Indian equities (NIFTY: -3.5%) under-performed emerging markets (MSCI EM: -1.6%) during December 2022. However, Indian markets outperformed the emerging markets for the Calendar Year 2022 by ~17%. Overall global weakness was driven by hawkish US Federal Reserve raising the recession risk in the US. Large Cap Indices under-performed both mid and small cap in India during the month. The FII equity inflow in December 2022 slowed down to US$0.2bn as against US$4.6bn inflow in November 2022. On the other hand, DII equity saw an inflow of about US$2.9bn, as against the previous month outflow of US$0.8bn. PSU Banks and Metals out-performed during the month; while IT, Energy & Auto were key laggards.
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