Centrum Broking’s Anil Sarin: Expect a bull run; prefer ICICI Bank over other private sector lenders

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

Listen to the Article (6 Minutes)

The September quarter results have been in-line or slightly better than expected, but consumption demand is a cause for worry, said Anil Sarin, CIO – Equities at Centrum Broking in an interview with CNBCTV18.com. He added that the reduction in bad news and government efforts are positive for investor sentiment, meanwhile, the Reserve Bank of India’s accommodative stance on liquidity is helping the circulation of money in the system. Edited Excerpts:

Markets have started consolidating in the last few days after hitting record highs? Do you expect a bearish or bullish trend to follow?

The frequency of bad news relating to corporate developments and NBFC [non-banking finance company] liquidity has reduced. Also, the second-quarter results have by and large been better than expected. Government ministries are taking efforts to revive the economy and are resolving pending legal or procedural issues. The reduction in bad news and government efforts are positive for investor sentiment. Meanwhile, the RBI’s accommodative stance on liquidity is helping the circulation of money in the system. Global factors like the US-China trade dispute, price of oil, etc. are also turning positive. As such we have a bullish stance on the market.

Have the September-quarter earnings been up to your satisfaction? Which sectors are your top bets now and why?

The results have been in-line or slightly better than expected. But consumption demand is a cause for worry. As we scan the landscape, niche sectors like real estate, staffing, digital business model (DBM) companies appear promising. Healthcare (not generic pharma) is also showing signs of rising profitability. The coming bull market would have to be negotiated through bottom-up ideas, unlike the earlier approach of investing in well-known and well-understood sectors.

With so many recent developments in the telecom sector, do you think it’s worth an entry? Vodafone has become a penny stock, but do you see an upside in the near future?

We cannot comment on individual stocks. But we feel the recent developments will prove to be long-term helpful in highlighting the troubles faced by the sector. It will force the government to address the contentious issues of spectrum pricing, revenue sharing etc.

Which is your top pick among large-cap private banks ICICI Bank, Axis Bank, and HDFC Bank and why? They have recently witnessed some selling, is it only profit booking or there are other factors at play?

We continue to like ICICI Bank based on its profit improvement potential and comfortable valuation. Recent troubles in a few private sector banks would aid the profit recovery process of ICICI Bank. The other two banks continue to be attractive investment bets, but we would accord higher priority to ICICI Bank.

How long do you expect for the midcap segment to fully recover?

A lot depends on the revival of the Indian economy. While the valuation gap vis-à-vis large caps is very evident, it would take a substantial recovery in earnings to sustain a bull market in midcap stocks.

What are your views on the BPCL divestment? Do you think its the right move?

We are of the view that the government should gradually exit this business. As such we are positive on recent developments where the government is showing a willingness to hand over actual control of certain PSUs [public sector undertakings] to the private sector.

Disclaimer: 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

IDBI Bank’s shares climb 6% after it sells mutual fund business to Muthoot Finance

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

Listen to the Article (6 Minutes)

IDBI Bank’s share price climbed 6 percent intraday on Monday after the private bank signed a share purchase agreement (SPA) with Muthoot Finance to sell its stake in IDBI Asset Management Limited (IAML).

At 9:38 am, the shares were trading 0.4 percent higher at Rs 38.85 per share on the NSE while intraday, the stock price climbed 5.9 percent to Rs 41. Meanwhile, Muthoot Finance’s shares fell 0.72 percent lower to Rs 679.75.

In its BSE regulatory filing, the bank said, “IDBI Bank has agreed to sell its (a) entire 66.67 percent equity shares in its subsidiary IAML, and (b) entire 100 percent equity shares in its subsidiary IDBI MF Trustee  company to the buyer.”

The transaction is expected to be completed by end of February 2020 subject to receipt of necessary regulatory approvals, it added.

IDBI MF (22 schemes) is one of the profit-making companies in the mutual fund space with assets under management (AUM) of approximately Rs 5,300 crore.

Catch all the latest updates from the stock market here.

Disclaimer: 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

Hong Kong pro-democracy camp heads for stunning polls win

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

Listen to the Article (6 Minutes)

Hong Kong’s pro-democracy camp was cruising towards a crushing victory in community-level elections on Monday, sending the Beijing-backed government a clear message of public support for the demands of a protest movement that has gripped the territory for months.

Counting was still underway following record turnout in Sunday’s polls, but partial results indicated that candidates favouring greater democracy were on course to seize a shock majority of the normally establishment-dominated 18 district councils.

The stunning result was a humiliating rebuke to Beijing and dashed any lingering hopes of Hong Kong leader Carrie Lam that the increasingly aggressive tactics deployed by radical protesters would encourage a silent majority to turn out in support of her administration.

Change-seeking politicians seized on the result as proof that citizens want more say in running the city.

“No matter how strong Carrie Lam is I hope she can comply with the wishes of the people, fulfil the five demands (and) give the youngsters a chance,” political activist Jimmy Sham told reporters after winning a district council seat.

The protest movement has made five key demands, including direct popular elections and a probe into alleged police brutality. Lam has dismissed the idea of government concessions as “wishful thinking”.

Hong Kong has endured months of mass rallies and violent clashes, initially touched off by anger over a bill backed by Lam that would have allowed extraditions to China’s opaque judicial system.

District councils handle community-level concerns such as bus routes and garbage collection and the polls typically generate little excitement. But Sunday’s contest for 452 seats took on new political significance because of the public discontent.

The result was “nothing short of a revolution,” Hong Kong political analyst Willy Lam said.

“It’s a sound repudiation of the (Hong Kong) administration and Beijing’s policy toward Hong Kong.” The result could hasten Beijing’s expected removal of Lam as Hong Kong’s leader, he said, but may also extend the city’s crisis.

“Protesters will see this astounding victory as a mandate given by the people, so they will fight harder. But at the same time there won’t be any concessions from Beijing, so the frustration will mount,” Lam told AFP.

China’s state media had urged Hong Kongers to vote against violence, but downplayed the results on Monday.

“The record turnout has sent the message that however violent the rioters are, ordinary residents are concerned about their own well-being,” a China Daily editorial said.

With just more than half of the 452 races officially tabulated early Monday, 201 pro-democracy candidates had won their races, against just 28 pro-Beijing establishment candidates and 12 independents.

In the last council vote in 2015, just over 100 democrat-leaning candidates won seats. A record 71 percent of the 4.13 million citizens who registered to vote had cast their ballots, according to Hong Kong’s election watchdog.

Hong Kong’s largest pro-Beijing political party was seriously bloodied, with at least 155 of its 182 candidates defeated, media reports said.  Among them were firebrand lawmaker Junius Ho, one of the politicians most loathed by democracy activists, and who was stabbed this month during campaigning.
The vote is the closest Hong Kongers get to direct representation.

The territory’s legislature is elected by a mix of popular vote and industry groups stacked with China loyalists, which ensures Beijing’s control.

Some candidates for next year’s legislative elections will be drawn from the district councils, and the bodies also will contribute 117 members to the 1,200-strong Beijing-controlled electoral college that chooses the chief executive.

Protests eased in the poll run-up after pro-democracy figures urged calm to avoid triggering any election delay or suspension.

Campaigning was marred by acrimony, with one pro-democracy candidate having his ear bitten off in an attack, while 17 other candidates of all stripes were arrested over protest-related activities.

Election authorities also banned leading democracy activist Joshua Wong from running, over his support for Hong Kong “self-determination”

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

Parliament winter session 2019: Maharashtra developments to dominate proceedings in both Lok Sabha, Rajya Sabha

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

Listen to the Article (6 Minutes)

The political developments in Maharashtra likely will dominate proceedings the ongoing winter session of parliament on Monday with ruckus expected in both Lok Sabha and Rajya Sabha. Leader of Congress in Lok Sabha, Adhir Ranjan Chowdhury, and Congress’ chief whip in Lok Sabha, K Suresh have given adjournment motion notice in the House on Maharashtra government formation issue.

The Rajya Sabha session on Monday too is set to start on a stormy note with opposition members raising the issue of Maharashtra in the House.

The Communist Party of India (CPI) leader Binoy Viswam has served notice under Rule 267 for suspension of the proceedings of the House to discuss the urgent issue of Maharashtra.

In his letter to Rajya Sabha Chairman M. Venkaiah Naidu, the veteran Left leader has said that the developments in Maharashtra have brought shame to the country’s democratic system.

“The midnight plot aimed to murder the people’s desire for a democratically elected government under the veil of darkness is a matter of great concern. The office of Governor was once again used as a tool in installing a government that holds no legitimacy of the people,” Viswam said.

In a sudden development on early Saturday morning, Devendra Fadnavis was sworn in as Maharashtra Chief Minister and NCP leader Ajit Pawar as Deputy Chief Minister by Governor Bhagat Singh Koshyari.

The rival Shiv Sena, Congress and NCP led by its supremo Sharad Pawar have challenged the government formation and knocked on the doors of the Supreme Court.

Meanwhile, the government will introduce two important Bills in the Lok Sabha on Monday — the Taxation Laws (Amendment) Bill and the International Financial Services Centres (IFSCs) Authority Bill. These Bills were cleared by the Union Cabinet on November 20. The Taxation Laws (Amendment) Bill provides for reduction in rates of corporate income tax as an additional fiscal stimulus to attract investment, generate employment and boost growth.

-with inputs from IANS

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

Opening Bell: Sensex gains 100 points, Nifty around 11,950; metal stocks rise

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

Listen to the Article (6 Minutes)

Indian shares opened higher on Monday tracking positive global cues. Global markets are surging on the back of optimistic comments on the trade deal between the United States and China would support the domestic indices.

At 9:20 am, the Sensex was trading 125 points higher at 40,481, while the Nifty50 index added 33 points at 11,948. Nifty Midcap and Nifty Smallcap indices also rose 0.3 percent each, in-line with benchmark indices.

Bharti Infratel, Tata Steel, Infosys, JSW Steel, and Titan were the top gainers on the Nifty50 index, while Zee, ONGC, BPCL, Tata Motors, and Asian Paints led the losses.

All sectoral indices, except Nifty Media, were trading in green. Nifty Realty rose the most, up 2 percent, followed by Nifty Metal, which rose 1.8 percent in opening deals. Nifty Pharma rose 0.5 percent, while Nifty IT gained 0.2 percent. All banking and financial indices were also in green. However, Nifty Media fell 0.7 percent, dragged by Zee, which lost 3 percent in opening trade.

The metal index surged with all stock constituents trading in green. JSPL, JSW Steel, SAIL, Tata Steel and NALCO were up between 1.8 and 4.5 percent.

Globally, shares in Asia traded higher after the US and China made positive comments on the trade deal. The Nikkei 225 in Japan rose 0.79 percent in early trade, with shares of index heavyweights Fast Retailing, Softbank Group, and Fanuc all seeing gains. South Korea’s Kospi also gained 0.93 percent. Overall, the MSCI Asia ex-Japan index traded 0.27 percent higher.

Also, track all live market action on CNBC-TV18 Market Blog

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

Indoco Remedies receives EIR from USFDA for Goa facility, shares jump 5%

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

Listen to the Article (6 Minutes)

Shares of Indoco Remedies rallied over 5 percent on Monday after it received an establishment inspection report (EIR) from the US Food and Drug Administration (USFDA) for its sterile facility (Plant II) and solid dosages facility (Plant III) at Verna, Goa. Indoco shares advanced as much as 5.4 percent to Rs 157.55 per share intraday on the BSE.

The inspection was carried out between October 7 to 15 and was classified as VAI (Voluntary Action Indicated) by the USFDA.

At 9:20 am, the stock gained 5.05 percent to trade at Rs 157 on the Bombay Stock Exchange.

This was a pre-approval inspection for a sterile injectable product, with two observations on Form 483s, which is now concluded as closed, the company said in a regulatory filing on Monday.

“This second successful PAI (Pre-Approval Inspection) at the site in less than 6 months indicates steady progress in review of Indoco’s pending ANDAs. The Company has 39 ANDAs, pending for approval from this site,” said Aditi Kare Panandikar, Managing Director, Indoco Remedies Ltd.

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

Combating air pollution in New Delhi with Chinese caveats

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

Listen to the Article (6 Minutes)

My friend from Peking University remembers how at the height of the Beijing “airpocalypse” of 2013, attendance suddenly dropped: Out of a class of 200 students, ten would show up. These are regular stories about pollution: of dorms offering students reduced prices so that they could afford purifiers, of hospitals filling up with patients, of people who braved the pollution to go about their days anyway. But these stories are no longer true. For the first time in 2019, Beijing has exited the list of most polluted cities in the world. The Communist Party’s “War on Pollution” has succeeded. We should learn how the Beijing policymakers accomplished the task, and apply those lessons to clean up the putrid air that is Delhi.

But the story isn’t as clear cut as that.

What are the main causes of the smog in Beijing?

According to a study by National Air Pollution Prevention and Control Centre the main causes for the smog in Beijing are heavy industry and reliance on coal and road-dominated transport, particularly in the Beijing-Tianjin-Hebei region. Yes, Beijing has come a long way since the 1990s when citizens or officials equally didn’t care about air pollution. Through the 2000s, the city switched from coal to gas for its power supply, cracked down on vehicular emissions, and improved forecasting at the time of the Beijing Olympics. But all of this has come into fruition only over the last two years with the number of “hazardous air” days when decreasing annually.

Beijing does have a lot of lessons for New Delhi, particularly with regards to monitoring and cutting vehicular emissions. The 2018 World Air Quality Report by Air Visual points out, “China Mainland has the world’s most numerous and far-reaching monitoring network, with around 1,500 monitors managed by the central government and a total of over 5,000 monitors managed at a central, provincial, municipal and county level.” On the other hand, “The majority of South Asia, including Afghanistan, Bangladesh, Pakistan and Sri Lanka, lack government-supported real-time public stations.”

Unfortunately, crop burning and coal burning are not the same thing. Beijing has dealt with its air pollution — by offloading it somewhere else. The capital city outsourced its emissions and its dirtier industries to poorer hinterlands. The unintended consequence of this move is that overall carbon dioxide emissions will be 3.6 times higher, and water consumption will be 2.9 times higher. Delhi, on the other hand, cannot afford to outsource its pollution.

A question of the right balance

The “War on Pollution” signified strong political will of Chinese policymakers to seriously tackle the issue. In April this year, a ‘name and shame’ session was held in which officials from the provinces of Guangxi, Chongqing, and Jiangxi were reprimanded for not meeting targets on air pollution. The narrative is only strengthening as blue skies continue to reign over Beijing. However, this begs the question, how will China continue to cut down polluting industries considering its economic slowdown?

Over the last couple of years, public awareness about pollution is increasing but this has not resulted in the public consciousness. Even in Beijing, the adoption of pollution masks has remained low, particularly among younger, urban populations. In fact, there’s even a joke that the masks are “心里安慰 (or Xīnlǐ ānwèi which literally translates to ‘solace for the heart’) meaning that they do little for our wearied lungs.  However, in Delhi, hearts and lungs are both weary, waiting for our policymakers to take pollution seriously.

Hamsini Hariharan is the host of the States of Anarchy podcast and is currently based in Beijing.

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