The impact of the Covid-19 pandemic on economy wreaked havoc on stock markets around the world in March 2020. The pandemic scenario has not changed in more than sixteen months, but the stock markets are conveying a different tale. All of the major indices have reached new all-time highs.
Despite the fact that most sectors were negatively impacted, they have made a significant comeback. In the aftermath of the pandemic, some industries, such as IT and healthcare, outperformed others in 2020, while others underperformed.
Let’s take a look at the top-performing sectors so far in 2021:
In terms of recent outperformance, metal would be anyone’s first bet. The BSE Metal index has outpaced all other indexes since January 2021, gaining a stunning 79%. The index heavyweight Tata Steel, which has gained 120 percent since the start of the year, is a key contributor.Following Tata Steel, APL Apollo Tubes has increased by 104% from January 2021. Vedanta, JSW Steel, Hindalco, and SAIL, among the index’s other constituents, are up 80-93%. Coal India is the index’s lone loser, with a year-to-date (YTD) increase of only 6%. The success of metal stocks has been even more remarkable than the revival in markets since March 2020.
2. Information Technology
The information technology (IT) sector comes after metals. Since the beginning of the year, the BSE IT index has increased by 30%. Majesco (436%), Happiest Minds Technologies (324%), and Brightcom Group (318%) have surpassed others on a considerable basis among the index’s 51 constituents.Wipro has risen 54 percent among big IT stocks, while Mindtree has risen 69 percent. TCS and Infosys have increased their market capitalization by 32% and 13%, respectively.
3. Real Estate
On a year-to-date basis, the BSE realty index has risen by 28 %. Only one firm in the index, Mahindra Lifespace Developers, has doubled investors’ money, with a gain of 105 %. Indiabulls Real Estate (76 %), Sobha (76 %), and DLF (76 %) are among the other gainers (48% ).
- Housing demand is on the rise
- Interest rates that are lower
- Top organisations have produced excellent results
The Indian electricity sector has had a number of reformatory accomplishments over the years. India is currently the world’s fourth-largest energy user, with predicted growth between 2019 and 2040 accounting for a quarter of global power demand, the greatest in history.
One notable element of India’s energy sector is that the government has allowed 100 percent foreign direct investment (FDI) in the sector, allowing investors and private energy firms to enter with ease.
The healthcare industry, like last year, remains front and center, performing admirably in difficult times. Since January 2021, the BSE healthcare index has increased by 21%. The index consists of 70 equities, each of which has performed significantly better than the index. Hikal is the leading contributor, with a gain of 275%. Max Healthcare is in the second position, with a 102% increase.
Laurus Labs (99%), Shalby (94%), Poly Medicure (85%), and Caplin Point Labs are among the other contributors (81%).
Healthcare was one of the most successful industries in 2020. It will continue to thrive in 2021, thanks to rising demand for life-saving medications and immunity-boosting supplements. People have been focused more on purchasing healthcare products as of late.