“Inflation is not going to be as transitory as it is being made out to be. It will probably have much more recurring effect and we might see some earnings cut in FY22 as well as FY23. ”
In a note, the foreign brokerage said taper talks in the US, potentially higher US bond yields, firm dollar, consensus EPS cuts and recent muted IPO gains are negatively impacting retail investor sentiment and could act as negative triggers.