Over the last several years, the Indian stock market has seen its fair share of ups and downs, with certain industries performing remarkably well while others have had difficulty. Here, we examine the Indian stock market’s top-performing sectors during the previous five years.
Industry of Information Technology (IT)
For the past five years, the Indian stock market’s best-performing industry has been the IT sector. It has made a significant contribution to the expansion of India’s GDP, with a market value of more than $350 billion. The COVID-19 epidemic has expedited the expansion of the IT sector, given that digitalization and remote labour have become the norm. Significant IT firms like Wipro, Infosys, and Tata Consultancy Services (TCS) have experienced a sharp increase in the value of their shares, providing owners with substantial profits. With a market valuation of over $160 billion as of May 2021, TCS is the most valued corporation in India.
Industry of Consumer Goods
Over the past five years, the Indian stock market has seen strong performance from the consumer goods sector as well. Demand for consumer products has increased due to the expansion of India’s middle class, especially in the FMCG (fast-moving consumer goods) market. Stocks of companies like Hindustan Unilever (HUL), Nestle India, and Marico have increased dramatically, providing shareholders with handsome profits. With a market valuation of almost $150 billion as of May 2021, HUL is among the most valued corporations in India.
Medical Sector
Over the previous five years, the Indian stock market has seen outstanding performance from the healthcare sector as well. The COVID-19 pandemic has increased demand for healthcare services and goods by highlighting the significance of the healthcare industry. The stocks of significant healthcare firms, like Cipla, Apollo Hospitals, and Dr. Reddy’s Laboratories, have performed well and have room to develop in the future. In May 2021, the market capitalization of Apollo Hospitals was around $7 billion, and that of Dr. Reddy’s Laboratories was approximately $12 billion.
Banking Sector
Over the past five years, the Indian stock market has seen mixed results from the banking sector. Certain banks have fared well, while others have suffered from poor loans and other problems. The equities of private sector banks, such ICICI Bank, HDFC Bank, and Kotak Mahindra Bank, have increased dramatically, providing shareholders with remarkable gains. The banking industry may perform even better in the future as a result of the recent reforms, which included the merging of many public sector banks. As of May 2021, Kotak Mahindra Bank is valued at over $60 billion, while HDFC Bank is valued at approximately $170 billion.
Mining & Metals Sector
Due in large part to the expansion of the infrastructure and construction industries, the metals and mining sector has also done well on the Indian stock market during the last five years. Stocks of companies like Vedanta Resources, Tata Steel, and Hindalco Industries have increased dramatically, providing shareholders with spectacular profits. As of May 2021, Hindalco Industries is valued at around $16 billion, while Tata Steel is valued at approximately $20 billion.
In summary
In summary, during the past five years, the Indian stock market has witnessed remarkable performance from a number of industries, with the IT, consumer goods, healthcare, banking, and metals and mining sectors leading the way. Investors can utilise this information to help them make well-informed decisions about their investment portfolios, even though previous success is not necessarily a reliable predictor of future performance. It is always advisable to do a thorough analysis and speak with a financial advisor prior to making any investing decisions.
