Are Sensex and nifty still good options during a lockdown

The lockdown has made us witness the worst situations in reality and even in share markets all over the globe. However, Sensex and nifty have managed to bounce back from the losses that were faced in the months of February and March. Although, the banking sector is still very low on its speed. While other sectors are slowly moving towards growth, it is the banking sector that is underperforming.

To compare the closing of Sensex in the month of January and last Wednesday, it is almost the same. The figures being 40,707 on Wednesday and 40,723 in the month of January. Other than that, the IT and the Healthcare sector has seen a rise of 38% and 41% respectively since January. Sensex

The Tech industry has seen a rise of 26% and the FMCG durables are fluctuating within 6%. As the observation suggests, most of the sectors have come closer to their closing their Sensex figures that were noted in January.

However, banking and the finance sectors are far behind from the performance. They have still been on the low in comparison to their Sensex figures in January. The banking sector has stooped down to 21% and the finance has to 19%. Other than these two, the metal and the power and telecom factors are laying low as well at 10% and 15% respectively.

The deep blows on employment, businesses ranging from small to big scale, new enterprises, manufacturing sectors all are said to be reasons for the slowing down of the banking sector. These are going to impact banking and finance Sensex for quite a couple of quarters to come.

The RBIs’ decision of moratorium for six-months that ended on August 31 and the concessions on EMIs are prominent for the slow-down. The lenders could not yield any interests or they had to issue a lot of concessions, and that is why the recovery of the banking and finance sector has slowed down in the Sensex remarkably.

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