Right from global runaway inflation, elevated interest rate environments, Russia-Ukraine geopolitical crisis, and consequently fractured trade ecosystems tested investor resilience to great extent.

“The biggest overweight continues to be capital goods and industrial machinery where we have been overweight since October 2021, about 15 months now. That continues to be our biggest overweight and that has been a big winner. Other overweight sectors have really come from a bottom up stock picking. There might be textiles, a few chemicals, some auto components stocks.”

"Wage hikes and income generation as such has been moderate, in the range of single digit hikes, which barely catches up with inflation. Now under this circumstance, onc cannot assume that consumers will have an unending availability of capital. Mid-6-7-8% growth rate for refrigerators, washing machines or even TVs would be my expectation for this year. "

"Definitely cover some portion but do not cover the entire portion because it is difficult to now completely come to the conclusion that we are going to see a huge rise. But definitely leave some part of your short position and at the same time cover partially. I am not sure which way the market is going to take, but definitely the overall outlook is bearish."

​In India’s case our argument has always and always been that India’s market for last one year or rather 15-16 months has never been cheap enough. While the PEs are lower but because yields have risen pretty significantly, the equity risk premia is actually lower than what it was a year ago.

“The market tends to be volatile and so the impact of steep Fed rate hikes and quantitative tightening always happens with a lag and the economic impact of that will be seen in the next 2-4 months. We have to keep all those factors in mind. Markets are at a fair valuation and expect a reasonably range-bound to volatile market, which could do well in the second half of the year. ”

The Bank Nifty has really led this entire market higher in the last one year. I think it has been the poster boy, it has been the Pied Piper, it has been the reason why the Nifty scaled to levels as high as 18,900 but I just feel that all positives are now in the price.

I am comparing it to pre pandemic because a lot of the data that you see coming out post pandemic is skewed. One, in the first half of the pandemic we saw a significant drop and then towards 2021 and early 2022 we saw a significant increase.