Indian Stock Market’s performance in the first six months of the pandemic hit year
The first half of the year ended lower in India’s benchmark index even after the recovery of huge losses due to the widespread pandemic. There was a drop of 15 per cent and 14 per cent in Nifty 50 and the broader Nifty 500 respectively. The small cap and bank gauges were subjected to a sharp fall. In the Nifty 500 Index approximately 70% of the stocks fell.
A total of 38% was recovered from Nifty 50’s March lows owing to Reliance Industries Ltd., which contributed a total of 133 points to the recovery. Shares of the company saw a sharp increase due to his fundraising streak by selling off Rs 1.16 lakh crore worth of stake in Jio Platforms Ltd.
The highest lagards were the banking stocks, having the top contribution towards the 1, 866 point fall in Nifty 50 during the first half of 2020.
The NSE Pharma Index increased by more than 24 per cent, owing to the high demand of medicines due to the pandemic among sectoral gauges. FMCG Index remained stagnant, while PSU bank and realty indices fell.
A third of the stocks in Nifty Midcap 100 increased mainly owing to Vodafone Idea Ltd.’s 70% increase due to data usage spike in the last couple of months.
Banks and financial institutions formed four out of the top five laggards.
Writer -Arunima SenGupta