STOCK MARKET BIG PICTURE FOR JANUARY 2025
How did the Indian stock markets perform in January 2025, in terms of specific generic, sectoral and thematic indices? Here is a quick dekko.
HOW SECTORAL INDICES FARED ON RETURNS IN LAST 1 YEAR?
The table captures the returns on key sectors with ranking on 1-year returns.
Sectoral Index |
1-Year Returns |
3-Year Returns |
5-Year Returns |
Nifty Healthcare Index | 21.44 | 19.60 | 23.36 |
Nifty Pharma | 20.35 | 18.53 | 22.28 |
Nifty Consumer Durables | 19.93 | 11.52 | 18.32 |
Nifty Auto | 19.84 | 26.12 | 24.40 |
Nifty IT | 19.08 | 9.26 | 23.91 |
Nifty Financial Services | 14.43 | 10.23 | 10.95 |
Nifty Non-Banks | 12.14 | 14.18 | 13.15 |
Nifty Bank | 8.77 | 10.23 | 10.61 |
Nifty Realty | 7.91 | 24.66 | 23.15 |
Nifty Metal | 6.16 | 16.91 | 28.73 |
Nifty FMCG | 4.88 | 17.93 | 14.96 |
Nifty Private Bank | 4.18 | 9.40 | 8.10 |
Nifty PSU Bank | 1.45 | 30.06 | 22.70 |
Nifty Oil & Gas | -0.41 | 12.12 | 18.63 |
Nifty Media | -26.08 | -10.41 | -2.24 |
Data Source: NSE Indices
There are some interesting takeaways on 1 year returns.
HOW SECTORAL INDICES FARED ON RISK IN LAST 1 YEAR?
Returns just represent one side of the coin. Here is a look at the risk parameters.
Sectoral Index |
1-Year Volatility |
1-Year Beta |
1-Year Correlation |
1-Year R2 |
Nifty PSU Bank | 30.13 | 1.56 | 0.72 | 0.51 |
Nifty Realty | 28.77 | 1.40 | 0.67 | 0.45 |
Nifty Media | 27.74 | 1.07 | 0.53 | 0.28 |
Nifty Metal | 26.14 | 1.41 | 0.74 | 0.55 |
Nifty Oil & Gas | 24.76 | 1.38 | 0.77 | 0.59 |
Nifty Non-Banks | 20.67 | 1.22 | 0.82 | 0.67 |
Nifty IT | 19.68 | 0.73 | 0.51 | 0.26 |
Nifty Auto | 19.38 | 1.08 | 0.77 | 0.60 |
Nifty Consumer Durables | 17.80 | 0.89 | 0.69 | 0.48 |
Nifty Bank | 17.19 | 1.06 | 0.86 | 0.73 |
Nifty Financial Services | 17.04 | 1.08 | 0.87 | 0.76 |
Nifty Private Bank | 16.98 | 1.02 | 0.83 | 0.69 |
Nifty Pharma | 15.23 | 0.55 | 0.50 | 0.25 |
Nifty Healthcare Index | 14.95 | 0.56 | 0.51 | 0.26 |
Nifty FMCG | 13.83 | 0.47 | 0.47 | 0.22 |
Data Source: NSE Indices
The above table is ranked on 1-year volatility (standard deviation) starting with the most volatile sectors and going down to the least volatile sectors.
SECTORAL INDICES AND THE VALUATION PLAY IN LAST 1 YEAR
Finally, we look at sectoral valuations ranked on P/E ratios as of January 2025.
Sectoral
Index |
Price/Earnings (P/E Ratio) |
Price / Book (P/BV) |
Dividend Yield |
Nifty Consumer Durables | 75.27 | 11.92 | 0.41 |
Nifty FMCG | 45.98 | 11.23 | 1.82 |
Nifty Realty | 44.26 | 5.26 | 0.42 |
Nifty Healthcare Index | 38.35 | 5.85 | 0.57 |
Nifty Pharma | 33.31 | 5.24 | 0.66 |
Nifty IT | 32.33 | 8.82 | 2.41 |
Nifty Auto | 22.16 | 4.70 | 0.99 |
Nifty Non-Banks | 20.79 | 3.15 | 0.87 |
Nifty Metal | 20.61 | 2.39 | 2.46 |
Nifty Financial Services | 15.77 | 2.80 | 0.93 |
Nifty Private Bank | 14.24 | 2.21 | 0.60 |
Nifty Bank | 13.15 | 2.18 | 1.01 |
Nifty Oil & Gas | 12.89 | 1.60 | 2.80 |
Nifty PSU Bank | 7.02 | 1.23 | 2.33 |
Nifty Media | 0.00 | 1.23 | 0.77 |
Data Source: NSE Indices
Here are key takeaways from the three valuation parameters.
Moral of the story? Healthcare is generating best risk-adjusted returns. That is the real takeaway!
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