#Nifty, #Sensex flat in volatile session as #ICICIBank, #RIL, #ITC gain.
Niraj Shah and Tamanna Inamdar dissect key market trends and explore what's to come tomorrow, on 'India Market Close'. #NDTVProfitLive
Niraj Shah and Tamanna Inamdar dissect key market trends and explore what's to come tomorrow, on 'India Market Close'. #NDTVProfitLive
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00:00:00 bound trade a small range thereabouts, but the nifty now about 60 points up
00:00:05 Sensex also not in too much action
00:00:08 The real action frankly has been on the broader indices and we pull up the bank nifty the mid cap and the small cap
00:00:14 Indices where you have seen movement bank nifty having a great day today
00:00:19 Bank nifty really coming into its own will pull up the constituents as well. But meanwhile broader indices
00:00:25 Feeling the pain led largely by public sector
00:00:30 Companies the mid cap hundred about a percent and a half down in small caps as well
00:00:36 You've seen even a deeper cut in the larger picture perhaps not too much
00:00:41 But on a day when you know, the rest of the market is doing fairly. Okay, you're seeing pockets of weakness here
00:00:47 Let's just pull up the heat map for the nifty first and see what's happening there
00:00:52 Grasim is the story of the day. It's the stock of the day numbers have seen that stock up nearly 5%
00:00:57 SBI also having a great day a polar hospitals again on the back of quarterly numbers
00:01:02 So a lot of the themes today has been based on performance of the companies
00:01:07 And if you notice you see banks doing well all around so on your top row your SBI or ICICI bank your access bank
00:01:15 All of them there. I mean Jeffrey's downgraded ITC, but it's made a little difference to them
00:01:20 Let's talk about half a percent up on the other hand
00:01:23 Autos are having a kind of a mixed day Eminem down about two and a half percent
00:01:28 Today ONGC also sliding UPL continues its painful reaction to a bad quarter
00:01:34 But on the other hand, you've seen even an HDFC life not doing too well at all
00:01:41 let's pull up the
00:01:43 Market breadth and see how the day has been in a snapshot and you see that kind of massive swing
00:01:50 a
00:01:51 Little after opening in the middle of the day mid-morning really that you see continuing there
00:01:57 Since then the Bears have sort of rained on the markets and you're seeing that gap
00:02:02 Continuing even now your advances to decline of course completely off one third over there
00:02:08 So all in all more of the action may be on individual stocks
00:02:13 And I'll just pull up some of them quickly for you and look at what look at what's happening there
00:02:18 PFC and RVNL are the biggest losers of the day again based on their numbers
00:02:25 RVNL had a forgettable quarter quite a bad quarter actually and that's talk about 8% down
00:02:30 PFC on the face of it didn't seem to have put out very bad numbers, but the street not too excited about what they're seeing
00:02:37 Zomato is one that we should talk about
00:02:40 Good house views a lot of upgrades coming in there and let's talk about three and a half percent up
00:02:47 ATM continues its saga and the RBI making it clear yesterday that any action against them was completely justified
00:02:55 Let's talk about five and a half percent down
00:02:57 AstraZeneca and Birla cop are the other tools that I would pull up on having a very bad day one having a relatively a good
00:03:04 Day, so stock specific news in the market today
00:03:07 But near is the big question of the day if I had to pose one is what's happening with public sector banks
00:03:13 I think yesterday this time they were in the opposite not just public sector banks Peggy
00:03:18 O'Barton public sector companies yesterday this time the story was completely opposite
00:03:22 Yeah, and and such a big turnaround that's happening in PSU's and at some point of time
00:03:28 Maybe taking cognizance of the stretch valuations if you will I mean that's possibly the only reason because we see nothing else that is
00:03:35 caused a flutter
00:03:37 But people would argue that what is it that led to the kind of outperformance in the first?
00:03:42 Point of time and you know we'll talk about these PSU's at about 3 3 or 5 p.m.. In great detail as well
00:03:47 But yes today is a day of PSU's turning around down and not as much maybe for banks, but for a lot of others so
00:03:54 Look at look at for example shipping corporation of India look at maybe LIC which is down
00:04:00 Look at some of the defense names, and how they have corrected
00:04:03 So a lot of these PSU's have really buckled under some pressure in
00:04:08 In trade and that is to be kept in mind. Just want to mark two or three names before we
00:04:13 Take it to our experts
00:04:15 from amongst the
00:04:18 Losing end of the market on the BSE 500 so we've spoken about some of the standout movers
00:04:23 But there are a few stocks that have reacted to numbers so
00:04:26 AstraZeneca is one such which is down about 14% and a really steep drop
00:04:33 You've seen what's happened to PFC REC RVNL so that and SJV and MRPL etc
00:04:38 So that's the sum and substance of what the PSU space is doing per se and today some of the other names like Apollo tires
00:04:45 Or a Ramco Cement etc which came out in not such a bad set of numbers have also corrected
00:04:51 So keep all of these at the top of your mind
00:04:53 But the standout feature has to be PSU's and we'll talk about this in detail in a bit
00:04:57 Let us first get in our guests to talk about their views Gaurav Bisa
00:05:00 Vice president in credit equities with us on the show as is Dipan Mehta founder director elixir equities
00:05:08 You know, we know Dipan is not as constructive. So I'll come to him in a moment. But first Gaurav to you
00:05:13 How are you looking at the trade today it can this deepen further this slight pain that we see
00:05:21 Good afternoon Niraj, to your team, fellow panelists and viewers
00:05:28 See
00:05:30 Corrections have never been an issue if you look at last two months also
00:05:33 We have seen nifty falling 300 400 points in a single day. What is missing is the follow-up to that?
00:05:41 Today we had not that weakness in the benchmark indices
00:05:46 but for the bottom market this is we are seeing them into pain if
00:05:49 we see
00:05:51 Monday having another set of weakness then probably we can say this this
00:05:56 Weakness will likely continue it may still go lower
00:06:00 and
00:06:02 the pain may augment but to
00:06:04 Answer this one would be difficult because as I said that there are multiple instances where the indices have been extremely weak
00:06:11 They closed in low points today and the very next day you've seen 200 250 points bombs coming in if the index as well
00:06:16 So I would rather wait for a day to have a more concrete view than to anticipate what can happen
00:06:23 second
00:06:25 Coming back to only the benchmark indices especially nifty
00:06:29 The index is multiple support. So we look at that 21,500 missing comfortable lighting happening
00:06:35 That was the us well support area
00:06:37 Recently we've seen a couple of time bounces coming from 21,000 626 30 and today also if you see this bounce
00:06:44 But easily from 21 630 so that is the very immediate
00:06:47 Support area having said that nifty is likely to be in the range
00:06:52 Just because we have seen a very strong bonds, but does not mean I will fly away tomorrow
00:06:57 Probably 21,000 99 to again acted as a strong return so for us at in front
00:07:02 We are saying that do not be in hurry to buy or sell indices rather be stock specific
00:07:06 Because of the quality part it becomes very difficult to trade indices. No, whether you're talking about if to a benefit
00:07:12 Either they are gap up in a day the other day that gap down so becomes very difficult to trade
00:07:19 But for I mean both indices are near support area
00:07:22 Bang if they actually if it goes below 45,000 it was trying to do that anywhere around
00:07:28 44,700 I think it's a wonderful level to buy
00:07:31 There's a strong rising channel supported on daily charts for bank nifty and from there if those are sustained one can express swift
00:07:37 Thousand-thousand fine points upside so I was hoping that we will see that getting broken today
00:07:42 but
00:07:44 for a
00:07:46 Different reason we have seen a benefit outperforming by a very wide margin today
00:07:50 And it did not come to us those levels, but for me both of them are in the support area
00:07:54 Absolutely
00:07:57 The bank nifty is showing smart turn deep and meta is with us. They've been always great to speak with you on the show
00:08:04 Let's start you know with your take on what's happening on two ends one on the bank
00:08:08 Nifty or on banking stocks and the other what's happening with public sector back of the public sector companies
00:08:15 Do you think that a realization on how far the valuations have run off is now setting in?
00:08:20 Hey, good afternoon. Thank you for having me on your show
00:08:23 So I think we are seeing from our point of view a broad correction
00:08:28 Gradually setting into the market or at least what we are seeing just now is distribution taking place
00:08:33 And a few index stocks are keeping the nifty and sensex
00:08:37 And some of the other mid-cap stocks are also keeping the those indices on the on the upside
00:08:43 But by and large I think we are seeing selling taking place across the board and maybe markets have run bit ahead of themselves
00:08:50 PSU banks specifically
00:08:53 by and large the numbers have been disappointing if you consider them at pre provisioning profit levels and
00:08:59 Even the growth rates on terms of advances and deposits have been slightly lagging could be base effect
00:09:05 I'm not denying that but on these numbers one cannot really get even more bullish on PSU banks
00:09:11 Of course, there's a case for re-rating and that process is underway
00:09:14 But per se these quarter numbers for PSU banks also have been largely disappointing and on the larger PSU basket
00:09:21 I think we are gradually getting into over ownership
00:09:24 situation and more importantly there's a lot of trading interest in PSU stocks per se and
00:09:31 These are not necessarily very strong hands or that much of a long-term view
00:09:35 So I think if a correction does tend to set in or if these stocks stop to move up
00:09:40 Then you may see us further selling pressure
00:09:42 Accelerate so I would say that this is a little bit cautious in the market and you know
00:09:48 Let's just wait and watch see how the rest of the earning season plays out and then look at the entry into the market only once
00:09:54 It is corrected significantly maybe 10 12 15 percent from its highs
00:09:58 So you're saying a 10 12 15 percent correction going forward from the market now
00:10:04 The tricky bit about that is that people have been predicting correction for a while
00:10:10 And we haven't quite seen that coming in yet, but let's wait and see where that
00:10:14 Actually falls in place caught off. I want to get your view on a grass him
00:10:18 The numbers seemed good on the face of it
00:10:23 the net profit however declined from
00:10:26 You know
00:10:28 2515 crores because weakness in chemical unit, but overall the profits have risen that stock holds so up
00:10:33 Do you see more value or more upside in a grass him today?
00:10:37 I
00:10:39 See this has been a very strong out of former one of the few large cap names
00:10:45 So you've seen a very strong performance sort of coming in however
00:10:48 Last couple of weeks you have seen the stock struggling to gain its territory begin momentum
00:10:54 In my opinion we can see some more upside, but I would rather wait a bit
00:10:59 There's a strong hurdle that we are seeing at levels of 2180
00:11:03 So I give away 1% from the current levels and about to 1 to 0 it can open up a more towards
00:11:10 2300 kind of levels so for me it can be a buy about the one is little and which not sustain those levels
00:11:16 I would not like to preempt at this point in time
00:11:19 All right, you wouldn't preempt at this point of time
00:11:24 We'll take a very short break please stay on with us
00:11:26 But our eye continues to be on the market
00:11:29 Our Pfizer numbers are just trickling in on your screen and we'll see how that stock is responding as well
00:11:33 Last leg of trade on what has been a fairly volatile day. How does the market close this week?
00:11:39 We're back with all of that and more when we return
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00:14:30 Welcome back. You're watching India Market Close, a quick look at Pfizer, which is not
00:15:00 responding too well to their quarterly numbers. Down on all counts, revenue down 13%. I think
00:15:06 I saw EBITDA down about 25% for the pharma company. EBITDA down 25% at 152.6 crore rupees.
00:15:15 Now in a space where pharma has had a pretty decent quarter relatively, safer in AstraZeneca
00:15:21 as Neeraj was saying, Pfizer seems to have joined that pack. Margins have also shrunk
00:15:25 by about 400 odd basis points. We'll come back to Pfizer in a bit. But meanwhile, let's
00:15:31 shift focus to Patanjali Foods. Sanjeev Asthana joins us now. He's the CEO of Patanjali Foods.
00:15:37 And let's take a look at what this quarter has looked like for the company. So just the
00:15:42 numbers very quickly. Revenues are down marginally, just really flat actually, if I'm being honest,
00:15:48 down 0.2%. Year on year EBITDA though is down about 6.5%. Margins have seen a bit of compression
00:15:55 at 4.3 versus 4.6% and net profit is down about 19.6%. Let's start with these numbers,
00:16:04 Mr. Asthana, and welcome to NDTV Profit. Why don't you begin by telling us what has perhaps
00:16:09 not worked for you this quarter? So what has not worked in terms of the performance in
00:16:18 this quarter are basically three key reasons. Especially I'll do the FMCG first and then
00:16:25 I'll go to what has worked very well. One is that two businesses typically go through
00:16:30 a very seasonal cycle and they are the ones, Biscuits, which marginally went down on the
00:16:35 revenue and correspondingly, even the EBITDA came down. Likewise, Nutrilla, which is a
00:16:42 soy protein business, that was marginally down again due to seasonal factors. And third
00:16:47 is the commodity inflation in our staples business in the foods portfolio. So due to
00:16:54 various elements, whether it's policy driven or the natural commodity inflation, we had
00:16:59 some challenges on the foods business. But what has worked very well is that our oil
00:17:06 business, which in last four quarters was under a lot of stress, it has become profitable.
00:17:11 We have made a 2% margin in this. Our effort is to take it closer to 4%. Our FMCG portfolio,
00:17:18 as I mentioned, is temporarily down. And this quarter, we should be able to pick it back
00:17:22 again. And we should get back to the margin construct of 5% to 6% plus and progressively
00:17:30 on a targeted basis, which we want to take towards the 10% over next four years.
00:17:36 I just want to get into a bit of detail on the seasonal variations you're talking about,
00:17:40 because you're attributing your margin compression and your profit drop to these seasonal reasons.
00:17:45 So now for soya and Nutrilla, I can understand. But what about the other aspects? And why
00:17:51 do you think you've seen FMCG business get squeezed? Is it because of input costs or
00:17:57 is there sluggishness in demand as well?
00:18:01 So sure. I mean, look, the three reasons why it dropped. One is, as I mentioned, seasonal
00:18:09 factors, which we discussed. The second is that our staples portfolio in food business
00:18:16 is about 40% plus. This quarter it was 45%, where all prices, whether it was rice, it
00:18:22 was wheat, it was pulses, it was partially sugar, they all went up, which is a pretty
00:18:30 significant – they went up anywhere between 3% to 7% in the quarter, which had an impact
00:18:36 on the profitability. So if I were to split this further, the foods business, it dropped
00:18:42 by about 4.5%, of which 1% happened because of the increased ad spend. We took Manjusring
00:18:52 Dhoni as the grand ambassador. So that cost up about 29 crores that we incurred, which
00:18:57 was good, 20 crores plus that was the additional expenditure. We had about 37 crores on account
00:19:03 of the seasonal impact that we had on Nutrella and the biscuits business. And the foods business
00:19:09 had an additional 70 crores, which went down primarily on account of the food inflation.
00:19:15 So this at best is a temporary blip. And my sense is that overall, we should be able to
00:19:20 get back in this quarter.
00:19:21 Sure. Mr. Asana, since you mentioned it a second time and I had this question in mind,
00:19:25 is the biscuit business truly seasonal? I mean, to my mind, people who eat biscuits
00:19:30 just would eat them through the year.
00:19:31 No, so biscuit is not seasonal at all. It is just that during the winter months, there
00:19:36 is a typicality and especially in the category of the glucose and the milk biscuit category,
00:19:45 typically the demand tends to slightly sober down. So it's not dramatically down, it's
00:19:48 just marginally down. And we should be able to get it back in this quarter. So typically
00:19:53 there is no seasonality of consumption, but typically in winter month, it tends to go
00:19:57 down. Yes.
00:19:59 Okay. Mr. Asana, when I looking at the numbers, just wondering, would the quantum of ad spends
00:20:09 that you would have done in this quarter, would you need to keep up with that kind of
00:20:16 expenditure for maintaining sales? Or was this quarter a bit of an anomaly?
00:20:22 So slightly more in this quarter, but I'm expecting that our ad spends will remain same
00:20:28 to even higher. And we believe firmly behind, you know, A&M spend in the business to, you
00:20:36 know, for example, both Marquish and Sunridge are being repositioned with a new brand ambassador.
00:20:44 The business of NutraCeuticals through the digital and on the e-com play we are advertising.
00:20:51 Likewise, we had new campaigns for Chyawanprash, Honey and Spices that is going both to general
00:20:57 entertainment channels as well as to the news channels. So yes, our ad spend is going to
00:21:02 be there and it is not just a purpose, it's not just for the sake of building, just increasing
00:21:06 the sales, but also to appeal to, you know, the consumers that it's a new orientation,
00:21:13 change packing, you know, better option that is being provided. So we believe it is important
00:21:19 and we will continue with that. I mean, I'm not expecting any significant drop in this,
00:21:23 but we probably will increase that.
00:21:26 The other thing is around the whole nutrition health aspect that you kind of are at the
00:21:32 forefront of. There is a lot of homegrown brands come up, some of them acquired by your
00:21:38 peers. I think Tata Consumer acquired Organic India as well. Is competition stiffening there
00:21:44 and could that actually hurt both sales and margins? I know you would be confident about
00:21:50 your products, but usually higher competition does lead to, if not anything else, then higher
00:21:55 ad spends for visibility and more costs on distribution, etc. I'm just trying to understand
00:22:00 if you believe that market share losses or higher costs could happen as a result of both
00:22:05 of these.
00:22:06 No, definitely. You know, clearly we are very cognizant of the competition, both from the
00:22:12 larger peers that we have, as well as the smaller companies, startups, which are, you
00:22:18 know, sort of bringing their own competition. And they're both creative and we are very
00:22:22 respectful of what they do. The question is that, you know, where do we position ourselves?
00:22:28 So on the platform of health, nutrition, wellness and yoga, we are pretty much right up there.
00:22:34 And so as a right to win, if I were to look at one company which should be right on top,
00:22:40 it's Patanjali. And that position we are pretty confident about. So we are aware, we are,
00:22:46 you know, sort of fully cognizant of the competition and we are pretty confident of our own strategy
00:22:52 that the market will be able to not only absorb all the new sort of players, but we will continue
00:22:57 to grow and develop as per the plan.
00:23:00 Absolutely. You know, just one quick word, Mr. Asana, on your palm oil plantation, you
00:23:08 mentioned that edible oil has started working for you. Where do you see that trajectory
00:23:13 going because you've invested in a pipeline in terms of these palm oil plantations? Give
00:23:19 us some sense on that.
00:23:21 So we in this quarter, we had four and a half thousand hectares that was planted afresh.
00:23:26 This momentum, as I mentioned to the investors in the morning, in the commentary that we
00:23:33 will, we are planning to do 25,000 hectares next year. So that's picking a lot of momentum.
00:23:38 The other positive, you know, the profile of our plantation is also constantly improving.
00:23:45 So now nearly 30% of the trees that we have planted are between zero to three years, which
00:23:51 means they're fairly young plants. And we will keep getting them on stream, which means
00:23:56 they will start fruiting from the year after next year. And we're expecting that will add
00:24:04 immediately to the bottom line because that business is almost, you know, it's like an
00:24:09 annuity business that works for us. So we are pretty confident that, you know, the oil
00:24:14 palm plantation has committed. We will do our half million hectares. We will, you know,
00:24:19 start to sort of getting, gaining the benefits from '25, '26 onwards. And thereafter, it
00:24:25 will continue to pick up momentum. So it's a pretty good business to be in. We are going
00:24:30 through the hard work of sort of putting all this together. And then the benefit will like
00:24:36 to over next 25 years.
00:24:37 Absolutely. So that, that's, yeah, which is why we wanted to wrap this conversation on
00:24:41 that note. Thank you so much for that, Mr. Asthana. So seasonal pressures have had an
00:24:46 impact on this quarter. But I think the forward looking story with Patanjali Foods is definitely
00:24:52 their palm oil plantations in a fairly high margin business. Quick word with Deepan before
00:24:58 you let you, we let you go. Deepan, you know, your outlook for Monday and I want to get
00:25:03 your take on the FMCG space as well. It's a bit of a curate's egg this time round. ITC,
00:25:09 of course, under pressure with British tobacco news. But overall, do you think an upswing
00:25:14 is likely here if there is a bet on consumption improving?
00:25:18 Not really, I think, you know, FMCG per se has been disappointing right from HUL to ITC,
00:25:26 even Nestle numbers I thought were pretty okay. And the second, the segment as a whole
00:25:30 now is growing at mid to slightly high single digit, with greater risk of the growth rates
00:25:36 going to below single digit. And a lot of the profit growth has come in this quarter
00:25:41 and last quarter because of lower raw material prices and expanding margins. And I don't
00:25:46 think that is sustainable going forward. A growth company cannot just keep on increasing
00:25:51 profits to lower costs. At some point of time, the top line has to grow, which has not been
00:25:55 the case for FMCG stocks. Maybe a lot of the categories have reached maturity. So from
00:26:00 a consumption point of view, now investors need to move away from FMCG to some of the
00:26:05 other, I would say, so-called sunrise sectors like entertainment, travel, tourism, hospitality,
00:26:12 medical care. You know, these are the segments where we are seeing more traction. And of
00:26:17 course, those segments also will have their cycles. But by and large, over a long period
00:26:22 of time, 5-10 years or so, they could offer good returns. So I'm very positive on consumption
00:26:27 stocks. And at corrections, these are great stories to buy. Especially retail also looks
00:26:32 quite interesting. I know Trent came with a good set of numbers. But for all the other
00:26:36 retail companies also, I think after two, three tough quarters, could see a turnaround
00:26:41 around next year also.
00:26:43 Okay. Dipan, you've stuck your neck out and called the view that you have. Let's see how
00:26:51 it shapes up. But all the best with your investments. And thank you so much for speaking to us and
00:26:55 giving us your thoughts. That's Dipan Mehta with his thoughts. Gaurav Bisa, just very
00:27:04 quickly, we haven't been able to take your stock ideas. Could you share them with us?
00:27:07 30 minutes left to trade.
00:27:10 The first recommendation we buy on Bharat Forge, if you look at the charts overall,
00:27:14 we have seen a very strong uptrend coming in. There's a swing high break out on daily
00:27:18 charts, which will be confirmed on a close about 1290 today. And the stock has seen fairly
00:27:24 decent volumes as well. So in all likelihood, we may see some more uptrends going in. Auto
00:27:28 space overall, auto index overall has been outperforming. That can also help. So I would
00:27:33 recommend buying Bharat Forge at these levels. One can keep a stop loss of around 1280 and
00:27:39 play for targets of 1360, 1365. Second would be a sell call on SBL Life Insurance. We have
00:27:45 seen last three occasions SBL Life on weekly charts have come around 1490 and witnessed
00:27:52 very strong corrections sort of coming in. And there is follow through selling coming
00:27:56 in SBL Life in the current junctions. So keeping a stop loss of 1490, one can sell SBL Life
00:28:03 for target price of 1350.
00:28:06 Okay. Well, Gaurab Biswa, stay on. Much more to talk about before we slip into a short
00:28:12 break. Let's look at the LIC stock. Now, remember, that was trading with cuts of about two and
00:28:17 a half percent, actually was down even lower maybe, but also hit the record highs earlier
00:28:22 on. We spoke to LIC's chairman. In fact, my colleague Sajid spoke to LIC's chairman Siddharth
00:28:27 Mohanty on whether the company can sustain the 20% VNB margins going ahead. Listen into
00:28:32 what he had to say.
00:28:33 At the beginning, when we go for listing, we told non-pair share will be at least 15%
00:28:43 in AP. And we are almost there. We have crossed 14% and if you see recent result also, we
00:28:50 will definitely and by March it will be much more. It will be much more than 15%. My sense
00:28:55 is it will be much more. So definitely that will give a better margin.
00:28:59 Thank you.
00:29:09 Thank you.
00:29:32 Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you.
00:30:00 Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you.
00:30:28 Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you.
00:30:56 Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you.
00:31:23 Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you.
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00:33:23 - The story of this afternoon is the Bank Nifty.
00:33:26 Please pull up the intraday chart
00:33:27 and look at what's happening there.
00:33:28 That index now about one and a half percent up
00:33:33 and having a great day.
00:33:34 Agam is standing by on the F&O side of things.
00:33:37 Is that trend sort of being reflected there as well, Agam?
00:33:40 - Yeah, certainly.
00:33:41 So what's really happened as far as the Bank Nifty's concerned
00:33:44 is about a short covering.
00:33:45 And I'll come to that in just a moment.
00:33:48 Before that, let's address what's happening
00:33:50 with the key benchmark.
00:33:51 So the Nifty has advanced by around 0.3%
00:33:55 and we're seeing unwinding of positions.
00:33:57 So we are seeing a bout of short covering, so to speak.
00:34:01 Do remember that Nifty has come off
00:34:03 from levels of around 22,000.
00:34:04 So a lot of your older shorts are being covered
00:34:07 at the moment as we close into the week.
00:34:09 Speaking of the Bank Nifty,
00:34:11 remember it had a very, very sharp fall yesterday
00:34:15 from its intraday highs.
00:34:17 And in fact, it lost by as much as 1.8% yesterday.
00:34:22 Now today we are seeing a little bit of a recovery
00:34:23 through that.
00:34:24 And as indicated by the decline in open interest,
00:34:27 we are seeing short covering in the Bank Nifty too.
00:34:30 What about the options market?
00:34:32 Let's pull that up.
00:34:33 And we have seen not too much traction
00:34:36 as far as options go.
00:34:38 Well, it's again, the start of the trading week
00:34:41 and we will have options, weekly options expiries
00:34:44 towards Wednesday, Thursday for the Bank Nifty
00:34:47 and the Nifty respectively.
00:34:48 But as far as the range based on Nifty goes,
00:34:51 we're still looking at a 500 point range
00:34:53 between 22,000 on the higher end
00:34:56 and 21,500 on the lower end.
00:34:58 Well, marked by maximum open interest
00:35:01 in those respective calls and puts.
00:35:04 Talk about stocks.
00:35:06 And at the moment, we will start seeing
00:35:08 a lot more traction in PFC.
00:35:10 It's down by around 8.5%.
00:35:12 I reckon this stock will be on everyone's mind
00:35:14 because of the stupendous run it has had
00:35:17 through the course of the last 12 months.
00:35:19 And I reckon that based on that,
00:35:21 we are now seeing some fresh shorts added
00:35:23 into the system as well.
00:35:25 Besides that, of course, we are looking at longs
00:35:27 in, if we could just go back to the open interest gainers.
00:35:32 Yeah, so we are seeing longs in Sun Pharma
00:35:34 and Z Entertainment.
00:35:35 Z Entertainment is another curious one
00:35:37 because we're seeing a little bit of a reversal
00:35:39 of trends here.
00:35:40 And now let's talk about those stocks
00:35:42 which are seeing unwinding in open interest.
00:35:44 Let's pull that list up as well
00:35:46 and see where that has been.
00:35:47 Short covering for UBL, of course, reacting to earnings.
00:35:51 Cummins India, as well as Lupin.
00:35:53 And Biocon and Hindalco showing a bout of weakness here
00:35:57 where we are seeing some of our longs unwinding
00:35:59 from earlier sessions.
00:36:01 That said, well, I reckon that we are slotted
00:36:05 for a little bit of consolidation as we move into the week.
00:36:08 Do remember that that's also the final week
00:36:11 when it comes to this earnings season.
00:36:13 And that's something I'm sure a lot of us
00:36:15 will also look forward to do, to be honest.
00:36:17 But it could also perhaps induce
00:36:19 a little bit more volatility,
00:36:21 considering some of your weaker earnings
00:36:23 also tend to come through in the last leg of that.
00:36:26 So we'll be watching out for that too.
00:36:28 - Yeah, well, that's a fair assumption too.
00:36:30 Thanks a lot for that, Agam,
00:36:31 and some interesting names out there,
00:36:33 including the likes of Cummins, et cetera,
00:36:35 which have, you know, one came out with numbers
00:36:39 which were very strong and did well then.
00:36:41 And today in an otherwise sideways market,
00:36:44 Cummins has actually held out as well.
00:36:47 Hemang Jani Johnson on the fundamentals with his thoughts.
00:36:50 Hemang, good having you.
00:36:51 Thanks so much for joining in.
00:36:53 What did you make, Hemang, of some of the numbers
00:36:56 that have come out from the CapGood space, for example?
00:36:59 Cummins surprisingly did well,
00:37:01 or CapGood/Machinery.
00:37:04 We've seen ABB and Honeywell Automation
00:37:06 also delivered fairly decent numbers
00:37:08 in ABB's case, maybe slightly lower than estimates,
00:37:11 but YOY numbers didn't look all that bad.
00:37:13 How do you like, or what do you think about some of these?
00:37:17 - So, Neeraj, good afternoon.
00:37:21 Thank you so much for having me.
00:37:23 This is my, I think, first interaction with LATV Profit.
00:37:27 - It's our pleasure, Hemang. - Great, great.
00:37:28 - It's our pleasure.
00:37:30 - Yeah, yeah.
00:37:31 So, Neeraj, I think CapGoods as a space,
00:37:36 you know, that's been a big theme.
00:37:38 And when we look at the numbers,
00:37:40 you know, LAT numbers were not so great,
00:37:44 a bit of a pressure on the margin.
00:37:47 But when you look at the other companies,
00:37:50 particularly, you know, Cummins was an outlier,
00:37:53 and both the performance as well as the commentary
00:37:57 was looking much, much better.
00:37:59 So we are seeing, you know, incremental impact
00:38:02 in terms of price moves.
00:38:03 Also, ABB Siemens were reasonably decent set of numbers.
00:38:08 Thermex was also reasonably good.
00:38:09 So I think the fact of the matter is that as a theme,
00:38:14 you know, people would still like it,
00:38:16 the order book-wise, the visibility-wise,
00:38:18 things are looking better.
00:38:19 If I have to pick something,
00:38:21 I would surely go with L&T and to some extent Thermex,
00:38:26 because that is where we think that a large part
00:38:29 of the growth will, you know, come in terms of,
00:38:32 you know, the segments which are doing well.
00:38:34 - Okay, fair call.
00:38:38 The other aspect is, of course, viewers,
00:38:40 we'll talk about what's happening to PSUs in a moment,
00:38:43 but I think PSU banks in particular,
00:38:47 which we're not gonna talk about,
00:38:50 have had a slightly indifferent day today,
00:38:52 but has moved back into the green.
00:38:55 Hemang, if you had not invested into PSU banks thus far,
00:39:00 would you go out and make a call now?
00:39:02 Some of them are still available
00:39:04 at maybe not so high a valuation still.
00:39:06 - I think, Neeraj, the entire PSU banking space,
00:39:13 just to give you the perspective,
00:39:16 last year, the PSU banks, you know,
00:39:19 and the index is up almost about 72%.
00:39:22 The bank Nifty is up only 10%.
00:39:25 And, you know, so, and Nifty is up almost about 25, 26%.
00:39:30 So there's a massive outperformance.
00:39:32 People who have missed out,
00:39:34 my feel is that looking at the current valuations,
00:39:38 looking at the growth, you know,
00:39:40 things are not out of whack as yet.
00:39:43 So maybe a BOB, Canra Bank, you know,
00:39:46 these are the names that one can surely look to buy.
00:39:49 And it would be good to kind of look at buying
00:39:53 on a bad day where you have a small correction
00:39:56 here and there.
00:39:57 But still I do see a case for another,
00:40:01 maybe 20, 25% kind of an upside over the next one year
00:40:04 for some of the PSU banks.
00:40:07 - Hemang, hi, good afternoon.
00:40:08 Tamanna here.
00:40:09 Pleasure to speak with you on NDTV Profit.
00:40:12 You know, we spoke a bit about PSU banks,
00:40:15 but let's talk about the public sector companies overall
00:40:19 and the kind of drubbing they're getting today.
00:40:22 To be fair, PFC and REC are leading the charge.
00:40:25 Were you seeing this as an outcome of numbers
00:40:29 or profit booking?
00:40:31 How do you look at the crack that we're seeing?
00:40:33 - Oh, Tamanna, good afternoon.
00:40:37 I think it's fair to expect some degree of correction
00:40:42 when you have seen such a massive up move
00:40:44 across the PSU, namely defense, railways,
00:40:47 and cab goods, mining, whole host of companies, right?
00:40:51 So PFC, REC, I think, you know,
00:40:54 maybe numbers could be a trigger,
00:40:57 but I think at some point stocks will go through
00:41:00 their own sort of consolidation and corrective phase.
00:41:03 Our feel is that as a team, it will continue to do well.
00:41:08 Still PFC, REC are not looking too expensive
00:41:13 on dividend yield parameters, on price to book parameters,
00:41:17 and growth visibility all combined.
00:41:20 If you see a deeper correction,
00:41:22 like what we are seeing today,
00:41:23 I think one should surely look to accumulate.
00:41:26 Maybe, you know, it's a matter of a few days or weeks
00:41:29 before you could see the revival again.
00:41:32 - I want to take that question to Gaurav
00:41:36 on a PFC and REC.
00:41:38 At some point, do you see an opportunity to come in here,
00:41:42 Gaurav, or is the pain going to be deeper?
00:41:45 - Well, PFC and REC have been one of the forefront
00:41:50 of this PSU cycle, and they've seen a tremendous upside.
00:41:54 We, in fact, we gave it 140
00:41:56 in addition to the co-production,
00:41:58 and we corroded 2.5X, something around those levels.
00:42:02 And from there also, we have seen very strong upsides
00:42:05 sort of coming in both REC and PFC.
00:42:08 It is just that we have seen a 10% correction today, right?
00:42:11 And before that, we have seen the stocks becoming 3X, 4X,
00:42:15 even more than that.
00:42:16 So I think one is having more panic
00:42:21 than what one should ideally have.
00:42:23 I wouldn't recommend buying here
00:42:24 because the correction is still not very steep.
00:42:26 If something has moved 300%, 400%, 500%,
00:42:29 a 10% correction, I think it's very miniscule for me.
00:42:34 I would rather wait for some more declines to add.
00:42:37 For trader perspective, I mean,
00:42:38 any move towards 370 is what one can look at
00:42:41 as a good support at those days.
00:42:43 So if it corrects to say 370, even 380,
00:42:45 I would keep a 10, 15 point stop loss
00:42:47 and play for an upside,
00:42:48 but at the current juncture, I would avoid it.
00:42:50 - Okay, so, yeah, and you know,
00:42:55 strangely, I mean, there are some people
00:42:56 who are still calling about how probably
00:42:58 these are the stocks wherein the quantum of growth
00:43:01 looks so strong that they might still be a good place,
00:43:04 power, essentially, but today PFC, SJVN, NHPC, REC,
00:43:09 all of them have corrected in trade.
00:43:11 You know, frankly, we don't get into too many details,
00:43:14 but if we just look at some of the PSUs
00:43:17 and just compare the price to book
00:43:20 or price to earning multiples currently
00:43:23 versus 10-year averages,
00:43:24 it gives you a sense of how stretched the move
00:43:27 in some cases was, nevermind the growth rates,
00:43:30 and therefore, maybe just maybe sometimes
00:43:32 the market just pays cognizance to that.
00:43:35 RVNL is the other one, which has corrected
00:43:38 quite a bit today, 7.5% higher.
00:43:40 There's been a lot of skepticism, Hemang,
00:43:42 and then I'll come to Gaurav as well on this.
00:43:44 Around the swift run-up in the rail stocks
00:43:49 and how one should be careful.
00:43:51 Now it moves from railway wagon manufacturers
00:43:55 to financiers to everything else.
00:43:57 Are you a bull out here or are you a skeptic?
00:44:03 - So, Neeraj, when we try to look at these companies
00:44:09 purely from a fundamental perspective,
00:44:11 things would not look good
00:44:13 because of the run-up valuations
00:44:15 and historically how the PSU as a company
00:44:19 or sector were regarded as.
00:44:21 But if you're a momentum player
00:44:24 and if you are looking to participate for next,
00:44:27 let's say about three months or six months,
00:44:30 then I would surely think that this is a pocket
00:44:33 that you need to be in regardless of the stretch valuation.
00:44:36 So within defense name, something like a BML or HAL,
00:44:42 Haran Dynamics, these are the companies
00:44:44 where we think that there is some more steam left
00:44:48 and you should look at these more as a momentum play
00:44:51 or technical opportunities and not necessarily
00:44:54 as a investment bet for next two to three years.
00:44:58 - Okay, Gaurav, like I said,
00:45:01 I would like to your views on these as well.
00:45:03 What about some of the railway stocks?
00:45:05 How do they look on the charts?
00:45:06 I doubt any of them are majorly in the derivative side
00:45:09 any which ways, but could you explain?
00:45:12 - Apart from IRCTC, I don't,
00:45:15 Lenny's stock being part of the F&O business,
00:45:18 but overall if you see the stocks
00:45:21 that are always on the radar,
00:45:23 likes of RVNL, IRFC, Archon,
00:45:27 we had a company then long time back
00:45:29 and we were riding it and we're still riding.
00:45:32 We have a good part of that chunk for our clients,
00:45:35 but we have not exited everything.
00:45:37 So the story is good.
00:45:39 The trend is good, the stock themselves are good,
00:45:42 but even if somebody has a horizon of two years,
00:45:45 three years, four years, that's a good team to be in.
00:45:49 However, when you are bullish on one particular team,
00:45:52 that does not mean you buy a stock at any level
00:45:56 just because we have a two year, three year,
00:45:57 five year perspective.
00:45:59 So on that premise, I'll say, I'll wait for a correction.
00:46:01 These have moved up 4% four times, five times.
00:46:04 So there has been 500%, 600% upside.
00:46:08 Like I said, sometime back at 10%, 15% correction
00:46:11 is just too small for me to take a bet
00:46:13 because on monthly charts, it is a vertical rise.
00:46:17 And when there's a vertical rally,
00:46:18 getting supports becomes very difficult
00:46:20 because every month these stocks have added 10%,
00:46:23 15%, 20%.
00:46:24 Every month has been a positive close.
00:46:26 So how do you arrive at supports then?
00:46:28 So for me, buying is a function of the expected targets
00:46:32 and the probable stop losses.
00:46:34 If I don't find a stop loss in sight,
00:46:36 I would rather skip it
00:46:36 because there are always going to be opportunities.
00:46:39 I don't want to chase something with nothing in sight.
00:46:44 - Right, just two sets of numbers that are out right now,
00:46:48 EasyTrip Planners and Hutko.
00:46:51 Let me talk about EasyTrip first.
00:46:53 On the face of it, maybe a so-so quarter
00:46:57 because your margins are down about 261 bps.
00:47:01 We'll pull up EasyTrip and see what's happening there.
00:47:03 So yeah, that stock taking a bit of a tumble
00:47:06 about 4% down.
00:47:08 Revenues are up about 18%.
00:47:10 EBITDA is also up.
00:47:12 Net profits are up about 10%,
00:47:14 but margins have been squeezed.
00:47:16 Hutko on the other hand,
00:47:18 we just have the first cut of the numbers,
00:47:21 but that seems good.
00:47:22 And you're seeing that stock beginning to perform.
00:47:24 We'll pull up the intraday as well.
00:47:26 The first number we've got is a total income up 17, 18%
00:47:30 nearly and a net profit, which has pretty much doubled.
00:47:34 So Hutko seeing a sharp spike over there.
00:47:38 Gaurav, I'll come to you.
00:47:39 Any of these two that you track?
00:47:40 - Well, I do track,
00:47:43 but just like other places also we've seen,
00:47:46 we had a very strong rise.
00:47:48 The breakouts are at much lower levels.
00:47:51 At the current juncture,
00:47:52 I don't see a merit to buy these names.
00:47:54 There's nothing wrong with the business models
00:47:56 or the chart structure,
00:47:57 but they have had a very, very strong upside.
00:48:00 So we are avoiding buying these names at this point in time.
00:48:04 - Himam, I want to come to you on the whole play,
00:48:08 a bit of which we've been seeing end of last year,
00:48:11 also from the budget,
00:48:13 and probably you'll see that rhetoric increase
00:48:16 ahead of elections, et cetera,
00:48:18 which is big run-ups on government schemes.
00:48:21 Now, whether it's a Hutko because of a housing for all push
00:48:25 or whether it's the whole set of,
00:48:28 solar energy powered stocks,
00:48:31 are these long lasting stories that you would buy into?
00:48:34 - Well, Tamanna, I think,
00:48:39 there is surely a lot of action,
00:48:42 a lot of interest appetite for the themes that you mentioned,
00:48:47 be it renewable energy, green energy,
00:48:51 some of the companies like Hutko, defense names, et cetera.
00:48:54 So I think it would be good to have some allocation,
00:48:57 not withstanding the fact that the stocks have run up
00:49:00 or the theme is now pretty much known,
00:49:03 because when it comes to certain themes,
00:49:05 it can really surprise you in terms of how much earnings
00:49:09 and how much growth it can deliver over a period of time.
00:49:12 So surely I think renewable energy is looking like a space
00:49:16 where one would really want to have some allocation.
00:49:19 Hutko, because the run-up is so strong
00:49:21 and I don't see any great differentiator
00:49:23 in terms of what Hutko would be able to offer
00:49:26 vis-a-vis some of the other housing finance companies.
00:49:28 So I would not go with it,
00:49:29 but within the PSU broader category,
00:49:33 you will always find some exciting stories
00:49:35 and one would surely want to invest,
00:49:38 maybe not necessarily at one go, but maybe two parts.
00:49:41 - All right, let's talk about
00:49:45 another very interesting company.
00:49:47 Yes, in the broad PSU basket,
00:49:49 but LIC is a story of its own.
00:49:53 Their numbers this quarter have given hope.
00:49:57 Net profits up 49% and overall,
00:50:01 it has been a well-performing stock.
00:50:03 We spoke to the management today
00:50:04 and we'll play out a clip of that as well.
00:50:06 But Hemang, I was keen to understand your thoughts on LIC,
00:50:09 because it has been a long struggle for this stock price
00:50:12 to come to its IPO number.
00:50:15 And now it does seem to be an upward trajectory,
00:50:18 but would you have faith in it
00:50:20 considering the relatively less float available?
00:50:26 - So Tamanna, what a remarkable turnaround
00:50:29 that we've seen for LIC in the last two, three months
00:50:32 after the debacle that it had post IPO.
00:50:35 And I do think that since the theme
00:50:39 is catching up so very well,
00:50:41 this looks like a value play,
00:50:43 even when it is already done up quite a lot,
00:50:46 because on many parameters,
00:50:47 when you look at the company,
00:50:49 particularly price to book or enterprise value to book
00:50:54 or embedded book value, as we call it,
00:50:57 it is looking quite cheap at about 1.3, 1.4 times
00:51:02 embedded book and the numbers were reasonably good.
00:51:05 And I do think that this is one company
00:51:08 where you will see a fair amount of growth
00:51:11 in terms of annual premium collections
00:51:14 and most of the other parameters.
00:51:17 So I would surely like to go for it,
00:51:19 maybe because since prime minister spoke about this name
00:51:23 and the way it has run up,
00:51:24 you might see a little bit of volatility here and there,
00:51:27 but it surely merits to be part of the core portfolio.
00:51:31 - This price Gaurav,
00:51:33 would you have it in your core portfolio at 1,081?
00:51:36 - See, I would start buying it for the simple reason
00:51:42 that whenever you have seen the IPO prices being crossed
00:51:46 and sustained, it generally leads to swing high breakouts,
00:51:48 generally leads to start of the national trend.
00:51:50 So in that perspective,
00:51:52 I do believe that there can be some more upswing
00:51:54 that can be seen.
00:51:55 However, if I wanted to buy say 100 shares,
00:51:58 I would not buy 100 shares right away.
00:52:00 I would wait for declines to add more,
00:52:02 but overall structure remains positive.
00:52:04 So I would start buying,
00:52:06 I would start creating a portfolio,
00:52:08 but not by the entire quantity.
00:52:09 - There's some numbers on your screen, GMDC,
00:52:13 and the numbers leave a bit to be desired.
00:52:15 I think there's a second quarter in over in GMDC,
00:52:17 the reported numbers haven't looked that great.
00:52:19 Remember, a stock has an optional opportunity
00:52:23 of rare earths at some point of time in the next two years.
00:52:26 The numbers going ahead will look very strong,
00:52:29 but based on projections done
00:52:32 and the mines coming on stream,
00:52:34 but two quarters or three quarters in a row now,
00:52:36 the numbers are flatter to deceive
00:52:38 and the stock is duly correcting about 11% lower.
00:52:41 Before I take the closing strategy from Gaurav,
00:52:44 Hemant, do you particularly look at GMDC fundamentally?
00:52:49 Because it's a sharp miss, 56% down tick in PAT
00:52:53 for a stock which may not be expensive,
00:52:55 but has rallied quite a bit of late.
00:52:57 - Neeraj, I believe they are making TDA
00:53:02 and some of the chemicals.
00:53:04 And this time around, one of their product,
00:53:09 there was a plan shut down
00:53:11 in which kind of would have some effect.
00:53:13 Also the TDA pricing has not been that great.
00:53:17 So if I have to pick something from a state PSU
00:53:20 kind of a category,
00:53:22 I would surely go with a Gujarat state Petronet
00:53:25 where we see a much better story
00:53:27 in terms of LNG and the holding company
00:53:30 or something like a GNFC
00:53:33 where the pricing is to their advantage
00:53:36 and we do see your value over there.
00:53:40 GMDC is something that I would avoid at this point.
00:53:43 - Okay, avoid at this point, a fair call.
00:53:46 Gaurav Biswa, before we let you go,
00:53:51 your closing strategies.
00:53:53 - See, as far as this is a concern,
00:53:56 as I said, I'm not too keen in
00:53:59 at the buying or selling this point in time.
00:54:01 However, if somebody wants to look for a stock,
00:54:03 I think ACC is one that would be on the radar.
00:54:05 It's confirmed a bullish trend
00:54:07 or you can also look at it as a bullish flag
00:54:09 but then break out on the daily charts
00:54:11 when you keep a stock of 2580
00:54:13 play for target of 2700.
00:54:16 - Okay, 4.5% higher for ACC
00:54:19 and that's not a bad spot.
00:54:20 Gaurav Biswa, we'll let you go on that note.
00:54:22 Thanks so much for taking the time out and being with us.
00:54:24 Hemant, can we wrap this conversation
00:54:26 by talking about cement
00:54:28 because almost every single name
00:54:32 has come out with very reasonably strong numbers,
00:54:36 if not very strong numbers.
00:54:37 So is it a pocket that is worth looking at even now?
00:54:41 And what within that?
00:54:44 - I do think that by and large,
00:54:47 the numbers have been good.
00:54:48 And typically, in a period where you see the elections
00:54:52 and generally infra is a theme catching up well,
00:54:55 cement tends to do well.
00:54:57 The good part about the sector
00:54:58 is that the crude prices have not shot up.
00:55:01 So there is no undue pressure on the margins per se.
00:55:05 In terms of the stocks that one would really look at,
00:55:08 the large cap, clearly there are two names,
00:55:10 Ultratech and Ambuja Cement
00:55:12 are the ones that we like.
00:55:15 Apart from that, I would be comfortable buying
00:55:18 into a JK Lakshmi or Dalmia Cement.
00:55:23 These are the two names that we prefer
00:55:25 in terms of the mid cap companies.
00:55:27 Surely, it would make sense to have some allocation
00:55:30 for the sector at this point of time.
00:55:32 - Hemant, just one last point from you
00:55:36 on the strategy going into next week
00:55:39 and what you would do with banks
00:55:42 because Bank Nifty at least at close
00:55:44 has shown great signs of life
00:55:46 and you've seen a drubbing
00:55:48 in some of these stocks over the time.
00:55:49 Anything you like in private banks
00:55:51 or would you stay safe with the PSU Bank back?
00:55:54 - I do think that one should have decent investment
00:56:00 into private banks, be it ICICI or Exxon Bank
00:56:04 because you can't really all the time play momentum game.
00:56:09 Investment is not about just buying something
00:56:12 which is performing, but if you look at the numbers,
00:56:14 yes, there was a bit of a disappointment
00:56:16 when it comes to HDFC Bank or certain banks
00:56:19 did not deliver on NIM's front,
00:56:20 but in terms of the earnings growth
00:56:24 or the kind of balance sheets that they have,
00:56:27 they do look quite attractive to us.
00:56:30 So surely, because they have not performed so much
00:56:34 in terms of valuation, they're far more attractive.
00:56:37 I would surely go with ICICI Bank and Exxon Bank.
00:56:41 - All right, so ICICI Bank, Exxon Bank
00:56:44 is something that Hemang likes.
00:56:46 Hemang, thank you for joining us.
00:56:47 Great to have you on NDTV Profit
00:56:48 and hope to see you back again soon.
00:56:50 And ICICI Bank and Exxon Bank
00:56:53 have actually not been having such a bad day at all.
00:56:55 Let's look at how markets are closing down
00:56:57 just a couple of minutes to go
00:56:59 and Nifty has remained true to its path through the day.
00:57:04 I would say has recovered in fact
00:57:06 from some of the lows.
00:57:08 So not a very scintillating close this Friday,
00:57:10 but nevertheless, we look like we're closing in the green,
00:57:13 which was looking difficult at some point of the day.
00:57:15 But really the star this afternoon is the bank Nifty
00:57:18 and looking set to close about a percent and a half up.
00:57:22 Let's pull up the advanced decline through the day
00:57:23 and look at what this day has looked like,
00:57:26 where you saw a dive mid-morning,
00:57:31 but you seem to be closing that gap,
00:57:34 at least to some extent narrowing that cap.
00:57:36 It's the broader indices which is showing you
00:57:39 or is reflecting in these advanced decline statistics
00:57:41 because while the Nifty and Sensex is doing okay,
00:57:44 the mid-cap and the small caps
00:57:45 have definitely been having a rough day.
00:57:48 A lot of them led by the public sector company pack.
00:57:52 And we'll pull up the top components
00:57:54 of the Nifty small cap 250 if we can,
00:57:57 the top losers and look at where the pain points
00:57:59 are over there.
00:58:00 I'm talking about the top losers though.
00:58:02 The top gainers are on your screen as well.
00:58:04 But you have seen and yes, no prizes for guessing.
00:58:08 PFC, REC both have done quite badly.
00:58:12 Now, were the numbers that disappointing is the question
00:58:15 or is this sort of a profit booking that we're seeing?
00:58:18 Ramco Cements also down about 8%.
00:58:21 If you look at AstraZeneca,
00:58:22 you'll probably see a sharp cut over there as well,
00:58:26 as we've seen with NHPC, GMDC numbers came out
00:58:29 just a short while ago, not looking very good.
00:58:32 Look at AstraZeneca down about 13%.
00:58:34 Let's see what Hatko is doing as well
00:58:36 before we go any further because Hatko numbers came out
00:58:39 and they were looking fairly decent.
00:58:41 The spike has come off, but they're about 2.5, 3% up.
00:58:44 But a quick look at your Nifty Heat map as well
00:58:48 while we're at it and what the broad market has looked like.
00:58:52 Grasim getting rewarded for a good set of numbers.
00:58:56 SBI having a superb day today.
00:58:59 Polar hospitals again because of numbers.
00:59:01 We talked a bit about private banks.
00:59:02 Look at access and ICICI at close
00:59:05 about one and a half to 2% up.
00:59:07 Pharma as well, apart from maybe a Pfizer,
00:59:11 which had bad numbers,
00:59:11 Pharma overall has been great
00:59:13 and Sun Pharma, Cipla showing that.
00:59:16 M&M and Bharti continue with the weakness.
00:59:18 ONGC has been in a bad spot through the day, in fact,
00:59:23 and that continues.
00:59:24 UPL as well has been looking like quite a poor show.
00:59:29 I want to just pull up the PSE index,
00:59:33 the Nifty PSE index to reflect where the culprit is.
00:59:36 If you're looking at what's happened
00:59:37 in the broader markets today,
00:59:39 it's the public sector stocks
00:59:40 and they're two and a half, nearly 3% down.
00:59:43 And if you pull up the components of the Nifty PSE,
00:59:45 you get a better idea of where the pain is.
00:59:48 So of course, your REC, et cetera, has been poor,
00:59:53 but even a power finance, PFC and Indian oil
00:59:57 and Engineers India, all of them, NBCC,
01:00:00 all of your gainers of the last few days
01:00:02 have seen quite a bit of pain.
01:00:05 So as we wrap up, what has been a tepid close to the week,
01:00:10 we look forward to a lot of action next week.
01:00:12 Your quarterly results will start winding down
01:00:15 and you'll see a market hunting for new triggers as well.
01:00:18 But for now, that's all the time we have.
01:00:20 From Neeraj, me and the entire team,
01:00:22 let's put the show together.
01:00:23 Thank you so much for watching.
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