In 2020, on a year-to-date basis (until Tuesday), the S&P BSE 500 index has risen by 16%. Among the sectors, BSE Oil & Gas and Bankex indices have emerged as the worst performers in 2020, declining by about 4.3% and 2%, respectively. Earnings visibility has been low for oil and gas firms, primarily due to volatile crude oil prices and weak refining margins. While crude oil prices have recovered from the lows in April, further increase in prices remains uncertain and would depend on global economic recovery. Analysts reckon that spreads (maturity or credit spreads) are still at very high levels, suggesting that banks are still uncomfortable to lend.

Source: Mint December 30, 2020 12:53 UTC