Envisioning 2022 And Beyond – Sense & Sentiment; Top Stock Picks: Yes Securities

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We visualise the following to underpin a structural Bull run in Indian Equities.

Consumption juggernaut to continue

  • household consumption will increase by 46% to Rs 191 trillion over the next four years,

  • average household Income to jump from Rs 6.8 lakhs in FY22 to Rs 9.5 lakhs in FY26,

  • gen Z and millennials to drive consumption.

Earnings will keep the ball rolling –

  • earnings growth over the next three years to exceed the last decade average substantially,

  • bolstering of balance sheet paves the growth path,

  • troubled sectors are out of the woods,

  • a shift towards organised market share will ensure that even a 10% nominal gross domestic product growth will translate into strong corporate earnings.

Rise in cost of capital will be extremely gradual –

  • FED taper tantrums won’t spoil the party,

  • headline inflation is a transient phenomenon,

  • India Inc borrowing rates mirror sovereign paper,

  • earnings to offset marginal rise in G-Sec yields.

Market cycle hints at a mega rally : Nifty 32000 in 2025 –

  • abundant liquidity to keep equities in the reckoning,

  • growing institutional participation, a shot in the arm for Indian markets,

  • India gaining share in emerging market equity basket.