Infosys, Tata Motors and Tech Mahindra are some of the major stocks in the information technology sector likely to be big beneficiaries of India’s government spending this year.
But what other investments are likely to see huge gains in 2022?
First, note this:
The government’s move to tax cryptocurrencies was also a key highlight this week, with many industry experts opining that this could be the start of an eventual regulation of cryptocurrencies and not a blanket ban.
Given the outlook, here's what investors could be looking at this year.
Gari Network (GARI)
We pick Gari Network (GARI), a token that powers India’s largest social media app Chingari, ahead of mainstream companies for the simple reason that this new crypto token is attracting massive interest in India.
With over 32 million users, Chingari has become one of the fastest-growing crypto-centric projects in India. This month, the app will integrate the GARI token and see creators and influencers monetize content, including through nonfungible tokens (NFTs)
GARI price jumped more than 100% this past week and could spike further as more people begin to use and benefit from the app.
Infosys is one of the largest IT companies in the world, with the Indian company’s revenue of $786 million in Q3 signaling a 12% jump amid increased investment.
The company expects revenue for the fiscal year ending March to jump 20% versus analyst estimates of 17%.
Infosys shares fell over 6% in January, but are expected to rise as infrastructural developments in the sector increase in 2022.
Mumbai-based Indian automaker Tata Motors shares are up nearly 54% over the past year and 5% this past trading week to rank as one of the top tech stocks in India.
The move towards electric vehicle production as governments seeks to promote zero-emission projects is one likely to aid the company’s growth in 2022. While it lags major EV giants like Tesla, Tata Motors enjoys the tag of being a local company in a growing EV market in India.
Tech Mahindra is another tech stock to watch in 2022. Though last month’s tech sell-off did not spare it with an 18% drawdown, the stock remains one of the best performers over the past year.
A return of over 53% in the past year means investors were significantly up compared to the 22% gained across the Nifty50 index.
WazirX is a top Indian cryptocurrency exchange that could be one of the beneficiaries of the government’s recent move to “recognise” cryptocurrencies.
After several years of uncertainty around the business, the company has seen a surge in customers. India is one of the countries with the largest number of crypto holders and traders, which means the 9 million+ users is a small number that could soon spike.
The exchange’s token WRX is up 17% in the past week and more than 780% this past year.