- 1 hour ago
On The Business Today Show, anchor Sakshi Batra details closing market developments as the Nifty and Sensex rebound following six consecutive weeks of losses, with the Nifty closing above 23,400 points supported by gains in FMCG, real estate, and pharmaceutical stocks. ICICI Direct Head of Research Pankaj Pandey provides analysis on crude oil pricing trends, banking sector valuations, and pharmaceutical Schedule M compliance. The report reviews India's 15% export growth over the initial five months of the fiscal year amid geopolitical tensions, pending free trade agreements with the UK and EU, and potential adjustments to Russian crude oil imports under US sanctions. Additionally, the broadcast highlights Starbucks signing an MoU to open its first overseas Global Capability Centre in Chennai to create 800 technology jobs, opposition by the All India Organisation of Chemists and Druggists to mandatory pharmacy CCTV surveillance, and primary market forecasts estimating 1.5 trillion dollars in IPO market capitalization additions.
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00:09good afternoon dear viewers you're watching the business today's show with me sakshi batra this
00:14is where i get you all the stock market closing action on the lal street first up let's take a
00:18look at what's hot in the corporate and the financial world markets extend last week's
00:26momentum now the nifty gains about 100 points nearing 23 450 the cent six also jumps over 650
00:32points fmcg pharma and real estate stocks are leading the rally
00:40foreign portfolio investors have sold over 14 000 crores in indian equities in the first half of
00:45september that's a sharp reversal from 29 631 crores of buying that they saw in august also
00:51financials and auto stocks have been the seen the biggest outflows
00:58festive season demand is pushing airfares sharply higher on regional routes with
01:03fares surging up to three times on some of the routes as well brand crude prices
01:08now fall below 102 dollars a barrel
01:14delhi chemists oppose the proposed mandatory cctv at medical stores citing patient privacy concerns and
01:21the added costs for small pharmacies the proposal aims to tighten monitoring of prescription drug sales
01:31snp says the rbi swap plan could benefit indian banks improving funding stability and helping bridge
01:37asset liability gaps but banks may see some pressure on net interest margins
01:49we straight away look at how the markets are trading in the last half an hour of trade viewers
01:53it's been uh panning out to be a strong session in trade a new week with some more promise coming
01:59in
02:00after six weeks of consecutive losses that the street has witnessed you're seeing some come back and pull
02:06back into the markets 23 435 right now a three tenths percent uptick onto the nifty largely led by the
02:12pharma fmcg and real estate stories today uh this is despite the fact that the mid cap index is down
02:18two tenths percent it is absolutely flat it was hovering lower for the large part of the session today
02:23on the nifty some of the big winners towards the end of the session you clearly see hcl tech leading
02:28the move
02:29two point seven percent higher eternal itc hcfc life you're looking at sun pharmaceuticals as all the
02:36names that are buzzing in the session today as among the top movers on the nifty where the decline has
02:42come in on the nifty today is largely on select stocks from various sectors look at adani group
02:47stocks some of them are falling you can see adani enterprises adani ports in the declining zone
02:52almost a two percent decline for those you're looking at grassim bajaj finance and bharti et al
02:57as some of the other top losers at this point in time but let's quickly welcome our guest on board
03:02we
03:02have pankaj pande joining in as the head of research of icsa direct on our program welcome pankaj good to
03:08have you with us as always well what do you make of this uh you know improvement in sentiment at
03:13the
03:13beginning of this week uh the concerns around crude oil prices still remain uh there's been also the
03:19russian sanctioned bill that's been made into a law by donald trump but despite that the markets are
03:24in fact pulling up what is driving the markets higher and is this signaling a pivot from the
03:30consolidation and weakness that we've been witnessing over the last six weeks
03:35yeah hi good afternoon sakshi uh thanks for having me see overall i think the only thing or
03:40single variable which was holding the market was crude oil prices now crude oil prices have seen some
03:45correction because of some de-escalation of expected de-escalation in the west asia
03:52now so so from that perspective i think it's a sort of a positive thing one more thing which is
03:56aiding the market is that we've seen that uh rate hikes happening uh especially in key markets like us
04:03and japan and i think uh overall consensus building that we would also witness a rate hike
04:09uh in india as well uh although all these rate hike cycles are going to be shallow 25 to say
04:1575 or bips
04:16but uh when you sort of look at uh it is uh uh quite positive for bfsi as a sector
04:22now bfsi is obviously
04:23one of the heavyweight sectors uh nothing much was happening for uh uh at least the uh tier one names
04:30but uh our sense of that uh uh this rate hike if it happens in india by 25 bips has
04:36the potential to
04:37sort of lift uh earnings for some of the private sector banks by five to six odd percent and uh
04:44i
04:44think one more thing is uh which is helping banks is again uh the we would expect clarity to emerge
04:50on
04:50the leadership transition issues for uh key banks like hdx bank and kotak bank and that is sort of
04:57leading to a revival so uh uh and also if the crude oil sort of comes down then some of
05:03the
05:03interested sensitive sectors also sort of uh benefit uh so so from that perspective i think
05:08it is largely to do with the fact that the crude oil prices are sort of come down now this
05:13passage
05:13of bill i we don't think that it is going to have an immediate impact because uh no one would
05:18want
05:19crude oil prices to be higher including us so i guess it is an option given to the u.s
05:24president but
05:24something which we don't believe is going to be applied anytime soon okay fair point let's actually
05:32share focus to what's happening in the pharma space uh viewers we're taking you to the news coverage
05:37that we've been tracking both on india today and on business today television as well uh this is with
05:42regards to the government's proposal of cctv mandate for pharmacies uh now looks like delhi chemists are
05:50opposing this uh proposal of the government uh talking about how this raises concerns over patient privacy
05:56pharmacy and also the kind of burden it would add on to the small retail pharmacies as well neetu
06:02chandra sharma my colleague is joining in with more details on the same neetu first up give us an
06:07understanding of what are uh the chemists in delhi saying what are they uh you know talking about why
06:14would this not be feasible for them to implement as a proposal uh yes actually so last week the health
06:21ministry proposed uh making cctv surveillance mandatory at medical stores selling prescription
06:26medicines under schedule h h1 and x these are the prescription only medicines so the government
06:31basically said that the moon was aimed at preventing the unauthorized sale of these medicines and creating
06:36a record that the regulators can verify whenever needed now the proposal uh also requires the footage to
06:43be kept for at least three months since then the chemist response has been uh to the to ask the
06:49government to reconsider a blanket requirement so as actually as we spoke to the all india organization
06:55of chemists and drugists that told us that the proposal could put a significant financial burden on
07:00you know small and medium-sized pharmacies it estimates that the cameras uh you know recording
07:06equipment storage wiring internet and maintenance etc it could cost anywhere around 50 000 rupees to
07:12one lakh or even more so the industry is also raising practical concerns uh sort of in the particularly in
07:18rural areas where in power cuts poor internet connectivity and lack of you know technical support could
07:23make the continuous recording difficult so these are the practical concerns that the chemist association
07:28has moved to the uh government with sakshi so need to have they asked anything to be changed in the
07:34proposal
07:34particularly uh yes so basically uh what we spoke to them that the industry is uh asking for a more
07:41practical and you know proportionate approach rather than the same requirement being imposed on every
07:47pharmacy now chemists are saying that if the cctv is considered necessary for not monitoring these
07:53prescription drug sales the government should actually look at providing it a you know sort of
07:58support to uh these chemists and in terms of installation and maintenance costs now particularly for the small
08:05pharmacies and those in the remote areas and there is another concern that you rightly mentioned there is a
08:11uh privacy of patients as well yeah so delhi chemists have objected to the possibility of a cctv
08:17recording you know sensitive interactions between the pharmacists and the patients because a lot of
08:22patients come to the pharmacists discussing about their medical problems absolutely maybe around
08:28reproductive and sexual health psychiatric conditions as well as you know neurological illnesses which are a
08:34big taboo in considered as a taboo in india so basically they want to clear rules on who can
08:39basically access the footage how it will be uh you know stored and protected and when will it be deleted
08:46so these are a lot of demands that the chemists have moved to the government with and these are the
08:50concerns that they have shown so we will continue to update our viewers on the development as right
08:57thanks a lot neetha for getting us those details uh coming back to uh pankaj this issue aside but pankaj
09:04how
09:04are you looking at the pharma and healthcare space as a whole we've been seeing pharma as the top
09:08performer in trade even today in fact this year so far it's performed very well outperformed the
09:14benchmark indices substantially a 20 uptick has already been seen on the index level and several
09:21companies have made wealth for investors how are you looking at the pharma story evolved from here do
09:26you still see a lot of value so sachi when you sort of look at right like you rightly highlighted
09:33this
09:33sector has done well from april onwards given 20 percent kind of a return as index now uh see we
09:40see uh this industry sort of formalizing a lot and i'll start with the production side i think
09:45production side the government is implementing schedule then wherein our sense is that a lot of
09:51smaller players need to sort of upgrade their facilities uh to sort of survive otherwise a lot of
09:57them will have to shut shop and we are clearly seeing uh signs of this in terms of industry growth
10:02rate uh getting better because all these smaller players used to contribute nearly one third of
10:07the overall sales so typically for the industry the growth rate used to be somewhere about seven to
10:11eight or nine odd percent now this growth has improved to somewhere about 12 odd percent and
10:16clearly benefiting the organized players and i think the move move was necessary because a lot of
10:21spurious drugs were sort of sold domestically and globally which uh without much of adherence to
10:27quality and i think uh something similar is what we would expect probably uh in the distribution uh
10:33value chain as well and i think uh uh overall our sense is that uh the domestic uh story looks
10:40a lot
10:40more stronger because uh i think uh with meeting kind of a growth uh uh we are clearly seeing some
10:47of the tier one players sort of benefiting that what we like is something like torrent between large
10:51steps or you have rpt lives uh sciences and cure or as i does i think these are the companies
10:57which
10:57we like uh because uh see on the exporting side uh we have very few players which will benefit because
11:02most of the players export genetics and that is there we are seeing pricing declines still sort of
11:08panning out so hospitals and uh domestic pharma is something uh which is looking a lot more constructive
11:13and i think the schedule is expected to play out even more further going forward because the
11:18inspections have just started absolutely uh shifting focus uh to uh you know taking a coffee break right
11:27here we are going to be talking about starbucks viewers which is brewing a new tech story in chennai
11:34the company is setting up its first india gcc the first corporate technology hub outside the united states
11:41of america with around 800 high paying technology jobs tamil nato cm see joseph vijay
11:46uh was present at the mou signing anaga is joining me from india today to get us more details on
11:53the
11:53same as well anaga first of all uh you know talking about starbucks not opening another store in chennai
11:59but now focusing on creating a gcc uh what would this tech hub really mean for the company what does
12:06it
12:06seek to gain from it and of course for tamil nadu it would mean a massive job creation and of
12:12course
12:12raising a lot of funds there
12:19i mean if you want to use yourself please yeah yeah
12:22yeah tell me now it's going to create uh 800 new opportunities new job opportunities uh here
12:31right go ahead well it's going to create the 800 new job opportunities here in chennai
12:37remember a few days back earlier we had the us-based leading healthcare and pharmacy services
12:44sector walgreens sign an mou to create uh the global capability center in chennai that was slated to
12:51produce around 250 job opportunities and just a few days after that we have another us tech giant
12:57starbucks which is going to open the country's first global capability center it's going to
13:02create alongside existing the technology hubs that situated in nashville and in seattle in us
13:08so in india you know it has really come up as a shot in the arm for tamil nadu especially
13:14which
13:14is aggressively touting itself as a leading uh destination for investment today the mou was
13:20signed in presence of chief minister joseph vijay yeah uh was from starbucks were here to formally
13:25settle the mou that's going to come up in chennai in a few months from now all right thanks anaga
13:30for
13:31getting us all of those details as well uh shifting focus to uh you know what india is also looking
13:37at
13:37india has managed to clock in an impressive growth of 15 percent in exports in the first five and a
13:42half months of the current fiscal year and this is despite the twin conflicts in west asia and
13:47central asia the growth according to the government is likely to accelerate even further thanks to the
13:52free trade agreements in the next few months with new zealand european union and even canada
13:56let's listen in to what commerce minister had to say on this our exports have grown upward of 15
14:04percent in the first five months and this is all period during which there are two wars going on
14:12and all sorts of complications the state of hormuz which is a principal trading group being under
14:20uh severe severe stress and problems despite all that india has seen an export growth upward of 15
14:28percent i can say until 15 september uh sorry 14 september the last date of which data is in my
14:37pocket
14:38uh pankaj i'll come to you very quick and ask you you know how are you as a market participant
14:44gauging
14:45uh the opportunities with respect to uh you know companies conglomerates going big on creating gccs
14:52exports picking up ftas in the center as well how should an investor really look at all of these
14:58developments and you know seek some changes in their own portfolios regarding this
15:04so compared to say for example fta i think one of the biggest beneficiary would be say a sector like
15:11textile uh i think textile sector is already benefiting from the fact that the cotton yarn
15:17spreads have sort of gone up uh so so that way i think things are looking good see the entire
15:23sector was too much independent on us and i think with uk fta kicking in and uh eu expected to
15:28sort of
15:29kick in i think relatively uh textile players or exporters are expected to benefit so we like
15:35overall exporters like uh say for example sporking and uh uh indocount so these are the players which we
15:41feel are better placed now compare uh so when you sort of look at uh for gccs i think uh
15:48one of the
15:48opportunities uh is for real estate companies and uh so so from that perspective i think uh real estate
15:56companies are expected to sort of do well that typically uh you see most of the gcc is being set
16:01up in
16:02banglore and uh uh hyderabad so so so that is where you will have players like say brigade uh
16:08expected to sort of do well or we don't have a coverage on prestige but that is also a company
16:14which one can look at so one of the ways to sort of clear this opportunities through real estate companies
16:18right shifting focus to a breaking news coming in viewers this is with regarding to the oil space
16:23india may actually go on to cut russian oil purchases this is as per bloomberg report that we are
16:29getting to know us sanctions uh you know that have raised fresh tariff threats on all the countries
16:35that do business and of course with regards to the energy space um you know get oil and gas supplies
16:44from russia that's threatening indian refiners as well as they are now going to be seeking alternatives
16:50and bloomberg report also indicates that russia supplies over 35 percent of the imports as far as the
16:56oil buying is concerned and that may also enter into a fresh uncertain period as well that's
17:02something that we are given to understand at this point uh this is the exact thing that we had started
17:07to talk about punkage and uh bloomberg reports are indicating that perhaps india may need to cut
17:13russian oil purchases right there um now of course we were also looking at a lot of reports that are
17:20being raised in fact by icica securities itself um you know we had seen a report where they had
17:27talked about how some of the oil marketing companies could be impacted if they have to shift
17:32their purchases from cheaper sources like russia to more expensive sources and what could be the large
17:38impact how are you looking at the oil and gas scenario world from here and what about the omcs
17:44so in general samshi uh oil and gas uh sector is less about volume growth and more about pricing
17:51fluctuations uh so one part of time you see refinery sort of getting benefited uh now with crude oil
17:57prices being higher uh the marketing side is taking a lot of pain and uh so so so from that
18:03perspective
18:04we are still not chasing these stocks from a portfolio perspective i think uh the challenges in the
18:11sourcing will remain currently we are sourcing 50 percent and in order to avoid this probably we'll
18:15have to bring it down below 50 odd percent but for that you need alternate uh sources uh so basically
18:21you need to look at three to three and a half million barrels of uh requirement to be met from
18:26other
18:27sources uh so which is where i think the challenge like i don't think you have a solution in the
18:32short term
18:33but i think over the next say two three years uh a lot of flows can sort of normalize uh
18:39beat uh
18:40new places like venezuela which can sort of pitch in or we could have gulf countries sort of supporting
18:45and so in two three years time it is possible but near term i don't think uh despite the tariff
18:52i
18:52really do not have much of an option okay shifting focus to the entire buzzing ipo space now viewers
18:59india's ipo market could actually be heading for a major expansion ipo companies that listed between
19:062020 and 2025 added around 590 billion dollars in market cap overall and now jeffries has estimated
19:13that the next five to seven years could actually see ipos to add another 1.5 trillion dollars to the
19:19market cap of indian stock markets with larger companies and capital market platforms now entering
19:24the primary market and the scale of india's ipo opportunity could be changing rapidly let's actually
19:29listen in to what jibi jacob the head of equity capital markets at jeffries had to say on the ipo
19:36runway ahead and what it means for indian stock markets and investors ahead in an exclusive chat
19:41with business today let's listen into what he had to say i think there was a phase when we had
19:45a lot
19:45of these listings of the you know new age e-commerce giants and a lot of questions around valuations but
19:51i
19:51think today uh you know as she mentioned it's turning to some you know mega conglomerates a huge
19:58uh you know huge companies or capital market platforms like an nsc so i think it's evolving
20:04the market has evolved a lot it's a very valid point right and we were doing this analysis that
20:09if you just look at uh 20 20 25 uh ipo companies which came in that period added around 590
20:18billion
20:19dollars of additional new market cap right and our belief is that going in for the next five seven
20:24years ipo companies will add 1.5 trillion dollars of additional market cap and mind you this is the
20:30entire market cover india in 2015 right so size scale order magnitude absolutely changes and once
20:38that's the size and scale that you can imagine then blocks and qips and all of that uh we will
20:43be a
20:43very different market at the same time i i say the runway is uh very very long uh and we're
20:50just
20:51scratching the surface right just just for your viewers uh spacex trades around 16 billion dollars
20:56a day the whole of indian market trades around 12 billion dollars yeah right so so that's the
21:02that's the two ends of the spectrum uh and and hopefully we reach there one day but do you see
21:07primary markets outperforming secondary markets for the coming next few years because you are talking about
21:12how uh you know this is going to be contributing to the overall market cap you see that performance
21:18to continue and is that the space where retail investors should truly focus their money on no i
21:24can't give advice to retail investors where they should do and put their money in but i i do believe
21:30jeffees we are very uh you know confident about ipo uh that's that's extremely important for the
21:37economy the capital formation and all of that as a country and that product if you just look at
21:42anywhere globally that's going to be a mainstay and we will see multiple companies coming and
21:47tapping into it and retail shareholders i'm sure basis on their advice that their brokers give them
21:52uh will should selectively apply uh punkish will take your view as well on the ipo space
21:59right there we're looking at nsc ipo closing today today is the last day already uh you know we have
22:05a four-time subscription coming in for nsc ipo and uh that goes on to show the kind of interest
22:12and the
22:12appetite there is six more ipos are opening up this week raising about 4 300 crores your sense of how
22:18are you gauging the opportunity for investors here um you know of course the secondary markets have
22:24probably just stayed sideways but it's the ipo action that has drawn all the attention so far
22:31i think last two three years every year we are seeing uh ipos to the tune of about nearly one
22:36and
22:36a half to uh say uh 1.6 lakh crores and that's a pretty healthy sign of uh ipo pipeline
22:43which we
22:44have got and we would want to believe that this trend is going to persist uh given the fact that
22:49uh a lot
22:50of companies would be in the pipeline to sort of uh uh get listed and uh i think this is
22:56extremely
22:56important from a market depth perspective also i mean just look at you never had the companies
23:02on the hospital side you've never had companies a lot of other segment side so now some of these
23:08companies have got a market cap of in excess of one lakh crores so i think uh you need various
23:14kinds of
23:14companies to sort of get listed so but i think uh applying for idos or i think uh whether buying
23:21in
23:21a secondary market is dependent on individual merit of the company just because
23:26any ipo is coming that does not mean one should really buy that or subscribe to that so i think
23:32it's a it's a it's a decision which needs to be taken in the basis one uh risk appetite uh
23:38so
23:38there's no generic recommendation which i can give here okay fair point um let's actually look at how
23:45the markets are shutting shop reverse 23 000 for one four uh that's where the nifty seems to be ending
23:50at
23:51about uh 67 68 point of an uptick three tenths percent higher um so we have held on above that
23:5923 400
24:00mark nifty bank about two tenths percent up uh some weakness towards the end of the session pulled back
24:06from the highest point we also did see uh you know sharp downtick on the fmcd space in the last
24:12point but
24:12it still managed about a percent higher uptake real estate managed to be the top gator among the sectors
24:18today over a percent higher uh you also saw pharma up by over one percent oil and gas managed about
24:24a
24:24half odd percent gain mid caps small caps both lost certain ground about two tenths percent lower for
24:30the mid caps metals lost a bit of sheen uh you could see about a half odd percent decline there
24:35it and psu banks these were the pockets that declined in the session but it's time to take
24:40some of your queries with our guest um pankaj we have a first question uh from ashok srivastar he's
24:46from indore and uh the big question is that within the pharma space uh which are your top stock ideas
24:53for the next three months so in pharma what we like is uh in big ones uh zidas life uh
25:01otherwise uh
25:02we like domestic oriented players like say rtg life senses uh azitta pharma and we have recently come up
25:09with our conviction by one and cure okay let's take another question this one is from srishti she's
25:15from luck now and she asks you that she has tata group stocks in her portfolio but with the current
25:21tata tassel uh you know will it impact these stocks performance uh definitely i think sentimentally
25:28it will have an impact because what we still don't know because the last few years a lot of companies
25:33have done good amount of investing has ventured into new areas so future capital allocation uh
25:39could be a sort of a challenge if it comes by but nevertheless i think there are some stocks which
25:44still can be looked at so for example we are witnessing stronger cycles so tata motors cb looks
25:51good to us a tata consumer within the fmcg pack relatively looks good and i think titan of all the
25:57companies is guiding for 20 percent plus growth so if you're looking for a consumption player i think
26:02uh nothing which strengthen uh indigents and jewelry segment so i think these are the companies uh
26:07at this point time are looking uh a lot better okay uh we also have a query from pankat choudhury
26:13he's
26:14from gurukram and he asks you on the real estate stocks he really wants to invest for the long term
26:19is it a good idea to invest in them and what sort of stocks should you look at
26:25uh so i think real estate obviously uh uh is interested sensitive sector and uh depending on
26:32price movement you see the sector being volatile but nevertheless i there are some stocks which we
26:37can be looked at so for example phoenix is a good play uh uh in the real estate uh it's
26:44a good proxy for
26:45consumption it is the biggest uh ball operator uh so phoenix is something which he can look at and i
26:51am
26:51what you like is again premium players uh in the real estate so something like overall i think this
26:56company makes one of the highest margins so that can be looked at or uh i think you have smaller
27:02players like max states where new york life is their funding partner for the commercial side so these
27:08are the companies which can be looked at from a portfolio perspective but in general uh preferred
27:13companies which are part of some conglomerate okay pankaj i will also ask you one more question which we
27:20haven't touched upon and that's the commodity space both precious metals gold and silver are facing
27:25the heat over the last couple of sessions even today some decline has come through uh
27:30what what are you looking at here with the change in the central bank's policies uh you know overall
27:36across the world a rate hike scenario that we are entering into a prolonged rate hike scenario
27:42what would that really do to the precious metals and the prices going forward gold and silver what's
27:46your outlook so i don't think both these commodities are going to perform because uh see if you are
27:52witnessing or we are likely to see a rate hike of another say 50 cups in u.s and something
27:57similar
27:57in india and even other markets see the income becomes a lot more attractive because it offers uh
28:04returns unlike gold where you capture value through a higher price appreciation only so gold is expected to
28:12sort of uh our precious metals are expected to remain sideways till we get clarity in terms of crude oil
28:17declining and this interest hiking cycle easing or the reversal of that cycle see gold will do only
28:23when when the u.s messes up with fiscal deficit which is possible because trump is promising
28:29say 25 uh i think five thousand dollars to 25 crore individuals that's massive about 1.25 trillion dollars
28:36but i think uh that will take some time to sort of deteriorate or lead to determination in the
28:42fiscal deficit near term i would not expect uh any performance in uh precious metals okay pankaj well
28:49thank you so much for being with us as always a pleasure to speak with you and seek such wonderful
28:53insights across the markets and various pockets that we spoke about as well viewers in case you too have
28:59any questions about your investments in mutual funds in stock markets your sips or gold related queries
29:04then send us your queries on the number that's flashing on your screens we'll be happy to get top
29:08market experts to guide you on your own stock queries as well thank you so much for watching
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