Global liquidity tightening has started impacting growth (slowing of PMIs, money supply, etc) after valuations. The shift will be seen from de-rating to downgrades. To add salt to the wounds, there is tightening by the RBI adds to woes, risking DII flows and SMID/India’s outperformance to large caps/EM. These lead indicators suggest a time for portfolio reshuffle. 1. Defensives: Pharma (upgrade), staples fmcg over IT (downgrade) 2. Consumption: Domestic auto and staples over durables 3. Investment: Cement (upgrade) over Industrials , Real estate 4. BFSI: Private banks/Insurance over PSU banks/NBFCs 5. Global cyclical: Energy (upgrade) over metals/export auto