Expect 2022 to be volatile for stocks; Bullish on electric vehicle-focused auto auxiliaries: Emkay Global

Krishna Kumar Karwa, Managing Director of Emkay Global, expects 2022 to be a difficult and volatile year for stocks. He explained that a reasonable return of 12-15% can be expected over the next 12-18 months.

He said: “From a return standpoint, investors who have very reasonable return expectations on the back of a really great return that they have seen over the past two years, they will not be disappointed. So returns of around 12-15% over the next 12-18 months are what general expectations should be. “

When it comes to automobiles, Karwa expects passenger vehicles (PV) and automotive accessories focused on electric vehicles (EVs) to do well. Passenger vehicles and commercial vehicles (CVs) could see a slight cyclical increase, he said.

“The passenger and utility vehicle industry has been underperforming for almost five years and a slight cyclical uptick is likely to occur in this industry,” he said.

Karwa believes that there is a marked increase in investment by private companies. He

is bullish on industrials on the capex front.

“There is a clear absorption when it comes to the investment spending cycle. We think industrials should do well, as far as the investment cycle is concerned, some stocks have gone up, but in a slightly longer term perspective, there would be a very good opportunity to invest in good companies. capitalization, ”he said. Noted.

Karwa cautioned investors against finances. He said that while investors are likely to see high returns in financials, they should be careful about over-ownership.

Watch the video for the full interview.

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