scorecardresearch
Analysts suggest these themes for big returns in 2022; have a look

Analysts suggest these themes for big returns in 2022; have a look

Going ahead, analysts believe that the market will continue to deliver a double-digit return to investors and select sectors may produce big gainers. Here’s what they have to say.

Analysts suggest these themes for big returns in 2022; have a look Analysts suggest these themes for big returns in 2022; have a look

Majority of sectors on Dalal Street managed to deliver a handsome return to investors last year. With a rally of 69 per cent, the BSE Power index emerged as the top sectoral gainer on the exchange. It was followed by BSE Metal (up 66 per cent), Information Technology (up 56 per cent), Realty (up 55 per cent) and Capital Goods (up 53 per cent). Other sectoral indices also gained between 9 per cent and 50 per cent during the same period.

On the other hand, the benchmark BSE Sensex advanced nearly 22 per cent in 2021 fuelled by the gush of liquidity and robust inflows by institutional investors. Going ahead, analysts believe that the market will continue to deliver a double-digit return to investors and select sectors may produce big gainers. Here’s what they have to say.

Vinod Nair, head of research, Geojit Financial Services

The future theme for India is green energy, new generation business, tech-based, sugar and online-based companies. At present, the availability of such themes in the market is limited while those few which are available trade at expensive prices. However, good businesses with a strong business model are expected to do well and trade at healthy valuations.

Neeraj Chadawar, head-quantitative equity research, Axis Securities

The brokerage is positive on the long-term perspective of the market, based on the economic and market development. It believes that sectors like housing, banks, infrastructure, digital and cloud and telecom could deliver a solid return to investors in 2022. Housing and banking will be major themes to watch out for on account of their improved outlook and current lower interest rate regime. The infrastructure sector is an emerging theme as the government augments its spending in this space moving forward. Digital and cloud will continue to remain major long-term structural themes.

Deepak Jasani, head of retail research, HDFC Securities

Given the uncertainties mentioned elsewhere, one can focus more on defensives (FMCG, Pharma and IT services) till there is more clarity on the economic growth and inflation across the globe. This is despite the fact that defensives may not be cheap. In case the markets continue to underperform, these sectors may provide downside protection as they may fall less than the market or other sectors.

Mitul Shah, head of research, institutional desk, Reliance Securities

Reliance Securities is positive on IT names on increasing automation and potential for artificial intelligence, machine learning and the internet of things. Indian IT names witnessed strong deal wins and margin recovery driven by increased offshoring and higher utilisation. Shah is also bullish on EV space. The adoption of electric vehicles (EV) would be a transformational change over the next decade, with an increasing focus on new EV launches by most original equipment makers. Overall EV adoption would be gradual but has a huge potential for growth in terms of localisation as well as an opportunity to make India a global manufacturing hub for EV and EV equipment or ancillaries.

Joseph Thomas, head of research, Emkay Wealth Management

Technology, pharma and healthcare have been in the limelight for almost two years now. These sectors will continue to be relevant to the economy for many reasons, the more prominent being the enhanced dependence on digitisation against the background of restricted mobility, the need to transact online, and the reliance on pro-active and preventive healthcare all borne out of the peculiar circumstances which prevailed recently. 

The economic revival in the US and Europe has also contributed to the prospects of traditional product and services tech companies. Realty and all the related sub-sectors or ancillaries are seeing revival at this juncture, and it may continue to rise with the revival in economic activity. 

The actual numbers from this space indicate a revival after a prolonged period of stagnation in prices. Major private banks, and the top three or four PSU banks, and select NBFCs will be well-bid as we progress into the next year. With enhanced digitisation, renewed thrust on retail business, and with a not so problematic NPA profile, the financial sector may see a major surge in growth.

Also Read: App developer claims Apple hosts fake streaming apps on App Store, makes money out of them

Also Read: Amazon miniTV now available for iOS users, will give access to free shows and movies

Published on: Jan 05, 2022, 1:31 PM IST
Posted by: Tarab Zaidi, Jan 05, 2022, 1:19 PM IST