homemarket NewsExpect 2022 to be volatile for equities; bullish on auto ancillaries focused on EVs: Emkay Global
Expect 2022 to be volatile for equities; bullish on auto ancillaries focused on EVs: Emkay Global
Emkay Global expects 2022 to be a challenging and volatile year for equities, Krishna Kumar Karwa, managing director, told CNBC-TV18. Karwa mentioned that passenger vehicles (PVs) and auto ancillaries focused on electric vehicles (EVs) are likely to do well.
Krishna Kumar Karwa, managing director, Emkay Global, expects 2022 to be a challenging and volatile year for equities. He explained that a reasonable return of 12-15 percent can be expected over the next 12-18 months.
He said, “From a return perspective, investors who have very reasonable return expectations on the back of very excellent return that they have seen in the last two years, they will not be disappointed. So returns of around 12 to 15 percent over the next 12 to 18 months is what the broad expectations should be.”
On autos, Karwa expects passenger vehicles (PVs) and auto ancillaries focused on electric vehicles (EVs) to do well. According to him, both passenger vehicles and commercial vehicles (CVs) could see a cyclical uptick.
"The passenger vehicle and commercial vehicle sector has been underperforming for almost five years and a cyclical uptick should possibly be on in that sector," he said.
Karwa believes there is a distinct uptick in capex of private companies. He
is bullish on industrials on the capex front.
“There is a distinct uptake as far as the capex cycle is concerned. We believe that industrials should do well, as far as the capex cycle is concerned, some of the stocks have run up, but from a slightly longer term perspective, there would be a very good opportunity to invest in the cap good companies,” he noted.
Karwa cautioned investors about financials. He said that even though investors are likely to see strong returns in financials but they must be cautious of over-ownership.
Watch the video for the full interview.
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