I think to that extent the mutual funds have not played as much of a role that one wants to play in the corporate bond. So, to that extent, even this is not so much important.
Markets, we have come on the right side of the Fed event, commodity prices are down, rupee is stable, the macro headwinds are receding; but markets are not capturing that. If we ask anybody why markets are down, it is because of macro concerns. The macro concerns are getting addressed, the Adani fiasco is behind us. So, if the concerns are getting addressed, why markets are not reacting to that, why markets are not capturing that?Yes, it is a function of both in terms of what is happening globally and also what is happening in India. So, when it comes to India, many things are getting addressed and things are in a fairly good position. But at the same time, if you see the last quarter results, there was a bit of a surprise or a shock for us on the earnings front. And quite a few sectors have seen sudden slowdown in their revenues and profitability, so that was bit shaken by the market.
So, on one hand, we no longer have as much comfort, confidence on earnings growth that we used to have let us say two-three months back, so that is putting some bit of a pressure. And add to the fact that we are seeing a steady outflow from FIIs and when you see this kind of a global news where financial sector per se seems to be in a fair bit of a turmoil and in India, financial is the largest weight, so to that extent market is grappling or struggling to find its feet in terms of why should market move immediately when you have A) global concern and B) within India also earnings growth visibility seems to have taken a hit at least right now. I am just looking at your recent opinion and you have talked about as to how pharma as well is one of the preferred sectors along with banks. Banks I get, yes; but why pharma? Is that a contra call or do you genuinely see merit in this sector right now?One, I would say pharma is a defensive bet. When I am seeing so many uncertainties all around, pharma is relatively insulated from these uncertainties where whatever happens globally and domestic, the demand for pharma per se is relatively insulated, to that extent it makes defensive. The second is also if you see pharma has let us say three drivers — domestic, US and other markets. And within that, US has been a little bit challenging for last two-three years given the kind of pressure they have seen in pricing. But our sense suggests that there is a clear improvement in US markets. So, companies catering to US would see a decent growth in the coming quarter, so that also makes me to be more positive on pharma at this point of time.