- 6 minutes ago
Business Today discusses stock market closings, Tata Group tensions, Andhra Pradesh's investment act, and Kia India's expansion plans.
Category
🗞
NewsTranscript
00:10good afternoon viewers you're watching the business today show with me sakshi patra this
00:14is where i get you all the stock market closing action on the last street but first up let's
00:18take a look at what's hot in the corporate and the financial world this afternoon
00:24markets take a breather after two day bull run we are seeing the sensex marginally trade higher
00:29near 81 900 the nifty is flattish and trading around 25 250 mark banks and financial stocks
00:37support the rally while auto shares have taken a speed breaker hit
00:46nvidia's board is now meeting to decide ceo jensen nuong's future following reports of two alleged
00:52extramarital affairs including one with senior executive and the other with alleged chinese
00:57spy the company is reportedly exploring external ceo candidates while elon musk says hiring one
01:04would be an honor
01:09tensions within the tata group deepen as three noel tata let companies appoint new chairpersons
01:15without reportedly seeking tata sun's customary approval the move raises questions over succession
01:20control and emergence of parallel power centers within the conglomerate
01:28andhra pradesh aims to become the first state in india to introduce an investment protection act
01:32safeguarding investor commitments from policy reversals by successive governments the state
01:37is also setting up escrow accounts to ensure timely payment of incentives
01:49precious metals become more attractive as buyers also head towards gold and silvers as both prices
01:55have eased after diwali mcx gold is now seen slipping 1300 rupees to trade at 1.38 lakh rupees per
02:0210 grams
02:02while silver has shed about 2700 rupees to trade at 1.82 lakh rupees a kilo amid global rate concerns
02:23we'll straight over look at how the markets are shaping up in the last 20 minutes of trade viewers the
02:27nifty is hovering at 25 259 so it's the real estate sector that has suddenly shot up to the top
02:33spot now
02:34with four percent gains on the real estate pack we're also looking at smart gains on the psu banking
02:39space 1.4 percent higher that's contributing to the gains nifty bank overall led by both psu banks
02:45financial services and private sector are inching up higher you're also looking at some gains on the
02:50small and the mid caps of the broader markets clearly participating with small caps now taking the lead
02:55within the uh both mid and small cap space one percent higher for small cap index on the nifty
03:00you have htfc live that is shot up higher four percent up insurance space as a whole has been
03:05gaining momentum spi life insurance also among the gainers nbfc names there's a big flavor coming in
03:11through you can see sriram finance bajaj finance bajaj finsov all of them up and about you're also
03:16looking at some healthcare related stocks like max healthcare that's up you're also looking at bel uh
03:22that's up and about adani group stocks are also buzzing in trade as of now so of course the
03:27momentum continues on the higher side for the market let's welcome shara davasti our head of
03:32research at smith's joining in to share with us a fresh take on the markets shara ji warm welcome
03:37good afternoon to you well we are going to be giving it to you you were the first voice of
03:41big optimism
03:42coming in uh before the market started to rally uh 10 days ago in a one way up move and
03:48you were very
03:49confident that the markets uh are moving past the kind of worries that they were looking at and
03:55we're looking at look at it 25 270 today we'd seen 25 400 in the previous session your sense of
04:02how are
04:03you looking at the markets from here on thank you for remembering i think uh yes we continue to believe
04:10that the quarterly numbers will be something that will provide a very strong tailwind to us
04:15uh now with fii flows also fortunately coming back and as we have been talking about this that
04:22the government is finally looking at fii flows as a positive development and not really looking at
04:27you know that not the opinion has changed that we don't want fii flows i think uh that realization
04:32is very important they read it on the debt side most probably some rationalization on the equity side
04:37will also be there uh which will put us at par with global uh offerings that they have the options
04:43that
04:43the fii's have so that is a very positive development in terms of structural change
04:47and regarding earnings we believe that this time around the next two quarters earnings will be good
04:52and once your political tension dies down i think oil prices and they're obviously connected to that
04:58interest rate trajectory will also get subdued that will be very positive for developing markets and
05:02more so for india uh so we continue to be very positive i think uh we have had a two
05:08year kind of
05:09payout as where the market hasn't done much uh from here on we expect to partly you know recover that
05:15lost ground and then probably head much higher so yeah another thousand two thousand points should
05:20suddenly happen on the positive side for the nifty and i think now with the next leg most probably it
05:26will be much more broad based where the small caps will also participate in a big way so that is
05:31what
05:31we are expecting i think we continue to be very positive on the market so we already have had a
05:35two
05:35kind of base formation now it should be a very strong upward move okay so the optimism is pretty
05:41much there thousand two thousand points from here on even a broad based rally that could be leading
05:46the markets higher with small caps participating there but let's shift focus to the tata group the
05:52leadership tussle within the tata group appears to be intensifying three of noel tata led companies
05:57have appointed new chairpersons without reportedly seeking tata sun's customary approval raising questions
06:03over succession control and the emergence of parallel power centers within the conglomerate
06:08krishna kopal and my colleague is joining in to with uh more details on the same krishna first up
06:14how would you read this uh three new chairpersons appointed without reportedly seeking tc a tata sun's
06:21customary approval uh what is the usual process like why do you think this would have happened and what
06:28does it really uh lead to um you know investors shareholders really thinking and questioning
06:34over say the emergence of parallel power centers hello sakshi uh in a normal scenario this winter
06:40mattered because at the end of the day these are professionally run companies uh you must understand
06:45we're living in a very peculiar situation as far as the group is concerned one it has the whole
06:48core structure which is tata sun's but more importantly we live in a very peculiar time because there's
06:53obviously a battle playing out between two factions so it's almost a case where uh when the two
06:57factions don't get long every decision that one takes obviously doesn't go down well with the
07:00other and this is really one more case in that particular example the way i see it i think it's
07:05obviously lead up to the tata sun's board meeting scheduled to take place end of this month uh it's
07:09just another affirmation unfortunate to the fact that all is not well between old tatan and
07:13chandrashekran yeah uh one cannot just look at it as just a scenario where tata sun's was not
07:17informed i think the bigger picture a little larger message to take away from the takeaway is the fact
07:22that all is not well and we could uh see a pretty stormy board meeting on the 20th of
07:26numbers things send as we speak okay krishna do keep an eye out on that board meeting will be of
07:32extreme importance now after these decisions uh stormy as you call it is going to be looked at as
07:38to how our decisions will be taken there and how will these uh prior decisions be looked into uh going
07:43forward as well krishna thanks a lot for getting us those updates as always on the tata group and the
07:48tassel there at the boardroom level um sharaji i'm going to be taking a word from you uh more and
07:53more
07:54uh you know developments keep coming on a day-to-day basis when it comes to the tata boardroom tassel
07:59um you know there seems to be push and uh pull at this um you know time in space both
08:05between the
08:06noel tata group as well as um you know the tata sons led by chandrashekran how would you look at
08:12such
08:13decisions being taken and does it really impact shareholders investors long-term uh focus on their
08:20portfolios with the tata group or at this point in time you would be little cautious in the group
08:25and investing a fresh there yeah i think unless or until uh any particular stocks offers me a very
08:33high margin of safety uh which you know most pnpb does at this point in time so maybe i will
08:38take a
08:38right there but generally such tassels whether they are family tassels or you know arrangement kind
08:44of corporate tassels they are not good for shareholders so i think most people would like
08:48to avoid uh the situation right now till clarity emerges uh so i think uh be a bit skeptical unless
08:54and until you have something which is a very clear-cut valuation arbitral that you are getting
08:59uh it doesn't really make sense uh so uh pmpv and data communication data communication we have
09:04bullish long term even dcs at these valuations we don't see much headroom for falling uh so i think
09:10two three stories where you have margin of safety you can still continue to hold uh for those where
09:15you don't have that yeah i think certainly for that high growth lever that you need to play out
09:19you need clarity at the top of the table so if that is not coming in there is confusion there
09:27absolutely let's focus on some of the buzzing sectors sharaji real estate sector suddenly pulled
09:32up pace four percent higher in trade how are you looking at it uh we are very bullish i think
09:38uh whatever gdp development targets we have seen for most real estate companies uh we have been
09:42bullish for quite some time now uh in between a correction has happened i think now again they
09:47are rallying much higher so i think once that execution starts showing up in the numbers there
09:52could be a very strong case for relating of most of the real estate phase uh both these properties
09:57remains our topic there okay fantastic so the space is uh set for reading once again is we're going to
10:04be
10:04looking at it uh specific stocks that are in focus as well but getting you more news from andhra
10:09pradesh viewers which is planning to introduce an investment in protection act to safeguard investor
10:15commitments from policy reversals by successive governments and the state now aims to become the
10:20first in india to bring such a dedicated legal framework chief minister of andhra pradesh and chandra
10:25bavoon ahidu has announced the proposal at the cia partnership summit in vishakapatnam let's listen
10:31into what he had to say this is where i am requesting union minister investment protection act
10:40every investor is investing they are having so many doubts regime change
10:48and also vindicta vindicta politics so many things they are suffering i am requesting i am bringing act
10:56the state act i am sending it to you after passing bill you have to take the central government and
11:04also make it central act and then you can see flow of investment total global investors will be in india
11:13i am totally confident i am confident our ministry is so intelligent and also powerful
11:20you can convince honorable prime minister our honorable prime minister always proactive i am confident they
11:28will get it done if you can do all these things then india will be unstoppable
11:36let's also focus on the big investments that andhra pradesh is eyeing as far as the big tech data
11:42center space is concerned data centers on the one hand has brought the republicans down in the recent us
11:48midterm elections the industry while booming in india is also an eye of the storm with their
11:54substantial power and water consumption let's actually listen into what business today television
12:00spoke to top under official on how the state is handling the challenge differently
12:06so given how resource intensive ai data centers are how does andhra pradesh
12:13plan to manage its requirements for power and water see in terms of power we know that you know
12:21we are doing really large scale on solar power and also we have a decent amount of
12:28wind power as well as hydro power we are banking on this at the same time one advantage that is
12:35that most of
12:36the data centers that we are uh the data centers that we are getting into the state we are encouraging
12:40them to be based on the ctus so that they can lap into the the central grid and power produce
12:46anywhere
12:47from himachal to to kerala to you know gujarat to assam is accessible and available uh that is one advantage
12:56india has which many countries don't have we have a single uh a grid which uh can connect all the
13:02regional grids
13:02so that's an advantage we have in terms of water most of the facilities that we are come getting
13:10are either mostly air-cooled and where there are water-cooled uh the facilities are also
13:18are doing a lot of desalination for example the 100 gigawatt reliance project is a desalination
13:25water-based project the google is an air-cooled project and the rest of the projects also
13:32uh they they have a mandate of having uh using 80 percent of the power coming from a green source
13:39so internally also each of the data center companies have an internal benching mark of
13:43eight percent green power so that takes care of the power part and and of course water part i have
13:50already told so we have uh we have enough water available uh to service the data centers
14:01uh let's uh take a word from our special guest sharat vasti there on the entire it space and how
14:08uh
14:08the massive moves investments towards data centers is going to be looked at from a market participant
14:14point of view as well sharaji um of course we've seen uh some sort of a cool off in ai
14:19trade globally
14:20that's also led to some uptick on the domestic id firms back home how are you looking at the it
14:26space
14:27as at this point in time to uh you know we are not escaping this entire ais we may be
14:33late but we
14:33are going to be jumping onto the bandwagon we are going to be building in uh huge data centers and
14:39we
14:39are listening from state representatives how they are attracting massive flows for the same as well
14:43how are you looking at the investment opportunities around data centers getting created for new investors
14:50yeah i think as you rightly pointed out sakshi that uh most of the mighty companies have already
14:55ventured into ai and this is a big difference with what we have been doing over the last decade or
15:00two
15:00where we usually followed our international counterparts with a delay of around three to
15:04four years so this time around we are moving at par with what our international
15:09you know comparables are doing uh so yes i think uh the current quarter revenues etc from ai from
15:16various companies are already there to see and uh we believe that at these valuations there is high
15:22probability that uh probably the international ai trade has peaked out with them reaching you
15:27know 40 40 50 percent of the market cap in most markets uh so i think there is a high
15:32possibility
15:32that indian it will continue to see improvement from here on in terms of prices in terms of expected
15:38numbers and the initial phase of it deployment or ai deployment will also give them more business
15:44opportunity uh maybe at a later stage it might disrupt a bit but i think by then the management
15:48consultancy and the large order books or the large order wins that they have done over the last
15:53you know three four quarters that should benefit them so we are not very nervous regarding the data
15:58center play and uh harmful effect on water consumption i think that is a problem that you have
16:03because the type of consumption that they have is pretty huge so that is a problem that they have uh
16:09gradually so gradually i think uh they will uh improve on that and uh most probably you know
16:15that uh anantraj kind of stories could be good stories to bet on for the data center kind of story
16:20in india to start with those who are involved in betting of data centers uh so yeah i don't think
16:26it
16:26is going to be very disruptive for it in the medium to short term a very long term yes but
16:31i think by then
16:32even their capabilities would ramp up at a substantial speed that should help them avoid a catastrophe out
16:38of ai to the products um sharaji how would you look at the banking nbfc uh psu banking's uh story
16:48are yet again taking center stage uh last couple of sessions when we've seen the markets move ahead
16:53this is the space that's taking the top spot in terms of moving the markets ahead even now
16:57uh nifty bank is outperforming the nifty uh look at what's happening with psu banks after a four
17:03percent move there's another one and a half percent move today uh how are you looking at this fresh
17:07rally take place and what would you advise investors uh see i think we're in the psu banks i think
17:14uh
17:14mostly fairly valued at these prices uh most of them have come up to for one time price to book
17:19sbi for all it weighs at around 1.5 1.6 and i think sbi will continue to do that
17:25being the largest player
17:26and after a very long time the management is very confident about the long-term
17:30aggressive growth rate so i think that is a stock that can get related on the upside
17:34due to the sheer size and aggression of the management as it plays out uh other stories i
17:40think indian bank is something that we are looking at i would not call it inexpensive but asset quality
17:44has been a forte that they were able to handle in the past also uh post alabad bank merger i
17:49think
17:50there was some derailment but they have come back to it so indian bank is another one that we are
17:54looking at and maybe a union bank could surprise you on the upside with positive developments for
17:59the rest of them to improve on the psu bank basket i think uh they have to have very strong
18:04uh recoveries
18:05from the return of assets that is something that could surprise you on the upside but other than
18:10that i think at current valuations maybe market performance would be the best that you can expect
18:14from the broader psu banner basket on the private bank side i think hdfc remains our top bet
18:20it looks like a no-brainer with the management issue resolved most probably the integration benefits
18:24start showing up now again a large bank trying to be very aggressive with respect to world growth
18:30targets so i think hdfc bank remains our top bet in that space uh maybe some uh base hunting can
18:36be
18:36done in access bank also because valuation comfort is available there also but then they have had their
18:41share of you know issues that they keep coming up cropping up from time to time but hdfc bank seems
18:47like a no-brainer at this point in time i think most of the issues are behind us and there
18:51should
18:51be a strong recovery there so we are working with targets of 1050 1100 there okay 1100 kind of targets
18:58coming in on hdfc bank a no-brainer at this point in time after the kind of four five years
19:02of no
19:02returns or uh you know under performance that we've seen on the bank play out lots of uh negatives
19:07already in the price and behind now uh let's also look at some of the earnings that have come in
19:12let's look at the defense names uh sharaji with you uh we saw bharat dynamics come out with q2
19:16results the stock has tumbled about four percent post earnings uh there is a weak set that we are
19:21looking at operating profit is fallen by 57 or uh that's leading to some kind of a decline
19:26therefore you are also looking at the defense sector now cooling off from the day's high level
19:30even hl the leader of the pack in the defense names in terms of the weightage stock has fallen after
19:36a
19:36marginal miss on the uh expectations as far as the margins were concerned however the revenue has
19:42uh seen an uptick of 15 or percent uh how are you looking at the defense names as of now
19:47uh see
19:49firstly i want to uh tell one thing you know with defense what happens is you can't really look at
19:54it on a quarterly basis these are all long-term gestation projects complicated projects that most
19:58of them handle whether it is the shipbuilding side of the business or the pure defense side of the
20:03business the approval process is pretty stringent and time taking also so all this takes a bit of
20:07time and this is an international phenomenon this is not something with respect to indian defense
20:11market only uh which is still in its pretty nascent stage so i think uh but they will keep improving
20:17uh bel bdl i think fairly squarely valued unless and under the order move progression happens that you
20:22know at a very different kind of speed uh maybe they would get related uh but uh hal be ml
20:29uh these look like and the whole shipping uh construction i think that is the story that
20:35we are very bullish on the type of additions that can happen to you know the order books is very
20:40aggressive so whether it's grsc or chain or mass now i think they look like excellent bets at these
20:45levels hal remains our top bet for targets of 6500 plus and uh well for another 30 35 upside from
20:52current prices seems like uh to be happening very easily with the type of numbers they are expected to
20:57report over the next year okay let's take certain questions with you uh we do have a lot of our
21:04viewers sending in some questions from you know to uh have it answered by you deepak sharma from shimla
21:09has written in and asks is it worth investing in psu banks um you know for the long-term perspective
21:17uh yeah as we have spoken already i think uh not across the board uh but be choosy i think
21:23uh sbi remains
21:24the top bed within that space if you want to diversify you could even look at maybe you know
21:29uh union bank and an indian bank they could also probably give you very decent returns from here
21:34but i mean across the board uh strategy in psu banks or a psu bank index or mutual fund i
21:40think
21:41that would not lead that kind of results that we expect at your best they would lead you market
21:45returns market related returns basically no out performance and such okay arpit choudhury from
21:51lakhanow writes in and asks you is it the right time to invest in fertilizer stocks if i have a
21:56one year time horizon yeah could be i think a lot of them have corrected substantially so within that
22:03space you can look at paradeep phosphate i think uh that is something that has very good growth rates
22:08over the next two and a half years uh coromandel would be a very good story to look at i
22:13think the
22:13rest of the pack would also do well but i think uh paradeep and coromandel would probably outperform
22:18the larger basket over the next one and a half year okay one more question and this one is from
22:23ankit shah he's from bengaluru and he asks you what's your outlook on real estate and real estate
22:28ancillary stocks if i have a three to six months horizon i think very positive but generally with
22:35real estate the gestation periods can be a little longer so maybe you miss it by a quarter so three
22:40to
22:40six months uh it does become a bit difficult to take a call but i think uh the way the
22:46development is
22:46happening and the additions are happening uh we could be in a sweet spot and since we are also
22:51bullish on the broader markets i think yeah next three months even real estate should move pretty
22:55well okay got that well we'll thank you then sharadji for being with us on the show thank you so
23:00much and
23:00for answering all those queries of our viewers and giving us an insight into the market's outlook
23:05we're just one minute away from the market's close uh 25 000 to 99 uh 44 points of an uptick
23:12is what you
23:12saw so it was a range pound very choppy session through the course of the day but we managed to
23:18pull up towards 25 300 yet again right towards the end of the session a lot of pockets that supported
23:25the move real estate uh banking space psu bank small caps all of these uh definitely lent some support
23:32to the nifty uh we did see nbfc big names like bajaj finance freedom finance taking it from the front
23:37spi moved up uh icic bank also moved up in trade insurance names were also doing very well in the
23:44session but where the declining action came in today of course some of the it names that took a back
23:49foot uh you saw even some auto names on the back foot as well m&m was declining uh you
23:55saw nestle on
23:56the back foot power grid hindustan unilever grassim trent lnt apollo hospitals as some stocks that were
24:03actually um not really participating in the session today but large part of the gains has actually come
24:08in from the banking financial space bsu banks and you're looking at some small caps names uh that
24:14really lend support so within the mid and small caps from the broader market space you had paris
24:19healthcare smartly higher in trade today you had lead revenues technologies execo that is also moving
24:25up idfc first bank also moved up higher in trade we also did see names like me show doing very
24:31well
24:31in the session today capital markets related stocks exchange related stocks did well cdsl and you know
24:38exchange related names also did very well in the trade as well but time to focus on the auto space
24:44once again in the andhra pradesh investment spree we are looking at massive news for the auto sector
24:49kia india has announced a massive two billion dollar investment for the second plant in andhra pradesh
24:54in fact speaking at cia partnership summit being held in viceac ceo guangu li has said that the
25:01expansion will create 12 000 jobs and also push annual capacity past six lakh vehicles let's listen
25:08into what you have to say our commitment extends beyond the manufacturing through supply ecosystem
25:18development and the csr initiative and education healthcare skill development and community welfare
25:26we remain committed committed to the sustainable progress of andhra pradesh
25:33today i'm so delighted to announce the the expansion of kia presence in andhra pradesh
25:42through the establishment of an additional manufacturing plant with an investment of
25:48approximately 2 billion u.s dollar this project is expected to create around 12 12 000 jobs and increase
25:59kia india's annual production capacity to 630 000 vehicles this investment reflects the kia india's strong
26:08confidence in andhra pradesh and our long-term commitment to india
26:15we look forward to deepening our partnership with the government of andhra pradesh and contributing the
26:22state of ambition of becoming a global manufacturing and innovation hub together we are built not just the
26:32automobiles but jobs opportunities and a strong future for andhra pradesh and india
26:43also india is pitching itself as a trusted global partner for investment highlighting its support to
26:49over 100 countries during the covet pandemic at the cia partnership summit in vishaka patnam union
26:55commerce minister piyush koel drew an unusual comparison with bahubali's katappa to underline india's message of trust and reliability let's
27:05listen in
27:07we had an indian movie probably coming out of this region called bahubali
27:16for several years
27:17for several years we kept wondering there's a particular scene in that movie i think the indian friends will resonate
27:25with it
27:28in which katappa kills bahubali
27:34and it remained a mystery for two years why katappa killed bahubali
27:42in a world full of katappas india today offers something rare
27:52all right viewers it's time to wrap up the business today show right here but you stay tuned on to
27:57india
27:57today much more coming up on the other side but we'll be back to track the markets also tomorrow morning
28:02at 9 5 a.m