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Perspective on the performance of the markets for the first half of 2022 and outlook for next six months by Mr Mohit Ralhan, Managing Partner, TIW Capital Group

“The global markets, including India, have been under pressure primarily due to investor’s concern about inflation and uncertainties surrounding the impact of Russia – Ukraine conflict. In a persistent inflationary environment, investors tend to shift not only from growth stocks to value stocks but also from long-term duration to short-term duration. It also results in better performance of high dividend yield stocks. Investors also gravitate towards commodity-based stocks as worry over inflation takes over. We have already witnessed a relatively better performance of energy stocks across the globe. Comparatively, Indian markets are expected to continue to do better as India remains among the fastest-growing major economies. But overall, the next six months are also likely to be challenging and investors need to be cautious while picking individual stocks. We also believe that at various points of time over the next six months, the markets will offer an excellent opportunity to invest in well-run companies at many reasonable valuations. While we await the global macroeconomic clouds to clear, at the same time, we should also look out for any such investing opportunities.”

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