Latest news with #QuantumAMC
Economic Times
3 days ago
- Business
- Economic Times
Mid and smallcaps expensive, selectivity crucial for investors: George Thomas
"Investors should be selective in their stock picks because broader market valuations are not cheap. Compared to the strong returns of the past three to five years, returns over the next couple of years might be lower, although still reasonably healthy," says George Thomas, Quantum AMC. ADVERTISEMENT If you look at the six-month trajectory, the market is still up by 6%. How do you see the market moving in the near term and the long term with respect to the Nifty and Sensex? More importantly, which sectors should investors consider if they want to allocate capital now? George Thomas: If you look at the recent market performance, it's driven by a few key factors. Firstly, the earnings profile of companies has been somewhat muted. For the March quarter, aggregate revenue growth was in single digits—around 6-7% for the BSE 500—while margins remained steady. In such an environment, valuations weren't supportive enough to generate high returns. However, looking ahead, we believe a few positive triggers are emerging. For one, the higher-than-expected rate cuts could eventually boost consumption and support some capex projects that may materialize in the coming quarters. The monsoon has also been reasonably good, which should benefit the rural economy. Irrigation activity and kharif sowing have shown healthy trends. With these factors, along with a relatively low base for FY25, we expect things to improve from here. That said, investors should be selective in their stock picks because broader market valuations are not cheap. Compared to the strong returns of the past three to five years, returns over the next couple of years might be lower, although still reasonably healthy. Let's elaborate further on the broader markets—specifically midcaps and smallcaps. It doesn't seem appropriate to talk about both market caps in the same breath anymore. Let's discuss them separately. There was a time when investors earned good profits from these segments. Valuations had cooled off a bit, but are we now looking at a time correction in certain pockets? And how are you positioned from a sector-specific valuation standpoint in midcaps and smallcaps? George Thomas: For mid- and small-cap investors, selectivity is crucial because there is froth in many areas. In our Quantum Smallcap Fund, for instance, we are holding about 13% in cash—which is higher than usual—reflecting our caution about valuations in that space. Some of our recent additions have been in the auto ancillary sector and a company catering to the FMCG space. However, investors need to adopt a bottom-up approach—you can't generalize. One must be mindful of valuations and evaluate each company's story individually. ADVERTISEMENT From a broader perspective, mid- and small-caps continue to be expensive compared to their historical averages. Not so much on a P/E basis, but if you look at price-to-book—an indicator of how profits compare to historical trends—there's clear evidence of froth. Hence, selectivity is companies we've added in the auto ancillary space are gaining new clients, including both domestic and foreign auto OEMs, and are increasing their components per vehicle. So, investors need to be very selective in this pocket. ADVERTISEMENT Let's shift focus to PSU banks. Indian Overseas Bank, for example, just reported a 75% rise in net profit to ₹1,111 crore, and the stock is up 2%. There's been a lot of action in PSU banks lately, especially with a 50-bps rate cut already in place and clarity emerging on the rate trajectory. How do you view this space going forward? George Thomas: We have been extremely selective in the PSU banking space. We currently hold just one PSU bank that has a large franchise and one of the lowest costs of funds. However, when you move further down the ladder, we believe that management and underwriting quality in many PSU banks do not match the best players in the sector. ADVERTISEMENT We are constructive on the banking sector overall. Even though there could be some near-term margin pressure due to rate cuts, we believe the market has largely factored this in. The asset quality concerns we saw in segments like personal loans, credit cards, and MFIs seem to be behind ahead, we expect asset quality to remain stable, and current valuations have already priced in some of the expected margin compression. Compared to their historical averages, some banking names—particularly in the private sector—continue to offer attractive upside. ADVERTISEMENT I'd like to bring your attention to the chemicals and fertiliser sector. With NITI Aayog recently releasing a roadmap to boost India's chemical industry, does this sector feature in your portfolio? What's your outlook considering the structural changes being proposed? George Thomas: We currently have no exposure to the chemical sector, primarily due to concerns around supply-side dependencies. Many of these companies are significantly influenced by how major Chinese suppliers behave, which adds it's hard to identify a sustainable moat in many specialty chemical companies. Their performance often hinges on regional dynamics, and given the scale of their operations, we don't see consistent structural advantages such as cost leadership. While there could be selective opportunities, from a broader sector perspective, we have not found an attractive combination of valuations and fundamental strength. Hence, we have stayed away from this space in our portfolio.
Time of India
3 days ago
- Business
- Time of India
Mid and smallcaps expensive, selectivity crucial for investors: George Thomas
"Investors should be selective in their stock picks because broader market valuations are not cheap. Compared to the strong returns of the past three to five years, returns over the next couple of years might be lower, although still reasonably healthy," says George Thomas, Quantum AMC. If you look at the six-month trajectory, the market is still up by 6%. How do you see the market moving in the near term and the long term with respect to the Nifty and Sensex? More importantly, which sectors should investors consider if they want to allocate capital now? George Thomas: If you look at the recent market performance, it's driven by a few key factors. Firstly, the earnings profile of companies has been somewhat muted. For the March quarter, aggregate revenue growth was in single digits—around 6-7% for the BSE 500—while margins remained steady. In such an environment, valuations weren't supportive enough to generate high returns. Explore courses from Top Institutes in Select a Course Category healthcare Data Science Public Policy Data Analytics PGDM Finance Cybersecurity Healthcare Data Science Leadership Management Degree Design Thinking MBA others MCA Others Operations Management Project Management Technology CXO Digital Marketing Product Management Artificial Intelligence Skills you'll gain: Duration: 11 Months IIM Lucknow CERT-IIML Healthcare Management India Starts on undefined Get Details by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The Top 20 Most Expensive Cars Undo However, looking ahead, we believe a few positive triggers are emerging. For one, the higher-than-expected rate cuts could eventually boost consumption and support some capex projects that may materialize in the coming quarters. The monsoon has also been reasonably good, which should benefit the rural economy. Irrigation activity and kharif sowing have shown healthy trends. With these factors, along with a relatively low base for FY25, we expect things to improve from here. That said, investors should be selective in their stock picks because broader market valuations are not cheap. Compared to the strong returns of the past three to five years, returns over the next couple of years might be lower, although still reasonably healthy. Let's elaborate further on the broader markets—specifically midcaps and smallcaps. It doesn't seem appropriate to talk about both market caps in the same breath anymore. Let's discuss them separately. There was a time when investors earned good profits from these segments. Valuations had cooled off a bit, but are we now looking at a time correction in certain pockets? And how are you positioned from a sector-specific valuation standpoint in midcaps and smallcaps? George Thomas: For mid- and small-cap investors, selectivity is crucial because there is froth in many areas. In our Quantum Smallcap Fund, for instance, we are holding about 13% in cash—which is higher than usual—reflecting our caution about valuations in that space. Live Events Some of our recent additions have been in the auto ancillary sector and a company catering to the FMCG space. However, investors need to adopt a bottom-up approach—you can't generalize. One must be mindful of valuations and evaluate each company's story individually. From a broader perspective, mid- and small-caps continue to be expensive compared to their historical averages. Not so much on a P/E basis, but if you look at price-to-book—an indicator of how profits compare to historical trends—there's clear evidence of froth. Hence, selectivity is essential. The companies we've added in the auto ancillary space are gaining new clients, including both domestic and foreign auto OEMs, and are increasing their components per vehicle. So, investors need to be very selective in this pocket. Let's shift focus to PSU banks. Indian Overseas Bank , for example, just reported a 75% rise in net profit to ₹1,111 crore, and the stock is up 2%. There's been a lot of action in PSU banks lately, especially with a 50-bps rate cut already in place and clarity emerging on the rate trajectory. How do you view this space going forward? George Thomas: We have been extremely selective in the PSU banking space. We currently hold just one PSU bank that has a large franchise and one of the lowest costs of funds. However, when you move further down the ladder, we believe that management and underwriting quality in many PSU banks do not match the best players in the sector. We are constructive on the banking sector overall. Even though there could be some near-term margin pressure due to rate cuts, we believe the market has largely factored this in. The asset quality concerns we saw in segments like personal loans, credit cards, and MFIs seem to be behind us. Looking ahead, we expect asset quality to remain stable, and current valuations have already priced in some of the expected margin compression. Compared to their historical averages, some banking names—particularly in the private sector—continue to offer attractive upside. I'd like to bring your attention to the chemicals and fertiliser sector. With NITI Aayog recently releasing a roadmap to boost India's chemical industry, does this sector feature in your portfolio? What's your outlook considering the structural changes being proposed? George Thomas: We currently have no exposure to the chemical sector, primarily due to concerns around supply-side dependencies. Many of these companies are significantly influenced by how major Chinese suppliers behave, which adds unpredictability. Moreover, it's hard to identify a sustainable moat in many specialty chemical companies. Their performance often hinges on regional dynamics, and given the scale of their operations, we don't see consistent structural advantages such as cost leadership. While there could be selective opportunities, from a broader sector perspective, we have not found an attractive combination of valuations and fundamental strength. Hence, we have stayed away from this space in our portfolio.
Economic Times
09-07-2025
- Business
- Economic Times
Corporate bonds form just 10–15% of India Inc's debt—well below global peers, says Sneha Pandey
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel India's corporate bond market has grown in size, touching ₹53 trillion as of March 2025, but it still plays a surprisingly limited role in the overall corporate funding to Sneha Pandey , Fund Manager – Fixed Income at Quantum AMC, corporate bonds account for just 10–15% of total corporate debt in India—far behind the 30–50% share seen in developed economies like the U.S. and raising nearly ₹10 trillion through new issuances in FY25, structural challenges such as heavy reliance on bank loans , low liquidity, credit risk concerns , and limited retail participation continue to hinder deeper development. Edited Excerpts -A) As of March 2025, the Indian corporate bond market stands at approximately Rs 53 trillion, with nearly Rs 10 trillion raised through new issuances in FY 2024–25 alone - a significant figure in for a $4.3 trillion economy, this number remains relatively modest. In contrast, developed markets like the U.S. have corporate bond markets valued at over $10 trillion, while the Eurozone exceeds €3 highlights the underdeveloped nature of India's corporate bond market. While there has been notable progress since the 1990s, the market still lags behind in both size and depth.A key reason is that Indian companies continue to depend largely on bank loans for their funding needs, with only a small share of debt raised through bond issuances…Currently, corporate bonds account for just 10–15% of total corporate debt in India, compared to 30–50% in developed continue to hold a dominant share of corporate lending, leaving the bond market with a relatively limited role. This reflects a structural issue that will take time…and targeted reforms…to fully address.A) India's corporate bond market holds promise - but for now, it feels like an exclusive club that's tough to get into…Relatively - Liquidity remains a major issue. Bonds trade less frequently as compared to stocks, and wide bid-ask spreads for smaller lots (ticket size) make it hard for investors - both institutional and retail - to enter or exit smoothly. On top of that, credit risk continues to weigh heavily – cause not everyone understands the details of these Ratings and Rationales…A large portion of bonds are rated below AAA, and default incidents in the past (IL&FS and DHFL), while not rampant, are enough to keep many investors doesn't help either… Add limited product options, like underdeveloped bond ETFs or mutual funds, and it's clear that the market is still evolving…Retail investors, in particular, face multiple hurdles - from lack of awareness, complex processes and limited access to easy-to-use platforms. Meanwhile, institutional investors mostly buy and hold, which further dries up liquidity…The tenure of the bond too is a limitation… and it fails to align with the investment horizon. And with a few large issuers dominating the market, concentration risk is another truly deepen and democratize the bond market, India needs broader investor participation, more diverse products, improved transparency, and a more retail-friendly ecosystem. Until then, the market will remain underutilized - despite its strong that extent I believe 'The RBI Retail Direct' platform is a commendable step towards democratizing access to government securities, but it remains in a nascent phase and requires significant progress to achieve widespread adoption and impact. A corporate bond ETF could also aid the retail investors may be…A) When companies pay off expensive loans, it's like shedding extra baggage - they become more financially fit... This not only lowers their overall borrowing cost but also boosts investor result? They can raise money at cheaper rates next time. But here's the twist - Short-term bonds react fast to these changes - like a speedboat turning bonds? They're more like a cruise ship - slower to turn, because they're looking at the big picture: inflation, growth, and where interest rates might be years down the line. So cutting high-cost debt helps - but how much it helps depends on how long the bond lasts.A) When we talk about improved government borrowing discipline, we're referring to a more sustainable and responsible approach to managing fiscal deficits and public includes reducing budget deficits, shifting toward longer-term borrowing to lower refinancing risks, and maintaining better control over inflation and interest fiscal discipline lays a strong foundation for long-duration bond demand, it isn't the only factor at play. A stable macroeconomic environment is equally interest rates are low and monetary policy remains steady, long-duration bonds become more appealing, allowing investors to lock-in current yields for the long fiscal management can support this stability, but if inflation begins to rise or central banks are forced to tighten policy, the attractiveness of long-duration bonds in particular, is a key concern. Long-term bonds are highly sensitive to it, and unless investors are confident that inflation will remain under control, they'll demand higher yields to compensate for the risk. Institutional investors like pension funds and insurance companies often drive demand for long-term bonds due to their need for stable, long-horizon government finances are well-managed and credible, these investors are more likely to allocate funds to long-duration securities. Moreover, in a globally competitive market, improved fiscal discipline could position a country's bonds as a safer, more attractive alternative to traditional safe-haven assets like U.S. Treasuries - especially for foreign investors. However, sustaining this demand requires signs of fiscal slippage, political pressure-driven spending, or global interest rate shocks could quickly undermine investor confidence and dampen enthusiasm for long-duration bonds, even in otherwise disciplined economies.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Time of India
09-07-2025
- Business
- Time of India
Corporate bonds form just 10–15% of India Inc's debt—well below global peers, says Sneha Pandey
India's corporate bond market has grown in size, touching ₹53 trillion as of March 2025, but it still plays a surprisingly limited role in the overall corporate funding landscape. According to Sneha Pandey , Fund Manager – Fixed Income at Quantum AMC, corporate bonds account for just 10–15% of total corporate debt in India—far behind the 30–50% share seen in developed economies like the U.S. and Eurozone. Despite raising nearly ₹10 trillion through new issuances in FY25, structural challenges such as heavy reliance on bank loans , low liquidity, credit risk concerns , and limited retail participation continue to hinder deeper development. Edited Excerpts - Q) How big is our corporate bond market? Do you believe India's corporate bond market is still underdeveloped? What are the key structural challenges? by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 농사를 즐기고, 재고를 쌓고 친구를 사귀세요. 타온가는 모험으로 가득한 하나의 세계입니다! Taonga 플레이하기 Undo A) As of March 2025, the Indian corporate bond market stands at approximately Rs 53 trillion, with nearly Rs 10 trillion raised through new issuances in FY 2024–25 alone - a significant figure in isolation. However, for a $4.3 trillion economy, this number remains relatively modest. In contrast, developed markets like the U.S. have corporate bond markets valued at over $10 trillion, while the Eurozone exceeds €3 trillion. This highlights the underdeveloped nature of India's corporate bond market. While there has been notable progress since the 1990s, the market still lags behind in both size and depth. Live Events A key reason is that Indian companies continue to depend largely on bank loans for their funding needs, with only a small share of debt raised through bond issuances… Currently, corporate bonds account for just 10–15% of total corporate debt in India, compared to 30–50% in developed economies. Banks continue to hold a dominant share of corporate lending, leaving the bond market with a relatively limited role. This reflects a structural issue that will take time…and targeted reforms…to fully address. Q) Why has retail participation in India's corporate bond market remained low compared to equities or mutual funds? A) India's corporate bond market holds promise - but for now, it feels like an exclusive club that's tough to get into… Relatively - Liquidity remains a major issue. Bonds trade less frequently as compared to stocks, and wide bid-ask spreads for smaller lots (ticket size) make it hard for investors - both institutional and retail - to enter or exit smoothly. On top of that, credit risk continues to weigh heavily – cause not everyone understands the details of these Ratings and Rationales… A large portion of bonds are rated below AAA, and default incidents in the past (IL&FS and DHFL), while not rampant, are enough to keep many investors cautious. Taxation doesn't help either… Add limited product options, like underdeveloped bond ETFs or mutual funds, and it's clear that the market is still evolving… Retail investors, in particular, face multiple hurdles - from lack of awareness, complex processes and limited access to easy-to-use platforms. Meanwhile, institutional investors mostly buy and hold, which further dries up liquidity… The tenure of the bond too is a limitation… and it fails to align with the investment horizon. And with a few large issuers dominating the market, concentration risk is another concern. To truly deepen and democratize the bond market, India needs broader investor participation, more diverse products, improved transparency, and a more retail-friendly ecosystem. Until then, the market will remain underutilized - despite its strong potential. To that extent I believe 'The RBI Retail Direct' platform is a commendable step towards democratizing access to government securities, but it remains in a nascent phase and requires significant progress to achieve widespread adoption and impact. A corporate bond ETF could also aid the retail investors may be… Q) How does the reduction of high-cost debt influence bond yields, especially across short and long durations? A) When companies pay off expensive loans, it's like shedding extra baggage - they become more financially fit... This not only lowers their overall borrowing cost but also boosts investor confidence. The result? They can raise money at cheaper rates next time. But here's the twist - Short-term bonds react fast to these changes - like a speedboat turning quickly. Long-term bonds? They're more like a cruise ship - slower to turn, because they're looking at the big picture: inflation, growth, and where interest rates might be years down the line. So cutting high-cost debt helps - but how much it helps depends on how long the bond lasts. Q) Are we likely to see increased demand for long-duration bonds as a result of improved government borrowing discipline? A) When we talk about improved government borrowing discipline, we're referring to a more sustainable and responsible approach to managing fiscal deficits and public debt. This includes reducing budget deficits, shifting toward longer-term borrowing to lower refinancing risks, and maintaining better control over inflation and interest rates... While fiscal discipline lays a strong foundation for long-duration bond demand, it isn't the only factor at play. A stable macroeconomic environment is equally essential. When interest rates are low and monetary policy remains steady, long-duration bonds become more appealing, allowing investors to lock-in current yields for the long term. Effective fiscal management can support this stability, but if inflation begins to rise or central banks are forced to tighten policy, the attractiveness of long-duration bonds diminishes. Inflation, in particular, is a key concern. Long-term bonds are highly sensitive to it, and unless investors are confident that inflation will remain under control, they'll demand higher yields to compensate for the risk. Institutional investors like pension funds and insurance companies often drive demand for long-term bonds due to their need for stable, long-horizon returns. If government finances are well-managed and credible, these investors are more likely to allocate funds to long-duration securities. Moreover, in a globally competitive market, improved fiscal discipline could position a country's bonds as a safer, more attractive alternative to traditional safe-haven assets like U.S. Treasuries - especially for foreign investors. However, sustaining this demand requires consistency. Any signs of fiscal slippage, political pressure-driven spending, or global interest rate shocks could quickly undermine investor confidence and dampen enthusiasm for long-duration bonds, even in otherwise disciplined economies.
Time of India
18-06-2025
- Business
- Time of India
IT sector poised for earnings surprise in FY26-27 on reviving tech spend: Christy Mathai
"Combination of these factors we are fairly positive on the EPS trajectory going ahead and this environment is very good for the private capex to grow as well because you have had interest rate cuts. The corporates can borrow cheaper. At present, they have significant cash on their books. But given the tariff uncertainty especially with respect to Trump and so on and so forth, there is some issues on that front," says Christy Mathai , Quantum AMC. Give us a sense of how you are positioning your portfolio amid all the geopolitical uncertainty we are seeing right now. How much of it is deployed? How much are you sitting in terms of cash? Christy Mathai: So, clearly this economic backdrop is pretty conducive compared to what it was, let us say, about three or six months back. What we have seen is the government is really pushing the pedal on growth and we have some indication of it as we look at the 4Q GDP numbers as well. Also, the inflation is clearly moderating and we do not think the current geopolitical issues would really change that materially unless the crude were to go really up which we do not foresee in a normal case scenario and against this backdrop, what we have seen is RBI is infusing liquidity and frontloaded quite a bit of interest rate cuts, so this should propel some sort of earnings growth going ahead, the CRR cut of 100 basis points was particularly positive, it has a multiplier impact on the economy because the lending increases assuming the bank do not park it in G-Secs and they start lending again. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Kulkas yang belum Terjual dengan Harga Termurah (Lihat harga) Cari Sekarang Undo So, combination of these factors we are fairly positive on the EPS trajectory going ahead and this environment is very good for the private capex to grow as well because you have had interest rate cuts. The corporates can borrow cheaper. At present, they have significant cash on their books. But given the tariff uncertainty especially with respect to Trump and so on and so forth, there is some issues on that front. But broadly, we think all the signs are right for the earnings growth to slowly pick up. Our concerns chiefly is on the valuations, given the 10% or more rally that we have seen in the past couple of months, valuation is the only concern for us and hence possibly, we are not looking at a great set of returns one-year or two-year out. But apart from that broadly earnings trajectory should be positive. Live Events But any new sector where you believe the earnings momentum can really take the sector higher from the current levels because a lot of sector churning is already underway. We have seen the runup in financials. Other than that, of late, it is the IT, select healthcare counters that are making a comeback. Christy Mathai: So, in terms of earnings, possibly where things can look up from our sense is purely looking at the IT pack. We have had possibly very near-term rally, so to say in it, but what we are looking at is most of the FY26 numbers have been dramatically cut, it is possibly in the vicinity of maybe 3% to 5% growth which possibly the managements are guiding, but we think this number at least maybe FY26-27 could be much better owing to the fact that the technology spends possibly can come back because we are sitting over a three years of absolutely no IT spends especially on the services part by the major banks in US or manufacturing sector. So, there is a possibility of that picking up, plus the margins also can expand given some of the cost levers that most of the IT players have in hand. So, we think you that could be a possible place where there could be earnings surprise as we move ahead. But broadly, if you were to just think about the consumption theme also, where we are invested through autos primarily which is also a play on interest rate cut and there could be better credit growth in that particular sector, which is at present not happening, so some of these two-wheeler volumes especially in the mass segment which have been hit by inflation for a long time which is now moderating can be a surprise going ahead. While we are talking about consumption, let us talk about an ancillary that is cement in a way. Give us a sense on where you are seeing cement as a sector moving ahead because we have seen benign raw material on the other hand, you have the monsoon overhang, so that seasonality is coming into play. Where do you see the cement sector headed now? Christy Mathai: So, we are invested in cement sector as a whole through one of the companies which is more contained to a specific geographic location where the price hike in the recent past has been good. But see over the course of the year you will have a usual seasonality play out, typically monsoon season you will see some demand moderation which picks up as you go ahead in the month of October or towards the Diwali, so that is the usual seasonality. The issue last year was one of a kind because you have had significant demand moderation along with fierce competitiveness because a lot of large players who have sort of consolidated were pushing up the volumes in through some of their acquired entities, so that was what is depressing the prices to a four-year or five-year low. Now, we see that improving which is sort of a big positive for the sector as a whole. Monsoon seasonality, it usually happens, so there is nothing concerning as such and the government capex and slowly the demand recovery in, let us say, the housing segment should be a key driver as you look at the cement stocks. We did touch upon select sectors there and also you did share your outlook on the earnings front, but if I have to ask you top three sectors where you are most bullish on which one those will be and the three sectors you believe will be languishing for some time from now to participate in the rally for Indian markets. Christy Mathai: So, clearly where we have large allocation are clearly the banks, financials which is not very different from when you look at an index perspective. But the point is here we think until now if you were to look at the whole people visualising the rate cut cycle, they were expecting an extended rate cut cycle, but with the stance change and the commentary that you hear looks like there will not be further rate cuts so what you will have there is a one or two, maybe three quarter impact on NIMs, but CRR cut is positive, so that is on the extreme near term in terms of what will happen. But otherwise, we think the credit growth should normalise ahead. IT is at 9%, sub-9% at the moment and the deposit challenges are slowly going away. So, you should see that credit growth pick up as you go through the year, possibly in the second half, so 12-13% is what we think the long-term on credit growth has been for a very long period of time, we do not see that change, and within that the private players would have their play with a slightly higher growth rates, so that remains a pocket which is very attractive to us and reasonably valued in our view. The other sector as I said was it and some bit in consumption which is especially the auto pack with primarily play on two wheelers, so that is broadly our sectors where we are reasonably positive on. We have picked up on some of the financial plays as well, something like an insurance which we have added in the recent past that also looks pretty attractive when you were to really think about long-term growth because there is significant protection gap as we see it in the life insurance space and the valuations are not so expensive. The pocket where we are not so convinced about is again this is primarily driven by valuations. You just look at some of the cap goods names, some of the names which are driven by order book especially dependent on how the government spend would be, those are the pockets where there could be room for disappointment going ahead in a sense and some of the capital market linked themes where there could be impact in one of these years, we cannot really pinpoint which year it would be. So, these would be places where we would be a little bit wary off, but by and large positive.
