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Here's what key voices from the world of business and markets told CNBC-TV18 today

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Here is what market gurus and industry captains told CNBC-TV18 today on how they see the near-term play out

Here's what key voices from the world of business and markets told CNBC-TV18 today
US elections will have a short-term impact on the market but as long as the festival season continues to spurt demand and push recovery ahead, the market will be supportive. IT stocks are expected to sustain current valuations. Lack of normalcy returning to the economy will push investor allocation towards IT stocks which can sustain the valuation.
An interesting space that is emerging – is somewhere at the upper end of midcap IT companies where we are seeing margin expansion coming on the back of moving into newer areas and that may result into sustaining of valuations even in the upper end of IT companies along with large-cap IT companies.
Nilesh Shah, Managing Director, Kotak Mahindra Asset Management
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I believe that in the next 2-3 years, markets will go back to high single digit or low double-digit rate of growth for many sectors. The outlook for frontline stocks looks very good, which will keep markets supported. In the near term, the market’s performance would depend on the demand situation. I am fairly optimistic about demand. I don’t expect demand to come off sharply. But it is not clear whether the recovery is due to pent-up or normalisation demand.
Chandresh Kumar Nigam, MD & CEO, Axis AMC
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It would be our goal to try and see how do we get to double digit growth in the next year in the enterprise segment. I think we have seen bottoming out of the manufacturing, we have seen BSFI doing fairly well for us and the other verticals like retail and healthcare are also doing okay so most of the components are doing well.
Manoj Bhat, CFO, Tech Mahindra
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The expected recovery in two-wheeler sales during the festive season may have come a cropper, especially in the low-end 100cc segment. The sales for the company’s 100 cc motorcycles were down 30 percent even as premium motorcycle sales witnessed growth. 3-wheeler sales were at 40 percent of last year. In the month of September, we exceeded exports of 200,000 vehicles. It was a record for us.
Rajiv Bajaj, MD, Bajaj Auto
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The Q2 standalone EBITDA per tonne at Rs 10,140. It’s strong on higher volume, better sales mix and higher realisations. Domestic steel prices are at 5-6 percent discount to landed imports. Exports of iron ore in the first six months of this half year is more than doubled. So that is a bit of a concern. The domestic industry is suffering of lack of iron ore as a lot of exports are happening from India.
Seshagiri Rao, Joint MD & Group CFO, JSW Steel
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If we don’t have any negative surprise from the pandemic, our second half would be much better. The bank is seeing better demand from the market in terms of credit. The bank has also been able to bring in large number of new customers. We have opened almost 60,000 new accounts on the current account/savings account (CASA) side during September and we are targeting to take it to 1 lakh new customers adding to bank every month and we are going to achieve this by December or January. We have disclosed the entire overdue book, which is overdue for more than 30 days. That is something around Rs 9,000 crore which is 5.5 percent of our loan book.
Prashant Kumar, MD and CEO, Yes Bank
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The total aggregate claims that the industry has seen in the six months is roughly about 3.24 lakh, for us the number is at about 17,000 which is largely in line with our market share. The cause of concern, however, is largely the rate at which the claims have climbed. If we see the October number, the number seems to be plateauing, in fact tapering a bit.
For the first half, motors numbers were weak. We are reasonably optimistic about the festive season sales. As private car sales looks to be positive to us, commercial vehicles (CV) is still muted but improving, two-wheelers still not at the same levels as we would have liked to see it.
Bhargav Dasgupta, MD & CEO, ICICI Lombard General Insurance
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We see 2-4 percent growth in the next few quarters. The company is operating at margin lower than historical levels. The company’s focus is on certain kinds of customers and larger deals in technology business. We will continue the same on the technology business. On the alliance side, it’s a business that is focused around IBM and a few other alliance partners and we are seeing a healthy traction there as well.
Sandeep Kalra, CEO & ED, Persistent Systems
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Everything is based around the interpretation of two regulations which unclear in terms of whether you need prior approval of unit holders or not. The High Court has said that indeed it requires prior approval if unit holders if you want to wind up a scheme in a premature manner so given that interpretation I think everything they have done till now will be subject to unit holders approving that process. The Securities & Exchange (SEBI) should redo the entire process in its regulation so at least going forward there is clarity in for both the unit holders and mutual fund how to process these kind of situations.
Sandeep Parekh, Founder of Finsec Law Advisors
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Roll back of salary cuts, wage hikes will boost household demand. We need to see if pay hikes translate into higher consumer spending. There are footfalls but we are getting very mixed signals from various dealer checks and company site information. We are getting positive but yet not as positive.
Upasna Bhardwaj, Senior Economist, Kotak Mahindra Bank
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The B2C revenue has significantly increased, within B2C there are two sub segments one is FMEG segment and we have recorded a 25 percent growth there. Another thing B2C retail wire business has recorded a good healthy double digit growth. Both of these things are getting reflected in our contribution as well as in profitability. The exports business has significantly improved. We wanted to ensure that exports on sustainable business contribute 10 percent to our topline and which is what we have achieved this in our quarter
T Jaisinghani, CMD and Gandharv Tongia, CFO, Polycab India
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There has been a good run in Nifty and though the results have been good they have been good in pockets. While the sales have been bunched together in this particular quarter which has resulted in the better profitability, but the cost cut which possibly are not very sustainable also had its impact on amplifying the profits on an overall basis. Taken all this together I feel that maybe we are in for some more correction for some more time, as well as Index wise there will be a good correction maybe over next 3-5 weeks is what possibly looks at the moment.
Dilip Bhat, Joint MD of Prabhudas Lilladher
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I believe that bank stocks would continue to outperform throughout the current quarter, especially with clarity from government on interest waiver and likely uptick in the economic activities. However, if there is elevation of NPAs around Q4 then there could be some correction.
Amit Khurana Head of Equities at Dolat Capital Market
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There is no doubt that the economy is seeing a rebound right now which was faster than we expected. It is a result of opening up of the economy, there was a pent-up demand which is getting met right now and the rural economy doing somewhat better than the urban. This kind of a pick-up has been seen in other economies as well. I believe the second quarter is looking somewhat better than what was expected.
DK Joshi, Chief Economist, CRISIL
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Two weeks ago, we were positive that we will see good demand. We are seeing 25 percent sales growth month-on-month. We are very satisfied and the sales are more than we had hoped for. We hope that the demand momentum will continue in October and November.
Martin Schwenk, MD & CEO, Mercedes Benz India
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If we have regional or targeted lockdowns or lockdowns that are based on time as we have introduced here in United Kingdom, bars and pubs are closing much earlier than they used to in the past, well then there will be some downside in the recovery from that, but it won’t be nearly as extreme as during Q2 when there was a sudden comprehensive lockdown.
Arnab Das, Global Market Strategist, Invesco

Market Movers

CompanyPriceChange%Gain
Maruti Suzuki7,265.40 365.50 5.30
UPL802.50 30.30 3.92
Shree Cements29,239.05 1,013.70 3.59
Wipro556.55 14.40 2.66
SBI Life Insura1,007.00 25.45 2.59
CompanyPriceChange%Gain
Maruti Suzuki7,263.75 362.25 5.25
Larsen1,499.15 32.25 2.20
UltraTechCement6,856.50 75.25 1.11
Bajaj Auto4,221.25 38.60 0.92
TCS3,300.65 28.20 0.86
CompanyPriceChange%Gain
Maruti Suzuki7,265.40 365.50
UPL802.50 30.30
Shree Cements29,239.05 1,013.70
Wipro556.55 14.40
SBI Life Insura1,007.00 25.45
CompanyPriceChange%Gain
Maruti Suzuki7,263.75 362.25
Larsen1,499.15 32.25
UltraTechCement6,856.50 75.25
Bajaj Auto4,221.25 38.60
TCS3,300.65 28.20

Currency

CompanyPriceChng%Chng
Dollar-Rupee74.36500.26500.36
Euro-Rupee88.50600.18800.21
Pound-Rupee103.48900.22600.22
Rupee-100 Yen0.6714-0.0002-0.04