Indian Share Market Outlook for 2022

Indian Share Market provided good returns in the last year, 2021 after COVID-19 fear. Nifty delivered more than 22% returns in the previous year, 2021, but if we see according to the Shares than most of the companies delivered more than 100% returns in this year. The main reason behind this bull run is liquidity in the Indian Market. If you wanted to know more about the Indian Share Market Outlook for 2022, then read the complete article below.

Outlook on Indian Share Market for 2022

In the last year (2021), so many retail inventors have entered the share market. They increase the fellow of the liquidy. The sharp jump in the new Demat confirmed that data. We have seen more than a 100% increase in the Demat account in 2021. Every month more than 26 Lakh Demat accounts have opened in 2021.

But new investors are not aware of the volatility of the market. If we see history then we have found that volatility is part of every share market. Every time market consolidates after a big bull run. So the year 2022 will not deliver the same returns as investors generated in 2021.

Development affect the Indian Share Market growth in 2022

Liquidity in the Indian Share Market

Liquidity plays a big role in every country’s share market. As we have seen Foreign investors selling in the last 6 months, they have sold more than 100,000 crores share in the last 6 months. But Indian retail investors have offset this massive selling.

Now many experts said that the market again start a bull run when FI’s again started buying in the market. They derive the nifty and nifty touch 22,000 in this year. Now one question is coming to our mind (1) Why foreign investors have sold a big share of their holding if everyone sees this kind of growth in the Indian share market.

When I study the last 5 years’ data, then I have found that every year in December month FI’s sold or book profits on the maximum holding. So the FI’s selling in the last 6 months is the routine process of their investing.

So, if FI’s again start investing then we will see a good jump in Indian Share Market. But no one confirms the reason behind the FI’s selling. So the fellow of the FI’s is not confirmed. So, I advise investors or traders to invest money after checking the fundamentals of the company.

Election Result impact in The Indian Share Market

Indian Politics play a major role in the Indian Share Market trend. As we know, this year there is a CM election in 5 states, which decides the trend of the Indian share market. Mainly the UP election decides the trend of the market because UP plays a very important role in State and Central politics.

International Development impacting the Indian Share Market

This year we can also see some major international development, these also decide the market trend, like, Interest rates of FAD, Inflation in the Global Economy.

Local Development impact on the Indian Share Market

Nifty and Sensex also focus on some important local development, like Budget, local government policy for EV, Crypto, Commercial Viechle, etc.

My Opinion on the Market for 2022

After reading the above facts we expect 2022 the volatile year for the share market. So as per my opinion investor and traders need to play stock-wise and sector-wise and pick stock after a deep study because 2022 is not delivered a simple return to the investors.

According to our opinion IT, Banking and Auto sector deliver good returns in 2022. So, the best pick for these sectors is HCLTech, Infy, Bank of Baroda, SBI, Ashok Leyland, Heromotocop, Maruti.

Also, share your opinion in the comment…