Exclusive: From Budget 2022 to Market Outlook, Deven Choksey lists out expectations to Managing Editor Anil Singhvi – know which sectors expected to bloom

In an exclusive conversation with Zee Business Managing Editor Anil Singhvi, market veteran and KR Choksey Investment Managers Managing Director Deven Choksey listed out his expectations from Budget 2022 and touched upon the market outlook for 2022, while betting on these sectors. 

With tax collections in the last 9 months being splendid as estimated in FY22, Choksey believes, the government should not tinker with taxes in the Budget 2022. Adding further that larger focus would be on agriculture and infrastructure sectors.  

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He added, the government is expected add additional allocation to the farm sector with the three farm laws being repealed, as withdrawing of farm laws likely to impact farmers.  

Government may add significantly extra amount to boost farming economy, as a results of which new measures are expected reviving the sector, Choksey further said.  

Similarly, Infrastructure would have larger focus in Budget 2022, as both investor and consumer demand will grow with new projects in infra, the market analyst said, adding further that growth in infra sector would also help the banking sector as infra-led spending likely to increase.  

Market Outlook 2022 

The Indian market is expected to see both side movement in 2022, similarly, US Fed tapering may also impact the market, and every rally will invite some profit booking, while every fall in the market will encourage buying sentiment, KR Choksey Investment Managers MD said.  

“We may see a consolidation and range bound market in 2022, and investors may get opportunity as corporate sectors results are expected to be good. While the time of higher abnormal profits like last two years will rationalise in the calendar year,” Choksey added. 

Rising input commodities and demand scenarios being reaching to a level may also somehow impact the Indian indices, the market analyst further added.  

Market Themes in 2022 

Deven Choksey is quite confident and has a conviction on banking and financial sector in the year 2022. He added that the retail credit last year was good, while liabilities side of banks’ balance sheet has also been good.  

According to Choksey, the corporate credit has seen an uptick in the third quarter updates of many private and public sector banks, which is a good sign for overall banking and financial sector.  

As infra projects are expected announced, corporate credit will increase and it will eventually help the banking sector, as lending increases and liabilities reducing, the market analyst said.  

Similarly, as the semi-conductor chip shortage issue has been fading out, this will directly benefit auto and auto ancillary stocks to grow, the analyst said also adding that the auto companies have also been reporting good sales numbers and even CV section will do good amid scrappage policy.  

Other sectors such as pharma and chemical along with IT sector also looks lucrative as the former has scope with respect to API and contracting manufacturing growth once raw material cost stabilizes and the latter is expected to rise by 20 per cent compound annual growth rate in 2022.