• 00:00A lot of interest coming in from India. Weve got an absoluteflyer of a market there equity wise and. Whats behind it overall. You know one thing which is concerning that the marketdoesnt have that much breadth. Hi. So I see the markets rally has been driven by a couple offactors. The biggest one has been the earnings recovery you know because if you look at the last seven eight years the Indianmarket earnings growth was minuscule. It was even sub 5 percent full a few of that years. Now the expectation is that weregoing into an area where the unequalled can be in excess of 25 30 percent for a few years even very violent indeed PSU bankingspace some of the private banks. And over and above that we are seeing commodity cycle picking up and even the capitalformation. So clearly the deep positiveness is all around DAX. And then the other factors that we have been exporters ofsoftware which is seen a bit of a big revival globally because of the digitization. So these are the two big themes coming out.And actually what you are looking at is actually buying in these areas rather than our other markets. So as you rightly pointedout the market is flying but its flying in particular area. Theyre not across the board.Exactly. Im suggesting how much of it is coming from interest from abroad Santosh.So actually its a big proportional threat theres abroad but what do you mean. What were also seeing is that the Indianretail dies because of some of these mid and small caps are framed as those of the Indian retail interests. The large capsbecause of the fire. Because were seeing a good amount of a fire for those in India. But we are also seeing a for recordbreaking retail inflows directly into the market and not to the intermediation model. So that is also causing a lot of heatingup in the mid and small cap space. Im just wondering whether we could be on the cusp of asignificant correction because he could take a look at the stocks trading above that 50 DMA. Thats possibly half the ratecurrently at 45 percent from 100 percent before. And so there are particular areas where we can actually seecertain areas where the stocks are good are going be above the fundamentals so. So we are worried about certain segments in themid and small cap space. Definitely in the large cap space. What we are seeing is that its not about where they are tradingcompared to their last 12 months because a lot of stocks in that particular area. So B2B the banking space some of the bankswhich we the corporate banks which we look at or some of the software companies they help dehydrated anything for four orfive years then following 2019 20 because they were going to drop sites. And the cycle that has done so in the large capspace specifically in the corporate banks and in the technology space were not seeing a lot of extra activity and we are notexpecting that that will crack down. But medium small cap space and certain areas within DAX I would definitely say that theylead. The valuations have shrunk above what we can think is reasonable.Santosh I want to take a look at El I see. The government has suggested that its mulling over allowing FDI in in his IPO. Howmuch interest do you think that will be. Does he Lacy fit a model. I would take an exceptional model. Andits something even strong company now. In the interest and all depend on how the garment treats it. Because you know deep innation had a lot of advantages when it came into underwriting for last because it because the only insurance company before2000. And thats why the all the policies we delay to use right now. Used to have government guarantees a lazy undergroundbusiness on minuscule capital short. They had multiple advantages in the past but they had a lot of disadvantages orinefficiencies built up also in the system. So the interest was totally depend on how the government positions it. If they arerelieved to sort of let it go. A lot of their grip on their. I think there could be significant interest. But if the governmentsays thats okay we will have to. We will run it like our own company then I think it it can be a problem for the IPO.Suggests the other thing which could be a problem for an IPO is that the investment book has to be revealed does it not. Andits not been publicly disclosed before. That could ruffle feathers or it could actually encourage people to invest. Itjust depends what they actually include in it. So if he if he is talking about investing look for Laci I thinkthat is an area where no one has an idea because if its one of the most opaque investment books and because of the nature ofthe business itself and second parties that Laci manages around to me to manage it on 500 billion dollars and more than 500billion dollars and it can be a trillion dollar and make five to seven years. And I dont know how many companies the process wasyou know of which investment companies will have a trillion billion a trillion dollars in their assets and be in this onlyin their own country. So its almost like they all know about the inefficient becomes also something to own almost all thestocks where they could Google. And now when being in their own country wanting the same stocks how can its almost moreefficient if you can create. And the second part is. They have been buying all these VIX stocks which people believe is on theYvonne Man Guy Johnson lately. Its its a lot wins. That is one area where I think a lot of clarity which is if the Goldman canbring it it can create some bit of attractive. Santosh just at the moment just going to break you some breakingnews well just get back to you. So dont forget Wall Street and apparently China are reviving talks in a hunt for common ground.This is a scoop by Bloomberg at the moment an influential group conceived during the escalating strains that weve beenwitnessing of course preparing a new round of meetings before years end. This is what were getting at the moment. Accordingto a person familiar the talks will feature emissaries from U.S. finance and Chinese regulatory officials really at the momentpuzzling as to what should be done in terms of the crackdown on a number of companies here as well. And of course protractedstandoffs which are taking place as well on issues such as market access access and data security as well. So there we go.Thats a news story just breaking for us here as well. Santosh very very quickly here. How much does the momentum for Indianstocks remain and how high do they go. Very quickly. So I would think if for what arming the league woman isprogressing then yesterday there was this announcement around who and how the most theyre going to mobilize assets if thegunman progresses and keeps on on fruits from itself capital formation. Actually we can see substantial upside maybefrom your hunt were expecting that it should grow in line with it. That UBS clawback is around 20 percent growth rates in ETFand 20 percent people sit in the market. Thats our expectation of the markets is.

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