India is a vast country with a diversified economy consisting of various sectors, each contributing significantly to its overall growth and development. These sectors range from agriculture, manufacturing, and services to infrastructure, healthcare, and tourism, to name a few.
As we step into the year 2023, it’s essential to take stock of how these sectors are performing and their contribution to the country’s economy. The performance of different sectors can vary greatly depending on a range of factors, including economic conditions, technological advancements, consumer behaviour, and government policies. However, some sectors tend to perform better than others in the long run, while others may struggle to keep up with changing trends and demand.
The fiscal year 2022-23 has been marked by several changes in the global economy, which have resulted in significant fluctuations in the performance of different sectors. Some sectors have emerged as top performers, while others have struggled to keep up with the changing market dynamics. In this blog, let us explore the top-performing and underperforming sectors of FY-2023.
Index Name | FY23 Returns (%) |
Nifty 50 Index | -0.60 |
BSE Sensex | +0.72 |
Mid Cap Index | +1.15 |
Small Cap Index | -13.81 |
India is one of the fastest-growing economies in the world and has a diverse range of sectors that contribute to its growth. The financial year 2022-23 (FY23) has been an interesting one for India, with several sectors seeing remarkable growth and success. Let us look at which ones:
Sector | FY 2023 Returns (%) |
Defence | 48.59 |
PSU Banks | 36.34 |
FMCG | 26.50 |
Automobiles | 16.03 |
Private Banks | 11.93 |
Logistics | 9.74 |
The Indian economy had shown some signs of recovery in FY 2022, but the ongoing impact of the pandemic and a range of other factors have continued to impact several sectors of the Indian economy. As we look into FY 2023, it is important to take the state of the stock of different sectors and understand which ones are underperforming. Let us dive into them:
Sector | FY-23 Returns (%) |
Information Technology (IT) | -20.98 |
Consumer Durables | -11.44 |
Pharmaceuticals | -11.54 |
Metals | -14.42 |
Realty | -16.44 |
In FY23, there was a wide range of positive and negative performers across various sectors. The highest returns were observed in the defence sector at 48.6%, while the Information Technology sector recorded the lowest returns of -20.98%. The increase in orders from the government for the Indian defence sector played a crucial role in this positive performance. Additionally, PSU banks gained 36.3% due to loan yields growing faster than the cost of deposits. Defensive buying in the FMCG and auto sectors, as well as the hope for consumption revival in the Indian economy, also contributed to their positive performance.
However, some sectors underperformed the Nifty by a significant margin, such as the IT and digital tech twins, which experienced a decline of over 20% during the year.
Several factors can impact the performance of different sectors in India. Some of the most important ones include:
Overall, many factors can impact the performance of different sectors in India, and it is important to consider these factors when analysing and predicting the performance of different sectors.
It’s worth noting, however, that the performance of different sectors can be highly variable from year to year, and predicting future trends can be difficult. Therefore, it’s important for investors to stay informed about the latest developments in different sectors and diversify their portfolios to mitigate risk.
The FY 2023 is still ongoing, and it is challenging to predict the exact performance of sectors accurately. However, based on the current market trends and past performance, it can be concluded which sectors are likely to perform well and which may continue to underperform. So get started with diversifying your portfolio by investing into different sectors suitable to your investment goals and if you don’t have a demat account create one right away with Angel One. But of course, it is always advisable to do thorough research and analysis before making any investment decisions.
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