Profit 360 | Nifty Snaps Its Longest Ever Rally | NDTV Profit
- #Nifty snaps its longest ever rally
- #Aparajita Bill: West Bengal Legislative Assembly passes anti-rape bill
Tune in to 'Profit 360' with Nupur Talwar Suri for these and more top news of the day. #NDTVProfitLive
- #Aparajita Bill: West Bengal Legislative Assembly passes anti-rape bill
Tune in to 'Profit 360' with Nupur Talwar Suri for these and more top news of the day. #NDTVProfitLive
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TVTranscript
00:00Nifty snaps its longest-ever rally to end below 25,300.
00:06Sensex ends lower after rising for 10th consecutive session.
00:10Most sectoral indices decline.
00:12Nifty finance gains the most.
00:14Mid and small cap indices outperform.
00:16World Bank pegs India's FY25 GDP at 7%, says external risks to the growth outlook, such
00:24as geopolitical tensions, are significant.
00:28Bajaj Housing Finance sets IPO price band at Rs. 66 to Rs. 70 per share.
00:33The price band implies a valuation of 3.7 times price to book.
00:37Issue opens on 9th September.
00:42Bajaj Financial Services Chairman Sanjeev Bajaj says he does not feel that a banking
00:47license is essential to grow further.
00:50Points out that existing licenses are sufficient for the growth planned at the group's lending
00:55businesses.
00:58A bonanza listing for Premier Energies as it debuts at 120% premium over the IPO price.
01:07Countries tighten visa rules for students to control migration.
01:10We get you details on how this could impact Indian students aiming to get an international
01:14education.
01:17Nitin Gadkari slams companies that make roads and tunnels in hilly areas, says the Rs 3,500
01:23crore road between Manali and Kullu was wiped out due to rains and landslides.
01:28West Bengal Assembly passes a state anti-rape bill.
01:38The draft legislation seeks capital punishment for persons convicted of rape if their actions
01:43result in the victim's death or leave her in vegetative state.
01:50Netflix India assures the government that in the future, content will be made in accordance
01:54with the nation's sentiments, sources say.
01:58This comes on back of a row involving its web series IC814, Kandahar Hijack.
02:17Hello and welcome.
02:18You're watching Profit360 on NDTV Profit and I'm your host, Mallika Mishra.
02:22Over the next half an hour, we'll bring you the latest on markets along with national
02:26and international news.
02:27Now, let's have a look at how the markets have fared today.
02:30Nifty ended flat with Nifty Media as a top laggard.
02:33I'm joined by Harsh Fayyad to give us a detailed breakdown.
02:36Harsh, over to you.
02:38Well, we've closed flat where the index is concerned and let's quickly pull up the Nifty
02:44absolutely flat, as flat as it can get.
02:48Let's quickly pull up the intraday chart, see the kind of band the Nifty was trading
02:53in.
02:54This is the real point I'm trying to make.
02:55Just about 80 to 90 point band is what we've traded in pretty much through the day.
03:01So that's and we clocked the intraday high right at the start.
03:04So we've fallen off post that.
03:06That's how at least the Nifty shaped up.
03:07Let's pull up the contributors first before I go on to individual names and the heat map.
03:12Well, in terms of Nifty contributories, you had ICICI Bank do fairly well.
03:17So some private sector banks did fairly well and Life Insurer stood out, especially in
03:21the last hour or so of trade.
03:23Nifty RIL, some of the heavyweights packing a punch on the other side, Bajaj Finance down
03:28some profit booking, it seems after that Bajaj Housing Finance IPO, especially on the pricing
03:33of the IPO came out 66 to 70 rupees a share, 3.7 times price to book.
03:39But let's quickly pull up the heat map.
03:41There you go.
03:42You're seeing SPI Life, HDFC Life lead the pack.
03:44So financials essentially, that's what ruled the roost.
03:47Along with two wheelers, Hiromoto, Titan also did fairly well in trade.
03:51Among the losers, you'll see ONGC, Infi and a clutch of stocks.
03:55In fact, no specific counters with big gains or losses.
03:59But nonetheless, you had quite a few stocks which were in the red by just about a percent
04:04or thereabouts.
04:05Let's pull up the broader market, see what happened in the Nifty Mid Cap and Small Cap.
04:09The Nifty Mid Cap largely was in line with the benchmark.
04:14And that's what you'll see on your screen, quarter of a percent higher.
04:17We clocked the day's low just about very close to close.
04:21And that's probably reflecting on the index.
04:23But the Nifty Small Cap is where the outperformance was, around 0.6 percent higher.
04:29And if we can have the breadth of the market, the advance decline reflects that largely
04:34we had a one is to one at close, even though the market breadth was fairly strong at the
04:39start of the day.
04:41Let's also try and look in at the sectoral heat map.
04:46The indices which have buzzed in trade, the Nifty Bank up half a percent.
04:51So that was the one which was supporting the Nifty 50 throughout the day of trade today.
04:56But you look at some of the big losers in trade, you'll see Realty Metal not on the
05:00Nifty, but nonetheless, those two were the two top losers outside of media and energy.
05:06And you also saw some bit of pain in FMCG and IT, a third of a percent lower on the
05:12IT, especially on the benchmark.
05:14That one would have definitely had an impact in terms of gainers.
05:19You saw good traction in Nifty Pharma pretty much through the day outside of private banks.
05:23So that's how it played out.
05:24Let's pull up the BSE 500, see how that one has shaped up.
05:29No major big losers, three and a half percent on Z, a few losers in the 2 to 3 percent kind
05:36of bracket.
05:37But look at the gainers, GM Financial, Bombay Burma, Godrej Industries, some big gainers.
05:43But again, just about quite a few.
05:45After that, you had all the defense counters buzzing along with Mazgon Dock up 6 percent
05:50along with HAL as well.
05:52And some of those were also buzzing in trade.
05:55You had Raymond up five odd percent.
05:57So that's how we shaped up for the day.
06:00Slowing credit growth has prompted a lot of investors to move away from financials.
06:04But what makes Vetri Subramaniam of UTI AMC comfortable with valuations of this space?
06:10Listen in.
06:12Nominal GDP growth is currently below 10 percent in the economy.
06:16So in the context of nominal growth being below 10 percent, a 13 to 14 percent credit
06:22growth is quite comfortable.
06:23Remember, RBI itself has been sort of tackling some parts of the economy or some segments
06:30of lending where it had been doing very rapidly.
06:33They've actually tried to get people to pull back on that.
06:36So there is both an impact of slightly slower growth in the economy, as well as actions
06:41by RBI, which are causing this credit growth to come in slower than where it was a year
06:46ago.
06:47But I don't see that as anything more than cyclical.
06:49And I would actually submit that if credit growth were to turn down significantly, we
06:54would have a lot more to worry about because that would be an indicator of significantly
07:00slower growth.
07:01Now, the World Bank has upgraded India's growth forecast for FY25 to 7 percent as compared
07:07to the earlier 6.6 percent.
07:10To tell us more about the upgrade and the reasoning provided, Pallavi joins in.
07:13Pallavi, what does this mean for India?
07:16Right.
07:17So like you mentioned, the World Bank now projects India's GDP growth at 7 percent.
07:23That's compared to its previous estimate of 6.6 percent.
07:26And this, it says, is despite a fairly subdued external environment.
07:32External risks, in fact, continue to remain significant.
07:37Geopolitical tensions can also possibly put some pressure on commodity prices and critical
07:43supply chains.
07:44And resurgent interest rates could, in fact, continue to mean higher for longer interest
07:51rates.
07:52And the higher inflation trajectory that we're seeing globally could continue to pose
07:57risks to India's domestic outlook as well.
08:00However, it does say that despite all of these external risks, India's growth remains resilient
08:07not just for FY25, but also for the medium term.
08:12The significant expansion that we have seen in public capex in recent years is expected
08:18to eventually help crowd in private investments.
08:22The fact that domestically we are seeing inflation on an easing trajectory, as well as the fact
08:28that recovery is being seen in agriculture, given the trajectory of the southwest monsoons.
08:34All of this is expected to help growth.
08:37And all of this is also expected to help reduce extreme and moderate poverty.
08:44That's according to the World Bank.
08:45Overall fiscal deficit also is expected to continue to fall and is also expected to help
08:52pull down public debt over the medium term.
08:54But, you know, what was also interesting in the World Bank's commentary was what it had
08:59to say on India's exports.
09:01It does feel that the Indian economy needs to also pump up its exports.
09:07It needs to diversify its exports, integrate better into global value chains.
09:14India's current trade policy stance features both liberalizing measures, but also slightly
09:19restrictive measures.
09:20Of late, we have seen a spate of tariff as well as non-tariff barriers that are possibly
09:28restricting India's trade openness.
09:30It will need to lower trade barriers, revisit FTAs and regional integration options.
09:37That's according to the World Bank.
09:39Well, thank you for that, Pallavi.
09:42Now let's listen in to World Bank's Country Director of India, Auguste Taino's insights
09:47on why India should expand its export basket.
09:51We think the time has come from India to expand its export basket into other areas, including
09:58areas where India was doing very well in the past, but not doing so great now, such as
10:02textile, apparel, and maybe new goods such as green technology goods that are coming
10:10up as a potential area for export growth.
10:15So to achieve that kind of diversification, there is a need for India to connect to global
10:24value chains in these new areas more proactively.
10:30And there are new export markets that are also emerging.
10:33For example, if you look at global growth today, a good share of global growth is coming
10:37from the middle-income countries and low-income countries, generally called the Global South.
10:43And this is an untapped market for export.
10:46India could export a lot more to the Global South.
10:49And by doing that, India will export goods that are perhaps not so high-tech, but they
10:55will need a lot of workers to produce those goods.
10:59And therefore, India's trade will become increasingly more job-creating.
11:04Well, now it's time for some action from the primary market, the IPO of Bajaj Finance.
11:10Housing Finance will now open for subscription next week at a price band of Rs. 66 to Rs. 70.
11:15Now, Bajaj Finance subsidiary is looking to raise over Rs. 6,500 crore through the offering.
11:21Harsh brings us more details on the valuations and more.
11:24Harsh, over to you.
11:26Well, Rs. 6,560 crore is what Bajaj Housing is set to raise, of which Rs. 3,000 crore
11:33will go straight to the holding company, Bajaj Finance.
11:36Rs. 3,560 crore is what the fresh issue is going to look like.
11:39It's already well capitalized, 23.5% plus in terms of capital adequacy.
11:44But really, what's standing out for me in Bajaj Finance?
11:46First off, with regard to growth, last seven years, the company has done nearly 70 plus
11:52percent in terms of compounded annual growth on its AUM, almost 140 percent compounded
11:59annual growth on the profit after tax.
12:02Mind you, this is on the back of Bajaj Finance, which has compounded investor wealth at a
12:09stupendous pace, 900x over the last 20 years, nearly, is what Bajaj Finance has done.
12:16So it's been a phenomenal compounder for all investors within the Bajaj Finance fold.
12:23But let's quickly switch focus.
12:25Asset quality will be the key concern on investor radar, especially where Bajaj Housing is concerned.
12:32And you're looking at very, very solid asset quality.
12:35You're looking at roughly 0.28% in terms of GNPA, 0.1% in terms of NNPA, and therefore
12:42asset quality, not that much of a concern.
12:45It's a 2.4% ROA business, and it's valued at Rs. 66 to Rs. 70 at the top end of the
12:51band.
12:52It's trading at, or rather it's set to IPO at 3.7 times price to book pre-money.
12:58That's prior to the issue.
13:00That's how we're seeing this.
13:02Of course, investors will have to look for how they view Bajaj Housing from a longer
13:09term perspective.
13:10Bajaj FinServ Chairman Sanjeev Bajaj, while speaking to Vishwanathan Iyer of NDTV Profits,
13:16spoke on the timing of the listing.
13:18He said the business is large and diversified enough for the listing.
13:22Listen in.
13:23It's a combination of regulatory requirements, which of course we all have to meet.
13:29This also has equally to do with the size we have achieved in this period of time.
13:35If we were a 10,000 crore AUM business in seven years, we would not have listed.
13:42At this kind of size, the business is large enough, diversified enough, where a listing
13:48makes a lot of sense.
13:50And of course, there is the regulatory requirement.
13:52Sanjeev Bajaj, the Chairman of Bajaj Financial Services, does not feel that a banking license
13:58is essential to grow further.
14:01Responding to NDTV Profits' queries, Bajaj pointed out that existing licenses are sufficient
14:06for the growth planned at the group's lending businesses, Bajaj Finance and Bajaj Housing
14:12Finance.
14:13Listen in.
14:14You've built out a very strong consumer-focused business on one side.
14:21This home loan business or mortgage business is also growing on the other side.
14:25Any banking ambitions at all?
14:28Anything that we are doing that is less than one?
14:31And we are very happy doing it with the license we have.
14:35Sanjeev, just to add to that question, Sajith here from NDTV Profit.
14:41You're growing at 30% every year, both your businesses, finance and housing finance.
14:47Given the kind of capital requirement going forward, is that the long-term game plan
14:53that you would look at moving towards a banking license so that you have low-cost deposits
15:01coming in?
15:02And yesterday, when you were there in one of the panels with the SEBI chair, you were
15:08discussing about how movement of housing savings is moving from banks to financial instruments
15:15and banks are getting – it's getting difficult for banks to raise their budget.
15:20So, your thoughts on those?
15:23Well, you know, Bajaj Finance already has a deposit license and that has helped us on
15:30the liability side of the business.
15:33Growth is an outcome.
15:35It's an outcome of the opportunity that the market presents and our capabilities and the
15:40capital that we are able to bring.
15:44And the last 17 years' journey of Bajaj Finance has shown that.
15:48The last seven years' journey of the housing finance company has shown very strong growth.
15:54Our existing licenses more than suffice for us to be able to drive whatever is a reasonable
16:01growth going forward, keeping in mind the opportunity there, keeping in mind the risk
16:07reward balance, keeping in mind the capital that we are able to raise periodically to
16:12be able to sustain a reasonable amount of growth.
16:15Premier Energies ended 15% lower after making a stellar market debut.
16:19The stock listed at a premium of 120% over its issue price.
16:24We spoke to the management on the capacity utilization and use of their IPO proceeds.
16:29Listen in.
16:31The capacity utilizations currently are hovering around 75% to 80% for the module and the cell
16:38lines.
16:39And the capacity utilizations are going to go up a little bit more this year, considering
16:45last year was the inception of the second cell line and the second module line.
16:49And as you know, cell is a complex process and it's going to take some time to ramp up.
16:54And we are through the ramp up phase and now we are in the full production every month.
17:00And we'll be adding the four gigawatt from the proceeds for this thing.
17:05But apart from that, there is another one gigawatt of popcorn cell line that is going
17:10to be operational early next year before the four gigawatt comes online.
17:15Currently, we have two gigawatts of cell line and we've got four gigawatts of module line.
17:20So, you know, to this point, we're adding another one gigawatt of cell line this year
17:25in this financial year.
17:26So that brings us to three on cell and four on module and then another four and four coming
17:31in in FY26 and 27.
17:32So that's the capacity roadmap in terms of our expansion.
17:35Consolidated will be at eight gigawatt of modules and seven gigawatts of cells by FY26-27.
17:44Now, in stock specific news, Cain's technology gained close to four percent.
17:49They expect significant revenue to come from its semiconductor business by FY26.
17:54This comes after the government approved the company's chip making plant worth 3,300
18:00crore rupees in Gujarat's Sanand.
18:03Earlier today, we spoke to the management on how it will aid the company's top line
18:07in upcoming years.
18:10See, our OSAT plant is going to be an assembly house and it will have a test facility too.
18:17Now, we have planned a project for around 4,000 crores.
18:21We will be investing around 850 crores.
18:25So this is on the plant and machinery.
18:29Apart from that, there will be some civil works and all put together.
18:32So we are excited that government has given us the approval and then we want to start.
18:38We feel we need a year's time for construction activity.
18:42We have acquired land.
18:44We have done our planning stage.
18:45So execution will start in a month's time.
18:49And from there, we will take for civil construction.
18:53And our first revenues should be up on the third quarter of 2026.
18:59Bajaj Auto is the next one on our radar.
19:02The stock hit life highs yesterday after the company posted robust August sales.
19:07The domestic two-wheeler segment saw a 30% jump while commercial vehicle exports saw a 41% surge.
19:14Overall, as well, the sales grew at a very healthy rate of 16%.
19:19Now, we spoke to Rakesh Sharma of Bajaj Auto earlier today
19:24and asked him what is aiding this domestic growth and what is the outlook on sales.
19:30Listen to him.
19:32The new CNG bike, which obviously is again not a one-off,
19:37but it is something which is a very substantive initiative into the value conscious segment
19:43which spans the 100-125cc landscape.
19:48And that has brought in incremental business.
19:52And we obviously therefore expect that as the Indian industry starts to be in the positive zone
20:01and continues to do well, we should, because of these things,
20:05continue to grow faster than what the industry is doing.
20:09In the last decade, the Indian power sector has progressed in terms of generation capacity.
20:15That's what PK Pujari, the Governing Council at Powergen India,
20:19had to say ahead of the Powergen India and Indian Utility Week event.
20:25During the last 10 years, the Indian power sector has made remarkable progress,
20:31not only in terms of generation capacity expansion,
20:35but also in terms of transmission capabilities.
20:39And this is also enabling the power sector to meet the growing demand.
20:44But at the same time, by meeting the demand,
20:48the power sector also has taken big strides towards resilience and clean energy transition.
20:54At the ongoing CII Financing Summit, RBI Deputy Governor Michael Pathra
20:59today morning spoke on the rising role of the private sector
21:03to fulfil the economy's financing requirements for future growth.
21:07Take a look.
21:09In India, between 2012 and 2019, the ICOR averaged 5.0.
21:15So you required five units of capital to produce one unit of output.
21:19But in the last three years, it has fallen to 4.0.
21:24As efficiency gains in the economy rise,
21:27the workforce gathers skills and the economic structure acquires
21:32sophistication and technological progress,
21:35it is possible to envisage that this ICOR will range between 3.5 and 4.
21:41Accordingly, the required investment rate for a decade of high growth
21:46would be in the range of 33 to 38 percent of GDP per annum.
21:51Not just the main board IPOs,
21:54SEBI has also expressed concerns on SME IPO listing process.
22:00In fact, Ashwani Bhatia, the whole-time member at SEBI,
22:03says that the regulators soon will release consultation paper on SME listing process.
22:08He also spoke about how intermediaries should avoid shortcuts.
22:12Listen in.
22:14I'm a banker and we were told that we should learn to say no.
22:20Perhaps this is one thing that is not being done.
22:26And here let me talk about the ecosystem.
22:29And the ecosystem includes chartered accountants,
22:33it includes merchant bankers and it includes exchanges.
22:38And very often and what we have seen in the recent past
22:42is the fact that the checks and balances are simply not there.
22:48Nobody is actually saying no to the applicants.
22:55When we were bankers, we actually many times said no to a customer.
23:01Maybe the diligence that is required of the chartered accountants,
23:07merchant bankers and exchanges is possibly missing
23:13and they need to do some hard work over there.
23:16Growth is very much there.
23:19We are growing very, very fast.
23:22And I mean, my old customers, I remember my days in the bank.
23:27A guy who was a transport operator is today a fleet operator.
23:31But if you try to take shortcuts, try to inflate balance sheets,
23:36I think the relationship between the intermediaries and the companies will be a very short one.
23:43Roads Minister Nitin Gadkari has slammed companies
23:47who make roads and tunnels in hilly areas without proper inspection and study of the geography.
23:54He called them the culprits and said that the companies that make DPRs
23:59or Detailed Project Reports are owned by retired government officials.
24:04They work from their homes without any detailed investigation.
24:08Listen in.
24:10From Manali to Kullu, we have made roads worth Rs. 3-3.5 crores.
24:18And the roads are full of landslides and floods.
24:22Because there are mountains here and there, roads here and there,
24:28rivers in the middle and people are settled there.
24:31And it is difficult to get people out.
24:34And the terrain is like this and there are complete landslides.
24:38Every year there are landslides in Barsat.
24:42Every year people are dying.
24:45And we have not yet found a written solution.
24:50We should not use words in this, but I feel that if someone is the culprit,
24:57then he is going to make DPRs.
25:00There must be some people sitting here.
25:03And I am using this word culprit, so I am sorry for that.
25:07These people sit at home.
25:10And many DPR companies are owned by government officials after retirement.
25:16And these people do such a disgusting job
25:20that they sit at home and prepare on Google.
25:24There is no detailed investigation, no detailed study.
25:28After a brief discussion, the West Bengal Assembly
25:32has unanimously passed the Anti-Rape Amendment Bill titled
25:35Aparajita Women and Child West Bengal Criminal Laws Amendment Bill 2024,
25:43which was introduced by the West Bengal government.
25:47Sparked by the RJ Kerr Medical College rape case,
25:51the bill aims to address widespread public concern.
25:54The bill proposes to create a safer environment for women and children.
25:58It also ensures the penalties laid down in Bharatiya Nyaya Sanghita 2023
26:03to be more stringent.
26:10Prime Minister Narendra Modi embarks on a two-nation visit to Singapore and Brunei.
26:16This makes it the first ever bilateral visit by an Indian Prime Minister.
26:21PM Modi landed in Brunei and as a special gesture,
26:24he was welcomed by the Crown.
26:27Prince Singapore and Brunei are important partners in India's Act East policy
26:33and the Indo-Pacific vision.
26:35PM Modi will first visit Brunei and then head to Singapore.
26:38Modi expressed confidence in advancing India's historical relationship with Brunei
26:43to new heights and commemorate 40 years of diplomatic relations between the two countries.
26:54Karnataka government has declared dengue as an epidemic disease.
26:59It will impose a penalty if people violate rules.
27:01Let's go across to Pratibha for more on this.
27:31Many cases have crossed the 24,000 mark here and also registered 12 deaths.
27:37This has definitely caused the health department as well as the health ministry
27:42to rise to the occasion.
27:44OV trap baskets that have been set and also to control the mosquito breeding ground,
27:49they have now authorized persons to levy penalties.
27:53This could range anywhere between 500 to 1,000 rupees.
27:57We are talking of monitoring construction sites, playgrounds, schools
28:02and other such places that could be potential breeding ground for mosquitoes.
28:06This has been one of the steps taken by the Karnataka health department
28:10especially after a steep increase in the dengue cases.
28:14Where it stands right now is 24,521 with 12 deaths that have registered.
28:21And here's hoping that this notification taken by the Karnataka government
28:24would definitely put an end to the alarming rise
28:28and also take care of controlling this disease.
28:31Not just dengue that we are talking of but other related diseases as well like malaria and others.
28:36Back to you.
28:54For more information, visit www.fema.gov
29:24For more information, visit www.fema.gov