- #Sensex, #Nifty trade lower
- #ITI, #LIC in focus
Agam Vakil brings you the bulk and block deal highlights of the day on 'Large Trades'. #NDTVProfitLive
- #ITI, #LIC in focus
Agam Vakil brings you the bulk and block deal highlights of the day on 'Large Trades'. #NDTVProfitLive
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TVTranscript
00:00:00 after hitting a fresh high. Most sectoral indices trade in the green with gains led by
00:00:07 PSU PAC, Media and Oil and Gas. On the other hand, IT, Realty and Pharma under stress.
00:00:13 LIC shares cross listing price of Rs. 867 for the first time, now 7% away from its issue price.
00:00:26 In all eyes on HDFC Bank Q3 results, asset quality is expected to remain stable with steady loan
00:00:32 growth. Jyoti, CNC makes a strong D Street debut, the stock listing at a 12% premium to its IPO
00:00:51 price on NSC.
00:00:57 Hello and welcome. This is Last Trades. I am Agam Vakil and in this show, we will take you through
00:01:14 all the buzzing counters in trade and specifically the ones which have had
00:01:18 well, relatively large trades, bulk or block and perhaps volume buzzers. But for now, let's take
00:01:24 a look at how the markets are faring. And while we did see a lot of strength earlier on in the
00:01:30 session, we're starting to see a little bit of moderation coming through. And at the moment,
00:01:35 we're seeing both the benchmarks, the Nifty and the Sensex come off from days highs. And while we
00:01:41 have seen that sharp dip, but a few minutes ago, we've seen a little bit of recovery coming through
00:01:47 as well. That said, on an absolute basis, we're still largely flattish. We really haven't seen
00:01:53 too much of a change there. It's been a fairly quiet day of trade as well. If you consider the
00:01:58 biggest gainers, at least as far as the Nifty goes, once again, we're keeping an eye on something
00:02:03 like a BPCL, which is advancing by around 3.3%. That's of course the constituents. So you do have
00:02:09 L&T, Titan and BPCL contributing to the up move. But on the other hand, what's weighing down on
00:02:14 the indices is profit taking in Reliance Industries, Infosys, TCS and of course, HCL Technologies.
00:02:21 Remember, all those four counters were the strongest over the past two to three days.
00:02:26 And now we're seeing just a tad bit of profit taking, but all eyes will remain on HTFC Bank
00:02:31 and that'll be the key determined as to where the indices end, should of course, the earnings come
00:02:37 through in market hours. We are awaiting that big earnings. For now, it's trading very, very quiet,
00:02:42 well ahead of its earnings. But besides that, even in terms of broader markets,
00:02:47 at least the indices aren't doing too much. So we have seen that fall in the latter half of the
00:02:54 session in tandem with the benchmarks currently trending down by around half a percent, but not
00:03:00 too much change otherwise. And in terms of some of the key movers as far as the mid-cap space is
00:03:08 concerned, again, we are seeing losses in Vodafone Idea, which is down around 4.9%. We now have
00:03:16 Trident, which is under pressure over the past couple of sessions now. Trident has now seen a
00:03:21 bout of profit taking and a substantial one as well, but it did have a very, very strong week
00:03:26 last week. And Oracle Financial Services also looking at a decline of around 3.5%, along with
00:03:32 Poonawalla FinCorp, that's down around 3.5%. Now, that's as far as your losers are concerned.
00:03:37 We talk about IRFC, which continues to move from strength to strength and IRFC, while it is off
00:03:45 days highs, it's still advancing by around 8.5%. And a little bit of reversal when it comes to Z
00:03:50 Entertainment, keep an eye on that one as well, up 3.5%. And besides that, we continue to see gains
00:03:58 in something like Polycab, comfortably about a mark of Rs.4,000 a share, and it is now, well,
00:04:05 trending in fact, well over Rs.4,300. So, we'll continue to keep an eye on a whole host of these
00:04:11 counters. But that said, we have earnings from Kesaram Industries. And we are, all right, so
00:04:21 I guess we're awaiting the management of Kesaram Industries, we'll be in conversation with them in
00:04:25 just some time. Let's get in, in the meanwhile, and talk about the two stocks that we want to
00:04:31 address. And the first one is, of course, AstroDM, which is on our radar at the moment. And we have
00:04:37 Varsha who's joining us to give us an update on this one. Varsha. So, good afternoon, Agam. So,
00:04:43 if you see AstroDM share price surged almost 13% to hit a lifetime high. Now, companies said,
00:04:50 now this is on the back of when the company said it will be distributing a majority of proceeds of
00:04:54 its stake in Gulf business. Now, the board will consider the distribution of 70% to 80% of the
00:05:00 upfront consideration of US$903 million as a dividend to its shareholder, which will be in
00:05:06 the range of 110 to 120 per share. Now, this is on the back, the company does not require the
00:05:12 proceeds for the growth plans for their India business. Also, if you see just a little background
00:05:18 on this, in 2023, Dubai-based AstroDM Healthcare has approved the sale of business in the GCC
00:05:25 region to Alpha GCC holdings for US$1 billion. Now, out of this, US$930 million will be received
00:05:33 at the closing of the transaction and the rest will depend on the fulfillment of the certain
00:05:37 conditions. Now, if you see the analyst recommendation, almost seven analysts are
00:05:41 tracking this company and all of them have by recommendation with upside, with return potential
00:05:46 of negative 2.2%. While if you see the stock performance in last one year, company has given
00:05:51 almost 92% return to its shareholders, while six-month performance has been almost 38%.
00:05:56 Absolutely. Varsha, thank you so much for getting us that update on AstroDM. Do keep an eye on that
00:06:01 one. And from there on, we move on to another very, very interesting move in ITI. This one is,
00:06:08 of course, a government agency and we're seeing a little bit of a turn around the corner when it
00:06:12 comes to the fundamentals for this company, largely on account of several projects it has had
00:06:17 going forward. But I'm going to say no more and get in my colleague Mahima to tell us a
00:06:21 little more about this one. Mahima, what do you have for us? Right, Agam. So, as you rightly
00:06:25 mentioned, the company has good orders in pipeline. Well, but before moving to that,
00:06:29 I'll talk about the stock performance a bit. The stock, as you rightly mentioned, has touched a
00:06:35 life high at 374.8% today and it is touching an intraday high of 18.9%. If we talk about the stock
00:06:41 overall in the past six months, it's been a multi-bagger where it has gained over 243%. So,
00:06:47 the stock is soaring high in both in terms of percentage and volumes. It's been trading 13 times
00:06:53 its 20-day average volume today. And this is on the back of six large trades that have taken place
00:06:59 of approximately three crores of shares that exchanged hands today. The highest price at which
00:07:04 the shares were traded was 373.7 and average prices at which the shares were traded is 357.26.
00:07:11 Now, talking about the recent updates that the company has been gaining orders from,
00:07:18 they have recently introduced their property laptops and micro PCs under the name Smash.
00:07:24 Now, these are good laptops in terms of saving electricity cost and they're very compact and
00:07:30 easy to use. They've also introduced a very interesting thing that the laptops run through
00:07:36 solar energy and they've said that they've received two tenders from Kite Kerala where
00:07:43 they've received an order of over 9,000 laptops for these solar laptops. And also,
00:07:50 they have more than 12,000 Smash PCs that have been already deployed. So, considering the stock
00:07:57 up move, the order book is also strong and the company has been doing well.
00:08:00 Indeed, indeed. A whole host of very, very interesting orders coming in for this particular
00:08:05 PSU. So, continue to keep an eye on that one. We have certainly seen some substantial improvement
00:08:12 in terms of its prospects. Mahima, thank you so much for getting us those details.
00:08:16 But we get on to the Kesaram Industries. We've had earnings for the quarter gone by and we're
00:08:23 in conversation with the CEO, Mr. P. Radhakrishnan. Mr. Radhakrishnan, good afternoon. Thank you so
00:08:28 much for joining in. Can you take us through what the quarter has gone by? Because from what we
00:08:33 understand that the revenues have largely remained flattish consequently, that's had an impact in its
00:08:38 EPS as well. What is your assessment of the quarter? In the quarter, our margins have improved.
00:08:48 Slightly on the volumes, sequentially, they were down marginally. But it has been compensated by
00:08:54 the margins, which got improved from Q2 to Q3. Overall, we should be closer to 7.7 to 7.75
00:09:07 million of sale for this financial year. That's how I see this financial year.
00:09:14 Okay. So can you give us an idea about what kind of an offtake are you seeing? What kind
00:09:20 of conversations are you having with those who you are supplying to in terms of demand as we
00:09:26 move into the final quarter of this financial year, as well as FY25? Looking ahead.
00:09:31 Traditionally, post Pongal Sankranti, the volumes pick up. We see that happening.
00:09:41 I see this quarter, as well as the past quarter of the next financial year,
00:09:49 the next six months should be good for the industry on the volume front.
00:09:53 All right. So can you give us an idea about the kind of volumes uptake we can expect going
00:10:00 forward? And some kind of an idea in terms of growth rates for the upcoming year?
00:10:10 So it's tough to answer because we need to wait for the outcome of the budget
00:10:17 that will have a bearing. Of course, infrastructure is growing. So we expect at least, in my opinion,
00:10:25 8 to 10 percent, the growth should continue for the industry in the coming financial year.
00:10:30 All right. As far as we are concerned,
00:10:34 we expect to do, as I already indicated, 7.7 million for the whole year. That's that.
00:10:40 Based on the kind of inputs and the way the material costs are spanning out,
00:10:46 what kind of trajectory are you expecting when it comes to your operating margins?
00:10:52 So it is stable. It's not that the margins are expanding, but the prices have to go up.
00:11:01 I don't see costs coming off from where it is now. So if the margins have to expand,
00:11:07 the prices have to go up. Okay. And a final question that you did briefly allude to,
00:11:12 the budget, of course, is going to be a voter account. So we won't be seeing any hard-hitting
00:11:17 announcements. That said, is there anything that you expect to hear from the finance minister?
00:11:27 We feel that infrastructure should grow. So the infrastructure spins will continue to happen.
00:11:34 That is the expectation, at least from my side. Okay. All right, Mr. Radhakrishnan, we leave it
00:11:40 there. Thank you so much for joining us and taking us through the quarter's earnings as
00:11:43 well as the outlook. That's the management of Kesaram Industries, of course. Largely, in terms
00:11:50 of what we have seen is a flattish quarter, and we haven't seen too much of a reaction on the stock
00:11:55 either. It's been a fairly quiet day of trade today. And we continue to keep an eye on that
00:12:01 one. But on the note, we slip into a short break. But on the other side,
00:12:04 we talk a lot more in terms of stocks. Stay tuned to NDTV Profit.
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00:15:06 Welcome back. Well, we now have Life Insurance Corporation of India and Focus as the share
00:15:11 price crosses its listing price of Rs. 867 for the first time, and now 7% away from its issue price.
00:15:19 And for this, we have Harsh Setha, who's joining us to give us more details on this one. Harsh,
00:15:26 we have been talking about this one. We have been anticipating this move for a few weeks now. What
00:15:31 can you tell us on this one? Well, yes, it's clearly one of the stocks which was unloved and
00:15:38 it was a sector which was unloved on the back of all the budget announcements that came in last
00:15:42 year. The stock was trading at roughly 0.5 times embedded value. Embedded value is typically the
00:15:50 future profitability discounted. And therefore, what you were seeing was that the stock was beaten.
00:15:57 There's been a large re-rating that's played out post that phase where the stock was beaten.
00:16:03 And we've seen a good rally coming in LIC on the back of that. Of course, what is really good to
00:16:12 see or rather what the investors or the IPO investors will really cheer, this IPO happened
00:16:18 at Rs. 949 a piece. Rs. 904 was the IPO price for retail investors. We're inching super close to
00:16:28 that retail investor value of Rs. 904. And that will be one piece which will be cheered. Mind you,
00:16:35 this issue was subscribed three times. Therefore, there was plenty of interest there in LIC,
00:16:42 especially at the time of IPO. But post that, we saw a tepid listing and thereafter the stock has
00:16:49 just been in slide mode. So now we've seen a bit of a recovery. We are roughly now about 6% away
00:16:55 from the 949 number and it's a big positive coming through. All right, Harsh. Well, thank you so much
00:17:03 for getting us that quick update on LIC and how things span out and whether you like it or not.
00:17:11 In fact, it seems like LIC is having a much better year as compared to some of its private players,
00:17:16 private sector players like HDFC Life and to a certain extent ICICI Prudential. But of course,
00:17:22 we continue to keep an eye on a whole host of these factors that Harsh has spoken about. And
00:17:26 from there on, we take a look at what we can expect from the big bank, HDFC Bank, which will
00:17:33 announce its December quarter earnings today. And we have Vishwanath Nair who's joining us today.
00:17:39 And we have Vishwanath Nair who's joining us. Vishy.
00:17:42 HDFC Bank is set to announce its third quarter results on Tuesday, where the bank is expected
00:17:50 to report a marginal dip or a flat net profit on a quarter on quarter basis. What analysts are
00:17:57 pointing out is that there's likely to be a slightly higher provision requirement during
00:18:01 the third quarter, primarily because the Reserve Bank of India has raised the risk weights on
00:18:05 certain unsecured loans, which makes it slightly more expensive for the banks to lend out this kind
00:18:11 of money. Apart from that, the net interest income for the bank is expected to rise by about 8%
00:18:16 odd percent. That is what the analysts are estimating at this stage. What we do understand
00:18:21 is that deposit growth is likely to be slightly slower than what was previously anticipated,
00:18:26 while the loan growth is likely to remain stable. Now, of course, when the bank released
00:18:31 its provisional figures, what the bank had pointed out was that total advances would rise about 5%
00:18:37 on a quarter on quarter basis to a little over 24.6 lakh crore, close to 24.7 lakh crore, while
00:18:43 on the total deposit front, you would see deposits rise about 1.9% quarter on quarter, a little less
00:18:50 than the 2% mark, with deposits lower than advances at 22.14 lakh crore. Now, all of this points to a
00:18:58 situation because a bunch of loans were transferred into the HDFC Bank portfolio because of the merger
00:19:03 with HDFC Limited. However, on the deposit front, the bank is still catching up and therefore,
00:19:08 the credit deposit ratio for the bank is on the higher side above the 100% mark. However,
00:19:14 the bank is expected to increase its branch network over the coming year and thereby improve
00:19:19 the deposit numbers in the coming quarters. What we also understand is that the NIMP
00:19:24 position for the bank is likely to have bottomed out in the second quarter and from the third
00:19:28 quarter onwards, we are likely to see the net interest margin improve quarter on quarter at
00:19:33 least with the CASA ratio also improving for HDFC Bank. And it's day two at Davos and NDTV Network
00:19:41 continues to get you the top corporate and political voices from the World Economic Forum.
00:19:46 My colleague Neeraj Shah gets us in with a sneak peek into all the action that's taking place at
00:19:53 the WEF. Well, day two at Davos and after a lot of India optimism on day one, it's time to do some
00:20:04 checks around what's happening with the Indian story itself. So, we talked to a leading textile
00:20:09 exporter today in Wellspun Industries, Deepali Goenka to get us a sense of what are the disruptions
00:20:15 that are being caused by the Red Sea issues and with the demand lowering in Europe and US,
00:20:23 could it become a problem for textile exporters? Of course, also a word on the domestic side.
00:20:27 A couple of very important political conversations, Hardeep Puri speaks to our colleague Vishnu Shom
00:20:33 and the Chief Minister of Maharashtra, Eknath Shinde speaks to me later in the evening and we'll
00:20:39 try and get a perspective from both about what's happening within the state of Maharashtra and of
00:20:46 course within the oil and gas space as well and the policies that he's unveiled in the recent past
00:20:50 and what it could mean, particularly in light of the volatile crude prices. We speak to Viz
00:20:55 Raghavan of JP Morgan, he heads investment banking globally and I think it'll be important to
00:21:00 understand or get a perspective, in the India region in particular, it'll be important to get
00:21:04 a perspective from him about how is he seeing deal making, especially in light of the fact
00:21:09 that 2023 was a tale of two halves. It started off really well, the second half wasn't probably
00:21:15 as strong and to add colour to the markets and the investment banking and the banking piece,
00:21:20 the top think tank of Jefferies with Ashish Agarwal, Country Head of India, as well as Mahesh
00:21:25 Nandurkar, Head of Research at Jefferies India, join us to talk about what is their view with
00:21:31 regards to what's happening in Davos and investments within the country as well.
00:21:35 Last but not the least, amongst the biggest voices talking to us today is Peter Wozzer,
00:21:41 the Global Chairman of ABB. It'll be lovely to understand from him how he sees demand for
00:21:47 industrials in a world which growth is tapering, but more particularly in India where ABB is having
00:21:54 arguably the strongest order book that it has ever had. So, stay tuned to NDTV Profit for all
00:21:59 of these conversations. Right, absolutely. A long and a very interesting list of world market
00:22:06 participants along with industrialists who is going to be talking to us here on NDTV Profit and
00:22:11 of course at 3pm we have a conversation with Deepali Goenka as Neeraj was pointing out. So,
00:22:17 certainly stay tuned to NDTV Profit for a whole host of conversations, very interesting ones,
00:22:22 very important ones as far as Davos 2024 goes. But from there we move on. In India, we'll get
00:22:30 capital not because of China plus one, but because India anyways is attractive, says Rishi Kapoor,
00:22:37 Co-CEO of Invescorp. In a conversation with my colleague Neeraj Shah at Davos,
00:22:42 he explains why India can afford to command and demand higher capital flows.
00:22:47 You know, we are a three and a half trillion dollar economy, right? Our market cap is actually
00:22:54 slightly higher than 100% of GDP, right? And we are at that inflection point in terms of GDP per
00:23:00 capita where the level of affluence ought to grow. On an absolute basis, therefore, India should get
00:23:08 its fair share and more off the capital flows, right? It is not about reallocating, it is about
00:23:16 an absolute level of capital flows. Because it demands it, there is a need, and it commands it
00:23:23 because the fundamentals are in place, right? You have a young demographic, you have a digitally
00:23:29 native population, you have growing levels of affluence, you have a growing middle class,
00:23:34 you have two major secular trends shaping the global economy, both of which are supportive
00:23:40 tailwinds for India, the energy transition and the embrace of digitalization and artificial
00:23:46 intelligence. And it's not just the construction of a new temple taking place in Ayodhya,
00:23:55 it's well, the making of a new city. We are talking about 35,000 crore worth of investments
00:24:02 already and over 2 lakh tourists every day. My colleague Pallavi Nihartha brings you this
00:24:07 ground report straight from Ground Zero. Take a look. Now, when you visit the Lata Mangeshkar
00:24:14 Chowk here in Ayodhya, you're likely to be greeted by devotional songs in her melodious voice.
00:24:21 But until that happens, what you're most likely to hear is the sound of construction. It's not
00:24:27 just the consecration of a new temple that's taking place, it's the construction of a new city and
00:24:34 in record time. Now, it's a juggernaut of development, infrastructure and tourism projects.
00:24:41 Private and public investments are being pegged at over 35,000 crore rupees, largely being led by
00:24:50 public investments at this juncture. In public infrastructure, we've seen the development of
00:24:56 the international airport, the railway station, bus terminals, flyovers, footpaths, sewage systems,
00:25:04 parking facilities, dormitories, food courts, resting places and a lot more. Private investments
00:25:12 include those in food, hospitality and housing, among others. Now, what we're seeing is a rise
00:25:19 in per capita income for people in the area and also a rise in employment opportunities.
00:25:27 Most of what's being done is also keeping in mind environmental sustainability. In fact,
00:25:32 the municipal corporation has incorporated a Vedic sustainability index for the city.
00:25:38 The mandate is clear, to make Ayodhya a global spiritual centre. We're already seeing 50 to
00:25:46 60,000 tourists coming in and once the consecration of the temple on January 22nd takes place,
00:25:53 this number is likely to go up to 2 lakh tourists a day for the next few months.
00:25:59 Well, it's not just a change in faith that the people here appear to be witnessing,
00:26:05 it's more importantly a change in fortunes. And that is all that we have in this edition
00:26:11 of Last Trades, but we slip into a break. On the other side, we get you India markets open.
00:26:16 Stay tuned in.
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00:30:41 Very good afternoon. You're watching India Market Close. I'm Tamannah Inamdar. It's been a tepid day of trade at best with weakness and profit booking as an overhang on the markets. The Nifty managing to stay above the 22,000 mark quite bravely, I would say. That level has been respected through much of the market.
00:30:59 The Sensex also seeing a bit of pressure. Let's pull up broader markets and see what's happening there. Remember, the big anticipation is for the number of the day, I would say. HDFC back numbers expected any minute. And you must stay with us for complete and comprehensive coverage of that. Having said that, the broader markets also seeing quite a bit of strain through the day. Recovery from the lowest points of the day, but yet you are seeing pain in the broader markets as well. Even more so, as we move into the next quarter.
00:31:27 Let's pull up the advance declines and see what's happening there. Remember, Fint Nifty expiry today. So that's also weighing through. You've had a bout of profit booking and that's been the overall theme. Whether you have the IT stocks, which led the raise yesterday and now are leading the fall. Look at that. Look at that momentum through the day. And over here, you are seeing a very volatile kind of a day of trade. Range bound and volatile. And you are seeing a lot of volatility.
00:31:55 So the next big cues perhaps being awaited. Let's pull up the heat map and look at what the performance indicators have been. If it's a good day for one sector, one stock, it's oil and gas and metals. That definitely is the big up move over there. Windfall tax has been fared and that has helped push a BPCL impressively up 3% in trade today.
00:32:23 ONGC also not doing too badly at all. Maruti put out a note today that they're going to increase their prices, their retail prices by about half a percent in this month. That stock in the green. But the story is largely here. And like I said, it's a story of profit booking, whether it's an HCL tech, a Wipro, all of them seeing that pain.
00:32:44 Infosys, TCS all between 1 to 2% down in trade and LTI, Mindtree as well ahead of numbers seeing that pain coming in. DVE's lab. So all of I think the best performers of the last few sessions have seen profit booking coming in. I'm going to quickly just pull up and see what's happening in Europe before I hand it over to Harsh for those specific stories that have dominated through the day.
00:33:10 But Europe seems to have had a weak opening as well and a fairly weak opening at that. So Europe down in the red. We'll watch those indicators. But Harsh, in terms of sectors, the story belonged to all of the companies that have put out numbers. It's all about the numbers, is it?
00:33:27 Absolutely. So let me first off take it to the stocks which were buzzing on the back of numbers. You have the likes of Angel One, which has been in the negative right from the start of trade, despite it starting out to be quite a good day. It's now down 13 and a half percent. Let me also go to something like Jio Financial. Again, that one on the back of earnings, you know, doing poorly in trade as we speak.
00:33:53 We're also seeing the likes of the banking pack, Federal Bank, Bank of Maharashtra. Focus comes back on HDFC Bank, but quickly on Federal Bank down 2.7 percent. That NIM number not seeing much of an improvement. Also Bank of Maharashtra down around a percent after its numbers. Some amount of profit booking also to some extent being seen there.
00:34:13 Also, with regard to the likes of an HDFC Bank, let's flag that off because that one earnings expected any time now. But that's where we are, where the earnings basket is concerned. Let me also flag off CE Infosystems. Actually, that stock is also in the negative on the back of earnings and it in fact slipped into the red post the earnings. CE Infosystems, if we can have that stock.
00:34:37 Quickly also moving on to some of the other buzzers in terms of trade, you have the likes of a PNC Infra, positive buzz on that stock doing very well on a weekday of trade up 4 percent after divestiture of some of its assets. Nalco also, it's JV to start exploration with regard to lithium. That one up as well. Sarda Contractwin, Sarda Energy, that one is also up in trade roughly 2 percent or thereabouts.
00:35:03 You're seeing Jyothi CNC, what a stellar listing on an otherwise weak day of trade. So 32 percent high on the back of that. Some notes as well. You have Paytm, which is buzzing on the back of a brokerage note, initiating coverage from UBS. Stock is up 4 percent. Target price, 900 rupees a share. So positive on Paytm on the back of that. And some stocks which have been in focus in the last couple of days. Let's pull up something like a Polycab.
00:35:29 Stock is doing again very well in trade on a weekday of trade. And I also want to flag off something like an IRFC and an IREDA. Let's first flag off IRFC. Look at that. Eight percent gains on a day when we've seen some amount of weakness through the day. And also, if we can have IREDA, not sure what that stock has done, but that one is down after quite a strong day yesterday. So those are all the stocks which are in focus today. Tamanna.
00:35:55 What a list over there, especially the momentum that we've seen in railway stocks now reversing. I would just add to Harsh's list and talk about Realty, which has been seeing profit booking through the day. And again, India Bulls Real Estate, the deepest cut over there. I Bulls down about 4 percent. Prestige, Oberoi, DLF, Macrotech, all of them seeing quite an extent of a loss.
00:36:23 Seeing quite an extent of a profit booking in today's trade. So, of course, we'll wait and see what happens with HDFC and whether that lifts the mood. But right now, I would say a cautious market. Definitely, nifty down about half a percent now. Let's see if we hold up above the 22,000 mark by end of trade.
00:36:44 Hemen Kapadia joining us now, he is Senior VP, Institutional Equity at KR Choksi Stocks and Securities. Hemen, great to have you back on the show. And it's a bit of a wobbly day, isn't it? The question is whether 22,000 holds.
00:37:00 Absolutely. It's wobbly on the hourly charts. Nifty and the Bank Nifty both have made small rounding tops. Not too much. I don't think you attach too much of importance to hourly chart. But nevertheless, that is in way explaining technically what you put forward very rightly.
00:37:22 So, let's look at the wobbly market. There was a big upward gap yesterday. There was another gap before that. So, some of these gaps, Tamannaah, need to get covered up. Need is visual thinking. If they don't, it's better. They provide support. But some of these gaps are open.
00:37:42 So, there is a possibility that an index like Nifty will make an attempt to cover up this gap. We made an attempt today, wasn't successful. So, chances are that this wobbly situation might continue for a few days more. But stock specific, I think there are a lot of things happening.
00:38:00 So, the market breadth is a little bit under pressure. But overall, we've had a perpendicular rise. So, if we do have some cross currents, I think it's an opportunity.
00:38:14 Right. Himan, just very quickly, a view on the Bank Nifty. You have an expiry today, a Fint Nifty expiry. Just views on the Bank Nifty. And would you completely stay off HDFC before the numbers are out?
00:38:29 I would stay off HDFC. I think the range between 48,000 and 48,300, this is for on the entire chart, meant for a day or two. So, frankly speaking, not trending wise. As far as HDFC Bank is concerned, very tempting.
00:38:48 But if there is a disappointment or a decline, I think it's an opportunity to buy. So, I'd wait this to be better.
00:39:08 So, I would stay off HDFC Bank and on a decline, HDFC Bank also. And something like an MGL. You know, there are many stocks, Harsh, which have given breakouts or are on the cusp of breaking out and they are giving throwbacks.
00:39:21 So, now Biocon is poised, interestingly, the MGL that I mentioned to you, Harsh. Now, the thing is MGL has been consolidating over here for a long time and we are on the cusp of breaking out of what is a four and a half year consolidation phase.
00:39:37 So, I'm not saying it's impervious to corrections, but yeah, on a decline after the breakout, I think that makes it quite interesting.
00:39:45 Just interesting. I'm just jumping in because you spoke about SBI and Citi has a note on SBI, which is not very exciting, to be honest.
00:39:56 They say that they've rated a sell on SBI this afternoon because of the high ROAs that they see. But yeah, just coming in there, that target price that they see for SBI is at Rs. 600.
00:40:09 Himeen, very quickly on Paytm, if you have a view at all, UBS had a note out today and they have quite a steep target price over there. Do you like Paytm on the charts?
00:40:21 I think currently we are in the throes of a comeback, a pullback, not a rally, but a recovery. Currently, setup is positive. So, I'd be more positive than negative. Buying fresh at this juncture, no.
00:40:35 Understood. Take your point, Himeen. Citi, very interesting note, Tamanna, on SBI. What they are continuing to suggest is that ROA levers going forward look difficult.
00:40:51 And also, mind you, this time around SBI will have to provide for wage provisioning, which they haven't done. Wages were revised from upwards to 17%. They've provided for just about 14%.
00:41:05 So, that 3% delta starting 2023 will mean that, or rather 22, will mean that there is a substantial amount of provisioning which will come through this quarter.
00:41:17 And therefore, you will see a tough set of numbers coming in from LIC and that is what they seem to be alluding to.
00:41:24 From SBI.
00:41:25 From SBI, sorry, that's correct. Sorry, apologies. And that's what I think they seem to be alluding to, that 1% ROA may not sustain, but of course, you have to wait and watch those numbers.
00:41:36 So, if wage provisioning is a concern, one assumes the problem will compound because their wage rates are likely to go up as well?
00:41:44 That's correct. But it's always in the first quarter where the hit is the most because you have provided for the last three to four quarters, which you will have to revise.
00:41:56 So, of course, that provisioning is already done, but that is for the past quarters. You'll have to actually, on an actual basis, provide for the total amount in the first quarter.
00:42:07 So, they've provided for 14, they actually had to provide for 17. So, the difference of 3% is what they'll have to recognize in this quarter, which is what I think they're alluding to.
00:42:18 But yeah, so that's an interesting piece which is playing out. But let me quickly move on.
00:42:25 And let's have Varsha who's standing by. She's going to talk to us about all the buzzing stocks in trade today.
00:42:34 Varsha, what are the stocks on your list?
00:42:37 So, hi, everybody. So, let's start with Indigo Paints, where shares hit intraday low of 2% with volume of 12.25X.
00:42:45 Now, this is on the basis of one large trade at average price of almost Rs.1,485.
00:42:50 Then we have PNB Housing Finance, which hit intraday high of almost 8%. Now, volumes were over 9X.
00:42:57 Now, this is on the back of Motilal Oswal declaring the company as its top pick in the NBFC and Housing Finance Ambit.
00:43:04 And the brokerage firm has given our stock a buy rating with a target price of almost Rs.1,025 per share.
00:43:10 Then we have Aster DM, where it nearly surged 13%, hitting its lifetime high. Now, volumes were over 8X, its 30-day average.
00:43:19 Then we have Back where the board will consider the distribution of 70% to 80% of the upfront consideration of US$903 million as dividend to its shareholder, which will be in the range of 110 to 120 per share.
00:43:31 Then we have ITI Limited, which hit intraday high of almost 19%, is buzzing at a volume of over 8X.
00:43:38 Now, six large trades with three crore shares being traded with an average price of Rs.357.
00:43:44 Now, it introduced a proprietary laptop and micro PCs under the name Smash and recently won two tenders from Kerala for 9000 Solar Solutions laptops.
00:43:53 Then we have Capre Global where they are now planning to have an insurance platform as the company received a composite corporate agency license from IRDAI.
00:44:04 Now, with this tech-centric focus, the company aims to leverage its robust client base to cross-sell insurance products.
00:44:12 Then lastly, we have PNC InfraTech where it hit intraday high of over 10%.
00:44:17 Now, here the company with its arm executed definitive agreement with Highway Infrastructure Trust to divest 12 of the company's road assets and one toll concession.
00:44:26 The enterprise value of the transaction is almost 9000 crores.
00:44:30 Thank you for that, Varsha. If I were to create a new category of defying all odds or try and make sense of this, of stocks that are running up massively,
00:44:45 on that list today would be Polycab, would be Zee Entertainment and would be IRFC.
00:44:51 In fact, let me get Sudip Bandopadhyay into the conversation, his group chairman in IndyTrade and ask him about some of these logic defying moves that we're seeing in the market today.
00:45:02 I'll tell you why. Zee Entertainment, I mean you're four days away from a deadline on whether this merger with Sony will happen or not.
00:45:09 No word at all. No clear indication either way. But you have a sharp move on that stock for no real rhyme or reason.
00:45:18 From what I'm hearing, we'll have clarity maybe by the 21st. Polycab has been hit by a spate of news reports and actual income tax statements saying that they're raiding wire companies and they're the only ones in the news on this.
00:45:34 The company comes and says, well, no, not really. There's one brokerage report, Jefferies, that says we don't see a big problem and that stock has been on a roll.
00:45:43 IRFC has no negative news, but one has to understand whether it makes sense to be about eight and a half percent up the kind of valuations we're seeing.
00:45:52 Sudip, I'm going to come to you. Let's start with IRFC. What do you think is going on there?
00:45:57 Well, I think there is no doubt about the fact that they will have a great business for the next three, five years.
00:46:05 The kind of work which is happening on the railway modernization, new coaches, new electrification, railway platform modernization.
00:46:14 So, there's no doubt about the volume of business which will go through IRFC. The only question is the valuation.
00:46:20 And I think that has reached a level where probably it doesn't justify based on whatever known facts are there.
00:46:28 So, I would not really jump into IRFC at these levels. I will wait for a time wise correction at least before recommending or getting into IRFC.
00:46:39 Right. Sudip, we didn't get your views with regard to markets as a whole. Let me first get that piece out of the way.
00:46:48 How are you viewing markets? It's been a wobbly day as Tamanna termed it of trade today. How are you viewing it?
00:46:57 Well, definitely it's a wobbly day. It's up and down, it's continuing. And I would say that we are heading into an event which is entering budget.
00:47:09 So, obviously, there is some nervousness. We also have a Fed meet towards the end of this month that also will create some volatility.
00:47:18 And we are in the midst of an earning season where there are obviously some headwinds on some of the sectors and companies.
00:47:25 So, a bit of nervousness at such elevated level is par for the course. So, I won't read too much and get too worried about this kind of, you know,
00:47:34 a little bit of topsy-turvy movement, particularly when the index was at an all-time high.
00:47:40 So, a bit of caution, a bit of correction, profit taking, whatever name you want to call it by, I think is par for the course.
00:47:47 Right. And Sudeep, very quickly, your picks in this market.
00:47:54 Well, Reliance has been my favourite for quite some time. And I think last time when we interacted, I did mention.
00:48:00 I continue to like Reliance. I think still quite a long way to go. And if they post the quarterly result, there's a bit of a dip.
00:48:08 It'll be again a bigger opportunity to buy. The other large cap stock which I still like and would recommend is Larsen & Toubro.
00:48:15 I think it's a fantastic story and it's unfolding. It's not that it's kind of fully valued.
00:48:21 I think there is still a significant valuation upside in Larsen as well.
00:48:26 Understood. Thanks so much for some of those views. But, you know, it's time for a quick breather.
00:48:35 Stick around, of course, we'll dive deeper into what's happening in today's market.
00:48:39 It's an interesting day of trade. Stay tuned to NDTV Profit. We'll join you after a very short break.
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00:51:17 All right. It's a slow day of trade and slightly negative outlook of trade, more of a wait and watch.
00:51:23 But definitely, markets off their lows right now. The nifty IT is still showing a lot of pain.
00:51:31 I mean, the kind of rebound we've seen in IT stocks is quite a story considering the moves we saw just after the results had come in.
00:51:41 But some of the other mid-cap names which are having a bad day at the job, Vodafone, definitely one of them, 4.5% down.
00:51:49 Look at the entire PharmaPak, Oberoi Reality, Prestige, Poonawalla Finance, Oracle Finance, a lot of the NBFCs and smaller financials not doing too well.
00:52:01 Federal Bank had its numbers out today and that stock is about 2.5% down.
00:52:07 In fact, Harsh, that's something you tracked quite closely. Just take us through why Federal Bank seemed to be a miss for the street.
00:52:15 Well, it seems like the margin recovery which was expected to play out in this quarter as well as maybe a bit even in the last quarter doesn't seem to be picking up.
00:52:26 So, margins is where I think the street is focusing on. Also, the slippage number has come in slightly elevated and those two numbers are a bit of a bother for the street.
00:52:35 And justifiably so, because it's a tough deposit-taking environment and deposits are coming in at a very high cost,
00:52:44 which is definitely beating down both margins as well as therefore impacting profitability.
00:52:50 And that's what we're seeing. Even in terms of your gross NPAs, the ratio has gone up. It's in stop a little bit.
00:52:58 Despite very strong growth, your NPA ratios inching up means your gross NPAs absolute values have gone up as well.
00:53:06 So, some of those factors which seem to be playing out very sharply and that's what markets seem to be viewing.
00:53:15 Maybe they're not so happy about some of these things.
00:53:19 And remember, your HDFC weighted eagerly in the newsroom here and in the studios at NDTV Profit.
00:53:29 So, that of course, one that we're watching out for and SBI is the other one.
00:53:34 So, Deep, can I come to you on SBI? Before we went into the break, we were talking about the city note on SBI, which doesn't seem to be too excited about the stock.
00:53:43 In fact, they've put out a sell call, 600 to be target and their concern seems to be the ROAs.
00:53:51 Harsh was explaining that the kind of provisioning they've done for wages will spill over. You have any take on SBI?
00:54:00 Well, I'm positive. I think the point made in the report as well as by Harsh about the extra provisioning,
00:54:08 which they will be requiring on account of the shortfall, I think is valid.
00:54:13 But that doesn't take away from the fact that, you know, A, this is the largest bank.
00:54:17 We are in a phase where there is a significant credit growth happening and it's expected to continue.
00:54:23 Three, I think, you know, the asset quality all around has improved significantly.
00:54:28 Four, I think recovery from the written off assets has been happening and I think that process will get accelerated going forward.
00:54:37 Five, I think, you know, most of the subsidiaries of SBI have been performing admirably well.
00:54:44 And that gives SBI an opportunity to, you know, maybe encash a part of their holding and buffer, create additional capital buffer.
00:54:54 So, you know, if I'm looking at it from a long term, not this quarter, not the maybe next quarter also,
00:55:00 but if I have a one to five year kind of a time horizon, there's absolutely no problem in state bank at current levels.
00:55:07 Right. Also, Siddhi, can I have also your views with regard to any other PSU banks outside of SBI?
00:55:14 SBI, even in terms of price to book, looks fairly attractive at this point.
00:55:19 But outside of that, would you venture into something like a Bank of Baroda, Punjab National Bank at this point?
00:55:27 Well, Punjab National Bank, if you're an aggressive investor, I will definitely recommend Punjab National Bank.
00:55:32 I think the same logic, which you just said that, you know, price to book does look very attractive.
00:55:37 And, you know, there has been a lot of change.
00:55:39 We continue to think of these banks with the same prism of five years back when they were inefficient
00:55:46 and there were a lot of lacunae in their systems and processes.
00:55:49 But we believe that things have improved quite a bit.
00:55:52 And these banks are becoming stronger and stronger in terms of their systems and processes
00:55:57 and the possibility of a major disaster or a mishap like what had happened a few years back is remote.
00:56:04 Under the circumstances, I think considering the network, considering the balance sheet, I think they deserve a better valuation.
00:56:12 So that's on the fundamental side. Heman, you know, any views from a technical standpoint?
00:56:18 How are these some of these PSU Bank basket of stocks looking like, especially the frontline ones on charts?
00:56:28 I would go with the state bank.
00:56:33 You mentioned about that Citi report, but I would still maintain a bullish view on state bank.
00:56:40 Having said that, you have even stocks like Ken Bank, you have Bank of Baroda.
00:56:46 All of them have done phenomenally well.
00:56:49 OK, they could be in small breathers of sorts and taking a break or so,
00:56:56 but the setup remains unequivocally bullish.
00:56:59 And coming back, if I can digress just a bit, Harsh, if I look at the Bank Nifty, the Nifty PSU index,
00:57:09 the Nifty private bank index, all of them are pointing towards the same thing.
00:57:16 Six weeks of a consolidation. Maybe the results disappoint.
00:57:21 There could be a small dip. But if I were to take a two month view, the Bank Nifty is crossing 50,000.
00:57:27 And all of the three stocks I mentioned at the beginning of the show are going to do well.
00:57:30 And it also means that the PSU banks won't lag behind, Harsh.
00:57:35 Right. And Himen, we're in the last half hour of trade. Very, very quickly, 20 seconds maybe your picks.
00:57:43 Buy, sell, entry, 1.17, stop loss 10, 110, target 131, buy, sell, sell, long bar 1380, 1355, target 1430. One week.
00:57:54 Absolutely. That's what I like about Himen. He's to the point precise and wastes no time.
00:58:00 Stay on with us. More with Himen and Sudeep after this very short break. Don't go anywhere.
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01:00:41 Welcome back. You're watching India Market Close here on NDTV Profit.
01:00:44 And we have with you Wellspun Living, the Bali Goenka joining, of course, Neeraj Shah from Davos.
01:00:51 Let's head right over there. They're live from Davos.
01:01:03 Well, the lady with us today needs no introduction. She's the CEO and managing director of Wellspun Living.
01:01:09 It's well, the largest home textile company is, but now doing a lot beyond that.
01:01:14 And is the Bali Goenka. Thank you so much for speaking to us on the sidelines of the WEF.
01:01:18 Thank you. So tell us, I wanted to you gave me a cue just before the interview started about what we could talk about a lot more.
01:01:27 I was trying to gauge the interest of global corporations, global bankers in Indian manufacturing,
01:01:34 because it seems to be a decade of manufacturing as opposed to only services. Tell us a bit about this whole piece.
01:01:39 And then tell us about Wellspun Living in the scheme of things. Sure.
01:01:43 So I think India has become a very important piece of the whole sourcing supply chain matrix of a lot of the retailers globally as well.
01:01:52 And I think it's coming, coming to life, even with the kind of India being a very strategic position right now,
01:02:01 largest democracy, stable government and looking at the whole opportunity for, you know, becoming, you know,
01:02:10 kind of other countries are there like China and the others. But I think India is becoming a preferred destination for sourcing as well.
01:02:17 So I think in the scheme of things, India is in a sweet spot.
01:02:22 And if I speak about Wellspun Living here and textiles here, you know, India is not only the biggest grower of cotton,
01:02:30 it's the biggest exporter of cotton now. And along with that, for us, it's not just about towel and sheets.
01:02:37 Now you spoke we spoke about Wellspun Living, but it's a home solutions that we're talking about.
01:02:43 You know, the whole interesting thing that we have seen is that, you know, you know,
01:02:48 we are becoming not just about being the solution for trends, solution for innovation,
01:02:55 but being a partner to sustainable way of doing businesses as well.
01:03:00 And I think that's where we all are, you know, where Wellspun Living is really taking this forward.
01:03:05 So one aspect is supplying to 50 countries and more than 50 countries across the globe.
01:03:10 But India becoming a very critical piece for markets of 1.4 billion people here.
01:03:16 And the opportunity of the Roti Kapda Makan is really, truly kicking in in India.
01:03:22 I think that's where we see a great opportunity, you know, from towel sheets, rugs, carpets and flooring as well.
01:03:30 Interesting. So I was speaking to the IKEA management yesterday and they said that they want to make more in India for India and for the world.
01:03:37 So that's my question to the global companies to a large Indian company.
01:03:40 My question would be, are people coming in telling you in some fashion?
01:03:44 You told this to me, but are people coming in telling you that, hey, you're doing X, why don't you do Y and Z as well?
01:03:48 So are you doing you're doing steel? Do you do pots and pans and cutlery as well? Is that happening?
01:03:52 And that's on the lighter side. Yes, that's something that people are talking about, because I think people want to source out of India.
01:04:00 And I mean, we've seen the the phones getting outsourced, the Apple, you know, working in India, the chips being made in India.
01:04:07 I think people want to look at the whole supply chain from India. Toys, if it is toys as well.
01:04:13 So, yes, that's becoming a very interesting way of looking at India as a country and becoming the sourcing destination.
01:04:19 You get into toys as well? We are not. It's a part of home living.
01:04:24 So this is for every house you need to I mean, if you have a kid, you need to have toys.
01:04:28 OK, what's impressed you most thus far about conversations at the WEF currently?
01:04:33 And I believe you were slew of meetings today at the Congress Center where we are at, which is why we couldn't do outdoors.
01:04:38 Also, it's very cold. But what is it? What are the kind of conversations that you've lined up for yourself with your clients, with prospective other clients, what have you?
01:04:46 You know, the interesting thing that I've seen today. So sustainability really is the bedrock of the conversations that's happening.
01:04:54 But the important and sustainability at that, we're talking about the scope three.
01:04:58 That's something that's really, really interesting conversation that we've seen. The other is the AI and the ML.
01:05:04 So I think that's a very interesting bit. And I think if I talk about us and I talk about Wells Fargo living here,
01:05:11 I think imagine the whole point of sales. You know, what is the kind of predictive analytics that the consumer is going to buy or after three months?
01:05:19 Whether, you know, somewhere in North India, what is she going to pick up, you know, or whether what is the next interesting product or next interesting price that the consumer is going to talk about?
01:05:31 I think the whole thing is about experiences. And I think AI, ML could be interestingly, really looking at a lot of things,
01:05:37 whether it's the cotton that, you know, you can predict the kind of the forecast and what it could be like to what the consumer is going to buy or the consumer experience.
01:05:45 I think so. That's that's something that I'm it's going to be very relevant for me.
01:05:49 But I think that's that's I think a very important conversation that, you know, everybody's talking about.
01:05:54 It's found its way into your do's and don'ts regularly already.
01:05:59 It already has actually for me and for us at Wells Fargo.
01:06:02 I think when you talk about the sustainability piece and the scope three, our machines have a way of, you know, they're connected to, you know,
01:06:11 you know, we measure our indexes of how much steam are we going to we are generating and how we have to control that.
01:06:17 And it's all through industry 4.0. And there's a towel counting mechanism that we have because it also is, you know, the industrial fatigue that a blue collar goes through.
01:06:27 It's all AI ML generated. We got an ASCOM award for that as well.
01:06:31 So this is all finding its way inside a manufacturing.
01:06:35 Apart from that, it also will find its way into the consumer experiences as well.
01:06:39 Got it. OK. A couple of issues, if you will.
01:06:44 One, because you are such a large exporter and the world growth seems to be kind of faltering.
01:06:50 Is that a worry? Part one for 2024. Part two on the cost front as well.
01:06:54 The unpredictability is while Evergrande was a blockage, Red Sea isn't a blockage per se,
01:06:59 but is that increasing costs for companies such as yours?
01:07:04 And how are you dealing with it? So the world is very dynamic.
01:07:08 The whole economy that we're talking about globally is a little bit of a very interesting space right now.
01:07:14 And I have always told you that, you know, when I talk about us as well as about the businesses globally,
01:07:19 I think America has always United States of America has been a very resilient market.
01:07:24 And I've always reinstated that. And I think we will.
01:07:28 So we and you you would be knowing that the Fed has already been talking about cutting down the rates as well.
01:07:34 So there could be kind of an upside there. Yes. But there are so many elements in this world.
01:07:40 And somebody rightly said that, you know, there are 24 countries, you know,
01:07:45 that are going for elections and, you know, it's going to be a new world order for a lot of them.
01:07:49 So imagine 40 percent, you know, part of the world is going to be very, very different in a very different space as well.
01:07:56 So, yeah, those are the important dynamics. There's a world, you know, there's a war that's going on.
01:08:00 The Red Sea issue is definitely a kind of something that we are watching and waiting what it's going to be.
01:08:06 But there could be a solution coming in by March.
01:08:08 However, I think we always believe that taking taking the destiny in your control is very, very important.
01:08:15 These dynamics are going to continue. Cotton might not be growing that well somewhere.
01:08:21 But how are we looking at, you know, hedging those risks? How are we looking at solutions?
01:08:27 Is going to be the new world order. Believe me, the world has changed post-COVID and it's not going to be the same ever.
01:08:33 So can I assume that it's difficult to kind of nail it down to what's the quantum of impact that disruptions like the geopolitics or Red Sea has on,
01:08:44 on if not a quarterly, then a half yearly basis? Is it difficult to pinpoint it down?
01:08:48 It is going to be we are going to wait and watch. I'll tell you one thing.
01:08:51 And I think let's let's keep it there because it's a very interesting dynamic that's at play.
01:08:56 And I think the whole global dynamics there, you know, the countries, I think let's keep it there.
01:09:05 What about the consumer, the global consumer, US, Europe, etc. Is that going to be a worry or are you hopeful?
01:09:13 I always feel worry. Look at the worry or look at the opportunity.
01:09:17 And I think that's what I look at, you know, and I think for America, United States of America,
01:09:23 the opportunity is there where, you know, we at Wellspun are looking at the share of shelf and how we, you know, improve that share of shelf across the globe as well.
01:09:33 So whether it's not a towel or a sheet, but it could be a brand that we've licensed or our own brand like Christie that we have or, you know, or our brands in India like Species and Wellspun.
01:09:44 So I think the whole idea here is how do you up the whole share of shelf in the terms of quality, ticket size and also work with influencers like, you know, the AIDs.
01:09:54 For us, I think that's a very interesting bit of piece that we, you know, we are evaluating and exploring as well right now.
01:10:00 OK, one last thing before we wrap up. We are at the start of 2024. What is what is something new that one can expect from you?
01:10:08 I mean, the name change was something new for me when I first heard about it sometime last year.
01:10:15 But what is new to be anticipated of Wellspun in 2024?
01:10:20 So I think for us at Wellspun Living, the important thing in the core is the consumer, consumer globally.
01:10:26 And what is she buying or he buying globally and what is she looking at is going to be a very important bit.
01:10:31 And in terms of the experiences that she's looking at, whether it's D to C or B to C across the globe,
01:10:37 I think that's going to be a very important bit of the flavor that you'll be seeing more and more across the globe.
01:10:42 And and the bedrock is going to be sustainability for us. And I think that's where it is going to be.
01:10:47 And, you know, a key bit for us is going to be about the scope tree that we'll be talking about more as well.
01:10:53 OK, we'll talk about it during the end of the quarterly results as well as going up.
01:10:56 But thank you so much for speaking to us today. Have a great remainder of the Davos. Thank you.
01:11:01 Thank you so much. Thanks for tuning in. All right, Neeraj there in Davos,
01:11:08 I'm feeling colder watching Neeraj in Davos in the sweltering Mumbai heat, but he seems to be holding on all OK.
01:11:17 Let me quickly go across to Hemen Kapadia and Sudip Bandopadhyay.
01:11:21 I want to talk about metal stocks and Sudip, I'll come to you first on this.
01:11:27 Metals in an otherwise tepid market are having a pretty decent day.
01:11:32 I mean, look at sales, something on Hemen's watch list already up for four and a half percent in copper,
01:11:39 jindal, tata steel, the whole lot. Do you reckon you're seeing a turnaround in a cycle over here?
01:11:46 Anything that you would now get fresh positions on?
01:11:51 Well, one has to remember that metals is an extremely volatilized space.
01:11:55 And the rumors today going around is that China is coming with a big incentive to kind of rejuvenate their economy.
01:12:03 And we know that Chinese economy getting massive incentive definitely augurs well for the metal prices.
01:12:09 And probably that's getting the metal stocks all over the world excited today.
01:12:13 We have seen this getting played out multiple times and whether or not Chinese government does come up with a big incentive,
01:12:20 big kind of support, financial support plan for the economy, one has to see.
01:12:26 And as things stand today, it's in the realm of speculation. So I won't read too much into it.
01:12:32 There is a strong possibility of Chinese government giving some major subsidy or relief or incentive as far as to revive the Chinese economy.
01:12:42 But we'll have to wait and watch. If somebody is an aggressive investor and wants to take out a position in anticipation of something happening in China,
01:12:52 I think it is an extremely risky proposition.
01:12:56 Hemant, you like sales. Sales are already up over 4%. Would you enter at these levels?
01:13:02 And anything else in the metal pack that's on your radar?
01:13:06 Frankly, if it's like you mentioned, it's 4% up, I wouldn't like to chase the stock if I have a trading position.
01:13:17 If I am taking it from a medium term point of view, yes, because I believe the sale is heading towards 150.
01:13:23 But this is a six month call, not a near term call. Anything else which I like?
01:13:29 Hindustan Copper has been a perennial favorite. It's walked into a corrective phase, so to speak.
01:13:36 Long term, the stock is crossing 400. It's simply central hitting and has done well.
01:13:41 Maybe the laws of gravity need to catch up a bit. And this one other stock which looks very promising is JSW Steel.
01:13:49 It broke out of a 22-month consolidation phase, Tamanna. And it gave a throwback, gave a breakout again.
01:13:59 Once again, it's cooling off. So frankly speaking, it's had a little bit of a flip-flop.
01:14:04 But I think this stock is one of the better metal stocks during the calendar year 202 for Tamanna.
01:14:10 Right. Thanks for that perspective, Hemant. But I'll switch focus. We've spoken about financials, we've spoken about metals.
01:14:18 Let's quickly switch focus to something like an Aster DM. The stock is up in a way.
01:14:22 In fact, it's hit a life high in trade today. It's considering dividend on the back of their Gulf business sale that they've done.
01:14:33 Dividend expected to be in the 110 to 122 people share kind of a range.
01:14:39 And the plan is to distribute 70 to 80 percent of the consideration upfront as dividend.
01:14:47 And the consideration was roughly a billion dollars, which is roughly 700,000 crore rupees, 900 million to be absolutely precise.
01:14:56 Let me first come in or bring in Sudeep on this. Sudeep, something like an Aster DM, how are you viewing this development as well as how are you viewing valuations at this point?
01:15:09 Well, I think the excitement is around the dividend. And as you rightly said, the Gulf business is being sold.