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Sectoral Gainers and Losers in August 2021
Last Updated: 11th December 2022 - 03:02 pm
The month of August was led by the large caps as the Nifty rallied from 16,000 to 17,000 in a record time of less than a month. For the month of August, Nifty gave returns of +8.69% while the Nifty Mid-Cap index fell by -2.03% and the Nifty Small Cap fell by -2.46%. This is a reversal of the trend of the last 2 months, when mid and small caps had outperformed.
Sectoral picture of gainers and losers August 2021
Sectoral Gainers |
Percentage Gain |
Software and IT |
13.42% |
Oil & Gas |
9.93% |
FMCG |
9.65% |
Private Banks |
4.79% |
Consumer Durables |
4.18% |
Sectoral Losers |
Percentage Loss |
PSU Banks |
-4.35% |
Real Estate |
-2.97% |
Metals |
-0.97% |
Pharmaceuticals |
-0.56% |
Automobiles |
-0.14% |
Here are some key takeaways from the sectoral performance in Aug-21.
• There was a shift to defensives at higher levels of the Nifty. That explains the strong returns in FMCG, IT and even in consumer durables.
• The month belonged to heavyweights like RIL, TCS, HDFC Bank, Infosys, ICICI Bank and Hindustan Unilever. That is evident in the sectoral gainers mix also.
• The sharp rally in software at 13.42% was led by solid first quarter results, robust guidance as well as dollar strength boosting the value of IT companies.
• On the losing side, PSU banks diverged from private banks as concerns over asset quality heightened during the month, especially with the stress imposed by COVID 2.0.
• Real Estate and Metals were virtually taking a breather after a frenetic rally over the last 2 month. Both sectors were among the top performers in June and July.
• In the case of pharmaceuticals and automobiles, the subdued performance was more due to concerns over a spike in cost of inputs due to supply chain constraints.
August 2021 has been a story of two trends. The defensives attracted a lot of interest at higher levels and it was a set of heavyweight stocks that propelled the index higher.
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