Motilal Oswal sees 38% upside in Cyient if these scenarios fall into place

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

Listen to the Article (6 Minutes)

Brokerage Motilal Oswal has maintained its ‘Buy’ rating on global engineering and technology solutions company Cyient Ltd. and sees a potential upside of 21 percent from current levels, as it finds the company’s valuations to be highly attractive.

The brokerage observed that Cyient’s operating performance has been weak over the last few years as growth engines remained weak and execution challenges marred the overall topline growth.

However, the note said that challenges under the Aerospace and Communications segment, which is nearly half of the services revenue, have bottomed out and these segments may improve and stimulate overall organic growth. The brokerage expects these segments to improve and stimulate overall organic growth for Cyient.

Inorganic components and gradual recovery in the Design-Led Manufacturing (DLM) business will also amplify Cyient’s revenue growth, according to Motilal Oswal.

Motilal Oswal finds Cyient’s current valuations of 14 times financial year 2024 earnings per share as “highly attractive” and gives them more comfort to maintain their buy recommendation.

The brokerage expects the Cyient DLM’s (design-led manufacturing) business outlook to remain supportive on the back of an improved electronics manufacturing ecosystem in India even as the vertical has underperformed the company’s expectations in the past.

A dedicated leadership and a potential listing should result in more focused go to market and client mining which could also act as a potential upside to Cyient’s valuation, the report added.

Motilal Oswal considers the management’s aspiration of reaching $1 billion in revenue run-rate for the consolidated entity with 15-15.5 percent margin by the last quarter of the next financial year as a “bull case scenario.” In case this works out, the brokerage expects significant re-rating potential for the stock and result in a potential upside of 38 percent from current levels.

However, its base case for Cyient remains the same due to the ongoing macro headwinds and company-level execution challenges.

Shares of Cyient are trading 0.7 percent lower at Rs 960.

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

Formula 1: Red Bull’s Max Verstappen is again the man to beat in 2023

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

Listen to the Article (6 Minutes)

Red Bull driver Max Verstappen was so far ahead last season that catching the Formula One champion may feel like scaling a mountain.

So that’s exactly what Ferrari’s Charles Leclerc did to get himself ready for the challenge, which starts next Sunday at the season-opening Bahrain Grand Prix.

The 25-year-old from Monaco headed up to the Italian Dolomites for some “extreme training” that left him “fully recharged and ready for” another crack at Verstappen, his former junior karting rival.

Also Read: Meet Ravin Jain, the new Indian-origin head of strategy at Ferrari F1, who has an uphill task on hand

Lewis Hamilton has long been a perfectionist when it comes to physical fitness. But this time the Mercedes veteran tried something new: a week in Antarctica whale-spotting.

“Winter was great, amazing, (the) highlight was Antarctica seeing the whales,” the 38-year-old said. “Definitely, if anyone has an opportunity to go, pack warm. But otherwise (it’s) pretty spectacular.”

Whether this makes any difference when it comes to stopping Verstappen remains to be seen, and if pre-season testing is anything to go by, it might not.

Verstappen thinks his RB19 may be even better than last year.

“Overall I think it’s definitely an improvement to last year,” he said during testing. “Very positive days for me.”

Ferrari will hope things improve under new leadership.

Frenchman Frédéric Vasseur replaced team principal, Italian Mattia Binotto, whose relationship with Leclerc had become increasingly tense.

Leclerc opened 2022 with two wins in three races and seemed poised to challenge Verstappen. But he finished nearly 150 points adrift, without a win since July and just finished second overall.

“What to expect from Fred? It’s very early days, but what I can say is that it was impressive how quickly he (blended) into the team,” said Leclerc, who worked with Vasseur at Sauber. “Straight away he felt quite at ease and understood a team like Ferrari.”

Without criticizing Binotto, he alluded to the need for change.

“He’s really, really good at putting everybody in the right conditions in order to extract the best out of people,” the 25-year-old Leclerc said. “I think this is going to be a big plus.”

Binotto’s management led to poor team orders, botched pit stops and odd strategy calls that cost Leclerc wins. It generated conflict within F1’s most famed team and led to Binotto’s departure.

Hamilton’s relationship with Mercedes remains strong as he negotiates a new contract and with team principal Toto Wolff pledging to give him a winning car.

Hamilton is F1’s record-holder with 103 wins, but didn’t win a race last year and now must also beat teammate George Russell.

Russell surprised many observers in his first season with Mercedes by finishing ahead of Hamilton in the standings. Russell was fourth, compared to sixth for Hamilton, and won the team’s only race.

“Every point of my career, I’ve always gone in believing,” Russell said.

Asked about his rivals, Verstappen was very brief.

“It’s more important we focus on ourselves,” said Verstappen, who has won a record 15 races last year to take his career tally to 35.

The 25-year-old Dutchman is already sixth all time for wins. The late F1 great Ayrton Senna is fifth with 41 wins and well within reach this season.

Red Bull will start sleeker and lighter than last year and, Verstappen hopes, with no reliability problems.

“The main issue we had last year was the car was massively overweight, so at the beginning the car was very lazy and wasn’t turning in,” Verstappen said. “This year it’s just a continuation, but also things we found and put on the car that were clearly better.”

Last year became plain-sailing for Verstappen until some tension crept in near the end. Teammate Sergio Perez was unhappy that Verstappen didn’t let him through in Brazil when Perez was fighting with Leclerc for second place in the championship.

SPEAKING UP

Lewis Hamilton will keep speaking out on social justice and race, human rights and other issues close to his heart.

Motorsport’s governing body FIA in December updated its International Sporting Code to require prior written permission for drivers to make or display “political, religious and personal statements or comments” during race weekends.

The crackdown on free speech was condemned by most drivers. It led to F1 CEO Stefano Domenicali saying drivers won’t be gagged and prompted FIA to backtrack somewhat by saying drivers are free to express themselves outside of competition on their own platforms or in media interviews, and when directly asked questions in news conferences.

But FIA insists the sport must remain neutral, and potential sanctions range from fines, a grid drop, time penalty or — worst-case scenario — suspension.

Hamilton is confident Mercedes and F1 won’t let him and other drivers down.

“I know the team is in constant communication with the FIA and it’s been really positive to see Stefano (Domenicali) and Formula One stepping up and supporting us,” said Hamilton, the only Black driver in F1.

NEW AND OLD

Fernando Alonso is still confident in his ability to win a third world title even though he’s 41 years old. He joined Aston Martin after an acrimonious split with Alpine and the Spaniard likes what he’s seen so far.

“At Aston Martin for sure there is this energy and trying to become a contender for the future,” he said. “New factory coming together will be ready, new wind tunnel, a lot of investment. They look pretty good.”

NEW FACES

The 21-year-old Australian Oscar Piastri (McLaren), 22-year-old American Logan Sargeant and Nyck De Vries (AlphaTauri) are the new faces.

De Vries raced once last season and impressed with ninth place at the Italian Grand Prix when he stepped in for Alex Albon when he had appendicitis.

“I’m getting the opportunity to live my dream,” the 28-year-old De Vries said.

F2 champion Felipe Drugovich could replace Lance Stroll for Aston Martin in Bahrain if Stroll fails to recover from a wrist injury sustained in a bicycle accident.

There’s also a rumor that Aston Martin could recall Sebastian Vettel as a one-off. The four-time F1 champion retired last season.

Alonso and Vettel — former title rivals in the same team — would add spice, even for only one race.

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

Bharti Airtel surpasses 10 Million unique customers on its 5G network

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

Listen to the Article (6 Minutes)

One of India’s leading telecommunications services providers, Bharti Airtel on Monday, February 27, announced that it has crossed the 10 million unique 5G user mark on its network after crossing the one million mark in November 2022.

Airtel rolled out 5G services in the country in October 2022, since then the company has launched its 5G services in multiple forms across the country. Airtel 5G plus is now in more than 70 cities, the telecom operator reported in its Q3 results. 

“Our 5G rollout is on track to cover all towns and key rural areas by March 2024,” Gopal Vittal, MD of Bharti Airtel said.

“These are early days, but we are thrilled with the response we have received from our customers,” says CTO Randeep Sekhon on the occasion of achieving this milestone.

In December 2022, Bharti Airtel added 15.26 lakhs new users as against 10.56 lakhs users in November last year. Moreover, in Q3, Average Revenue per user was at ₹193 up from ₹190 in the previous quarter. The telecom operator also announced a price hike in entry-level plans in January.

Bharti Airtel stock has seen a mild recovery post this announcement but continues to trade 1 percent lower & has slipped nearly 3 percent this month.

Also Read:The reasons why Paytm-Bharti Airtel merger talks collapsed: Exclusive

.

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

Women’s T20 World Cup: Cricket world hails Meg Lanning led Australian women’s team for record-extending sixth title

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

Listen to the Article (6 Minutes)

The Cricket world is hailing the all-conquering Australian women’s team after it won an unprecedented sixth T20 World Cup title, a feat that might not be surpassed in the near or distant future.

The peerless Meg Lanning led Australia to another global title when they defended 157, after hosts South Africa fell 20 runs short of the target at a packed Newlands on Sunday.

Ashes-winning former English skipper Michael Vaughan was one of the firsts to comment on the Australian milestone. “Australia’s Women’s team are absolutely fantastic,” the cricketer-turned-commentator posted on his Twitter handle.

Also Read: Australian selectors to take a call on Warner’s Test future before Ashes, believes Mark Taylor

“Australian women’s team are an indomitable force, and have been for so long. Deserved champions once again What has been pleasing is to see that South Africa are heading in the right direction,” remarked former West Indies pacer turned commentator Ian Bishop.

Former Zimbabwe pacer-turned-commentator Pommie Mbangwa tweeted: “What a day! Awesome atmosphere at Newlands. Congratulations and kudos to Australia.” Australia are the T20 World Cup champions in 2010, 2012, 2014, 2018, 2020 and in 2023. In between the West Indies had stopped the Australian juggernaut, becoming the 2016 champions in India.

The ‘Women in Yellow’ have also reigned supreme in the ODI format winning the World Cup in 1978, 1982, 1988, 1997, 2005, 2013 and 2022.

“Australia’s dominance is so evident when you watch them play in these big tournaments & you gotta have a flawless day to beat them. Commiserations to South Africa, they were brilliant throughout the tournament after the first loss,” former UAE captain Ahmed Raza wrote.

England left-arm spinner Alexandra Hartley posted on her Twitter: “Australia showing yet again why they are the greatest sporting team of all time. Congratulations Australia. South Africa, you’ve created history, that is enough to be proud of.” “Formidable Aussies — Meg Lanning reigning again. Congrats AusWomenCricket,” former Pakistan cricketer turned broadcaster Marina Iqbal wrote, adding a praise for South Africa also: “ProteasWomenCSA deserve every bit of appreciation for playing clinical cricket on home soil.” ‘Beth Mooney is Australia’s Ben Stokes’ ============================ Much credit for the Australia’s success was due to their World ranked No 2 batter Beth Mooney who top-scored with an unbeaten 74 to lead the side to a winning total of 156/6. Mooney was adjudged the Player-of-the-Match.

Drawing parallel with gun English allrounder Ben Stokes, former spinner Monty Panesar wrote: “What does Beth Mooney and Ben Stokes have in common, they are players for the big occasion and World Cup finals.” “In Mooney, the Australian Women’s Cricket team trust,” remarked Lisa Sthalekar, the former World Cup winning Australian captain.

South Africa’s heartbreak meant that the nation’s wait for a senior ICC World Cup win goes on.

But some excellent individual performances, a capacity crowd and a superb tournament overall represented a huge step forward for both the Proteas and women’s sport in South Africa as a whole.

Former Graeme Smith was all praise for their team.

“Our @ProteasWomenCSA did South Africa proud, gave it everything against an incredible Australian team. Congratulations Australia T20WomensWorldCup,” Smith wrote to which the great AB de Villiers replied: “Proud!!!” “Thank you South Africa. This was special to be part of. I will miss this tournament,” South African sports broadcaster Natalie Germanos said.

(with PTI 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

Yulu and Bajaj Auto launch new electric 2-wheelers Miracle GR, DeX GR – Check out first look and more

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

Listen to the Article (6 Minutes)

Bengaluru-headquartered electric mobility platform Yulu, in partnership with Bajaj Auto, launched two new electric 2-wheelers (e2Ws) Miracle GR and DeX GR in India on Monday. The company claims that these new electric vehicles offer a higher operational efficiency to improve Yulu’s overall financial metrics.

This partnership between Yulu and Chetak Technology Ltd, a 100 percent owned subsidiary of Bajaj Auto, aims to transform mobility through smart, shared, sustainable, and safe electric vehicles. The new e2Ws are powered by Yulu’s AI-led technology stack and will be manufactured by Bajaj Auto in India.

Bajaj, which already has a stake in Yulu, also retails the Chetak electric scooter in the market. Bajaj Auto helped localise and upgrade Yulu’s second-generation e-scooters and also partly manufactured components.

According to the company, these new third-generation e-bikes are fool proof, fall proof and will offer OTA support. Yulu said that these new e-bikes are trackable and offer easy manoeuvrability for both personal and commercial usage. The company is targeting to put around 1 lakh electric two-wheelers by Oct 2023.

Yulu also stressed about its collaboration with Magna for battery swapping network. Yulu and Magna have gotten into a joint venture to launch Yuma Energy, which offers ‘battery-as-a-service for electric two-wheelers. Magna put in an investment of $77 million to set up this joint venture in September 2022 and the service was launched on February 2, 2023.

S Ravikumar, Chief Business Development Officer of Bajaj Auto Limited, in a statement, said, “Going electric is a key strategic priority at Bajaj, and Yulu is an integral part of this strategy. Yulu’s deep expertise in EV technology and market knowledge coupled with Bajaj Auto’s strong, world-class R&D and manufacturing capabilities, is a powerful force that is shaping India’s future of mobility.”

Yulu, which claims to have doubled its fleet in the last three months, is expected to put bring 1 lakh new vehicles on the road across major cities in India and is targeting more than 10-fold growth in revenues by the end of the year.

Amit Gupta, Co-founder and CEO of Yulu, in a statement, said, “This launch will further solidify our position as a market leader in the shared mobility space, while reinforcing our commitment to sustainably solve the problems of traffic congestion and air pollution for daily commute and last-mile deliveries.”

Both Miracle GR and DeX GR come with smart dockless EV technology. The Miracle GR offers a maximum speed of 25 km per hour, while DeX GR gets a goods carrier that can hold up to 15 kg. They also feature a head and tail light.

Yulu’s fleet operates on swappable batteries and is powered by Yuma Energy, which has around 100 stations across Bengaluru, Mumbai and Delhi. The company plans to increase these stations to 500 by 2024.

Travellers can use the Yulu app to access and use e-bikes. Neither a driving license nor a helmet is required to drive the non-motorised bike. Yulu explains that the process is to use the Yulu app to locate the nearest Yulu vehicle, pick a bike and scan the QR code on the bike panel to unlock it. Furthermore, to end the ride, the user has to first reach the Yulu zone to park and lock the bike and click ‘End’ on the app.

Also Read: Tata Motors likely to see commercial vehicles’ pre-buying in February. Here’s why

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

Delhi High Court upholds Centre’s Agnipath scheme for recruitment in armed forces

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

Listen to the Article (6 Minutes)

The Delhi High Court on Monday, February 27, upheld the Centre’s Agnipath scheme for recruitment in the Indian armed forces. The court in its order observed that the scheme was made in national interest and will ensure that the armed forces are better equipped.

A bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad said there was no reason to interfere in the scheme. Earlier, the Delhi High court had reserved its verdict on the batch of pleas on December 15, 2022.

The Agnipath scheme was unveiled on June 14 last year by PM Narendra Modi union government. The scheme lays out rules for the recruitment of youth in the armed forces between 17-and-a-half and 21 years of age for a four-year tenure.

The scheme allows 25 percent of them to be granted regular service subsequently whereas the remaining personnel would be accommodated in other central or state government recruitments.

Also Read:Agniveer recruitment process changed, candidates must clear entrance test first: All you need to know

-With inputs from PTI

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

SpiceJet board approves slump sale of cargo business, Rs 2,500 crore QIP

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

Listen to the Article (6 Minutes)

The board of aviation carrier SpiceJet Ltd. has entered into a business transfer agreement with its subsidiary SpiceXpress and Logistics Pvt. Ltd., to transfer its cargo business undertaking as a going concern, on a slump sale basis.

With this, cargo business will now be exclusively undertaken by the subsidiary from April 1, 2023.

The overall consideration of Rs 2,555.77 crore, for the transfer of the cargo business undertaking will be funded by SXPL through the issuance of securities in a combination of equity shares and Compulsorily Convertible Debentures (CCD).

As part of its ongoing restructuring with aircraft lessors Carlyle Aviation Partner or its affiliates, these CCDs will be transferred to those agreeing to exchange their lease liabilities for an aggregate amount equivalent to total nominal value of such CCDs.

The board has also approved the issue of equity shares on a preferential basis to the aircraft lessors based upon the conversion of their existing lease liabilities equivalent to an amount not exceeding $29.5 million.

Another proposal approved by the board is the exchange of its outstanding lease liabilities for an aggregate amount not exceeding $65.5 million into CCDs of SXPL, which are held by SpiceJet.

As part of the restructuring with aircraft lessor CLSEC Holdings 10 DAC, an affiliate of Castlelake, and in order to acquire two Boeing 737-800 airframes, the board has in-principally agreed to purchase the entire share capital of AS Lease 41 (Ireland) Ltd. from CLSEC Holdings 10 DAC.

SpiceJet will also raise funds to the tune of Rs 2,500 crore through the issue of eligible securities to Qualified Institutional Buyers (QIBs), subject to regulatory approvals.

Shares of SpiceJet are trading 5.2 percent higher at Rs 41.75.

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

Mphasis shares fall most in a year after Citi projects 22% downside on slow revenue realisation

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

Listen to the Article (6 Minutes)

US-based brokerage Citi expects a 22 percent correction in the share price of IT services and consulting company Mphasis Ltd. due to a slowdown in revenue generation. It has maintained its sell recommendation on the stock with a price target of Rs 1,705.

The brokerage in its note stated that as per the management the conversion of total contract value into revenue realisation is slowing in the current macroeconomic environment.

The management expects the mortgage business to remain muted in the last quarter of the current financial year. Mphasis earnings have remained sluggish over the last few quarters as most of its exposure comes from the mortgage business.

Citi interacted with Mphasis CFO Manish Dugar, who said that overall growth will improve from the next financial year. The management reiterated that the company’s margin will remain within the guided range of 15.25 percent to 17 percent in the current financial year.

The brokerage also said that the current valuations of 22 times one-year forward consensus Earnings per Share are on the expensive side.

In an earlier note, Citi had said that it used to prefer Mphasis over its other mid-tier peers but the drag from its digital business is likely to continue.

The IT services company reported consolidated revenue of Rs 3,506.2 crore for the December quarter, against Rs 3,519.82 crore in the September quarter.

Net profit for the period increased to Rs 447 crore from Rs 410 crore sequentially.

Shares of Mphasis are trading 6.6 percent lower at Rs 2,051.75. The stock has declined the most in a single session since May last year.

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

Last-minute tax planning: Five common mistakes and how to avoid them

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

Listen to the Article (6 Minutes)

The deadline for making tax-saving investments for 2022-23 is March 31. With only a month left for the same, it is high time to do your tax planning to get more disposable income. However, in this last-minute rush, there are chances of you committing mistakes that could prove costly in the long term. So, here we have listed some of these mistakes which must be certainly avoided:

Investing more money than required

In the last-minute rush, you may indulge in panic investing or pool in more money in tax-saving investments than required. This causes nothing but a disruption in future financial goals. So, it’s best to first evaluate taxes already saved by you in the form of house rent, education loans, home loans, etc and then invest only the remaining amount.

ALSO READ | 5 ways to save tax without making any investment

Experts suggest using a reliable online calculator or seeking counsel from a tax specialist to help in computing this total investment amount.

Investing in products that offer low returns

Another mistake that you can make during this end-moment frenzy is investing/purchasing products that offer very low returns, are not liquid enough, or have high overhead costs attached to them. Experts, hence, suggest opting for products that you have a fair knowledge about or can be exited easily.

Making investments without proper planning

While making an investment many people forgot to do proper planning like checking the rate of returns of investments. The interest rate on investments like PPF and FDs is readily available on websites, advertisements, etc. But the rate of return on investments like ELSS, ULIP, etc. whose values are fluctuating on daily basis is uncertain.

ALSO READ | Tax-saving investment: How to avail benefits from National Savings Certificate

So, while making the investment in these, you must check whether their returns are quite enough if they are compared with the return on other investments.

Investing without financial goals

You might forget to link tax-saving instruments with your goal, which can cost a lot in the future. Experts ask people to invest in products that will help in achieving long-term financial goals as all tax-saving investments have some lock-in period which may be from 3 years to 15 years depending upon the source of investment.

Buying insurance policies to save taxes

Many people purchase insurance policies to save tax. However, experts believe that insurance and investments should not be mixed and it is always advisable to purchase a term plan and invest the balance in instruments that offer decent returns.

ALSO READ | Income tax planning — 5 tips to do it before March 31

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

Macquarie’s Sandeep Bhatia has this ‘buy on dips’ level for the Nifty50

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

Listen to the Article (6 Minutes)

The markets have been on a downward slide and the past week saw the Indian benchmarks, Nifty50 and  BSE Sensex, end in the red on every trading day. Therefore, the question arises naturally if this is a good time to buy the dip.

According to Macquarie’s Sandeep Bhatia, yes, if the Nifty falls below 16,800. He reckons that India is an attractive investment destination for global investors, with its promising economic growth and abundance of potential opportunities.

In an interview with CNBC-TV18, Sandeep Bhatia, Head of Equity-India and Country Head-India at Macquarie Group said, “Short-term liquid funds may be the best way for the moment and wait for Nifty to fall below 16,800 levels and then look at this market – that’s the strategy.”

Also Read | Bajaj Auto shares top Nifty 50 loser after reports of cut in production

Despite the recent dip, India remains a leader when it comes to economic growth. With a large and growing middle class, a strong entrepreneurial spirit, and a government focused on economic reform, India is well-positioned to attract investment in a variety of sectors. However, there is a lot happening globally which is leading to the fall in Indian equities.

Talking about sectors, Bhatia said that as some sectors are facing challenges, others, such as the electric vehicle space are still positive for the long term. However, it’s important for investors to do their due diligence and take a long-term perspective when considering investments in the Indian market.

One example of a company facing export-related issues is Bajaj Auto. The company has been grappling with supply chain disruptions and a shortage of raw materials, which have impacted its export performance. However, this does not mean that all sectors are facing the same challenges.

“Some specific challenges are for Bajaj because of its export markets may face political uncertainty or issues; whether the entire export piece should be stayed away, I think the biggest export piece as we all know is the IT sector,” said Bhatia.

Also Read | Bajaj Auto brings back Pulsar 220F at Rs 1.40 lakh, bookings open

While banks have been the hardest hit due to events unfolding in the last few weeks, there are still sectors that remain positive in the long-term. For example, the IT sector has been a strong performer in recent years, and despite its current challenges, it is still an area that investors should consider for long-term growth. However, Bhatia pointed out, this is not a short-term trade and requires a long-term perspective.

He said, “As far as IT is concerned, I would remain positive, but it would not be a short-term trade.”

For more details, watch the accompanying video

Also, catch all the live updates on markets with CNBC-TV18.com’s 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