Outlook 2022: Market likely to witness frequent bouts of sharp corrections but this tailwind is good for economy, says Sunil Singhania

In an exclusive conversation with Zee Business Managing Editor Anil Singhvi, Abakkus Asset Manager founder and ace investor Sunil Singhania talk about the market outlook for 2022, wherein discussed the factors impacting the market as well as how it would sustain the growth trajectory.  

Singhania says the market at present is neither expensive nor discounted as compared to the calendar year 2020 and 2021. General all the factors sync in and impact the economy and markets across the world, for example the new covid variant Omicron. 

He believes that the market would witness frequent bouts of sharp corrections but this tailwind is good eventually for the economy, and urged investors further to make friendship with volatility as the market in the current would witness the same. 

According to Singhania, volatility gives an opportunity to enter in fundamentally good stock at discount and also suggests focusing on fundamentals of stocks only then entering in it. 

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#MarketOutlook2022

इस साल घरेलू बाजार में FIIs की खरीदारी देखने को मिलेगी, फंडामेंटल को ध्यान में रखकर ही IPOs में पैसे लगाएं : सुनील सिंघानिया फाउंडर, एबेकस एसेट मैनेजर LLP

देखिए अनिल सिंघवी के साथ खास बातचीत...@AnilSinghvi_ | @SunilBSinghania pic.twitter.com/QscEt4N8Bh

— Zee Business (@ZeeBusiness) January 6, 2022

We believe even if the interest rates across the world is increased a little, they will still be low, as there is a bit of positiveness in the economy considering capital goods, which have good demand and many companies are in process of expanding their capacity, the celebrity investor said.  

Similarly, the demand scenario on consumption level is good, however there is setback due to Omicron, Abakkus Asset Manager said, adding further that sectors which were lacking since last 2-3 years such as metals and banking, we see tailwinds in them too. 

On domestic front, Singhania says, the triggers that would impact market, starts Budget 2022, which is scheduled to take place on February 1, followed by Assembly elections in few states, including Uttar Pradesh this year and the earnings of companies, which we see is good for this and next year. 

While on the international level, global reasons for market being weak is visible, Omicron in this would be a topic watching worthwhile, similarly, tightness would happen, as many central banks had infused liquidity and which is still more than discounted and the geo-political scenarios, he added.  

On FIIs dependency of Indian markets, Singhania points out domestic investment and investors have been able to under the sustainability as a key in the market, be it mutual funds to insurance the investment is happening and we gradually are becoming self-sufficient. 

On the selling spree of FIIs in December, the celebrity investor said, “China was underperforming, and India had outperformed, last quarter of 2021, many investors booked profit and tried bottom fishing China but it’s not being working.” 

He added, the atmosphere is being made in India, wherein funds will come back, and the foreign investments will be seen even in the secondary market. In FDI, record flows were witnessed in 2021 and the same will happen in the current year too.