New Delhi, December 30, 2018 : .While the Indian equity markets saw a handsome return in 2021, large-cap stocks have not shown healthy results.Large-cap stocks, according to market participants, are considered safe because they carry low risk and provide steady long-term returns.
You will find stocks such as ITC, Hero MotoCorp and Bajaj Auto in this category, along with HUL, Maruti Suzuki, HUL, HUL, and Bajaj Auto.
Because a large percentage of the demand is from rural India, it has been shown that disruptions to economic activity, especially in rural pockets, have affected the businesses of these people.
“All sectors recovered in 2021.
However, few saw turbulence after the second Covid wave which adversely affected the rural economy,” stated Mitul Shah, Head of Research – Institutional Desk, Reliance Securities.
This resulted in lower rural consumption for 2021.
Companies with products that are rural-centric like HUL and Hero MotoCorp saw an increase in profitability.Their underperformance was due to this.
Anup Gupta, IIFL Securities says that there were disruptions to both the supply and demand sides of the economy.
It is believed that rising metal prices and other raw material costs have caused a decline in auto and consumer product sales.
Gupta stated that the rise in prices for edible oils also impacted consumer markets.
In the manufacture of consumer goods, edible oil is used, especially palm oil.
According to exchange data, Hero Motocorp’s shares fell 22 percent in 2021.Bajaj Auto dropped eight percent, HUL more than two per cent and Maruti Suzuki above five per cent.
ITC stock gained only one per cent.
Notably, the Nifty and Sensex domestic benchmark indices rose more than 20% during the same time frame.
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