- 3 minutes ago
Indian financial markets witnessed strong positive movement, with the benchmark index crossing the 23,900 level driven by broad-based sectoral buying across FMCG, banking, and healthcare counters. The domestic currency opened eighteen paise stronger at 94.56 against the US dollar, while precious metals slipped ahead of the festive season. At the same time, shifting political dynamics in the United States following the midterm elections indicated potential legislative gridlock, heightened regulatory oversight on key sectors, and ongoing scrutiny over trade tariffs and foreign policy matters. Market discussions also tracked global crude price movements tied to geopolitical tensions in the Middle East, foreign institutional investment flows, and international telecom expansion plans involving broadband technology licensing.
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00:00Straight away looking at the rupee breaking on your screens viewers, the rupee has opened at 94.56 per dollar.
00:06This is a stronger opening than what we saw as a close last evening.
00:1094.74 per dollar close that we had seen in last evening's session.
00:14But an 18 Pesas stronger opening for the Indian rupee.
00:17Let's also look at gold and silver prices just two days ahead of Dhantera's MCX Silver.
00:22Has fallen another Rs. 2000 to now trade at Rs. 1.78 lakh per kilogram.
00:28MCX Gold has slipped another Rs. 300 to now trade at Rs. 1.39 lakh per 10 grams as well.
00:39Another breaking news coming in on your screens viewers.
00:42Big election blow for Donald Trump.
00:44Republicans ousted from crucial Senate seat belongs to now late Senator Lindsey Graham.
00:50Also proposed bill for 100% tariffs on India.
00:54Graham's sister said to lose to Democratic rival as well.
00:58There is breaking news coming in on massive setback for President Trump as Republicans lose the Senate seat of the
01:06late Lindsey Graham, architect of Bill, threatening 100% tariffs on India over Russian oil purchases.
01:21We continue to speak about the election results and the impact on global markets as far as Indian markets are
01:28also concerned shortly with our guests who will be joining it.
01:31But first up, let's take a look at how the Indian markets are set to open today.
01:35Remember, yesterday we hit a two-month high on the Nifty with a sharp move coming in, of course, led
01:41by a broad-based move that we saw into the markets and back above at 23,700.
01:46We're looking just like a softer opening today, about 0.3% lower for the Nifty at 23,742.
01:54About 68 points lower is what is being indicated at the point in time.
01:58But, of course, we'll be looking at a lot of companies, a lot of stocks that will be reacting to
02:04their numbers.
02:05We have the largest public sector bank that will be reacting to its numbers, SBI.
02:12We are also seeing brokerage houses ranging wide targets for SBI.
02:17There's the highest target price coming in from CLSA on SBI, indicating a 40% upside.
02:23We're also going to be looking at the exchange-related stocks, NSE and MCX as well, on the earnings that
02:30are coming in.
02:30But let's actually welcome Ajay Baka, Senior Market Veteran, now joining in to share with us a fresh take on
02:35the markets and the outlook there.
02:37Ajay, a warm welcome. Good morning to you. Good to have you with us.
02:40We'll start off first with a big reaction to what the U.S. media reports are indicating.
02:45They're calling out a big victory for the Democrats in the U.S. midterm results.
02:50How do you see this outcome and what will be the impact on global markets, including India?
02:56Yeah, overall, you know, Sakshi, what is going to happen is there will be a gridlock in decision-making in
03:04the U.S.
03:05The presidency stays with the Republicans.
03:08The House majority is confirmed that it's moving to the Democrats.
03:12So, most of the financial bills, a lot of the subpoena powers, a lot of the investigative powers go to
03:20the Democrats.
03:21And you can expect heightened oversight of the Trump administration.
03:25The Senate is also most probably going to see a Democrat majority, though a very thin majority.
03:34They won't have enough majority to impeach Trump, even though they might bring an impeachment amendment.
03:41What all this will translate into?
03:44Higher regulatory oversight, stronger regulation of AI and big tech, some amount of retribution on the billionaires who were funding
03:54the Republican campaign.
03:56So, companies like Elon Musk, companies will face some heat in Texas.
04:02And overall, Trump will find it difficult to keep running such a high fiscal deficit, to keep on spending on
04:11his favorite projects, including defense.
04:15Iran war, hopefully, they will exercise some control on Trump now.
04:20The other option is, Trump has said that if I lose, I'll become Mr. Vito.
04:26So, the veto power of the U.S. president is very strong.
04:30So, in terms of actually anything positive coming, he'll be able to veto it.
04:36And in turn, the Democrats will ensure that none of his agenda gets passed through.
04:42So, he becomes a lame duck.
04:43For India, you know, you can expect even more problems because that Russian oil bill is still U.S. statute.
04:53And the Democrats are anti-Russia.
04:56They will pursue that.
04:58So, you can expect that.
05:00Don't expect tariffs to go away.
05:02Remember, the visa staffing in India was reduced under Biden.
05:08And it never came back.
05:10So, don't expect anything great for India with the Democrats coming back.
05:16The tariffs will stay in place.
05:18The Trump policies will stay in place.
05:20And if anything, Democrats will again bring an anti-Russia bias into policymaking.
05:26So, that 100% tariff that you were talking about connected to Russian oil, it is a bigger risk under
05:33a Democrat Congress.
05:34But the good news, Trump will veto it because Trump wants a solution to it.
05:40So, there is a control on that in terms of the Trump veto.
05:44Absolutely.
05:45Let's look at the markets open right in the few minutes of opening.
05:49We're looking at the markets now turn green.
05:5123,830 is upon us.
05:54There's a 20 points of an uptick.
05:55So, slightly higher, you know, right after opening in the red is what we are seeing.
06:00The Nifty Bank also 1.10% up.
06:02Looking at the FMCG index continuing with its rally since yesterday, 0.7% higher as the top mover now.
06:09Banking and financial names also in favor.
06:12We're also looking at auto stocks about 1.10% higher.
06:15Broader markets, however, are still taking a backseat at the moment.
06:18But let's look at the key stocks.
06:20ITC is the top mover, 1.7% higher.
06:23State Bank of India post results, 1.4% up.
06:26Max Healthcare Apollo Hospital, so the healthcare stocks are in focus.
06:29You're also looking at Nestle in focus.
06:32Sun Pharma in focus.
06:34Bharat Electronics also, you know, among the top movers as far as the Nifty is concerned.
06:39But on the declining side, BSE is declining, 1.6% lower.
06:43HCL Tech, Hindalco, NTPC and Tata Steel.
06:45Those are some of the other stocks that are on the lagging front as well.
06:49But Ajay sir, let's try and understand on more, you know, news that is, you know, in focus of late.
06:56You did talk to us about what will happen on the U.S. midterm elections as an impact on global
07:02markets and on India as well.
07:04Not too much of a big positive coming in for India, even if Democrats have won.
07:09But there will be a gridlock is what you pointed out.
07:12But let's try and understand what happens to the macros that have been impacting us so far.
07:16The crude oil prices, for instance, how do you expect those to move from here?
07:21Yeah, you know, Trump has given an interview to Financial Times where he has said that he does not see
07:28any action on Iran right now beyond the economic sanctions and the blockade.
07:33So that is positive, but you have to take the American pronouncements with a pinch of salt.
07:40Because remember, February 27th, negotiations were on and the Omani foreign minister, in fact, flew to U.S. along with
07:48the American negotiators to present the Iranian offer.
07:53And on February 28th, out of the blue, there was a bombing and the top 50 leaders of Iran were
08:00taken out.
08:00So the world will be on edge, at least for the next two weeks.
08:05And remember, this Congress will come into picture only in January.
08:10So the next near two months, the existing Republican Congress is very much in place.
08:17Will Trump try to push through some of his agenda where he still has the majority in the U.S.
08:23Senate and U.S. House?
08:25That's one question.
08:27Second, will he try to increase the ambit of the Iranian war before some control comes on him by mid
08:36-January?
08:37That is a possibility.
08:39So markets will be slightly on edge on that.
08:43It's not that Trump's powers are extinguished today.
08:46There will be a greater oversight come January.
08:49But the president has enough powers.
08:52And especially on war, the president has executive privileges which he can exercise.
08:58So it is still a very debatable point on what is the off-ramp for Iran.
09:05There are a lot of diplomatic efforts being made.
09:09Chinese also put its hat in the ring.
09:12They have appointed an envoy for the Middle East.
09:15Absolutely.
09:16We have a breaking news coming in, Ajay sir.
09:18This is Trump's first reaction to imminent mid-term loss.
09:21Trump reasons it out despite the poll reverses.
09:25Also, Trump has said that I wasn't on the ballot.
09:27He actually says, would have won landslide if I were on the ballot.
09:31He also has posted saying that I wasn't on the ballot.
09:35And if I was, we would have won in a landslide.
09:38Thank you for your attention to this matter, President Donald J. Trump.
09:41That's what he has posted on social media.
09:44That's the first reaction coming in from Donald Trump on an imminent loss that we are seeing.
09:49But he says that he could have won.
09:52But we also have a reaction coming in on the same.
09:57All right.
09:58Okay.
09:58Ajay sir, that's the first reaction coming in from Donald Trump.
10:02How would you look at the statement coming in?
10:06Yeah.
10:06So, you know, Trump has a very selective amnesia.
10:10Throughout this campaign, he kept saying, pretend that I am on the ballot.
10:14I am on the ballot for each and every of the 435 House seats and 35 Senate seats
10:23and every governor, every governorial position of the 36 governor seats that were up for polling.
10:33So, throughout the campaign, he said, I am on the ballot.
10:36So, consider you voting for me.
10:39And today, he says that I wasn't.
10:41So, very easily, he has shifted the blame on the party.
10:45The party has been weakened by him.
10:47It is a shell of itself.
10:49The U.S. Congress, which has very strong constitutional protections, has become very weak.
10:55They have become a sheep being led by Trump.
10:59So, that has been the loss.
11:02But again, I am saying for India, there is no easy way out.
11:08We cannot depend on the U.S. as a very dependable strategic partner,
11:14especially given the threat to India from China.
11:17Be it Democrat, be it Republicans, it really does not matter.
11:22We'll have to make ourselves strong.
11:25So, I'm not expecting any great things to come for India out of this election, per se.
11:32The Republicans also haven't increased the visa staffing.
11:35So, still, you are taking months and months to get a U.S. visa interview.
11:41And look at what is happening on H-1B and all those things.
11:45A lot of the Indian-Americans, actually, as per polls, they voted Democrat this time.
11:51They were enthused by Trump, but the anti-immigrant policies.
11:55And, you know, how much a leader can be out of whack with reality is shown by the polls,
12:02where Americans were saying 60% of them said higher prices, affordability, economy is our main issue.
12:10So, Iran was hardly 10% and immigration was 14%.
12:15So, 1 in 10 Americans would be bothered about immigration, but Trump made that the center point.
12:22It was an unnecessary war on Iran.
12:24It has destabilized the entire Middle East.
12:27And for India, there are complications because we have millions of Indians working in that region.
12:32We have $10 billion of remittance coming.
12:36And then crude oil, of course, is the biggest issue for us.
12:39Fertilizer pricing, sulfur pricing, all those issues have been unleashed on India.
12:44So, I don't see off-ramp very easily.
12:47Hopefully, the U.S. Congress will now force him to get into at least retreat.
12:54There won't be any agreement because Iran, those seven conditions, no U.S. administration can fulfill those.
13:01Same way, Iranians will not give up their nuclear.
13:06So, those things, of course, are to be taken into note.
13:09But for India, no very big positive.
13:11We are not going to be having an easy run with America at this point in time, as you say.
13:16But let's focus back on the Indian markets.
13:18We are seeing markets move now towards 23,900.
13:21There is a substantial move.
13:23Last couple of sessions, we have seen four sessions of substantial move on the Indian market.
13:28You know, how are you looking at this improvement in the domestic markets?
13:32What do you think are the factors that are leading this recovery?
13:35There is also this entire talk about growing clamor for LTCG cut and the government finally paying heed.
13:41Do you think that is going to be a big game changer or turnaround point for Indian markets that have
13:46been lying low for some time now?
13:48Yeah, no, definitely.
13:50There seems to be a shift over the last one week and earlier part of this week.
13:56We have seen a strong FI net inflows coming back.
14:00There is a shift.
14:01Overall, there is some amount of asset allocation going out of the AI momentum plays from the hyperscalers into the
14:10rest of the market.
14:11And India has started seeing a bit of that.
14:15Taiwan and Korea are seeing very strong outflows.
14:18Taiwan, in fact, had a lifetime outflow, lifetime high outflow of $31 billion.
14:24Sure.
14:25So Indian market is benefiting from that.
14:28We had everything going on a domestic sense.
14:31So our macros were strong.
14:33Economy was growing.
14:35Earnings recovery was there.
14:36Crude was the spoiler.
14:38That has got factored in now.
14:40And the government has not passed on the entire part of the crude.
14:44So in an anti-AI trade, we are seeing some amount of allocations coming back to India, which should be
14:51positive.
14:52But again, we are very dependent on the crude price.
14:55So until the Iran situation stabilizes, crude comes back to 70, you will not see a stable market for India.
15:05The good news is market will move about three months before.
15:09So the moment there is a probability goes up that there is a solution to Iran, or at least there
15:17is a de-escalation with the U.S. withdrawing its forces,
15:21that will then see Indian markets really surge.
15:24So some amount of money is coming in.
15:26But FIs are still 88% net short.
15:29They used to be 93%, but still sitting on short.
15:33So we have to catch them.
15:35We have to make this market rise and make those shorts bleed.
15:39Then you will have a stable market.
15:42So I would be a little skeptical, more because of the Iran factor and the Iran factor.
15:47All right, Ajita, thank you so much for being with us.
15:50But there's another news coming in, viewers.
15:52This is Jio Platforms, which has reportedly held talks with several companies, including Comcast and Chata Communication,
15:58about licensing wireless broadband technology in exchange for potential stakes in the business.
16:03The report by Reuters is indicating that Jio has also held discussions with South Africa's MTM group.
16:09But the talks broke down because the two sides were unable to agree on valuation and certain licensing issues.
16:15Jio has for months signaled plans to expand internationally with its propriety broadband technology,
16:21which it says offers cheaper internet to homes than traditional cable networks or mobile-based services as well.
16:29There's another breaking news coming in, viewers.
16:31This is Donald Trump conceding defeat in midterm elections.
16:34Donald Trump to US media has said, ready to accept poll results.
16:39Trump to NYT has said, prepared to accept midterm election results.
16:44That's what Donald Trump is saying.
16:46Ready to work with Democrats is another big statement coming in from Donald Trump.
16:51Right, as we are getting you the US midterm election results.
16:55Trump has finally conceded defeat and he says, we will work something out.
16:59Trump has said this to New York Times, fully prepared to accept midterm election results.
17:06Donald Trump has told the New York Times in an interview that he was absolutely willing to accept these results
17:12and was prepared to work with Democrats.
17:14He says, and I quote, we'll, you know, look forward to working with them.
17:20Unquote.
17:20He has said, we'll probably work something out.
17:23Those are the first statements of conceding defeat coming in from President Donald Trump on the US midterm elections as
17:31well.
17:31So he says to New York Times that he's prepared to accept the midterm election results.
17:37He's ready to accept the poll results and he's conceding defeat in the midterm elections is what we do know
17:44of at this point in time.
17:45He also says that he's ready to work with the Democrats.
17:49But this is the first statement coming in from Donald Trump, accepting loss in the US midterm elections, accepting defeat
17:57in the US midterm elections.
17:59He says we will work something out.
18:01He's spoken to New York Times saying he's fully prepared to accept the midterm election results.
18:08Donald Trump has told the New York Times in an interview that he's absolutely willing to accept these results.
18:18All right, we have Shri Tanidar, US representative, joining in on the show on the same as well.
18:23The first statements coming in from Donald Trump conceding defeat.
18:26Shri Tanidar, how would you look at this statement coming in from Donald Trump?
18:31And he does say that he's willing to accept the loss.
18:34He also does say that he's willing to work with the Democrats and he will work something out.
18:39What do you make of these three statements?
18:40Well, I welcome Mr. President Trump's statements here and his initial, at least, indication that he's willing to work with
18:51the Democrats.
18:52The American people have sent him a loud and clear message that his handling of the economy, his handling of
19:02the Iran war, his tariffs is not acceptable.
19:05People's lives are tough, prices have gone up, and the message is loud and clear.
19:14Democrats have a landslide victory here and Mr. Trump's willingness.
19:21And I would like to, I would only believe it when I see it, because he has been, run this
19:28government with a lot of arrogance, unilaterally made decisions, you know, disregarded US Constitution.
19:37So if this president is truly means what he's saying now, I welcome that.
19:43Okay, Shri Taneidhar, you know, what do you make of the statements that he had made before, that in case
19:49he loses, he's going to be using all veto powers on anything that he wants to go ahead, despite the
19:56gridlock that may occur at the Senate?
19:58How would you look at that, you know, possibility now?
20:02Adding that is more of how Mr. Trump operates.
20:05You know, he, I have not seen him collaborate, I have not seen him make compromises, you know, he lets
20:15his ego and his arrogance get better off him.
20:19Absolutely.
20:21It remains to be seen.
20:23Now, look, the American people have been very clear about this.
20:27In the last two years, he ran the US government like he got a mandate from the American people.
20:34He made unilateral tariff decisions.
20:38Tariff was the prerogative of US Congress, and he illegally took that into his own hands.
20:45He ran an illegal Iran war.
20:49There's so much that this president did that did not help American people.
20:55The prices of gasoline, prices of diesel, fertilizers have gone up, access to health care is an issue,
21:02and American people are fed up with this president, fed up with the high cost, and we need to do
21:09is work together.
21:12The president is still going to be president for the next two years.
21:15And we need to work together to make things happen.
21:18Yes, Shri Tanidhar, I was coming to that, that he's still going to be the president for the next two
21:23years, at least at this point in time.
21:25What would it mean for all his programs that he will need funding for?
21:30How long can he continue with the kind of fiscal deficit that the country is looking at at this point
21:35in time?
21:36And do you see a kind of a gridlock now coming in on all the decisions?
21:41Will he now turn just into a lame duck president?
21:44Well, the gridlock doesn't have to happen.
21:47If we can have a give and take, make good decisions, first of all, we've got to stop this Iran
21:56war.
21:57We need to get to the negotiating tables and negotiate a win-win agreement with Iran.
22:06We need to, you know, not be as chaotic about tariffs.
22:12And focus has to be on lowering prices, lowering prices of gasoline, lowering prices of groceries.
22:20Everyday health care has to be accessible.
22:23There's a lot that needs to be done.
22:24We need to work together.
22:26It is up to this president.
22:28Is he going to encourage a gridlock, fights with Congress, or is he going to be willing to work to
22:36make American people's lives better?
22:39Absolutely, Shaitanya.
22:40Thank you so much for your initial comments on the first comment made by Donald Trump.
22:44And, of course, the victory towards the Democrats in the U.S. midterm elections as well.
22:51But let's focus back to Indian markets at this point in time, which are soaring higher.
22:56We're back above the 23,900 mark.
22:59Viewers, 129 points up, half odd percent higher.
23:03Yesterday, we had hit a two-month high.
23:05The markets are further catapulting higher.
23:07Across the board, you're looking at strong moves.
23:10And this is the reaction even post the U.S. midterm election results coming in.
23:15Donald Trump accepting the defeat.
23:17Indian markets reacting more positively.
23:19Across the board, there is gain.
23:20You're looking at FMCG, 1.5 percent higher.
23:22Real estate, 1 percent up.
23:24Financials higher in the trade as well.
23:26And across the board, barring just IT rest, all of the sectors are, in fact, higher in trade at this
23:32point in time.
23:33In fact, we're looking at strong moves on the Indian markets after the U.S. midterm election results,
23:39where Donald Trump has conceded defeat.
23:42All right, viewers, we'll wrap it up on that note on the Business Today show right here.
23:47But don't forget to tune in at 3 or 5 p.m. for all the closing action on the Lyle
23:50Street.
23:50I'll be back for that.
23:51I'll be back for that.
23:51I'll be back for that.
23:51I'll be back for that.
23:52I'll be back for that.
23:52I'll be back for that.