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Here's what experts said about market, economy, Maruti Suzuki and Adani Ports on March 23

Updated : March 23, 2021 10:08 PM IST

Here is what market gurus and industry captains said about the near-term trajectory on March 23, 2021.

 On Indian economy | Ken Peng, Asia Pacific Investment Strategist at Citi Private Bank:  India is not a very export-driven market and what has happened is very domestically driven; you have bond yields that are completely inconsistent with 5 percent inflation and what that ends up happening is a lot of bond investors, yield seekers would go into equities and with that kind of a backdrop Indian equity market should be supportive - whether that is going to perform the wider emerging markets – I think it still depends a bit on the dollar situation.   Catch the conversation here.
On Indian economy | Ken Peng, Asia Pacific Investment Strategist at Citi Private Bank: India is not a very export-driven market and what has happened is very domestically driven; you have bond yields that are completely inconsistent with 5 percent inflation and what that ends up happening is a lot of bond investors, yield seekers would go into equities and with that kind of a backdrop Indian equity market should be supportive - whether that is going to perform the wider emerging markets – I think it still depends a bit on the dollar situation. Catch the conversation here.
 On AT-1 Bonds |  Lakshmi Iyer, CIO-Debt and Head Product at Kotak Mahindra AMC:  It is one category of the fraternity, which subscribers to these bonds where you could see tepid response going forward. However, if you see over the past whole week and even starting trading session yesterday, there has been the amount of buying appetite, non-MF volumes are not significantly high but that goes to prove that if credibility or the creditworthiness of the underlying issuer is not a concern, there are takers or buyers for these instruments. That is indeed positive news.   Catch the conversation here.
On AT-1 Bonds |  Lakshmi Iyer, CIO-Debt and Head Product at Kotak Mahindra AMC: It is one category of the fraternity, which subscribers to these bonds where you could see tepid response going forward. However, if you see over the past whole week and even starting trading session yesterday, there has been the amount of buying appetite, non-MF volumes are not significantly high but that goes to prove that if credibility or the creditworthiness of the underlying issuer is not a concern, there are takers or buyers for these instruments. That is indeed positive news. Catch the conversation here.
 Maruti on product price hike | Shashank Srivastava, ED-marketing and sales at Maruti Suzuki:  We are not passing the entire cost to the consumer. We can only pass on a part of the increased cost because it is difficult at this time when the market is recovering and it's getting strength month-after-month. Therefore, we should not compromise that by arbitrarily increasing or passing on the entire cost in form of price to the consumer. The price hike will be across the board... As far as quantum of price is concerned, we have not yet decided the quantum but it appears that because the input cost has risen dramatically, it is going to be substantial.   Catch the conversation here.
Maruti on product price hike | Shashank Srivastava, ED-marketing and sales at Maruti Suzuki: We are not passing the entire cost to the consumer. We can only pass on a part of the increased cost because it is difficult at this time when the market is recovering and it's getting strength month-after-month. Therefore, we should not compromise that by arbitrarily increasing or passing on the entire cost in form of price to the consumer. The price hike will be across the board... As far as quantum of price is concerned, we have not yet decided the quantum but it appears that because the input cost has risen dramatically, it is going to be substantial. Catch the conversation here.
 On Adani Ports | Sandeep Upadhyay, MD-infrastructure advisory at Centrum Capital:  There is still enough steam left in Adani Ports and Special Economic Zone. The current acquisition which they have announced on Gangavaram seems to be a deal which they have struck at about 9-times EV/EBITDA. I think there is still enough steam left in the stock because the stock continues to trade at a higher premium vis-à-vis 9-times. They will be trading at 12-13-times in terms of their forward multiples. I see 20-25 percent upside in Adani Ports over the next 12 months and expect more acquisitions from the group.  Catch the conversation here .
On Adani Ports | Sandeep Upadhyay, MD-infrastructure advisory at Centrum Capital: There is still enough steam left in Adani Ports and Special Economic Zone. The current acquisition which they have announced on Gangavaram seems to be a deal which they have struck at about 9-times EV/EBITDA. I think there is still enough steam left in the stock because the stock continues to trade at a higher premium vis-à-vis 9-times. They will be trading at 12-13-times in terms of their forward multiples. I see 20-25 percent upside in Adani Ports over the next 12 months and expect more acquisitions from the group. Catch the conversation here.
 On Container Shortage | Sunil K Vaswani, Executive Director (ED) of Container Shipping Lines Association:  The situation is not the same as it was a couple of months ago; in fact, it improved much more. We are practically close to getting normal. We are not normal as yet. Also, to our advantage is that the imports have increased and to bridge the gap between import and export we have been repositioning empty containers.   Catch the conversation here.
On Container Shortage | Sunil K Vaswani, Executive Director (ED) of Container Shipping Lines Association: The situation is not the same as it was a couple of months ago; in fact, it improved much more. We are practically close to getting normal. We are not normal as yet. Also, to our advantage is that the imports have increased and to bridge the gap between import and export we have been repositioning empty containers. Catch the conversation here.
 On US markets | Manpreet Gill, Head-FICC Investment Strategy of Standard Chartered Private Bank:  What still stands out to us is Jerome Powell, unlike the ECB, did not try to lean strongly against the rising bond yields. There is no reason for them to do so if the economy is doing okay, corporate bond markets are doing okay, and the dollar hasn’t surged in a very big way. The bulk of the move might very well be behind us but if you are looking at inflation and growth creeping back towards the 2 percent range, that is where – because the yields around where they are – potentially another 10-50 bps higher doesn’t look unreasonable. It is quite possible we will see markets test how far the Fed is willing to allow this to go.   Catch the conversation here.
On US markets | Manpreet Gill, Head-FICC Investment Strategy of Standard Chartered Private Bank: What still stands out to us is Jerome Powell, unlike the ECB, did not try to lean strongly against the rising bond yields. There is no reason for them to do so if the economy is doing okay, corporate bond markets are doing okay, and the dollar hasn’t surged in a very big way. The bulk of the move might very well be behind us but if you are looking at inflation and growth creeping back towards the 2 percent range, that is where – because the yields around where they are – potentially another 10-50 bps higher doesn’t look unreasonable. It is quite possible we will see markets test how far the Fed is willing to allow this to go. Catch the conversation here.
Published : March 23, 2021 10:08 PM IST
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