Vinay Paharia, CIO, PGIM India MF, says some of the sectors with many of these high growth companies include the healthcare sector, consumer discretionary sector, some companies within the financial services, particularly the private sector banks, and high growth NBFCs. Wherever we are seeing companies with the ability to grow on a sustainable basis at a higher rates of growth, those companies would materially outperform.
Look at the recovery in China on the back of the latest news flow. Indian markets are seeing a bit of a profit booking. The Japanese markets are also under pressure on the back of political developments. Given the kind of setup that we are in with respect to what is happening in the global and the US markets as well, how do you see India placed and going ahead what kind of fund flows can we expect given the kind of recovery that we are witnessing in China?
Vinay Paharia: In the last few months, we have seen volatility significantly go up, not only in India but globally, led by various political monetary developments. In China, we have seen a significant economic slowdown and as a result there has been a substantial monetary stimulus given by the government and the markets clearly seem to be reacting to that.
On the other hand, in Japan, we are seeing the reverse. We are seeing a monetary tightening in Japan, which is effectively causing the popular yen carry trade to reverse. And in India, we are seeing a reversal of the popular trade where low growth companies were seeing significant returns