MarketBuzz
1297: Marketbuzz Podcast With Hormaz Fatakia: Sensex, Nifty may gap-down lower; HDFC Bank, RIL react to results
Good morning and welcome to CNBC TV18's Market Bus Podcast. I am Optimus Patakia. Big news coming in overnight from the U.S. as President Joe Biden has decided to stand down from his reelection bid to the White House and has endorsed Vice President Kamala Harris instead. You know, in a letter released late on Sunday night, Indian Times Biden said that he's taking this step in the interest of his party and that the decision to choose Harris as Vice President four years ago was the best that he took. Now in response, Republican nominee and former President Donald Trump said that Biden was not fit to serve as president to begin with and that the citizens will suffer the consequences of his presidency. The U.S. stock futures currently are having a muted reaction to Biden's decision but the U.S. dollar has seen a slight decline. Now back home, it's a big week for our own markets, for market participants, for the industry and of course, for taxpayers like you and me, has finance minister Nirmala Sitaraman gears up to table the union budget tomorrow at 11 a.m. It goes without saying that we at CNBC TV18 will bring you the best coverage of the union budget with the sharpest analysis and insights from industry veterans, tax experts as well as market participants. But we have an entire day of trade to navigate before the budget is presented. So let's dive straight into that. Now a lot of the nifty movement today will depend upon how the two biggest nifty constituents, reliance industries and HDFC Bank will react to their quarterly results. While reliance industries reported good numbers on a year on your basis, HDFC Bank saw some deterioration in asset quality compared to the March quarter with stress emerging in the Agree portfolio. Now the bank has also said that the board has given approval to begin the IPO process of its subsidiary, HTB Financial Services. More details on both these index heavyweights on our website, CNBC TV18.com. Now the day will mostly belong to banking stocks as most of the nifty bank or the PSU bank index constituents will be reporting or will react to their results today. Kotak Mahidra banks or deposits decline slightly on a sequential basis though they are up on a year on your basis. Slippages too were higher while asset quality remained mostly unchanged from the March quarter. Lower provisions aided yes banks profit while asset quality here also remained unchanged from March. Now RBL bank saw its highest ever net interest margin but the management said that there is some incremental stress when it comes to its credit card business. The collection efficiency was also hampered for some parts of two months this quarter and the credit card business saw slippages of 400 crore during this June quarter is what the management said during the earnings call. So keep an eye out on RBL bank. Now PSU banks like IDPI bank, Indian overseas bank and UCO bank will also be reporting results today. Also keep an eye out on Vipro which has received multiple upgrades ahead of its results now which have ended up disappointing the street. For the second quarter the company is now expecting revenue growth in constant currency terms to be between minus 1% to plus 1%. The constant currency revenue for Vipro fell for the sixth straight quarter. Now in response the U.S. listed shares or ADRs of Vipro ended 11.5% lower on Friday. There are plenty and I mean plenty of earnings reactions today and these are just some of them. JSW Steel, Indian hotels, overall reality, JK cement, transformers and rectifiers, rosari biotech, ICICI lumbard. That is a very long list and I have just highlighted some of these names we'll keep an eye out on all of them. Along with PSU banks companies like Sine, DLM, Kofortz and Suzlon will also be reporting results today. For the nifty, well Friday's session resulted in some profit booking from higher levels and the 1% drop that it saw was the biggest since the 4th of June which is the day the looks of high election results were declared. The index though managed to defend 24/500 on the downside and also managed to salvage some weekly gains but it remains to be seen for how long this can sustain because the gift nifty is indicating yet another gap downstart of well over 100 points for our own markets. It does appear that the street wants to remain light on positions ahead of the budget presentation. broader markets will be the one to watch out for as they were the ones that saw greater pain on Friday. There are more concerns with regard to statements made by the RBI governor on household savings being deployed more and more into riskier assets while Sebi chairperson Madhupi Puri boots also cautioned on rising F&O volumes as well on Friday. Now these statements have resulted in varied reactions from the street and we'll be taking that discussion forward at 11.30am this morning so do tune in to CNBC TV18 to know what market experts make of this. Now that's all for today we wish you a happy trading day and of course for the sharpest budget coverage and market insights stay tuned to cnbctv18 and cnbctv18.com