The stock market of any country is a crucial indicator of its economic conditions and the impact of its government policies on businesses functioning in it. And thus, if you are involved in stock market investment, it becomes highly imperative for you to know which sectors of the economy are expected to boom soon so that you can also take leverage of the same and appreciate your portfolio’s value. This article brings to you the top 5 sectors in which you can consider putting your money in 2022.
Top 5 Sectors to Invest in 2022
Following are the top 5 sectors that we have identified for you for online investing and trading in 2022 –
- Automobiles
As it tries to get back to its regular sales volume, the experts are optimistic about the Indian auto industry in 2022. This is because it built a strong base in 2021, despite the pandemic, which adversely affected its production due to a lack of semiconductors. Also, the government strongly backs the sector with policies like the FAME-II scheme and the production-linked incentive (PLI) scheme. In this segment, you can consider investing in Tata Motors, which has given its investors a 3-year return of 33.01%. The current Tata Motors Share Price is INR 416 (as of July, 2022).
- Chemicals
In FY22, small and medium-sized businesses in the domestic chemicals industry are expected to show revenue growth of 18–23%. India is responsible for about 16% of the world’s dyestuffs and dye intermediates. Moreover, India is the 4th largest country globally that makes agrochemicals. In this segment, you can invest in Pidilite Industries, which has provided its investors with a 3-year return of 21.79%. The current Pidilite Industries Share Price is 2,098 (as of July, 2022).
- Steel
In October 2021, India made 9.8 Million Tonne of crude steel, becoming the second-largest producer in the world. In FY22, India is expected to increase its crude steel production by 18%, to 120 Million Tonnes. The Indian steel industry has grown due to the high availability of iron ore and other raw materials in the country and the low cost of labor in the industry. In this segment, you can consider the Tata Steel share in this segment, which features a 3-year return of 29.32%. The current Tata Steel Share Price is INR 881 (as of July, 2022).
- Power and Energy
In India, the private sector provides 48.5 percent of the country’s thermal power, while the States provide 26.7 percent, and the Centre provides 24.9 percent. The goal for conventional sources of electricity production for 2021-22 was set at 1356 Billion Units, which is about 9.83 percent more than last year’s production of 1234.608 Billion Units. In this sector, Adani Green Energy can be a good pick, showing a 3-year return of 271.22%. The current Adani Green Energy Share Price is INR 1,901 (as of July, 2022).
- Healthcare
The COVID-19 pandemic made the last two years very hard for the healthcare industry, but the industry gave it a good fight, be it via vaccines or timely care. According to Deloitte’s Future of Healthcare Report, over 80% of healthcare systems aim to invest more in digital technology over the next five years. Invest India’s research shows that by 2022, India’s healthcare business will be worth $372 Billion. Max Healthcare has offered a 1-year return of 61.14% to its investors in this category. The current Max Healthcare Share Price stands at INR 368 (as of July, 2022).
Conclusion
The sectors mentioned above are considered the top 5 sectors to invest in 2022 for both short-term and long-term. However, we suggest you do your research and put your money according to your investment preferences and risk profile.
