- 8 minutes ago
Indian equity markets opened on a steady note above 23,400 levels, supported by gains in financial and banking stocks alongside broad-based sector participation. S&P raised India's FY27 GDP growth forecast by 40 basis points to 7 per cent, citing robust industrial activity, strong exports, and government spending, while projecting a repo rate hike by the Reserve Bank of India. Meanwhile, the Supreme Court raised serious concerns over the significant gap between the price to retailer (PTR) and the maximum retail price (MRP) of essential and life-saving medicines, questioning why more drugs are not covered under the drug price control order. Pharma companies, represented in court, cited research and development alongside marketing expenses for the variance in pricing. Additionally, global geopolitical developments remained in focus as Donald Trump highlighted sweeping tariff authorities and expressed support for the India-Middle East-Europe Economic Corridor.
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NewsTranscript
00:00be opening this morning at 95.57 to the dollar versus 95.59 so we have seen very marginal
00:06appreciation day on day leading up to it actually getting towards 95.5 versus 96 so that's a good
00:14solid appreciation on the currency over the week or so now let's take a look at some of the other
00:19news makers and what we're tracking for you this morning looking at a gap up in in pre-open at
00:2523
00:26points right now but remember yesterday we actually snapped a four-day gaining streak
00:33ended just below 23 350. Gaurav Sharma joining us this morning Gaurav good to have you with us
00:39you know how are you viewing the markets ahead of opening today
00:44very good morning to you thanks for having me today
00:48a flat to negative kind of opening is is pretty much likely the kind of close that we witnessed
00:55as in yesterday's trade is indicating towards uh a yet another sideways to negative trading session
01:02i would be keenly watching whether nifty index is able to hold on to 23 uh 250 mark uh in
01:09day trade
01:10because if that is taken out there are a lot of chances that uh it may once again go down
01:16to test
01:17the 23 100 at 2300 mark as uh the u.s 10-year yields still are hovering near the five
01:25percent mark
01:25these are negatives and they will continue to encourage the foreign players the selling iniquities
01:33yes some amount of cooling is seen from from brent about 10 odd percentage of of a cut we have
01:41seen in past
01:41couple of trading sessions as far as the brent prices are concerned that is the sole reason why we saw
01:47an
01:47uptake from 23 100 levels to close to 23 500 in yesterday's trade but going beyond that market is
01:56very important to to to see the crude coming further down the uh the the u.s treasuries should
02:04further soften uh that will actually uh help uh the domestic players indian currency is also uh is
02:12also if you have already mentioned in your commentary has has started to started to come down
02:20uh i won't say towards a comfortable zone but it is cooling some bit from its peak so this is
02:26also a
02:26really not much of a concrete science visible at least as of now that suggests of any kind of a
02:33meaningful recovery therefore we still maintain a cautious stance all right still cautious so you
02:41know while you know everyone's still been sounding positive on domestic factors we've got two major
02:46geopolitical uh events that we're eyeing of course we've got u.s and iran speaking right now uh at the
02:52unga but uh we all know that that doesn't necessarily mean that the end of the strife is over and
02:58so so
02:59crude is cooling off just tentatively at the moment and then of course on the tariff front we're
03:03continuing to hear trump uh you know say he could use those sweeping powers and that will be a concern
03:09markets haven't reacted uh but these are two big events not even coming to the uh fed and the rate
03:15hike scenario currently but just in terms of geopolitical events
03:22the market and the market participants have been have been have made their mind that they won't be
03:28relying on what mr trump is saying they'll actually be focusing on what the data is suggesting the data
03:36that has actually come out and data that has been released is what really uh market is responding to
03:43it is not uh acting upon what the expectations are because of the uncertain geopolitical scenario
03:50things can turn around anytime therefore i think it is important that we stick around to the very basics
03:57the old school methods see where the where the real picture is where you find the real comfort
04:03the valuations if they are lower one should start investing on those areas this is not the time we
04:09should go out outright shopping we have to dig down deeper look into the things as far as the
04:15domestic perspective is concerned i don't think demand is an issue the real thing is uh how far the indian
04:21companies will be able to maintain their margins because higher elevated crude oil prices will have an
04:27impact on inflation and in eventually a cascading impact on on on on on all the larger areas all the
04:35asset
04:35classes that we see around
04:40all right just looking at uh some of the other uh newsmakers today we've got glenmark in focus
04:46they've got a us fda uh for its goa facility um it's it's got an eir from its us fda
04:54for the goa facility
04:55uh so that's glenmark for you and um let's just see if i can find a few more details on
05:01that but inspection
05:02was conducted at the company's facility from uh june 22nd to 30th so that's the latest there on glenmark
05:08and uh we've got uh prime in focus multiple pe to invest hundred million dollars in bhl and brahma
05:15india via a ccps uh this is of course a compulsory convertible preference share uh the broader proposed
05:22fundraising round as part of the round led by multiples targeted at 150 million dollars brahma
05:27ai has raised 150 at a 2 billion valuation in the multiples led round so that's uh super exciting
05:34keep an eye on prime focus this morning all right uh opening bell for you on your screen
05:39uh let's take a look uh just a minor uh kickoff this morning we are above yesterday's close um steady
05:48back up above 23 400 but waiting to see if we manage to sustain that green tick uh going forward
05:56we've still got today and tomorrow for the week and uh actually we're we're actually keep you know
06:02keeping on tender hooks because we're soon heading into festive and it'll be uh interesting to see how the
06:07market reacts both to earnings uh for the quarter as well as uh festive season demand and sentiment
06:14that's also going to play into the whole consumer story that everyone's riding on at the moment so
06:19uh lots to track as we of course uh countdown but this morning it's steady on the screen bajaj finance
06:26finsurf so the twins are up about one to two percent hindalko is looking good we've got sriram finance
06:31aisha motors kotak mahindra jsw steel is up half a percent so it's a nice big mixed bag this morning
06:37across sectors and uh well-spun living is up about four percent ola electric uh rhi magnetita that of
06:45course was buzzing yesterday as well some news-based buying coming in there hind copper irb infra we've
06:51got a you know bunch of uh names in the broader markets especially that are looking good market
06:56breadth is intact it's looking very strong actually and i think that's the most encouraging thing we've
07:02seen uh pretty much across all trading days with the market breadth still being on the uh upside and
07:08um uh you know looking uh attractive at this point of time let's bring up dixon as well uh jp
07:14morgan on
07:15dixon uh target price 16 400 poster management meet saying that india has the potential to be a
07:21electronic manufacturing hub uh that's the commentary coming in there from jp morgan not much of a reaction
07:27on dixon this morning though bfsi is looking attractive right now and let me get gaurav in
07:33on that gaurav we always get uh excited when we see bfsi moving because that's the one that's been
07:38lagging the market uh this morning we're definitely seeing financials up and about
07:45i completely second your thought aba that bfsi segment has not performed it also encourages us
07:52because uh it is among the the largest of the lord as far as the market capitalization are con is
07:58concerned uh uh two of uh two of the mid-size bank catch my eyes today which are looking fairly
08:05attractive they are performing well it is idfc first and rbl bank both of them are looking fairly
08:12attractive they they have been clear out performers as far as fear market comparison is concerned and even
08:20even actually uh uh performing exceptionally well uh if i talk about some basic numbers of uh rbl banks
08:28performance i've on a monthly basis the stock is up over 11 percent quarter and quarter 15 percent
08:34and uh simply uh on an ear to date to basis it is uh 33 35 percent up uh same
08:43uh similar is a kind of a
08:45move for for idfc first bank it is all set for a fresh up move in a in in the
08:51month gone by a
08:52flattish kind of a move quarterly performance is fairly fine 10 art percent so uh this is one one space
08:58one can consider uh similarly other areas if if i may have to talk about it it is like uh
09:04the metal
09:05stocks are uh once again performing well you have pointed out towards a fairly strong market with our
09:12i very well remember it was a similar scenario yesterday itself uh when in the initial say
09:1815 minutes or half an hour of trade market width was fairly positive and it gradually melted down
09:24towards on on a flattish tone so let's see how how the days uh you know uh passes today uh
09:31i think the
09:32first hour of trade is pretty much important if if things uh and the situation holds the similar way as
09:39it is currently i think a further upside of another 50 70 points can be seen on nifty index
09:48all right uh great now let's take a look we've got uh you know that's that's encouraging to hear
09:54gaurav i just want to take a look at some of the other commentary coming in on financials as well
09:58macquarie on htfc bank uh has a has a target price uh i'm just going to come to that story
10:04in a minute
10:04but macquarie on htfc bank has a target price of uh 1150 um htfc bank's board has forwarded two names
10:13kaizad barucha as internal candidate and anu bakhtri as the external candidate uh so they're looking at
10:21you know a drive up on retail growth as well as uh more of a focus on casa as well
10:28and uh they're
10:29they're pretty much counting on the new management to look into some of these areas so that's the
10:33target price coming in it's a very strong target price move there we've got an upgrade coming in
10:38on lnt finance i think that's ubs lnt finance also and ubs has also said overall on financials they
10:44believe that india is entering a strong unsecured uh credit growth cycle led by personal loans uh and
10:51this is being supported by healthy asset quality across banks and nbfc's and that's really what they're
10:58counting on abundant system liquidity and a more risk on stance from lenders as well is feeding into
11:05their outlook right now and with gold prices stabilizing and the likely gold loan growth
11:10moderation a key which has been a key substitute for personal loans over the past few years that
11:15could lose momentum and that may benefit some of the large nbfc's and banks as well they've upgraded
11:21bajaj finn to neutral from sell so bajaj finn to 1100 that one's also on the move today expecting a
11:27cyclical eps upgrade on that one and lnt finance as well and that's why it's buzzing today they also
11:32have buys out on poonawala cifc sriram finance and a whole host of others as well so that's rounding
11:38off the action on financials this morning now let's bring you up to speed on what's happening with
11:44regards to the supreme court raising serious questions over the huge gap between the price
11:49to retailer and mrp of essential medicines the court has called inflated medicine pricing a serious
11:55concern for patients and taxpayers for more details anisha mathur joins us anisha
12:02well abha we saw this hearing in the supreme court just yesterday now remember this petition has been
12:09in the court for the last several months and this is not the first time the court has raised these
12:12concerns the bench of justice vikram nathan justice sandeep mehta has pointed out that the price fixation of
12:19medication is very very important because essential medicine life-saving medicines the difference between
12:25the pharma retailer retail price and the mrp that are at which it is actually given to the patients
12:32is uh atrocious in fact the court has called it broad daylight robbery now one particular example the
12:39court gave was of cancer medication before which the ptr the price to retailer is merely 2700 but it is
12:47sold to patients in hospitals at about 27 to 28 000 rupees so almost a you know 20 30 times
12:55uh high
12:57in the pricing and the court has asked this again and again of the central government that why is it
13:03that
13:04more drugs especially essential and life-saving medications are not being brought within the drug price
13:09control order because they are saying that uh even when uh these essential medicines are given through the
13:17jan or should he's uh jan or should he system which is the uh government schemes even then the government
13:23is paying those mrp rates which means that the taxpayer is paying those rates when the retail pricing
13:30is much much lower so the court has asked the government to now look into whether there could
13:35be a better price fixation policy but at the moment we also saw we've also seen the pharma companies
13:43represented by senior advocate kapil sabal saying that pricing is not always uh that uh you know open
13:50market pricing is uh something that the pharma companies have to be very careful about and that is why
13:55they've now been given time to file their response to this petition they're saying that they are not
14:00making money out of it they're spending all of this money on r d on marketing on i know on
14:06a lot of
14:06other things and that is why the pharma companies are excusing uh that is the reason the pharma companies
14:12are giving for the difference in the ptr and the mrp but the court has made it very very clear
14:17that it is
14:18not happy so we'll have to see what happens now on 29th of september when this matter gets taken up
14:22again
14:22back to you all right thanks for that anisha okay news are coming in on your screen we've got snp
14:29raising the fy 27 gdp forecast by 40 bips to 7 that's uh on the back of robust industrial activity
14:37supporting india growth strong exports and government spending driving growth as well they're expecting the
14:43rbi to hike repo rate by 25 bips to 5.5 that's almost a given in the markets right now
14:49and uh inflation
14:50war weather risks all of these are supporting that hike that will be most likely coming in uh from the
14:58ipi s and uh s p also conducive to that uh but they're saying that uh the growth is looking
15:04robust
15:04on the back of robust industrial activity uh strong exports and government spending so sounding very
15:12confident on the overall growth trajectory and increasing their gdp forecast by 40 bips
15:18to seven percent god of that's significant at a time when the world is dealing with the
15:23lower growth rate scenarios uh the fact that they are actually seeing um momentum maintain if
15:30and actually build up they've increased their focus is is hugely significant they're talking about
15:34government spending of course but we have been seeing the numbers come in that private spending has
15:39also or private capex has also picked up they're talking about the export story and the industrial
15:45growth also where we've seen enough evidence of of development there as well
15:54i've stated in my earlier commentary that the demand of the domestic front is never a concern
16:01we are we are having greater exports now whether it is defense also now from 1000 crore in 2017
16:09to 24 000 crores plus uh recently booked as far as uh sales figures from from largest sectors are
16:18concerned they are also mounting the only concern that i see is inflationary pressure and that would
16:25have an impact on profitability uh a hats out and you know uh to a figure of seven percent 40
16:32bips is a
16:33reasonable uptake as far as the gdp number is concerned and i think with rising imports what we are seeing
16:40is continuously indian export oriented companies whatever companies whatever businesses are doing
16:45export whether it is the pharma whether it is defense whether it is even the it services we have
16:51seen the results and the quarter gone by they were better than what majority was expecting uh even even
16:58fmcg managed to to to actually impress the street so i think this is the kind of the mood that
17:06we are
17:06seeing from the indian companies and the upcoming quarters will actually uh pave way for for for for
17:14for the photo for a further uptick again a condition there inflation should be under check
17:21all right inflation continuing to be the uh you know the one cloud on the back burner right now now
17:27let's uh get you the latest from trump because he's also always the one that could potentially play
17:32spoilsport he's warned that he could use uh sweeping new tariff powers against russia if necessary to
17:37push moscow and kiev towards ending the war in ukraine speaking at the unga trump said the new law
17:43gives him significant tariff authority listen in we continue to seek and end the disastrous war
17:52between russia and ukraine which is killing as i said thousands and thousands of people every month
18:00last week in honor of senator lindsey graham i signed a powerful new law passed by congress providing
18:06me with enormous new tariff authorities and if necessary i will have to use them it's time to stop
18:13the killing and on the sidelines of the u.n general assembly the president also backed the india
18:22middle east europe economic corridor while calling for a shift away from iranian energy
18:26and highlighting alternative oil routes including pipelines well this is all excellent news iran's
18:35terrorist attacks on commercial shipping and neighboring countries have shown the need to
18:39shift middle east energy infrastructure away from the iranian checkpoints that's why my administration
18:45strongly supports the india middle east europe economic corridor and other places of the form of
18:53getting oil out whether it's pipelines or anything else and together we're on the verge of overcoming
18:58challenges that have plagued this region for a decade all right that's why we leave it on the show this
19:05morning gaurav thank you so much for joining us and we'll wait and see how the day affairs but right
19:09now
19:10steady at about uh two three three seven two thanks for watching
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