We are still in waiting-clock mode but see how much FII sells India’s sales. We were looking at the data points. It has been a very exciting celloff. There have been five consecutive weeks fall. It seems that the markets have digested both tariffs and softened back home.
Mihir Vora: I will not say that the markets have completely digested it because the markets have gone down despite local purchases. I would say that the spirit is a little careful, it is optimistic but cautious. What happened is that we have seen a re -recovery of some Dollar Lir in the sense that we have been constantly weakening since February, and in the last few weeks, we saw the power of a few dollar lords.
It’s more technical bounce, DXY is getting closer to 96 to 100 but again on Friday, we saw that there was a correction. The dollar lare remains structurally weak currency. Generally, unless things are too uncertain, we should continue to get money from FIIs in India, except for these fluctuations. But the big point is that some domestic growth indicators are still not choosing to such an extent that no one is hoping.
For example, banking credit is one of the largest indicators and we are still a single number of numbers that are not durable or not compatible with the expectation of 6.5% GDP growth. We need some of those indicators to gain confidence that the current perception or the second half will be better.
The markets have not fully digested the overhangs we have, so we store some further consolidation or it would be the right time to say that the markets have become bottomed and now we can move on to a little recovery?
Mihir Vora: I will not call the top or bottom at this time on time. I’ll take it a day as there are so many parts and the tariff is one of them. Some macro indicators of growth, etc. need to be closely monitored. We need a little improvement there. We should take it a day at a time. I am not too boom or too much bearish at this time.
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When you come to the banks, you flagged out credit growth concerns and someone has seen that the whole board is played a lot, with many provisions for all banks right now. How do you disperse it in banks? When big people need to be part of your main portfolio, what is the following approach, small?
Mihir Vora: We are still sticking to large private sector banks, though we have little contact in PSU, but not much. The CALL is that the power of the pricing on the side of the property as well as the liability is a bit higher with the large private sector banks. Of course, they usually have a varied portfolio, so they may not be the fastest growing, but in terms of structural prices power and responsibility management, big banks are a little stronger. Until now, we are sticking to big private sector banks.
The US has imposed a temporary 25% tariff rate on India because we still don’t know what the final figure can be. In the midst of such uncertainty, how have you rebuilt your portfolio? Where is your current weight and underweight?
Mihir Vora: We have not really rearranged the portfolio based on the situation of the tariff because it is still a liquid situation and it never ends until it ends like President Trump. Negotiations will go to the wire, to tell the last day. Therefore, we are not taking big calls based on the tariff situation. But I would say that over the last few weeks, we are mostly rearranging or rearranging the portfolio based on the results. Based on the results, we have reduced banking a bit of contact and where our weight began, but based on the results, the largercap IT stock has increased more weight. Most of the regulations have become after seeing the results and trends.
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