Top Five Worst Performing S&P BSE Sectoral Indices YTD

In our previous article, we had covered the best performing sectoral indices since January 1, 2013 among the 12 sectoral indices. In this line, in our present article we are covering the worst performing sectoral indices since January 1, 2013 till 14th March 2014.
 
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) (1st January, 2013 to 10th March, 2014).
• The below table is sorted based on the growth shown by the indices in the considered period.

S&P BSE REALTY : Real estate index is the worst performer among the 12 sectoral indices. The index dropped by 36% since 1st January, 2013. The sector is bleeding due to various reasons like high debt burden, higher labour & material cost and a subdued demand from customers. The realty companies are exhausted by paying higher interest cost on account of increased working capital requirement. All this has led to poor performance of the sector. However, there is some recovery since announcement of general election in India. (Please read) The top five companies in this index include DLF, Unitech, Oberoi Realty, Sobha Developers and Prestige Estates Projects.

S&P BSE CONSUMER DURABLES : During the festive season, which is considered to be the best period for consumer durable sector, there was not much demand for most of the consumer durable products. Also, the hike in steel prices (major raw material) increased the pain of this sector and hence led to a slowdown in the past couple of quarters. The index contracted by 21.5% in the said period. (Read more) Based on the assigned weightage, the top five companies are Titan Co, Videocon Industries, Rajesh Exports, Blue Star and Bajaj Electricals.

S&P BSE METAL : The metal sector is bleeding due to the lower demand during longest prevailing economic slowdown coupled with higher costs of power (it’s one of the major input material). Although steel companies have shown some improvement in the past couple of months, other metals like aluminium, zinc, copper has showed a slowdown. The metal index contracted by 21% since 1st January, 2013. The higher weightage given to the companies are, Tata Steel, Sesa Sterlite, Coal India, Hindalco Industries and JSW Energy.

S&P BSE POWER : The demand for power remained sluggish due to the subdued GDP growth. In addition to the lower demand, the sector is also facing a huge debt burden as companies have taken higher debt for setting up new power plants. Along with this, the power companies are also struggling with the costlier fuel supplies of coal and gas, which has widened the losses of companies. NTPC, Power Grid Corp of India, BHEL, Tata Power Co. and Siemens India are the top five companies under the power index.

S&P BSE BANKEX : The deceleration in the Indian economy has largely impacted the repaying capacity of the borrowers. This in turn has led to higher provisioning and deterioration in the asset quality of banks. The banks non-performing assets have increased on a continuous basis, especially the public sector banks. The five companies covered under this index are HDFC Bank, ICICI Bank, SBI, Axis Bank and Kotak Mahindra Bank.