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Sector-wise performance of Nifty in Q1

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Nifty has gained 44% since March. That is “The Biggest Surge” Nifty has ever witnessed; I would like to term this “The haunted bull run” as we haven’t got to see a healthy correction in a while now. Even in this bull run, the evergreen energy sector seems to be still. We haven’t witnessed anything significant as of now compared to other industries.

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Pic: Bank Nifty on Daily Chart

The biggest reason for this massive gain was the banks and financial institutions. We all know that Banks and economic institutes, being the foundation of the economy, rightly; hold the maximum weightage (39.47%) in the benchmark Index. Whether it be the stimulus package or the loan moratorium, Banks were entrusted to deliver the benefits to the masses. Investors, as usual, we quick to identify this and rewarded banking stocks for the same. An equivalent rise of 43% is witnessed in the Bank Nifty.

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Pic: Bank Nifty on Daily Chart

The second-largest sector comprising the Nifty, i.e., the Energy sector, as usual, overperformed the Index. This sector is considered evergreen, due to the presence of Large Cap PSU (Maharatna’s). Petroleum giants like ONGC, IOC, GAIL, BPCL, and Monopoly power businesses like Powergrid and NTPC make this sector very attractive. Reliance Industries, a private entity here, is the actual reason for the massive 53% surge in this Index.

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IT sector holds a significant 13% share in the benchmark Index. IT companies were least effected due to pandemic as they had the ease of giving Work from Home opportunities to their employees. IT sector gained 57% since March, and I hope it moves further.

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Pic: Nifty FMCG

The Fast-moving Consumer Goods section was not dented by the pandemic as it is under essential services. This sector is seen Underperforming the Index in terms of gains at 37%. But overall, it has provided the necessary support whenever our beloved Nifty needed it.

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Pic: Nifty FMCG

The lighted weighted Auto and also gave positive returns in the same period. The auto sector ran 62% despite negligible sales in Q1. The run is yet to continue as the festive season in our country is about to begin.

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Finally, The Top performer. Yes! You guessed it right. Pharma. The only business which was and is under focus since pandemic was declared. Pharma companies. A massive gain of 65% is enough to tell the story.

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Pic: Nifty Pharma on Daily charts 

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