BofA’s Amish Shah sees 50 bps rate hike, signals shift in earnings outlook

Amish Shah, Head of India Research, BofA Global Research, said growth, inflation, and fiscal pressures are rising, with GDP estimates lowered and rate hikes expected. He noted that stagflation risks are now real and earnings projections have been reduced from 14% to 8.5%. Rate-sensitive sectors and crude-linked segments face the most pressure. While market risk-reward has improved, he said investors should deploy cash gradually and focus on selective opportunities amid ongoing uncertainty.