The Indian stock markets have witnessed a record bull run in 2021. The benchmark indices Nifty 50 & Sensex hit record highs this year, while the midcap and smallcap indices too put up a stellar show giving stellar returns during the calendar 2021. The record-breaking rally in the stock market has come following massive liquidity support from the global central banks, vaccination drive across the country, and favorable domestic economic policies. Here is a detailed review of the Indian Stock Market performance in 2021.
1) India’s Volatility Index Trend:
- India’s Volatility Index or India’s VIX trend refers to the degree of volatility or fluctuation traders expect over the next 30 days in the Nifty50 Index.
- The Volatility Index was on a falling stage since the end of February 2021 and was settling down till mid-July 2021 at 11.71 from 28.14 on 26th February 2021.
- Then from July onwards, India’s VIX took a gradual rise and ended up at 16.22 on 31st December 2021.
2) Major Indices Performance:
- The country’s major indices have performed very well and have yielded a decent return of more than 20% in 2021.
- The BSE Sensex delivered a return of 22%, while the other benchmark index Nifty 50 generated a return of 24.1% in 2021.
- Nifty Next 50, Nifty 100, and Nifty Midcap 150 yielded returns of 29.9%, 25%, and 46.8% respectively.
- Nifty Smallcap 250 delivered the highest returns among all of 61.9% in the year 2021.
3) Top 10 Best Performing Stocks of NSE 500:
- Tata Teleservices was the top-performing stock in the NSE 500 universe, which has delivered magnificent returns of 2,496%. Next to Tata Teleservices was Poonawalla Fincorp (447%), Trident (439%), Adani Total Gas (358%), and JSW Energy (343%).
- Other names in the Top-10 Best Performing stocks of NSE 500 are CG Power and Industrial Solutions, KPIT Technologies, Gujarat Fluorochemicals, Adani Transmission, and K.P.R. Mill.
4) Top 10 Best Performing Stocks in Large Cap:
- In the large-cap category, Adani Total Gas has outplayed all and generated returns of 358% in the year 2021 which was followed by JSW Energy which delivered returns of 343%.
- Other names were Adani Transmission (298%), Adani Enterprises (257%), Tata Power (192%), IRCTC (189%), and Mindtree (188%).
- On the large-cap side, 3 stocks from Adani Group performed well and delivered great returns.
5) Top 10 Best Performing Stocks in Mid Cap:
- Moving to the Mid Cap Category, Tata Teleservices steals the show with extraordinary returns of 2496% in a calendar year.
- Next to Tata Teleservices are Poonawalla Fincorp (447%), Trident (439%), CG Power and Industrial Solutions (334%), and KPIT Technologies (332%), etc.
6) Top 10 Best Performing Stocks in Small Cap:
- Balaji Amines has delivered the highest returns of 268% on the small-cap side. Next to Balaji Amines is Angel One Broking which generated returns of 250%.
- Other major names in the list are Hikal (219%), Tata Motors DVR (218%), BSE (210%), and HFCL (205%).
7) Top 5 Best Performing Sectors:
- If we talk about the Top-5 Best Performing Sectors, then we get the Metal Sector at the top with the highest returns of 69.7%.
- Next to Metals are the IT Industry, Realty, Consumer Durables, and PSU Bank with returns of 59.6%, 54.3%, 46.1%, and 44.4% respectively.
8) Performance of Sectoral Indices vs Nifty 50:
- Talking about the sector’s performance in comparison to Nifty, Metal, IT, Realty, Consumer Durables, PSU Bank, Media, and Oil & Gas outperformed the Nifty 50 Index by delivering more returns than the benchmark. Nifty 50 delivered returns of 24.1% in the year 2021.
- Sectoral indices which underperformed Nifty 50 were Auto, Healthcare, Financial Services, Nifty Bank, Pharma, FMCG, and Private Bank.
9) Performance of Major Indices – 2021 vs 2020:
- Nifty 50 has delivered almost similar returns in the year 2020 and 2021 i.e., 23.1% and 24.1% respectively.
- Consumer Durables has shown some good show in terms of returns. This sector delivers returns of 24.6% in 2020, while the same sector generated returns of 46.1% in the year 2021.
- The Healthcare sector has shown a sudden fall in its returns from 56.5% in 2020 to 18.3% in 2021.
- Returns of IT sectors are almost consistent in 2020 and 2021.
- Metal has performed similarly to Consumer Durables where returns from the sector were 16.2% in 2020, which grew to 69.7% in 2021.
- The Pharma sector has also walked a similar path as the Healthcare sector, where returns in that sector were 60% in 2020 which went down to 10.1% in 2021.
10) Top 5 Best Performing IPOs:
- Talking about the top Initial Public Offerings (IPOs) performance, Barbeque Nation tops the charts with returns of 194% since listing. Next to Barbeque Nation is Macrotech Developers Limited with returns of 182%.
- Other IPO’s on the list are EasyMyTrip (154%), Laxmi Organic Industries Limited (149%), and Sona BLW Precision Forgings Limited (146%).
What Should Investors Expect from 2022:
The Indian Stock Market including the major benchmark indices, sectors, and stocks has delivered some exceptional returns in the year 2021. Nifty 50 particularly has delivered decent returns in the last 2 years, and one should expect a rational return from the market in the year 2022.