'While foreign institutional investor flows are still negative, they will turn positive in the latter part of 2023 as India's resilient growth becomes perceptible.'
'We remain positive on technology, private sector financials, gas, infrastructure, and export-oriented plays.'
'The market will focus on the fact that India does have strong earnings growth this year.'
'There is still scope for selective stockpicking.'
'There will be a series of rate hikes, but the pace and quantum will depend on how the economy in the US and the rest of the world behave.'
After a stellar run that saw the frontline indices - the S&P BSE Sensex and the Nifty 50 - clock gains of around 21 per cent and 24 per cent respectively in calendar year 2021 (CY21), the year gone by in real sense belonged to the mid-and small-cap segments. Thus far in CY21, the mid-and small-cap indexes on the BSE have far outpaced the run in the frontline indices and notched up a gain of around 38 per cent and 61 per cent, respectively during this period. Though analysts expect the outperformance to continue in 2022, they caution against the multiple headwinds in the year ahead that may dent the overall market sentiment.
'Indices will remain range bound in 2022 as earnings catch up with the current multiples.'
After a stellar run in 2021 that saw the S&P BSE Sensex and the Nifty50 clock gains of 20 per cent and 22 per cent respectively, global equity markets, including India, are gearing up to welcome 2022 on a cautious note. For one, new variants of the Covid -19 infection that make current vaccines less effective is one of the key risks worth flagging, analysts said. Inflation was also a risk for this asset class in 2021, although most market participants expect that the current elevated inflation levels will be transitory.
'Overtightening of monetary policy by central banks and the spread of new Covid variants, which may force governments to restart lockdowns or restrict mobility.'
'As the Indian economy continues to expand over the next three years, mid- and small-caps should do well as they have higher exposure to the domestic economy than large-caps.'
'Young working adults between 25 and 34, who are in Indian Tier II and III cities, are leading the charge in terms of crypto adoption.'
'Investors should keep them on their radar and invest over a longer time frame, and expect some of these companies to bite the dust.'
'There will be massive differences in sectors and stocks over the next few years.'
High networth individuals selling stocks to buy real estate is among the key risks for the Indian markets.
'India seems to be on a relatively better wicket compared to other emerging markets.'
'Recent underperformance notwithstanding, equities should constitute a major part of investors' financial portfolio.'
'The biggest risk to the Indian markets from a 12-18-month view is that the current government does not get re-elected, or loses in a way that is not represented at all in the next central government.'
'We have relatively strong growth and a healthy corporate earnings cycle as positives, but a worrisome current account deficit and high inflation as challenges.'
Gold looks cheap compared to the stock markets that are highly overbought at the moment.
Rising oil prices, sharp slowdown in mutual fund inflows and steep valuations remain the key risks for Indian investors going ahead.
'It will be best for investors to have a systematic investment plan in mid-cap and small-cap funds with a three-/five-year horizon.'
'In the medium to long term mid-caps tend to generate higher returns, albeit with increased volatility.'
'Most Indian logistics firms do not have the facility to store and transport COVID-19 vaccine right now.'
'The selling in India may emerge as soon as the RBI reverses its interest rate stance.'
'As we expect the economy to continue to grow above the trend line, we expect capex decisions to be taken next year when there is more certainty about the cost of funding and the economy.'
'Thankfully, most investors in India have now seen through this false narrative and are once again deploying their hard-earned money.
'2022 has not been -- and will not be -- the kind of 2021 bull market, which lifted all boats.'
'The recent correction in indices has made the markets cheaper to invest for the long term.'
The surge in IT, auto and FMCG stocks were led by investors seeking safety against market volatility.
'They can shift to dynamic asset allocation funds to automatically rebalance their equity exposure.'
'The markets could shrug off demonetisation as a one-off extraordinary period.'
'There is a lot of interest from potential clients who have remained away from the markets in past years.' 'They are evaluating whether this is a good time to enter, especially since there are very few alternatives to earn meaningful returns.'
'The markets have corrected almost 8-9 per cent from their highs, so one can accumulate quality stocks at reasonable prices.'
With GST, demonetisaton and the banking sector reset, investment banker Christopher Wood expects PM to focus on generating jobs ahead of the 2019 election.
Christopher Wood, global head of equity strategy at Jefferies reiterate his bullish view on Indian equities on the back of a steady fall in Covid cases coupled with a sharp economic recovery in India, reports Puneet Wadhwa.
'If the third wave of Covid infections is as bad as the second one, the market may get very polarised with a preference for blue-chips with low volatility.'
'In 2022, active management, long-short strategies, multi-asset strategies, and asset allocation strategies need to be considered to meet long-term investment goals.'
'Good investment opportunities should not be missed.'
'Internet, healthcare and life insurance are a few sectors which offer solid long-term decadal potential.'
The best-case scenario -- to which Morgan Stanley attaches 30 per cent probability -- pegs the S&P BSE Sensex at 41,500 levels in the next 12 months.
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