MarketBuzz
1252: Marketbuzz Podcast With Hormaz Fatakia: What keeps Paytm, Indus Towers, Siemens in focus?
Good morning and welcome to CNBC TV18's Market Bus podcast with me, Hornes Fathakia. The much awaited MSCI Reechig has taken place overnight and there are plenty of interesting names added and removed from that list. I'll start with the Inclusions first. In the Star Wars PB fintech, NHPC among 13 stocks have been included in the MSCI India Index which is part of the MSCI Global Standards Index. Now, Noamma alternative and quantitative research expects passive FII inflow of up to 2.5 billion dollars in the Indian markets courtesy this Reechig. Now for specific stocks, PB fintech may see inflows of close to 300 million dollars while NHPC and in the Star Wars may see flows between 220 to 230 million dollars. On the flip side, PTM and Indra pressed gas or IGL have been removed from the India index and moved to the small cap index. Now, Noamma here is expecting outflows of up to 70 million dollars in PTM and 113 million dollars in IGL. Berger paints is the other exclusion from the MSCI India Index. Phoenix Mills, Bosch, Sundram finance are some of the other notable inclusions in the India Index and for the complete list, we have a story up on CNBC TV18.com so you can refer to the entire list there. In some earnings reported after market hours on Tuesday, Parthi et als India mobile business fed in line with expectations, revenue growth stood at 2% compared to Reliance geo 2.2% growth while EBITDA margins remain unchanged at 55.1%. The consolidated numbers are weak and they missed estimates due to the weakness in Atel Africa which has already reported numbers earlier. The African business struggled due to the devaluation of the Naira which is the official currency of Nigeria. The ARPO or average revenue per user saw an increase of only half a percent compared to the December quarter and was lower than expectations. On the flip side, three cement results were a lot better than expectations. It reported a marginal growth in its EBITDA per ton which unlike its peers was a surprise since most of its peer companies saw a contraction in their EBITDA per ton. Volumes were also higher than estimates while the decline in realizations was less than anticipated. All of this contributed to the beat in the top line while lower costs and higher operating leverage contributed to the EBITDA beat. Siemens India's 18% revenue growth for the quarter was led by Smart Infra, digital industries, mobility and the energy business. Volumes and continued productivity measures also contributed to the profit beat. Now the new order figure on an absolute basis would look lower by 83% from last year but that is of course due to the large 25,000 crore order that it won in the base quarter. However, even after excluding that order as a one-off, the new order wins for Siemens India are down 9% year on year and the company attributed that to the deferment of some large orders and a slowdown in ordering of industrial automation products. The board has also approved the demerger of the energy business where shareholders will get one share of the new business for every one share held. There will be plenty of result reactions today but the one I want to highlight is Idea Forge where the company reported a profit this quarter compared to a loss last year while the revenue also tripled on a year on your basis. However, the concerning factor here is that the company has not won any major order recently and that may worry the street. The stock on Monday fell below its IPO price of 672. Remember, Idea Forge was one of the most successful listings of 2023. It doubled on its listing day to hit a high of well over 1300 rupees. Apollo tires, Obero Realty, Sagar, Siemens, Repco, Home Finance, Patanjali Foods are some of the other result reactions today. Remember, Patanjali Foods will join us live on CNBC TV 18 at 10.45 AM to discuss the road ahead for the company so do tune in to that conversation. There are plenty of broader market names reporting results today and some of them include stocks with a very high retail interest. Those include the likes of IEX, PFC, Dixon Technologies, Mankind Pharma, Jothi Laboratories, HP Electric among other stocks. Now, shifting focus to the index and the Nifty has seen a bit of consolidation but a positive one at that over the last three days. The index is already up 400 points from its recent swing low of 21821. The next levels to watch on the index will first be of course Tuesday's high of 22 to 70 from where the index reversed slightly and then comes the high of the 9th of May which is 22307 and that coincides with the 50 day moving average for the index. The recovery has been swifter in the Nifty bank and the index is on the cusp of 48000 which it failed to cross on Tuesday after making a high of around 47 950. Analysts believe that a sustained move above 48000 can trigger further short covering in the index towards levels of 48500. Remember today's also the weekly expiry of the Nifty bank contracts. The other major positive was the fall in the weeks which declined for the first time in 14 trading sessions. It was not a substantial decline though as the index continues to remain above levels of 20 but it was a decline nonetheless. Also keep an eye out for CIPLA. The block deal is likely to take place today where the promoter group is likely to sell close to 2.5% stake in the company and that sources have told CNBC TV18. So we'll keep an eye out on if the block deal takes place today. Markets in Asia have opened higher but those in South Korea and Hong Kong are shut this morning. The handover from Wall Street was also positive with the NASDAQ composite hitting a fresh record closing high. Investors are awaiting data from the consumer price inflation in the US later this evening. The gift Nifty as we speak is indicating another positive start for the Indian markets and that's all for today. We wish you a happy day of trade and for all the sharpest market insights and the latest on that terrible tragedy in Khart Kolkar. Stay tuned to cnbctv18 and cnbctv18.com [Music]