5 Themes for Investors to Watch Out for in 2022!

The new year 2022 is here. And with the new year, comes new opportunities. In the year 2021, Indian stock market investors witnessed blockbuster returns. The BSE benchmark index BSE Sensex 30 gave a return as high as 22% in 2021. On the other hand, Nifty 50 witnessed a return of over 24%. 

Here is a quick snapshot of the returns from different Nifty indexes (sector-wise) in the last 1 year:


(Source: Trade Brans Portal)

However, the above data just represents past returns. Investors should always focus on the future if they want to make the best out of the market. Here are a few of the top themes in the stock market in 2022, where investors should keep a close eye on. Keep reading to find out!

1) Artificial Intelligence 

Artificial Intelligence refers to the simulation of human intelligence by machines, especially computer systems. These allow tasks earlier required manpower to be performed in lesser time and with greater accuracy. The year 2022 may see massive progress in the AI industry in India. 

AI stocks are not only a great investment for the future but also could be a game-changer for the Indian economy. It is expected that AI has the potential to make up 15% of India’s current gross value in 2035 or $957 billion. A few top companies working on AI in the Indian stock market are Tata Elxsi (NS: TTEX ), Happiest Minds (NS: HAPP ), Oracle (NYSE: ORCL ), Affle India Ltd (NS: AFFL ), Kellton Tech Solutions Ltd (NS: KELL ), Persistent Systems (NS: PERS ), and Bosch (NS: BOSH ).


2) Electric Vehicles 

The Indian government has set an aim set of 100% electrification by 2030. This is a humungous target considering the early stages of adoption that we currently are in, and the early EV industry-involved companies are going to get the maximum benefit out of this revolution. 

Currently, the Indian Electric Vehicle industry, being in its nascent stages, does not have an established market leader in all vehicle types. There are 10+ major players existing in the 2 wheeler segment, 3–4 in Electric buses, and a few in car manufacturing. The following are the top Electric Vehicle (EV) Manufacturers in India Tata Motors (NS: TAMO ), Mahindra Electric, Hyundai, and Ashok Leyland (NS: ASOK ). 

Other top electric vehicle stocks that are involved in the EV industry are Amara Raja Batteries Ltd (NS: AMAR ), Exide Industries Ltd. (NS: EXID ), Tata Power Co. Ltd (NS: TTPW ), Hindalco Industries Ltd. (NS: HALC ), Hindustan Copper Limited (NS: HCPR ), Graphite India (NS: GRPH ), Tata Chemicals (NS: TTCH ), etc.

3) Green Energy

According to British Business Energy, India is ranked 3rd in terms of renewable energy investments and plans as of 2020. Today the country has 101.53 GW of capacity for renewable energy. This makes up 38% of the total installed power capacity. The installed power generation capacity has grown at a CAGR of 17.33% from FY16–20.

By 2030, the government aims to establish a renewable energy capacity of 523 GW. Out of this 60% will be supplied from solar and 14% from Hydro. And that’s why it may be a good time to start investing in the top green energy stocks in India. A few of the top companies working in the Green Energy industry in India are Tata Power, Adani (NS: APSE ) Green, JSW Energy (NS: JSWE ), Inox Wind Ltd (NS: INWN ), and Sterling and Wilson Solar Ltd (NS: STEN ). 

4) Internet of Things (IoT)

The Internet of Things refers to the billions of physical devices around the world that are now connected to the internet. It is how we describe the digitally connected universe of everyday physical devices. The IoT will revolutionize everything around us and will offer facilities like Smart Cities, Smart homes, Smart factories, and Connected vehicles everywhere.

The year 2022 may witness massive IoT development in India and it may be the time for the investors to start focussing on the companies that are based or working on IoT technology. A few of the top companies working on IoT theme in India are Bosch, ABB (NS: ABB ), Siemens (NS: SIEM ), Schneider Electric (PA: SCHN ), Honeywell (NASDAQ: HON ), Tata Elxsi Ltd (NS: TTEX ), Pricol Ltd (NS: PRCO ), and Minda Industries Ltd (NS: MNDA ). 

5) 5G Technology

The 5G technology is just around the corner and it will change the telecom industry. The leading telecom companies have already planned to roll out this technology and have already started conducting 5G trials across the country. It may be time for the investors to capitalize on this opportunity.

If you are planning to bet on the 5G Technology-based stocks in India, a few of the top pics can be Bharti Airtel Ltd. (NS: BRTI ), Reliance (NS: RELI ) Jio, Tech Mahindra (NS: TEML ), Tejas Networks Ltd (NS: TEJS ), and Sterlite Technologies. (NS: STTE )

That’s all for this article on the top themes for 2022. Although I’ve tried to cover all the top themes for investors to watch out for in the next year, it may be possible I've missed a few. Do comment below if I’ve missed any other noteworthy theme in the comment section below. Have a great day and happy investing.