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The Hits and Misses of 2022 ๐ŸŽฏ

CHART OF THE WEEK ๐Ÿ“ˆ


With a 3% rise, the Nifty 50โ€™s performance was lacklustre in 2022. However, the year 2022 was marked by divergence.


While the Indian markets ended the year up 3%, the US was down 33%, the UK was up 1% and China was down 15%. India did fare better than most other countries


The markets fell by 15% in the first half of the year, and then rose 19% in the second half of the year. If you just invested somewhere in the middle of the year, youโ€™d have made decent money


Stocks in the sectors of Banking, Metals and Consumer Goods did extremely well, rising by 17-67% in 2022, whereas IT, Consumer Durables and Real Estate were the worst-performing sectors, down by 12-27%


Score: 2022

Banks Are Raking In

Topping the charts this year was the Nifty PSU Bank index giving out an astonishing return of 67%. Yup, banks are doing really well! Private banks are not far behind, with a return of 18% in the last year


Strong credit growth despite rate hikes and better spreads was the primary driver of the banking rally in 2022


FMCG Surprise

Intuitively, FMCG companies get impacted by high inflation as demand slows down, price increases become difficult to take, and input cost prices rise. However, strong consumption continued despite high inflation, and the impact on FMCG companies wasn't all that much


The sector has bounced back post-pandemic, astonishing everyone with a 17% return YTD


Fuel for Inflation

High inflation is usually driven by higher food and commodity prices. Global supply issues resulted in higher prices for commodities across the board, naturally also boosting the price of Metal and Oil & Gas stocks


With inflation levels breaking all records this year, sectors such as Oil & Gas and Metals have had a healthy year


Buying Houses Yet?

With interest rates rising, fears increased of lesser people taking loans, especially of a high-ticket size, to buy houses. This would further be exacerbated by higher interest payments and cash-flow-strain for debt-heavy real estate companies


Naturally, the real estate index was one of the worst-performing sectors, down by 12% in 2022


IT Ain't Got It

IT got the short end of the stick with -27% returns YTD


The major reason is a looming recession in its core markets (the US and Europe), which is expected to slow demand down

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