Sector Performance Amid Current Market Volatility Reflects India’s Paradigm Shift: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Expectations of the start of quantitative easing tapering by the U.S. Federal, rise in U.S. bond yields, spike in energy prices and China slowdown concerns emanating from the government’s regulatory crackdown and liquidity crisis from the Evergrande episode resulted in bouts of volatility for India equity markets over the past week in line with global capital markets.

In a departure from historical trends, the systematic risk did not play out in Indian stocks with price decline largely seen in low-volatility stocks such as IT, FMCG and telecom.

Outperforming sectors were inter alia cyclicals and balance sheet driven leveraged sectors such as public sector undertakings, power, energy, realty, consumer durables, metals and infrastructure.

Mid and small caps too outperformed benchmark indices.

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