• S&P BSE Sensex index is up 3% so far in 2022, biggest gainer in world after measures in Singapore and Indonesia
• Adani's conglomerate led by Adani Power Ltd saw the value of at least two of its seven listed companies more than double this year as it benefited from a surge in power demand
India is set to rank among the best performing major stock markets globally this year, overcoming concerns about high interest rates and economic slowdown.
The S&P BSE Sensex index is up 3% so far in 2022, the biggest gain in the world after measures in Singapore and Indonesia. A solid round of earnings lifted key Indian benchmarks to record highs, making the market bigger than the UK. Meanwhile, the MSCI All Country World Index has fallen 20%.
This year's winners include shares linked to billionaire Gautam Adani and banks buoyed by a sharp recovery in credit demand. Some of the biggest losers were shares of technology firms that edged lower after their public debuts and software outsourcing providers that faced concerns over a possible drop in overseas demand.
However, the outlook is unclear. Goldman Sachs Group Inc. The market looks set to slow down in the next year amid high valuations due to its underperforming China and South Korea.
Slowing global growth could weigh on the country's economy in the near term, JPMorgan analyst Sanjay Mukim wrote in a note this month, even if its "structural promise" remains an important long-term attraction.
Here's a look at some of the most important stock moves of 2022:
Adani Firms
Adani's port-to-power group saw the value of at least two of the seven listed companies more than double this year, led by Adani Power Ltd, as it benefited from a jump in power demand. Flagship Adani Enterprises Ltd rallied 113% after becoming the second group firm to be included in the NSE Nifty 50 index. Group's joint venture consumer food business Adani Wilmar Ltd share price could add another 24% from current levels according to analysts' 12-month consensus price target. Investors have sold the group's shares of late amid heavy valuations.
bank recovery
The S&P BSE Bankex has gained 18% this year, driven by the successful resolution of sour loans to the sector, creation of a bad bank to offload troubled loans and a sharp recovery in credit demand. Uday Kotak, billionaire managing director of Kotak Mahindra Bank Ltd, called the rebound in banks a "Cinderella" moment. Still, according to Macquarie Capital analyst Suresh Ganapathy, a worsening gap between deposit and credit growth is noticeable. Analysts estimate that State Bank of India, the country's largest lender, is up 25% this year and could post gains of the same magnitude over the next 12 months.
ipo letdown
The disappointment sent fintech firm Paytm and online insurance marketplace Policybazaar down over 50% after their trading debuts by the end of 2021 followed by large initial public offerings this year. Firm Delhivery. Life Insurance Corporation of India, which has overtaken Paytm to become India's biggest IPO, has lost more than a quarter of its value since May.
software slowdown
Outsourcing providers were among the worst performers amid concerns of a possible recession in the US and Europe. Major companies - including Infosys Ltd and Tata Consultancy Services Ltd - slipped, pushing the sector gauge towards its worst year since 2008. Abhishek Kumar, analyst at JM Financial Institutional Securities, said large information technology services companies are bracing for a "long winter ahead". ,
cheap generic
Drug exporters such as Aurobindo Pharma Ltd and Divis Laboratories Ltd also took a hit as prices of generic drugs in the US fell. Sampath Reddy, chief investment officer at Bajaj Allianz Life Insurance Co, said drugmakers may focus on profitable complex generics in response to lower prices overseas.
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