MarketBuzz
1300: Marketbuzz Podcast With Hormaz Fatakia: Sensex, Nifty may open gap down; L&T, Axis Bank in focus
Good morning and welcome to CNBCTV18's Market Bus Podcast. I am Harmes Patakia. Well, if the gift NFT is anything to go by, it promises to be a day full of action for our own markets and the implied open is suggesting a 250-point down tick for our own markets at the start of trade today. And if that happens, the NFT may well open below levels of 24,200, thereby prompting a retest of the budget day panic low of 24,07,4 that we had seen just a couple of days earlier. Today is also the expiry for the NFT contracts, the monthly expiry and so that volatility will also be at play. Now until last Friday, the NFT was up over 800 points for the series, which over the last three sessions has been cut to 400 points and may see further gases in today's trading session. But the question remains is whether this dip will also see buying interest as has been the case in the last two sessions. The budget day low also saw a very swift recovery and yesterday to the NFT tested 24,300 on the downside and recovered slightly from those levels. But the issue here is that 24,500 which was a very important support for the NFT all through the July series has now become a resistance for the index. We tested 24,500 on the upside yesterday, but could not sustain above those levels. Now banks have been a pain point and a rescuer at the same time because had the NFT bank not recovered over 500 points from its own lows yesterday, the cuts on the NFT would have been a lot more. The HDFC bank, Axis bank and SBI were the top three contributors to the NFT downside yesterday and act to that some more pressure from Kotak Mahindra bank as well. However, all three of these names and actually all four of them recovered at least a percent each from the lows of the day prompting a recovery in the index. And since we spoke of Axis bank, there will be a reaction to its results that were reported after marketers yesterday. Now, although the results were ahead of the CNBC TV 18 poll, the internals do need some attention. The slippages were higher on a sequential basis. Asset quality saw some deterioration from March while the watch list also went up by 10%. Now, despite the benchmark indices facing selling pressure, the broader markets have been league of their own. The mid-cap index was up a percent, the small cap even better gaining nearly 2% yesterday and earnings reactions have continued and just has been the trend in the last quarter as well. Good earnings have been rewarded disproportionately, while the not so good earnings have been equally punished in a severe fashion. Now, we will keep an eye out on shrimp feed companies like Avanti Feeds, Waterbase, Apex Frozen Foods. All three of them in the last two trading sessions are up almost 25% and Kaveri Seed also built on to its budget day gains yesterday. We will see if all of these stocks see some bit of profit booking if the market does come under some bit of pressure today. Also, reacting to results will be LNT where execution during the quarter was impacted by heat waves and the general election. However, the execution was strong in the international business division. The management told CNBC TV 18 on the earnings call that they will make no change to their FY 25 guidance. The core business margin increased 20 basis points from last year to 7.6% while the management has guided for the full year figure of around 8.25%. SBI Live, JSPL, SONA, BLW, IEX, DCB, BANG, there are plenty of earnings reactions to watch out for and we will keep you updated with all of them. And some earnings to be reported today as well. There is a long list in this aspect as well as Techma Indra, DLF, Ashok, Leyland, Nestle, Canara, BANG, two Adani Group companies, Green Energy and Energy Solutions, Laura Slabs, Managar Gas, VST Industries and a lot of them will be reporting the results. So, keep an eye out on VST Industries as well because the board is mulling a bonus issue in today's meeting as well. The US markets had a very sharp sell off last night which is why we are seeing that kind of a reaction in the gift NFT. The S&P 500 fell over 2%. The NASDAQ fell almost 4% yesterday and this after Tesla's results were very underwhelming which took the stock down by 12% marking its worst single-day drop since 2020. Alphabet shares also plunged 5% after YouTube's revenue was below expectations. And on Q, all of the big tech stocks that were responsible for the search that you have seen in the US markets this year, all of them plunged anywhere between 5% to 7%. The Asian markets also bore the brunt of the sell off in the US markets yesterday and the gift NFT is still 250 points lower as we speak. And that's all for today. Stay safe because it's pouring out here in Mumbai. We'll bring you all the live market, economic and weather updates on CNBC TV18 and ncmbctv18.com India's budget headquarters. Thank you for tuning in.