Tag: Indian stocks

2019 will be a positively trending year but don’t expect a run-away rally: Samir Arora of Helios Capital

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

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Samir Arora, founder of Helios Capital, spoke to CNBC-TV18 about his views on rupee, oil prices and how markets will likely behave ahead of this year’s general elections.

“2019 would be a positively trending year although not a run-away year rally initially. It won’t be a year when you have to be bearish form day one, so we are going in bullish,” he said, adding that even 2018 hasn’t ended on a bad note.

Arora mentioned that the strength in the Indian currency is a big positive for foreign investors. “Also fundamentals like GST, stable currency, lower crude prices etc are good but there is an upcoming event that is the elections, which has led to volatility in the past and could lead to this time as well. So until that event passes it is unlikely that the market will celebrate before,” Arora said on Tuesday.

Apart from elections and politics, one is seeing capex in a different form of companies buying distressed companies, said Arora. “If those that process has to work well then money will go into buying those assets, which is not effectively new capex per se but is making old capex more productive,” he said.

With regards to buying beaten up names, he said, “For us, it is a mix and match and may buy one or two beaten up names but that is not a strategy. It is diversification of different styles”.

“In general in India and the world the themes that have worked well in big picture long-term sense, which is not being shaken in India at least is financials and consumer,” he said.

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

Capital goods will be the sector of 2019, says Raamdeo Agrawal of Motilal Oswal

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

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Raamdeo Agrawal, co-founder of Motilal Oswal Financial Services, spoke to CNBC-TV18 about his expectations from next year and co-relation between oil prices and market performance.

“There are lot of positive feelings as we enter 2019 but one can expect some corrections as well in 2019 because usually a correction cycle lasts for 2-3 years,” Agrawal said on Monday.

“One should look from a five year perspective and if we can do another 11-12 percent in next five years compounded.”

According to Agrawal, “There is no real co-relation between oil prices and market performance. Oil may even go back to USD 85/bbl and we may still see Nifty at 12000-13000. But if one were to look from a 5-7 year perspective, then one can see some sanity come into the market, where earnings, PE multiples come to play.”

For Agrawal, the focus going forward would remain on a corporate performance. “There is every probability that in the next five years we will have earnings surge. Earnings basically come from two fundamentally large segments that is consumption and capex. On consumption, there is not much disappointment, and while going forward one may see surge in the capex as well, which will lead to earnings growth for lot of companies.”

The house is positive on real estate and expect consolidation in that space. Agrawal is not too pessimistic on IT companies and said the momentum could still be on their side.

“Going forward, one is looking at a lower interest rate scenario and hoping that the reforms seen in last five years continue,” he said.

According to him, the best time to buy good auto companies is now, when there is pessimism on the sector. “The future of the companies is intact although the present is challenged. The time to buy is when there is pessimism on the street.”

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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

Sectors like PSBs, insurance, healthcare will be big stories in next 1-2 years: Quantum Securities

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

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Sanjay Dutt, director at Quantum Securities, spoke to CNBC-TV18 about the stock market outlook for 2019 and his views on overseas inflows.

Dutt believes that the year 2019 will be the year for emerging markets (EMS) and more so for India.

According to him, “In 2018, India saw huge outflows from FIIs but the DIIs supported the market. In 2019, EMs would see some inflows because the matured markets have slowed down and are having some of their own internal problems and India being a strong domestic growth story would be a natural choice for FIIs to deploy money.”

“The other reason why India is poised for good 1-2 years ahead is because some of the fundamental reforms have fallen in place,” said Dutt.

According to Dutt, the big stories or sectors for the next one-two years would be capital goods, public sector banks, insurance and healthcare.

“PSU banks will start seeing better lending practices and recovery in NPAs. However, the only worry is that reforms in PSU banks are missing despite capitalizing”, said Dutt.

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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

Retail investors should not be timing the market, they should continue with their SIPs: Dalton Capital Advisors

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

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UR Bhat, director at Dalton Capital Advisors, spoke to CNBC-TV18 about the global market selloff and its impact on Indian equities.

“Domestic events like general elections and international issues like escalation of tariff wards, Brexit concerns in Europe, sanctions etc may impact flows into emerging markets,” Bhat said.

According to him, the global market sell-off may not be done yet because of continuation of tariff war, issues with respect to the shutdown of the US government still an overhang.

“So, in this kind of environment, capital preservation is the way to go,” said Bhat, adding that one can look at hiding in money market and if one has to be in equities then should likely be in domestic demand play like FMCG, private sector banks and industrials.

“You need to be in cash quite substantially if one has to negotiate this period of volatility that we see ahead,” he said.

According to Bhat, “A retail investor is the last man who should be timing the market. He should continue with his SIP investments but if HNIs or institutional investors are looking for short-term investments then they should better wait it out. However, for long-term investors every correction should be an opportunity to buy and create portfolio of good stocks.”

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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

Indian market is reasonably valued, creating interesting investing opportunities: S Naren of ICICI Prudential

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

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S Naren, CIO at ICICI Prudential AMC, spoke to CNBC-TV18 about the stock market valuations and shared his outlook on equities.

“From an investor point of view, this kind of an environment is superior to what it was at the start of the year because baring a handful of stocks in largecaps, midcaps and smallcaps, most of the market is reasonably valued creating interesting investing opportunities,” said Naren, adding that the correction looks healthy.

Talking about the outlook for the market, he said, “India has drastically outperformed all global markets last few months but there are interesting investing opportunities emerging.”

“The Indian market could remain volatile for the whole of 2019 due to both local and global reasons,” he said.

With regards to the IT sector, he said,”The long-term view looks good but one has to be very selective.  The next 3-5 years look good for infrastructure and capital goods stocks.”

Have you signed up for Primo, our daily newsletter? It has all the stories and data on the market, business, economy and tech that you need to know. 

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

Current market fall is more of a correction than a downtrend, says Motilal Oswal AMC

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

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Manish Sonthalia, head of equities-PMS at Motilal Oswal AMC, is of the view that the current market correction offers opportunity to buy rather than sell.

“So, the current fall is more a correction than a downtrend for the market, he said because things have changed for the better – oil prices have cooled of, liquidity issues are getting addressed, growth rates will pick up, GST collection are in vicinity of Rs 1 lakh crore, bond yields will stabilize and the Q2 earnings haven’t been a disaster also cut in earnings growth is par for the course,” Sonthalia said on Thursday.

“However, it is difficult to take a medium-term call on the market per se but it is addressing short-term issues as they come,” he said.

Talking about sectors, Sonthalia said the house is still positive on selective largecap and midcap IT. He does not think the valuations are expensive and expect high single-digit dollar revenue from the Indian IT sector.

Talking about the slowdown seen in the commercial vehicle segment, he said, “A lot of it is due to the liquidity issues for the past few months. Pre-buying on account of BS-VI is par for the course going forward in next 6-12 months but post 2020 there would be slowdown in growth for the segment.”

“On the passenger car side, Maruti will continue to be on the radar even though the next few quarters could be soft for them,” he said.

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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

IT companies will at best deliver single-digit growth in FY19, says Girish Pai

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

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Girish Pai, head of research at Nirmal Bang Institutional Equities, spoke to CNBC-TV18 about the fundamentals of the market and specific stocks.

“2018 has been fairly volatile, but I think this is par for the course kind of a situation for equities and asset class. If you look back in 2016 and 2017, we had a fairly unnatural situation where volatility was very low. I think what we are seeing now in terms of the fairly high level of volatility is natural,” Pai said on Wednesday.

Pai believes that the risk for Indian markets would come from global macros. “If you look back in history in the 2003 to 2008 kind of bull market, every year you had a 15 percent correction, 2-3 of them. So, if you look forward, the key thing to watch out for is global macro, how much of a tightening we will see in the US, how much of tightening we are going to see from ECB and Bank of Japan going forward. Indian macros are reasonably okay, I think we will probably see GDP growth come off in the second half of FY19, we will probably see lower rates going forward, earnings should pick up, but I think the big thing to watch out is global macro. I think that is where the risk is going to emanate from.”

Talking about specific stocks and sectors, Pai said, “IT services, in my sense, it is probably going to deliver you at best single digit growth in FY19. Some analysts are factoring in FY20 to be better than FY19. My sense is it is going to be worse. We are saying that FY21 we could see an industry slowdown, a negative growth happen for the industry in FY21 because we think that the US growth is going to stall by then.”

Pai recommends choosing high quality stocks across various sectors. He said, “Financials which is the largest weight in the index, high quality retail financials, high quality corporate banks which could be private banks, we have seen a lot of poison go out of the system in terms of the NPAs. I think an ICICI Bank and some of the others, private corporate banks could be good. Consumers could be a good area to get into, consumer staples, consumer discretionary good area. Valuations look very expensive right now, but you will probably see only P/E multiple contraction; you can live through that.”

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.

Have you signed up for Primo, our daily newsletter? It has all the stories and data on the market, business, economy and tech that you need to know. 

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

Corporate earnings likely to take precedence over elections, says Reliance MF

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

Listen to the Article (6 Minutes)

Sailesh Raj Bhan, deputy CIO – equity investment at Reliance Mutual Fund, is of the view that the corporate earnings would take precedence over elections going ahead.

“In my judgement, earnings play is still yet to be visible and played out in Indian equity markets and that is a critical play in three years leaving aside the volatility that elections might induce,” Bhan said in an interaction with CNBC-TV18 on Tuesday.

Bhan expects earnings to improve going ahead. “Last 3-4 years were bad for Indian earnings on the whole but now we are seeing they are starting to improve and so investors need to focus on the fundamentals on the ground than one or two macro tailwinds.”

Talking about the portfolio strategies ahead of key state elections and general elections, he said, “Investors should not miss out on opportunities for the next three years, for the next three months because of volatility due to elections, especially investors looking at longer term equity participation. In fact, the volatility that exists today is creating opportunities for people to participate.”

“Consumption space is a strategy because that space is very relevant from an India point of view and so the opportunity for consumption space remains. However, certain pockets like staples are still expensive and other sub categories of consumption like autos, durables are far more attractive. On the whole consumption remains a solid long-term India strategy because it has all the three drivers like premiumisation driver, the penetration driver and the new category driver,” said Bhan.

With regards to the banking sector, he said. “We prefer the corporate lenders because they have strong CASA deposits and have capital for growth. Moreover, the space is undervalued and so an attractive opportunity.”

On the pharma space, Bhan said, “The focus should be on whether the businesses are doing well and if they are rightly positioned for the next few years. Lot of companies are working to correct their cost structures, their focus areas, improve productivity of R&D, he said. In the last five years with an exception of 1-2 years, a lot of these companies have been growing at 20-25 percent but now the reality is that they will growth at 12-15 percent and so their cost structures need to be realigned.”

“The longevity of Indian pharma businesses is very good and hence sector is well positioned for growth. Moreover, the domestic business is underrated,” he said.

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