Newsletter March, 2022

Markets have seen a sharp correction with Nifty 50/BSE Midcap falling by 10%/15% from their peaks largely due to the on-going conflict between Russia and Ukraine. This has further flamed the inflation concerns with soaring energy prices. High inflation, rising interest rates along with uncertain external factors should lead to heightened volatility in the next few months. We feel that this would provide a good opportunity to increase allocation in the equity market and create long-term wealth. On 18th Jan, we highlighted that market is offering a good entry point. Since then, Nifty / BSE Midcap has delivered 19%/43% returns even after accounting for the recent fall.