When it comes to a foreign institutional investor, what kind of spirit you are choosing, especially for India, because, in the end, we have seen that FIIs are making a strong return, especially in the cash segment. Do you think they are here to live after what has happened in the world?
Vikas Khami: I mean, FII flow will be very strong. The moment the Fed starts to come down, even if it comes in three to six months, it will get the next level of acceleration.
But anyway, the Dar Lar Index itself has paved the way to the emerging markets and hence I am a positive, generally emerging market of foreign stream, especially towards India. And today, I mean the weight of foreigners towards India, this is about 1.6-1.7%. Even though they will be the same weight, there will be a very large amount that can be trillion dollars plus in the next 8-10 years.
So, I’m very positive about that flow and I have no doubt. I don’t think foreigners are thinking negative about India. It is just their wealth allocation or the allocation of the country that changes and which has already begun to move and will only accelerate in the coming days.
Also, we want to get your vote on the earnings season we have seen so far. Now, we are approaching the end of the earning season and this last time we had a conversation with you, you expected the earnings season to remain soft and that was the widespread consensus on the expectation of the same earnings season, but it has not been all bad and you have certain areas that have surprised. What we have seen after this earnings, have you revived the strategy anywhere, any change in the portfolio, wherever you weighed and have you lost weight or turned another way? What is the strategy and how are you now contacting in a portfolio?
Vikas Khami: The earning season is okay. I don’t know that we are always negative about the earnings season. We said that due to manufacturing choices of manufacturing and this tariff item in Q1, but not in last year’s Q4, that we were quite positive. Q1 may be a bit based on which area and which segment you are in, but generally, we are quite positive.
We are saying that due to liquidity improvement in the system compared to the previous year, a loss of minus 3.5 lakh crore will have a huge impact on corporate earnings compared to 1,40,000 or surplus over Rs.
The interest rate coming down will add a lot. So, in general, in my view, the financial year 26 corporate earnings will be better than the market expectations. There were a lot of downgrades last year. I think you will start watching upgrades ahead of Q2.
Q1 still I care because I don’t know what the impact has been affected by the shipment and the like, banking in Q1 and all the fields like, but generally I would say that someone should be careful but the fiscal year 26 I am very positive and the above research.
When you talk about a power theme, renewable energy zoog theme, let me really get your view on the full theme. It is also in a good number of counters listed which is also in the production of equipment, solar equipment. Is it the theme that you are seeing right now or you are reappearing on that theme?
Vikas Khami: We really have invested in traditional Energy, than energiers enabled. In view of our growth, India definitely monitors the lack of power. Globally, the entire ENERGY space, the ENERGY is being re -invested in transit. Therefore, it is an interesting play. I think I would just say renewable and all areas like all, there have been a lot of evaluation, so someone should take a lot of care about the risks before investing. Generally, in the direction, we are positive on this field.
Six months ago we talked about some of these themes in the renewable basket you just published. EVS was also a theme that was one of the discussions points, to add it to the list. Given what is really happening in the markets, do you believe that any opportunity in any such long -term growth pocket where you believe that the evaluation is now justified or you still believe that the evaluation is a little vague.
Vikas Khami: See, valuation plus-minus can go anytime based on 15% markets, but valuation is in a reasonable space for both markets, some extensive markets, some medium and smallcap space, some specialized fields were decorated, I think the celebration is built, it is to be careful on segments and spaces.
But recent updates have allowed to clarify that the market is usually in a good range and this is the reason why you are now looking at the market and the markets have returned to the lower level.
I do not think that India will be cheaply as soon as nature and interest rates fall below, so it is a vain exercise to wait for the valuation to come down.
At the same time, the Euphoria -based area is very sensible to avoid a narrative -based area. Someone has to stick to the fundamentals. I don’t think I want to buy stock cheap with good growth. It will not be available. Therefore, you have to continue to find good growth stories that are India.
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