There were six sectors—auto, consumption, FMCG, metal, pharma and media—that could not keep up with the rally in benchmark indices and fell flat on their faces in H12019.
The market performance in the first half of 2019 was fairly better than the same period last year. Sensex and Nifty rallied around 8 percent each in H1CY19 against the rise of 4 percent and 2 percent, respectively, in the first six months of 2018.
Similar to 2018, banks and IT stocks were at the driving seat of the rally in the January-June period of 2019. Realty was the biggest gainer surging 17 percent on hopes of demand revival. Nifty Bank gained nearly 13 percent and Nifty IT index jumped 12 percent in the same period. Energy and infra stocks also helped the benchmark reach record heights.
However, there were six sectors—auto, consumption, FMCG, metal, pharma and media—that could not keep up with the rally in benchmark indices and fell flat on their faces because of heavy sell-off in respective constituent stocks.
The nifty Auto index fell 15 percent, Consumption 5.3 percent and FMCG 3.5 percent in the first half of 2019, largely affected by the slowdown in economic activity, rising cost, liquidity crisis in NBFCs and revised emission norms.
Metal (-8.3 percent), Pharma (-11 percent) and Media (-20.6 percent) were the other three indices that lost the most in H1CY19. Pharma sector has been under pressure for several quarters now, largely due to US pricing pressure and USFDA issues. Metals have been hit by global trade war concerns, weak global prices and some moderation in domestic demand.
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