Market Outlook 2022: It will be a year of consolidation; capital goods, financial sectors good bets for next year: Jyotivardhan Jaipuria of Valentis Advisors

In conversation with Zee Business Managing Editor Anil Singhvi, Jyotivardhan Jaipuria, Founder and Managing Director of Valentis Advisors, on Friday spoke in length about the market outlook for 2022, how the domestic market will trade going forward, expectations from the Union Budget 2022, the Omicron impact and more.  

The domestic equity market will see range-bound trading in 2022 and the year will also witness markets going through a consolidation phase post staggering returns yielded by it this year.

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He said the trend is expected to change for the better by the end of 2022. "Currently, stocks are trading at a higher valuation and we can expect a little correction on that front. We won't see much momentum in the market next year. The markets could trade in the range of 10 per cent on either side," said Jaipuria.  
Earnings can see pressure in the short-term, but I am bullish on companies' results in the longer run, he said.  

Talking about FIIs relentless selling, Valentis Advisors founder said, as an emerging market, India has outperformed other similar markets. "Currently, we have stretched valuation. In a run like this, usually, India has a PE of around 40 in the last 15-20 years. However, now it has increased to 55-60 this year as compared to other emerging markets. This has led FIIs to cut their stake to some extent in the Indian market," said Jaipuria.  

#MarketOutlook2022

2022 में कहां जाएगा निफ्टी?
पोर्टफोलियो में किस शेयर को करें शामिल?
2022 में किन सेक्टर में रहेगा एक्शन?
FIIs की बिकवाली का क्या है वजह?

ज्योतिवर्धन जयपुरिया से जानिए 2022 में कैसी रह सकती है बाजार की चाल? @AnilSinghvi_ | #ZeeBizNewYear pic.twitter.com/vX7w4oNmIs

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On expectations from the Budget 2022, the market expert said we can see a focus on themes related to growth. The fiscal deficit will increase and there will be a focus on capital expenditure.  

Three themes or sectors that will play out in India in 2022 are capital goods, cement, and financials. Besides, the real estate sector too looks like a good bet for the next year. " China plus one will be one important theme as the companies from across the world are looking for options to reduce manufacturing from China and India will too participate in it," said Managing Director of Valentis Advisors.  

He said the Omicron does not appear a big concern at the moment, but things could change if we started reporting more cases or discovering a new covid variant.