After one of the biggest falls in the Indian share market in 2020, the market has picked up after itself and has reached its all-time high in 2021. It was the year of extremely high profits for those who were bullish on the Indian markets and there were multiple sectors that helped move it.
Here are the top 5 sectors in NSE with the highest market cap that moved the market this year.
Software and IT Services
The software and IT sector pushed the markets to its ATH - the sector alone moved 198.97% this year, making it the best performing sector in NSE. Be it large or small companies, every company in the sector has performed well with the one of the best performance coming in from Brightcomm group which gave investors 3591.99% returns on its price at the start of 2021. The highest returns are from 3i Infotech and Affle India, both of which had a percentage change of 1055%. Among the large-cap IT stocks, Wipro saw a whopping 82.23% increase in price in 2021, while TCS saw a 28% increase and Infosys’ price rose by 50%.
The chemicals industry comes behind the software and IT services with a rise of 100.99%. The major shares that contributed to this rise are Alkyl Amines, AMI Organics, and Anupam Rasayan, all of which moved by 1141%. An integral apart of the Nifty50 index, Asian Paints moved by a significant 190.67%. Dynemic Product, belonging to the Dyes and Pigments category, moved 220% to power the rapid move of the chemical sector.
In a year that got all of us to depend more on healthcare services thanks to the second wave, the sector moved by almost 70%. One of the biggest movers for the sector is Abbott India which moved 250%. Other pharma companies like Aarti drugs also moved up by more than 200% and Apollo Hospital moved up by 315% this year. Large cap stocks like Sun Pharma gave a decent 40.75% returns and Dr Reddy made a better move of 67.5%.
Oil And Gas
Another important mover of the market is the Oil and Gas sector which moved almost 60% this year. While the refineries section comprising stocks like BPCL and Chennai Petro went down by 37.88%, the main sector was single handedly improved by stocks in the oil exploration and production sub sector. This includes stocks like Deepa Industry which rose by 80% and Asian Energy which rose by 77%. This year saw multiple lockdowns, consumers moving towards electric vehicles and other industry-altering trends. It should be interesting to see how the sector adapts to more changes in 2022.
Fast Moving Consumer Goods
The FMCG sector has been extremely kind to investors by giving them 44% in returns. Stocks like Varun Beverage moved by over 200% to add some weight behind the FMCG sector. Companies in the cigarettes and tobacco sub-sector closed the year in the red. Britannia seems to be the favorite of investors with its safe business plans - the stock rose by more than 210% this year followed by ADF Foods which rose by almost 150%.
While these are the market moving sectors of the very bullish 2021, a few notable mentions include the finance and metal sectors. These moved more than 40% with some notable contributions from stocks like HDFC, Bajaj Financial Services and APL Apollo.
With our sights on the new year, here’s hoping that your portfolio is diversified with stocks from all of these sectors for lower risk and good returns.