India’s stock benchmarks could fall by up to 10% this year as volatility grips markets, and capital goods, construction and large private banks may be the best sectoral bets for investors during this phase, according to a BloombergQuint survey.
For the Indian market, global rate tightening is a much bigger worry than geopolitical tensions, a majority of the 11 market experts and analysts surveyed said.
Benchmarks S&P BSE Sensex and NSE Nifty 50 have in February alone swung 3% in a single day twice. Foreign investors have been selling since October on concerns over soaring oil prices, inflation, faster rate hikes by central banks across the world. The tensions between Russia and Ukraine have amplified worries.
BloombergQuint asked analysts and market participants on what’s likely in 2022 and how investors can navigate it better:
About 80% of the respondents consider faster rate hikes globally as the biggest risk. None see state elections or the possibility of a new Covid-19 wave as potential concerns.