Latest news with #PuneetSharma
Time of India
19-07-2025
- Business
- Time of India
Axis Bank touts quality push, but market flags a host of concerns
Axis Bank tightened its asset classification and income recognition norms, signalling a more conservative credit approach that appears to have dented the lender's June-quarter profitability. An unexpected bottom-line shrinkage caused the stock to slump more than 5% Friday, forcing a retreat of the Nifty on which Axis Bank has the fourth-biggest weighting among private lenders. "Asset classification happens on a days-past-due (DPD) counter basis, but classification can also occur based on qualitative parameters," said Puneet Sharma, CFO of Axis Bank, during the post-earnings analyst call. "These are non-DPD-led parameters that have been tightened, resulting in higher slippages for the quarter." 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Under the new technical norms, such accounts are no longer upgraded until full settlement is made. The technical impact is largely confined to cash credit, overdraft products, and accounts under one-time settlements (OTS). This change has adversely affected the bank's profitability metrics , reducing profit after tax by ₹614 crore, return on assets (ROA) by 15 basis points, and return on equity (ROE) by 1.4 percentage points. One basis point is a hundredth of a percentage point. Live Events "The markets expected asset quality issues to be resolved this quarter as this has been a concern over the past year," said Dharmesh Kant, head of research at Cholamandalam Securities. "Despite the attractive valuations compared to its peers, the guidance for growth is not aggressive, which led to a disappointing quarter." The stock fell 6.4% during the day and closed 5.3% lower at ₹1,098.7. Kant said that while a further 2-3% decline cannot be ruled out, no major falls are likely since the stock has not performed a lot in the past year either. Nifty Heft Axis Bank has a 2.97% weighting on the Nifty, behind HDFC Bank and ICICI Bank, among lenders. It ranks ninth among the top 10 stocks by weighting on the most-tracked gauge. Out of the 12 stocks on the Bank Nifty Index, 10 declined and 2 advanced. The Bank Nifty slid 1%, while the benchmark Nifty declined 0.6%. Meanwhile, Axis Bank's collections team is now conducting a qualitative assessment of stressed accounts using credit bureau data, particularly by combing those borrowers holding multiple loans. Gross slippages for the quarter rose more than 70% to ₹8,200 crore, up from ₹4,793 crore in Q1FY25. After adjusting for technical impact, gross slippages stood at ₹5,491 crore. Of this, 75% originated from unsecured loans, while the remaining 25% came from the agriculture sector. 80% of these accounts are backed by 100% security cover. "These are particularly poor numbers, and the management commentary provided little confidence to expect a quick turnaround in either asset quality or growth," said Pranav Gundlapalle, head of India financials at Bernstein. "Even after adjusting for the one-off policy changes, Axis Bank's performance this quarter significantly lags its larger peers, weakening the case for any near-term re-rating." Brokerage Nuvama, meanwhile, downgraded Axis Bank to 'Hold' and reduced target price to 1,204 from 1,410, citing margin compression and higher credit costs . "We lower our estimates on credit growth, whereas slightly increase credit cost as asset quality becomes a key monitorable," said analysts at Nuvama in a note. "For a large banking franchise, the stock is trading at a discount to its peers, which we expect the gap to widen further given volatility in earnings and asset quality." To be sure, Bernstein has set a 12-month target price of ₹1,300, while Macquarie Capital expects the stock to reach around ₹1,450.
New Indian Express
17-07-2025
- Business
- New Indian Express
Axis Bank opens earnings season on bad note, net income down 4% after one-time hit
MUMBAI: The third largest private sector lender Axis Bank opened the earnings seasons for the June quarter in the financial services space Thursday on a bad note, reporting a 4% decline in net income at Rs 5,806 crore despite a reasonable performance in its core business. The management said the red mark on the bottom-line is mainly due to a 'technical impact' as the bank had a one-time hit of Rs 614 crore related to how it classifies some loans as bad. More importantly, on a sequential basis, net profit fell more sharply to the tune of 18%. This technical loss came in after the bank recognized some cash credit, overdraft, and settled loan accounts as non-performing assets, which led to higher slippages and provisions. As a result, provisions more than doubled to Rs 3,948 crore in the June quarter from Rs 1,359 crore in the March quarter, Amitabh Chaudhry, the chief executive of the bank, told reporters in the earnings call Thursday. "Prudent application of technical parameters to recognise slippages and consequent upgrades impacted reported asset quality, including provisions and contingencies. Technical impact is largely restricted to cash credit and overdraft products and one-time settled accounts,' the chief financial officer Puneet Sharma said, adding 'without this one-off impact, net profit would have been stronger. The technical impact has adversely impacted net income by Rs 614 crore, RoA by 15 bps and RoE by 1.4%.' Still, the bank said most of the loans that slipped due to this issue are safe as '80% of individual contracts that slipped because of this technical impact though continue to remain NPAs as of June 30, are fully secured. Hence economic loss due to the technical impact will be minimal over the life of such contract.' Adjusted for this impact, gross NPAs stand at 1.41%, down 13 bps and net NPAs at 0.36%, up 2 bps, Sharma said. However, the overall business remained steady with its balance sheet growing 9% to Rs 16.03 trillion, and capital buffers staying strong with the capital adequacy ratio of 16.85.
Time of India
26-06-2025
- Business
- Time of India
Equity investing not about overnight returns: Puneet Sharma on geopolitical issues and 2025 sector picks
Geopolitical conflicts and market swings can rattle even seasoned investors, so where does that leave retail participants? Puneet Sharma , CEO of Whitespace Alpha , shares insights on what moves the markets, why trying to time them is a trap, and how everyday investors can build a resilient portfolio in 2025. From FMCG tailwinds to ETF-based diversification, here's what you need to know to stay one step ahead. Excerpts: Q. How are Indian equity markets reacting to the current geopolitical situation? Puneet Sharma: Globally, a lot is happening in quick succession—constant news flow, unexpected events—so markets are reacting rapidly. Indian markets, in particular, have responded positively despite recent volatility. Take yesterday, for instance—there was uncertainty when the market opened, and no one really knew how things would unfold. The equity markets are closely tracking global developments. Expectations around corporate earnings get quickly factored into share prices. It's an exciting time for those on the sidelines, but it can be tricky for active investors navigating through the volatility. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 立ち上がれないトラの中身に驚愕、獣医が超音波を見て警察に連絡 Undo Q. What about the global picture? How do you think the Iran-Israel conflict and the US involvement are impacting global equity markets? Puneet Sharma: The most immediate impact is on crude oil prices, which we've seen spike recently. Since much of the world's oil supply flows through the Iran region, any disruption causes risk for shipping routes. That fear is reflected in oil prices. In India, oil marketing companies saw a sharp fall yesterday but bounced back today, most are up around 2.5%. Events like these trigger short-term volatility and impact investor sentiment globally. We've seen this earlier too, when the U.S. announced tariffs and the India-Pakistan conflict escalated, volatility spiked with 2–2.5% swings in the Indian indices. But now, with the ceasefire between Iran and Israel, we expect this turbulence to be short-lived. Markets should stabilize, and the focus will return to economic fundamentals and growth. Live Events Q. While wars are unfortunate, some sectors do benefit during such times. Which sectors could outperform while this geopolitical chaos plays out? Puneet Sharma: It's a tough call. Initially, we saw a broad sell-off, triggered partly by FIIs pulling out money, which also led to INR depreciation. IT, for example, felt the heat due to forex impact on margins. However, as stability returns, IT could see a recovery. Oil and energy remain directly impacted. Auto is another sector to watch, fuel price hikes haven't yet hit retail prices hard, but if crude crosses $75 a barrel, it could eventually dent demand, especially for auto companies. Still, this might be temporary. In the long term, this episode might just be a footnote. So, I'd advise investors not to try timing the market. If you've built a long-term, curated portfolio, stay invested and trust the process. Q. What are some 2025 themes to watch? Based on domestic factors, which sectors or types of funds should retail investors consider? Puneet Sharma: Monsoons are expected to be average or slightly better, which bodes well for rural demand. Historically, when rural incomes rise, FMCG benefits significantly, so I'd bet on FMCG. The government's tax relief for those earning up to ₹12 lakh a year also increases disposable income. Combine that with monsoon-driven demand, and you have a strong case for both FMCG and entry-level auto, especially two-wheelers and budget cars. Automobile ancillaries should benefit too. Another theme is insurance—health and life insurance demand is picking up as financial awareness grows. Q. For someone entering the markets in 2025, how can they build an 'all-weather' portfolio that withstands both geopolitical and domestic turbulence? Puneet Sharma: Investors today have access to highly diversified options. For an all-weather portfolio, I recommend starting with ETFs like Nifty 50 or BSE 500. These provide broad exposure across sectors and include large-, mid, and small-cap stocks. BSE 500 even includes emerging companies that could turn into multibaggers. ETFs are a great way to gain diversification without stock-picking. But remember, no portfolio is completely immune to market corrections. There will be dips like we saw in October 2024 or March 2025. The key is to stay invested through those phases. Equity investing is not about overnight returns; it's about wealth creation over time. Patience is everything. Q. Would you recommend a specific asset allocation ratio for medium to high-risk investors right now? Puneet Sharma: At Whitespace Alpha, we're focused on long-term capital appreciation via equities, so our fund is 100% equity. But I believe a 60:40 split between equity and debt is healthy for most medium to high-risk investors. It provides some cushion while allowing meaningful equity participation. For more aggressive investors, a higher equity allocation makes sense. Q. What should investors do right now? Should they rebalance or wait it out? Puneet Sharma: My advice is to stay the course. If you've done your research, believe in the companies you're invested in, and understand their business fundamentals, don't react to short-term events. Timing the market rarely works in the long term. Many studies confirm that even missing just a few good days can significantly impact your overall returns. Rather than trying to exit at the top and re-enter at the bottom—which is often just guesswork—stick with your long-term philosophy. If something fundamentally changes about a company or sector, by all means, reassess. But don't make investment decisions solely based on short-term events or noise.
Economic Times
26-06-2025
- Business
- Economic Times
Equity investing not about overnight returns: Puneet Sharma on geopolitical issues and 2025 sector picks
Geopolitical conflicts and market swings can rattle even seasoned investors, so where does that leave retail participants? Puneet Sharma, CEO of Whitespace Alpha, shares insights on what moves the markets, why trying to time them is a trap, and how everyday investors can build a resilient portfolio in 2025. From FMCG tailwinds to ETF-based diversification, here's what you need to know to stay one step ahead. Excerpts: ADVERTISEMENT Q. How are Indian equity markets reacting to the current geopolitical situation?Puneet Sharma: Globally, a lot is happening in quick succession—constant news flow, unexpected events—so markets are reacting rapidly. Indian markets, in particular, have responded positively despite recent volatility. Take yesterday, for instance—there was uncertainty when the market opened, and no one really knew how things would unfold. The equity markets are closely tracking global developments. Expectations around corporate earnings get quickly factored into share prices. It's an exciting time for those on the sidelines, but it can be tricky for active investors navigating through the volatility. Q. What about the global picture? How do you think the Iran-Israel conflict and the US involvement are impacting global equity markets? Puneet Sharma: The most immediate impact is on crude oil prices, which we've seen spike recently. Since much of the world's oil supply flows through the Iran region, any disruption causes risk for shipping routes. That fear is reflected in oil prices. In India, oil marketing companies saw a sharp fall yesterday but bounced back today, most are up around 2.5%. Events like these trigger short-term volatility and impact investor sentiment globally. We've seen this earlier too, when the U.S. announced tariffs and the India-Pakistan conflict escalated, volatility spiked with 2–2.5% swings in the Indian indices. But now, with the ceasefire between Iran and Israel, we expect this turbulence to be short-lived. Markets should stabilize, and the focus will return to economic fundamentals and growth. Q. While wars are unfortunate, some sectors do benefit during such times. Which sectors could outperform while this geopolitical chaos plays out? Puneet Sharma: It's a tough call. Initially, we saw a broad sell-off, triggered partly by FIIs pulling out money, which also led to INR depreciation. IT, for example, felt the heat due to forex impact on margins. However, as stability returns, IT could see a recovery. ADVERTISEMENT Oil and energy remain directly impacted. Auto is another sector to watch, fuel price hikes haven't yet hit retail prices hard, but if crude crosses $75 a barrel, it could eventually dent demand, especially for auto companies. Still, this might be the long term, this episode might just be a footnote. So, I'd advise investors not to try timing the market. If you've built a long-term, curated portfolio, stay invested and trust the process. ADVERTISEMENT Q. What are some 2025 themes to watch? Based on domestic factors, which sectors or types of funds should retail investors consider? Puneet Sharma: Monsoons are expected to be average or slightly better, which bodes well for rural demand. Historically, when rural incomes rise, FMCG benefits significantly, so I'd bet on FMCG. ADVERTISEMENT The government's tax relief for those earning up to ₹12 lakh a year also increases disposable income. Combine that with monsoon-driven demand, and you have a strong case for both FMCG and entry-level auto, especially two-wheelers and budget ancillaries should benefit too. Another theme is insurance—health and life insurance demand is picking up as financial awareness grows. Q. For someone entering the markets in 2025, how can they build an 'all-weather' portfolio that withstands both geopolitical and domestic turbulence? ADVERTISEMENT Puneet Sharma: Investors today have access to highly diversified options. For an all-weather portfolio, I recommend starting with ETFs like Nifty 50 or BSE 500. These provide broad exposure across sectors and include large-, mid, and small-cap 500 even includes emerging companies that could turn into multibaggers. ETFs are a great way to gain diversification without stock-picking. But remember, no portfolio is completely immune to market corrections. There will be dips like we saw in October 2024 or March 2025. The key is to stay invested through those phases. Equity investing is not about overnight returns; it's about wealth creation over time. Patience is everything. Q. Would you recommend a specific asset allocation ratio for medium to high-risk investors right now? Puneet Sharma: At Whitespace Alpha, we're focused on long-term capital appreciation via equities, so our fund is 100% equity. But I believe a 60:40 split between equity and debt is healthy for most medium to high-risk investors. It provides some cushion while allowing meaningful equity more aggressive investors, a higher equity allocation makes sense. Q. What should investors do right now? Should they rebalance or wait it out? Puneet Sharma: My advice is to stay the course. If you've done your research, believe in the companies you're invested in, and understand their business fundamentals, don't react to short-term the market rarely works in the long term. Many studies confirm that even missing just a few good days can significantly impact your overall returns. Rather than trying to exit at the top and re-enter at the bottom—which is often just guesswork—stick with your long-term something fundamentally changes about a company or sector, by all means, reassess. But don't make investment decisions solely based on short-term events or noise. Disclaimer: Recommendations, suggestions, views and opinions given by the experts/brokerages do not represent the views of Economic Times. 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Time of India
17-06-2025
- Business
- Time of India
ETMarkets Smart Talk - Missed the 2025 Rally? Don't chase—ease in with SIPs & structured debt: Puneet Sharma
In this edition of ETMarkets Smart Talk, Puneet Sharma , CEO & Fund Manager at Whitespace Alpha, offers a grounded perspective for investors navigating the post-rally landscape of 2025. While many are grappling with a fear of missing out ( FOMO ) after sitting on the sidelines during the market 's early surge, Sharma urges caution over emotion. Instead of chasing momentum, he advocates a disciplined, phased approach—leveraging SIPs and structured debt strategies to steadily build exposure without taking on unnecessary timing risks. Sharma also shares his views on market resilience, sectoral opportunities, and why domestic flows are now the backbone of Indian equities . Q) How do you see markets in the medium-to-long term? A) Honestly, the volatility in June doesn't worry me too much. It feels more like the market catching its breath after a fairly strong first half. If you look under the hood, India's still a domestic-demand-led story, and that engine's running steady. Other emerging markets have had a good run — partly thanks to currency moves and commodities — but we've had a more balanced, fundamentals-led path. From a medium- to long-term perspective, I'm still constructive. We're in the middle of an earnings cycle that's holding up well, domestic flows are steady, and with policy continuity now behind us, I think the market has more depth than it's being credited for. Short-term underperformance? It happens. But the long-term direction hasn't changed. Q) What's your view on the June MPC rate cut and what do you expect ahead? A) To be frank, the 50 bps cut was a bold but well-calibrated move. It sends a clear signal that the MPC is leaning into growth now that inflation is more under control. You could say they pre-empted global easing — which shows a certain confidence in our macro stability. That said, I don't think we're in for a deep rate-cutting cycle. Maybe one more cut, but after that, it's likely to be a wait-and-watch. If food inflation picks up due to patchy monsoons or crude spikes, the RBI will need to stay flexible. So, I'd say: calibrated, not aggressive — that's the path I see. Q) Which themes look attractive in this environment? A) What I find really interesting is how the old labels — like 'defensive' and 'cyclical' — are being redefined right now. The way I see it, three themes stand out: First, manufacturing exports — especially sectors like defense, capital goods, and engineering they're clear beneficiaries of the China+1 shift and global realignment. Second, rate-sensitive domestic sectors. Q) Will a normal monsoon support consumption and autos? A) Yes, and quite significantly — especially in rural-focused segments. A good monsoon tends to lift agri incomes and unlocks discretionary spending. Two-wheelers, tractors, even value-end appliances and staples — all stand to gain. We've already seen rural demand lagging a bit, so this could be a much-needed catalyst. That said, the devil is in the distribution — how the rain is spread and how it supports the kharif season will be key. So, cautiously optimistic, I'd say. Q) What's your take on flows — FIIs returning, DIIs staying strong? A) It's been good to see FIIs turning net positive again especially with political uncertainty behind us and rate expectations easing globally. But we have to acknowledge: FII flows are fluid. They'll react to global yields, oil prices, and the dollar. What gives me more confidence is the strength and resilience of domestic flows SIPs, long-only DIIs, pensions they're now the bedrock of this market. Unless there's a major global shock, I don't see a sharp reversal. India is no longer just a high-beta EM play we're increasingly being viewed as a strategic allocation. Q) Any sectors or themes to avoid right now? A) To be honest, we're a little cautious on commodities and global cyclicals, especially those tied to China's industrial cycle. Visibility is low and the risk-reward just doesn't look compelling. Also, some parts of the tech IPO pack still feel a bit ahead of themselves as valuations haven't quite aligned with profitability yet. The market's in a mood where it's rewarding stability and delivery. So we're avoiding names that are still built more on promise than actual performance. Q) Block deals and promoter selling — red flag or business as usual? A) I think we have to view it in context. Yes, there's been an uptick in block deals and some promoter selling, but in most cases, it's just portfolio rebalancing or estate planning after strong wealth creation. It becomes a concern only if it's paired with weak results or a change in governance tone and we haven't really seen that. In fact, most of these blocks are being picked up by long-term institutions, which speaks to the underlying confidence in those businesses. So right now, I'd say it's business as usual. Q) Small & midcaps vs large caps - where do you stand now? A) Valuations in the small and midcap space are definitely rich in parts. There's quality out there, no doubt, but you have to be selective. We're avoiding names where momentum has pushed price far ahead of fundamentals. Focused bets on companies with clean balance sheets and earnings visibility still make sense. On the other hand, large caps, especially in banks, capital goods, and industrials, are offering better relative value right now. A balanced allocation makes sense in this phase with a little more tilt toward quality large caps. Q) What's your advice for investors feeling FOMO after sitting out the early 2025 rally? A) To be honest, this happens every cycle. And the worst thing you can do is react emotionally. If you've missed the first leg of the rally, don't try to time the top or bottom staggered buying is your best friend here. SIPs, tranches, even simple discipline in allocation can help ease in without taking on timing risk. For those still uncertain about equity timing, allocating a portion to structured debt strategies can be a smart interim approach. It allows your capital to work earning steady, low-volatility returns while you gradually build exposure to equities with greater confidence.
