Tech, Bank inscriptions are among India’s top stock picks for 2022

Tech, Bank inscriptions are among India's top stock picks for 2022

Despite some concerns about lofty valuations and a gradual unwinding of easy-money policies, India’s benchmark is among those leading gains in Asia so far in 2022 with an advance of more than 4%.

The sustained boom in worldwide tech spending, a recovery of local housing demand and a bounce back in bank profit are relied upon to be among the key drivers of gains for India’s stock market this year. Analysts stay bullish, projecting an ascent of around 15% for the NSE Nifty 50 Index throughout the next 12 months, as indicated by sell-side appraisals accumulated by Bloomberg. That is on top of the gauge’s 138% convention from its March 2020 low, the best performance among the world’s significant value markets for this period.

Technology

A gauge of the nation’s top 10 software providers has more than tripled from its pandemic low, as the crisis spurred transformation of the way the world does business. While India’s leading IT companies are grappling with rising wages and higher attrition levels amid demand for talent, analysts say strong demand for new technology will continue.

“Digitization has meant that Indian IT companies are growing at the fastest pace seen over the last decade,” Santosh Kumar Singh, head of research at Motilal Oswal Asset Management Co., wrote in a note. “This theme may remain one of the predominant ones.”

Pandemic Blows Up Old Business Habits, Opening Path to a Boom

Top picks include Tech Mahindra Ltd., Infosys Ltd., Tata Consultancy Services Ltd. and HCL Technologies Ltd.

Banks

Following a multi-year credit crisis exacerbated by the Covid-19 economic hit, analysts expect the worst has passed for lenders’ asset quality and loans. “Banks have focused on balance sheet strengthening,” steadily building up their provisions, Pankaj Pandey, head of research at ICICI Direct, wrote in a note. “The retail segment has been the key driver of credit offtake and will continue to remain so, coupled with agriculture and the micro, small and medium enterprise segment.”

Top picks include State Bank of India, ICICI Bank Ltd. and Axis Bank Ltd. Real Estate

The pandemic triggered a correction in property prices in India even as the work-from-home trend helped boost demand for house ownership. Strict lockdowns pushed out small and marginal players, and expanded the market for strong developers. “Housing affordability today is at the best levels we’ve seen in the last 20 years and broadly, we are seeing job creation in the economy supporting that thesis nicely,” Mahesh Nandurkar, head of research at Jefferies India Pvt., told Bloomberg Television last week. “We are in for a housing-driven economic supercycle over the next five years.”

Top picks include Godrej Properties Ltd., Oberoi Realty Ltd., Sunteck Realty Ltd., Phoenix Mills Ltd. and Prestige Estates Projects Ltd. Pharmaceuticals

The health-care sector is expected to remain in focus as the world continues to deal with the coronavirus. “Beyond the pandemic, we expect an improvement in core businesses, driven by better execution on product approvals and regulatory clearances particularly from the U.S. FDA,” Saion Mukherjee and Neelotpal Sahu, analysts at Nomura Financial Advisory and Securities (India) Pvt., wrote in a note.

Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
Employees at a French window manufacturer trade privileges for a pay rise to keep up with inflation
Employees at a French window manufacturer trade privileges for a pay rise to keep up with inflation
Last September the firm reached agreement with its staff representatives to change its pay structure and introduce a tax-free monthly bonus instead of ...
To increase exclusivity, Chanel may further restrict the purchase
To increase exclusivity, Chanel may further restrict the purchase
Blondiaux said the limits, which would not be imposed globally, were aimed at protecting customers and curbing bulk buying. Analysts say Chanel wants to make ...
Tiger Logistics' digital platform promises to modernize transport logistics
Tiger Logistics’ digital platform promises to modernize transport logistics
Commenting on this digital initiative, Harpreet Singh Malhotra, CMD, Tiger Logistics and a veteran in the shipping industry said, “Technology is the ...
iPhone users claim an iOS bug is shutting down FaceTime and iMessages
iPhone users claim an iOS bug is shutting down FaceTime and iMessages
Although the teaser doesn’t name a specific phone, it’s most likely that this is the flagship Motorola Frontier, which has been subject to the rumor mill ...
The phone lines at St.  Luke's have been fixed
The phone lines at St. Luke’s have been fixed
The issue was credited to underground phone line problems, St. Luke’s said. The main hospital campus in Duluth and the Hillside Center were affected. ...
All Apple Devices Should Get Expected iPhone selfie camera improvement
All Apple Devices Should Get Expected iPhone selfie camera improvement
Sure, there’s no guarantee that using a costlier component translates to the iPhone 14’s selfie camera being otherworldly. But combining Apple’s camera ...
Matchmove acquires Shopmatic for $200 million in corporate finance
Matchmove acquires Shopmatic for $200 million in corporate finance
According to a joint statement, the combined entity, which will operate as the MatchMove group, will aim for $400 million in revenue and four million ...
The dollar took a hit in recent weeks, and Lagarde boosted the euro
The dollar took a hit in recent weeks, and Lagarde boosted the euro
“Many observers will continue to consider the ECB as being too hesitant, but the fact that a lift-off is now very likely to happen in July and that the ECB ...
On Android, Chrome will delete Discover feed
On Android, Chrome will delete Discover feed
Today, it is possible to deactivate this menu by pressing the small cogwheel. If the tabs no longer appear, the menu is still displayed. Google will give the ...
When buying a work laptop, keep these four things in mind
When buying a work laptop, keep these four things in mind
If your work requires a lot of time spent in high-performing video editing and animation suites, prioritising a device with a high-quality CPU, GPU, and RAM ...
Show next
We will be happy to hear your thoughts

Leave a reply

Compsmag - Latest News In Tech and Business
Logo