Top sectors to invest in 2022.
- Telecom:- The telecom sector last month saw a huge rally, never quite seen before. The transitional phase of duo-poly, it almost feels like it has skipped that phase with the growing presence of VI as well as the Bharti Airtel’s firm consistency which Jio users are sadly missing out on. 2021 would be remembered as years of reforms for the telecom sector while 2022 is projected to be seen as an reformationist year for the industry. With 5G spectrum auction at bay and VI, Airtel as well as Jio experimenting with the same. All of the operators have conducted tests on 5G connectivity in various cities as operators like VI have conducted tests in rural places. Technically speaking, Bharti airtel might hit anything between 6-7%. It was in a short consolidation state followed by a small breakout which is one of the higher purchase orders in nearly 2 months. It is also said that RBI has categorised Airtel Payments Bank as a scheduled bank and it’s pact with Hugh will further strengthen it’s XStream connectivity. As for reliance, the year doesn’t necessarily look promising until and unless they pull off 5G, which frankly they’re the most likely to be it their alleged connections in the government or the large reach and market capitalisation. But from a user point of view jio’s performance has been rather underwhelming due to an over-expansive user base. However, Reliance has been too focused at repairing the company’s financial as well as other industrial aspects like 5G, RIL-Aramco deal, deleveraging etc that it had been overlooking it’s telecom performance for a while now. And with Tariff hikes at 20%, it is safe to say JIO is playing a big bet on 5G . And with the last and the smallest contender VI, which is growing at a faster rate than two of them but is miles behind both in all parameters. Although VI’s future is seemingly unguaranteed it is trying to attract users the jio way of providing them with unlimited free internet from 12:00 am to 6:00 am. Some analysts are concerned that investors may have priced into VI with too much optimism and now execution on market’s expectations is likely to drive gains in the stock. Any failure to deliver, on the other hand, would result in deep cuts. As for it’s technicals it looks like VI is going to consolidate or even dip a bit after it’s push, as for it’s rush. It is highly likely that it will be hitting somewhere about 20% around the mid-year. Telecom companies like Tata teleservices, MTNL, Rcom have also been giving market driven high returns but for how long no one knows. With the TTML being the likely one, swingers might stay in and MTNL is already falling apart. Bharati airtel to be the best buy among the telecom sector contenders as for now.
- Real Estate:- It is seen that october, 2021 saw a huge rally from 6 years of consolidation in the real estate sector. They have also been seeing a bit of recovery from it’s rally however there is a likelihood the industry as a whole might rally up again. Although the realty sector couldn’t grow as much as the infra sector due to the fact that realty sector companies get overshadowed by the index funds. However Oberoi, which leads the nifty realty saw a huge rally but also a significant consolidation. This sector looks very promising with companies like ibulls and brigade ent as well as oberoi. The whole rally can be said to have been driven by a recovery in real estate demand and the positive outlook towards the real estate sector on the back of government support like lower interest rates, tax relaxation for first-time buyers under PMAY and stamp duty cut. Real estate witnessed a blessing in disguise in 2020 as the consumer perception changed and home-buying became a priority. The pandemic and lockdown was a silver lining for the real estate sector, given it is a safe-haven and tangible asset at the time of crisis. This led to increased investment and home-buying in the last two years.
- IT sector- The IT sector is another one of those sectors where the momentum in last months have been phenomenal with the sector as a whole rallying at a meaned average upto 20% . Not only Indian IT sector but IT sector globally has been rallying very consistently with the mid and large caps leading the charts. The NIFTY IT index too has been seeing a huge rally and is expected to trade as well be invested.