Business

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

Updated : December 02, 2020 05:14 PM IST

Interest rates are truly moving down and there is no better tonic than low-interest rates to drive demand. The propensity to borrow recklessly has dramatically gone down over the years. The borrowers have learnt their lessons over the last 10 years and are now very conscious of their CIBIL score.

There is a need to expand private sector banking once the regulatory framework is in place. The banking sector as a percentage of GDP in India is on the lower side and unless we can increase the size of the banking system we will fall short in funding growth.

KV Kamath, former head of New Development Bank and ex-chairman of ICICI Bank

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We like Mahindra & Mahindra (M&M), Escorts and Tata Motors in the auto sector. Most of the positive surprise in autos is factored into the price. We also like IT sector and believe some of the negatives of Trump’s regime could be reversed. We will continue to remain overweight on financials. The focus will shift to midcaps as the economy recovers.

Sandeep Bhatia, Head-Cash Equities, India, Commodities & Global Markets at Macquarie Group

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We are seeing good traction both on the deposit side and on the loan side in the retail and MSME space. This quarter we are targeting a disbursement of more than Rs 10,000 crore from retail and MSME. This traction would continue. We are also seeing some small growth on the corporate side. Overall if we talk about the loan book growth, year-end we would be expecting something between 5 percent and 10 percent.

Prashant Kumar, MD and CEO, Yes Bank

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We should expect the markets to consolidate at these levels for some time, not expecting any significant downtick given the lower interest rate, high liquidity kind of scenario that we are in, but consolidation is something that we expect. For the markets to move up I think we will need to be surprised on the positive side and that surprise could come from Q3 earnings.

Prateek Agarwal, Business Head & CIO, ASK Investment Managers

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Financials is one of the place where significant degree of consolidation is happening, the stronger names are going to emerge with stronger than industry growth rates, better outcome and valuations there will give some margin of comfort.

This is a good time to introduce a smallcap fund as it’s an interesting space and area which requires a lot more research. This is a fund where we would look to have about 65-80 percent of funds to be invested in smallcaps and balance 20-35 percent of funds in midcap companies.

Vetri Subramaniam, Group President & Head-Equity at UTI AMC

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As we speak today, it is not like we have fully understood the slowdown, it is not like we have still understood the credit cost to the slowdown but fair to assume that it doesn’t seem as scary as what you saw the data coming in probably in April to June.

Starting from June, you started seeing the commentary starting to turn a bit more positive, you have the moratorium data which was a bit scary but then banks started telling us that we have started to pullback from the moratorium. We will watch the commentary coming from management but it is fair to assume that it doesn’t seem to be as bad.

MB Mahesh, Analyst, Kotak Institutional Equities

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Our goal is to be at the forefront of industry growth in terms of enterprise segment. Acceleration in communication will depend on scale up of 5G. The market is still evolving in terms of acceleration in digital transformation. We have a strong deal funnel and a steady velocity of deal conversion. We expect EBIT margin to inch up to stated goal of 15 percent.

Manoj Bhat, CFO, Tech Mahindra

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We have seen that cash purchase percentage has gone up which means that the tractors available for finance companies and banks start coming down and there could be some quality issue that could come over a period of time and that has been our past experience. Rural market has seen demand for all products and overall demand still remains positive. However, heavy commercial vehicles are not doing well because the investment is very high and supply with the operators are enough. So they are waiting a bit to see.

Ramesh Iyer, VC & MD, Mahindra & Mahindra Financial Services

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My choice in the two-wheeler space is Hero MotoCorp. Being the largest market leader it is continuing to do well. Probably somewhere gaining market share also. Maruti Suzuki is more specific passenger vehicle player and has a clear focus. That is why my preferred choices are Hero MotoCorp and Maruti Suzuki with an overall positive view of the automobile sector.

Kunj Bansal, CIO, Karvy Capital

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We are positive on Burger King India as the valuations are extremely comforting and as the outlets grow from 250 to around 350-400, a lot of operating leverage will also come in.

Gurmeet Chadha, Co-Founder and CEO, Complete Circle Consultants

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The trouble is still there in the bus segment otherwise the truck segment is equal to previous year's sales and our wholesale and retail are almost similar, so there is no gap between retail and wholesale. I expect a pick-up in construction and e-commerce segments. Heavy duty trucks still down 50 percent in first 8 months of this fiscal year.

Vinod Aggarwal, MD & CEO, Volvo Eicher Commercial Vehicles (VECV)

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We are focussed on power transmission. We are looking to do a little bit of solar but our main portfolio remains power transmission. Within that we have acquired several assets starting from state transmission asset, inter-state asset from Sterlite Power and now this which is again a regulated RoE inter-state asset. We are targeting approximately Rs 30,000 crore of AUM in next couple of years. It is a broad vision.

Harsh Shah, CEO and Whole-Time Director, IndiaGrid Trust

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We are pretty clear that we are going to stick to our core of creating differentiated SUV products. The recent launch of Thar is a classic example of that. We have a very strong booking pipeline and the waiting period is 5-7 months. We have done everything that we needed to do to ramp up the capacity and hopefully by January we would have significantly stepped that up. It is all going to play out in terms of how different companies manage their supply chains to be able to meet the demand.

Veejay Nakra, CEO-Automotive Division, Mahindra and Mahindra

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Retail is still struggling and unlocking process is on and economy is turning. Therefore, we expect we need to wait for another couple of months. Rise in commodity prices will have some impact. We will revise price considering the inflation in commodity prices.

Jitendra Adhia, President-Finance, Atul Auto

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The market look beyond 'dark winter' which is with or without the vaccine since it is not going to be deployed into mass population. However, the financial markets now are looking at a faster unlocking to make sure that the consumer can spend again. The faster that happens, the faster the GDP will go up and that would be a positive surprise that could make the market go up.

Bruno Verstraete, Partner, Lakefield Partners

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Broadly, there is a sector rotation which is expected to happen and we stay bullish on defensives, well as on midcaps and small-caps. Somebody holding banks, we are advising them to book profits if they are investors. As a trade obviously looks for key levels to get into and take those individual trades.

Rahul Sharma, JM Financial Services

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Irrespective of what happens to the telecom market structure, 5G will need a lot of telecom infrastructure. So maybe Bharti is taking a bet on the longer-term story as well. However, at the same time Bharti is a stellar in the tower company. They have suggested in the past that they would like to bring down their stake and improve their own balancesheet. So maybe it is more of trying to have a downside support and look for a large transaction with a reference value being created.

Rajiv Sharma, Head of Research, SBICAP Securities

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

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