<p>India's benchmark Nifty 50 index will rise roughly 5 per cent next year, which would be its slowest growth in 5 years, BofA Securities estimated, but also said Indian stocks were a good bet if a global recession struck.</p>.<p>BofA Securities expects the bluechip index to close at 19,500 points next year, while continuing to be volatile and trade between 17,000 and 20,000 levels for the year.</p>.<p>The Nifty 50 index is up slightly more than 7 per cent at 18,584 so far in 2022, after three straight years of double-digit growth. This year has also been volatile with the index swinging between a low of 15,183.40 to a record high of 18,887.60.</p>.<p>BofA Securities advised buying any dips at around 17,000 levels, saying India's economic growth and equities are less impacted during a recession and recover faster after one.</p>.<p>"Indian markets deliver much higher returns against the U.S, 12 months post a recession," BofA Securities said, based on an analysis of the past three U.S. recessionary cycles.</p>.<p>Even valuations are unlikely to contract below the long-term average, said BofA, as domestic investors could see $20 billion in inflows from pension, provident, insurance funds and systematic investment plans.</p>.<p>And with foreign institutional investors (FII) ownership of Indian equities at a multi-year low of 18 per cent now, the potential for incremental outflows from FIIs is limited, it added.</p>.<p>In fact, there could be inflows into emerging markets as the U.S. Federal Reserve could be forced to start cutting interest rates early if there is a pronounced downtrend in consumer price inflation, BofA Securities said.</p>.<p>BofA analysts remain overweight on sectors like financials, industrials, staples, utilities, metals and cement, and underweight on IT, healthcare, consumer discretionary and autos.</p>.<p>Meanwhile, Samir Arora, founder and fund manager at Helios Capital, expects Indian equity markets to revert towards a long-term trend of 10 per cent-15 per cent returns on average in rupee terms next year. </p>
<p>India's benchmark Nifty 50 index will rise roughly 5 per cent next year, which would be its slowest growth in 5 years, BofA Securities estimated, but also said Indian stocks were a good bet if a global recession struck.</p>.<p>BofA Securities expects the bluechip index to close at 19,500 points next year, while continuing to be volatile and trade between 17,000 and 20,000 levels for the year.</p>.<p>The Nifty 50 index is up slightly more than 7 per cent at 18,584 so far in 2022, after three straight years of double-digit growth. This year has also been volatile with the index swinging between a low of 15,183.40 to a record high of 18,887.60.</p>.<p>BofA Securities advised buying any dips at around 17,000 levels, saying India's economic growth and equities are less impacted during a recession and recover faster after one.</p>.<p>"Indian markets deliver much higher returns against the U.S, 12 months post a recession," BofA Securities said, based on an analysis of the past three U.S. recessionary cycles.</p>.<p>Even valuations are unlikely to contract below the long-term average, said BofA, as domestic investors could see $20 billion in inflows from pension, provident, insurance funds and systematic investment plans.</p>.<p>And with foreign institutional investors (FII) ownership of Indian equities at a multi-year low of 18 per cent now, the potential for incremental outflows from FIIs is limited, it added.</p>.<p>In fact, there could be inflows into emerging markets as the U.S. Federal Reserve could be forced to start cutting interest rates early if there is a pronounced downtrend in consumer price inflation, BofA Securities said.</p>.<p>BofA analysts remain overweight on sectors like financials, industrials, staples, utilities, metals and cement, and underweight on IT, healthcare, consumer discretionary and autos.</p>.<p>Meanwhile, Samir Arora, founder and fund manager at Helios Capital, expects Indian equity markets to revert towards a long-term trend of 10 per cent-15 per cent returns on average in rupee terms next year. </p>