- 3 weeks ago
Investors are trying to understand why the momentum has faded and where they should put their money at a time when mid-cap and small-cap stocks continue to face pressure.
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00:00good morning and welcome to market opening on our collab show between business today and India
00:20today TV just after 9 we're here to get you all the market opening action let's take a look at
00:25what's hot in the corporate and financial world today big exclusive for you on PSU banks the
00:30government has wrapped up into ministerial consultations to raise the FDI limit to 49
00:35percent sources tell business today TV a cabinet note is expected soon as the center looks to
00:41strengthen state-run banks IPO action continues on the last street as corona remedies and wake fit
00:52innovations to list today with gray market signals indicating a positive debut one main
00:57board IPO KSH International and three SME issues lined up this week while ICICI Prudential AMC lists on
01:04Friday television prices likely to climb three to four percent from January reports suggest hit by
01:14a global memory chip shortage and the repeat depreciation beyond 90 to the dollar low domestic
01:21value addition and higher import costs are squeezing manufacturers global markets remain cautious
01:30after US stocks close lower on Friday futures are flat after a mixed week on Wall Street Asian markets
01:35flip after key China economic data gift nifty signaling a gap down start while silver retreats
01:42and gold hits a seven-week high Elon Musk SpaceX more than 20 years after its founding is preparing for an IPO next year says Bloomberg the company's new stock price points to an 800 billion dollar valuation a record-breaking move in the global space industry
02:02first up the big business today exclusive sources have revealed that government is set to consider raising the FDI limit in public sector banks for more on this exclusive report let's go across to Karishma Sudhani
02:22Karishma what are you picking up from the corridors of the finance ministry and how soon is this going to happen as the markets have been waiting for clarity on this
02:29well we're learning from our sources that ministry of finance has completed inter-ministerial consultations on its proposal to increase foreign ownership in public sector banks from current 20 percent to that of 49 percent let's not forget that it was about say two months ago that we had learned
02:59this in fact we are being told that a cabinet note is likely going to be floated soon and just before budget this could have consensus if the cabinet takes it up one of the big reasons why government is wanting foreign ownership to come into public sector banks and is in order to of course get foreign capital but it is also to bring Indian PSBs
03:26a global competitive platform on an international market especially with credit demand rising in India in fact policymakers also believe that over the years public sector banks have seen less market valuations in compared to their private peers despite the fact that their balance sheet and asset quality has only got better with each year in fact we have currently 12 public sector banks
03:54public sector banks and recently a lot of reform changes in private sector banks which now also involves getting FDI of up to 74 percent has made them competitive on a global scale and if PSBs are given this chance then they'll do better too and India has always aimed to have its public sector banks become one of the top names when it comes to global markets
04:22all right that's on the PSU banks we also joined now by my colleague Shailendra Bhatnagar chief analyst and editor markets Shail good morning so far the setup is looking tepid really reducing any kind of momentum brief momentum that we might have seen late on Friday nifty 50 showing a gap down and clearly it's the global sentiment weighing again very mixed given that tech is once again looking weak and that sell-off ensuing mixed use coming in from Wall Street from Asia this month and that's the
04:52morning in terms of data and of course lots of other traveling news coming in around the world shell
04:59well Abha good morning first of all in a very warm welcome to all our viewers we'll take that as an opportunity to get into the market on the long side so what's happening is strength on bank nifty and the nifty is looking better after two weeks of continuous selling but thursday and
05:22friday were good we've added about 280 points yet ended lower on a weekly basis so the trade is skewed in favor of longs this early morning dip that is coming on the index should be used as an opportunity on the long side of course please consult your financial advisor but lots of quality
05:44quality stocks in the financial services space and the housing space are doing pretty well keep an eye out on pnb housing there is strength coming back into it look out for ambuja cement on the long side sundaram finance is looking good and of course the all time favorites ab capital lnt finance chola mandalam finance these are all stocks which have corrected over the last two weeks and are now again giving an opportunity for smart buyers to be
06:13to be back on the long side of course you need to consult an independent financial advisor should you want to make a short term or a long term entry
06:23Abha
06:23all right we'll also get amrish baliga in in just a moment we're just counting down to market opening so let me just recap some of the other news makers for you a few brokerage views also
06:33uh clsa an upgrade to a hold to jsw energy target price of 486 coming in there ubs has got a buy call on federal bank target price of 310 that's from 250
06:46uh so looking good on federal jeffrey's has got a buy on hindustan zinc with a target price of 660 on hindustan zinc so some of these of course have been
06:54um key favorites in the market federal bank hindustan zinc and continuing to attract positive brokerage upgrades morgan stanley's got an equal weight on
07:03lens card with a target of 445 saying that at current level it's fairly valued that's the opening bell for you let's pull up some of the
07:12movers and shakers this monday morning take a look at where we stand the index itself is just marginally down
07:17at 26003 so not too bad given that we're still holding 26 000 nifty bank is down about a quarter of a percent right now
07:26let's pull up some of those uh index gainers and losers for you and take a look at where some of the action is coming in
07:31this morning and uh as uh shell was anticipating sriram finance top of the charts half a percent up there
07:37asian paints is back in action this monday uh bajaj auto spi life coal india and it looks like that is
07:43the end of the gainers list so the mood is clearly definitely skewed on the downside trend ntpc
07:50on gc one percent cuts coming in on some of these names this morning let's pull up some of the other
07:56losers for you as well it's a it's pretty much across the board not necessarily theme based supply hero ntpc
08:02everything is trending lower right now we do have some uh news makers will continue to pull them up for you
08:09uh 197 has put in over 2 000 crores into pay tm payment services through a rights issue uh we'll see if that's reacting
08:17to anything we've got parat electronics uh with orders worth seven eight hundred crores so that's upping as order flows and that's
08:24that's one that's in the news as well let's pull that up as well uh we've got um
08:28esaf small finance bank saying that there has been an approval from the board for a sale of up to 1700
08:35crores of npas so we'll pull that one up and just see if that's held the pool carrying a provision
08:40coverage of 94 percent so it's uh good news and that's about four tenths of percent higher federal
08:46bank with a buy call let's pull that up and see if it's reacting as within the sun's ring which is one of
08:50the stars last week as well just our opening ticks shell what are you spotting
08:55well abha just as the gift 50 was pointing and the weakness that has crept into uh from wall street
09:05and asian markets you have a downtick on the nifty i won't be worried at all over the last two trading
09:11sessions we've added 280 points so 80 have been taken away in the market from uh the very start
09:20advanced decline is weak one is to two favoring bears 880 stocks in the green 1555 in the red so
09:29the first 15 minute candle on the nifty will be of consequence 19 indices that we track 18 are in the red
09:39so that's selling pressure coming in auto under pressure pharma under pressure you have the least
09:46amount of pain coming into metals and the banking space so they are looking strong by the dips into
09:53metals in particular hindustan zinc driven by uh silver uh silver ideally uh should be doing very very
10:02well and i'm looking at a price beyond two lakhs per kilo uh this is a trade that we've suggested ever
10:10since uh one lakh ten thousand so that's doing phenomenally well and therefore hindustan zinc uh
10:15overall the mood is dullish let's just accept it i'm rich good morning and thank you for being patient
10:22with us as we just recap the opening bell uh markets have been sluggish now for a couple of weeks and
10:27you know we've just been talking about how absolutely no trigger is driving any kind of
10:32reaction from the markets uh what's really going on according to you i see the big trigger we were
10:37expecting was the u.s india trade treaty now we don't know as to when finally it'll happen whether
10:42it'll happen in january or whether it'll happen in march so i think that's on the back burner as far
10:47as the markets are concerned as of now and i think the pain is more on the mid cap and the small caps i
10:52mean we have seen a very sharp decline although we saw some amount of bounce back recently but that's
10:57nothing compared to the sort of a fall which you have seen but then overall if you see the mf flows
11:03have been uh extremely good i think november was again as a record the macro numbers are decent you
11:09had a decent q2 earnings where which surprising the positive now if the q3 earnings also show a similar
11:15trend i think the stage would be set for a good rally including i mean budget expectations and if the
11:21budget is good uh so i mean the way i would see it is uh if if one has uh the confidence and the
11:29courage and liquidity uh possibly a good time to start investing again all right you know it's
11:36interesting that you brought up the trade deal because you're absolutely right that's the one big
11:40overhang that we continue to see um you know in terms of uh the news that we're getting source-based
11:47news amrish on psu banks and allowing those fdr limits to be increased uh do you feel perhaps
11:53that could provide a fillip when it comes to the psb banking space are you watching out for that or does
11:57that not move the needle for you so much because it's something that we were anticipating then it
12:01got rolled back now we're hearing from our sources that it is under consideration i just see just like
12:07the way private sector uh listed entity management the way they deny a certain uh i mean strong rumors
12:16and then it finally happens i think it's similar in case of psu banks i mean you had the ministry
12:22coming at denying that uh there would be any increase in uh the fdr limit or even the consolidation
12:29which we've been talking about this is just about two three weeks back and now we are saying that
12:33finally it's going to happen yes i mean this is this will surely happen uh the fdr limit would be
12:39increased and at the same time over the next few months we'll also see consolidation happening
12:43as far as the psu banks are concerned finally i think we'll have only about four or five banks
12:48so from that and again looking at the sort of uh i mean earnings uh growth which i mean most of the
12:54psu banks have been showing balance sheets have improved i think it's still a good time to get into
12:59these psu banks i think we should see a very good rally over the next nine to twelve months
13:03okay we've got a nose dive in a in a company uh refex uh post a raid that's come in that's down about
13:1110 percent right now uh remember this one trades in eco-friendly refrigerant gases and and responsible
13:19for coal procurement and so forth sebi has imposed a penalty on the chairman and the it department's
13:24been conducting a survey so that counter they're seeing a five percent knock that's the news on
13:29refex this morning i just want to pull up coffee day and pvr inox let me actually pull up pvr inox
13:35i won't be surprised if this is a durender effect uh but let's just take a look at the counter and um
13:42right now it's definitely seen a nice big up move coming in four percent up on a pvr inox this morning
13:50shell yeah i think uh i don't have the latest as far as the stock is concerned but uh uh it's uh
14:04unfortunately uh not doing well in the markets let me find out what the latest is let me ask amrish
14:11meanwhile if he's watched uh durander trying to amrish have you been to the movies this weekend
14:16uh no no i have not but i plan to see it no doubt because seems it's uh interesting sort of a story
14:24all right and let me also pull up coffee day because um you know is this on the radar of traders if if not
14:31a long-term investment how would you view it because uh we are starting to see um you know some kind
14:39of momentum building up there 10 percent up today upper circuit even last week uh see uh coffee day
14:46clearly i think they've lost the plot and i don't see a major revival yes i mean some short-term sort
14:52of gains uh coming in based rumors and news but uh i don't see i mean this was the largest coffee chain
14:59at one part of time and it was a trendsetter and see as to where it is and uh with with siddharth not
15:06being there i don't know uh whether they can get back very well earlier okay extremely volatile on
15:13a coffee day between last week and the earnings and then this week uh so it's uh as amrish said
15:19possibly better to stay away right now until we kind of see what's happening here we've got hindustan
15:25zinc back in action up about two percent that's on the buy call i was mentioning this morning
15:29660 is the target from a jefferies coming in expecting a uh strong rise on eps as well in fy28
15:36hindustan zinc is at 568 right now amrish what are you making of hindustan zinc and other attractive
15:41opportunities from the metals pack because there's been no stopping the action there no i don't know
15:46whether you should call it hindustan zinc or hindustan silver yes i mean if you see the last because the
15:52last couple of years if you see the bottom line about 40 percent of the bottom line was contributed by
15:57silver and the price is doubling in just a very short time you can just imagine as to how much
16:02it will contribute to the bottom line and yes very much possible 660 very much possible in the stock
16:10all right so that's on hindustan zinc this morning amrish what are the other key names that you're
16:14watching out for if we do look to go long or buy something in this market on dips what would you what
16:19would be attractive to you right now uh i mean i would buy something like a varoon beverages i mean here
16:25is it's it's been subdued for recently long time and uh the good news is that uh i mean they have been
16:31able to maintain uh uh i mean their market share despite the sort of uh uh i mean introduction of
16:39canpa by reliance yes it has affected to a certain extent initially but they've been able to hold the
16:45market share post that and now they're getting into alcobebs starting in africa should be in india very
16:51soon so one beverages in fact i have a target of about 612 uh over the next possibly eight to ten
16:59months and the other one is gland pharma where i have a target of 2400 it's the fastest growing
17:05injectable manufacturing company a global for about 60 countries all right couple of interesting picks
17:12coming in there from amrish we're at 925 shell what else are you tracking
17:17i think indigo let's just pull that one up as well because it's seeing some amount of a bounce back
17:23today not sure how much to read into that at this point even though largely brokerages have been
17:28positive regardless of all that ensued uh last week uh there really hasn't been too much of negative
17:34commentary apart from maybe uh you know an impact in the more immediate quarter shell
17:39uh yeah i think my energies are only concentrated on metals look at vedanta record high and again
17:53the parent company of hindustan zinc remember hindustan zinc is the mothership from which vedanta gets
18:00thousands of crores worth of dividend and of course there is an impending de-merger in vedanta so that is
18:08something to be looked at and of course the underlying gold theme working in muthut finance
18:14fresh record high 3846 for you so it's metals metals and metals all the way uh keep an out of uh
18:22our eye out on hindu copper as well uh this is a stock which is a third of a percent higher 383 again
18:31aiming towards a fresh record high and of course the underlying theme is stronger copper prices in
18:38the metals market so it's silver zinc gold copper metals metals and metals all right amrish is
18:48smiling as well it's clearly the flavor of the moment at least one pocket of a market that we're not
18:52seeing volatility on but you mentioned the trade deal and uh amrish let me just get you know a view
18:58from you in terms of any other sectors or pockets that you're watching out for ahead of the budget because
19:03whether it's going to be via the trade deal or via of course what the government chooses to do in
19:08terms of boosting up certain sectors i think that's going to be critical as well going ahead
19:12yeah i mean see if the trade deal happens then yes i think one can be one should be positive on
19:17textile because that's the one which is affected quite a lot and other than that i would surely be
19:23still be positive on consumption because we have seen consumption increasing post the gst reforms as well as
19:30uh auto and white goods i think these are the three sectors where i would be quite positive on
19:35all right great amrish thank you so much for joining us this morning great start to monday
19:39getting a perspective from you on really how things stand right now business today dominated the
19:45business awards at the enba winning top honors across key categories the channel was recognized
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