Summary: Q1: With the US Federal Reserve and the RBI making their intent clear, how do you see global equity markets play out in the rest of 2022? Ans: >They’ll be choppy; many moving parts in the markets >Aura of uncertainty hanging over markets >More chances of downside than an upswing Q2: So are you a buyer on dips or a seller on a rise? Ans: >Buyers need to be nimble >Outlook is uncertain; do not advise people engage in active trading Q3: Is the global equity market headed towards a bear phase and give negative returns in 2022? And: >Possible that equities are headed towards a bear phase >Market trajectory has taken a U-turn >Overall direction does not look positive Q4: Where does India stand in your pecking order? Which other regions look more lucrative? Ans: >India has outperformed most regions YTD >Domestic investors continue to buy stocks; untapped potential >Rising oil a headwind for the Indian economy >Earnings growth in FY23 will come from sectors not dependent on commodity prices >Indian equities to perform in-line with global peers Q6: Inflation fears have been known since quite some time now, but the selling over the past few days and weeks have been brutal. Has the sell-off been overdone? Ans: >Markets have surprised over the past few weeks >Assuming we’re in a bear phase, three-fourths of the pain is over >US Fed tightening expectations will prove to be exaggerated >Signs that economic growth is starting to slow; will help in cooling inflation Q7: Investment-worthy stocks and sectors in the Indian context? Ans: >Stocks not overheated; global cues in focus >Markets trading on macro events rather than fundamentals >Commodity producers likely to do well
