- #Sensex, #Nifty recovered from day's low to end at record close
- India's biggest #IPO gets #SEBI's green light
Tune in to 'Profit 360' with Nupur Talwar Suri for top news of the day. #NDTVProfitLive
- India's biggest #IPO gets #SEBI's green light
Tune in to 'Profit 360' with Nupur Talwar Suri for top news of the day. #NDTVProfitLive
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NewsTranscript
00:00:00Hyundai Motor IPO gets SEBI's green light and is set to launch in October.
00:00:07Losing your cool over spam calls? Airtel promises to fix that with their new AI-powered
00:00:13delusion tool. This will alert users about any spam calls they're getting in real time.
00:00:22All electric customers face issues with after-sales service. NDTV Profit shows
00:00:26the ground reality of the company's service centers.
00:00:31The second phase of Jammu and Kashmir election is underway across
00:00:3526 constituencies. Voter turnout was recorded at 46.1% at 3pm.
00:00:40Hello and welcome. You're watching Profit360 on NDTV Profit. I'm your host, Mallika Mishra.
00:00:58And along the next half an hour, we'll bring you the latest on markets along with national
00:01:02and international headlines. The markets closed at record high today. Most sectoral indices
00:01:07weren't green. What led to the market rally? Harsh joins us with a quick market wrap.
00:01:37A lot of these stocks reversed towards the fag end of the day and turned green.
00:01:43And that's why the breadth here looks strong. But let's pull up the overall breadth of the market.
00:01:47And what you'll see is it's strongly in favor of the decline. So the breadth otherwise was weak.
00:01:53And let's pull up the nifty mid cap and small cap because that's where most of the pain actually was
00:01:58even though they closed just off their lows. But nonetheless, both the nifty mid cap and small cap
00:02:05indexes went home with negative or rather in the red. And therefore, what you saw was some bit of
00:02:14breadth which was poor. Let's pull up the sectoral heat map, try and zoom in on which sectors were
00:02:22buzzing. And first off on the sectors which closed in the red, the nifty PSU Bank, the nifty IT
00:02:28index, which likely led to that spike as well right towards the end. And the nifty FMCG was
00:02:36down around 0.4 odd percent, nifty PSU Bank down 0.9 and nifty IT down 0.7. The gainers, the nifty
00:02:44reality in the broader markets, but nifty metal continues a solid week that it has had. And the
00:02:49nifty media was in fact a buzzer in trade on the back of Z doing very, very well. Let's pull up
00:02:55the BSE 500 stocks, top gainers, top losers. And there you go, you'll see all of those stocks. Ease
00:03:01my trip, of course, block scene there, need to watch as to who has really sold that large chunk.
00:03:07PB Fintech down 6% odd. Again, good volumes on PB Fintech scene. IEX down 4, AstraZeneca down 5
00:03:15after a very solid day yesterday. In terms of some of the gainers, Z Entertainment was up 5%,
00:03:21which led the nifty media higher. Thank you for that market rap, Harsh. HDFC Bank's share
00:03:28price hit a two month high after HSBC raised its target price for the stock while maintaining a
00:03:34buy call. The development comes a day after NDTV Profits exclusive on HDFC Bank. My colleague
00:03:40Vishwanath Nair joins it with a detailed report. Vishwanath, what are you picking up?
00:03:45Analysts at HSBC Securities believe that it's a good thing that HDFC Bank will look at slowing
00:03:52down its loan growth and offload some of the assets that are there on its books,
00:03:56because this will bring down the pressure on the bank. Now, what exactly are the analysts saying?
00:04:01Essentially, they're quoting an exclusive story that NDTV Profits reported on Tuesday, which said
00:04:06that HDFC Bank will look to offload about 60,000 to 70,000 crore worth of auto as well as mortgage
00:04:12loans from its balance sheet. This is a process to free up the liquidity for the bank, but also
00:04:18bring down its credit deposit ratio, which is currently at over 100%. Remember that any credit
00:04:23deposit ratio above 100% indicates that assets are over and above what the deposits are on that
00:04:30balance sheet, and that reduces the headroom for the growth for the bank. So, what are HSBC
00:04:34analysts saying? Essentially, they're saying that by offloading these assets and combining that with
00:04:40deposit accretion and other measures, HDFC Bank can manage its balance sheet much better,
00:04:46bring down that credit deposit ratio, maintain the net interest margins for the bank, because
00:04:52a lot of the high-cost assets will be off, and the pressure on accumulating more and more deposits
00:04:57will come down, and that will help the bank stabilize in the future. So, while HSBC analysts
00:05:03are cutting earnings estimates for the next financial year for FY26, they are, however,
00:05:09raising their expectations from the bank, because the return on assets is likely to improve.
00:05:17Thank you for explaining that to us, Vishy. The market is abuzz with Hyundai India's IPO,
00:05:23which is said to be India's largest IPO worth $3.5 billion. My colleague,
00:05:28Puneet Javeri, joins in with an overview of the IPO.
00:05:33SEBI has potentially approved Hyundai's IPO, according to media sources,
00:05:36which spoke to NET Profit. And it's a good time to talk about the company's DRHP as well as its
00:05:41financials as well. They are looking to raise roughly about $3.5 billion, as you rightly said.
00:05:46But the final value is yet to be ascribed. But it's important to see where Hyundai stands in the
00:05:51current passenger vehicle market specifically. And when you look at Hyundai's financials over
00:05:56the nine months of FY24, we can see that the company deported roughly 52,000 crores of revenues,
00:06:01while margins were also maintained at a very strong 12.7%. This is up from roughly about 110
00:06:07basis points from a couple of years ago. But it's also important that the profitability metrics have
00:06:11been maintained very high, roughly around 4,300 odd crores. And this is also higher by roughly 50%
00:06:17to what it deported in FY22. When you move forward and look at this unit as well as the sales growth
00:06:22of the company, they've reported roughly 7.7 lakh units that they sold in FY24. And what's also
00:06:28important is that this was a growth of about 8% from the previous year, and also major growth from
00:06:34the FY22 levels as well. But take a look at the export number as well. The company is exporting
00:06:38roughly 1.6 lakh units that are made in FY24 within India to other Southeast Asian countries.
00:06:44And it's also the highest exporter of cars from India. So when you look at the share of exports
00:06:50of Hyundai's to other countries, roughly 24% of sales comes from outside India. And regions such
00:06:56as Latin America as well as Africa were the mainstream of the company, but they've also
00:06:59increased their focus in Middle East as well as European Union going forward. And that's doubled
00:07:04from the 6% that it had in Middle East and European Union in FY22. Currently, it has 24%
00:07:10market share in exports. So every 24 cars exported out of India, out of total of 100 that are going
00:07:16are of Hyundai brand. When you look at the company's current market share in India specifically,
00:07:21Maruti is number one currently at around 41% market share. But Hyundai has maintained the
00:07:26market share over the last two years around 14.5 to 14.6%. Despite strong competition from the
00:07:31likes of Tata Motors as well as Mahindra and Mahindra. So these top four players have
00:07:35consolidated the market. When finally when you look at valuations, while Hyundai is you know,
00:07:40currently half of the revenue of what Maruti provides, the valuations are slightly more
00:07:44expected on EV to EBITDA basis as well as market capital revenue. But definitely the IPO whenever
00:07:49launch is going to bring strong interest back in the automotive market.
00:07:53Thank you so much for that comprehensive breakdown Puneet. Now, another much anticipated IPO,
00:07:59the National Stock Exchange is expected to complete documentation by early next year.
00:08:04Bloomberg has reported that the NSE valuation has doubled to $36 billion amid IPO hopes.
00:08:11Sources have in fact even indicated that the valuation of the NSE could increase ahead of the
00:08:16IPO. So that's something to keep an eye on. Now, if you are an Airtel user, and you're tired of
00:08:22spam calls, here's some good news for you. The company has launched an AI tool which will alert
00:08:28users about spam calls in real time. Rishabh Bhatnagar joins in with the key takeaways of this
00:08:33tool. Airtel has launched India's first network based AI powered spam solution. Now, why this is
00:08:41important is because Airtel is the second largest telecom operating and this will be a network
00:08:47powered. A user will not be required to download any sort of an app or software, it will be
00:08:52automatically implemented on the Airtel network and Airtel users. What it will do is that it will
00:08:59alert users before and in real time, whenever a suspected spam call or an SMS is coming to their
00:09:06device, it will be directly alerted to an Airtel user. This is possible because of an AI powered
00:09:13model that Airtel has deployed that analyzes velocity of calls, frequency of device and
00:09:19SIM change, as well as robo calling devices alongside government agency inputs. What it
00:09:25also does is analyze about the 1.5 billion SMSs and 2.5 billion calls that are placed on the Airtel
00:09:32network every day. This comes because spam and scamsters operating through voice calls has become
00:09:41a menace. Even though this sort of solution is not being able to be done via OTT apps like WhatsApp,
00:09:51it will be brought in through changes through telecom operators like Airtel.
00:09:56Now, apart from explaining that to us, Rishabh also spoke exclusively with Bharti Airtel CEO
00:10:03Gopal Vittal regarding the new AI tool and look at what he had to say about it.
00:10:09This is a solution that we've been working on for the last 12 months. We have, you know, hundreds
00:10:13of data scientists that have actually been working on it. And what we've done is we have identified
00:10:18every, we've looked at every message that's appearing on our network. One and a half billion
00:10:22messages get exchanged on our network every day. Two and a half billion calls get made on our
00:10:27network every day. So we look at every single one of those. We put them into an AI model,
00:10:33which looks at over 250 parameters, complex parameters, you know, many things, velocity of
00:10:39calling, frequency of calling, whether the device is being changed, whether KYC is in different names.
00:10:44And based on that, on a real time basis, even before the call is connected, we are able to
00:10:50insert an alert on the dialer or on the message that this is a suspected spam. That, in my view,
00:10:57really puts the power back in the user's hands to make sure that they are protected.
00:11:03Moving on to another important story, Ola has quickly emerged as India's largest electric
00:11:08two-wheeler maker. But along the way, there have been several complaints about the company's
00:11:13after-sales experience. NDTV Profit did a reality check in two major markets,
00:11:19Mumbai and Bengaluru, at Ola Electric Service Centers. Now,
00:11:22here's a look at what the customers have to say about their experience.
00:11:48Now, my colleague Tushar joins in with the key takeaways from this report. Take a look.
00:12:16So, when you are the market leader, like Ola Electric is selling about one out of three
00:12:21electric vehicles, electric two-wheelers in India, that also comes with a sort of responsibility to
00:12:25service all the vehicles you are selling. So, latest numbers are actually a few summation
00:12:29of the last five or six months. If you see, the company is consistently selling about 35,000
00:12:34electric two-wheelers in India, despite the removal of a fame subsidy that wrapped up in
00:12:40March. When you're selling 35,000, but along with it has come a number of complaints,
00:12:46from users, as we actually saw in the ground report right now. So, customers say that Ola
00:12:52often lacks spare parts. That's also due to the fact that Ola has adopted a direct-to-customer
00:12:59model, where it owns and operates both its showrooms as well as service centers.
00:13:04That can actually delay the supply of parts to these centers from a nodal center in Bangalore.
00:13:10So, that is one reason for the short supply of vehicles. Also, remember that these are
00:13:15also electric vehicles, come with teething issues as well. The fact that motor or the
00:13:21battery is malfunctioning should not be expected of a company that's shipping 30,000 vehicles a
00:13:26month and has been in the business for about five years now. Customers also are citing delays,
00:13:34recurrence of issues, like once they get fixed, they also come back in a week or so. So, they
00:13:41have to take the vehicle back again. Another person actually commented that the service
00:13:45center is actually far off. So, taking their vehicles is actually cumbersome, because you
00:13:51have to cart them on a porter service to these particular centers. Issues have also been raised
00:13:56on warranty as well as insurance. The customer said that most service centers are not aware of
00:14:03the warranty period or the insurance that is applicable on their model of the scooter.
00:14:07So, again, a lacunae there, sort of, in terms of the Ola service experience. Finally,
00:14:14Ola also owns all its experience centers, about 500 experience centers, 430 service
00:14:22stations across India, hardware and software glitches. So, essentially, what we can say is
00:14:26that while it is the biggest company or electric two-wheeler maker in India, there's a lot wanting
00:14:32in terms of the service experience that comes after, because we must remember that the vehicle
00:14:36ownership begins after a vehicle is purchased and does not end at the showroom itself.
00:14:42Thank you for that, Tushar. Now, on to some news from the derivatives market.
00:14:46Sources tell NDTV Profit that SEBI is all set to meet on 30th September to discuss and implement
00:14:52measures to prevent losses by traders in the F&O segment. My colleague, Charu Singh,
00:14:57has more details on this. Over to you, Charu. As we know for now is that Securities and Exchange
00:15:04Board of India is going to be convening its board meeting on Monday and its agenda looks like this,
00:15:09that firstly, they are going to be discussing about the F&O frenzy and the measures that
00:15:13they spoke about in their consultation paper to curb the frenzy. Apart from that,
00:15:18there could be discussions about a new asset class between mutual funds and PMS and there
00:15:22could also be some conversation around the entire employee issue with the SEBI that we have been
00:15:26seeing in the past few weeks. Now, in the consultation paper to curb the F&O frenzy
00:15:31that came out in late July, we had some seven measures that were supposed to be implemented
00:15:37that were proposed by SEBI. Of these, the most important ones were proposing contract sizes to
00:15:41be increased to around 15 to 20 lakhs from the current 5 to 10 lakhs which was set last in 2015.
00:15:50In fact, there was also a proposal to increase this contract size further in the next six months
00:15:54of implementation to almost 30 lakh rupees. Apart from this, there could be some more things
00:16:02as per the previous consultation papers as well and SEBI had also come out with a recent study on
00:16:08the losses faced by individual traders in the F&O segment which averaged losses of rupees 2 lakhs
00:16:14per trader, 9 out of 10 individual traders facing losses. So, let us see what actions are finally
00:16:19taken in this direction. Thank you for that, Charu. Now, it is important to note that this
00:16:24meeting by the market regulator comes on the back of a SEBI study which indicated that 9 out of 10
00:16:30F&O traders have lost money. Should restrictions be applied for retail investors who are not
00:16:36equipped to play with this game? And if so, what are these restrictions? Here's what Kotak AMC's
00:16:42Nilesh Shah had to say on the subject. It is not that people lose money in equity market.
00:16:51It is the traders who lose money and investors who make money.
00:16:57Now, as a society, we have taken a call that when someone is buying tobacco, we warn them
00:17:06that cigarette smoking is injurious to your health. As a society, we have taken a call
00:17:13that certain drugs which are addictive should not be sold. In fact, we have taken a call on
00:17:20few medicines also that without prescription, it cannot be sold. So, as a society, we always
00:17:28take care of our vulnerable set of people. And I believe the same standard should be applied
00:17:36for people who want to participate in futures and options.
00:17:42SEBI certainly cannot guarantee that everyone will make money while trading.
00:17:48But certainly, there should be criteria in terms of who can participate,
00:17:54what kind of knowledge they must possess either by way of education degree or by way of special
00:18:01training. And more importantly, how much leverage is permitted. I think this is a difficult question
00:18:10to answer. And we should leave it to SEBI's discretion as to what appropriate safeguard
00:18:16can be built. We don't ban smoking except in public and private places. But at the same time,
00:18:24we must warn people that cigarette smoking is injurious to your health.
00:18:31Well, that was an interesting remark out there. Titan is expanding in the fragrance market with
00:18:37the launch of Skin 24-7. We have an exclusive conversation with Titan's management. Let's
00:18:42take a look at the conversation. I think, as I say often, the perfume industry is really
00:18:51witnessing a hockey club growth rate over the last two years. You know, when we started our journey
00:18:58in fragrances, it was about 10 years. This is our 11th year. And initially, the consumer penetration
00:19:05for fragrances was single-digit, 5% to 6% as per our estimates. And what we're noticing now is that
00:19:14it is growing at a very fast pace. And that is where we saw a white space and then launched
00:19:21a mass-teach product. So we were basically positioned towards consumers who are looking
00:19:26for affordable options between $1,000 to $4,000 price point. There are a lot of options available
00:19:34in the marketplace from an international brand, from imported grey market products,
00:19:41like Indians traveling outside and asking your relative to get a perfume as a gift.
00:19:47So there were so many options which are there. And we saw that there's no strong Indian market
00:19:52player to really see this option. And we saw that market was underserved, under-penetrated,
00:19:58and that is when we decided to launch the Skin brand 10 years ago. Now, I'm happy to state that
00:20:04we've really seen great success there. We are the market leader in the mass-teach space,
00:20:10$1,000 to $4,000 price point. We estimate roughly about 30% to 40% market share in that zone.
00:20:18Now, let's take a look at some more corporate news. Thermax's CEO announced a collaboration
00:20:25to develop advanced electrolyzer technology in India. Now, an electrolyzer is a device
00:20:31that uses electricity to split water and hydrogen and oxygen. Now, this partnership
00:20:37aims to completely indigenize the technology and establish localized production within
00:20:43two years. The newly developed electrolyzers boast 25% efficiency
00:20:48improvement over existing low-temperature electrolysis technologies.
00:20:55For our audience out here, there are three big innovations that Thermax is talking about.
00:21:01And the whole move towards energy transition is the core of everything new that is going on
00:21:06at Thermax. First, you would see out here is a biomass center of excellence, as part of which
00:21:11we have got new products and solutions that we are releasing. But at the core of it is we want
00:21:18to come to the market and say any problem that you have for biomass, any problem statement,
00:21:24come to Thermax and we would work with you on what is the best solution that is possible.
00:21:30To work a transition, if you're using coal or fossil fuels and you want to move towards biomass,
00:21:36we will do everything along with you. How do you change existing equipment?
00:21:40Where is biomass available? New equipment, if you want, we can help you with everything.
00:21:47Zoho launched an ONDC seller app and an IoT platform in Bengaluru today. CEO of Zoho,
00:21:54Sridhar Vembu said that the company is currently waiting approval for its semiconductor unit.
00:21:59He also spoke about the company's potential to grow faster in the coming decade. Listen in.
00:22:06We definitely anticipate growing faster in the coming decade because of all the technology
00:22:12investments we are making, all the R&D we are doing. And of course, that is all against a
00:22:16global economic backdrop that anybody's guess how that will turn out. But we are also expanding
00:22:24dramatically in India, the Indian market, not just as a technology production base, R&D base,
00:22:32but also as a market. We are growing very rapidly. I'm happy to report India has already
00:22:37reached number two in global revenue for us. And we want to get a majority of our revenue
00:22:42from India in the next decade. The second phase of the assembly
00:22:48elections in Jammu and Kashmir was held today. Polling was held for 26 seats across six districts
00:22:54where 26 lakh voters will decide the fate of 239 candidates. I'm joined by Nazir Masoodi
00:23:00with the ground report.
00:23:04Well, it's moderate to brisk polling across Jammu and Kashmir, across 26 assembly constituencies
00:23:12in the second phase of assembly elections. And it was sluggish polling in Srinagar city, but
00:23:19as day progressed, people started coming out and voted. I'm at Habba Kadal assembly constituency.
00:23:27This is an area which has a sizeable number of Kashmiri pundits, but more than three decades ago
00:23:35in 1990, most of them left this place because of militancy. And now they are actually voting.
00:23:43They're voting from the migrant camps in Delhi, in Jammu. Then in Delhi, there have been some
00:23:50special polling booths have been set up from there. And here we have seen the, in morning,
00:23:57there was very few people had turned up, but eventually people started coming out.
00:24:02Well, that's all the time we had on this edition of Profit360.
00:24:06Stay tuned to Profit360 for more news and updates.
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