What is the outlook for HDFC Bank post its merger? Samir Arora explains

economictimes.indiatimes.com:

«Let us not call it liquidity reversal because the previous trend was only like odd in some sense although it happens every now and then but generally FIIs are buyers as in the last 20 odd years they would have been buyers in maybe 16 of those years,» says Samir Arora, Helios Capital.Let us talk about the big picture and the big picture is that flows have turned and flows are looking very strong. When you speak to some of your investors and your LP associates, are you getting a sense that the liquidity reversal which has happened from April onwards it is real and it is here to stay?100% and let us not call it liquidity reversal because the previous trend was only like odd in some sense although it happens every now and then but generally FIIs are buyers as in the last 20 odd years they would have been buyers in maybe 16 of those years.

Now the story is on two legs. One leg is that people are, say, frustrated with China or whatever and they have really done badly investing there and the second is that separately India has a good story to tell.

We do not want it to look like a story that we are getting money because you guys do not know what to do with your money now that you find China unattractive. But that, hey, separately India was doing well.

You would not notice it for two-three years. Actually, India has done well over last 5 years, 10 years, 15 years, 20 years and 25 years in dollar terms.

But, okay, now you are having these two parts of the story and that is why this, I think, will continue for a long time or reasonably medium time.So, what happens now? Flows are strong and markets are perhaps fairly valued. So, are we likely to see a situation where excesses will get built up? Well, first thing is that fairly,