In a recent interview with ET Now featuring Mahantesh Sabarad, an Independent Market Expert, various market trends and stock analyses were discussed, providing valuable insights for investors. This article aims to delve into the key points raised in the video, focusing on Paytm stocks, PSU banks, Q3 earnings, and other market trends.
Mahantesh Sabarad’s Market Overview:
The discussion commenced with an assessment of the current market scenario. Sabarad acknowledged a recent dip in the overall market but highlighted the resilience of certain sectors, specifically Oil Marketing Companies (OMCs) and Public Sector Undertaking (PSU) Banks.
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OMCs vs. PSU Banks:
Mahantesh Sabarad expressed a preference for PSU Banks over OMCs, citing concerns about OMCs being highly cyclical and susceptible to global oil price fluctuations. In contrast, PSU Banks were deemed more favorable due to their solid positioning in the corporate sector, poised for potential interest rate reductions.
PSU Banks’ Strengths:
The analyst identified multiple strengths within the PSU banking space, including robust capitalization, quality book perspectives, healthy Net Interest Margins (NIMs), and a positive outlook for corporate capex. These factors, coupled with an anticipation of further interest rate reductions, positioned PSU Banks favorably in Sabarad’s analysis.
The discussion shifted to specific stocks and their recent performances. Engineers India was highlighted for its positive earnings report, with Mahantesh Sabarad suggesting a “hold” stance on the stock due to its recent upward movement.
Swan Energy and Tata Motors:
Technical analyst Kunal provided insights into Swan Energy, citing strong volume-based upward momentum but cautioning about potential corrections in the coming weeks. Meanwhile, Tata Motors was discussed as a promising buy, with expectations of a substantial upside in the next few quarters.
SBI’s Q3 Earnings Preview:
The discussion touched upon the upcoming quarterly earnings report of the State Bank of India (SBI). Key expectations included a 6% growth in net interest income, a 22% decline in pre-provision operating profit due to wage rate revisions, and a positive outlook for healthy asset quality.
Tata Motors’ Q3 Expectations:
Anticipating Tata Motors’ earnings, the discussion highlighted expectations of a 23% quarter-on-quarter increase in profits. Attention was drawn to the key driver of Jaguar Land Rover’s (JLR) EBIT margin improvement and the company’s overall volume push.
Paytm Stock Analysis:
The discussion veered towards Paytm, acknowledging its recent significant decline. Mahantesh Sabarad expressed skepticism about potential recovery, citing regulatory uncertainties and the need for strategic decisions such as segregating the payment bank business to mitigate risks.
In conclusion, the article provides a comprehensive overview of the key insights from Mahantesh Sabarad’s analysis, shedding light on market trends, specific stock performances, and expectations for upcoming earnings reports. Investors are encouraged to consider these insights when navigating the dynamic landscape of the financial markets.
Disclaimer: The investment recommendations discussed in this article are based on Mahantesh Sabarad’s insights, and readers are encouraged to conduct their due diligence before making any investment decisions.