At 2022 lows: Auto stocks pick up speed, tech on collision course

Meanwhile, IT stocks dominated the worst-performing list, with Tech Mahindra and Wipro dropping nearly 20 per cent apiece

The Sensex on Thursday made a fresh 2022 low on a closing basis, while the Nifty50 index logged its 2022 low last week, when it closed below the previous 2022 low of 15,863, made on March 7. 

While the Nifty is at the same level it was over two months ago, stock prices of the underlying 50 components have changed drastically. 

The automotive (auto) pack emerged a clear winner, while information technology (IT) stocks saw huge drawdowns. Five of the 11 best-performing Nifty50 stocks between March 7 and May 19 were auto companies. Mahindra & Mahindra topped the list, with 28 per cent gains as a consequence of robust tractor sales.

IT stocks dominated the worst-performing list, with Tech Mahindra and Wipro dropping nearly 20 per cent apiece. “Smart money plays contrarian. In March, there was so much negativity around the auto sector due to headwinds, such as semiconductor shortage and oil price flare-up.  On the other hand, there was so much optimism around IT stocks. But margin pressure, high attrition rate, and increase in salaries have weighed on the performance of technology companies,” says independent market analyst Ajay Bodke.