Latest news with #RajeevAgrawal
Economic Times
30-05-2025
- Business
- Economic Times
NBFCs may outperform banks as rate cut fears weigh on NIMs: Rajeev Agrawal
"If we look at some of the recent metrics that have come out in terms of the PMI and all that, they are looking pretty strong, interest rates are coming down. So, in general, the sense on India's macro looks pretty good and that is one of the reasons that the markets are going up but clearly, it is not a cheap market as you were saying earlier in the show," says Rajeev Agrawal, DoorDarshi India Fund. ADVERTISEMENT What is the headline we should focus on? Yesterday, it was the ruling from a US Appeal Federal Court that tariff will not be implemented. Today, the headline is tariff will be implemented. Can we decide what we should focus on, 24 hours and world changes? Rajeev Agrawal: That is the fun of today's times that things are changing so rapidly that you have to either focus on them or ignore them completely. One possibility is do not even worry about all these things and focus on the fundamentals. Indian markets are going up. Is it largely because of flows? Is it largely because of monsoon? Because between April and May, the sentiment has changed, prices have changed, outlook has changed, and flows have changed. What is driving Indian markets higher? Rajeev Agrawal: So, one is definitely the flows. We have seen FPIs come back into the market quite strongly, Indian markets. I think, also as financial year 25 has ended and that was a single-digit earnings growth, there is expectation that given that the lower base the earnings going into next year will be strong. If we look at some of the recent metrics that have come out in terms of the PMI and all that, they are looking pretty strong, interest rates are coming down. So, in general, the sense on India's macro looks pretty good and that is one of the reasons that the markets are going up but clearly, it is not a cheap market as you were saying earlier in the show. ADVERTISEMENT So, what has been your portfolio strategy, recommending to buy anything, book out of anything? What is looking like, it is already frothy and what is looking like there is value on the table now that earnings also are behind us? Rajeev Agrawal: So, in terms of what we are buying, actually we are rotating a little bit. So, what we are doing is selling some of the more expensive names and then utilising the cash available to get into some of the more compelling opportunities in this market. Areas where we are finding good opportunities continues to be financials where we think still there is this concern that interest rates are coming down which will have pressure on the NIMs especially for banks, but that may not be the case for the NBFC, so that could be one area that one could look at. ADVERTISEMENT Capital markets, again as the markets are coming back, some of the capital market players were hit quite hard when the correction came, so some of the markets either on the wealth side, asset management side, and as well as the capital markets, they continue to look quite interesting even at this point. ADVERTISEMENT Just tell our viewers about your top India holdings, where have you been investing, where were you invested, where you plan to remain invested, and where were you invested and now you are selling it. Rajeev Agrawal: So, in terms of financials, I am happy to give you some names, I know there are a lot of regulations around it, so I will just give the caveat that obviously this is not recommendation. But I think some of the power finance companies look pretty interesting to us. The power is going to be an area where there will be a lot of development in India given the power need and if we look at both PFC and REC, those companies should continue to grow their book. They are not necessarily that expensive even in this market and the asset quality is improving, so that is one area that we basically remain bullish about. In terms of where we are, if we are selling some, I think some of the renewable energy areas are where there is enough value possibly or enough price now that one could look at starting to get out, I mean some of the solar names you can see that they have gone up quite a bit as the business has improved, but frankly running a bit ahead and then another one is the defence area where clearly the names have run up very quickly and there might be an opportunity for people to take some money off. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
30-05-2025
- Business
- Time of India
NBFCs may outperform banks as rate cut fears weigh on NIMs: Rajeev Agrawal
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel "If we look at some of the recent metrics that have come out in terms of the PMI and all that, they are looking pretty strong, interest rates are coming down. So, in general, the sense on India's macro looks pretty good and that is one of the reasons that the markets are going up but clearly, it is not a cheap market as you were saying earlier in the show," says Rajeev Agrawal That is the fun of today's times that things are changing so rapidly that you have to either focus on them or ignore them completely. One possibility is do not even worry about all these things and focus on the one is definitely the flows. We have seen FPIs come back into the market quite strongly, Indian markets. I think, also as financial year 25 has ended and that was a single-digit earnings growth, there is expectation that given that the lower base the earnings going into next year will be we look at some of the recent metrics that have come out in terms of the PMI and all that, they are looking pretty strong, interest rates are coming down. So, in general, the sense on India's macro looks pretty good and that is one of the reasons that the markets are going up but clearly, it is not a cheap market as you were saying earlier in the in terms of what we are buying, actually we are rotating a little bit. So, what we are doing is selling some of the more expensive names and then utilising the cash available to get into some of the more compelling opportunities in this where we are finding good opportunities continues to be financials where we think still there is this concern that interest rates are coming down which will have pressure on the NIMs especially for banks, but that may not be the case for the NBFC, so that could be one area that one could look at. Capital markets , again as the markets are coming back, some of the capital market players were hit quite hard when the correction came, so some of the markets either on the wealth side, asset management side, and as well as the capital markets, they continue to look quite interesting even at this in terms of financials, I am happy to give you some names, I know there are a lot of regulations around it, so I will just give the caveat that obviously this is not recommendation. But I think some of the power finance companies look pretty interesting to us. The power is going to be an area where there will be a lot of development in India given the power need and if we look at both PFC and REC, those companies should continue to grow their are not necessarily that expensive even in this market and the asset quality is improving, so that is one area that we basically remain bullish about. In terms of where we are, if we are selling some, I think some of the renewable energy areas are where there is enough value possibly or enough price now that one could look at starting to get out, I mean some of the solar names you can see that they have gone up quite a bit as the business has improved, but frankly running a bit ahead and then another one is the defence area where clearly the names have run up very quickly and there might be an opportunity for people to take some money off.
Economic Times
08-05-2025
- Business
- Economic Times
Current calm in markets may reverse if geopolitical developments worsen: Rajeev Agrawal
Yet, if we look at in the premium category, the selling or the sales continue to be quite good and, of course, financials that we have talked about, so those are the three areas I would say. Rajeev Agrawal of DoorDarshi India Fund suggests Indian markets remained resilient due to India's calibrated response to a terrorist attack and a healthy economy. Strong PMI numbers and reasonable valuations contribute to a positive outlook. A strong rupee and anticipated government infrastructure spending are attracting foreign investors back to Indian equities, shifting the narrative from China. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads "As we start looking at some of the PMI numbers which are forward-looking numbers, they are looking quite strong. So, economy is good, valuation is reasonable, and India's response has been very calibrated in terms of the terrorist attack," says Rajeev Agrawal In terms of why the markets were resilient, my assessment is that India did a very calibrated strike. Even India's press statement was very clear that we only attacked the terrorist camps and so because of the calibrated strike that India did, the expectation is it should not get out of hand which was one of the concerns that the market had previously, so that is one reason. The second thing is the economy is doing reasonably we start looking at some of the PMI numbers which are forward-looking numbers, they are looking quite strong. So, economy is good, valuation is reasonable, and India's response has been very calibrated in terms of the terrorist absolutely. If it were to escalate, that will change the market movement and the expectations people have. Right now, the expectation is that this is a standalone event. There might be a little bit more tit for tat, but there is nothing serious here given how India has reacted to the terrorist attack, so that is the expectation. But if it were where Pakistan were to come back with a stronger response, the equation will change quite dramatically if that were to the markets have actually corrected meaningfully in between and then, they have gone back up. But we have found the capital market space has been pretty good in terms of shopping estate also came down because there was a concern that in the real estate space things have started slowing down. Yet, if we look at in the premium category, the selling or the sales continue to be quite good and, of course, financials that we have talked about, so those are the three areas I would of the very interesting things that has happened in the last few months is how strong rupee has been. So, when the rupee weakens, we have noticed that the foreign money starts getting pulled out because they do not want to have the depreciation lower the returns, but in the last few months the rupee has been strong and that has given the confidence to the foreign investors to come back into the Indian market, coupled that with the valuations which have become little bit more better and the fact that we go into a financial year 26 where the Indian government infrastructure spend will again pick up, I think all those has enabled the foreign investors to once again start shopping in Indian equities.
Time of India
08-05-2025
- Business
- Time of India
Current calm in markets may reverse if geopolitical developments worsen: Rajeev Agrawal
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel "As we start looking at some of the PMI numbers which are forward-looking numbers, they are looking quite strong. So, economy is good, valuation is reasonable, and India's response has been very calibrated in terms of the terrorist attack," says Rajeev Agrawal In terms of why the markets were resilient, my assessment is that India did a very calibrated strike. Even India's press statement was very clear that we only attacked the terrorist camps and so because of the calibrated strike that India did, the expectation is it should not get out of hand which was one of the concerns that the market had previously, so that is one reason. The second thing is the economy is doing reasonably we start looking at some of the PMI numbers which are forward-looking numbers, they are looking quite strong. So, economy is good, valuation is reasonable, and India's response has been very calibrated in terms of the terrorist absolutely. If it were to escalate, that will change the market movement and the expectations people have. Right now, the expectation is that this is a standalone event. There might be a little bit more tit for tat, but there is nothing serious here given how India has reacted to the terrorist attack, so that is the expectation. But if it were where Pakistan were to come back with a stronger response, the equation will change quite dramatically if that were to the markets have actually corrected meaningfully in between and then, they have gone back up. But we have found the capital market space has been pretty good in terms of shopping estate also came down because there was a concern that in the real estate space things have started slowing down. Yet, if we look at in the premium category, the selling or the sales continue to be quite good and, of course, financials that we have talked about, so those are the three areas I would of the very interesting things that has happened in the last few months is how strong rupee has been. So, when the rupee weakens, we have noticed that the foreign money starts getting pulled out because they do not want to have the depreciation lower the returns, but in the last few months the rupee has been strong and that has given the confidence to the foreign investors to come back into the Indian market, coupled that with the valuations which have become little bit more better and the fact that we go into a financial year 26 where the Indian government infrastructure spend will again pick up, I think all those has enabled the foreign investors to once again start shopping in Indian equities.
