There is a good chance for the banking sector to outpace the broader indices in 2022, given that investors are looking to place their bets on value stocks in an inflation-driven macro-environment.
Further, the possibility of multiple interest rate hikes in 2022 should act as a tailwind for banking companies and improve their bottom lines going forward. Alternatively, higher interest rates might also result in tepid demand across verticals including mortgages, automobiles, and others.
