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Top Performing and Under Performing Sectors In FY 2023

11 April 20236 mins read by Angel One
Technology and healthcare to agriculture and manufacturing, we will delve into the trends and developments shaping these industries and the opportunities they present for investors.
Top Performing and Under Performing Sectors In FY 2023
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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. 

Performance of Key Indices in FY23

Index Name FY23 Returns (%)
Nifty 50 Index -0.60
BSE Sensex +0.72
Mid Cap Index +1.15
Small Cap Index -13.81

Top Performing Sector In FY 23

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

Under Performing Sector In FY 23

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

Table Readings For The Above Mentioned Sectors

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.

Factors That Impact The Performance Of Different Sectors In India

Several factors can impact the performance of different sectors in India. Some of the most important ones include:

  1. Government policies and regulations: These play a significant role in determining the growth and performance of various sectors in India. For example, policies related to taxation, subsidies, tariffs, and trade agreements can have a significant impact on the performance of different sectors.
  2. Economic conditions: Factors such as inflation, interest rates, exchange rates, and economic growth can all have an impact on the performance of different sectors.
  3. Technology: The availability and adoption of new technologies can also impact the performance. Sectors that can adopt new technologies and innovate are likely to perform better than those that are not able to keep up with technological advancements.
  4. Infrastructure: The availability and quality of infrastructure, such as transportation, power, and communication, are also important. Sectors that require a good infrastructure, such as manufacturing and logistics, may be more impacted by poor infrastructure than other sectors.
  5. Labour force: The quality and availability of the labour force can also impact the performance of different sectors. Sectors that require skilled labour, such as IT and healthcare, may be more impacted by labour shortages or a lack of skilled workers.
  6. Consumer behaviour: Changes in consumer behaviour, such as changes in preferences or spending habits, also impact performance. Sectors that rely heavily on consumer spending, such as retail and hospitality, may be more impacted by changes in consumer behaviour than other sectors.

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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