11 That is typically what happens around Vibrant Gujarat.
00:53:14 Anything on your radar here, Sunny?
00:53:17 And would you buy on such news?
00:53:20 Definitely, these are all MOUs and actual investment
00:53:26 take maybe five to ten years to rectify.
00:53:30 So obviously short term there may be a spike excitement based on this news.
00:53:35 But one needs to take into cognition the number
00:53:39 and likely earning delivery in the next four to eight quarters.
00:53:43 Definitely that should be one of the important parameters to look at.
00:53:46 And for DCM Sriram, I have not seen the price list
00:53:50 exactly what they are going to do.
00:53:52 Let me go through the price list just a moment.
00:53:55 And anything on your list for buy today, sell tomorrow?
00:53:59 DTSD, Sunny, what is on your radar for tomorrow?
00:54:04 I would not like to give a DTSD call.
00:54:08 In fact, I would like to give a slightly a call
00:54:11 which can be hold from a positional perspective.
00:54:14 So Engineers India is the one stock which I like.
00:54:16 We have seen a decent up move recently from 160, 170 band to 200 rupees.
00:54:22 But I feel there is a lot of steam which is left in the company
00:54:25 purely based on the robust order book
00:54:28 and the way capex in the oil and gas sector is likely to happen
00:54:31 over the period of next five to ten years.
00:54:33 So I believe Engineers India is one of the sole beneficiary.
00:54:36 And one can definitely add this stock with a medium to long term price target
00:54:40 of 240 to 250 rupees in the portfolio.
00:54:43 And one more company which I like from infrastructure segment
00:54:46 is Wells Fargo Enterprises.
00:54:48 Again, a play on water and roads, very robust order book,
00:54:52 close to 9,000 crore order book, three times annual sales.
00:54:57 What I feel is that profit with the company has posted
00:55:00 a profit of 200 crore profit in financial year 23.
00:55:03 That profit is likely to be double by FY25 in span of two years.
00:55:07 And ROE will expand from 8% to 15%.
00:55:10 Trading at a reasonable valuation, definitely this can also be a part
00:55:13 of short to medium term portfolio.
00:55:15 Right. Thank you so much for that, Sunny.
00:55:19 But quickly on to corporate news.
00:55:21 The Burman family, owners of Dabur India, have called for a probe
00:55:25 into the allotment of shares of Religare Finvest to Rashmi Saluja,
00:55:29 through employee stock ownership plans.
00:55:32 Sajith Mangat joins us with more on that.
00:55:35 Sajith, talk to us about what's happening there.
00:55:37 You know, the Burman versus the Board of Religare Enterprises battle
00:55:42 is getting more aggressive with the latest allegations
00:55:46 coming from the Burman family, which alleged that nearly 2.15 crore
00:55:51 estops were granted to Rashmi Saluja, who is the chairman
00:55:55 and managing director of Religare Enterprises.
00:55:58 This was done through grant of estops and in basically Religare Finvest.
00:56:05 The estops on conversion would be equivalent to 8% equity in the NBFC arm.
00:56:12 This entire allegation has been put by the Burman family
00:56:15 against the Board of Religare Enterprises and the independent directors,
00:56:20 which has been, you know, refuted by the board and the independent directors
00:56:25 claiming that these claims are without any evidence.
00:56:31 In fact, the board had come out with a statement earlier,
00:56:34 which stated that the permission was taken from the shareholders of Religare Finvest.
00:56:41 Also, they had informed the shareholders of Religare Enterprises on September 1
00:56:45 through BSE and the entire approval of this estops was done at the AGM,
00:56:51 which was held on September 26 of last year.
00:56:56 And though the grants have been approved by the shareholders,
00:57:00 it hasn't been brought in front of the NRC, which is the nomination and remuneration committee.
00:57:05 And so no fresh shares have been issued and there is no violation of SEBI's takeover regulation.
00:57:11 Now, this fight has been going on for a couple of months and it started off ever since
00:57:16 the Burman family mounted an open offer to get control of Religare Enterprises.
00:57:22 Absolutely, Sajid. So definitely an interesting story that we'll be tracking.
00:57:27 It's an interesting corporate fight as well.
00:57:30 But we're nearing close and we're looking like we're closing in style on the markets today,
00:57:35 close to the day's high.
00:57:37 The Bank Nifty, fantastic, about over a percent up over the 48,260 mark.
00:57:44 The Nifty sitting comfortably over 21,650.
00:57:48 In fact, looking like you're going to close maybe over 21,670 as well.
00:57:55 So it's been a good day. What has been firing? It's not just your large caps.
00:57:59 The mid cap story has been robust, I would say.
00:58:03 So look at that, nearly 2% up on the Nifty mid cap, 100 small cap stocks also doing quite well, fairly well.
00:58:11 I'll just quickly pull up the heat map and then we'll go into the sectoral stories,
00:58:14 because this is a market where stock specific news, sectoral news, business updates
00:58:19 and order flow updates is driving stock prices.
00:58:23 Bajaj Finance, definitely a case in point where positive business updates are showing,
00:58:29 you know, in the stock price today, very robust numbers over there,
00:58:34 despite some hiccups, some speed breakers from the RBI, constraints on small ticket loans.
00:58:40 But that doesn't seem to be an issue at all. ONGC continues to do very well.
00:58:45 What's in the losing side? So Pharma has lost its steam today.
00:58:48 And we saw that in some of the small cap counters as well.
00:58:51 But Dr. Reddy is down about 2%. Not a great day for the entire auto back.
00:58:58 Bajaj Auto coming off after a huge run up on buyback news as well.
00:59:03 So there you are, you're closing fairly well, I would say, fairly well.
00:59:08 151 points up, close to the 21,700 mark.
00:59:13 So not too shabby at all on a day when we were thinking you would have a tough kind of opening for the Indian markets.
00:59:21 I just want to pull up sectors for a second to tell you how we performed.
00:59:25 And like we said, reality was definitely on top of it.
00:59:28 Look at that, nearly 7% up on the reality index, back nifty up 1% up.
00:59:33 But public sector enterprises, energy, all doing very, very well today as are PSU banks.
00:59:40 And when banks are up, that's generally a good day.
00:59:43 IT stocks, not so much. And that overhang will continue perhaps till we see the numbers.
00:59:48 But on the mid cap space, some complete whoppers in the last end of trade, isn't it, Harsh?
00:59:54 Well, yes, absolutely. You had the likes of a DCM, Sriram, do extremely well on the back of that investment commitment that it has made.
01:00:02 Within, of course, the mid cap bank space also, we saw plenty of activity through the day.
01:00:09 So we did see a lot of support across mid cap counters, which supported the nifty mid cap index up 1.7%.
01:00:17 I'll just quickly pull out names within the nifty mid cap.
01:00:21 And if we can do that as well, we had the likes of a macro tech.
01:00:24 We had the likes of a Godrej properties leading the pack.
01:00:27 We also had the likes of a Torrent Power, which which was up seven and a half plus percent in trade today.
01:00:34 Of course, Torrent Power also on the back of order wins. Outside of that, we had the likes of prestige estates, Oberoi Realty.
01:00:41 So within the top 10, we had almost six to seven within the nifty mid cap hundred, which top 10 gainers of the day.
01:00:49 We had six to seven gainers coming in from the real estate pack, which is quite significant, honestly.
01:00:56 Even among the losers, you had the likes of a mankind and a gland.
01:01:00 So the flavor largely was that Pharma was a bit of a drag.
01:01:05 But with that, we're completely out of time on this edition of the show.
01:01:09 Thank you so much, both Sunny as well as Rajesh for joining us and giving us all of the insights, answering all our questions.
01:01:19 And, of course, giving us giving our viewers such insights.
01:01:22 But for now, from all of us here, Tamanna, myself and everyone who puts the show together.
01:01:27 Thanks so much for watching. Continue watching NDTV Profit more on the other side.
01:01:31 [Music]
01:01:46 [Music]
01:01:55 [Music]
01:02:05 [Music]
01:02:15 [Music]
01:02:25 [Music]
01:02:28 [Music]
01:02:38 [Music]
01:02:48 [Music]
01:02:58 [Music]
01:03:08 [BLANK_AUDIO]