More broad-based sector themes to play out over next few quarters: V Jayasankar

economictimes.indiatimes.com:

«All these flows have really supported and whenever you have these strong flows, you also need some very strong supply of paper and the block deals from whether it is promoters or the private equity investors give you that window,» says V Jayasankar, Kotak Investment.First up, we have, of course, seen the June number for block deals being at the highest level over the last three to four years, the question is how long do you see this supply and these block deals really continuing in the market?I would say the block deals have been quite prevalent for the last 18 months, so even if you look at calendar 22, we had about $14 billion of blocks, so the last transactions that happened in the previous year where Max Healthcare sell down by KKR and CPPIB have been selling down in Kotak. We are involved in both of these transactions and the first one is about $1.5 billion in two tranches.

So, it is not that blocks have not been pretty prevalent over the last few quarters, in fact it has been. It is just that the momentum has picked up very significantly in June and the factors are one, the corporate earnings are very strong and FPI investors are back in a very-very significant way.

I think they have probably pumped in more than $10 billion in the last quarter along with the DII flows. All these flows have really supported and whenever you have these strong flows, you also need some very strong supply of paper and the block deals from whether it is promoters or the private equity investors give you that window.