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Metal, auto, IT sectors more than doubled in FY21, will the trend continue in FY22?

While IT found favour with investors as a defensive sector and also because COVID-19 increased our dependence on technology by several notches, metal and auto picked pace as investors anticipated economic recovery.

March 31, 2021 / 09:29 AM IST

The Indian market did well in the financial year 2021 (FY21) despite the coronavirus outbreak which upended lives, brought business activity to a halt for months and ravaged the global economy.

FY21 has been a year of high volatility. The first half was hit hard by the COVID-19 lockdown but the second half saw a gradual improvement as cases dropped, the economy reopened and measures by the government and the central bank pumped in high liquidity, which led to positivity in the market.

Almost all the sectors witnessed a rebound after a sharp selloff in March 2020, however, metals, auto and IT outperformed by strong margins.

In FY21, so far, Nifty has jumped 73 percent while Sensex has logged a gain of 70 percent even as COVID-19 continues to persist as a major threat. Their winning run may continue in FY22, with economic improvement and wide-scale vaccination.