VIEW ON MARKET FOR THE WEEK AHEAD

Due to the spectacular run of the last 2 years, equity markets had moved into fair valued territory earlier this year, bringing the allocation of equities in investor portfolios closer to their strategic allocation limits. Over the past 12 months, we have been cautious about equities as an asset class given the high valuations. However, since the beginning of the year, markets have corrected concerns about Omicron's impact on the growth recovery due to the war in Ukraine, and higher inflation and interest rates dampening investor sentiment. Additionally, these upheavals have also impacted bottom growth, with recent data suggesting that India's economic growth slowed to 4.1% in the fourth quarter of FY22 and estimates for full-year FY22 GDP growth of an estimated 8.9% were lowered to 8.7% in February. Markets have corrected over the past 6 months and participants are now quick to include the implications of high inflation and the rising interest rate scenario. We believe markets are likely to remain volatile. Against the backdrop of such a landscape, investors should exercise discipline in asset allocation and take advantage of volatility by building equity positions at attractive valuations.