Similar question, because yes, the index is over one day, and there is a lot of sector going on. That is one of the clear trends that we pick up. Profit-to-frequenting are hammered in a large way, while in some of the other reported sectors cars a good example-they try to make a comeback. What is your lecture in the markets at the moment?
Nikhil Ranka: Broadly speaking, about a month ago when we were in the show, we were a bit careful in the markets around 25,600-25,700 levels. At that time we clearly emphasized that the best scenario for the markets was time consolidation, because the incremental upward set-up based on FY27 valuations pointed more to 26,200 as the real value for the Nifty. We have corrected almost 1,000 points of those levels, and the good thing is that we are now at least closer to an 8-9% advantage of our real value of 26,200.
If we look at individual sectors-in particular, the most names of large caps now with less than 20 times FY27 income. These are the levels they had hit when the tariff uncertainty was at its peak, so incremental disadvantage of here seems limited for IT names.
Similarly, the street in the banking sector has largely announced in the sense that Q2 will see another 10-15 BPS NIM output, since Q1 had a decrease of 10-12 BPS. Most large banks have indicated that the first speed -fast has been completely passed on, and the second -rate reduction of 20 BPS will be transmitted in Q2, leading to further NIM pressure. So Q2 should be a soft quarter from a profit perspective. But from the third quarter of the upcoming income, we expect that the income will collect, and markets must also start trending higher from these levels. In general, we do not see the markets fall under 24,200 in the short term.
What kind of push do you think that the coming festive season, the wedding season and, in the short term, this long weekend could give this long weekend, hospitality, travel and tourism? Where do you see these sectors on the way to the back of a strong festive period ahead?
Nikhil Ranka: On the aviation side, Q2 is usually one of the softest quarters. Historically, there has been a considerable quarter-on-quarter revenue in Q2 compared to Q1. Based on that, Indigo would have to post softer Q2 numbers. The only positive thing is that there is a meeting between Mr Trump and Mr Putin on August 15, and if a solution arises, the uncertainty about disruptions or sanctions with Russia would disappear. If the raw prices of the current level were to fall by $ 4-5, it would benefit some aviation companies.
On the two -wheeled side we have seen the volume growth of one digit for most players for the past two to three years, and given the current trends we expect that this will continue in FY26. However, there must be some margin extension because the steel prices have cooled. Stocks are also corrected from their peak valuations. Based on FY27, for example, Hero Motocorp trades around 17-18 times and Bajaj Auto is closer to 22 times. That leaves room for another 10-15% advantage in these names, but otherwise it will be difficult to build a strong case, since we still expect only one-digit volume growth for most two-wheelers players in FY26.
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