You suffered this when we spoke several months ago. You ran out of cement. You are flowing with FMCG. Do calls have calls? Those contract calls, but are they still playing?
Nilesh Shah: So, in this more cold midcap It is companies Where we believe they are moving AI in faster means and giving cheap and better solutions to their customers. In FMCG, we are more leading to discerning consumption instead of consumer staple. Roti, Kapada, Makaan Ab Sab Logo Ne Achieve Kar Liya Hai, the focuses more on healthcare, on Travel, Tourism, Hotel, QSR Those kind of things.
We remain suffering from consumer discraption because EK Lakh Croce Ka Tax Rebate has played and that’s back and forth. Then, there is EMI reduction, thanks for 1% reduction in interest rate, and at the end of a place to 827 solutions to play government employees.
Compete with this currency in consumers’ pockets must result in discigtionary space in consumer movement more than expected. So, we continue to remain vigilant in sectors such as midcap, the discretion of consumer, banking and chemicals.
Two events playing in the market. A) There’s a flurry in IPOS, I mean last week you have over 20 IPOS on the mainboard as well as SMEs. The kind of valuations A) they come and then b) another trend in this market’s promoter block deals and a single discount. What are you doing with that?
Nilesh Shah: So, one, we are grateful to promoters and IPO companies because they provide supply. If they do not provide supply, we do not know if we are in a position to buy the market or not. Second, again, to IPOS one should be more chosen. Just because of a company of a company to come, you won’t go and invest there. If you have a better version of that available in the second market, why do you go to IPO? So, it’s more likely to choose from the IPO and now it’s good to have a lot of the IPOs to come. They are not all successful. Not all of them can be worth the Creator for their shareholders. Undoubtedly, as a fund of each other, we approached each IPO company.
We have to put our resources and we need to work hard to choose the right company. In terms of, the promoter seller, SailboatIn a sharp discount, that’s good to be the market. Nor do we agree with the promoter nor do they love us. We should come at a price fair in our opinion for a transaction that happens. Many promoters undoubtedly progressing to the market that looked at their appreciation, but a large part of that market back through TamoAIF, Mutual Fund, Family Office, Direct Investment. So, in some sense when you look at one side of the equation, remember to have a second part of the equation as well to play here.
Let’s look at two reasons why. Different causes between the past quarter and this quarter is, we have good monsoons so far. The monsoons are early. The rain distribution is beautiful. Second liquid. Indeed, liquidity is now over. These are the two reasons not playing in the last quarter. Now they played the month in June. When will this impact appear in earnings?
Nilesh Shah: So, monsoon while so much, it cannot play before December 25th quarter. July is the moon whose rain in terms of distributions, spatial distributions, as well as the amount critical. Upon arrival of Kharif yield, it must be September to December effect, feast, and Kharif Season Expute together. In terms of liquidity, while the RBI is playing on the front foot in terms of providing liquidity and is entering over 10 lakh core liquidity amounts to a form or other, credit growth remains in the upper number. This is not a double number. So, liquidity is like water in the dam, so good. It provides confidence. But finally the water should flow into the tap. The pipe should be clear. And as long as we don’t see credit growth picking up, as long as we do not see the investment cycle selection, the benefits of liquidity can be found in the economy as one person wants to be seen in the economy as one person wants. But remember that it is always important to have a dam water and hope it will flow in tap instead of no dam water.
If I have to ask you what the investor’s ideal strategy should be at this point in time given that markets are very close to their high level. Great Bank Trading at a high-level higher. What is the ideal portfolio to give the fact that for markets the income expected is on a positive side. We live in uncertain geopolitical environments and the selected sectors give you valuations and relief growth. What is your advice to investors?
Nilesh Shah: Investor’s first and first recommendation is moderate returns to return. Last five years returns cannot be repeated in the next two to three years. Markets are valued or slightly small in value valued and market rector may not occur if your opinion will operate our opinion of our opinion, low double digits. So, first and most importantly, please moderate your return. Number two, outside justice, there are asset classes, again, invite, debt, funds to each other, atif, index, or ets. Obviously you need to differ. Please maintain your Assok loan asset on debt, equity, commodity, and real estate. Don’t put everything in equity because the last five years of justice has given good return. So, follow the Dharma in assocation in the asset and moderate your backwards returns, that’s our recommendation to investors.
But if you need to undergo your neck, where asset classes will be the best advocate for the year ahead, which one do you think?
Nilesh Shah: So, always hard to take a short term call on a one-year basis. But I say that the expected return from all these asset classes in the next one year is likely to be in a very narrow. It can’t be the one on the x side and so on the y side. The gap will be more narrow and therefore the maintenance of asset allocation can be very critical.
