Healthcare and IT stocks have been the big beneficiaries of the year 2020 with gains of more than 40 per cent.
Sachin Shah, Fund Manager, Emkay Investment Managers Limited says that Calender year 2020 has been a year of change of trends in many ways, as compared to a narrow market movement of CY2018 & CY2019, the market rally is much more broad-based in CY2020, the BSE Small-Cap index has gained more than 12 per cent v/s the large-cap indices (Sensex & Nifty) flat for last eleven months.
He further adds that, even amongst the sectors, the Healthcare Sector and IT Sector have gained 40 per cent plus as compared to banking, real estate, capital goods, power sector stocks losing more than 10-15 per cent.
These sectors have been biggest losers in the markets during the year but as the vaccine hopes rise there has been sector rotation and IT and pharma stocks are falling and the industrials and other beaten categories are now rallying as economic recovery is expected to pick up speed and money is moving out of the stay at home and defensive themes like IT and pharma.
"The pandemic has played the role of a catalyst by bringing cost efficiencies and balance sheet discipline across sectors/companies. A slight tail-wind in the economic growth (for which green shoots are already visible) and an uptick in aggregate demand will set India Inc for a multi-year very strong earnings growth trajectory," Shah said.
