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Top market and economy voices on Tata-Mistry case, markets, scrappage policy, and more

Updated : March 26, 2021 08:33 PM IST

Here is what market gurus and industry captains said about the near-term trajectory on March 26, 2021.

 On Tata-Mistry Case | Cherag Balsara, Advocate at Bombay High Court:  As I see it the Supreme Court should have gone an extra mile and gone into the issue of valuation and put a final settlement between both groups. It can’t be that the shareholders are having 18.37 percent of the shares is left to litigate further in order to get an amicable settlement or a buyout of his shares. The Supreme Court has in fact created a further floodgate to litigation because there will always be litigation on what should be the quantum for these 18.37 shares, 18.37 percent shares of Tata Sons when that exercise could have been carried out by the Supreme Court, it would have taken a little more time, going that extra mile it would have put an end to one of the biggest corporate feuds in independent India.   Catch the conversation here.   
On Tata-Mistry Case | Cherag Balsara, Advocate at Bombay High Court: As I see it the Supreme Court should have gone an extra mile and gone into the issue of valuation and put a final settlement between both groups. It can’t be that the shareholders are having 18.37 percent of the shares is left to litigate further in order to get an amicable settlement or a buyout of his shares. The Supreme Court has in fact created a further floodgate to litigation because there will always be litigation on what should be the quantum for these 18.37 shares, 18.37 percent shares of Tata Sons when that exercise could have been carried out by the Supreme Court, it would have taken a little more time, going that extra mile it would have put an end to one of the biggest corporate feuds in independent India. Catch the conversation here. 
 On Stock Market | Amit Shah, head of equity research, BNP Paribas India:  I expect private banks, IT and auto stocks to outperform. Private banks make a very strong case for themselves because you see improving NIMs as well as lower credit cost. The overall restructured book is less than 100 basis points for the large banks. So private banks remains a great place to be in. The next sector is IT - the deal wins kind of leads us to believe that the IT sector will perform well in terms of revenue growth once again for FY22 and the recovery would be largely led by Americas. We believe that the passenger vehicle space, as well as the CV cycle, should continue to remain strong but two-wheeler space is something that we would like to avoid.   Catch the conversation here.   
On Stock Market | Amit Shah, head of equity research, BNP Paribas India: I expect private banks, IT and auto stocks to outperform. Private banks make a very strong case for themselves because you see improving NIMs as well as lower credit cost. The overall restructured book is less than 100 basis points for the large banks. So private banks remains a great place to be in. The next sector is IT - the deal wins kind of leads us to believe that the IT sector will perform well in terms of revenue growth once again for FY22 and the recovery would be largely led by Americas. We believe that the passenger vehicle space, as well as the CV cycle, should continue to remain strong but two-wheeler space is something that we would like to avoid. Catch the conversation here. 
 On impact of commodity cost inflation on Markets | Gautam Duggad, head of research-institutional equities, Motilal Oswal Financial Services:  Banking and financials, which makes 40 percent of the index and almost 30 percent of the Nifty earnings, don’t directly get impacted by rising commodity cost. However, there are sectors like autos, consumer staples, consumer durables and to an extent cement that may see some trimming of margins. But, I don’t think Nifty will have a significant impact because of commodity cost.   Catch the conversation here.
On impact of commodity cost inflation on Markets | Gautam Duggad, head of research-institutional equities, Motilal Oswal Financial Services: Banking and financials, which makes 40 percent of the index and almost 30 percent of the Nifty earnings, don’t directly get impacted by rising commodity cost. However, there are sectors like autos, consumer staples, consumer durables and to an extent cement that may see some trimming of margins. But, I don’t think Nifty will have a significant impact because of commodity cost. Catch the conversation here.
 On Stock Market | Gautam Shah, founder and chief strategist, Goldilocks Premium Research:  Stocks in the banking space, autos and capital goods are on the weaker side and there could be some opportunities on the short side. However, on the buy-side, we are more concerned about the defensives. IT, pharma and FMCG could standout and probably the places where investors can hide.   Catch the conversation here.    
On Stock Market | Gautam Shah, founder and chief strategist, Goldilocks Premium Research: Stocks in the banking space, autos and capital goods are on the weaker side and there could be some opportunities on the short side. However, on the buy-side, we are more concerned about the defensives. IT, pharma and FMCG could standout and probably the places where investors can hide. Catch the conversation here. 
 On Scrappage Policy | Manish Bhatnagar, managing director (MD) of SKF:  Scrappage policy announcement is a good intent. There are a number of wrinkles in that policy that need to be discussed with the industry. It is not as easy as the government is making out to be right now. We need to put a mechanism in place for scrappage. It takes time. There are certainly issues with the policy that the industry is uncomfortable with and should talk to the government about that.   Catch the conversation here.    
On Scrappage Policy | Manish Bhatnagar, managing director (MD) of SKF: Scrappage policy announcement is a good intent. There are a number of wrinkles in that policy that need to be discussed with the industry. It is not as easy as the government is making out to be right now. We need to put a mechanism in place for scrappage. It takes time. There are certainly issues with the policy that the industry is uncomfortable with and should talk to the government about that. Catch the conversation here. 
Published : March 26, 2021 08:33 PM IST
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