Top sectors to look at in 2022
Friday, May 20, 2022
The previous year 2021, was very bullish for a lot of companies, startups and companies that chose to go down the path of IPO. Investors made a lot of money too, some lost too depending upon the market cycles. Last year there were few sectors that performed way better than the rest and this year the picture seems to be the same. So, let’s have a look at few of the sectors which are on their way to come out as top performing in 2022.
Automobile
With Indian market heading towards a much-awaited EV shift and government coming up with favorable policies, such as the FAME-II scheme, the enhancement of incentives for two-wheelers, and the launch of the production-linked incentive (PLI) scheme sector and PLI for advanced chemistry cell, worth INR 26,000 crore and INR 18,000 crore, respectively. This backing will not only help the sector to stand up to its pre-pandemic era but also provide enormous support to the sector as it adopts advanced technologies. The citizens have already shown interest in two-wheeler EV space and 2022 will be an exciting year to see how things will unfold with so many electric component manufacturers also diversifying as an EV manufacturer.
Textile
The textiles sector in India enjoys competitive advantages in terms of availability of raw material, skilled manpower and comparative advantages in terms of cost of production.
The prospects for growth in the sector are also good with the Indian Textile and apparel industry to grow to $190 billion by Fy26. The industry size is estimated to be around $75 - $80 billion today.A CRISIL analysis also says that the Textile firms are set to spin their way to recovery in 2022. Furthermore, Government initiatives such as the Production Linked Incentive Plan, the establishment of mega textile parks, and the extension of the Rebate of State and Central Taxes and Levies scheme are also helping the sector.
Metals
The overall metals sector is still valued comfortably compared to where the standalone commodity prices are at. Market trends in the commodity space usually stay for several years, the infrastructure spend in the country will also contribute towards demand growth for industrial metals. With so many large infrastructure projects ongoing, a robust steel industry is the need of the hours. For this the government has made many efforts by bringing in digitization into mining as well as trying to adopt more efficient and environment friendly means, expanding the capabilities of domestic steel plants, enabling supply through phrased best-in-class greenfield and brownfield capacity addition, and setting up value adding coast-based steel clusters for logistical transformation. With a strong GDP growth predicted for India, the steel industry will play a huge role in achieving these targets.
The sector list to be looked upon is quite extensive and it might not be feasible for an investor to keep track of everything that happens and that’s where fund managers such as us come into the picture. Start your investment journey with India’s best performing portfolio management service house and reap your rewards from the Indian growth story.
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