New Delhi: From pandemic shocks to state elections to global trends, massive returns from investors and a historic year of milestones are expected to drive the Indian stock market in 2022.
Union Budget, which will be closely watched for further reform measures, and quarterly earnings of corporates will be among developments on investors’ radar as global central banks move towards a tighter interest regime in the wake of inflationary pressures.
The year 2021 has been largely beneficial for equity investors. 30-Share Benchmark Sensex It crossed the critical levels of 50,000 and 60,000 this year after the pandemic-triggered crash in March 2020.
The strong momentum on the IPO front is likely to continue in the new year, with state-run LIC and several other companies in the pipeline.
By December 29 this year, the Sensex had climbed 10,055.16 points, or 21.05 per cent, to its all-time high of 62,245.43 on October 19.
“Strong earnings recovery will be the biggest thing that will drive the market rally and consumption may see further momentum across sectors after a nearly two-year cycle. The government may try to further pick up the pace of growth and consumption in the upcoming budget. is…,” Sunil trusteeManaging Director of Swastika Investmart Limited said.
Another important factor now is the increasing participation of retail investors in the domestic stock market, which has also resulted in a scenario where there is no more dependence on foreign portfolio investments.
“Regarding the levels of Sensex and Nifty, on a conservative note, Sensex may test 71,000 level and Nifty may touch 21,000 mark by the end of 2022. On the downside, 53,500/51,500 and 16,000/15,500 strong support There are levels,” Nyati said.
Siddharth Khemka, Head-Retail Research, Motilal Oswal Financial Services Ltd. said, Global factors like US FedThe risk from the Omicron version as well as interest rate announcements and interest rate volatility is likely to lead to market direction next year.
“On the domestic front, the Union Budget, along with the RBI’s policy decisions in response to the Fed’s interest rate decisions, the five state elections will decide the direction of the market,” he said.
Analysts said movement of oil prices, bond yields, investment pattern of foreign institutional investors and US dollar index would also influence the markets.
On risk factors, Nyati flagged pandemic uncertainties and rising inflation. “Otherwise, there doesn’t appear to be any major concern”.
There was some correction in the market at the end of the year as the BSE benchmark fell over 7 per cent from a record high in October amid higher valuations and Omicron fears. Therefore, near-term market trends will depend a lot on the potential risks from the Omicron variant.
According to analysts, 2021 has been a good year for investors, where the benchmark saw a return of around 21 per cent, but the real money was made in the broader market.
Vinod Nair, Head of Research, Geojit Financial Services, said the positive drivers are a strong economic revival, with higher corporate earnings growth and the benefits of reforms. “We expect an increase in interest rates which will make the financial market profitable with increased credit growth,” Nair said.
Further, he said India’s future themes on green energy, ethanol, new generation businesses, technology, manufacturing (production linked incentives) and online-based companies will help the equity market perform.
In a recent note, Motilal Oswal Broking & Distribution said that going forward, “we remain optimistic and expect Nifty to deliver around 12-15 per cent returns in 2022, driven by the continuation of economic recovery and strong earnings growth.” is supported”.
Sectors such as IT, telecom, capital goods, cement and real estate are expected to perform well in 2022. While banking and auto have underperformed the market so far – 2022 has the potential to take out the dark horse, it said.
“Currently, we are in a correction mode, but within a longer bull rally. Near-term trend may be muted and volatility may remain. However, we anticipate correction to be in the final stages and further deepening corrections Chances of less.
“We expect the market sentiment to improve in the latter half of the year,” Nair said.
According to Motilal Oswal Broking & Distribution, while the market trend could be volatile in the near term due to potential risks from Omicron variants and weak global cues, in the long run, strong earnings delivery coupled with positive macroeconomic data will be dominant. To move the markets upward.
On the budget wish list, Nyati said the markets want a budget that is reformist and pro-growth and at the same time they want more clarity on the pace of the government’s asset monetization and disinvestment programmes.
Union Budget, which will be closely watched for further reform measures, and quarterly earnings of corporates will be among developments on investors’ radar as global central banks move towards a tighter interest regime in the wake of inflationary pressures.
The year 2021 has been largely beneficial for equity investors. 30-Share Benchmark Sensex It crossed the critical levels of 50,000 and 60,000 this year after the pandemic-triggered crash in March 2020.
The strong momentum on the IPO front is likely to continue in the new year, with state-run LIC and several other companies in the pipeline.
By December 29 this year, the Sensex had climbed 10,055.16 points, or 21.05 per cent, to its all-time high of 62,245.43 on October 19.
“Strong earnings recovery will be the biggest thing that will drive the market rally and consumption may see further momentum across sectors after a nearly two-year cycle. The government may try to further pick up the pace of growth and consumption in the upcoming budget. is…,” Sunil trusteeManaging Director of Swastika Investmart Limited said.
Another important factor now is the increasing participation of retail investors in the domestic stock market, which has also resulted in a scenario where there is no more dependence on foreign portfolio investments.
“Regarding the levels of Sensex and Nifty, on a conservative note, Sensex may test 71,000 level and Nifty may touch 21,000 mark by the end of 2022. On the downside, 53,500/51,500 and 16,000/15,500 strong support There are levels,” Nyati said.
Siddharth Khemka, Head-Retail Research, Motilal Oswal Financial Services Ltd. said, Global factors like US FedThe risk from the Omicron version as well as interest rate announcements and interest rate volatility is likely to lead to market direction next year.
“On the domestic front, the Union Budget, along with the RBI’s policy decisions in response to the Fed’s interest rate decisions, the five state elections will decide the direction of the market,” he said.
Analysts said movement of oil prices, bond yields, investment pattern of foreign institutional investors and US dollar index would also influence the markets.
On risk factors, Nyati flagged pandemic uncertainties and rising inflation. “Otherwise, there doesn’t appear to be any major concern”.
There was some correction in the market at the end of the year as the BSE benchmark fell over 7 per cent from a record high in October amid higher valuations and Omicron fears. Therefore, near-term market trends will depend a lot on the potential risks from the Omicron variant.
According to analysts, 2021 has been a good year for investors, where the benchmark saw a return of around 21 per cent, but the real money was made in the broader market.
Vinod Nair, Head of Research, Geojit Financial Services, said the positive drivers are a strong economic revival, with higher corporate earnings growth and the benefits of reforms. “We expect an increase in interest rates which will make the financial market profitable with increased credit growth,” Nair said.
Further, he said India’s future themes on green energy, ethanol, new generation businesses, technology, manufacturing (production linked incentives) and online-based companies will help the equity market perform.
In a recent note, Motilal Oswal Broking & Distribution said that going forward, “we remain optimistic and expect Nifty to deliver around 12-15 per cent returns in 2022, driven by the continuation of economic recovery and strong earnings growth.” is supported”.
Sectors such as IT, telecom, capital goods, cement and real estate are expected to perform well in 2022. While banking and auto have underperformed the market so far – 2022 has the potential to take out the dark horse, it said.
“Currently, we are in a correction mode, but within a longer bull rally. Near-term trend may be muted and volatility may remain. However, we anticipate correction to be in the final stages and further deepening corrections Chances of less.
“We expect the market sentiment to improve in the latter half of the year,” Nair said.
According to Motilal Oswal Broking & Distribution, while the market trend could be volatile in the near term due to potential risks from Omicron variants and weak global cues, in the long run, strong earnings delivery coupled with positive macroeconomic data will be dominant. To move the markets upward.
On the budget wish list, Nyati said the markets want a budget that is reformist and pro-growth and at the same time they want more clarity on the pace of the government’s asset monetization and disinvestment programmes.
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