Adani leads Indian stock market to be the best performer in the world in 2022
- ByStartupStory | December 26, 2022
India is on track to be one of the year’s best-performing major stock markets in the world, overcoming concerns about rising interest rates and an economic slowdown that have dogged peers.
The S&P BSE Sensex Index has gained 3% in 2022, the most in the world after Singapore and Indonesia. A strong run of earnings has pushed key Indian benchmarks to new highs, making the market larger than the UK. In the meantime, the MSCI All Country World Index has dropped 20%.
Shares linked to billionaire Gautam Adani and banks boosted by a sharp recovery in credit demand are among this year’s winners. Shares of technology firms that languished after their initial public offerings and software outsourcing providers that faced concerns about a potential slump in overseas demand were among the biggest losers.
Adani’s conglomerate saw at least two of seven listed companies more than double in value this year, led by Adani Power Ltd. as it benefited from a jump in demand for electricity.
Other remarkable stock moves of 2022 includes
Bank Recovery: The S&P BSE Bankex has surged 18% this year on the sector’s successful resolution of sour debt. Uday Kotak, the billionaire managing director of Kotak Mahindra Bank called it a “Cinderella moment”. Still, a worsening gap between deposit and credit growth is something to watch out for.
IPO letdown: Dismay followed by big IPOs led fintech companies Paytm and Policybazaar down to more than 50% this year after their trading debuts toward the end of 2021. Other decliners include Zomato, Nykaa and Delhivery. Life Insurance Corp. of India, has lost more than a quarter of its value since May following its flotation on the stock market.
Software Slump: Shares in India’s IT and outsourcing sector fell on Thursday, dragged down by concerns over a possible recession in the US and Europe. Infosys Ltd. and Tata Consultancy Services slid, pushing the sectoral gauge toward its worst year since 2008.
Cheaper Generics: Drugmakers may focus on profitable complex generics in response to lower prices abroad, analyst Sampath Reddy says. Drug exporters such as Aurobindo Pharma Ltd. and Divi’s Laboratories Ltd. also took a hit as generic drug prices plunged in the US.
Follow Startup Story
Related Posts
