The pandemic left economies all over the globe struggling to maintain stability. It has also left investors uncertain as to where they should invest their money. This year will further test the tenacity of the Indian market and investors will have to be extra cautious about stock selection. Last year ended on a high note with Sensex has gained 22% and Nifty 24% respectively. While the predictions for 2022 seem promising, analysts have warned investors to be cautious as the market may face several headwinds. The overarching expectation is that the Indian economy will manage to maintain above-average market valuations. That being said, some sectors are more likely to outperform others in the coming year. Read on to know which sectors you should invest in 2022.
Analysts expect India to be the fastest-growing economy in 2022. The infrastructure that was put on hold in 2018-2019 is expected to take off in 2022. In light of this these are the sectors that are likely to do well this year:
Over the next few months, the market direction will be influenced mainly by domestic factors such as the Union Budget that will be presented on February 1st. The consensus seems to be that the financial sector, industrial sector, capital goods will do well in 2022. Pharmaceuticals are also looking to make a mark, and a few experts have placed their bets on real estate and automobiles while others have advised against them.
Ultimately, every investor should assess their own goals, risk profile, portfolio management and investment strategy. With enough research, the right tools and some expert insight, 2022 can be a very promising year for many.