• Business News
  • Insurance
  • Saving
  • Share Market 5Paisa
  • Loan
  • Mutual Funds
  • Investment
    • हिन्दी
    • తెలుగు
    • मराठी
    • বাংলা
    • ગુજરાતી
    • ಕನ್ನಡ
  • Close
  • Daily Show
    • 2+2=5
    • Take it Easy
    • Red Alert
    • Formula Guru
    • Money Gyan
    • Money Central
    • Money time
    • Jhatpat
  • Weekly Show
    • Money Comics
    • Economicom
    • Realty Check
    • Smile and pay
    • Money Tales
    • Spend Wise
    • Companynama
  • Insurance
  • Savings
  • Share Market 5Paisa
  • Loan
  • Crypto coindcx
  • Investment
  • Mutual Funds
  • Real Estate
  • Tax
  • Exclusive
  • Home » News » Markets » Markets and what to expect in 2022

Markets and what to expect in 2022

Furthermore, credit growth, which bottomed out in April at about 5%, increased to about 7% in November

  • Vaibhav Agrawal
  • Publish Date - December 19, 2021 / 06:50 PM IST
Markets and what to expect in 2022
There is also a marked increase in sanctions by banks to fund corporate capex. Credit card spends at over Rs. 1 lakh crores in the month of October was an encouraging sign of a marked increase in consumer spending.

Indian stock markets have had a great run in 2021, with the market breadth being amongst the broadest in recent years. However, with the overarching narrative of rising global inflation, Fed taper, India’s premium valuations and a potential third wave, will the market do as well in 2022?
Let’s explore….

Omicron unlikely to derail Indian growth

India’s GDP, which was battered by the 2nd wave, is now firmly on a growth path. If we are to go by high frequency indicators such as GST collection, e-way bills and container freight, there are clear indications that the economy is likely to do better than even the pre-pandemic trajectory. Furthermore, most GDP growth estimates are currently conservative. The current activity levels suggest that many of these estimates are also likely to be upgraded.

Even if Omicron was to cause the 3rd wave, it is unlikely to derail India’s growth story as around 90% of Indians are expected to have Covid anti-bodies by March 22. Also, since Omicron is considered to be milder than the other variants of Covid, many virologists globally are of the view that this maybe signalling the beginning of the end of Covid.

Based on the government’s impetus on infrastructure development both in the budget and the national infrastructure pipeline, there is increased spending by the state and central governments especially in the rail, road and water segments. Due to low-interest rates, healthy corporate balance sheets and favourable government policies, there is a marked increase in capex announcements by private sector companies as well.

Furthermore, credit growth, which bottomed out in April at about 5%, increased to about 7% in November. There is also a marked increase in sanctions by banks to fund corporate capex. Credit card spends at over Rs. 1 lakh crores in the month of October was an encouraging sign of a marked increase in consumer spending.

In the backdrop of all of this, we maybe sitting on the cusp of a long upcycle, similar to what we saw in 2003, when the economy was coming out of a cyclical low. We are starting the cycle with low interest rates, low debt levels and surplus liquidity. There is a confluence of four factors for a bull cycle after nearly twenty years, namely formalization, consolidation, stronger balance sheets and inflation.

In 2022, markets should their continue their upward trajectory, albeit with some hiccups along the way of some negative news flow. Investors can focus on two sectors- private financials and IT services. Healthy credit growth, along with increased risk appetite amongst banks, should aid private sector banks. As a result of the pandemic, corporations globally have accelerated their focus on transforming to digital services. This has led to an accelerated demand upcycle for Indian IT services companies.

(The author is the CIO of TejiMandi, views are personal)

Download Money9 App for the latest updates on Personal Finance.

follow us

  • Facebook
  • Twitter
  • LinkedIn
  • Telegram
  • Youtube
  • Instagram

also read

  • Trading ideas: six stock recommendations for January 21

    Trading ideas: six stock recommendations for January 21

  • Trading ideas: six stock recommendations for Thrusday

    Trading ideas: six stock recommendations for Thrusday

Read more news on

  • GDP
  • markets
  • Nifty
  • Sensex

Latest Video

SEE MORE
TV9 Network and Money9 Presents Financial Freedom Summit

TV9 Network and Money9 Presents Financial Freedom Summit

Updated: March 15, 2023
Is the government asking us to save or not to save, that's the question! | Union Budget 2023 |  Money9 English

Is the government asking us to save or not to save, that’s the question! | Union Budget 2023 | Money9 English

Updated: February 2, 2023
Dear Finance Minister, getting a job or an admission in a good college is difficult, please help

Dear Finance Minister, getting a job or an admission in a good college is difficult, please help

Updated: January 31, 2023
Dear Finance Minister, will savings schemes get a makeover this Budget 2023?

Dear Finance Minister, will savings schemes get a makeover this Budget 2023?

Updated: January 30, 2023
A pensioner airs his grievances in front of Finance Minister ahead of upcoming Union Budget 2023

A pensioner airs his grievances in front of Finance Minister ahead of upcoming Union Budget 2023

Updated: January 27, 2023
A contractual government employee writes open letter to Finance Minister giving suggestions on Budget 2023

A contractual government employee writes open letter to Finance Minister giving suggestions on Budget 2023

Updated: January 25, 2023
A disappointed homebuyer writes open letter to Finance Minister failure giving suggestions for Budget 2023

A disappointed homebuyer writes open letter to Finance Minister failure giving suggestions for Budget 2023

Updated: January 25, 2023
A gig worker writes open letter to Finance Minister ahead of Union Budget 2023

A gig worker writes open letter to Finance Minister ahead of Union Budget 2023

Updated: January 24, 2023
Open in App

Related

  • What does India companies’ Q1 FY23 results indicate?

    What does India companies’ Q1 FY23 results indicate?

  • Markets Boom Amidst Gloom

    Markets Boom Amidst Gloom

  • All eyes are now on the Federal Reserve policy

    All eyes are now on the Federal Reserve policy

  • How Geopolitics is Impacting Investment?

    How Geopolitics is Impacting Investment?

  • Is GDP figure for Q4 FY22 really that pleasing?

    Is GDP figure for Q4 FY22 really that pleasing?

  • Markets so far going by the adage; Sell in May and go away

    Markets so far going by the adage; Sell in May and go away

More

  • Google Bard login process made accessible to more users!
    Bulletin

    Google Bard login process made accessible to more users!

  • Do you know you can get a free life insurance of up to Rs 7 lakh on your provident fund account?
    Savings

    Get Free Insurance Of Rs 7 Lakh!

  • Twitter 2FA not working? Well!!! Twitter has put 2FA security feature behind paywall!!!
    Bulletin

    Pay for 'Security' Guard at Twitter!

  • Know all about moving averages here
    Stocks

    Know all about moving averages here

  • Users report problem in subscribing Chat GPT Plus in India
    Bulletin

    Users report problem in subscribing Chat GPT Plus in India

  • TV9 Sites

  • TV9 Hindi
  • TV9Telugu.com
  • TV9 Marathi
  • TV9 Gujarati
  • TV9 Kannada
  • TV9 Bangla
  • News9 Live
  • Know this india
  • Money9 Sites

  • Money9 Hindi
  • Money9 English
  • Money9 Marathi
  • Money9 Telugu
  • Money9 Gujarati
  • Money9 Kannada
  • Money9 Bangla
  • Topics

  • Insurance
  • Savings
  • Loan
  • Stocks
  • Mutual Funds
  • Real Estate
  • Tax
  • Crypto
  • Exclusive
  • Daily Shows

  • 2+2=5
  • Take it Easy
  • Red Alert
  • Formula Guru
  • Money Gyan
  • Money Central
  • Jhatpat
  • Money time
  • Weekly Shows

  • Money Comics
  • Economicom
  • Realty Check
  • Smile and pay
  • Money Tales
  • Companynama
  • Spend Wise
  • Follow us

  • FaceBook
  • Twitter
  • Youtube
  • Instagram
  • Linkedin
  • Download App

  • Andorid
  • ios
  • Contact Us
  • About Us
  • Advertise With Us
  • Privacy & Cookies Notice
  • Complaint Redressal
  • Copyright © 2022 Money9. All rights reserved.