17 December 2010

Month to Date Sectoral Performance

Nifty closed at 5961 on Dec 1 and at 5949 on Dec 16, a marginal change of -12 points. But as we know the main damage has been done to the breadth of the market.

As you can see below all sectors except for IT and Oil & Gas has lost value. Oil & Gas is neutral very much like Nifty. Financial stocks have been battered the most.

Among the other major sectors we see how Realty, Infrastructure, Telecom and even Auto has shown considerable weakness.

Traditional defensives like Health Care and FMCG hold their stature, though I would have expected better performance, when you consider that Nifty has not lost anything.

If we have to rally from here, sectoral leadership is required, which we have not seen yet. There is only defensive buying of IT due to expectations of Rupee to fall more and under owned Oil & Gas stocks. Though we are definitely seeing leadership on the downside!! Financials were definitely over owned and had a tremendous rally, Realty, Infrastructure and Telecom never were the "Hot" stocks and are seeing more beating.

I am quite surprised to see Materials stocks quiet resilient to the selling. Maybe they will lead the next round of selling if buying does not emerge anywhere!


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