- #Swiggy to launch #IPO this fiscal
- #Sensex, #Nifty extend decline
- #IndiGo in 'flight mode'
Find out what's happening in trade so far with Hersh Sayta and Pallavi Nahata on 'Market IQ'. #NDTVProfitLive
- #Sensex, #Nifty extend decline
- #IndiGo in 'flight mode'
Find out what's happening in trade so far with Hersh Sayta and Pallavi Nahata on 'Market IQ'. #NDTVProfitLive
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TVTranscript
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03:11 Hello, welcome.
03:17 You are watching Market IQ on NDTV Profit.
03:19 I'm Harsh with me, Spallavi.
03:21 But quickly moving on to the real exclusive
03:23 that we have for you.
03:25 We have with us an exclusive with regard
03:28 to food delivery player Swiggy and its plans
03:31 to go public by the end of this financial year.
03:34 Saloni has more on this.
03:36 Saloni, take it away.
03:38 Hi, Harsh.
03:38 Yes.
03:39 Actually, I want to clarify that they're not
03:41 planning to go public.
03:42 They're planning to file the IPO.
03:43 And you know the process obviously
03:44 will take a lot of time because they will file the DRHP.
03:47 And then obviously, SEBI has to approve and the RHP
03:49 and the process goes on.
03:51 But what we've gotten to know from the sources
03:53 is that by March, that is the financial year end,
03:57 Swiggy is planning to file the IPO papers.
04:00 Now as far as the size is concerned,
04:03 they are going to take some time to compile the details
04:08 and also decide it at the time and a few days
04:12 before the filing as to how much they're
04:15 planning to raise based on the market condition.
04:17 And we've also gotten to know that the offer for sale
04:20 is likely to take place, which means that some existing
04:24 shareholders might look to sell their stake in the company,
04:27 along with the fresh issue, of course.
04:29 And a pre-IPO placement might also
04:31 take place, which generally happens after the DRHP is
04:34 filed and before the RHP, to make sure that the valuation
04:39 makes sense and if they want to adjust it between that.
04:42 So that is all after the DRHP is filed.
04:44 And I just wanted to add to this that Swiggy, like Swiggy's
04:48 CEO last year in a blog post, he may have said that
04:51 the company has turned profitable.
04:53 So that's something that investors should be looking at.
04:56 Right. Thank you so much for that quick update, Saloni.
05:00 Of course, eyes glued on the other and the only other
05:05 player in the food delivery space, which is Zomato,
05:08 on the back of that as well.
05:10 If we can quickly have the stock to try and understand
05:12 as to what's happening there.
05:14 But this could be big.
05:16 And of course, we'll keep you updated with regard to
05:19 the latest as and when it comes through.
05:21 There you go. Zomato down 4%, largely in line
05:23 with where markets are trading.
05:25 But let's quickly have a look at where markets are, Pallavi.
05:28 You're seeing sharp declines across benchmarks.
05:32 You're seeing the Nifty 50, which is down 1.8% in trade,
05:37 1.7% as we speak.
05:39 Let's also look at the constituents of the Nifty 50,
05:42 the key drag there.
05:44 You know, you're 377 odd points down,
05:48 but your key drag there, HDFC Bank, which is down 200,
05:52 or rather taking the Nifty down 200 plus points.
05:56 The banking pack is the lead dragger in trade today,
06:00 nearly down 4% where the Nifty Bank is concerned.
06:03 But you can see some of the IT names are doing fairly
06:06 decently in a tough day of trade.
06:08 But let's quickly look at the Nifty Bank itself.
06:11 That's down nearly 4% in trade as we speak.
06:14 Again, the Nifty Bank constituents, they're clearly reflecting
06:17 tons of negativity after the numbers from HDFC Bank.
06:22 In fact, they've dragged along with them all the other players
06:26 in the banking pack. All of them are in the red.
06:29 So, banks definitely in focus, but some positives,
06:33 some positives which are being seen, at least as we speak.
06:37 You're seeing some green in Nifty IT, if we can pull that up,
06:40 we're also seeing the likes of Nifty Media,
06:42 which is up roughly 3/4 of a percent or thereabouts.
06:44 There you go. Nifty IT, of course, Wipro, after a good day of trade
06:49 yesterday is languishing a bit. But outside of that,
06:52 you can see Nifty IT and media are the two top gainers in trade today,
06:56 a percent higher on the Nifty Media, nothing to complain about.
06:59 In terms of some specific stocks, let me quickly try and highlight a few.
07:04 You have among those in the green, and I'll try and focus on those,
07:08 you have the likes of an Ereda, which is up 2.6%.
07:12 Agreements that they've signed, PNC Infra has also had a new order,
07:15 weighing 1.5% higher. Capri Global, we spoke with them exclusively,
07:20 6% higher. Bonus split announcement plus a foray into insurance,
07:25 Mass Financial up 1.3%, PTC Industries up 3.5% or 4%.
07:29 In terms of even some brokerage notes, as well as results coming through L&D Tech,
07:33 up 2% roughly. And we also had the likes of a DB Reality up 1.8%
07:39 on the back of a note. But we have with us market veteran,
07:44 Pankaj Murarka of Renaissance Investment Managers,
07:47 joining us to understand and break down how markets are looking
07:51 on this very crucial day. Pankaj, welcome to NDTV Profit.
07:55 Hi, good afternoon.
08:00 Yes, so Pankaj, you know, quickly trying to understand your view at the moment.
08:05 You know, you have the likes of the Bank Nifty, which is down roughly 4%
08:10 on the benchmark itself, also a bit of a bloodbath, 1.7% down.
08:16 How do you view this? Is this a sort of opportunity?
08:20 Would you call it that? Or how would you view it?
08:25 Yeah, absolutely. I think we've been in a ferocious bull market.
08:31 Obviously, as far as the banks are concerned, there was a disappointment from HTC Bank,
08:35 the largest private sector bank, which declared their results yesterday.
08:39 And there are certain things in terms of slowing deposit growth and which raised concerns
08:43 about their future outlook in terms of their future loan growth.
08:46 And which is where we have seen a bigger impact on that. And along with that,
08:49 there is a bow effect on other banks as well. But I think if we look at markets
08:54 aside of banks, then the rest of the market is doing pretty still, doing pretty fine.
08:58 So, I am firmly of the opinion that we are very much in a bull market.
09:01 Probably corrections like this only make the bull market stronger and healthier.
09:05 And this is one such correction in a bull market. Probably it's a steep one on a one-day basis.
09:12 But having said that, if you look at in the context of the kind of gains we have had
09:15 over the last few months or last 8-10 weeks in the market, I still think that this is
09:20 a very healthy correction for the market. So, I think investors are having a slightly
09:23 more medium term to long term view, should look upon this correction as an opportunity
09:27 and buy into good quality companies in this correction.
09:30 Right. On HDFC Bank itself, because that's where the focus currently is of the market.
09:35 Pankaj, what are your views? What are you taking out in terms of the key negatives
09:41 as well as the possible positives from the result that's come out?
09:45 Well, one caveat, we own the stock in our portfolios. So, with that disclosure, see,
09:54 direction of the bank is doing fine. They are delivering pretty healthy growth.
09:58 Given the size and scale now on the kind of balance sheet which they are and they are
10:03 like over 10% of the overall banking system, obviously, they are facing some, I would call
10:09 it as short-term headwinds in terms of accelerating their deposit growth.
10:14 But I think the core franchise still remains very strong and robust and the numbers by
10:19 and large were pretty okay, except that the markets got spooked by or the investors got
10:24 spooked by the fact that the deposit growth has been much slower and that raises a question
10:30 mark on their future loan growth. But I still think that as a bank, it can still do high
10:36 team kind of a growth on that size or on the current size and scale of business that they
10:42 are operating on and high team's growth over the next, let's say, three years and five
10:46 years is very exciting or compelling for any investor to look at that leave from a three-year
10:52 time horizon. And the fact is they have a history of doubling the balance sheet size
10:56 every four to five years and despite the current size, they still think that they can continue
11:00 doing that. So, slightly more medium-term, let's say, take a view which is one year and
11:05 beyond, we continue to remain positive on the bank. So, in the short-term for a quarter
11:09 or so, they could have some moderation in growth because they might want to catch up
11:14 on the deposits before they accelerate their loan growth.
11:17 Absolutely. And so, the 7% fall today and the limited question here is with regard to
11:22 HDFC. Before I move on to the broader banking pack as well in the second half of this question.
11:27 So, one is the 7% fall today, is this now looking like a lucrative valuation to enter
11:33 at this point, roughly two times forward? And how about the other part of the private
11:41 banking pack? You have the likes of a Kotak, Axis, all of which are trading at their historical
11:47 low points. Where would you see value more in HDFC given the fall or some smaller fall
11:54 that we've seen in the other banks as well as a buying opportunity?
11:57 Well, as investors, we are slightly more medium-term to long-term in our approach. So, it's very
12:04 difficult to call out whether today the stock has made a near-term bottom or not and we
12:09 are not focused on that. But I certainly think for an investor having a time horizon which
12:14 is more than a year, it makes an attractive investment into HDFC bank and more importantly
12:19 a safe investment which can deliver reasonably healthy returns.
12:23 As far as our other portfolio allocation is concerned, overall while we like private sector
12:29 banks, but we've been somewhat underweight banking as a sector in our aggregate portfolios.
12:34 As investors, we are long-only investors. So, our portfolio allocations are somewhat
12:41 underweight banks and we've been overweight IT, capital goods and healthcare or pharma
12:47 for the last two quarters, capital goods for a much longer time and we turned overweight
12:55 on IT and healthcare in the last six months. So, we think over the next, when we look at
13:01 markets and over the next let's say 12 to 18 months, we think probably IT and pharma
13:07 will outperform banks overall and which is where our overweights are. So, within banks,
13:13 we own HDFC bank and few other names. But having said that, we still continue to remain
13:18 underweight. But why so, Pankaj? Because banks is largely
13:21 a consensus buy at the moment. So, if I can very quickly have your view, why negative
13:25 banks at this point? So, good question. We are bottoms of investors.
13:31 We have no obligation to go with consensus view. We form our own opinion. We firmly believe
13:37 that overall trade growth will moderate for the industry as a whole because the fact is
13:47 that there are concerns around deposit growth and the central bank is equally concerned
13:54 about that as well as central banks have done in the last quarter, concerned about delinquencies
14:00 in personal loans or unsecured loans where we have seen instances or our anecdotal grounds
14:07 of process tells us that there could be possibility of tail risk of bad loans emerging in that
14:14 or risk emerging in that pocket or that portfolio for banks. Having said that, we find given
14:19 the fact that the economy is still doing, still delivering a very healthy growth, we
14:24 find much more attractive investment opportunities in other sectors. So, for example, we think
14:30 industrials or capital goods as a sector will continue to deliver very strong growth. It's
14:35 actually a sector which has delivered the highest profit growth over the last two years
14:38 and we think that will continue for the next two or three years. So, we find higher growth
14:43 companies, companies which can deliver much higher growth than the banking companies at
14:47 an attractive risk to all ratio in some of the other sectors versus banking and which
14:52 are portfolios are overweight some of the other sectors and underweight banks.
14:56 All right. Thanks a lot for that, Pankaj. Now, moving on or actually coming right back
15:01 to the stock in focus, that's of course, HDFC Bank. The stock has slumped after posting
15:07 disappointing third quarter earnings like Pankaj flagged off. We are now going to Vishwanath,
15:13 our colleague who is going to join us with more details on the results.
15:18 As far as HDFC Bank's results, the third quarter results are concerned, the bank has shown
15:26 some amount of operational issues specifically with respect to their deposit growth. Now,
15:31 the deposit growth sequentially has been about 2% which is significantly lower than what
15:37 the bank had given a trajectory for. They have added about 40 or 1000 crore worth of
15:41 deposits during this three-month period. This is lower than the 1 to 1.5 lakh crore worth
15:47 of addition guidance that was given by the bank. Similarly, on the branch network, the
15:53 bank is adding about 800 to 1000 branches during this financial year. This is lower
15:57 than the 1500 branches sort of trajectory that the bank had given in the past.
16:02 So, considering these two things, you would look at the NIM number. Now, the NIM number
16:07 has remained flat on a quarter-on-quarter basis about 3.4%. But what analysts are watching
16:13 out for and what they are actually raising as concern is the future levers for NIM growth.
16:18 Now, at this point in time, two quarters since the merger with HDFC Limited was completed,
16:22 one would expect that the net interest margin would come back into form. The bank is used
16:27 to a net interest margin of close to 4%. So, this 3.4% is a bit of a fall from that level.
16:34 One would have expected that the NIM number starts to rise up again from the second quarter
16:39 after the merger. That has not happened. It's remained stable. And future trajectory also
16:44 remains questionable right now because as you go after deposits, you will start spending
16:49 more on the interest expenses and that will essentially mean that your NIM will not grow
16:54 as fast as you would like to. On the operational expenses front as well,
16:59 the bank's cost-to-income ratio remains high, elevated over 40%. And that is something that
17:04 the bank has been trying to explain that they will bring it down to close to 35%. But that
17:09 has not yet translated in terms of the numbers. We have also had a slightly negative surprise
17:15 on the provisioning front during the third quarter where HDFC Bank has said that 1200
17:19 odd crore worth of provision was made, a contingent provision was made for the AIF portfolio.
17:24 That's an investment book. It's got nothing to do with asset quality. But there is an
17:28 issue if a bank has an AIF portfolio which is under question. So, we need to see how
17:33 that pans out over the rest of the financial year.
17:36 Well, so multiple concerns on the HDFC Bank front, but more on Indigo. Pragati Oberoi
17:44 joins us with more details from sources. Pragati, what do you have for us?
17:48 Right, Pallavi, you are absolutely right. So, since morning this Indigo issue has been
17:52 going on because basically what has happened is that the website, the mobile app, the contact
17:57 centre, all are offline and customers have now been asked to carry a printed boarding
18:03 pass because they are not able to web check-in. Now, sources have confirmed to us that there
18:07 is absolutely nothing to worry about. The systems are offline because it's a part of
18:11 a regular upgradation process. There were some rumours going about that maybe something
18:16 else is happening or maybe there is something to worry about, but no. The internal sources
18:20 in Indigo have confirmed to us that this is a regular upgradation process of the system
18:24 that has happened. In fact, this morning between 7 am and 11 am as well, the flight operations
18:31 server which is like the internal communication server for the pilots and the staff, that
18:36 was also put offline because upgradation was happening on that system as well. However,
18:41 now that is back online and captains and all the cabin crew and co-pilots have started
18:47 getting information. However, this aspect or this, the other servers, the website and
18:52 all which are usually accessed by customers, they are still offline and they might be there
18:59 till afternoon at least. So, only around evening perhaps the operations can come back online.
19:06 As we have more, we will come back to you with details.
19:08 Sure, thanks so much for that. Pragati, we will of course keep you posted on all the
19:13 happenings on that count as well. But Google Pay and India's National Payments Corporation
19:18 signed a pact on Wednesday to further the reach of UPI beyond India. The MOU was signed
19:24 with three key objectives including the establishment of a UPI-like digital payment system in other
19:30 countries as well. This has been in the works. Let's quickly go across and understand more
19:36 about this with Prashant.
19:38 Rishabh, sorry. Rishabh, please take it away.
19:43 That's right, Harsh. That's right. Google Pay and NPCI have signed an MOU. Now, the
19:52 MOU is basically revolved around the global expansion of the unified payments interface
19:58 and there are three key objectives to this. The first is to broaden the use of UPI payments
20:04 for foreign tourists. So, you and I go to a foreign country, we can simply use UPI to
20:12 conduct payments there instead of relying solely on forex cards or credit cards or foreign
20:18 currency there. Apart from that, it is also to establish UPI-like digital payment infrastructure
20:24 to other countries. That is a part of the India Stack push that has been happening for
20:29 a while that we are seeing that the METI is also pushing for other countries to adopt.
20:34 The third is to ease the process of remittances between friendly countries by utilizing the
20:41 UPI infrastructure that NPCI has put in place over the past few years. So, what we are seeing
20:47 is that there could be a lot of ease coming in for foreign travelers from India.
20:53 All right. Thanks a lot for that, Rishabh. Now, moving on, Byju's has filed an application
21:03 to refer the insolvency case to arbitration. That's according to its counsel. The beleaguered
21:10 EdTech firm has reiterated its interest in negotiations with the BCCI in the insolvency
21:17 proceedings filed against it. And discussions between the parties extended until late on
21:23 Tuesday night. Now, my colleague Charu joins us with more on this.
21:28 Hi. So, it's quite a confusing situation with Byju before the NCLT bench of Bangalore currently
21:36 because as we know in the later half of last year, insolvency proceedings were initiated
21:43 against the EdTech company Byju by BCCI for a default of payment of around Rs. 158 crore.
21:49 However, even though BCCI has not said anything on this front, Byju has maintained that they
21:55 are trying to resolve the matter in a very amicable manner. Even in the hearing today,
22:00 they tried to focus on the point that they have applied for the proceedings to be resolved
22:06 in alternate dispute redressal methods, that is through arbitration. However, BCCI did
22:11 not comment on this front. They have just asked for more time to file a rejoinder, that
22:15 is a response to the reply that Byju filed to the proceedings initiated by the BCCI.
22:20 And we'll know more. It's still a fresh matter and let's see what happens next.
22:25 Absolutely. We'll stay in touch with Charu for more on that. But it's time to slip into
22:32 a very short break. Do stay tuned as we get to you the top corporate and political voices
22:39 from the world at the World Economic Forum Davos. We'll be right back.
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25:39 Welcome back. You're watching Market IQ on EddTV Profit. We'll continue to give you
25:44 coverage from all that's happening with regard to the World Economic Forum and Vishnu, our
25:50 editor, spoke to the Union Minister for Petroleum, Hardeep Singh Puri at Davos, where he highlighted
25:56 India's commitment to sustainability. He specially pointed to the country's biofuel and green
26:01 hydrogen programs. Listen in to a slice of that conversation.
26:05 For the last several years, we've seen India become very much a focal point, a point of
26:11 conversation at the World Economic Forum in Davos. This time around, the WEF is looking
26:17 very closely at the entire issue of sustainable development, green development. Joining us
26:22 now, a very special guest, the Union Minister, Hardeep Puri. Thanks very much, sir, for being
26:27 with us. We'll get to the entire theme of a green transition, sustainable growth, but
26:33 I wanted your thoughts first on what is happening in the Red Sea and the potential impact to
26:40 our trade flows. We've already seen attacks taking place. Are you worried in terms of
26:46 the impact it might have on our economy? Vishnu, I would have been surprised if you had not
26:51 opened with the Red Sea question. Oh, of course.
26:54 Not only the right question, I think it's a subject which is inviting increasing attention,
27:04 a fair amount of concern, but if I were to take that to worried, I'm not there yet.
27:11 And I say that for good reason. First and foremost, I think all the state players involved in this,
27:19 as against the non-state actors which are responsible for this, all the state players, I'm not convinced any of them genuinely
27:27 wants to see a conflagration of the situation and break out of hostilities on a larger scale, number one.
27:34 Right. There will be people who will be pointing fingers. It's not for me to make an assessment,
27:39 whether the non-state actors acted on their own or with some feeling that they would be backed up by others.
27:49 But on the other hand, look at the converse. If you have to unleash bedlam, then why use one?
27:55 There are other non-state actors with far higher degree of lethality who could have come in.
28:00 My view is that any attempt to disrupt or cause uncertainty, even of a perception variety only,
28:11 in any of the sea routes which are used by global trade is a matter of concern.
28:17 Right.
28:18 Well, that's all we have for you today on the show. But stay tuned to NDTV Profit. We have lots more coming up.
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33:23 Hello and welcome. You're watching the Mutual Fund show on NDTV Profit. I'm Tamannah Enamdar.
33:30 This is your daily dose of what you should do with your mutual fund portfolio, with your mutual fund investments.
33:37 What we try and do on this show is give you insights which will help you make the right choice on your financial investment journey.
33:45 Now, we have a very special guest on the show today. We also have a number flashing on our screens where you can send in your queries if you want to know about this topic and want advice from our experts.
33:58 Today, it's all about the small cap funds. Now, undoubtedly, the big theme of 2023, not just in equity markets but as a reflection in mutual funds as well, has been the craze, I would say, for small cap mutual funds.
34:15 Funds which are focusing on investments in small cap stocks have been in the headlines, have been the highlight, and the reason for that is because they seem to have outperformed their peers.
34:30 The interest grew to such an extent that at some point, certain fund houses even put a cap on the amount of money you could put in small cap mutual funds.
34:40 Now, AUMs in this segment and in mutual funds overall have crossed 50 lakh crore rupees in December 2023.
34:48 The inflow into small cap funds has stood over 41,000 crore rupees as of 2023.
34:57 The question is that do you have the right funds in your portfolio? Is it time to re-look at this even as market commentary is talking about now moving focus to large cap funds?
35:10 To speak on all of this and more, I'm joined now by Direndra Kumar, who's founder and CEO of Value Research.
35:16 Direndra, great to have you on NDTV Profit. Absolutely superb to talk with you today.
35:22 Let's begin with your take and your commentary on the context that we set out in the beginning of this show, the growth and growth and big investments, really the big story of small cap funds.
35:35 Yeah, small caps have been a big story and understandably so.
35:41 They go ballistic whenever they do. And it has been, you know, and because the mutual fund has become accessible, now it has caught the imagination of individual investors.
35:52 And most individual investors coming to mutual fund are first time investors because of the easy access.
35:58 Now you can get going with, you know, in about 10 minutes if you have the PAN card and if you have the Aadhaar card, you are ready to go.
36:07 So, you know, and investors chase recent past performance and most investors don't understand how it works.
36:16 So it has caught every individual investor's imagination. It has done exceedingly well and most investors are following it.
36:25 And the good thing is, the bad thing is that they are not there. They are doing it thoughtlessly.
36:31 The good thing is that most of the money is coming by way of SIP. So my understanding is that investing in small cap is risky.
36:39 They fall freely whenever the market turns around. But, you know, if anybody is doing with a two, three to five years time frame, if anybody is doing SIP and even if he's doing and he's investing in small cap, the riskiest category one can think of today, you will still get back home much, much better off.
37:00 Yeah. You know, just to give context to something that you've described as a craze.