Equity Market Outlook – April 2022

Key highlights

• We are constructive on equities in 2022 but prepared for higher volatility ahead.
• We are overweight on sectors like select financials, industrials and indirect play on real-estate sector and underweight on consumer staples and utilities
• Mid-caps & Small-caps continue to be a strong source of wealth creation for investors with 3-5 years’ time horizon
• We are positive on economy facing sectors like private consumption demand, private sector investment demand, govt. growth scheme beneficiaries, select financials and china plus one beneficiaries.
• Investor should focus on bottom-up themes rather than macro-themes.