Stock Market Today: The benchmark Nifty-50 index during the April-September 2024 period or the first half FY25 gained 14.91%.
However five key index underperformers during the period include Nifty Oil & Gas Index, Nifty Energy index, Nifty Private Bank Index. Nifty Bank Index and Nifty PSU Bank index.
Nifty Oil and Gas index though gained 13.35% during the first half however underperformed the stronger gains recorded by the Nifty-50 index
The underperformance in the Oil & Gas index has been led by volatility in crude prices. Brent Crude had peaked to $90 a barrel in April and thereafter kept on declining. The windfall tax for Upstream oil & Gas producers and some overhang of expected Oil marketing companies as Hindustan Petroleum Corporation, Indian Oil Corporation and Bharat Petroleum Corporation led to this underperformance despite strong earnings popects of these companies.
Meanwhile Nifty Energy Index with gains of 11.36% was another under former compared to gains by the bench mark Nifty-50 index.
The Nifty Energy index comprises of Oil & Gas companies as ONGC, Indian Oil Corporation, Bharat Petroleum Corporation and also Reliance Industries Ltd, as well as Power production . Transmission and distribution , Green Energy and some others including Coal India. The power demand remains strong however some impact of lower demand Lok Sabha elections and thereafter monsoon and floods have limited gains for some of stocks in this index
Banks -Key underperformers
The Nifty Private Bank index and Nifty Bank Index with 11.36% gains and 11.35% gains are not much behind the Nifty Energy index. While these index may have shown lower growth compared to the Nifty-50 Index, expectations however remain high from Private Banks especially for rebound in performance.
Nifty PSU Banks Index however has seen decline of 5.02 % during the first half. Analysts say that PSU BANKS had a strong FY24 and now are awaiting further more triggers and most positives currently remain priced in.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
