The Indian stock market experienced significant volatility marked by record highs in the run up for Elections and notable corrections following the Elections’ results with the market nosediving to a four-year low as investor sentiment was dented. Both institutional and domestic investors-at-large anticipated India’s Prime Minister Narendra Modi to secure a landslide victory, the expectation of which was crushed as the Modi-led Bharatiya Janata Party failed to secure a clear majority.
Despite this, several sectors have demonstrated key stocks’ robust performance in 2024 with market participants keen to invest in companies with strong fundamentals. This article delves into the monthly performance of the stock market, highlighting sectors that have excelled and identifying undervalued sectors poised for future growth.
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India Stock Market Performance So Far
Here are the sectors that have performed the best and the worst in the last one month according to data publicly available.
Top Performing Sectors
1. Hardware Technology & Equipment
- Monthly Change: +12.28%
- Advances/Declines Ratio: 0.3
- PE Ratio: 44.1
- ROE: 11.8%
- ROCE: 16.6%
India Stock Market Performance So Far
Here are the sectors that have performed the best and the worst in the last one month according to data publicly available.
2. FMCG (Fast-Moving Consumer Goods)
- Monthly Change: +12.12%
- Advances/Declines Ratio: 0.5
- PE Ratio: 54.8
- ROE: 41.8%
- ROCE: 39.1%
Rationale: Consistent consumer demand and resilient business models have propelled the FMCG sector to strong performance. The high returns on equity and capital employed underscore the sector’s efficiency and profitabilit
3. General Industrials
- Monthly Change: +7.44%
- Advances/Declines Ratio: 0.4
- PE Ratio: 60.2
- ROE: 20.1%
- ROCE: 23%
Rationale: Benefiting from increased infrastructure spending and industrial production, this sector has shown robust growth, indicating favorable conditions for investoR.
4. Automobiles & Auto Components
- Monthly Change: +6.97%
- Advances/Declines Ratio: 0.5
- PE Ratio: 59.4
- ROE: 20.7%
- ROCE: 20.8%
Rationale: Recovery in demand and improvements in supply chain management have driven the strong performance of the auto sector, making it an attractive investment option.
5. Consumer Durables
- Monthly Change: +6.59%
- Advances/Declines Ratio: 0.4
- PE Ratio: 55.9
- ROE: 15.7%
- ROCE: 20.9%
Rationale: Increased consumer spending and innovation in product offerings have contributed to the sector’s positive performance, presenting investment opportunities.