Sohum Asset Managers backs large banks and telecom for growth

CNBC TV18

Sanjay Parekh, Founder and CIO of Sohum Asset Managers, said that he continues to focus on major banking and telecom names in India as part of his strategy.

“We have all the larger banks, ICICI Bank, Axis Bank and State Bank of India (SBI) and HDFC Bank,” he said. The firm recently added Canara Bank as well.

In the non-banking segment, Parekh pointed to a mix of lending and brokerage exposure. “We have Bajaj Finance, Indiabulls Housing, which is a housing finance play, and then a broking entity, Angel,” he said.

Telecom remains another key focus for Sohum Asset Managers. “We are big overweight on Bharti Airtel, and we have Indus Towers,” Parekh said. He added that the team expects progress on Vodafone’s financial challenges. “There will be a solution to Vodafone,” he said, even if it takes time.

Below are the edited excerpts of the interview.

Q: We're hoping now you're the good luck charm, because you decided to come to the office today, and the bulls managed to take things above 26,100 once again.

Q: But still, rupee at 90 and a 25 basis point cut, do you think this is done now?

A: The governor is very progressive, and he’s pro-growth, and he's aware that we need to stimulate growth, so I’ll not be surprised if there could be one more 25-bps cut in the next three months. If growth doesn't revive then, and inflation is on his side. And we are broadly in a Goldilocks scenario now. We are seeing balanced pressure on the balance of payment and fiscal, because the second half will not have room to spend in a big way. So, then that's one more ammunition he has — one more rate cut if needed.

Q: On the rupee, you think it is done? Books closed for 2025 — is it done? Because a lot of foreign banks, etc., will close their books, go away for the last 15 days, right? So perhaps that pressure also will not be there.

A: So it’s a tough one. The pressure on the balance of payment is there. If you see in the first half, it's $16 billion negative, impacting the reserves. So it's not that we are out of control. And RBI has more ammunition today, as you saw a swap line being opened. So if required, they may still do a few more things to stabilise the rupee. And I think we are in control that way. But largely, we are done. It's tough to call on forex.

Q: How would you position yourself then? Consumption could get a bit of a boost. Discretionary consumption is something that people have been liking while capex slows down. I think a couple of those names are liked as well from the infra space. So incremental money, how will you allocate?

A: So we are positioned in domestic discretionary, financials, because they are reasonable in valuation, logistics, telecom, and capital goods. So, all the domestic plays, we are positive, and it's broadly working for us.

Q: For telecom, what do you like?

A: We are big overweight on Bharti Airtel and we have Indus Towers, both of which we like, because we believe there will be a solution to Vodafone — it will be a slow process, but ultimately there will be a solution.

Q: And on financials, what are you playing? Are you playing the NBFCs? Are you playing the larger private sector banks, PSUs, or the smaller banks that suddenly have a lot of interest, and a lot of money as well coming their way?

A: So we have all the larger banks, ICICI Bank, Axis Bank and State Bank of India (SBI) and HDFC Bank, and then we recently increased Canara Bank. So, we have all the larger banks, and in NBFCs, we have Bajaj Finance, Indiabulls Housing, which is a housing finance play, and then a broking entity, Angel.

Q: If you're expecting another 25-bps rate cut, that would mean that there'll be further pressure on net interest margins (NIMs) especially for private banks. How do you navigate that?

A: So this year, most of the Street is not expecting anything major in terms of net interest income (NII) and NIMs. And surprisingly, in the second quarter, there was pressure, and yet the stocks went up. Yeah. So I think it's all taken in stride that whatever damage has to happen on NII and NIMs will happen this year, but that will be a base for next year. So, when you see them next year, they will look much better.

Q: In that financial space, the fact that we've seen so much of FDI coming in, RBL Bank, Sammaan Capital. Anything that strikes you in that space, like the mid-size banks, which potentially may see more FDI investments?

A: So certainly, if you see RBL Bank, or Yes Bank, or even recently what happened to JSW Steel. I'm digressing, but it's big. It talks about a person cutting a check on EV of ₹53,000 crore for 4.5 million tonne. So, it is really positive from an FDI perspective. But, all these where they've invested, the ROEs are going to be back-ended. So, we would want to be at a place where the divergence in return is not large, that’s the point. So, we are in the larger cap space.

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ICICI Prudential Asset's India IPO to open on December 12

CNBC TV18

ICICI Prudential Asset Management will launch its Indian initial public offering next week, with British insurer Prudential planning to sell about a 10% stake in the company.

Prudential will sell up to 49 million shares in the IPO, compared with an earlier plan of 17.7 million shares, ICICI Prudential said in a filing. The asset manager issued bonus shares earlier this year, increasing its outstanding shares.

The fund house, which had filed for the IPO in July, is a joint venture between India’s second-largest private lender, ICICI Bank, which holds a 51% stake, and Prudential, which owns the rest.

The three-day share sale will open on December 12, with anchor investors bidding a day earlier on December 11. The stock is expected to be listed on Indian exchanges on December 19.

The asset manager is not selling new shares and ICICI is not offloading any of its stake in the IPO.

Reuters reported last week that the company is targeting a valuation of $12 billion through the $1.2 billion IPO.

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RCS - Prudential PLC - Pudential plc - Filing of RHP for IPAMC IPO

London Stock Exchange

RNS Number : 5136K Prudential PLC 05 December 2025

NEWS RELEASE

Prudential announces filing of red herring prospectus for

ICICI Prudential Asset Management IPO

6 December 2025, Hong Kong - Further to the announcement dated 8 July 2025, Prudential plc ("Prudential") today announces that ICICI Prudential Asset Management Company Limited ("IPAMC") has filed the Red Herring Prospectus ("RHP") with the Registrar of Companies, Delhi and Haryana at Delhi, for an Initial Public Offering ("IPO") comprising an offer for sale of up to 9.91% of the equity share capital in IPAMC by Prudential Corporation Holdings Limited ("PCHL", a subsidiary of Prudential). The RHP has also been filed with the Securities and Exchange Board of India ("SEBI"), BSE Limited ("BSE") and National Stock Exchange of India Limited ("NSE").

The RHP is also available on the websites of IPAMC, the book running lead managers to the IPO, SEBI, BSE and NSE. The IPO and the amount of the offer for sale remain subject to market conditions, requisite approvals and other considerations.

As previously indicated and in addition to the potential IPO, Prudential plc continues to consider a private sale of 2% of IPAMC to ICICI Bank Limited. We are also considering an additional pre-IPO placement to select institutional investors before the completion of the IPO.

Contact

Media			Investors/analysts
Simon Kutner	+44 7581 023260	UK	Patrick Bowes	+852 2918 5468	HK
Sonia Tsang	+852 5580 7525	HK	William Elderkin	+44 2039 779215	UK
			Ming Hau	+44 2039 779293	UK
			Bosco Cheung	+852 2918 5499	HK
			Tianjiao Yu	+852 2918 5487	HK

About Prudential plc

Prudential provides life and health insurance and asset management in Greater China, ASEAN, India and Africa. Prudential's mission is to be the most trusted partner and protector for this generation and generations to come, by providing simple and accessible financial and health solutions. The business has dual primary listings on the Stock Exchange of Hong Kong and the London Stock Exchange . It also has a secondary listing on the Singapore Stock Exchange and a listing on the New York Stock Exchange in the form of American Depositary Receipts. It is a constituent of the Hang Seng Composite Index and is also included for trading in the Shenzhen-Hong Kong Stock Connect programme and the Shanghai-Hong Kong Stock Connect programme.

Prudential is not affiliated in any manner with Prudential Financial, Inc. a company whose principal place of business is in the United States of America, nor with The Prudential Assurance Company Limited, a subsidiary of M&G plc, a company incorporated in the United Kingdom.

www.prudentialplc.com/

Potential investors should note that investment in equity shares involves a high degree of risk. For details, potential investors should refer to the Red Herring Prospectus filed with the Registrar of Companies, Delhi and Haryana at New Delhi, including the section titled "Risk Factors". Potential investors should not rely on the DRHP filed with SEBI in making any investment decision. This announcement has been prepared for publication in India only and is not for publication or distribution, directly or indirectly, in or into the United States. The equity shares described in this announcement have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any other applicable law of the United States and, unless so registered, may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. Accordingly, the equity shares of the Company are being offered and sold (i) within the United States only to persons reasonably believed to be "qualified institutional buyers" (as defined in Rule 144A of the U.S. Securities Act) pursuant to Section 4(a) of the U.S. Securities Act, and (ii) outside the United States in "offshore transactions", as defined in and in reliance on, Regulation S of the U.S. Securities Act and the applicable laws of the jurisdictions where those offers and sales occur. There will be no public offering of securities in the United States.

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Sensex gains 500 pts from day's low, Nifty above 26,100: RBI's 25 bps rate cut among key factors behind market rise

Moneycontrol

The equity benchmarks recovered from early losses on Friday, with the Sensex climbing over 500 points from the day’s low and the Nifty moving above 26,100, as sentiment improved after the Reserve Bank of India (RBI) announced a policy rate cut.

The market had opened on a volatile note amid continued foreign fund outflows and mixed cues from overseas markets.

At around 10:55 a.m., the Sensex was up 196.89 points or 0.23 percent to 85,462.21, while the broader Nifty advanced to 26,093.60, up 59.85 points or 0.23 percent.

Bajaj Finance, Infosys and Shriram Finance were among the top gainers in the Nifty50 pack, rising up to 2 perent, while InterGlobe Aviation and Hindustan Unilever declined up to 3 percent.

Key factors behind market rise

1) Policy rate cut: RBI’s Monetary Policy Committee (MPC) voted unanimously to reduce the policy rate by 25 basis points to 5.25 percent. A rate cut eases borrowing costs for companies and consumers, which is seen as supportive for economic activity and often lifts equity sentiment.

2) Rupee rises: The rupee strengthened 20 paise to 89.69 against the US dollar in early trade, after touching record low in previous session. A firmer domestic currency can help reduce import costs.

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3) Crude declines: Brent crude slipped 0.17 percent to USD 63.15 a barrel. Softer crude prices tend to ease inflationary pressures and lower input costs for several sectors, providing an additional boost to the market.

4) Firm global cues: Asian markets were mostly firm, with South Korea’s Kospi and Shanghai’s SSE Composite trading in the green. US stocks ended on a flat note overnight.

5) India Vix declines: The India VIX, a measure of market volatility, fell 2.29 percent to 10.57. A lower reading is usually associated with improved risk appetite among investors.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

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Nokia And Airtel Collaborate To Offer Network APIs To Developers

dpa-AFX

Nokia Oyj

+0.65%

ESPOO (dpa-AFX) - Nokia Oyj (Nokia Oyj) on Thursday announced a partnership with Bharti Airtel to give third-party developers access to Airtel's pan-India network through Nokia's Network as Code platform.

Through this collaboration, Airtel's network APIs will be offered on a subscription basis to developers, system integrators, and enterprises, enabling them to build solutions using AI, 5G, edge computing, and other network capabilities.

Nokia's Network as Code platform, with over 60 global partners including telecom operators, AI and data center companies, CPaaS providers, systems integrators, and software vendors, simplifies access to network functions while providing secure, standardized tools for developers.

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HDFC Bank, ICICI Bank may see some short-term pressure following change in Bank Nifty, FinNifty weights

Moneycontrol

HDFC Bank

+0.71%

The upcoming rebalancing of Bank Nifty and FinNifty, two of India's leading BFSI indices, will reshape India’s financial market benchmarks by reducing the concentration among the country's largest lenders and giving greater weightage to PSU banks, insurers, NBFCs and exchanges. As a result, shares of bluechip, large-caps HDFC Bank and ICICI Bank may see some short-term selling pressure.

This rejig will reduce the overdependence on heavyweights like HDFC Bank and ICICI Bank, while also improving diversification and making the indices more aligned with sector fundamentals. However, in the near-term, short-term outflows and volatility in the indices are to be expected.

The Bank Nifty index will expand from 12 to 14 constituents, with the new methodology reducing the weight of the largest stocks to make room for additional names. Union Bank of India and Yes Bank will join the index effective December 31, 2025.

Separately, the Nifty Financial Services index will adopt tighter weight caps, setting individual limits of 19 percent, 14 percent and 10 percent for its top three constituents. Non-F&O stocks will also face stricter controls, capped at 4.5 percent individually and 10 percent in total.

Blue-chips see reduced weightage

A key factor driving the rejig is to steeply reduce the weight of HDFC Bank and ICICI Bank, both of which dominate Bank Nifty and FinNifty today. According to Hitesh Tailor, Choice Broking the new structure will make Bank Nifty “less dependent on these heavyweights” and more sensitive to moves in PSU and mid-tier lenders.

VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, added that this move will reduce vulnerability, especially for retail traders. “The reduced weight of the majors will make the index less vulnerable to manipulation as happened during the Jane Street episode,” he said.

Volatility may see an uptick though. "When private-bank earnings decouple, the index will swing harder. The forward profile shifts from “quality-led compounding” to “cycle-led spikes,” so relative outperformance becomes more macro-linked than franchise-linked," noted Sonam Srivastava, Founder and Fund Manager at Wright Research PMS.

Though the index changes may cause an estimated $322 million and $348 million in passive outflows respectively from HDFC Bank and ICICI Bank, Vijayakumar emphasised the long-term impact will be negligible, "for fairly valued blue chips of this size, medium to long-term performance will not be affected.”

He added that given the outflows, there will be some short-term pressure on the large-caps. According to him, the weakness in share prices would be an opportunity for investors and mutual funds to accumulate these stocks.

Therefore, while short-term pressure might exist, in the medium- to long-term, the performance of Bank Nifty will not be impacted.

PSU Banks rise in weightage

The public banking system has been on a dream run, up over 26 percent this calendar year. The Bank Nifty rejig increases PSU banks’ collective weight in the index, which can lead to both higher returns, and higher volatility.

"PSU Bank's ongoing momentum and expected passive inflows can push the index higher as the rebalancing progresses. However, increased PSU influence also means the index may react more sharply to macro cues such as bond yields and policy changes, introducing pockets of short-term volatility," noted Tailor.

Chokaalingam G concurred. While he agreed that public bank stocks are more volatile than private banks, the risk doesn't come from the higher weightage being a public or private bank. "It comes from the size of the bank, with mid-sized banks more volatile than large, established

PSUs," he said. To that extent, there will be more volatility.

Srivastava added that if the PSU outperformance sustains, Bank Nifty can actually overshoot on the upside. "The catch is that PSU banks structurally carry lower valuation floors. When the rate cycle turns or fiscal spending cools, the downside gap is wider. So expected returns increase in expansions, and left-tail risk rises in downturns."

FinNifty: the key benchmark

Most banking and financial services mutual funds are benchmarked to the FinNifty index. As the index becomes less bank-heavy, allowing faster-growing non-banking financials to gain prominence, Tailor said that it would lead to a more diversified and balanced financial-sector index over time.

This raises key questions for investors: will alpha become harder or easier to generate as the benchmark becomes more diversified, how will changing index behaviour impact future returns, and will fund houses tweak their schemes or stay the course as the new structure comes into effect?

According to Chokkalingam, "fund managers should welcome the changes." He said the biggest challenge for any fund manager is beating the benchmark.

"When the benchmark is too concentrated, the chances of underperformance are very high,” he explained. With a more diversified index and lower concentration risk, he believes mutual funds should be happy with these changes since overall volatility is expected to decline.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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U.K. broadband prices fall further amid rising competition

Investing.com

Advanced Micro Devices

-0.09%

Meta Platforms

-1.04%

Investing.com -- UK broadband pricing continues to face downward pressure as competition from alternative networks intensifies, according to a new UBS report released Wednesday.

Despite operators implementing higher annual mid-contract price increases, front-end pricing has not risen, creating a gap between initial and ongoing customer rates that is preventing average revenue per user growth.

Virgin Media has followed BT’s lead in raising annual mid-contract prices to £4 per month every April, up from £3.50 previously, while Vodafone has increased its annual adjustment to £3.50 per month from £3.

However, initial broadband pricing has decreased significantly since September, with most providers now converging around the £20 per month price point. Virgin Media has reduced prices by £3-5 per month on its 125Mbps to 1Gbps offers, now charging £22-26 monthly while including three months of free broadband and Netflix with select plans.

Vodafone Group PLC (LON:VOD) has cut prices by £3-6 per month to £20-23 for its 150-500Mbps services, and BT’s Plusnet brand has reduced rates by £2 to £21-24.50 for 150-300Mbps connections. Alternative network providers are offering 150Mbps to 1Gbps speeds for £15-20 monthly.

Sky stands as an exception by increasing most standalone broadband tariffs by £3 per month, though it offers a TV/broadband bundle at £35 monthly that effectively prices broadband at £20.

Providers are also competing with aggressive switching incentives, with EE, Hyperoptic and Youfibre offering up to £300 to cover early termination fees, while Sky, Vodafone and Virgin Media provide up to £200 in switching credits.

The pricing environment has drawn political attention, with the UK chancellor requesting that Ofcom review the situation of mid-contract price increases.

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