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UP election results 2022 highlights: PM Modi says UP win a lesson for opposition, 'vote for good governance, transparency'

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Manipur Election Results Highlights: BJP retains power in state, wins 27 seats in 60-member House

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Chart of the day: Jet fuel cracks crash in Asia as airlines cut back China routes amid COVID-19 outbreak

[wealthdesk shortname="PNB" isinid="INE160A01022" bseid="532461" nseid="PNB" sector="Banks - Public Sector" exchange="nse"]

Punjab National Bank (PNB) will report its financial results on Thursday. The public sector lender is likely to take a hit on profitability due to a treasury loss
— or a loss emanating from a fall in bond prices. Investors will closely look out for a stable margin and signs of sustained improvement in asset quality.

Analysts in a CNBC-TV18 poll expect PNB's net profit for the April-June period to come in at Rs 736.3 crore, which would mean a 28.1 percent fall compared with the previous three months.

They estimate the PSU bank's net interest income (NII) — or the difference between interest earned and interest paid — at Rs 7,534.1 crore for the three-month period. That would translate to an increase of 4.3 percent compared with the quarter ended March.

The analysts peg the bank's loan growth — a key metric of demand for lenders — to come in at two percent sequentially.

PNB's asset quality — measured by the proportion of bad loans in total loans — is expected to improve.

Punjab National Bank's financial results come in a tightening monetary policy environment, with major central banks having lined up aggressive hikes in COVID-era interest rates.

The RBI has raised the repo rate  — or the key rate at which it lends funds to commercial banks — by 90 basis points since early May. Its Monetary Policy Committee — or the rate-deciding panel chaired by the RBI Governor — is scheduled to meet next week.

<a style="font-size: 1rem;" href="http://www.cnbctv18.com/market/stock-market-live-update-share-today-nifty-sensex-maruti-tata-motors-bajaj-fin-14264072.htm">Catch latest market updates with CNBCTV18.com's blog</a>

Punjab National Bank likely to take 28% hit in profit — here's why

Nilesh Shah of Envision Capital views the recent correction in the midcap IT space as a good opportunity to enter, especially to investors who didn't have a good measure of investment in IT. In an interview to CNBC-TV18, he said: "Some of the Tier-II companies, which essentially are doing extreme cutting edge work, will see higher growth rates over the course of the next 2-3 years."

His remarks come at a time when the IT sector has taken a backseat in 2022 so far, after outperforming the market for much of 2021.
<table width="364">
<tbody>
<tr>
<td style="text-align: center;" width="161">Index</td>
<td style="text-align: center;" width="109">Return 2022 YTD (%)</td>
<td style="text-align: center;" width="94">Return 2021 (%)</td>
</tr>
<tr>
<td style="text-align: center;">Nifty50</td>
<td style="text-align: center;">-0.6</td>
<td style="text-align: center;">24.1</td>
</tr>
<tr>
<td style="text-align: center;">Nifty IT</td>
<td style="text-align: center;">-17.5</td>
<td style="text-align: center;">59.6</td>
</tr>
</tbody>
</table>
One sector that has largely remained insulated from the fallout from the COVID-19 pandemic is the IT space. It has only grown exponentially, as companies spearheaded the much-needed scale-up while riding the digital wave.

The current quarterly earnings season has been a mixed bag for the sector, with IT behemoths like TCS, Infosys and HCL Tech largely exceeding Street expectations on the revenue front. However, margins felt squeezed for most of the companies owing to wage inflation and attrition.

<img class="aligncenter size-full wp-image-13316822" src="http://cms.cnbctv18.com/wp-content/uploads/2022/04/Apr-28-IT-stocks.jpeg" alt="" width="796" height="575" />

However, this hasn’t deterred Shah the slightest from the IT space. He is of the view that the sector looks promising for the next 2-3 years. “Maybe 2-3 quarters will still continue to be challenging for the IT pack,” he added.

<a href="http://www.cnbctv18.com/market/stocks/stock-market-news-live-updates-nifty50-bse-sensex-axis-bank-maruti-wipro-sbi-cards-vedanta-brent-crude-bitcoin-gold-rate-13324032.htm">Catch latest stock market updates with CNBCTV18.com's blog</a>

Correction in midcap IT provides a good entry point: Nilesh Shah

Indian equity benchmarks Sensex and Nifty50 started Tuesday's session on a negative note tracking weakness across most global markets but made a comeback in the afternoon, helped by an across-the-board recovery. 

Broader markets also bounced back sharply, giving the bulls a sigh of relief.

Here’s what veterans have to say about the market

Shankar Sharma, vice-chairman and joint managing director of First Global

The market veteran told CNBC-TV18 that the market has to take a breather and there is still a long way to go before one should start to get seriously worried. According to him, what happened in the last few sessions was nothing more than a small correction.

“We have had a vertical rally in the last 18 odd months and where do we go from here? The short answer to that is that<a href="https://www.cnbctv18.com/market/market-correction-long-way-to-go-before-we-get-seriously-worried-says-shankar-sharma-11562722.htm"> we still have a long way to go before we should start getting seriously worried</a>," Sharma said.

Steve Brice, Chief Information Officer at Standard Chartered Wealth Management 

He believes this is the buying on dips environment in the market.

“Usually when you get to November through April, we see significant gains for global equities, so seasonally this is the strongest period of the year. We have been in an unprecedented environment for two years and seasonality hasn’t worked that well but overall we should continue to see volatility pick up but ultimately we do believe<a href="https://www.cnbctv18.com/market/recommend-buying-on-dips-positive-on-india-neutral-on-asia-standard-chartered-wealth-11547752.htm"> it is a buying on dips environment as we go into the end of the year</a>,” he said.

Within neutral allocation to Asia, he would be overweight India. He said, “We are neutral Asia as a whole. We still believe that US and Europe are going to outperform. Within Asia we still have preference for India. We believe growth dynamics there and also with COVID-19 vaccinations picking up etc – overall story is still pretty positive for investors.”

Also Read:<a href="https://www.cnbctv18.com/business/vedanta-a-risky-bet-if-commodity-cycle-turns-jittery-hindalco-better-placed-go-india-advisors-11561842.htm"> Vedanta a risky bet if commodity cycle turns jittery, Hindalco better placed: Go India Advisors</a>

Dipan Mehta, Director, Elixir Equities 

Mehta is positive on Vedanta. He believes the company is a good trading play at this point of time and the current correction may be a good opportunity.

“By and large, I am positive on Vedanta and a correction like this may be a good opportunity. But one should keep in mind that these are great trading stocks, you can hold them for a few months also, but not part of a core holding,” he said.

Harish Krishnan, EVP and Senior Fund Manager-Equities of Kotak AMC

He said equity is a long term asset. “I would imagine that the kind of corrections (market is currently seeing) made at the stock level or at the index level, do provide an opportunity for a lot of investors who are underweight equities as an asset class, to participate into the asset class,” he said.

Also Read:<a href="https://www.cnbctv18.com/personal-finance/new-age-businesses-buy-first-then-test-model-should-change-says-axis-amc-11563972.htm"> New age businesses: 'Buy first, then test' model should change, says Axis AMC</a>

He said the next 18 to 24 months are going to be a lot more polarized. He said it is unlikely to be what was seen in the last 18 months, wherein all stocks did well. 

“It is going to be somewhat of a stock specific kind of approach and therefore one will have to take very calculated bets going ahead to participate in the next 18-24 months,” he explained.

Sushil Kedia Founder of Kedianomics 

Kedia remained bullish on telecom stock. He said "they did not come down at all in this market correction. So we will continue to ride them with trailing stops," he said. 

Mehraboon J Irani of Gini Gems Consultants

The market expert too remained positive on the country's telecom story. "The question is whether you buy Bharti Airtel as a trading bet. The answer is: Certainly not. But if one has it in the portfolio, and one wants a proxy for the telecom sector, I think certainly one will continue to hold on to it. Will the stock be higher than where it is right now or the next one? Yes. They have taken care of the liquidity problem with the recent rights issue.” 

He said the tariff hike was also a welcome move and should definitely help the company as far as the incremental revenue to EBITDA goes. 

Catch all market highlights <a href="https://www.cnbctv18.com/market/stocks/stock-market-news-live-updates-bse-sensex-nse-nifty50-bank-nifty-bitcoin-price-gold-rate-sbi-bharti-airtel-latent-view-analytics-ipo-market-11559312.htm">here</a>.

Buy the dip or sell the bounce? Here's what experts advise

The United States Securities and Exchange Commission (SEC) said that it suspended trading in the securities of 15 companies on Friday because of “questionable trading and social media activity”. The latest step is the third and largest in a series of temporary trading halts in response to social media activity amid volatile trading in “meme stocks”.

One of the firms, Blue Sphere Corp — a penny stock — was recently highlighted in a report after its spike in value following a barrage of online posts.

Melissa Hodgman, acting director of the SEC’s enforcement division, has said in a statement that they proactively monitor social media for suspicious trading activities related to stock promotions. Frenzy on social media has increased retail interest in a range of stocks. This has led to volatile trading. The SEC is reviewing the market and trading data, the agency has said.

Some of the suspended stocks are Bebida Beverage Co., Ehouse Global Inc., Eventure Interactive Inc., and Eyes on the Go Inc., apart from Blue Sphere Corp.

The regulators ventured further into targeting penny stocks driven into price and volume frenzies by incessant social media pumping.

About 90 billion shares changed hands daily in February on venues operated by “over-the-counter” markets group, which added up to 1.7 trillion shares in the month, data compiled by Bloomberg Intelligence shows.

Blue Sphere is one such example that vaulted from obscurity to viral sensation.

Few days ago, SEC suspended trading in SpectraScience, whose shares had surged 633 per cent in 2021. An SEC order noted that while the company hadn’t filed reports in years and its phone number didn’t work, “social media accounts may be engaged in coordinated attempt to artificially influence” its share price.

Similarly, none of the companies suspended on Friday have filed any information with the SEC for over a year. Under the federal securities laws, the SEC can prohibit trading for 10 days and bar a broker-dealer from soliciting investors to buy or sell the stock again until certain reporting requirements are met.

US securities watchdog suspends trading in 15 stocks over hyped social media activity

The latest analysis and commentary by stock market guru Ajit Mishra of Religare Enterprises on what is moving the markets today.

Mishra’s stock recommendations for the day are:
<ul>
 	<li>Buy Berger Paints with a stop loss of Rs 495 and target of Rs 555.</li>
 	<li>Buy Biocon with a stop loss of Rs 335 and target of Rs 375.</li>
</ul>
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.

Market expert Ajit Mishra is positive on these stocks

In his latest analysis and commentary, stock market guru Mitessh Thakkar of mitesshthakkar.com shared his views on what is moving the market today.

Thakkar has been tracking the equity markets since 1999 and he regularly shares his views on stocks and indices.

Thakkar’s stock recommendations for today's trade:
<ul>
 	<li>Dabur India is a 'buy' around Rs 500 with a stop loss of Rs 490 and a target price of Rs 520.</li>
 	<li>Nestle India is a 'buy' with a stop loss below Rs 16,990 and a target price of Rs 18,200.</li>
 	<li>ICICI Prudential Life Insurance Company is a 'sell' with a stop loss of Rs 337 and a target price of Rs 310.</li>
 	<li>Wipro is a 'sell' with a stop loss of Rs 190 and a target price of Rs 178.</li>
</ul>
Follow stock recommendations by Mitessh Thakkar <a href="https://www.cnbctv18.com/author/mitessh-mthakkar-111/">here</a>

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.

Mitessh Thakkar's quick take on some handpicked stocks

In his latest analysis and commentary, stock market guru Sudarshan Sukhani of S2 Analytics.com shared his views on what is moving the market today.

One of India's best known technical analysts and a certified financial technician, Sukhani has been a full-time trader since 1993 and has participated in many investor camps throughout India.

Sukhani’s stock recommendations for the day are:
<ul>
 	<li>Divis Laboratories is a 'buy' with a stop loss of Rs 2,330 and a target price of Rs 2,450.</li>
 	<li>Bajaj Auto is a 'sell' with a stop loss of Rs 2,450 and a target price of Rs 2,250.</li>
 	<li>ICICI Prudential Life Insurance Company is a 'sell' with a stop loss of Rs 335 and a target price of Rs 315.</li>
 	<li>RBL Bank is a 'sell' with a stop loss of Rs 128 and a target price of Rs 110.</li>
</ul>
Follow stock recommendations by Sudarshan Sukhani <a href="https://www.cnbctv18.com/author/sudarshan-sukhani-159/">here</a>

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.

Sudarshan Sukhani recommends a 'sell' on these stocks today

Market guru Ashwani Gujral of ashwanigujral.com gave his top stock picks for Thursday’s trade in an interview with CNBC-TV18.

One of India’s most famous market analysts, Gujral has been a full-time trader of stocks and derivatives for more than 20 years and runs a technical analysis plus trading chat room.

Gujral's stock recommendations for the day are:
<ul>
 	<li>UPL is a 'buy' with a stop loss of Rs 340 and a target price of Rs 385.</li>
 	<li>Britannia Industries is a 'buy' with a stop loss of Rs 2,800 and a target price of Rs 2,910.</li>
 	<li>HCL Technologies is a 'buy' with a stop loss of Rs 470 and a target price of Rs 495.</li>
 	<li>Kotak Mahindra Bank is a 'sell' with a stop loss of Rs 1,190 and a target price of Rs 1,140.</li>
 	<li>Bajaj finance is a 'sell' with a stop loss of Rs 2,100 and a target price of Rs 2,050.</li>
</ul>
Follow stock recommendations by Ashwani Gujral <a href="https://www.cnbctv18.com/author/ashwani-gujral-115/">here</a>

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.

These are market expert Ashwani Gujral's top stock recommendations

The latest analysis and commentary by futures and options (F&amp;O) market expert Ashish Chaturmohta, head-technical and derivatives of Sanctum Wealth Management on what is moving the markets today.

Chaturmohta’s stock recommendations for today's trade:
<ul>
 	<li>Buy Dr Reddy's Laboratories with a stop loss of Rs 3,750 and target of Rs 3,940-3,980.</li>
 	<li>Buy Divi's Laboratories with a stop loss of Rs 2,350 and target of Rs 2,520.</li>
 	<li>Sell Eicher Motors with a stop loss of Rs 13,550 and target of Rs 12,800.</li>
</ul>
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.

Top F&O stock picks by market expert Ashish Chaturmohta of Sanctum Wealth Management

Market guru Prakash Gaba of prakashgaba.com gave his top stock picks for Wednesday’s trade in an interview with CNBC-TV18.

A Sebi-registered research analyst and trading mentor, Gaba provides equity research, short and long term stock recommendations and equity investment tips.

Gaba’s stock recommendations for the day are:
<ul>
 	<li>Buy Ashok Leyland with a stop loss of Rs 47 and target of Rs 53-55.</li>
 	<li>Buy UPL with a stop loss of Rs 335 and target of Rs 370.</li>
</ul>
Follow stock recommendations by Prakash Gaba <a href="https://www.cnbctv18.com/author/prakash-gaba-117/">here</a>:

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.

Market maven Prakash Gaba recommends a buy on these stocks

Nilesh Shah, Managing Director, Kotak Mahindra AMC, on Wednesday said that he has been bullish on the banking space due to the flows into the sector and going forward, "there will be higher yields on the portfolio".

“The real challenge for banking was not fundamental but from a flow point of view as most foreign portfolio investors were very large owners of banks, they had made a lot of money on these banks over the years and they were constantly selling. Slowly and steadily, the supply got absorbed as domestic investors kept on buying,” Shah said in an interview with CNBC-TV18.

<img class="aligncenter wp-image-14431002 size-full" src="http://cms.cnbctv18.com/wp-content/uploads/2022/08/Nilesh.png" alt="" width="742" height="373" />

Among the positive aspects are margins going up as a result of an increase in the interest rates while treasury losses have already been booked in the June 2022 quarter.

“Put all these things together, along with the consolidation happening in business, from a fundamental point of view, the banking sector looks good,” he said.

In the last one month, Nifty Bank has risen 9 percent as compared to the Nifty's gains of 8 percent during the period.
<table width="780">
<tbody>
<tr>
<td width="390">Stock</td>
<td width="390">Performance in one month (%)</td>
</tr>
<tr>
<td width="390">ICICI Bank</td>
<td width="390">12.4</td>
</tr>
<tr>
<td width="390">IndusInd</td>
<td width="390">25</td>
</tr>
<tr>
<td width="390">Axis Bank</td>
<td width="390">10.4</td>
</tr>
<tr>
<td width="390">PNB</td>
<td width="390">7.3</td>
</tr>
<tr>
<td width="390">Bank of Baroda</td>
<td width="390">12.2</td>
</tr>
<tr>
<td width="390">SBI</td>
<td width="390">4.9</td>
</tr>
<tr>
<td width="390">HDFC Bank</td>
<td width="390">4.6</td>
</tr>
<tr>
<td width="390">Kotak Bank</td>
<td width="390">0.4</td>
</tr>
</tbody>
</table>
Also Read: <a href="https://www.cnbctv18.com/finance/indian-banks-q1-review-strongest-growth-in-more-than-a-decade-14203062.htm">India's banking sector sees the best summer in 12 years</a>

India's largest lender <a href="https://www.cnbctv18.com/finance/sbi-stock-price-chairman-khara-says-deposit-rates-will-rise-but-with-a-lag-14405622.htm" target="_blank" rel="noopener noreferrer">State Bank of India (SBI)</a> on Monday said that it would benefit from improving margin due to a lag in deposit rate hike even as lending rates see a quicker transmission with an increase in the policy rate by RBI.

"All said and done, in the rising interest rate scenario, there is always a lag effect when it comes to the deposits and to that extent, the banks will certainly be benefiting from the situation," SBI Chairman Dinesh Kumar Khara said in an interview with CNBC-TV18.

On IT sector, Shah said that one will have to "look at the valuation and bottom-up story". According to him, IT still remains in an accumulation zone and one will have to select large-cap companies to build position during this phase.

He believes one will have to be prepared for extreme volatility in the new-age business companies.

“We are also learning how to value these companies. Every quarter these companies also evolve. There is a path to profitability but every quarter there will be adjustments. We have kept some positions in new-age companies, more from a learning point of view and over a period of time, we will be able to evaluate these companies in a far better manner like we value traditional companies,” said Shah.

One will have to pick the winner and cannot be sitting with the losers, he added.

Talking about inflation, Shah said that inflationary issues globally are leading to reduction in consumption but added that purchasing power in India is higher now as compared to the COVID-19 period.

“We do expect local consumption, albeit a little bit subdued, to slowly and steadily pick up with good monsoon and good farm income whereas global, led by Europe consumption, could be sluggish,” he said.

For the full interview, watch the accompanying video

<a href="https://www.cnbctv18.com/market/stock-market-live-update-share-today-nifty-sensex-coal-india-tata-consumer-14426072.htm">Catch the latest stock market updates with CNBCTV18.com's blog</a>

Here is why Nilesh Shah is bullish on banking stocks but cautious on the IT sector

Ace investor Rakesh Jhunjhunwala on August 8 said India is entering a golden period and the country could grow at 10 percent. Known famously as the big bull, Jhunjhunwala also said that credit demand, in general, will go up and fuel the growth in public sector banks. He's also bullish on the hospital space.
“India is going to enter a golden period and I see India growing at 10 percent,” Jhunjhunwala told CNBC-TV18 in an exclusive intervaiew ahead of the country's 75th Independence Day anniversary.
From Rs 2.7 lakh crore in 1947, India's gross domestic product (GDP) has increased to Rs 197.5 lakh crore in 2022. Likewise, India's foreign exchange reserves have increased from $3 billion in 1947 to $574 billion. Indian companies' market cap stands at $3,437 billion in 2022, from a mere $23.6 billion in 1988.
A firm believer in the India growth story, Jhunjhunwala also said the Indian markets will gain despite global developments, albeit at a slower pace.
On strategic bets in the Indian equity market, Jhunjhunwala said, "Public sector banks are what I am very bullish on because credit demand will go up and as a consequence pricing power of banks will go up. I am very bullish on the hospital space also.”
Meanwhile, Jhunjhunwala-backed low-cost airline Akasa Air took off on August 7 and the ace investor believes that <a href="https://www.cnbctv18.com/business/companies/akasa-promoter-rakesh-jhunjhunwala-says-frugality-will-keep-airline-competitive-14409622.htm">Akasa Air's frugality will keep it competitive</a>.
For the entire interview, watch the accompanying video

India entering a golden period and could grow at 10%, says Rakesh Jhunjhunwala

[wealthdesk shortname="HDFC Bank" isinid="INE040A01034" bseid="500180" nseid="HDFCBANK" sector="Banks - Private Sector" exchange="nse"]

Samir Arora, Founder &amp; Fund Manager of Helios Capital, says that it will be unrealistic to expect the market to keep up its current momentum. Benchmark index, the Nifty50, has recovered 8.6 percent in the past month. Arora reasons that the Indian markets have fared better than peers and so maintaining the current pace will be a difficult ask.

When it comes to stocks, the market veteran wants to stay bullish on HDFC Bank and still believes in the beleaguered Zomato which has recovered from its lows in the past month.

<img class="aligncenter size-full wp-image-14382022" src="http://cms.cnbctv18.com/wp-content/uploads/2022/08/Zomato-1-month-LG_Aug5.png" alt="" width="1920" height="1080" />

Speaking in an interview with CNBC-TV18, Arora said, “This company (HDFC Bank) will grow at the rate so that 15-17 percent for many years. In total life of, whatever, 26 years, if it has underperformed for 2 years. It at least deserves our confidence for a few more quarters than years, but it will come through. It may not be the best-performing stock, but if it does better than my overall portfolio, it’s okay.”

Arora believes Zomato "is a guaranteed survivor" and adds that he was happy with the listing price of the stock too.

Also Read: <a href="https://www.cnbctv18.com/videos/market/nifty50-15000-manish-sonthalia-fund-manager-zomato-auto-stocks-14354572.htm">‘Nifty won’t see 15,000 again’ – why this $1.2 billion fund manager is so confident</a>

“Generally with time, because the price has fallen, we can see other parameters doing well in terms of people's willingness to pay higher commissions... For now, I will not make a big story out of it. But it's a good thing for the next 6-10-12 months and we will see how it goes,” he analysed.

According to him, there is no reason to buy stocks in the auto space. He also said he would also stay away from the IT sector.

<img class="aligncenter size-full wp-image-14385112" src="http://cms.cnbctv18.com/wp-content/uploads/2022/08/Nifty-IT-1-month_Aug5.png" alt="" width="1920" height="1080" />

Also Read: <a href="https://www.cnbctv18.com/business/companies/zomato-keeps-preferential-price-unchanged-in-pursuit-of-blinkit-14380702.htm">Zomato keeps preferential price unchanged in pursuit of Blinkit despite lower valuation from EY</a>

For the entire interview, watch the accompanying video

<a href="https://www.cnbctv18.com/market/stock-market-live-update-share-today-nifty-sensex-rbi-policy-rate-hike-titan-14378442.htm">Catch all the latest updates from the stock market here</a>

Here is why Samir Arora is bullish on HDFC Bank and Zomato

Indian stock markets are up for the third straight week. In the last three weeks, Sensex and Nifty have gained 8 percent.

On CNBC-TV18’s special show Editor’s Roundtable, Gautam Duggad of Motilal Oswal Financial Services said he believes that most of the sectors will see sequential margin improvement going ahead.

“...because crude oil prices are down from their peak and other industrial commodities are also down 20-30 percent. So sectors like cement, auto, consumer, pharma, all of them should show sequential rebound in margins," he said.

He remains positive on largecap financials and the insurance sector.

“Largecap financial earnings have been extremely strong. ICICI Bank has been a consensus choice of all analysts but aside from that stocks like SBI, IndusInd Bank, Bajaj Finance, Cholamandalam have come up with good numbers. We also like the insurance sector. SBI Life remains our top idea and is part of our model portfolio.”

Watch video for more.

Motilal Oswal Financial Services expects most of the sectors to see sequential margin improvement

Is the worst over for the markets? Manish Sonthalia, Head Equities-PMS at Motilal Oswal AMC believes so and is confident that the Nifty50 will not see its low points in the near future.

“I am very emphatic in saying that the worst of the recession fears or inflation fears are behind us. Neither are we going to see 13,000 or 14,000 or even 15,000 on the Nifty. It's not a bear market rally. It is a market which will look up, quite substantially from where we are, in the next 2-3 years. It makes sense to be bullish than bearish," he said.

In fact, the $1.2 billion fund manager believes that the Indian stock market could give a 15 percent compound annual growth rate (CAGR) over the next 3 years.

Also Read | <a href="https://www.cnbctv18.com/market/zomato-big-block-deal-today-stock-declines-10-as-666-crore-shares-change-hands-14350452.htm" target="_blank" rel="noopener noreferrer">Zomato declines 10% as 66.6 crore shares change hands in huge block deals</a>

When it comes to stocks, Sonthalia is positive on Zomato and confident that things are incrementally looking up. He also believes that there is an upside room for auto and auto ancillary stocks.

For more details, watch the accompanying video

‘Nifty won’t see 15,000 again’ – why this $1.2 billion fund manager is so confident

Matt Orton, Chief Market Strategist, Carillon Tower Advisers, has said July had been a fantastic month, and he would not be surprised to see a pullback.

“The rally in July was fantastic. The S&amp;P 500 was up almost 10 percent, we saw breath start to increase across the market, earnings critically had been better than feared, and the Fed was neither dovish nor hawkish, which was enough to let the market start to rally higher,” Orton told CNBC-TV18.

<img class="aligncenter wp-image-14323912 size-full" src="http://cms.cnbctv18.com/wp-content/uploads/2022/08/nifty_july_aug_1.png" alt="" width="1920" height="1080" />

He said he would not be surprised to see more market pullback. “And that is what I have been telling our clients to wait for. Wait for the market to come to you if you want to add a little bit more exposure into your portfolios,” Orton said.

The Indian market has been outperforming the other emerging markets. Orton said it was encouraging that financials, consumer discretionary items, industrials, and energy sectors have been outperforming on a broad-based basis.

From a fundamental perspective, further easing in COVID-19 restrictions also adds a bit of fuel to the economy. If the dollar continues to weaken, that will certainly be a tailwind for the Indian market, the market strategist said.

“Though India is expensive relative to other emerging markets, I think the fact that breath is strong and that it has been outperforming the broader emerging market complex for some time it's not just a recent trend that gives me more confidence in the long-term uptrend for Indian equities. So, I would put Indian equities at the top,” Orton said.

Also Read | <a href="https://www.cnbctv18.com/auto/passenger-car-sales-july-maruti-suzuki-tata-motors-tvs-mahindra-scorpio-n-14319802.htm">Solid Mahindra Scorpio-N bookings help Street digest mixed monthly sales</a>

Here's how Sensex performed the past month:

<img class="aligncenter wp-image-14323572 size-full" src="http://cms.cnbctv18.com/wp-content/uploads/2022/08/sensex.png" alt="" width="1920" height="1080" />

Also Read: <a href="https://www.cnbctv18.com/economy/zero-probability-of-india-getting-into-recession-or-stagflation-says-finance-minister-nirmala-sitharaman-14328852.htm">Zero probability of India getting into recession or stagflation, says finance minister Nirmala Sitharaman</a>

Meanwhile, Manpreet Gill, senior investment strategist, Standard Chartered, believes there should be a balanced approach between equities and bonds.

“I think it would make sense to add some protection instead of changing fundamental portfolio positioning based on how one geopolitical event could go. To us, it’s still about what the broader economic cycle looks like, and that still draws us back to a balanced outlook on equities and bonds at the moment.”

He added that bond allocation could help, particularly if the risk ends up being larger than expected.

<iframe title="YouTube video player" src="https://www.youtube.com/embed/nhEAHD5caog" width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen"></iframe>

Gill said it was unlikely that India would go into recession. “Indian equities from an absolute good perspective. Growth can slow, but going all the way into recession does seem unlikely, going back through history,” he said.

Also Read: <a href="https://www.cnbctv18.com/economy/july-gst-revenue-collection-second-highest-ever-at-rs-149-lakh-crore-14321852.htm">July GST revenue collection second highest ever at Rs 1.49 lakh crore</a>

<a href="https://www.cnbctv18.com/market/stock-market-live-updates-share-today-nifty-sensex-itc-share-price-zomato-14332992.htm">Catch up on all LIVE stock market updates here.</a>

Don't chase the market on the way up, is the advice from this market strategist

Market veteran Shankar Sharma is of the opinion that the worst is over for the Indian stock market although some macroeconomic challenges still persist.

Sharma said, "I think the worst is behind for India as a market but I am not so sure it is behind for other markets. I think the worst is over in terms of the stock market part of India. For the macroeconomy part, there are still some challenges out there. Inflation is a bit of a smoke and mirror game in which nothing really comes down, it is only the rate of change that cools off because of the higher base effect and the market is seeing that and will start reacting to that eventuality. So for the Indian stock market, the worst is over."

According to Sharma, there is a clear bull market in the small-cap space. He said the market has probably given once in a 10-year opportunity to invest in the small cap end of the market.

Also Read: <a href="https://www.cnbctv18.com/market/madhu-kela-on-foreign-institutional-investors-fiis-private-banks-psus-state-bank-of-india-canara-bank-icici-bank-14045252.htm">Here's why market veteran Madhu Kela believes now is your chance to build a portfolio</a>

"The clearest bull market that I see is in the small caps and I think in the next few months you are going to take out the highs of January 2022 and go much higher than that over the course of the next 12 months or so. So I think this is probably once in a 10-year opportunity that the market has given us, especially for the small cap end of the market.”

Sharma believes that new-age companies are reverse compounders.

Also Read: <a href="https://www.cnbctv18.com/business/companies/zomato-share-price-aswath-damodaran-valuation-before-listing-on-bse-14279362.htm">This expert valued Zomato at current market price before listing — but no one was convinced</a>

He said, "New age companies are reverse compounders. In the 2000s, the then-new-age tech companies halved and then halved again till they were down 90 percent. In the current new-age companies, it seems exactly the same. So this is nothing new. The biggest problem for a lot of these companies is not that they were overvalued to begin with, they are overvalued even now and are overvalued even if they were to turn profitable.”

Watch the video for more.

Shankar Sharma believes that worst is over for Indian stock market

In the week gone by, it was the first week that the Nifty closed in the green after five straight weeks of a sell-off. The market is now down 11 percent from the high that it hit in October and there is a massive bear market across asset classes, not just in equities, but across the world of cryptos as well. What does then one do in this market fall?

In this episode of ‘Smart Money’, Benaifer Malandkar, Chief Investment Officer at RAAY Global Investments, talks about how one should approach the markets after this massive fall.

Malandkar said, “Systematic Investment Plan (SIP) is a very important part of asset allocation for most retail investors. At this point in time, when markets are actually giving an opportunity to kind of get in at better levels or maybe seek better investment entry points with a longer horizon in mind, I would definitely think that not only maintaining SIP is extremely important. But if there is spare money available, where you could allocate a little bit more, it would be absolutely prudent to increase the SIP allocations at this point.”

She added that investors should take a step back and sort of gauge if they are happier with a risk-return of the larger-cap funds or the mid-cap funds and "do a little bit of analysis into what would give them, let us say a moderate return over periods of time that they are looking to achieve, and then probably increase the allocation based on that understanding."

Watch video for more  

Also Read: <a href="https://www.cnbctv18.com/finance/investors-bet-big-on-sip-inflows-climb-30-to-rs-124-lakh-cr-in-fy22-amfi-13529772.htm">Investors bet big on SIP, inflows climb 30% in last fiscal: Association of Mutual Funds in India</a>

Prudent to continue or even increase SIPs on deeper market corrections: RAAY Global Investments

[wealthdesk shortname="ACC" isinid="INE012A01025" bseid="500410" nseid="ACC" sector="Cement - Major" exchange="nse"]

In an interview with CNBC-TV18, Rajesh Ravi, Institutional Research Analyst – Cement, HDFC Securities, said that price hikes are needed to maintain margin for the industry. He explained that cement companies need to hike prices by Rs 50 per bag in order to sustain their margins in the June quarter. However, he cautioned that while cement demand is strong, there’s a need to see if the proposed price hike can be absorbed by the consumers.

"Cement industry in the peak of Q4 could not take price hike partly because January demand was bad and late February onwards there had been price recovery. Given that most of the other commodities have already rallied significantly, cement prices haven’t shot up to that extent. And given that now the cost for the industry is staring to be at least Rs 600 high on a per tonne basis, there is nothing Rs 50 price hike which is needed just to sustain the Q4 numbers and if the industry has to go back to what it has delivered in Q1 and Q2 of FY22, another Rs 30 to 40 price hikes are needed. Now, will demand support that? I believe it has to be pushed through. So, I believe demand is there, the commentary so far is not disappointing, I will say, however, will companies be able to take another Rs 30 to 40 price hike? Obviously, there will be a lot of pull and push which will go through," he said.

Holcim Group, the world’s largest cement manufacturer, may exit India as part of a global strategy in a bid to focus on its core markets. The Switzerland-based conglomerate is currently considering a sale of its 63.19 percent stake in Ambuja, and 4.48 percent stake in ACC Ltd.

Also Read: <a href="https://www.cnbctv18.com/business/holcim-group-worlds-largest-cement-maker-may-exit-india-soon-how-this-will-impact-the-industry-13188342.htm">Holcim Group, world’s largest cement maker, may exit India soon; how this will impact the industry</a>

Ravi believes lower supply from Holcim Group in Indian cement market will be a positive for the industry. He believes that Holcim’s potential exit strategy is aimed at lowering its exposure to the cement space from 60 percent to 35 percent. He also added that it is unlikely that a big premium will be seen for Holcim’s cement assets.

"As far as the Holcim, the stock of Holcim selling off Indian asset, they have published a note recently and what we find is that Holcim has set a target to reduce its cement portfolio from 60 percent in CY20 to almost 30-35 percent odd by CY25. And in this context, they have also sold of assets and few other geographies - Brazil, they have exited, North Ireland they have exited and even Eastern Africa and Madagascar markets they exited. India being a big size, exiting it on one go may accelerate their target to exit Indian market and how will this impact ACC-Ambuja’s performances, it is early days to comment, but broadly what I understand is these M&amp;As can slowdown the renewed capex which ACC and Ambuja has been talking about so far. And that could be a good news for the industry. When two big players were talking about getting aggressive on the capex front, if they slowdown that would reduce the demand supply imbalance and support the industry," he explained.

Cement maker ACC Ltd recently posted its Q1 earnings. The company reported a 29.6 percent year-on-year (YoY) drop in consolidated net profit at Rs 396.3 crore for the first quarter ended March 31, 2022. The company, which follows a January-December financial year cycle, posted a net profit of Rs 563 crore in the same period a year ago.

Ravi believes ACC’s results were largely in line with the estimates. In fact, the company’s margin exceeded estimates owing to its continued focus on cost.

"ACC results are in-line with what we have been estimating for the industry trend in Q4FY22. Flattish volumes sequentially, flattish realisation, flattish volume year-on-year and there was a slight margin recovery as the overall cost could be contained to healthy cost control and because of fuel prices remaining stable in this quarter on an elevated way," he said.

Watch the video for the full interview.

Catch all stock market updates <a href="https://www.cnbctv18.com/market/stocks/stock-market-news-live-updates-nifty50-bse-sensex-hcl-tech-nestle-lt-tech-tata-elxsi-brent-crude-bitcoin-gold-price-13222162.htm">here</a>

Cement cos to face margin heat if price not increased by Rs 50/bag: HDFC Securities

HDFC twins have had a volatile run the past few weeks. Right after the merger deal between HDFC Bank and HDFC Ltd was announced, the shares of HDFC twins rallied, however, thereafter losing much its fizz.

Rising input costs, inflation, has been putting a dampener for many of the businesses. In fact, some of the fast moving consumer goods (FMCG) companies have had major headwinds to deal with.

However, Saurabh Mukherjea, Founder at Marcellus Investment Managers, remains eternally bullish on some of the FMCG names like Asian Paints and Nestle. He also believes no other bank remotely matches up to HDFC Bank.

In an interview with CNBC-TV18,  he shared his views on the FMCG sector as well as on HDFC twins.

Here are the edited excerpts:

Q: I wanted your thoughts first on some of your FMCG favorites, where there are some headwinds which are emerging now, names like Nestle and Asian Paints, which have been underperformers this year. And there have been some headwinds like the inflation and input costs hikes, etc. Your thoughts on whether this is a re-entry opportunity or whether these headwinds perhaps could put a bit of a break on the kind of compounding machines that they have been?

A: I don't see any issues there. I mean, let's take Nestle to begin with, it's compounded 25 odd percent for the last five years, perhaps a little bit more than that on share prices. Profits have compounded 20-23 percent and as we discussed on this channel, for many years, it's an obviously dominant player in a category that is anything but discretionary. I don't think baby milk powder is a discretionary consumption category, and given the sort of dominance it has, you might get from quarter to quarter, the management will agonize about cost pressure but when a company, which has a 90 percent market share, has utter dominance in a category, which is a compulsory purchase, you have to chuckle a little bit when the management talks about input cost pressure and you chuckle and you buy some more. So one of the relatively straightforward investments in India 70-80 percent RoCEs in a USD 2 billion category with barely any competition.

In case of Asian Paints, we have seen this again and again over the last 20 years, whenever crude doubles over a two year period, Asian Paints’ operating margins and gross margins hold on rock solid. Typically, when crude doubles, the speculators do exactly what they're doing, they try to sell Asian Paints and the shares rally very nicely. I think last 12 months, Asian Paints is again around 24-25 percent, long-term compounding has been like that last 12 months.

As we've said before, we're seeing rapid market share gains over the last four-five years and we carry on just buying more of this - both of these stocks every single day really. I can't see any reason why quarterly margin pressure should be any concern for a long-term investor.

Also Read: <a href="https://www.cnbctv18.com/videos/earnings/nestle-revenue-likely-to-grow-95-on-hikes-in-maggi-and-milk-based-product-prices-13213892.htm">Nestle revenue likely to grow 9.5% on hikes in Maggi and milk-based product prices</a>

Q: Let's get to the HDFC twins. I want to flip the question in terms of your thought process in HDFC Bank around a little bit and ask you what are your thoughts on why both these stocks have been sold recently and actually even before the entire merger etc, the run up and then the sell-off, the selling started much before that. Have you tried to understand what is going on the other side?

A: We don't spend time thinking about stock price movements. I know what you're getting at, you want me to get into a discussion on why our FIIs are selling. We honestly don't lose any sleep about that. We focus on businesses, we do a lot of work on underlying businesses and HDFC Bank as I've said, perhaps two weeks ago on your channel, that last five years have been spectacular, both sides of the balance sheet. They have blazed away 20 percent loan book compounding, 20 percent deposit compounding- no other private sector bank has remotely been able to compete with HDFC Bank on both sides of the balance sheet. Alongside that stellar asset quality management, again something no other private sector bank has been able to manage both on gross NPAs and on net NPAs and unsurprisingly, therefore, 17-18 percent RoE outcomes which again, no other private sector bank matches. So you have got to be looking at a class business. Similarly HDFC Limited, a 2 percent RoA, difficult to see too many NBFCs do 2 percent RoA at this scale.

You're bringing together two good businesses. It doesn't take a genius to figure out that the the merger is RoA accretive, bring  the two businesses which will together have comfortably a 2 percent RoA and it is EPS accretive. The NIMs (net interest margins) will go down because mortgages tend to have lower NIMs but that's not surprising. It's RoA accretive and EPS accretive because you're bringing together two very profitable businesses. And then if you get into the leverage, which is because the Reserve Bank of India (RBI) has lower risk rates on mortgages, I think HDFC Bank will be able to leverage up more once HDFC Limited is merged.

You should be seeing RoEs exceed the current 17-18 percent. HDFC Bank does so. 2 percent RoA stays but we lever up further because of the mortgage book that HDFC has, and you should see RoEs exceed and finally, growth should also go up because currently HDFC Bank hands over the mortgage book to HDFC Limited. As a result, HDFC Bank's growth is reduced by that because mortgages are run off on HDFC Limited’s book rather than on HDFC Bank’s book and as HDFC Bank holds on to mortgages, growth should also accelerate. So, two good franchises coming together, your RoE goes up, your growth goes up, I don't see why we shouldn't be buying more. In fact, we are buying more as we speak.

In all of these stocks, we hold many thousands of these and because I invest in Marcellus’ PMSs, I end up also owning these stocks. So in all of these stocks, I have an obvious self interest in talking about them and laying out our investment.

Also Read: <a href="https://www.cnbctv18.com/market/stocks/hdfc-hdfc-bank-merger-share-price-fitch-ratings-says-amalgamation-to-shake-up-sector-dynamics-13130652.htm">HDFC-HDFC Bank Merger to shake up sector dynamics: Fitch Ratings</a>

Q: This disclaimer is very important and thanks for pointing that out. But there is no denying the fact that some of these operation metrics like RoE and RoA are very strong, especially post the merger. But I think the question arises on the pre-provisioning operating profits, which have been on a slightly weaker side and the argument that one of the analysts was making is that, why should I buy an HDFC Bank with weak pre-provisioning operating profits, when I can perhaps look at something like an ICICI Bank, so it's sort of like a relative comparison. You wouldn't agree with that?

A: We have managed 9,000 families’ life savings. We have to back companies which have delivered decade after decade. We're not having a punt in the stock market staring at stock prices, following which broker is saying what, what are FIIs doing, what are DIIs doing, we're managing the life savings of 9000 families, we have to back companies who have delivered decade after decade in a stellar fashion. It's really important to understand that.

Now, I'm not saying ICICI Bank is doing anything less than impressive. I think Sandeep Bakhshi has done a tremendous job at ICICI Bank. But HDFC Bank's delivery over the last five years, over the last 10 years, over the last 20 years has been in a different league to any other bank, even in the last three years, let alone five years. Even in the last three years, you cannot see any other bank blazing away like this, both sides of the balance sheet, superb asset quality control, great RoEs, nobody else compares and therefore it's not a speculative punt that we have to get, we're here to back great franchises, which can compound our clients’ money at 20-25 percent over long periods of time, and give Indian families a good retirement. That's our job.

Our job is not to say whether ICICI Bank or Axis Bank or anybody else is better or worse. If somebody else wants to have a sort of speculative comparison, I'm happy to engage in that debate but that's not my job in terms of managing money for Indian families.

Also Read: <a href="https://www.cnbctv18.com/market/pick-sectors-carefully-as-inflation-macro-headwinds-playing-spoilsport-aberdeen-13197132.htm">Pick sectors carefully as inflation, macro headwinds playing spoilsport: Aberdeen</a>

Q: The other point, which has been raised is that for a lot of these financial institutions, it's about the active leadership and, of course, Mr Aditya Puri did a great job at HDFC Bank and Mr Keki Mistry at HDFC. But now, HDFC Bank has transitioned and Mr. Mistry also, perhaps, over the next two years or so, will retire. So the issue is, would the new leadership be able to take along this behemoth and continue to produce the kind of results that they did over the last five or six years or so. You don't think that's a worry?

A: We've monitored very closely, the succession planning that HDFC Bank did in the run-up to Aditya Puri’s retirement. We have monitored very closely how Sashi Jagdishan was mentored by Aditya Puri. In fact, I used to work in the building next door to HDFC Bank's headquarters at that time. So I got a pretty  close view of how assiduously, how carefully, Sashi Jagdishan was mentored and trained by the erstwhile CEO.

As I said, if you look at operating metrics from the time Aditya Puri left and from the time Sashi Jagdishan took charge, the operating metrics are stellar, and underlying on the ground performance; you cannot fault them. They are growing at a rate which I haven't seen any large bank grow anywhere in the world, forget India! To make a bank this scale to roar away 20 percent both sides of the balance sheet is a pretty big deal. And under Sashi Jagdishan so far, the delivery has been impeccable on asset quality and on growth. So yes, we look at these issues very carefully. Succession planning is a big priority for Marcellus. But so far, both in the run-up to Aditya Puri’s retirement and post that, once Sashi Jagdishan has taken charge. I think so far, he has delivered 10 out of 10.

Watch the accompanying video for more

Catch all stock market updates <a href="https://www.cnbctv18.com/market/stocks/stock-market-news-live-updates-nifty50-bse-sensex-hcl-tech-nestle-lt-tech-tata-elxsi-brent-crude-bitcoin-gold-price-13222162.htm">here</a>

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