Good morning, amid the geopolitical crisis (sadly heavy human loss in Ukraine), global markets are in volatile and in indecisive mode. In the last month, global markets have focussed on politics rather than economics and earnings to some extent. Although some tailwinds that should be considered in the current scenario
1) Fed Chairman commentary has now turned more nimble (compared to same in last few months) talking of only 25bps (rather than 50bps at one go that market was anticipating). As in the current war scenario, he might not take that aggressive stance on interest rates hike.
2) Now the World has suddenly stopped talking about the Covid crisis after it consistently holding the global limelight for the last two years. It seems now World has learned to live with it.
3) Russia’s weightage in MSCI and FTSE will take a beating. Russian stocks have suddenly become toxic. There will be an exodus of a lot of active and passive funds. That weightage will get divided amongst other countries in EM space, here India might have an edge.