Here’s what key voices from the world of business and markets told CNBC-TV18 today

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The market has been seeing a lot of FII money coming in, out of which, 65 percent has been ETF, so it is coming to the heavyweights. If Reliance were to carry this weight through, it will attract some money. However, eventually, when money starts moving out, it will also lose some ground. I wouldn’t be surprised if you see this all the way to about Rs 2,250-2,300 in this gush and then you will have to evaluate it depending on the liquidity flow. The stock does seem to be ripe for some sort of a rerating.

Prakash Diwan, Market expert 

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We have started adding AU Small Finance Bank. There is a lot of interest in midcap consumption plays beyond fast-moving consumer goods (FMCG).

We are buying Bajaj Finance at all dips. Around 9 percent of our consistent compounded portfolio will be Bajaj Finance. If Bajaj Finance gets slammed as it did in January, February, and March, we won’t hesitate to take it back to normal weight. In late April or early May, we tripled our position in Bajaj Finance.

Saurabh Mukherjea, Founder, Marcellus Investment Managers

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We are very convinced about entering IT sector, manufacturing and real estate. Having said that, many more sectors will also do well. IT sector looks strong and robust from a profitability growth perspective. BFSI segment – for the next four-five years we are looking for a very strong credit environment as well as the profitability growth environment.

We are seeing a big shift coming from China to India on a manufacturing front. This is a very big structural change that happens post-COVID and that will provide a very big opportunity. Cyclicals are doing very well, the commodity will also do well. Sectors like real estate are coming back. My conviction on a long-term India story from two-three year perspective is very high and that continues to remain. Watch here.

Vikas Khemani, Founder, Carnelian Capital Advisors

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We will continue to support the government when it comes to testing but pointed out that eventually, the cuts will impact services. Given our scale and portfolio we are managing it now, but any further cut in prices will hurt the entire industry as well as the company. Watch here.

Om Manchanda, MD, Dr Lal Pathlabs

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We have been looking for the PLI scheme for a long time and this is a welcome step. As the scheme stands today, from the steel sector four products have been covered – coated steel, high stand steel, and alloy steel bars and rods. Many of the products are already being manufactured by the steel companies within the country, but with PLI, it will give thrust on increasing production, and also more investment will go in these sectors. I think this is going to help the steel sector in a long way in getting the import substitute products manufactured within the country. Watch more.

Anil Kumar Chaudhary, Chairman, Steel Authority of India (SAIL)

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Cholamandalam Investment’s assets under management (AUM) and net interest income (NII) have grown at a compounded annual growth rate (CAGR) of 25 percent in the last 10 years. Profit has compounded at over 50 percent. The company plans to grow gradually in the housing loan segment. Because of the condition of the property documentation – it takes a little longer and a little bit cumbersome as you go interior. That is why we are careful not to extend it in a very aggressive manner but we will be going down that segment as things improve. Watch more.

Arulselvan D, Executive Vice President & CFO, Cholamandalam Investment and Finance

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People have been shopping online with us because we did not have a store yet. From our experience in other markets, once we open the store, that increases the online business because people come into the store, they get inspired and go back to the website and place orders. Watch more.

Alan Buckle, Store Manager, Ikea

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Shigella scare in Kerala: All you need to know about this bacterial infection

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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An 11-year-old boy died and many others were hospitalised with intestinal infection in Kerala’s Kozhikode, triggering panic in the district.

The infection has been caused by highly-contagious Shigella bacteria. However, the state’s health department said that situation is under control now and various preventive measures have been taken to deal with the infection.

All you need to know about Shigella bacterial infection:

Symptoms:

The symptoms of this intestinal infection caused by Shigella bacteria include diarrhoea, stomach pain, cramps, fever and vomiting. One of the main symptoms is traces of blood or mucus in the stool. The symptoms may take seven days to fully appear after exposure.

According to reports, children under 10 are most susceptible to contract the infection

Source of Infection:

Shigella usually spreads through food and water, which are contaminated to some extent by human excreta. The infection can also spread due to the consumption of stale food.

What Medical Experts Say

The infection is treatable by antibiotics and there is no vaccine to prevent the infection. Medical experts say sanitisation methods must be followed with proper waste management to prevent the infection/

Steps Taken by State Government

District health authorities have collected water and food samples for testing and organised several medical camps. Chlorination of wells in the region is also being done. The state government has asked people to maintain personal hygiene and drink boiled water.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

China criticizes Trump suggestion it is behind cyber spying

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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China’s government on Monday criticized President Donald Trump’s suggestion that Chinese hackers, not Russia, might be behind a cyber espionage campaign against the United States.

Trump on Saturday scoffed at assertions by Secretary of State Mike Pompeo and other officials that the Kremlin was behind attempts to spy on federal agencies. Trump, without offering evidence, said it may be China.

The foreign ministry said China opposes cyberspying and has a crackdown on cybercrime.

The United States has politicized the issue of cybersecurity without conclusive evidence and continuously spread false information and thrown mud at China in an attempt to tarnish China’s image, said a ministry spokesman, Wang Wenbin.

We hope the United States will take a more responsible attitude on cybersecurity, Wang said.

China is widely regarded as, along with the United States and Russia, one of the most advanced governments in developing cyber warfare capabilities.

The U.S. government charged two Chinese citizens in July with carrying out long-running cyber spying since 2009 aimed at stealing information about coronavirus vaccines, weapons and human rights activists.

Chinese military officers and others also have been indicted since 2014 on U.S. charges of carrying out hacking attacks to steal commercial secrets.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Recap 2020: Pharma index had a dream year, thanks to COVID-19

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Unloved and largely ignored till the pandemic struck, pharma shares saw a dramatic improvement in their fortunes as investors bet on vaccine payday, COVID treatment or a shift in bulk drug sourcing away from China to India. Reflecting the newfound love from fund managers and punters, the Pharma Index has been among the star performers of 2020, gaining over 50 percent year-to-date, and outperforming the Nifty by a wide margin. Within the pack, individual stocks have rallied anywhere between 30 percent to 100 percent.

According to broking firm CLSA, this is the first time in five years that the Pharma Index has outperformed the Nifty.

One of the reasons these pharma stocks gained was because they benefitted from opportunities arising from COVID-19 such as development, repurposing and sale of COVID-19 drugs, R&D on vaccines paying off for some and more orders for bulk drug drug firms as global drug makers companies looked to reduce their reliance on China. In fact, active pharmaceutical ingredient (API, or the bulk drug used for making formulations) sourcing, was one of the major themes of 2020.

Formulation manufacturers realised the need to diversify API supplies, and India was clearly a the next best alternative to China, according to analysts. This is however a more longer term opportunity.

Compared to other sectors, pharma companies suffered less operational disruptions as they were immediately classified as essential services. By altering their product mix and by keeping a lid on costs, most pharma companies were able to expand their operating margins.

Over the past few months, pharma companies have also seen an improvement in drug launches in the US such as cancer drug Revilimid generic being approved for Natco, Dr Reddys and most recently Cipla.

The companies also got a breather from the USFDA on inspections of Indian plants as the resources of the FDA were deployed for the pandemic and travel restrictions. CLSA says the US markets according to them were largely stable in CY20 and Q1 of 2020 did show some progress on resolving of US related compliance issues but key inspections were on hold due to COVID-19.

There has also been a valuation catch up for pharma companies. As of Dec 2019, pharma was trading at nil premium on an EV/EBITDA basis, compared to a 40 percent premium it has traded at in the past 12 years. In 2015, this premium had risen to as high as 100 percent.

CLSA analysts said that the improvement in earnings profile led to a re-rating of the sector which pushed price to earnings-based valuations more than one standard deviation above the long term average.

During this time, pharma and healthcare was probably one of the most active sectors in terms of deals with at least 7 deals in the listed space. Some notable transactions include Dr Reddys buying part of Wockhardt’s domestic business, KKR acquiring 54 percent in JB Chemicals, Carlyle buying Sequent Scientific and minority stake in Piramal Pharma and most recently the listing of Gland Pharma.

Going forward, some of the risks to pharma include COVID-19 related sales reducing as seen in the domestic sales in November, reinspections restarting by USFDA as the vaccine is now rolling out and increased competition in some of key launches in the US market to make the market more price sensitive.

Pharma stock gains since March 2020

Healthcare stock gains since March 2020

Pharma Stocks

Healthcare stocks

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

As deadline to declare tax proofs nears, here’s a list of top 10 ELSS funds to invest in

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Equity Linked Saving Scheme or ELSS, a type of mutual fund, has emerged as one of the most popular investment avenues for tax savings. The investments made in ELSS are eligible for tax benefits under section 80C of the Income Tax (I-T) Act.

One can claim deductions of as much as Rs 1.5 lakh via contributions in the ELSS funds.

Along with tax planning, ELSS funds are also considered ideal for wealth creation. ELSS provides the benefit of diversified equity investments that allows one to earn better returns. Like any other equity scheme, they have the capability of generating good tax-efficient returns if the scheme performs well (in the long term), experts opine.

Also read: Here’s how you can make 2021 your best tax saving year

Another advantage of ELSS funds is that it has the lowest lock-in period i.e. three years. This is helpful for somebody who doesn’t wish to invest for longer. ELSS offers flexibility to redeem or remain invested with their full/partial investment after the mandatory lock-in period of 3 years.

As ELSS comes with a statutory lock-in of three years, selecting a proper ELSS fund is very important. Experts suggest investors analyze and compare various funds from all perspectives before choosing one. Investors can evaluate the fund’s performance in the past years by checking the benchmark returns before selecting the ELSS fund.

Also read: Looking to invest in 2021? Here are the best investment options

Here’s a list of top-performing ELSS funds as of now based on the past years’ returns, fund house overall performance and consistency (Compiled by PaisaBazaar – an investment marketplace):

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

New coronavirus variant: Maharashtra announces night curfew till January 5

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Maharashtra government has imposed a curfew from 11 pm to 6 am in all municipal corporations till January 5 2021 with effect from December 22.

The decision has been taken in view of the emergence of new strains of coronavirus in the United Kingdom (UK).

An official statement said, “It has also been decided to put in institutional quarantine for 14 days those who arrive at the state’s airports from European and West Asian countries.”

Passengers coming to Maharashtra from other countries will be home quarantined, the statement added.

Earlier today, the government also announced a ban on all the flights originating from the UK to India from 23.59 pm on December 22.

Meanwhile, Union Health Minister Harsh Vardhan has assured the citizens that the government was alert and there was no need to panic.

The British government has warned that the potent new strain of the virus was “out of control” and imposed a stringent new stay-at-home lockdown from Sunday.

(With agency inputs)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Indians prefer buying 2-3 BHK houses; millennials contribute the largest chunk of homebuyers: Survey

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The real estate sector has seen a decent recovery in the last two months in terms of housing sales. The prominent markets such as Mumbai recorded a robust 67 per cent year-on-year growth in home sales volume at 9,301 units in November 2020.

The growth was largely augmented by the festive period of Diwali, the stamp duty cut in many states and the reduction of home loan interest rate. Other measures by realty developers such as deferred payment plans, discounts and offers have also helped entice homebuyers.

Read here: Housing sales in Mumbai jump 67% YoY due to stamp duty cut, festive demand

These factors have inspired 82 percent of customers to buy property in 2021 as compared to 64 per cent in 2020, according to a survey by NoBroker.com.

“It has been historically observed that whenever the difference between home loan interest rates and rental yields are less than 4.5-5 per cent, there is a massive surge in housing sales and we can expect this to happen now,” said Saurabh Garg, co-founder and Chief Business Officer, NoBroker.com.

The millennials contribute the largest chunk of homebuyers. The 25-40 demographic constituted about 49 per cent of buyers until last year. This percentage has now rocketed to 63 per cent.

“The year 2020 ha has re-emphasised the importance of owning a physical asset and changed the priorities for the millennials,” Garg said adding that it shifted criteria from ‘closer to the workplace’ to ‘spacious house’ for working professionals as work from home kicked in.

Also Read: 2021 real estate sector outlook: Healthy economic indicators to push revival

The survey also finds that the homebuyers are preferring bigger two or three-bedroom homes to accommodate study and work from home lifestyle, steered by the COVID-19 pandemic.

The percentage of people looking to buy a 3 BHK is 29 per cent, a rise from 7 per cent last year. Meanwhile, around 48 per cent of homebuyers this year are looking for 2 BHK, a growth of 10 per cent from last year.

The survey indicates a sizable increase in a number of people looking to buy property in Rs 80 lakh to 1 crore bracket.

There has also been a rise in online rent payments. The majority of this is led by the fact that post-pandemic people prefer contactless means of rent transfer.

Meanwhile, 57 per cent of buyers prefer ready to move in homes with Delhi –NCR and Chennai leading this trend.

Hyderabad leads the choice for independent houses where 46 per cent were looking for an independent house, whereas Delhi tops the chart when it comes to buying a plot with 15 per cent.

Also Read: As Indian realty bounces back, there’s another crisis looming

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow