Deeper correction

Geo-politics & monetary policy have increased market risks

Investor sentiment has changed for the worse, leading to the end of a long bull run. Ironically, stock valuations are falling, even though an economic recovery is still in progress and the pandemic is easing its grip. India, which was among the best-performing markets of 2021, could experience one of the more extreme corrections as sentiment changes. Rupee equity valuations are the highest among emerging markets and the rupee itself may be under pressure, given heavy foreign portfolio investment (FPI) selling and a rising trade deficit. The downturn is partly due to geopolitical tensions in Ukraine. But investors have also