Outlook 2022; Words of Wisdom from Basant Maheshwari
Nifty gained over 20% in 2021 to post best year since 2017 as it rallied 6th year in a row. Nifty Bank gained over 10% and underperformed 2nd year in a row. Nifty Midcap rallied over 45% to post best year since 2017. Nifty Smallcap rallied almost 60% to post the best year since 2009. All sector indices rallied at least 10% each in 2021.
To discuss about what 2022 holds for Indian Equity Markets, we spoke to Basant Maheshwari, Author & Portfolio Manager at Basant Maheshwari Wealth Advisers LLP. Mr Maheshwari started off by saying that it is easy to leave the market assuming the market with fall but difficult to time the market to re-enter. He added on to say that it is hard to imagine that bank stocks will go up when interest rates are hiked; especially when that didn’t happen during the low-interest rate regime
He said prefer metals as they have been sideways for a while and bullish on autos as well. Stocks that do well in a turn from bearish phase to bullish phase may be the stocks that will take a severe beating rather than sector leaders.
He also said that companies like Zomato may face a problem if markets fall as fundraising may become an issue. RIL may do better post the telecom tariff hikes; Not adding Tata Motors at the current price.