Stock Market Today: The benchmark Nifty 50 index gained 14.91% during the April-September 2024 period or the first half of FY25.
In light of this, five important indexes showed poor performance over the time frame. These comprise the Nifty PSU Bank, Nifty Oil & Gas, Nifty Energy, Nifty Private Bank, and Nifty Bank indices. Even though the Nifty Oil & Gas index increased by 13.35% in the first half of FY25, it did not outpace the Nifty 50 index’s more robust gains.
The price volatility of crude oil has been the main cause of the underperformance in the oil and gas index. After soaring to a height of $90 a barrel in April, the Brent crude oil prices have been on a downward trajectory.
This underperformance despite promising earnings forecasts was caused by the windfall tax for upstream oil and gas producers as well as some overhang on oil marketing businesses like Hindustan Petroleum Corporation, Indian Oil Corporation, and Bharat Petroleum Corporation. Conversely, Nifty Energy underperformed the Nifty 50 index, gaining just 11.36%.
Banks -Key underperformers
Nifty Private Bank and Nifty Bank with 11.36% and 11.35% gains, respectively closely trailed the Nifty Energy index. While these indices may have shown lower growth compared to the Nifty 50, expectations remain high from private banks on a rebound in performance.
In contrast, Nifty PSU Banks experienced a 5.02% decrease in the first half of the fiscal year. PSU banks had a great FY24, according to analysts, and they are now waiting for new catalysts because the majority of the positives have already been factored in.
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