Profit 360 | Nifty, Sensex End Lower Tracking Global Rout | NDTV Profit
- #Nifty, #Sensex end lower tracking global rout
- #SpiceJet's Ajay Singh plans to offload 10% stake in Rs 3,000-crore QIP
Tune in to 'Profit 360' with Nupur Talwar Suri for these and more top news of the day. #NDTVProfitLive
- #SpiceJet's Ajay Singh plans to offload 10% stake in Rs 3,000-crore QIP
Tune in to 'Profit 360' with Nupur Talwar Suri for these and more top news of the day. #NDTVProfitLive
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TVTranscript
00:00ICICI Bank and Infosys lead the losers.
00:05Defense stocks rally after the government approved the purchase of defense equipment
00:10worth 1.45 lakh crore rupees, Mask on Dock, Paris Defense and HAL close higher.
00:19After Europe and Japan, it's now China's turn to cut rates. Bloomberg reports that China may
00:25cut interest rates by 80 basis points on mortgages worth 5.3 trillion dollars in two steps. The first
00:32cut may happen in the next few weeks, while the second one is expected at the beginning of next
00:37year. Stocks of oil marketing companies gain after crude prices stumble to a nine-month low.
00:45Below $75 per barrel, prices fell due to Libya agreeing to resume production.
00:51SpiceJet is planning to raise 3,000 crore rupees via a QIP. Sources say CMD Ajay Singh
01:00might dilute 10% stake in the company. It's an NDTV profit exclusive.
01:07As its market share dips, McDonald's India decides to go healthy. The fast food chain
01:13has launched a new millet-based burger bun in West and South India. Ragi Bajra, Kovar,
01:20proso, podo are the key ingredients.
01:27Wrestlers Bajrang Punia and Vinesh Phogat join the Congress party to contest
01:31in the upcoming Aryana elections. Phogat will fight from the Julla seat,
01:37while Punia will defend Congress in the Badli constituency.
01:51Good evening and welcome. You are watching Profit360 on NETV Profit and I am Nupur Talwar
01:58Suri. The markets were in the red today, all day today in fact. Now, they mirrored the global
02:04markets which ended lower earlier in the day and Neeraj Shah is joining us with a look at
02:10all that action that took place in the Lal Street today. Well, an interesting day of market. You
02:17have to say that while the indices closed lower, it's a day of resilience. Because if you look at
02:22the intraday chart of the Nifty, you will see that we started off about 0.7, 0.8% lower, which itself
02:28was outperforming the rest of the Asian pack. But look at this, we closed in at the highest
02:33point of the day for the Nifty 50. And on the same breath, let's look at the small cap index
02:37with the index and the chart. And you will see that the small caps really did well for themselves.
02:43So, we closed at the highest point for the Nifty. For the small cap index, well,
02:48I mean, interesting close and interesting trend throughout the trading day in the green.
02:55Okay. Now, IT suffered. Let's get the heat map up on the screen. IT suffered and therefore,
03:00you had upstream oil and IT being the principal culprits. We brought down 3%.
03:05Coal India had some individual issues around coal price corrections as well, but ONGC.
03:09And then at the broader end of the spectrum, Oil India too corrected. So, oil upstream
03:13certainly had pressures for itself. Some auto names came under pressure, but largely IT
03:17and upstream oil. On the flip side, you had strength in crude price beneficiaries. So,
03:23Asian Pains, Grasim did very well. Some FMCG names came to the fore. Cement saw some buying.
03:29Ultratech is not the only one, by the way. And there was strength in pharmaceuticals. In fact,
03:35if you can get the Nifty 500 stocks now, you will see the strength in pharma. Look at those gainers
03:41there. Pyramil Pharma, Jubilant, Biocon, this whole bucket did well. The talk is that maybe the
03:47Biosecure Act gets introduced in the US next week and that will help some of the Indian exporters,
03:53particularly the CDMO players, which is why a clutch of these stocks did really well.
03:57The strength in CCL products, strength in Mazgon Dock, some strength in PNB housing and prestige
04:02as well. What didn't do well, and of course, the paint companies, right? So, Berger, Indigo,
04:06etc., in addition to Asian Pains did well. What didn't do well, GIC, the block deal, not great.
04:11Oil India, Oil Upstream, like I said, didn't do all that well. There was weakness in Federal Bank
04:16because of the Morgan Stanley downgrade as well. NetNet, Defense did okay. Some of the Oil Upstream
04:25did poorly, but Downstream didn't do as well as anticipated. But a day of resilience. Let's see
04:30what tomorrow is in store. All right. Thank you very much, Girej, for joining us on that. Now,
04:34moving on, defense stocks, of course, chaired the market today. The government's proposal to
04:38purchase defense equipment worth 1.42 lakh crore rupees as a part of the Make in India program
04:44gave these stocks a boost. Anushi is here to talk us more over this.
04:50The defense sector in general is back in focus. Now, this is after the defense
04:54ministry has given out green light about 10 capital acquisition projects which add up to
04:59about 1.45 lakh crore. So, just more details on this as we see 1.45 lakh crore and these proposals
05:06that we have seen are across various sectors and various stocks in result of these are in focus. So,
05:12first is the procurement of future ready combat vehicles. So, for these, stocks which remain in
05:17focus consist of Bharat Porsche, there is Bharat Porsche, L&T and even another stock. BEML is
05:25another stock which should remain in focus for this. Other than that, even procurement of air
05:29defense and fire control radars, we have stocks like BEL in focus in this scenario. And along
05:36with this, even L&T is one of the major players that is there, Bharat Electronics and Larsen
05:40Toubro over here. But if you move on to the forward repair team tract over here, then this
05:44is designed and equipped by Armoured Nigam Limited. So, that is on the watch out for this.
05:50Now again, the focus shifts back to the shipbuilding companies and Hindustan Aeronautics,
05:54they were in focus yesterday and remain so focused in this one as well. There have been
05:59three proposals which have been approved for these to enhance the Indian Coast Guard
06:04capabilities over here. So, if you are looking at Dornier 228 aircraft, so HAL, Hindustan
06:10Aeronautics is the main manufacturer in this scenario. But if you look at some other key
06:14developments, there is next generation fast patrol vessels and there is next generation
06:19offshore patrol vessels also which bring shipbuilding companies like Cochin Shipyard,
06:23Mascow Dock and Garden Reach in focus again. All right. Thank you very much for that
06:29comprehensive update. Let's now take a look at the global headlines. In fact,
06:33China is considering cutting interest rates on as much as $5.3 trillion of mortgages in
06:39two steps. This is according to a Bloomberg report. Now, this move is aimed at lowering
06:44borrowing costs for millions of families while also mitigating the profit crunch on its banking
06:51system. Now, financial regulators have proposed reducing rates on outstanding mortgages across
06:56the nation. The rate cuts of about 80 basis points will take place in two parts. The first one may
07:05come about in the next few weeks while the second cut would take effect at the beginning of next
07:10year. Now, crude prices have dipped over four percentage points globally trading at a nine
07:19month low. Now, the fall in prices is due to two rival factions in Libya reaching an agreement to
07:24begin production again. And weak demand and poor manufacturing data from the US and China too has
07:31taken their toll. One of the main beneficiaries of this fall in prices are oil companies and shares
07:36of paint companies also saw some gains on this. Now, crude oil is a key input component for paint
07:44manufacturing and a drop in this raw material will lower costs, aiding margins going forward.
07:51Well, MK's Nirav Sheth believes that the oil fundamentals are worsening sharply and this time
08:00it could be structural in nature. So, I think finally the price of any commodities are functional
08:07demand and supply, right? So, I don't think that we are seeing anything new as far as the oil demand
08:15is concerned, right? So, if you look at let's say OECD as a basket, then even pre-pandemic
08:22the consumption group was declining. So, the fact that your oil intensity as a percentage of GDP
08:27consumption tends to decline as we become breacher is a very well-known fact.
08:33What is obviously the new key on the block is we have seen a significant decline in the oil
08:40consumption by China, part of that could be inventory, you know, running down the inventory
08:46and stuff like that. But we do know for sure that if I take a three-five-year perspective,
08:52then, you know, there is big unwinding in China. It's as easy as you want to call that way.
08:59Now, the US markets ended in a deep rout as US manufacturing activity came in weaker than
09:04expected. Now, this sparked recession fears. We spoke to Peter Maguire, the CEO of Ex-Im Australia,
09:09on how should investors position themselves in a volatile market and he says that investors must
09:14keep an eye on structural weakness ahead of the rate cut. First off, you've got NFP coming out
09:22Friday, how's that going to look? Then you've got the jolts report, you've got Thursday as far
09:27as tomorrow, that'll be the non-manufacturing. So, all of that moving forward, PMIs, then we've
09:32got to see how weak, if there is structural weakness building on last month as far as NFP,
09:39that's really going to concern Fed share power because it's two weeks today is the 18th and that
09:44will be decision time for the Fed with policy. Is it going to err on the side of 50 or are you
09:49going to be stuck at 25 basis points? The jury's out. I think it's a 50-50 throw the dice at the
09:55moment and then naturally moving up to two months tomorrow when you've got the elections.
10:00Now, onto an exclusive from the aviation space, SpiceJet is planning to raise
10:043000 crore rupees through a QIP. Aditya Rao joins us with more on this. Now, Aditya,
10:10what are you picking up and how much of a stake is the CMD Ajay Singh planning to offload?
10:16Yeah, so exactly we are gathering the information from our sources that SpiceJet QIP roadshows are
10:24being going to held and these roadshows will be held in Hong Kong, Mumbai and also Singapore will
10:31be there as one of the destinations for this roadshow. And from these roadshows, SpiceJet
10:37is going to garner interest among the investors for this particular QIP. And one more important
10:42point that is coming out from our sources that is that CMD Ajay Singh is likely to dilute 10%
10:48of his stake in the company and SpiceJet is looking to raise around 3000 crores from this
10:55particular QIP. And also one more important and interesting point that is coming out from the
11:00sources is that ICICI Securities, JM Financial and DAM Capitals are going to be the merchant bankers
11:06for this particular issue. So now we need to look forward that how this QIP turns up and how
11:12much interest is the budget carrier is going to garner from the investors because right now we
11:18need to factor in that this particular airline is going through a lot of financial crisis. Recently
11:24in the news, it was there that the airline has not been able to honour the salaries of their
11:30employees and also there were some disruptions in the flight operations as well. So this particular
11:36QIP is going to be a key for this airline. All right, Anita. Thank you very much for
11:41joining us to bring us those details. Now staying with developments from the Aviation
11:44Spare Space, I beg your pardon, India is planning to open a maintenance repair, an overall base in
11:50Bengaluru and this is with an investment of 1400 crore rupees and Haripriya is joining us to tell
11:56us more about this. Hi, Haripriya. Haripriya, what does this mean both in terms of employment
12:02generation and what is actually planned? That's right. Air India is coming up with
12:12a maintenance repair and overall facility with an investment of 1400 crores and it says that
12:17once the facility is completed, it is expected to create employment of about 1200 people and
12:22the MRO will also have about 12 hangars initially to accommodate narrow body and wide body aircrafts
12:29and this will be fully operational by 2026. It's being built on a 35 acre land near the
12:34Kempegowda International Airport after the company had signed an MOU with the Karnataka
12:39government previously. Now this augurs well with Air India's plans to make Bangalore one of its
12:44prime hubs amongst others and for this integration, CEO Campbell Wilson was also here
12:53and he said that about 87% of narrow body aircrafts will be upgraded by June 2025
12:59and the retrofit program for the wide body aircrafts will start next year. He did not
13:05speak much about the Air India Vistara merger which is in focus right now but he mentioned
13:10that the company is currently consolidating the organization structure and putting support
13:15systems together and aligning the process and practices of both Vistara and Air India.
13:20All right Haripriya, thank you very much for joining us for those details. Now moving on,
13:25GICRE is also in focus and this is because the government will be offloading nearly 7% stake
13:31via an offer for sale. Pallavi who tracks this is joining us. Pallavi, tell us more of what
13:38you're learning. The offer for sale in GIC open today for non-retail investors. Retail investors
13:45and employees can bid on Thursday. Now the government is expected to offload about 11.9
13:51crore shares. That's at 395 rupees which means that the government is broadly raising about 4700
13:59crore rupees from this stake sale. Now we know that the government's track record with disinvestments
14:06has been fairly shaky. In its previous term in fact the government was unable to meet its
14:12divestment target for the most part and the miss was by a large margin which also meant that we saw
14:20the government scaling down on its targets. In fact at some point like if you look at the latest
14:27budget documents you will no longer find disinvestments listed separately which means
14:36that it's not possible to ascertain how much the government plans to raise any more purely through
14:41disinvestments. There has been an apparent rethink on the PSU policy for disinvestments
14:49and in case of GIC we are going to be tracking closely how this take sale evolves and what it
14:56could possibly mean for more disinvestments by the government going forward. All right Pallavi,
15:02thank you very much for that. Now it is the opening day of the Powergen and Indian Utility
15:08Week event that's being held in New Delhi and Rishabh Bhattnagar is at the event and joins us
15:13now. Hi Rishabh, give us a broad outline of what happened today and any big news points that you are
15:20getting your hands on. Right we're at the Powergen Bharat Electricity event in Delhi,
15:30the 2024 edition of this event. Now around me we're at the exhibition hall there's about 200
15:35plus exhibitors displaying the latest innovations in renewable energy as well as all sorts of new
15:42energy forms. Apart from this exhibition the highlight of today was of course the Union
15:48Minister for New and Renewable Energy Prahlad Joshi coming up and he also spoke about how
15:53India requires about 125 gigawatts of additional renewable energy capacity by 2013. He also urged
16:01a lot of foreign players to actually come in and invest in India's energy sector. There was also
16:07talk on how demand was supposed to sort of flatline but that has not happened in India. Rather demand
16:13is continuously peaking up. We had this input coming from the Central Electricity Authority
16:19chairperson as well. Apart from that NDTV reporter Vikas Srivastava and I we also spoke to senior
16:25executives at the Hydrogen Association of India. We also spoke to listed firm Acme and GE Vernova
16:32to understand the sort of green hydrogen demand that there is today in the country and what can
16:37be done to actually bring green hydrogen costs down to about 2 to 3 rupees, 2 to 3 dollars per
16:43kg. As well as to understand how gas turbines can actually be a good intermediary in sort of
16:49the adoption of green hydrogen and get the infra built up first and then look at demand.
16:56Trisha, thank you for that very comprehensive view about what went on. But stay with us we
17:03are going to come back to you in a bit. Now in a move that is aimed at making electricity more
17:06affordable Prahlad Joshi the Minister for New and Renewable Energy has said the tenders for
17:11offshore wind development projects for Gujarat are in the advanced stages. He also said that the next
17:17stage our tenders will be invited from Tamil Nadu.
17:47Now during the event Trisha also spoke to Dr. RK Malhotra he is the President of the
17:59Hydrogen Association of India. They spoke about how the government is working to make
18:04green hydrogen more cost effective. Green hydrogen mission which was announced by the
18:11Government of India Honorable Prime Minister had announced last year and that has been
18:16progressing well. The government has been monitoring it also and supporting it in various
18:21forms in terms of supporting the manufacturing of electrolyzers through PLI schemes and also
18:32giving some incentives for green hydrogen production. Of course since this is a new
18:38thing which is happening the cost of green hydrogen at this point of time is high.
18:42But we expect that as we go along the cost will come down. Of course the hydrogen which is
18:49produced from natural gas by our refineries and fertilizer units is about one and a half dollar
18:54per kg and green hydrogen is about three to four dollars a kg. So this gap has to be reduced in
19:00due course of time which will happen with the capacities which will be built up. More people
19:06will come in, more technologies will come in. Government is also supporting the R&D
19:11in various sectors and all this will reduce the cost.
19:16Now speaking about meeting power demands for increasing number of customers,
19:20Anil Sardana of Adani Energy said that transitioning to green hydrogen would
19:26not only keep the environment clean but also save costs for consumers.
19:31It will be surprising for people to know that today we are reaching almost 40 percent green
19:38electrons within the bulk power that we source which is the highest that any DISCOM has in India.
19:48And when I add to that the contracts that we have placed going forward with the due
19:54approval of regulators we will be 70 percent green electrons by 2027.
20:02Wow. Now that has two advantages. One it is low cost and the second advantage is
20:12that it's transition by virtue of the advantage that we are passing to the consumers.
20:19Now according to media reports the Indian government is said to have been considering
20:22the possibility of setting up a global sovereign wealth front. We in fact have Subhana Sheikh
20:28joining in with more details on this. Hi Subhana. Give us more details of what the
20:33thought process essentially behind this is and also share with us more details in terms
20:39of which countries actually have these wealth funds.
20:44Hi. So yes the government is said to have been in preliminary discussions with
20:51you know the RBI, SEBI and IFSCI gift city for setting up of a sovereign wealth fund.
20:58They've also said to have been in talks with 30 PSUs to basically see the possibility or success
21:04of this sovereign wealth fund. So now let's break it down and see you know what exactly
21:09is a sovereign wealth fund. It's basically an investment fund which includes bonds,
21:13stocks, real estate and precious metals. And this would be a state owned fund which
21:19would also invest in alternative investments such as private equity fund.
21:22Now a sovereign wealth fund is basically funded by foreign exchange reserves. Now in that case
21:29it's the RBI. Why is there a need for a sovereign wealth fund is basically it will help India
21:36increase its global footprint. It could also open doors for opportunities to invest in
21:41infrastructure including housing, railway projects globally. While India does give grants and aids
21:47to other countries, a sovereign wealth fund can actually help increase its ability to invest in
21:53infrastructure or help in other projects abroad such as Africa. It's said to have been a long
22:01term program which could make India a global player. It can also attract other countries
22:06to invest in this fund. Now there have been global examples of sovereign wealth funds.
22:10There are dozens of countries like China, Norway, the UK. There are several Gulf countries such as
22:19Kuwait and UAE that have their own sovereign wealth funds that invest in assets across the
22:24world. The US doesn't have a sovereign wealth fund but there are several states such as Texas
22:32that have similar funds. Now how will this help India? So basically it will help India in securing
22:40critical minerals with agencies like ONGC Videsh. It will also help you know in India meeting its
22:49oil and gas energy needs in the medium to long term. Now the way forward would be it's considered
22:56as a right step directionally but it's yet to be known as to what kind of investors we will see.
23:04So yes that's on the sovereign wealth fund. Thank you very much for joining us and giving
23:08us those details. Now sources have told Informist that tea prices are likely to rise.
23:15Hindustan Unilever and Tata Consumer are likely to increase tea prices soon.
23:22Now sources to Informist have said this that you know for HUL, Tata Consumer they may hike the tea
23:29prices because of cost pressures. Even in Q1 we've seen that margins in the tea segment have seen
23:35some pressure and they've seen pressure in terms of demand and volumes as well. Now the regional
23:41tea retailing companies have already raised their prices. Now HUL has brought 18% less tea during
23:46April to August via auctions as compared to the same period last year is what Informist has to say
23:51and they're also seeing inflation in tea procurement costs. So HUL will continue to
23:56monitor pricing across the product portfolio and they will continue to invest in branding in tea
24:02segment as well. So far this is the information we have but even in Q1 as I said companies like
24:07HUL and Tata Consumer have seen pressure in terms of margins because of rising tea prices.
24:15All right thank you for that. Now as McDonald's tries to rev up its shrinking market share it has
24:20decided to turn towards healthier food options. The burger chain has now launched a millet based
24:26bun in west and south region. Maitri Seth spoke to the MD of Westlife food word
24:33Saurabh Kalra that runs the franchises in the west and the south of India
24:37about why he thinks this will be beneficial. I think we were going through a cycle and
24:44in the cycle H1 I don't think has been going as per our expectation and like you said Q1
24:50results were not the best but when we look at the vision 2027 I think we still feel very
24:56confident that we are in line in achieving our vision 2027 and our belief is that H2 will be
25:01far better than H1 and you will see activity around menu etc. Millet bun is just the start.
25:05So hopefully you will see the tight shifting in H2. And also there are concerns around food
25:11inflation not just that there are concerns around the operations of QSR at this point.
25:17So how are you planning to mitigate those because and especially when the same sales
25:21store growth is less what are your plans around store expansion?
25:25We have given a guidance that in vision 2027 we need to be 570 to 630 stores for that we need to
25:30do around 40 to 50 restaurants a year. I think last year we opened around 42 restaurants. I
25:37think we will be in line to open similar 40 to 50 restaurants even this year.
25:41Now the IMD has issued a severe rainfall alert for 4 regions in Telangana and Andhra Pradesh.
25:48Heavy downpour is expected in isolated areas of Bhoopa, Palli, Asifbad and Mulugu. Now these
25:57areas are likely to witness thunderstorms accompanied by strong winds and lightning.
26:02Meanwhile the water level in the Godavari river has crossed the first warning level in Telangana.
26:06The river reached 43 feet at 1 this afternoon prompting heightened alerts in the region.
26:19Well wrestlers might become netas as the Congress inches closer to revealing its
26:23candidates for Haryana's upcoming assembly elections amid growing speculation. Rahul Gandhi
26:28met with star wrestlers Vinesh Bhogat and Bajrang Punia fueling rumors that they might be on the
26:33party's ticket. The Congress Central Election Committee has already finalized 34 candidates
26:38with the full list expected shortly. Bhogat and Punia had earlier accused the WFI chief
26:44Brijbhushan Singh Sharan of sexual exploitation as AICC General Secretary Deepak Barbaria stated
26:52clarity on the inclusion is expected by Thursday.
26:56And moving ahead with some sports news Indian para-athletes have scripted history in Paris by
27:00winning 21 medals which includes three gold, eight silver and ten bronze medals. With this
27:07medal tally the Indian contingent has surpassed their highest medal tally of 19 medals at the
27:12Tokyo edition three years ago. Today in the shot put finals three Indian athletes participated in
27:20the discipline out of the three Sachin Khiladi and had an incredible throw which secured the
27:30eighth silver for the country in the paracycling event Arshad Saik and Jyothi Gaderia finished
27:37last in their individual events. Indian shooters saw a dip after completion of four series of
27:42disciplines. Rudranj stood at the 18th position while Nihal Singh was at the 23rd position.
27:51Paralympics events will end on the 8th of September and still the Indian contingent
27:56has a few disciplines to get over with. Let us see how the tally looks at the end of the Summer Games.
28:02And on that note that's all we have time for right now. Thank you for joining us.
28:32you
29:02you
29:32you