Paathshala 2022: Anil Singhvi highlights lessons for investors to learn, relearn and unlearn from market movement in 2022

Paathshala 2022: In a special segment aired on Zee Business today, Managing Editor and market guru Anil Singhvi gives his assessment of 2022 with regards to movement in equity markets. He outlines his key takeaways explaining what investors must learn, relearn and unlearn from markets this year. 

Unlearning

Among things to unlearn not just from Indian markets but those across the globe, Singhvi said that investors need to unlearn the definition of recession. Earlier recession created chaos and anger against the government, but this was not the case, this year despite an year laden with layoffs. He said that recession was just a number, and one must not pay too much heed.

Another lesson to unlearn is that interest rate hikes undertaken by Central Banks is followed by recession. Despite interest rates at 15-year highs, stock markets are flourishing, the market guru said. While there has been some impact, it is not significant, he added. Recession has affected but not at the level it used to. 

Sell equity if dollar gets stronger is another lesson to unlearn, Singhvi said. This year, the investors did not sell. In fact, the Indian market touched life highs.

Another lesson to unlearn is that rising crude oil prices is bad for Indian markets. In 2022, even though there was fluctuation in crude oil prices Indian indices still outperformed. 

Next thing to unlearn is that Indian markets will ape US markets which is if they fall, Indian markets will follow suit with same intensity. This year even though the international markets were hit, Indian stock market still outperformed. 

Earlier it was thought that if Foreign Institutional investors (FII) sell, domestic markets will underperform. Another point to unlearn. Indian retail investors have turned this theory on its head. Domestic investors held the markets despite heavy selling by Foreign Institutional Investors (FII). In fact, buying or selling by FIIs did not have a material impact on local markets.   

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New Learnings

The biggest learning of 2022 is that liquidity is the most important thing and solution for all problems. Indian markets sustained momentum on the liquidity infused by retail investors, FIIs, High Net Individuals (HNI) etc. 

Corporate action: Singhvi said that demerger was not the only way for unlocking value. He said that demerger news did not affect the stock of a company this year as it used to be, in the past. Changes in management, even if it was top management changes in companies did not have a material impact as is generally made out by industry watchers.   

Relearning

Change will happen in the market, but investors need to stay invested even during tough times. This is the biggest relearning of this year, the Managing Editor said. 

Finally, stay invested for long term in good schemes to yield good returns. 

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