Markets May Spring More Surprises Yet!
For every session the market gains ground, I get feelers from investors about how they are expecting a correction. In hindsight, it is this fear of a steep correction that is making several investors miss an opportunity to build a portfolio for 2022. In my personal opinion, 2022 may not turn out to be as bad as a majority of the investors seem to assume or speculate. In fact, the market triggers are very much in place and we may see a decent 2022 with healthy participation from the broader markets and foreign investors.
The next few weeks will be extremely crucial and volatile as the market awaits the biggest event of the year, namely, the Union Budget. The budget is always a tricky event and tends to sway the market abnormally in the short term. It is important for investors to stand ground on high conviction portfolio stocks and not give into superfluous short-term ideas that get floated as a reaction to the budget. As for this issue of DSIJ, it features a special section on ‘Best Business Schools in India 2022’. It carries interviews of industry veterans and has insights from some of the top educationists in India.
I am sure that MBA aspirants will immensely benefit from the perspectives shared by some of these leading academicians with their very wide experience of both the industry and the academia. Meanwhile, in our cover story we have studied and highlighted how the high-tech and innovative companies with their novel business models often escape the traditional valuation parameters. This will provide an insight to all those investors who are baffled as to how one should evaluate investing opportunities in the newly listed innovative companies.
In our other special story, we have provided yet another interesting perspective on how companies stand to benefit from the disruptive nature of technology. As I write this, the Sensex is trading comfortably above 60,000 and the Nifty above the 18,000 levels. It is a perfect start for 2022. The momentum may shift a little bit towards safer bets; however, it looks like yet another year where investors will be rewarded for their conviction and patience. It is important to focus on emerging themes such as renewable energy, exports, electric vehicles, semiconductors and bio diesel fuels. There are several stocks available in these trending sectors, trading at attractive valuations and waiting to be picked up.
IT stocks are also expected to deliver decent earnings this quarter and ahead. I must emphasise that it would make sense to be overweight on IT for 2022. Budget contours will also be important for the markets. The liquidity situation is improving and we can expect FPIs to participate positively in 2022 as compared to 2021. The pandemic situation is also priced in. So, track the earnings closely. At DSIJ we are bullish on the market prospects for 2022 and we have every intention to churn the best of the best investment ideas that deliver good returns. Happy investing!
RAJESH V PADODE
Managing Director & Editor