Why does the market increase despite 50% rates and other terrible predictions? Chakri Lokapriya Answers

Given the type of consolidation that we have seen, did The Up have a lot to do yesterday with the type of AMFI data that we have seen?
Chakri Lokapriya: There are two or three different reasons. One is of course that we waited so long for a finality at Trump rate and now it is clear that the number is 50%. So that’s one. A number of uncertainty have disappeared. The second is now an expectation that the trade discussions in the US and Russia would rather help with stopping the war and therefore help India to buy oil. Now, if that is not achieved or if that event is not connected or disconnected by the US of India’s rate, there is clearly some weakness.

So the market assumes that if the US and Russia reach an agreement, the extra 25% will disappear, but that may not always be correct. We don’t know the answer. These are the two reasons, one is a relief, but clear if the rate remains of 50%, then the hit on GDP is almost 35 BPS to 1 percentage point.

Although it is the profit season, how did you read in SBI or even even the income from Manappuram because the MFI segment seems to be under pressure across the board? What have you picked up from SBI’s comments?
Chakri Lokapriya: SBI figures were good and both their loan and deposit growth are good compared to the rest of the banking sector. SBI recently concluded his QIP and is extremely well capitalized. Given the Trump rates, the focus of the Indian government would be more on the infrastructure and therefore SBI and other PSU banks would be primary beneficiaries as lenders. It is a very favorable appreciation and would clearly buy an SBI.