This is the most revealing data in itself. Basically it compares the Nifty, Bank, IT, Pharma, Metal and FMCG from the March 20’ lows to CMP and also against the rebound from Jan-Feb’20 highs to CMP.
So basically Nifty fell 40% during Mar’20 crash from its Jan-Feb’20 highs but rebounded 134%, and above 41% the Jan-Feb’20 highs. But Bank Nifty fell 50% rebounded 134% and is only 18% above its Jan-Feb’20 highs which it means it is relatively under performing Nifty.
Nifty pharma actually fell only 26% in pandemic while rebounded same 134% post pandemic recovery. Which makes it 73% above its Jan-Feb’20 highs which means performing better than Nifty.
Nifty metal fell 48% but recovered 285% in rebound, and above Jan-Feb’20 highs by 98%- again performing better than Nifty
Nifty IT fell 30% in pandemic, recovered 212% in post-pandemic vertical up move and consequently above 117% its Jan-Feb’20 highs. Its most outperforming index.
Nifty FMCG fell 28%, recovered 59% and is above its Jab-Feb’20 high by 31% only. Its under performing.
Conclusions
Relatively speaking FMCG and Bank Nifty have under-performed as compared to Nifty.
Nifty IT, Metals and Pharma are actually out-performing Nifty. Yes Pharma sector too. We can not say it cheap or not performed at all
Historically ( 2016-2020); Bank Nifty & FMCG have outperformed- so now suddenly they cannot under-perform- at most they can same-perform Nifty which means these are stronger sectors.
Historically Pharma, & IT have under-performed but now are outperforming. How far that can go is uncertain.
Metals have outperformed Nifty so if their out performance is in line with data.