Ridham Desai of Morgan Stanley says strong corporate payout, a new merger & acquisition cycle, and robust household demand for equities combined with improving growth and reasonable equity valuations bring his bull case into play.
He feels the technology sector looks inexpensive, oversold and co-relates strongly with US yields; so he remains overweight.
He is overweight on consumer discretionary, financials, and technology and underweight on consumer staples, energy, materials and telecom.
The downside risks are further rise in commodity prices, elevated mid-cap valuations and high global co-relations, therefore, a global risk-off, Desai says.
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