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2025-01-21
S Naren, Executive Director and Chief Investment Officer of ICICI Prudential AMC, shared his optimistic outlook on Real Estate Investment Trusts (REITs) and office spaces. He emphasized that the best way to leverage these opportunities is through asset allocation via hybrid funds. Naren also discussed his broader market outlook for 2025, highlighting equities and other asset classes he considers promising for the year ahead. Below is the verbatim transcript of the interview. Q: This year the Nifty, at one point, we thought we would run away with the 20% gain. But okay, at 13.5%-14% this year is a fairly decent one. Smallcaps were all the abuse thrown at them and fears that we had is still ending the year with close to 30%. How does 2025 at the outset look to you? A: There were three years when we always used to say, consumers look overvalued and it will underperform, and it kept outperforming. For the last two years, we are the butt of jokes. People saying you are always cautious on mid-caps and small caps, and small caps and mid-caps keep outperforming. So, you have a situation where the only seller in the market is the foreign institutional investor (FII) and FIIs keep selling only large caps. So, the small and midcaps are the biggest outperformers in the market from 2021. So, the small caps and midcaps have become much more overvalued, but they never fall because the FIIs are only selling large caps and that has been the situation from 2021 onwards, that we are the butt of jokes in this entire segment that at all points of time ICICI Prudential is cautious on mid-caps and small caps, but midcaps and small caps always outperform large caps. Q: How will 2025 pan out in terms of this US exceptionalism, which is what drew away all the FII money, or much of it? Does this exceptionalism continue? After all, US growth rates are good and the Trump trade has worked for that country. Do you think 2025 also will continue to see FII drawdowns? A: This exceptionalism cannot continue forever because all said and done, India's growth rate is much higher than the US and it will continue to be because structurally India's growth is much better than that of the US. So, I do not think it can continue forever. Can it continue for a few quarters? Yes, it's possible, but it won't last for a long period because India's macro is in very good shape. If you look at current account deficit or fiscal deficit or inflation, and compare where we are at this point, we are in very good shape. So, I don't think it can go on forever. Also Read: Meet Motilal Oswal's top stock pick for 2025 So, at some point in time, FIIs are likely to come back into the country and that too into large caps, but the real problem at this point is that the domestic investor sees equity as a riskless asset and has been investing, if you look at the number of loss-making companies that domestic investor is comfortable investing into, whether that at some point of time will change is the question that we do not have an answer to and at that point of time there can be a problem because domestic investors are not looking at valuation. The foreign investor is saying, I want my money back in the US at any cost, in dollars. So, they have been digging out money. But the domestic investor is possibly not risk averse at all, and for the last 10 years, we have not had a down year. So, people perceive that equities are a riskless asset, which it is not. Q: There is also one level of scepticism with the domestic market, especially after the recent numbers. We first thought the July-September 2024 (Q2FY25) earnings were bad because of the base effect, and margins and there were a whole lot of other reasons. Then we got the shock of the Q2 gross domestic product (GDP) number going down, and the Chief Economic Advisor (CEA) also said that if you guys do not pay enough, then there will not be enough consumption. Do you worry about the consumption aspect of India, and will that cast a shadow on the way you pick stocks? A: We do not worry so much about all these things because, at the end of the day, the growth is very much there. Look at some of the areas; look at airline passenger growth or total tariffs or something like that, you can look at those areas and be very positive on India. Even if you look at two-wheeler growth this year, it has been very good at this point. So, I do not think we are worried about growth. We have been worried about valuations and not growth and fundamentals, and the fact that people are not discriminating. So, if you look at it, that is the bigger challenge we have been worried about. Also Read: Higher yields, lower barriers: How SM REITs are revolutionising real estate investment We have not been worried about growth at this point, per se, and how all these numbers are calculated is also a challenge. So, if you look at the last quarter's numbers; I mean, some of the oil marketing companies moved from very different numbers one year back to where it is at this point that also reflects the earnings. Look at banking earnings, banking is one of the most important indicators of the economy. I think those numbers were very good. So aren’t banking earnings more important than oil marketing companies? That's how we look at it. So, I don't think we are worried about growth or something like that. We have always been worried about valuations. We are worried about the fact that investor risk appetite domestically is very high, and globally, for India, is not high, it is very low. Q: Let's discuss the domestic themes in that case. You came up with some examples. If you look at airlines and if you look at hotels, Indian consumption looks very good. So, would discretionary be a good theme? And would FMCG or any kind of mass consumption not be your favourites? A: Basically, we are, by nature, contrarian. So, what we do is we try to see where people are not so positive. So, by nature, we like areas like rural or quality stocks or things like that where things have been negative for quite some time and therefore there is opportunity for the future. Whereas we are more negative on things which have done very well. If you look at the hotel stocks at this point, if you look at the five-year compound annual growth rate (CAGR) in hotel stocks, it is outstanding from 2020 to 2024. So, by nature, we believe that some of the very good news gets priced into equities, but that is the nature of the equity market. Whereas if you look at some of the rural areas, stocks like fast-moving consumer goods (FMCG) and all that; we used to be very negative on FMCG, but over the next few years, maybe FMCG is kind of an area to invest in and cement could be another area to invest in because these are the areas like midcap cement or FMCG and those kind of sectors could be the areas where you should invest in because the maximum prism areas are always the best areas to invest in. In 2020, it used to be metals, telecom, public sector undertaking (PSU) etc. Today it could be something else at this point. Q: What should be the other themes that you will look at? Will you look at electronic manufacturing services (EMS)? Will you look at e-commerce? Train our eyes to other such sectors. A: You are telling me all the areas. EMS is the other area where the PE itself is more than ₹ 200-300. For example, in 2020 people used to tell us, that quality is the area which is most favoured because they will never go out of fashion. So, for the last four years, quality has been the area which has just done the worst. So, we like quality, we like rural, we like all these themes which have done badly and where we think from here on the outlook would be good. Also Read: Kotak's Nilesh Shah says investors must temper return expectations for 2025 In 2020 we used to like all the opposite of these things. We used to like PSUs, we used to like urban consumption. We used to like these sectors. So, I would say that finally, cycles play out. There are cycles which are at the bottom, there are cycles which are at the top. We have to be careful in cycles which are at the top. If you look at EMS, today it is just like 2007 infra. If someone signs an agreement today for the next 10 years profits are already priced into the stock on that day – that is the way the sector behaves and we have seen from our experience of 2007 infra, that there are a lot of things which go wrong five years after the contract is signed. Q: Tell us about asset allocation. I mean, would you take a good look at, say, corporate bonds, fixed income, gold? What would be your asset allocation strategy? A: We are fond of multi-asset because it gives you opportunities in real estate investment trusts (REITs). We have been very positive on REITs. We like the entire office space, for example. We like corporate bonds, for example, but the best way to do it is through hybrid funds at this point. So, over the last few years, we have been trying our best to get money into hybrid funds because people are just not willing to invest in debt funds. So, we thought, at least the way to get money in debt is through investing in hybrid funds. A particular area is multi-asset because that is the way you can get investments, even in REITs, Infrastructure Investment Trusts (InvITs), exchange-traded commodities, and derivatives. For example, in gold and silver; you would have never got money easily, but through the multi-asset route we managed to get a lot of money invested in gold and silver in our funds, and luckily, thanks to the good work done by the mutual fund distributors and investors, we managed to make our multi-asset fund a very large fund. Thanks to the work done by them. For the entire interview, watch the accompanying videoFormula One owner Liberty Media shares up after GM entryjili golden bank

Britain, Germany, France, Italy and several other European countries said Monday they would freeze all pending asylum requests from Syrians, a day after the ouster of president Bashar al-Assad. While Berlin and other governments said they were watching the fast-moving developments in the war-ravaged nation, Austria signalled it would soon deport refugees back to Syria. Far-right politicians elsewhere made similar demands, including in Germany -- home to Europe's largest Syrian community -- at a time when immigration has become a hot-button issue across the continent. Alice Weidel, of the anti-immigration Alternative for Germany, reacted with disdain to Sunday's mass rallies by jubilant Syrians celebrating Assad's downfall. "Anyone in Germany who celebrates 'free Syria' evidently no longer has any reason to flee," she wrote on X. "They should return to Syria immediately." World leaders and Syrians abroad watched in disbelief at the weekend as Islamist-led rebels swept into Damascus, ending Assad's brutal rule while also sparking new uncertainty. A German foreign ministry spokesman pointed out that "the fact that the Assad regime has been ended is unfortunately no guarantee of peaceful developments" in the future. Germany has taken in almost one million Syrians, with most arriving in 2015-16 under ex-chancellor Angela Merkel. Interior Minister Nancy Faeser said many Syrian refugees "now finally have hope of returning to their Syrian homeland" but cautioned that "the situation in Syria is currently very unclear". The Federal Office for Migration and Refugees had imposed a freeze on decisions for ongoing asylum procedures "until the situation is clearer". She added that "concrete possibilities of return cannot yet be predicted and it would be unprofessional to speculate in such a volatile situation". Rights group Amnesty International slammed Germany's freeze on asylum decisions, stressing that for now "the human rights situation in the country is completely unclear". The head of the UN refugee agency also cautioned that "patience and vigilance" were needed on the issue of refugee returns. In Austria, where about 100,000 Syrians live, conservative Chancellor Karl Nehammer instructed the interior ministry "to suspend all ongoing Syrian asylum applications and to review all asylum grants". Interior Minister Gerhard Karner added he had "instructed the ministry to prepare an orderly repatriation and deportation programme to Syria". "The political situation in Syria has changed fundamentally and, above all, rapidly in recent days," the ministry said, adding it is "currently monitoring and analysing the new situation". The French interior ministry said it too would put asylum requests from Syrians on hold, with authorities in Belgium, the Netherlands, Switzerland, Denmark, Sweden and Norway announcing similar moves. Britain's interior ministry said it was taking the same measure "whilst we assess the current situation". The Italian government said late Monday after a cabinet meeting that it too was suspending asylum request "in line with other European partners." The leader of the far-right Sweden Democrats, a coalition partner in the government, said residence permits for Syrian refugees should now be "reviewed". "Destructive Islamist forces are behind the change of power" in Syria, wrote their leader Jimmie Akesson on X. "I see that groups are happy about this development here in Sweden. You should see it as a good opportunity to go home." In Greece, a government spokesman voiced hope that Assad's fall will eventually allow "the safe return of Syrian refugees" to their country, but without announcing concrete measures. In Germany, the debate gained momentum as the country heads towards February elections. Achim Brotel, president of a grouping of German communes, called for border controls to stop fleeing Assad loyalists reaching Germany. The centre-right opposition CDU suggested that rejected Syrian asylum-seekers should now lose so-called subsidiary protection. "If the reason for protection no longer applies, then refugees will have to return to their home country," CDU legislator Thorsten Frei told Welt TV. CDU MP Jens Spahn suggested that Berlin charter flights to Syria and offer 1,000 euros ($1,057) to "anyone who wants to return". A member of Chancellor Olaf Scholz's Social Democrats criticised the debate as "populist and irresponsible". Greens party deputy Anton Hofreiter also said "it is completely unclear what will happen next in Syria" and deportation talk was "completely out of place". Many Syrians in Germany have watched the events in their home country with great joy but prefer to wait and see before deciding whether to return. "We want to go back to Syria," said Mahmoud Zaml, 25, who works in an Arabic pastry shop in Berlin, adding that he hopes to help "rebuild" his country. "But we have to wait a bit now," he told AFP. "We have to see what happens and if it is really 100 percent safe, then we will go back to Syria." burs-fz/rlp/phz/gv/giv

Albania Bans TikTok for a Year after Killing of TeenagerNone

LOS ANGELES (AP) — The Biden administration plans on reducing part of Intel's $8.5 billion in federal funding for computer chip plants around the country, according to three people familiar with the grant who spoke on the condition of anonymity to discuss private conversations. The reduction is largely a byproduct of the $3 billion that Intel is also receiving to provide computer chips to the military. President Joe Biden announced the agreement to provide Intel with up to $8.5 billion in direct funding and $11 billion in loans in March. The changes to Intel’s funding are not related to the company’s financial record or milestones, the people familiar with the grant told The Associated Press. In August, the chipmaker announced that it would cut 15% of its workforce — about 15,000 jobs — in an attempt to turn its business around to compete with more successful rivals like Nvidia and AMD. Unlike some of its rivals, Intel manufactures chips in addition to designing them. Two years ago, President Biden hailed Intel as a job creator with its plans to open a new plant near Columbus, Ohio. The president praised the company for plans to “build a workforce of the future” for the $20 billion project, which he said would generate 7,000 construction jobs and 3,000 full-time jobs set to pay an average of $135,000 a year. The California-based tech giant's funding is tied to a sweeping 2022 law that President Biden has celebrated and which is designed to revive U.S. semiconductor manufacturing. Known as the CHIPS and Science Act , the $280 billion package is aimed at sharpening the U.S. edge in military technology and manufacturing while minimizing the kinds of supply disruptions that occurred in 2021, after the start of the coronavirus pandemic, when a shortage of chips stalled factory assembly lines and fueled inflation . The Biden administration helped shepherd the legislation following pandemic-era concerns that the loss of access to chips made in Asia could plunge the U.S. economy into recession. When pushing for the investment, lawmakers expressed concern about efforts by China to control Taiwan, which accounts for more than 90% of advanced computer chip production. In August, the administration pledged to provide up to $6.6 billion so that a Taiwanese semiconductor giant could expand the facilities it is already building in Arizona and better ensure that the most advanced microchips are produced domestically for the first time. The Commerce Department said the funding for Taiwan Semiconductor Manufacturing Co. meant the company could expand on its existing plans for two facilities in Phoenix and add a third, newly announced production hub. The administration has promised tens of billions of dollars to support construction of U.S. chip foundries and reduce reliance on Asian suppliers, which Washington sees as a security weakness. Boak reported from Washington.With Assad gone, Syria PM to hand power to rebel adminBomb attacks rock Deoghar town, no casualties

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Save Log in , register or subscribe to save articles for later. Save articles for later Add articles to your saved list and come back to them any time. Got it Normal text size Larger text size Very large text size If ever a year deserved to be summed up in a cheap meme, it was 2024. It was the year that felt like being awake during surgery . Sometimes the social media chuckle gallery hits the nail right on the head, but for all the spot-on accuracy of that assessment, it’s also a year that warranted a search for its better angels; a sifting through the flotsam and jetsam for the fairy dust and joy. And there were halos to be found if you looked hard enough. “This is the biggest show we’ve done on this tour or any tour,” Taylor Swift told the crowd of 96,000 at the MCG. Credit: Jason South There was, for instance, a moment back in February when the MCG – traditionally a place that brings the feels during footy in September or the cricket on Boxing Day – seemed to swallow the entire city in a joyous embrace as host to the largest crowd of Taylor Swift’s entire 149-show Eras Tour . It was a tour, and a show, unlike anything Australia or Swift herself had ever seen. “You’re making me feel like I get to play a show for 96,000 beautiful people in Melbourne tonight,” a visibly stunned Swift told the heaving crowd, which was boosted by several thousand more fans “Taylor-gating” outside the stadium. “This is the biggest show that we have done on this tour, or any tour, ever.” The Swiftian joyfest then moved north to Sydney, where the total turnout was even bigger (320,000 across four shows). “Sydney, you are making me feel absolutely phenomenal,” she declared. The feeling was clearly mutual and spread far beyond the venues. As she had done on other stops on the Eras tour, Swift proved a human tonic to everything that ails us — from economic worries (Swiftonomics became a subject worthy of study) to general social malaise. Advertisement We spend much of our time worrying about the yoof; especially young women. Well, in 2024 Taylor Swift turned up to show us that the kids are alright. And she wasn’t alone. Swiftmania was the herald of what would become the year that “girl power” – a worn and slightly tatty ’90s concept – received a fresh, ferocious update for the 21st century as something deeper, stronger and powered by a kind of worldly-wise joy. Year of the brat Forget sense and sensibility; 2024 was all sass and sensibility. Sabrina Carpenter parlayed her supporting status on the Eras Tour into a blockbuster year that elevated her to near the very top of the tree with no need for Swift’s booster seat. In Carpenter, pop music added another voice that was savvy, sassy, sexy and smart — from the unavoidable bop of Espresso to the come-to-bed brashness of her smash album Short n’ Sweet . Charli XCX took things a step further. The British singer staked her claim to the year by giving 2024 a word, a colour and an attitude all wrapped up in one album – Brat . She summed it up like this: “You’re just like that girl who is a little messy and likes to party and maybe says some dumb things sometimes. Who feels herself but maybe also has a breakdown. But kind of like, parties through it, is very honest, very blunt. A little bit volatile. Like, does dumb things. But it’s brat. You’re brat. That’s brat.” Was 2024 the year of the brat? Charli XCX fans certainly thought so. Advertisement If it doesn’t make sense to you, that’s probably because it isn’t meant to. But as a sensibility, it rode a cultural wave – the joy wave – so adroitly Kamala Harris even hitched her (ill-fated) Joy Wagon to the phenomenon. On a similar train was American Chappell Roan – dubbed the Joy Rebel of the Year – whose success confirmed young women were increasingly sailing different seas from the rest of the culture, and landing in happier places. Gold medal to Celine Dion’s Paris Olympics performance. Credit: Screengrab by IOC via Getty Images In July, it was a diva of a different era who elevated the Paris Olympics, as a wet and occasionally weird opening ceremony gave way to the thing we mostly remember about it – the moment we heard the voice and then spotted the figure of a glistening Celine Dion perched within the Eiffel Tower . It was a moment of extraordinary power – of personal resilience and vocal artistry – that lifted the event out of the damp Paris streets and elevated it to a moment of genuine collective emotion. Paris in summer was where we went looking for hope during the Australian winter, and our team delivered. Well, the women did anyway, bringing home 13 of the 18 gold and 27 of the 45 medals overall for our greatest Games ever. Alongside the usual heroics in the pool ( Kaylee McKeown became the first Australian to win four individual gold was one stand-out among a team of them) there were more eccentric goings-on elsewhere in the Olympic city. You could, if you so chose, react to Rachael “Raygun” Gunn’s zero-point car crash with a scowl and a sneer, and many did, but the open-hearted were able to see the funny side. As were comedians around the world, who found in the Australian breakdancer one of the year’s true unifying comedic moments . In a year of much misery, this achievement should not be underappreciated. Advertisement There were happy cultural warriors elsewhere, too. In Hollywood, Nicole Kidman seemed to star in every other movie and series – as Steve Martin quipped at the Emmys , “when I see an actor I don’t know, I just say, ‘I loved your scene with Nicole Kidman’, and nine times out of 10, I’m right”. Our Nic took time out from starring in everything to win everything. This included inhaling the very rare air of an American Film Institute Life Achievement Award . Flying the flag for the younger generation, Adelaide’s Sarah Snook carted home an Emmy and a Golden Globe and warmed up for her 2025 Broadway run in The Picture Of Dorian Gray with a Laurence Olivier Award for the same tour de force in London. Ms Everywhere: It was a big year for Nicole Kidman. Credit: Dave Benett/WireImage Loyalty to royalty Acting royalty elevated us to higher planes. Garden variety royalty also played its part. Mary Donaldson, erstwhile of Hobart and Sydney, became Queen of Denmark in January, giving hope to everyone who met someone in a bar during the Sydney Olympics almost 25 years ago. You don’t have to love royalty to breathe the occasional sigh of relief at the distraction they provide from the daily grind, and you don’t have to be a monarchist to be pleased that the Princess of Wales faced and emerged from a cancer diagnosis in strong and dignified spirit. In the natural world, bad news abounds when it comes to climate change – but there were bright spots. Advertisement Did you know Britain closed its last coal power station in September ? Or that renewables surged even in the US, where wind generation outpaced coal for the first time? Or that in the Amazon, deforestation reached record lows this year? It did. All is not lost yet. Loading For some old-fashioned cheer from Mother Nature, you could wallow in dog and cat videos on social media (and millions of us did) – or you could turn your gaze to another heroine we didn’t know we needed, the Tay Tay of the Choeropsis liberiensis world. In September, the world fell in love with Moo Deng , a pygmy hippo, a girl whose social media fame drew attention to the plight and past of her species. Who knew the pygmy hippo came with a history this rich, star of a Liberian legend in which Moo Deng’s kind find their way through the forest at night by carrying diamonds in their mouths to light the way? This pigmy hippo has become a viral sensation. Credit: Khao Kheow Open Zoo Now we know, and we are the better for it. Closer to home, Pesto the king penguin gained global fame as a social media superstar , famous on TikTok as the largest chick Melbourne’s Sea Life aquarium has ever seen. Big, beautiful and comfortable in his own skin, Pesto was the kind of hero – “calm, curious and friendly” – we needed in a year when male humans to admire were thin on the ground. Advertisement For other bright lights in the darkness, we needed look no further than our own southern skies, with the return on several occasions of the Aurora Australis , which made rare and spectacular appearances as far north as Queensland in May, September and October. Scientists and citizens alike were dazzled by a liquid light show of pinks and whites and purples and greens. Was there a better symbol of hope than this – a phenomenon named for Aurora, the Roman goddess of dawn, announcing the arrival of a new day? It was as if we had been given a celestial preview of what would become the year’s biggest cultural event, one that also asked us to look skyward – or in the words of the song of the year, Defying Gravity , “look to the western sky”. Bright lights, all right. Aurora Australis seen in Victoria. Credit: Facebook/Travis Carroll The screen adaptation of Wicked landed in cinemas in mid-November, amid one of the strangest promotional tours in memory and hot on the heels of an American political earthquake two weeks earlier. The weird on-camera adventures of Cynthia Erivo and Ariana Grande were at times almost as entertaining as the film they starred in. And the movie’s storyline, adapted from the 2003 stage musical, could have been taken as a contemporary riff on the state of the world , very specifically, at the end of 2024. Ariana Grande and Cynthia Erivo star in Wicked. Credit: Out.com Wicked is a tale of defiance and friendship forged in the most difficult of circumstances; of surmounting challenges and differences; of flying, literally, in the face of a world that seeks to define you. It was, as so many of the hopeful things were in 2024, a message delivered by and to young women startling in their confidence and talent, happy to defy the doom with which the times seek to burden them. Loading The song that ends the film became the year’s musical battle cry – a moment when art and heart met irresistible force, and art and heart won. If ever a year needed an anthem , it was this one – and in Defying Gravity it found it. In a year that insisted we be sad and scared – or summed up in a cheap meme – it was proof there was still space for hearts and minds to soar. Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter .

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