MarketBuzz
1284: Marketbuzz Podcast with Hormaz Fatakia: Nifty may open at a record high; IT remains in focus
Good morning and welcome to CNBC TV18's Market Bus Podcast, I am Burmish Vatakya. Well, is it even worth talking about a resistance on the NFTI? Well, because whenever we speak about it, it crosses that level the next day as if it was never a resistance to begin with. Now, for the better part of the last two weeks, it was banks towards the end of the last week, it was reliance industries and yesterday it was IT stocks that ensured that the NFTI continues to move higher regardless of whether the other sectors are contributing or not. Now, post Monday is closed, the NFTI is just 30 points away from its recent record high, which was close to the 24/170 mark and that level may be crossed at market open today itself as the gift NFTI is pointing towards a 40-point gap up for our own markets. Now, the US markets too began their truncated trading week on a positive note, the markets will shut early on Wednesday and remain closed on Thursday due to the Independence Day holiday. The NASDAQ ended at a record high overnight and that might just keep the IT stocks buoyant today as well ahead of the earning season that they will kick off in just about a week from now. And while most analysts on the street are still wary of going aggressively long on the index at these levels, they advise focusing on specific stocks and let's take you through some of them. Auto sales continued to trickle in yesterday evening, Tata Motors reported an 8% drop in domestic sales for the month of June, TVS Motors sales were below estimates but they were higher when compared to last year, their EV sales were also up 10% year-on-year. Hero though was the outperformable with total motorcycle and scooter sales rising 15% from last year to over 5 lakh units, although exports saw some bit of pressure. Royal Enfield reported a 5% drop in sales while exports fell nearly 30% and that will keep ISHER motors in focus as well. Now, besides auto sales, there are plenty of other companies that came out with their business updates for the quarter. CSB Bank, which was recently in focus because of the block deal and Amansa and ADIA buying stake, now that reported a loan growth of 18% for the June quarter while deposits also increased by 22% from last year. Now, advances against gold and gold jewelry also were up 24% year-on-year. NMDC reported a 3% drop in production for the month of June, while sales were also down 9% from last year. And as a result, the company has undertaken a price cut for lump ores and fines. Now, the lump prices have been cut by 500 bucks a ton to 5950, while fines prices too have been cut by 500 rupees to 5110 rupees per ton. Now, here's the news that was in the spotlight a few days ago. Patanjali Foods has acquired the home and personal care business of Patanjali Ayurved. Under this, it has acquired the dental care, skincare, hair care and home care business of Patanjali Ayurved. Now, this deal is valued at 1100 crore rupees and is supposed to be paid in five tranches subject to various approvals. The company will also pay 3% of sales or a minimum of 83 crore rupees as licensing fee annually. Excluding the royalty component, this deal is likely to add 8.5% to its sales and 32% to the ABITDA of Patanjali Foods. The carousel has launched a QIP to raise funds that floor price that their set of 837 rupees is higher than Monday's closing price than the company at its discretion can offer a discount of not more than 5% on the floor price. Now, watch out for a stock called DCX systems because that has won an order worth 1250 crore rupees from LNT for the manufacture and supply of electronic modules and this order is to be executed over a three-year period. Now, we spoke of IT stocks earlier and the street does appear to be warming up to them ahead of the results season. WIPRO which received a double upgrade from CLSA yesterday has received another upgrade this time from Nomura. The brokerage said that this quarter for which the results will be reported will mark the bottom for the sluggish revenue growth for the sector while discretionary demand is unlikely to pick up anytime soon. It is unlikely to worsen either from these levels. Nomura has also upgraded in forces to a buy from neutral. In forces, WIPRO and Tech Mahendra are Nomura's large cap picks while cohorts and builders of are among the mid-cap preferences. Now, side of the market also watch for prime ministers response to the motion of thanks to the president's address in the Lok Sabha. There was a foror in the house yesterday after the leader of opposition Raoul Gandhi's speech. So, he will keep an eye out on that as well. And that's all for today. We wish you a happy trading day and for the sharpest market insights, of course. Stay tuned to CNBC TV 18 and CNBC TV 18 dot com.