After a poor show in the first ten months of 2022, the equity markets finally look like they may have year-end cheer for investors says DSP Mutual Fund in its monthly report Netra which tracks the latest economic trends and insights.
The November issue of DSP Mutual Fund’s Netra mentions that factors like central banks expected to moderate interest rate hikes in the future, easing of supply-chain costs, squeezing of systemic liquidity and fall in natural gas prices along with a possible return of FII buying may ease volatile equity markets in the near future. Already, global container shipping rates, one of the biggest sources of supply side inflation, are down 67% from their peak of last year and are approaching pre-covid levels.
The freight rates for container ships is now down 68% to $1,486 per container. With inflation under control the pressure on the RBI to hike interest rates would reduce. Sahil Kapoor, market strategist and head of products at DSP Mutual Fund said “The equity market seems poised to move up in line with its long term secular trend, as FIIs seem less bearish on Indian equities, valuations as evidenced by the price earnings ratio have become more attractive and Indian investors continue regular investments in equity mutual funds via SIPs”.
