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

Yes Securities Report

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.

Click on the attachment for full list of Yes Securities' top stock picks for 2022:

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