Indian equities in 2022 – A deep correction or a steep recovery?

PRO Only Highlights
–  Quarterly performance largely backed by improved realisations
–  Medium-term triggers China plus and protectionist measures for tyre industry
–  Valuations not inexpensive; but improved medium-term outlook

Indian indices had been mimicking the moves of global equities since the onset of the pandemic in early 2020. The stupendous rally in global markets was matched by the Nifty despite India not receiving even a fraction of the fiscal stimulus that developed countries, especially the US, had pumped into their economies. While the going was good and the rally seemed eternal, markets have now taken a sharp U-turn on murmurs of interest rate hike in the US. In…