IGI Logo

Perspective Year ender quote for stock market by Mr Mohit Ralhan, CEO, TIW Capital

“Although Nifty has increased just by about 3% in 2022, it did relatively better, given the challenges faced by major economies around the world. S&P 500 index declined by about 20% in 2022. Adjusting for INR depreciation, i.e., in US dollar terms, Nifty has shown a decline of about 7% in comparison. Nifty also did significantly better in the second half, after touching a low of 15,183 in June. It is likely to close the year at above 18,000, giving a thump up to the efforts of RBI and the government in fighting inflation along with keeping economic growth on track. Banks did significantly well in comparison to other sectors and especially the PSU banks in the second half of the year. The performance of banks reflects the strength of the broader economy, and it augurs well for 2023. FMCG, Metal and Auto were other sectors that created wealth for investors. While FMCG and metal provide a good defence in an inflationary environment, the auto sector in India can be a good long-term bet, with an impending transition to electric vehicles. Indian IT sector lagged the market, and it may remain under stress given the uncertainties in the US market. It also indicates that domestic market-driven companies are likely to continue doing better in 2023, especially in the first half of 2023. In the first half of 2023, investors may look to ride the momentum of banks, auto and FMCG sectors. Then, as global economy and especially USA start showing signs of stable recovery, investors may look at Indian IT and pharmaceutical stocks. The chemicals sector in India also appears to be a good long-term investment. Overall, Indian stocks are likely to continue performing better in comparison to other major economies and expected to give 10%-15% return in 2023.”

Above views are of the author and not of the website kindly read disclaimer