Why are FMCG and IT stocks performing better than other sectors in India in 2021?
For the last 2 years, we have been looking at stocks of IT and FMCG. These two sectors are outperforming 5 to 6 years back investors booked profit in IT companies shares due to H1B visas issue. In the same way, due to the slow down of the economy, FMCG companies were also found to see profit booking in their shares. But now we will know how these two sectors are giving the best performance.
IT Companies :-
In the current pandemic, we saw how IT and technology companies made a profit When conditions in other sectors were very bad. Work From Home has brought a new direction in this economy. This is the cause behind the demand for high-speed internet. One of the reasons was the increase in profit due to work from. Increase in dollar value from the other side benefits, The increase in the price of the dollar from the other side has also been the reason.
FMCG Companies :-
Fast-moving consumer products have a very good demand in this pandemic. Due to the non-availability of Agri commodities, people had to be completely dependent on FMCG products. Some survey reports show that not only in urban but also in semi-urban and rural segments, there is a growing demand which is good for this sector.
When to enter and exit from IT stocks :-
You know it may not, every investor knows this, when there is any downtrend in the market or comes to a slowdown in the economy. To keep their investment safe they put maximum investment in IT and FMCG.
If there is a booming environment in the market, then you should avoid both these sectors. Here big profit booking can be seen. Who would like to keep their money in a safe place when there is a bull market. In order to save your money in the downtrend market, investors invest in these sectors. If you are a growth inverter then you would invest in these sectors in a downtrend market. If you believe in value investing. Then you should invest in these sectors when the stock market is performing well. must read How To Take Advantage Of Stock Market Crash ? blog.
Conclusion :-
Above mentioned strategy for short-term or positional investment style. These both sectors are premium sectors. The government also promoting this sector to grow. That is why the Indian government has taken the Atmanirbhar Bharatan initiative. In the same way, hey people promote their brands thru e-commerce websites. Whatever the situation will happen in the market. A lot of money is going to be made in these sectors. Never forget to bargain a stock before going for the long term.