Sectors to keep an eye on in 2022: Fintech, Automobile, Real Estate, Technology, Pharmaceuticals

Read about the best financial investment options to consider in 2022.

5 Sectors to keep an eye on in 2022

The past year saw the stock market ending in the black, which brought immense joy to investors on the last day of 2021. Now, 2022 seems more promising than ever. Several experts are predicting that the Indian stock market will grow and take over the fifth spot globally in market capitalisation.

The financial market is set to boom and is supported by various factors such as government policies, international affairs, market conditions, and so on. This new year has brought forth a fresh list of sectors that looks set to perform well in the months to come. So, here are the best investment options to consider in 2022. 

Fintech

There had been a remarkable spurt in the fintech segment even before the pandemic hit the country, with its adoption doubling every two years. With the world facing a crisis, fintech became a critical aspect for all organisations to stay afloat during turbulent times. Advanced technology along with the demand for financial market fluidity facilitated the rapid adoption of fintech solutions. While 2020 and 2021 were years of fintech acceptance, 2022 and beyond will be years of innovation and revolution. If you are looking for long term investment stocks, it makes sense to look at fintech.

Related: 5 Best Performing Stock Market Sectors In 2021

Automobile

The Indian automobile sector has entered the new year with a bullish outlook to reclaim the sales volume seen before the pandemic. It is going to prove the most profitable sector in India this year. The sector also has strong backing from the government in the form of favourable policies such as the launch of the production-linked incentive (PLI) scheme, incentives for two-wheelers, incentives for electric vehicles, and the FAME-II scheme. This strong backing will surely help the sector bounce back to where it was during the pre-pandemic era. 

Real estate

If you have been wondering which sector will boom in 2022, you can’t go wrong with investing in stocks of real estate companies. The pandemic prompted a correction in property prices in India, thanks to work-from-home taking over. Strict lockdowns further expanded the market for strong players. Housing affordability is currently at the best levels noted in the last 20 years. Top picks in the segment include Prestige Estates Projects Ltd., Phoenix Mills Ltd., Sunteck Realty Ltd., Oberoi Realty Ltd., and Godrej Properties Ltd. 

Also Read: How To Invest In Stocks Like A Pro

Technology

India’s leading IT companies are grappling with higher attrition levels and rising wages amid the demand for talent. There is a strong demand for new technology and this trend is going to continue in the years to come. Digitisation has also meant that IT companies would be growing at the fastest pace seen over the last decade. The most profitable industries in India under this segment include HCL Technologies Ltd., Tata Consultancy Services Ltd., Infosys Ltd., and Tech Mahindra Ltd. 

Pharmaceuticals

The health sector is expected to remain in focus this year as well, as the world continues to battle newer strains of COVID-19. After the pandemic recedes, we can expect an improvement in core businesses driven by regulatory clearances and product approvals. Top picks in this market segment for the long term include Gland Pharma Ltd., Max Healthcare Institute Ltd, Ipca Laboratories Ltd., and Sun Pharmaceutical Industries Ltd. 

Related: 4 Sectors To Add To Your Stock Portfolio In 2022

Last Words

Devising an investment plan for the year and are looking for the best shares to invest in? You can’t go wrong if you follow some key investment tips and choose from the leaders in the various segments mentioned in this article.

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or tax or legal advice. You should separately obtain independent advice when making decisions in these areas.

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