Nifty Around 23,440, IT & Metals Drag, FMCG, Auto, Consumer Durables Upbeat | CNBC TV18

Añadido: 2026-06-07

[00:00:10]Good morning. It's time for trading hour. We are coming to you live from the CNBC TV8 Motila Los Studios. I'm Hormas Fataka and since we are gearing up for the big day, big day requires big people. Ritu Singh is right here with us. Ritu, good morning. Well, the markets are staging a bit of a recovery from the lows of the day, but then that elusive big move on the upside still remains missing.

[00:00:29]>> Yes, and we hope to see that. A lot of it will depend on what comes out of the policy tomorrow. There's already we've been reporting today that the government may reduce some taxation as far as foreign investors are concerned and their investments in government bonds.

[00:00:41]Whether that comes through or not, the market's going to take that positively.

[00:00:44]And of course, the big cues will come from what happens in the RBI policy. Our poll is throwing up a status quo. With that said for the frontline index uh you know it's been flatterish now you know trading with gains of about 23 points.

[00:00:55]Uh you have the advanced decline ratio that tells you that more than two stocks are advancing for every one stock that is declining on the national stock exchange. The bank nifty uh above the for 54,300 mark now trading with gains of about 190 points as we speak and the broader markets as well uh you know doing relatively better. Um so let's go across uh to Hormma's uh in just a bit we'll get you the top stocks that are trading. Um let's also uh you know do one thing tell you the sectors that are doing relatively better today. Among the top performers is is uh the auto and the mid select pack and the weaker pack is of course it but for now let's cut across to the city conference. Jane Fraser is speaking at the moment. Let's listen >> that you know he said everything is not rosy.

[00:01:37]>> There are few challenges but then he had a very clear vision and thought in terms of like you know what are the few priorities that the government is focused on. Yeah, >> you talked about energy security clearly that is something that you know the government is super focused on. uh you talked about uh digitization that is something that is very core to his heart >> and like you know the amount of work that the country has done on that front and the businesses that have been built on top of the India stack and the way in like you know these people have gone and raised money this is all credit to the >> prime minister's vision in terms of like you know putting the entire business uh in place >> he's pretty good at execution too >> absolutely and then also when you talked about your trip across Rajasthan seven years back >> on the glass panes that you saw and he said that you know when he was a young kid he was always thinking about how to and he said in Hindi how to convert Ristan to a money-m uh proposition and uh and and then he went on to explain in terms of like you know how the renewable energy focus is and how that has basically made India self-sufficient from an energy perspective >> so I think I quite like the vision I like the transparency and >> but it's grit as you say gritty and grounded not high flutin. Um and uh that that I think is you should give everyone confidence and a lot of comfort.

[00:02:58]>> Certainly did for me.

[00:03:00]>> Yeah.

[00:03:01]>> Uh you've been traveling quite a bit uh Jane.

[00:03:04]>> Uh and I know that u you were in France um earlier earlier this week and I know that you'd met uh President Macarron.

[00:03:11]Yeah.

[00:03:12]>> Uh there is a G7 meeting that is u happening later this month and in fact prime minister Modi mentioned that you know he's going to be part of that G7 meeting.

[00:03:22]>> Unfortunately like know we are we are living in a very volatile world. There is a war happening in Europe. There is a war happening in Middle East. Tariff is still uh overhang that is yet not gone away. So from your perspective based on your interaction with President Macarron and other leaders, what are the big priorities that you know we are focused on? What are the few things that G7 is going to cover when they meet later in June?

[00:03:47]>> Um I had the the privilege of um spending some time with President Mron.

[00:03:51]I asked him what's he hoping to get because they're the president. They have presidency of the the um G7 summit and of course Prime Minister Modi and President Mron are are pretty close. Um so um the I think rightly he will focus the G7 on global imbalances right there are a lot around the world at the moment um and talking about what are we going to do to do about it um and um the Middle East will come up within that um some of the tariff situations the dynamics between um the US and China will be in there um but it's also that broader group of allies eyes together.

[00:04:33]Um, which I think will bring some balance to the discussion. It's not just the US China discussions, but it's much more about what else is going on and what else is everyone doing about it.

[00:04:46]And we had our investor day recently and I was I was telling the president one of the lines our head of markets had down is um in investing the only free lunch is diversification. And I said it's not a free lunch but it's a very important part of what everyone needs to be driving to. And the um the re the recent uh trade agreement between the Europe and India maybe a point of pride for India but it's really important for Europe. Um and so there's a lot that can be done through diversification.

[00:05:18]uh and they'll be talking about how to try and make that real as well as talking about how they try and get the upside from AI, not just the challenges.

[00:05:27]>> All right, so that's Jane Frasier, the global CEO at City. We'll keep getting you excerpts from that interesting conference that's going on today. But for now, let's get back to the markets.

[00:05:36]We just slipped into the red. The frontline index now 23,389.

[00:05:40]It's trading with cuts of about 16 points as we speak. Uh we'll go straight across to Hormas who's at the wall to tell us about the top movers and shakers.

[00:05:48]>> The markets are choppy. Yes. But I'll tell you the good part. Earlier this morning we were mentioning the fact that the Nifty has a bit of a problem for the last six sessions. The index has been making lower lows every single day.

[00:05:58]Today it's not the case. Today's low is around 23 250 odd. So we have managed to defend yesterday's low of 23151.

[00:06:08]If that streak of lower lows gets broken today, that will be viewed as a positive for the market. Indeed, even if we don't go anywhere significantly from these levels as well, the fact that we have stopped the lower lows, that can be viewed as a positive. Now, leading this recovery from the morning has been the nifty bank. Although that too saw a majority of its move play out in yesterday's session itself but today too has seen a bit of a 350 400 point recovery that you have seen from the lows of the morning and now we are trading at around about 54200. So we are holding on to the 53500 support as well on the nifty bank uh this morning. So the wicks as well the the weeks was up around about in yesterday's session.

[00:06:47]Today not doing much in uh today's session still holding on to levels of around about 16. You take a look at the banking names also that have contributed to this recovery from the morning. We spoke about SBI yesterday in our uh deliveries segment in closing bell. Look at the stock is extending its gains now a percent and a quarter higher. ICICI bank too after a positive note that came in from Motil earlier in the morning that's two is doing well today. It well the expectation was that we might have another round of sell off but that's not the case even after the ADRs of Infosys and Vipro ended lower overnight. called Oracle, Tech, Mahindra and Cooffort are all trading with gains and no significant moves seen in Infosys and TCS as well on the downside. Uh look at the news makers in uh today's session.

[00:07:32]JBM Auto extending yesterday's gains 5 and a half% higher on the stock. PNB Guilds too a similar quantum as is Finance. We'll hear from the management shortly as well on the show and AC companies Voltars, Blueest Star both of them doing well but of course there is anticipation of the monsoon being declared as arrived uh in the country uh in about uh in in today as during the course of the day but metals as a segment is sulking Nalco sale NMDC steel NMDC steel of course is seeing some profit booking but Nalco and sale seeing losses of anywhere between 3 to 5%. And lastly, stocks at 52-W week highs. Well, there is no stopping HFCL. That stock is now at 207. Another 4% added. There is no stopping Sterlite Tech either. From 170, the stock has now moved to 650.

[00:08:17]In the last 41 sessions, almost 20 of them have been upper circuits of 5%. And Loris Labs too is now well over the mark of 1400. Another 2% higher. Another 52 week high for the stock. and Lauras Lab up 22% in the last one month and 40% or so in the last six months. But uh let's shift focus to another stock Idea Forge which has pushed high in trade locked in a 5% upper circuit after the company's boarded fundraising plans. Let's go across to Ria for more details on this one. Ria 500 crores and a 5% up move.

[00:08:48]>> Well yes uh the stock has been locked in an upper circuit of 5% uh right since the start of this trading session and the company has announced a fund raise of 500 crores. Now they haven't disclosed uh the timeline of the fund raise but they have said that this can be executed uh through various means including a preferential allotment private placement or a QIP and could be done in one or more trenches and further they have not disclosed where the funds will be deployed. So that was something that will be watched closely going forward and apart from this there was also a report earlier today that India is likely to order more than rupees 20,000 crores worth of military drones from domestic firms this year. So on the back of this uh drone makers including Idea Forge are performing well in today's uh trading session and earlier this month the company had also reported a very strong set of numbers in quarter 4 and uh Q4 and FI26 in fact marked a turnaround uh uh for the company in terms of profitability and the outlook also remains quite strong for FI27 and uh the stock has been performing quite well in fact on a year-to- date basis the stock has nearly doubled and today as well we are seeing a big move on the stock >> uh well 900 now on uh IDA forge back above its uh IPO price as well. So doing fairly well. Most of those gains of course have come in the last couple of months now from levels of 370 the stock is now at 900. Ria, thank you for that. And just before we move on, highlight physics walla as well. Uh I haded to highlight that in the stocks that are making news. Uh that stock is now up over 10% as we speak. And that's of course the company made an announcement just a few minutes back that they are going to reverse their student lending program by doing it themselves and instead they will now partner with third party NBFCs to carry out the same and therefore the stock is now reacting 10 and a half% higher on physics of course below its issue price issue price is 111. Of course the stock was seeing some bit of selling pressure over the last couple of days but now has seen a sharp reversal from those lows.

[00:10:44]Now the market of course is awaiting some tax rule changes for foreign investors that are investing in government securities. This news has been going around for a while now. Let's go across to Sapna Das to tell us what she's picking up from her sources. Sapna over to you.

[00:10:58]>> Yeah. Most so basically this is uh you know more or less widely expected and most likely uh the important cabinet meeting held yesterday under the leadership of the prime minister Mr. Modi. uh I think uh an inprincipal decision has been taken to issue an ordinance to make some important uh key tax changes uh as far as the FI investments in government securities are concerned. So primarily of course a big ask has been this withholding tax which was brought back to 20 odd% uh after being cut to 5% in 20 I mean uh that period was there to 2023 I think it was a 2-year uh you know kind of a relief measure that had been given and then was rolled back at 20%. So my sense is that big demand that is coming in from market participants is the fact that you know this is basically taxing your earnings right so whatever interest that they earn 20% uh with tax is pretty steep is that has been the feedback uh so most likely government has taken decision to do away with that not just that they're also going to understand that the capital gains tax and a half% again uh as far as investments in GX are concerned this is all to do with GX specifically uh that also will do will go away so in in in a nutshell if there any other tax uh that is there as far as GEX are concerned uh regarding FI exposure. So all of that is going to be taken away or rather has been agreed to be taken away and we have to wait and watch and see. Uh most likely it's going to come through an ordinance because the parliament is not in session and my my my reading is that once the session of course starts the ordinance will be replaced by a proper amendment with the IT laws. So this is what it is. Of course there have there has been a lot of talk on this one since last few weeks. uh and it seems as if finally the government has taken an in principal decision and now we have to just wait for the uh dates to be announced as to when this actually rolls out and um you know uh take the impact uh from there on.

[00:12:48]>> Okay, thanks very much Sapna. Uh important development there the market's waiting for. We also have of course the RBI policy tomorrow. So we'll have to see if uh the Reserve Bank of India also steps in with some measures. But for now we slip into a short break. Up next, we're going to focus on the bond markets with Manisha Gupta.

[00:13:13]Welcome back. Let's get you the macro signals for the day. For the markets, of course, they're trading with cuts of about 10 points. 23395 is where you have the frontline index. Uh, you know, leading that fall is the IT pack, which was again under pressure yesterday again down about 4/10 of a percent. The rupee is seeing a bit of a recovery today.

[00:13:30]Very slight 9565 is where it's at. It's in line with the fall that we've seen in crude prices as well. Uh but of course overall the pressure does remain from the foreign outflows that continue and oil prices that are still high. So that's why we've seen a 7% plus weakening since the start of the year.

[00:13:45]For the oil prices, they are retreating from the recent highs because tensions in West Asia are showing some signs of cooling. You know, Brent crude currently trading at around 97 uh dollars a barrel. That's down approximately uh 75%. Uh while WTI crude has also dipped to about $95 a barrel. The 10-year benchmark yields meanwhile they're reacting to the news. We've been telling you here uh on CNBC TV18 potential measures from the government to ease taxes for foreign investors uh on government bonds. Uh yields are seeing some slight declines. Also reacting to the shifting geopolitical and fiscal news. But of course the big cue will come for uh tomorrow from the RBI policy and traders are cautious ahead of that where the RBI is expected to leave the repo rate unchanged at least in this one. So we'll slip into a break on that note. Uh but uh before we leave uh here's a programming reminder. Stay tuned to us for insightful conversations on market macros commodities from the city India conference 2026. Catch that conversation with Cityroup CEO Jane Frasier coming up at noon today.

[00:14:55]back shifting focus to the bond markets.

[00:14:57]Then Manisha Gupta is here with the latest. Manisha, >> well thank you so much for that. It's all uh you know one thing that the street is watching for right now and that is the RBI MP MPC meeting tomorrow and to hear on what they have to say about inflation and various other West Asia conflict impacts as well. In the meanwhile we've seen the government deals for 3 to 5 year kind of trade steady there. Remember it's been the very near-term uh trade that we have seen most activity in. The longerterm scenario is still quite uncertain there.

[00:15:23]But then it is also about India looking to scrap capital gains tax and FBI and government securities. I mean that is something that the street is watching out for has been reported by sources in various medias including us as well. So that is what the street will want to watch out on what really goes through that. At this point in time we also are looking at rupee which is down 5% in 2026. crude oil prices which have gained 30% since the west Asia conflict also 60% up in this year till time. It also has to do with the foreign portfolio outflows in the equity markets that we have seen. So what the street is now looking at is the foreign investors which are as of now subjected to long-term capital gain of 12 a.5% and withholding tax of around 20%. This is what the street believes will perhaps work its way out. If you look at the overall numbers therein the Indian government debt $1.4 4 billion of an inflow is what we've seen into that. But $20 billion of an outflow from the equity markets. So government in some sense or RBI rather trying to make a balance of these things here. There also are quite some private issuances in sense of bonds coming in today itself and you have some big names therein. You have Baj Housing Finance which is looking to raise nearly 20 billion rupees. They are doing this via reissuing of bonds maturing in 2029. And then you have Adabir housing finance.

[00:16:37]They're looking to raise 10 billion rupees doing it via 3 to 5 year bonds.

[00:16:42]There you also have Midland Microfin.

[00:16:44]They're looking to raise 500 million and Aara Capital as well is in the market looking to raise 500 million. Uh the bidding of all of these companies happens today.

[00:16:53]>> All right, Manisha, thanks very much for joining in with that. Uh let's now go across to Finance that's raised $500 billion in an overseas bond sale. The issue is priced at 7.6%. And uh that's the coupon rate 3.25 year tenor and uh remember this after come this comes after building an order book of about $2 billion from large institutional investors. It's also the first dollar bond issue out of India that we're seeing since January because since then with the West Asia conflict yields have also been inching up. Let's get in Nirmal Jen the founder and MD of Finance for more on this. Mr. Jen, good morning.

[00:17:28]Thanks very much for joining us here on CNBC TV18. [clears throat] >> Uh you know tell us about this bond issuance. Is it a one-off that you're looking to raise money overseas or will we see you do more of this and uh you know how would the proceeds be used?

[00:17:42]>> Okay, so uh this I think we'll do uh broadly we'll plan to do it once a year and uh you know as a part of as a strategy to diversify sources of fund we have been reducing uh the relative share of banks and increasing non-bank exposure through bonds uh in local market as well as overseas market. So external commercial borrowings and dollar bonds together uh we plan to have say 20% share of those in our resource mix and these are social bonds and probably would know that most of our customers are economically weaker section almost 87% of our customers are are economically weaker section majority of our customers are so women borrowers uh in semi-urban and rural areas so the proceeds will be used for lending to those uh uh you know socially the disadvantaged segments of societies by way of gold loans by way of MSME loans uh including LAP which is low as property.

[00:18:42]>> Okay. Uh uh Mr. Jen, since we're speaking of bonds, very quickly, if I may address the news, you might have seen it on CNBC TV 18 that the government is considering uh you know reducing the taxation both withholding tax and the capital gains tax for foreign investors when it comes to investing in government securities as you know one of the measures to shore up uh you know the rupee position as well.

[00:19:03]Uh what do you make of it and you know with more foreign money potentially coming into GC yields do you expect borrowing costs theoretically at least to come down? I think there's need of the R because there has been significant outflow on capital account by way of equity uh and even FDI selling. So what maybe we need to do we need to be competitive which are other countries that are attracting foreign capital and withouting tax should be removed not only in government securities but also in corporate bonds. So currently corporate bonds if they get listed in gift city then maybe there's about 9% withholding tax on the interest. uh you know if we have to be competitive we have to attract capital which is required for the growth of this uh country then uh I think these taxes should be removed they are not uh here you know what we have to look at is not vijavi the domestic investor but vijavi the destination of for foreign capital how other countries are attracting capital how easy they made it uh so I think this is need of the art and our government is doing the right thing at the right time >> in that case There's a big RBI policy as well that's in the offing tomorrow. Uh what are you anticipating from there? Uh on the reform side, there are multiple measures that the RBI's announced in the past as well. What are you expecting this time around?

[00:20:20]So I think as far as the entire Middle East crisis is concerned, India has done well. Our government has been able to cushion it. Our headline inflation has not gone out of control. Uh growth imperatives are there. uh there are worries that monsoon may not be you know because of elino factor and uh there may be dry spare and monsoon may not be as good in that context my personal view is that RBI may not do rate hike tomorrow and uh but at the same time if you don't do rate hike then there's a pressure on currency so they will do certain balancing measures like you know government and RBI put together uh which can be by way of uh you know as far as government is concerned they you know remove the withholding tax that we just spoke about. RBI can uh give a swap you know which was done earlier at a consistent forward rate or uh so they can try and encourage flow of uh you know capital at this point in time but India is an attractive and a very strong macroeconomic fundamentals that we have and is a good uh you know over long-term medium-term capital will come on its own the short-term measures can be uh by providing swap window I think you know these are the majors that I would expect and not interest hike at this point in time.

[00:21:36]>> But uh Mr. Jen, apart from RBI from the government itself, uh you know, there is this talk of withhold withholding tax being removed for foreign investors. Are there any other measures that you you know as a banker would recommend as well would want to see?

[00:21:50]>> I think uh you know the long-term capital gains tax, capital gain tax that you know foreigners have to pay. uh I there has been uh you know discussion around this this has been muted that uh you know that should be removed as it used to be long back and uh you know maybe the time horizon can increase from one year to three year that will be very good because equity investing is for long-term you know the long-term capital gains tax can be removed even for know domestic investors uh many times people try to compare this with business income or salary income but there's not a correct comparison you know when we work and earn then we pay our taxes by way of salaries or business income. But when our savings are compounding and to build a wealth you know then that get again taxed and at very high rate so that is not allowing capital formation to uh you know be at a pace at where it can you know it ought to be. uh so I think if we are really in you know government is serious about attracting long-term capital into equities which uh is risk capital uh then you know they should do something about long-term capital against tax.

[00:22:58]>> Yeah. Well we we'll see that but uh Mr. >> J makes our country competitive which many other uh economies that are also competing for foreign capital.

[00:23:08]>> Yeah. Uh well we hope to hear something uh you know from the government and of course the RBI soon but Mr. And back to your uh you know social bond fund raise you said part of the proceeds will also go towards uh you know uh MSME lending as far as the west Asia conflict is concerned and we've been seeing an increased uh you know uptake in ECLGs by of course banks uh you know are you seeing any kind of stress build up there uh how's it looking and uh you know how much more are you looking to extend to this segment and what proportion would be exposed uh of your borrowers to what's happening in West Asia. So right now we focus on your secured lending which is loan against property for MSME at this point in time.

[00:23:45]>> Okay.

[00:23:45]>> I believe that I mean the impact as far as Indian MSM is concerned is almost negligible. There may be some segments that are impacted by supply chain disruption you know some restaurant shutdown or not operating at full capacity because of gas or some shortage of sulfur dioxide or some such material.

[00:24:03]But by and large uh you know I think MSME is still doing well. In fact, even before war when there was a tariff by US uh you know sectors like textile, footwear, shrimp or jewelry were impacted. So these are cyclical impact on a few sectors that we track very carefully but I think uh the macro fundamentals are strong. Uh Indian MSME has a long long way to go and grow if they get capital. You know we should understand that our MSME contribution to GDP is just about 30%. If you look at China and South Korea 60%. So and this is the bottom of the pyramid where we need uh the credit to flow so that they can produce more and consume more uh and that will be more equitable distribution of uh you know income and wealth. So I think you know this sector has a long way to grow and you know we are strategically positioned in this. So I mean I don't see any uh stress there which is long-term or structural.

[00:25:01]>> There can be cyclical seal problems but that is okay.

[00:25:05]>> Mr. Jen, one final question very quickly. You know, one of your key shareholders, the small cap world fund at at December last year, they had around close to 7% holdings in midMay, it was around 1.8%. Uh there's been significant increase in your volumes and on the stock as well over the last few days. Have you heard from them? Has the selling uh from them completed? Have they made an exit or do they intend uh to sell uh their remaining stake?

[00:25:30]No, it's very difficult for me to comment on uh uh you know the funds because they take their decision based on several uh factors including uh you know the attractiveness of even other markets and or other sectors. So really you know that I can't comment on uh uh portfolio investor and the fund managers or in funds that buy how they buy and sell. So it's very difficult for me to do that.

[00:25:53]>> Fair enough Mr. Jen thank you so much for sparing time and joining us today.

[00:25:56]Wish you good luck for uh the rest of the year as well. the management there of Nirmal Jen of IFL Finance on the dollar bond issue and of course on a whole host of other subjects. Take a short break on the other side get to the management of Tata Capital MD and CEO Raji Sabraal joins in to discuss the road ahead for the company.

[00:26:25]Welcome back. Well, the markets continue to remain where they are and below the mark of 23,400 as we speak. You know, Physics Wallala has just extended its gains now 15 12% higher on the stock and uh very close now towards its IPO price which is 111. So, good moves on physics, the top gainer on the Nifty 500 today.

[00:26:45]What has also extended its gains is Zen Technologies 11 and a half% higher on that stock as well. That has also moved to the highest point of the day. And one more uh that is coming onto the list of gainers today is Tjas networks and since the 26th of May when we reported about the Tarasan's board meeting and the fact that Tjas networks was also part of that list the stock is up 30% since then is highlighted by our colleague Sudaran from the newsroom 8 and a half% higher on Tjas networks as well. Good time to get in a quick chart check and some trading ideas from Ajit Mishra from relegare broking. Ajit good morning.

[00:27:19]Thank you for joining in. you know the index continues to be very very volatile but the fact that it has managed to defend yesterday's low at least for now do you see that as a positive and uh your call on the index then and your stock recommendations for the morning as well >> yeah good morning so yes uh in a way it is positive because at the same time while the overall textures uh is uh like you know bearish means we are maintaining lower highs lower low structure when it comes to the index uh yesterday we filled the gap on the daily chart in the index around 231 150 and rebounded thereafter. Uh today also despite the negative global clues we are trading flat. So this clearly shows that at least some pockets especially banking in where we see like you know some bit of strength reemerging but at the same time the uh mixed trend within the heavy weights is capping the upside. So it's going to be more of consolidation bias continuing in the index within this 23,000 23,500 range is what the uh like price action is indicating. So in the interim the focus should remain on the sectors and themes which are holding well. So from the banking basket RBL bank uh wherein we have seen a fresh breakout from the consolidation range uh with immediate target at 370.

[00:28:33]One can accumulate at current level with 336 as a stop loss and then we have from the far healthcare basket hospital stocks were buzzing in the last hour of the trade yesterday and we anticipate this recovery to further strengthen. So Apollo hospital can be a cons bet from the uh in a space where one can look for accumulation with 8090 as a stop and 8550 as a target area.

[00:28:55]>> Ajit uh thank you for sparing time and joining us uh today with your views on the index and on specific stocks as well. The IMD has finally announced that the southwest monsoon has finally made its onset in Kerala that is today the 4th of June and they have anticipated that of course over the next 10 days it should make its mark ahead on the city of Mumbai as well but Ru there are corporate conversations lined up as well Tata Capital of course being one of them.

[00:29:24]>> Yes and we do have Rajiv Saburval the MD and CEO of Tata Capital with us now Mr. Sabral, uh, pleasure to have you on the show here. You know, there's so much to talk about right now. Uh, the big one, of course, let me start with the RBI policy tomorrow. Banks are going to be happy if there's a hike. The expectation is a status quo policy. You of course are going to be happy that, you know, the the hike is not coming just yet. Uh, to begin with, what are you watching out for from the RBI policy tomorrow? Any specific measures uh, you know, on on on the strengthening of the rupee, etc. What will you be watching out for?

[00:29:57]I think uh two things are important. One is uh their outlook of what they are going to talk about. I think my personal view is that they will probably play the status quo game uh and which is probably appropriate also at this point of time on the report rate. The other thing is going to be on the approach towards liquidity. RBI has always said that they will ensure there is sufficient liquidity. uh we did see some bit of liquidity going down in the recent past but uh hopefully uh that should be back with government spending coming back. So I think as long as there is sufficient liquidity and the repo rate remains where it is uh I think we should see good growth coming in the market.

[00:30:38]>> But no uh specific measures uh you know for the rupee for the uh you know for the NBFC sector anything in particular you'll be watching out for we've also just heard from our colleague Sapna Das that the government may come back with uh you know perhaps a cut in withholding tax and the capital gains tax for foreign investors in the GC market. What do you make of that as well?

[00:30:58]So uh there is there is so much uh talk about it and I I I do read about it. Uh I think we should wait for what is going to happen. Uh I think what whatever they are thinking of should be positive uh for the market. Um and uh from our lending perspective what is more important is what happens to rates and what happens to liquidity. Uh typically uh though we are actually uh borrowing on one hand and lending on the other we only try to ensure that our margins remain in intact or move up. Uh but sufficient liquidity ensures that the rates remain in check which is good for the borrowers and if something is good for the borrowers it's good for us.

[00:31:39]>> All right Mr. Saburval thank you for taking our time today. you know you've mentioned that you're planning on a 23 to 25% AUM kagger uh going forward while maintaining your asset quality where it is currently. So what are the segments that you are looking to double down on in order to achieve this uh guidance uh over the next 3 years?

[00:32:01]>> So if you've watched us we are well spread across all segments of the business. We believe it's very important to be a part of the whole economy in in all parts and have a bias towards retail and theme and that is what our approach is. Uh retail and theme form about 86 87% of our total book. If I talk about the growth uh for the future there are going to be certain areas which will grow faster than the others. uh one is housing. Uh we've seen housing grow at close to 28 to 30% in the past and we believe uh we should be able to replicate that in the future too.

[00:32:38]Similarly, we've seen secured retail also grow at a healthy clip of 28 to 30% and that should also continue to grow.

[00:32:47]Uh there was some amount of moderation which happened on retail unsecured which seems to be coming back. We've seen growth coming back since uh the second half of last year and that should continue during this year. So that is also positive. The other area where we believe there should be uh reasonable growth with the support of ECLGs also is on theme side. So these are the sectors which we believe will be high growth sectors for us. So when you say unsecured retail growth is coming back it's already 10% of your AUM at the moment. Um how much more do you expect it to grow especially in light of what's happening you know in the MSME segment for instance uh with West Asia in the fourth quarter we were yet to see whether any stress buildup took place but in the first quarter in the days since um how is the book performed and how much more do you expect unsecured in particular to grow? So if you uh you know look at our credit costs, our credit costs have only been getting better with every passing quarter. Uh the credit quality on unsecure secured was always very good. Unsecured which suffered in the past has improved significantly and we are on the right track uh to bring it to the levels which which we are comfortable with. Uh we've also uh seen growth coming back as far as West Asia crisis is concerned.

[00:34:11]At this point of time we have not seen any significant impact uh on either growth or asset quality going forward.

[00:34:20]Uh you know depending on how it plays out there will be certain segments in which one may want to be a little more careful. uh for example the commercial vehicle sector or the construction equipment sector which have a lot of dependence on fuel uh prices or uh for example certain parts of theme not not the whole of theme I think uh there could be some amount of uh conservative approach which we will adopt going for uh going forward but is a very large segment so while there may be certain segments where there may be some conservatism there will be a lot of sectors where we will see good growth happening Mr. Sabaral one final question from my end at least you know the turnaround of Tara Motors finance has been the one that has been the big talking point right but what is the init beyond this turnaround what is the long-term role of uh this entity that you see in the entire Tata capital ecosystem and how much of the synergies are you aiming to capitalize on in terms of the uh the return ratios for your company going forward >> so uh we've been on the journey to transform data motor finance and we are uh I'm saying very happy with how things have progressed. In fact uh in a lot of areas we are better than what we had planned as far as data motor finance is concerned. Uh we've been uh we today we are a player which operates with multiple OEMs. So we've spread out 1/4 of our volumes comes from non uh tata veles. Today uh we've been able to bring in more efficiency embed technology. So cost to income is coming down. We have also seeing our mix getting better because we want to be in segments which give us the right risk return ratio. So our yields are moving up and uh our presence in certain segments like mid and small vehicles which were small is moving up. Our presence in used commercial vehicle is moving up. So we are on track for that. I think what is more important at this point of time to watch out is how it will pan out on growth. While we are seeing some growth coming back because of the challenges on West Asia crisis, we will need to see how much do we want to push on growth as far as this sector is concerned.

[00:36:35]>> Mr. Saburval, since you spoke about commercial vehicles, just a quick question on uh the Delhi uh you know this policy that the cabinet has approved for old trucks being replaced in Delhi. Uh does that open up significantly you know more financing opportunities for you especially on the EV front as you know these trucks transition?

[00:36:51]>> Yeah absolutely I I think the opportunities are emerging not only on EV trucks on EV buses which has been a good segment uh for the last few years that is also growing at a much faster clip. Uh so uh I I do believe that there are certain tailwinds which are getting built up because of these changes. uh we will and the government has also helped in terms of uh being moderate in in terms of passing on fuel prices in fuel price increases. So we had a good uh last year in commercial vehicle market.

[00:37:23]Uh this year there are tailwinds but we need to watch the impact of west ratio prices.

[00:37:28]>> Right Mr. Samaral pleasure having you today. Thank you so much for sparing time and joining us. Wish you good luck for FI27 as well. Take a short break.

[00:37:36]Conversations on the markets with Ashand of IME Capital on the other side. Stay tuned.

[00:37:55]Welcome back. We have Ashi Anand from IME Capital joining us now to discuss market fundamentals and some of his sectoral picks. Sashi, always a pleasure to have you here, you know, but before anything else, maybe a broader question on market sentiment given this news around some of the measures that could come in from the government, perhaps even from the RBI later on, you know, easing the taxation for foreign investors in India if that lifts sentiments and what you make of it.

[00:38:20]>> Yeah, sure. So uh I think firstly in terms of the long-term capital gains I quite echo the sentiment of one of your previous guests that if you are kind of take planning on taking away long-term capital gains for FIS firstly this is not known or it is a potential rumor but if that were to happen it would be very very encouraging to see that also lifted for domestic investors. uh there's really no reason why domestic investors should not also participate to the same extent as your global FIS but FIS have been kind of pulling out uh from the Indian markets quite consistently over the last four years. Uh any kind of improvement in the taxation structure could help alleviate some of that kind of pressure. Uh but that said I think uh it's not just taxation. what is it is important to understand why FIS are pulling out and I think one of the primary reasons is that uh the whole AI trade is one of the most attractive investment themes globally over the last year year and a half and uh an economy like India is really not present in a large part of the value chain so what you are seeing is FI is actually redeploying from traditional kind of India allocations towards Korea and Taiwan in particular have actually benefited quite significantly uh now growth growth in India has also been a bit subdued. So while yes, if there is some improvement in taxation, uh there should be some kind of a short-term boost in sentiment. What is very very important to see is a overall growth revival because as long as growth in India is muted and you're seeing superior growth in other markets, we don't necessarily see a reversal in FIA flows.

[00:39:54]>> AI, you know, the markets have not done much in the month of May, but have you made any changes uh to your portfolio?

[00:40:01]there has been a lot of sectoral churn uh that you continued to see all through last month.

[00:40:06]>> Uh yes. So we have made and we made quite significant changes. I think one key thing is that we have generated a certain amount of cash on the portfolio.

[00:40:13]Uh there continues to be a lot of uncertainty around what's happening with the whole US Iran and the Middle East crisis. Uh with oil kind of around $100 per barrel, you clearly have inflationary pressures, pressure on the rupee, etc. uh until there's not clarity around some kind of a resolution towards this particular crisis, we probably want to stay a bit defensive and that's kind of reflected in the fact that we currently hold about 7 and 12 to 8% cash in our portfolios. Uh I think the other key we have also moved sectors around a bit. Uh we have largely gotten out of our exposures in both IT services and real estate. uh and one area that we have been quite increasingly deploying capital towards is capital goods se capital goods companies that are part of the the global electricity supply chain.

[00:41:02]Um there is going to be a explosion in demand for electricity uh because of new age AI data centers and we're trying to kind of identify companies in India that are actually parts of the value chain of some of the major global MNC's uh s the likes of Janovas uh the Hitachi Mitsubishi etc. uh so we're kind of trying to play that value chain. Uh we've built up about 10% of our portfolio in such names. Uh we also building out certain exposures towards the whole GLP1 theme. Uh as well as selectively in certain parts of the consumer value chain.

[00:41:37]>> Okay. Consumer pharma uh capital goods is something you're putting money into and taking it out of it and real estate.

[00:41:44]Um Ashi almost 8% cash that you're sitting on. What will get you to deploy it? I mean uh you know is it just the end of the war? Will that turn sentiments or you know what will really get you back on the table?

[00:41:57]>> So uh ju just on a lighter note uh Trump has kind of promised a deal by the weekend. So um but any kind of clarity on a deal right uh I think what is extremely important from our perspective is you need to have ships flowing through the street of Homos. uh if you don't have some kind of a letup in terms of allowing the passage of vehicles through that street uh I think you are going to see some further upsides on oil prices and the problem is it's not just prices you're also going to have availability related issues uh if this crisis were to actually prolong we would actually expect further downsides in the market uh so until we don't see some clarity specifically on US Iran uh the Indian economy is quite exposed to oil prices Every $10 increase has a 35 basis points impact on our trade deficit, about 25 basis points impact on inflation. We are are already up $30 from where we were prior to the crisis.

[00:42:54]Um so we really need some resolution here uh and until we are not getting a little more confident about some kind of a resolution that may last uh we will probably maintain a defensive stance.

[00:43:06]>> AI pleasure having you today. Thank you so much for sparing time and joining us.

[00:43:09]are looking forward to the next conversation. From the sidelines of the city conference, my colleague Yash caught up with the founder and chairman of Dixon Technology, Sunil Vachani, and here's what he had to say on the potential JV with Vivo, the approval for which is awaited.

[00:43:22]>> I don't want to talk about a specific case because this particular case is lying with the uh the government, the central government. So uh you know I won't want to get into the details but I think in short I would say that you know we are told that yes this is under active consideration uh and uh hopefully uh we should be uh getting some news on this very very soon. Uh just to close the loop on partnerships as you mentioned one thing as far as the partnership with Vivo itself is concerned. Uh there were certain reports which s suggested that the agreement time period expires in May and if the approval government approval does not come by then then a refiling or restarting of that approval process has to be done. if you could give some clarity on that if it indeed is that process and the second question what are the new partnerships going forward in FI27 that you're looking to make both on the international side as well as the domestic side so see as I mentioned I'm not going to comment on a specific case because as I mentioned this is already lying with the central government and we're hopeful of getting the approval soon uh talking about some other partnerships I think what we're really excit we're excited about all our partnerships but as I mentioned the industry that we're also excited about besides the other industries vertical we're already in is the IT hardware space and we have entered into a collaboration with one of the leading Taiwanese companies uh uh which is the global leader uh uh in uh IT hardware as well as servicing the requirements of data centers and this factory hopefully should be in you know which is being set up in Chennai. This factory should be ready in the next uh 8 to 10 months and we're hopeful that once this plant is operational we'll be able to cater to the requirement of the data centers coming up into the country and also uh we would ensure that the products which are getting imported into the country like you know laptops and AIS on desktops those start getting manufactured in the country and the value addition which is very very low starts improving in the times to come.

[00:45:14]All right, that's the Dixon chairman hopeful of the JV with Vivo coming in soon. And on that note, Hormas and I are going to take your leave here on Trading Hour, but stay with us. Halftime report will take all the action forward.