JANUARY 20238PANORAMABEST PERFORMING MANUFACTURING INDUSTRIES OF 2022Manufacturing companies have outperformed in the stock market in 2022, compared to their counterparts from other industries. Manufacturing industries which have spearheaded this performance are FMCG, automotive, pharmaceuticals, metals, cement, and agrochemicals, as per a report by Business Standard. The performance of manufacturing companies from these sectors has led to an increase in their weighting in the benchmark index. Manufacturing companies from the aforementioned six sectors comprised 25.43 percent of the Nifty50 index, an increase of 88 basis points from what it was at the end of December 2021. Let us try to analyze the reasons why these sectors fared better than the rest and what the manufacturers in these fields are doing right to get ahead of the curve. In this article, we take a look at four of these sectors.Metal FabricationMetal fabrication industry has undergone a sea change over the past year. Fabricators have embraced automation to boost their cutting throughput like never before. Fueling the growth of this sector is the orientation of global manufacturing companies towards diversifying their production by establishing low-cost plants in India. The public infrastructure spending by Indian government has also given a fillip to the growth of metal industry.Going forward, the government intends to introduce the use of 'green steel' in government projects. "In order to promote the production of green steel in India, the government is considering mandating the use of 'green steel' in government projects and is also in discussion with steel manufacturing companies to dedicate a portion of their production to manufacture green steel", said Jyotiraditya
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