When most things ran into choppy waters during the pandemic last year, a clutch of stocks stayed afloat, rather set sail to greener shores.
The stocks from the banking, financial services and insurance sector, clubbed together as BFSI, outperformed the broader equity universe. With enough fuel still left in them, the momentum is likely to continue for the near to medium term as well.
“Nifty and Bank Nifty have been partners in crime for more than a decade and it was hard to imagine Nifty going up or down without contribution from Bank Nifty,” says Rahul Sharma, who heads the technical and derivatives research wing at JM Financial Services. “We must remember that banking stocks have a major share in Nifty 50 and have strong fundamentals.”
The early days of Covid-19 containment measures that had stalled all economic activities across large parts of the world, had taken a toll on the BFSI stocks. But after the initial earnings downgrade, the sector witnessed a steady revival on the back of improving asset quality trends. The stocks garnered good income in the recent months, while credit growth too has been showing signs of recovery.
It’s intriguing to see the BFSI stocks duck the downturn after the pandemic struck. The banking sector has shown a high degree resilience supported by adequate policy and regulatory measures. “The banking sector is expected to outperform most of its peers from here onwards,” says Nitin Agarwal, who is a banking analyst for institutional equities at Motilal Oswal Financial Services Limited (MOFSL).
この記事は Outlook Money の April 2021 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Outlook Money の April 2021 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
Tax Reforms: What's In Store?
The government is working on reforming the existing Income-tax Act, 1961. The impending reforms have raised many questions in the minds of taxpayers. Will the old regime and deductions be done away with? Will it really simplify your life? What's the need for these reforms? We try to answer these and other questions regarding tax reforms
5 Questions That Will Lead You To The Right Financial Planner
Choosing a financial planner is not as easy as it may seem. Besides the right credentials, you should also consider things like the kind of services you will be needing-tax advisory, estate planning-as well as the fee structure. Here are five questions that will help you choose the right planner
Health Insurance Sub-Limits
Sub-limits in health insurance are restrictions placed by the insurance company on the SP maximum amount they will pay for specific expenses that are part of the total hospital bill.
Delayed Gratification, Humility, Understanding Inflation And Risks Key To Financial Success
The journey to financial success is continuous, requiring patience, education, and disciplined decision-making.
Avoiding Common Pitfalls through Asset Allocation and Multi-Asset Investing
Just as you track the calories and nutrients for a well-balanced diet, you need a balanced portfolio that has multiple assets to balance the risks and returns.
Mutual Funds for Financial Growth
Mutual funds allow you to invest in small amounts and seize the compounding growth, and experts help tackle volatility and asset allocation, making them a potent tool to create wealth.
Multi-Asset Investing is The Financial Equivalent of A Well-Balanced Diet
Just as you track the calories and nutrients for a well-balanced diet, you need a balanced portfolio that has multiple assets to balance the risks and returns.
Theme and Triumph: How Thematic Funds Can Boost Your Bottom Line
Thematic funds target high-growth opportunities in various industries and economic sectors, allowing investors to participate in future-focused segments to generate long-term returns.
Wealth Creation Through SIP - The Slow & Steady Road to Success
For investors seeking to create long-term wealth, SIPS are a powerful tool that enables regular, disciplined investments to generate compounding returns.
Tuition Fee Varies Among Countries
I am 22 years old and have recently started working in a software company.