After playing safe during the initial phase of the pandemic in 2020 and sticking to defensive plays such as pharmaceuticals, fast moving consumer goods (FMCG) and information technology (IT), investors are now betting big on cyclical recovery after a sharp economic contraction with most of the related stocks doing well at the bourses.
Till June-July, defensive sectors like pharma and FMCG were leaders, followed by IT, as investors wanted to play safe given the uncertainty around the pandemic, its impact on the economy and fortunes of India Inc, analysts say. From August – September, cyclicals like auto and banking & financials picked up pace. Post budget, infrastructure, industrials, and stocks of public sector undertakings (PSUs) have rallied.