Sectoral review of FY19

The fiscal year 2018-19 the Indian market has gone through a roller-coaster ride, but it finished the fiscal year in a positive note and the benchmark index BSE Sensex delivered a stellar return of around 17 per cent during the fiscal.

BSE Sensex which started FY19 at 33,030.87 level, went up ending at an all-time high of nearly 38,896.63 on August 28, 2018. Post this all-time high, the Sensex nosedived around 13 per cent. From October onwards, sharp fall in crude oil prices, RBI’s initiated liquidity infusion, decent quarterly numbers, strengthening of the Indian rupee, recent rate cut and strong FIIs inflow lead the market to a new all-time high.

In FY19, the IT sector delivered an astonishing return of around 27 per cent, the falling rupee and strong deal wins helped IT stocks perform in the fiscal year. Also, large inflows from FIIs have led to impressive return from banking stocks. However, weak consumers demand, and increased cost of vehicle ownership has put a break on the growth of auto makers. Recently, the market leader in PV, Maruti announced a production cut. Besides, the GST Council reduced tax rate on underconstruction flats to boost the housing industry. While the price war triggered by Jio continues to overhang on the telecom stocks.