Stock market 2023: Winners and losers

livemint.com:

BSE Sensex—hit the 21,000 and 70,000 milestones, respectively. But not all have emerged victorious. An analysis of Nifty’s 14 key sectoral indices shows some sectors handsomely beating others as well as Nifty by a wide margin in 2023, but others put up a weak show.

Occupying the top spot this year is the Nifty Realty index, with a remarkable near 77% surge. Robust pre-sales momentum in residential property despite higher home loan rates was the key driving factor. Interestingly, in 2022, this index was a laggard, falling around 11%.

Going ahead, the pace of new launches and any new scheme to boost affordable housing could be catalysts for listed realty stocks. The Nifty Auto Index jumped 41%. Robust volume growth was driven by increased traction in the SUV and MHCV segments and new launches in two-wheelers.

Margins were healthy, attributed to stable raw material costs, price hikes and favourable product mix. On the flipside, the demand scenario in the mass automobile segment is weak and needs to recover. Softening rubber costs led to a sharp rally in key tyre stocks as the profitability outlook improved.

However, demand is lacklustre in certain segments. The Nifty Pharma index saw stellar gains of around 30%, thanks to robust revenue growth driven by increased sales, successful product launches and stable US market pricing. Profit margins improved, benefiting from reduced cost inflation.

Branded generic exporters, particularly to the US, improved their performance due to reduced supply constraints, leading to a significant drop in price erosion, which is expected to persist at low levels in fiscal 2024. In India, growth was propelled by price hikes and a robust showing in chronic therapies. However, concern over delayed