what advice would you give regarding a market that really is just real it can stop rallying almost anything you buy it just keeps going up know its one of those situations right now where we are seeing the markets continue to gather pace but its also due to the fact that the expectation of the quarterly earnings upcoming for this fourth quarter is somewhere around 20 on a nifty earnings growth but if you exclude the oil marketing companies that still are it will be only around ten 11 so some of this rally is being driven by businesses that are showing good will show good earnings growth in this past quarter that has just gone by but i think now is a time to become choosy and picky in terms of what you want to pick up i dont think itll be a broad based rally for all stocks and thats where youll have to be cognizant and decisive all right what would you be buying specifically now so we are seeing some businesses in the small cap space in the midcap space that still have enough valuation comfort and are primarily maybe around in the nbfc area and travel in auto components or auto ancillaries so one has to be picky and choosy but we are seeing stuff in different categories sectors especially iraqi do you see persistent foreign buying given that a lot of money is getting out of china are they still continuing to get into the indian market so we did see in this past quarter five inflows of around 15 16 billion from the march lows so this rally is primarily driven by fii flows and considering how things but we have to be cognizant of what might happen in the us markets how the fed behaves we are seeing bond yields rise up so the us ten year treasury is up around 4 the indian ten year is also at 715 so we are seeing some of that action happening in the credit markets which would impact the equity markets to some extent earnings yield the bond yield is rising but if the markets continue to give grow at you know gather pace we might see some impact or some if i outflows going especially if the fed takes a turn in dams of still hiking up rates how do you hedge that rocky how do you hedge against moves by the fed so we are profit booking now in terms of if we are seeing valuations stretched if we are seeing because of this mid and small cap rally that has happened against the large caps we are trying to create some cash in our portfolio to brace for any impact that might happen from a macro global perspective though the indian economy seems to be robust so from a domestic perspective we are not so much concerned but more concerned about the global impacts that might come thats super interesting that you mentioned that this sort of deliberate move back towards some or at least a higher level of caching could you give us an indication of what your cash position is now and do you have any sort of rough target for term of where you want to see that so we are positioned maybe around 78 cash we would probably want to increase that by a few percentage points just to ensure that if there is a dip in the market sometime later this year we can capitalize on that okay understood now this takes us into i guess the in what way just the macro picture in india i think inflation is coming out this week does that in any way affect what you do or is it almost completely separate because youre a stock picker so we monitor the inflation i mean though we were talking about tomatoes a few minutes ago the impact on that will probably be seen now in the july august numbers prints but the june numbers may be around that four and a half percent which is well within the rbis tolerance band so in that aspect from a macro perspective i dont think theres much to be worried or concerned about but yes what we are noticing because we are a consumption focused fund is that urban demand especially in the smaller categories has continued to slow down even in this past quarter and well probably see that in the numbers when the earnings come out thats some area that we are trying to avoid at this point and probably would be an opportunity to look at that later on in the year when the festive season starts but what rural as well as lower urban demand being under pressure that is you know pockets only that we can look at or at this point in time rocky we understand that youre pretty excited about the b2c space across sectors how do you play that so we came out with our note over the last few months showing 20 odd subsectors in the b2c space and what we noticed from precovid levels to the f 23 earnings especially the revenue growth rates discretionary services have outperformed of over the last one year which is basically to come back to its precovid levels so in that sense travel is a space that continues to do well and will continue as more and more domestic travel and international travel picks up so businesses around that are still exciting to look at auto volume though might be in single digits but those are just spaces that will show earnings growth