Distributor corner

India and most global equity markets corrected sharply in December except for China which was buoyed by re-opening news flow. This again led to a reversal in FII flows with net outflows in December after inflows in November.

Equity Market Review January 2023

2023 is probably going to be that type of year. As investors, we may need to keep our foothold weak and an optimum strategy could well be to keep shifting views and altering investing strategies as the year goes by and incoming data gives more clarity on the future trajectory. Through most of 2020 and 2021, global central banks’ as well as the RBI’s pandemic-driven approach of doing “whatever it takes” gave a somewhat secular narrative to the interest rate backdrop, while 2022, for the most part has been a one-way street of central banks making up for past follies and frantically raising interest rates to gain control over the inflation genie. As we head into 2023, the year promises to be interesting with a high level of confidence that the end of rate hikes across most countries is almost in sight, however with much lower confidence levels of the path that lies beyond. That path, in our view, is still very hazy and likely to make various markets swing from one side to the other as 2023 goes by, requiring a nimble approach from investors.

Fixed Income Outlook January 2023