Top Five Best Performing S&P BSE Sectoral Index Since January 1, 2013

Indian Capital markets ranks amongst a few emerging markets in the world which provides length and breadth of investments to the international investors. Just to put it in perspective, there are 12 broad sectoral indices and even a large number of subsets to invest in. To name a few S&P BSE Sectoral Index consists of Auto, Banks, Consumer Durables, Capital goods, FMCG, Healthcare, IT, Metal, Oil & Gas, Power, Realty and Technology. If we take a look at the current market levels, the indices have actually moved into a new orbit. The reason is quite clear, that is the FIIs have pumped in significant amount of money into the Indian markets. It was no surprise then, that the S&P BSE Sensex index touched the all time high level (till date) of 22023.98 on 10 March, 2014. 

Here we throw some light on the indices which have outperformed others from 1 January, 2013 till 10 March, 2014 and helped the Sensex to touch new highs. 

To arrive at the table we have used the below mentioned filters:

• We have considered 12 S&P BSE Sectoral indices.
• The time period considered is YTD (Year To Date) (January 1, 2013 to March 10, 2014).
• The below table is sorted based on the growth shown by the indices in the considered period.

S&P BSE TECK : As the Tech sector index has majority weight-age from IT sector (79.62%) stock, it is the second largest gainer on YTD basis backed by all the above reasons. The other sectors in the index are Telecommunication and Media & Publishing. The top five scripts given higher weightings in this index are Infosys, TCS, Wipro, HCL Technologies and Bharti Airtel. This index gave a return of 48% during the considered period.

S&P BSE IT : This is the sector earns its major revenue chunk from the US and European countries. The improved economic conditions in both of these major export markets have started building up the IT player’s order book. This has boosted the customer sentiment and led to an increase in discretionary expenses in these markets (US and Europe). So considering these factors it is not surprising that IT sector index is at the top position and has given a return of 63% YTD. The top five higher weight-age stocks covered under this index are Infosys, TCS, Wipro, HCL and Tech Mahindra.

S&P BSE HEALTHCARE : The Healthcare index which covers the major pharmaceutical stocks in India has showed a growth of 25% on YTD basis. The US markets (largest revenue driver for pharma sector) remains the main growth driver for the companies in this sector. Apart from this, other markets such as CIS and Latin America also witnessed better growth which led to improve the overall sector growth. In addition, the pharma companies have done well on the domestic front too. Sun Pharmaceutical Industries, Dr. Reddy's Laboratories, Lupin, Cipla and GlaxoSmithKline Pharmaceutical are the top five highest weight-age companies in this index.

S&P BSE AUTO : This sector has given a return of 11% YTD. Although the entire auto sector in India is facing a slowdown due to lower customer sentiment, however the three wheeler and automobile batteries segment has witnessed a healthy growth. Backed by the increased export of companies such as Bajaj Auto, Maruti Suzuki etc; has lifted the sectors index growth. The major stocks in this index include Bajaj Auto, Bosch, Cummins India, Exide Industries, Hero MotoCorp.

S&P BSE FMCG : FMCG sector has showed a good growth in the past few quarters. The main parameter which has boosted the overall sector’s growth is the increase in volume sales. The increase in disposable income of consumers has led to a lift in the volume growth. FMCG index showed a growth of 11% YTD. The major five stocks which are covered under this index are ITC, Hindustan Unilever, United Spirits, Nestle India and Dabur India.