The Year 2020: Dump and Pump

The year 2020 initiated on a bullish note in January but then Nifty collapsed almost 40% in the next two months. Since then the market has been on a vertical spree and recovered almost 83% from the March lows. Not only that it has been trading 11% above the January highs and thus performed 12.6% in 2020.

Every bull market has its own unique taste as far as sectors are concerned and this bull run is no different. A few sectors, like Pharma and IT, have immensely outperformed Nifty while the others, like Banking, have been lagging behind. Following is a graphical representation of the performance of various sectors in the year 2020.

Besides IT and Pharma there has been a lot of value buying in MidCap and SmallCap stocks. Both of these indices have performed more than 20% and hence outperforming Nifty.

Metals and Auto sectors have been in a downtrend since 2018 but have shown a surprise comeback after March 2020 with almost 20% and 13% performance respectively in 2020.

Both Infrastructure and FMCG have performed in line with Nifty.

One sector which has remained a setback for the investors has been PSUBanks which are still -30% from December 2019 levels. However private banks have been trying to catch up to those levels.