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Speaker 1: Let's get to our guest. Raki Prashad is with US

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Speaker 1: investment manager at Older Capital who joins from Mumbai. Rakied,

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Speaker 1: A Happy New Year to you, Thanks for being with us.

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Speaker 1: We've been talking so much on the program about the

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Speaker 1: weakness in the China economy as a result of the

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Speaker 1: COVID zero policy. There's been an enormous push and pull

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Speaker 1: on the part of the government. We've talked in the

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Speaker 1: last year about the number of lockdowns that have been

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Speaker 1: imposed and then the significant pivot away from from COVID zero.

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Speaker 1: But there is so much concern about the reliability of

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Speaker 1: the government now and a reconfiguration of supply chains is

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Speaker 1: part of the conversation. I'm wondering, from your point of

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Speaker 1: view in Mumbai, does India necessarily become the big, big beneficiary.

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Speaker 1: Good morning and happy New Year to all of you too.

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Speaker 1: So India, So China has been having these issues over

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Speaker 1: the past one year, and how what we've been seeing

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Speaker 1: in India, how businesses are navigating through those supply chain issues, uh,

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Speaker 1: have been remarkable. Actually, so investors have been watching this

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Speaker 1: over the past one year and going into this coming year,

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Speaker 1: I think China will probably be in a better situation

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Speaker 1: than it was last year. In fact, so the concern

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Speaker 1: around supply chain disruptions may probably ease out during the

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Speaker 1: second half of the year. Burrying that there's no other

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Speaker 1: global major upset that happens. But I believe India will

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Speaker 1: probably navigate through this situation UM better than last year.

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Speaker 1: Your inflation appears to have peaked in in the ear.

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Speaker 1: The RBA also seems rb I is near the end

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Speaker 1: of its tightening cycle. What are your expectations around this? Yeah,

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Speaker 1: I agree with you. Maybe rb I might do one

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Speaker 1: more just to be in sync with what the FED

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Speaker 1: might keep on during during the next few three or

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Speaker 1: four months. But uh, in general, people in India are

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Speaker 1: seeing that the rates have peaked for India. UM. Inflation

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Speaker 1: is also probably going to be more stabilized and slowly

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Speaker 1: come off as well during the year in India. So

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Speaker 1: from a from a rates perspective and an inflation perspective,

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Speaker 1: I think this year will not see too much of

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Speaker 1: a disruption UM. And that's all christon And so do

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Speaker 1: your clients. And as I understand, they are mostly high

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Speaker 1: net worth individuals and family office and private foundation clients

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Speaker 1: are they more apt to keep capital focused domestically right now,

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Speaker 1: given everything that we're describing, I agree with you on

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Speaker 1: that as well. And that's what domestic investors also also

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Speaker 1: are UH rotating towards in terms of investing in businesses

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Speaker 1: that are more domestic oriented. UM, whether it's manufacturing or

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Speaker 1: consumer related businesses. UH this year will probably be a

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Speaker 1: little bit more focused on UH inward UH businesses for investments,

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Speaker 1: be it especially in the equity markets. We will see

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Speaker 1: that sector rotation continue to happen towards these consumption led

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Speaker 1: businesses in India. Yeah, one of the key risks facing

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Speaker 1: markets and and yea that there is a lot of

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Speaker 1: geopolitical uncertainty obviously, so quantitative tightening will probably be one

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Speaker 1: of the things that might be talked about more this year,

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Speaker 1: especially which it will impact the rates and the flows

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Speaker 1: to equity and emerging markets considering that UH interest rates

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Speaker 1: have peaked, but debt products will probably compete a lot

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Speaker 1: more with equity products, especially from high network individuals where

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Speaker 1: they may feel the risk adjested returns are better in

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Speaker 1: debt products, so that may impact equity flows as well. UM.

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Speaker 1: The lag effect of increase and interest rates will impact

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Speaker 1: earnings for Leeward companies, so one would have to be

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Speaker 1: cognizant of over leveraged businesses. What about the relationship between

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Speaker 1: India and Russia right now, particularly as it relates to

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Speaker 1: energy very quickly, Rocky, is there something that we should

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Speaker 1: be alert to, something maybe we should be concerned about

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Speaker 1: in this relationship. No, I don't think so. I mean

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Speaker 1: it's played out during the past one year. In terms

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Speaker 1: of India has always stated the fact that we need

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Speaker 1: to keep our supplies um are those are oil supplies

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Speaker 1: are important for India to ensure that our inflation doesn't

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Speaker 1: go out of hand. So the policies will probably continue

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Speaker 1: as as they were continuing last years. Rocky Prisha, thank

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Speaker 1: you so much for being with us and again happy

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Speaker 1: new to New Year to you. Thanks for joining us

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Speaker 1: here on daybreak. Asia rack Key Purshot, investment manager at

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Speaker 1: Alder Capital