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Capital cost may rise as drivers of equities reverse: Report

Three decades have been benign for global equities, but that time is now changing

Volatility is the new normal for Indian equities

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The slowdown in China and the inability of other EMs to take their place will have adverse effects on the global GDP, the note by KIE said

Sundar Sethuraman Thiruvananthapuram

2 min read Last Updated : Oct 13 2022 | 8:15 PM IST

Some key drivers of global equities for 30 years are likely to reverse in the next decade, potentially queering the pitch for equity investments.

Geopolitical risks, higher interest rates, China’s slowdown, and higher environment-related costs are likely to drive up the cost of capital, according to a report by Kotak Institutional Equities (KIE).

The report said the past three decades have been benign for global equities, as it was a period of calm after the fall of the Soviet Union in the early nineties. Now, there is a risk of geopolitical tension due to the increasing competition between China and

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