The Nifty50 on Thursday made a fresh 2022 low on a closing basis. The benchmark gauge finished at 15,809, dropping below the previous low of 15,863 made on March 7, 2022.
While the Nifty is at the same level it was over two months ago, stock prices of the underlying 50 components have changed drastically.
The automotive (auto) pack emerged a clear winner, while information technology (IT) stocks saw huge drawdowns.
Five of the 11 best-performing Nifty50 stocks between March 7 and May 19 were auto companies. Mahindra & Mahindra
Topped the list, with 28 per cent gains as a result of robust tractor sales.
Meanwhile, IT stocks dominated the worst-performing list, with Tech Mahindra and Wipro dropping nearly 20 per cent apiece.
“Smart money plays contrarian. In March, there was so much negativity around the auto sector due to headwinds, such as semiconductor shortage and oil price flare-up. On the other h and, there was so much optimization around IT stocks
, But margin pressure, higher attrition rate, and increase in salaries have weighed on the performance of technology companies,” says independent market analyst Ajay Bodke.
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