Time to diversify to global equities as central banks frontload rate hikes?

Though the recent rally in domestic equities has turned the markets expensive relative to peers, analysts still suggest investors focus on Indian equity markets

Global equity markets have had a roller coaster ride thus far in calendar year 2022 (CY22). Investors have been risk averse in the backdrop of rising inflation and have been 'selling the rallies', amid fears that inflation and growth trajectory remains uncertain, and there could be more volatility ahead for the markets.

Given this, should investors look inwards and invest in Indian markets, or is the nervousness across global equities a good time to diversify into international markets? Most analysts say the risk-reward for investing in Indian equities remains favourable despite the global headwinds and investors should use a correction/fall,