Facebook Pixel Code

FMCG, pharma funds set the tone

Emerge as top sectoral performers with returns of 15% and 12.66%;Infra funds in the red

Fast-moving consumer goods (FMCG) and pharma-focussed funds have emerged as top sectoral performers in the past one year, giving average one-year category returns of 15% and 12.66%, respectively, according to data collated from

Value Research.

Others sectoral funds fared abysmally in comparison, with the technology and banking sector funds giving returns of 4.04% and 1.71%, respectively, and those focussed on the infra sector showing a negative return of 5%.

The difference in returns is even more glaring if a six-month period is considered. Pharma and FMCG funds have given positive returns of 7% and 10%, respectively. This compares with 4.45% returns for technology funds and negative returns of 14.41% and 16.72% for banking and infra sector funds.

?These two sectors have been showing clear earnings visibility vis-?-vis other sectors. Both FMCG and pharma companies have been showing healthy results on a quarterly basis,? said Kaushik Dani, fund manager, Peerless Mutual Fund.

ICICI Prudential FMCG Direct has been the top-performing fund in the last three- and six-month period with gains of 15.41% and 10.21%, respectively. For a one-year period, SBI FMCG has outperformed its peers with a return of 32.76%.

Among pharma schemes, UTI Pharma & Healthcare has been the top performer with an 11% return for the three-month period. Over a slightly longer duration of six months, SBI Pharma Direct has raked in returns of 10.31% and given returns of 31% during the year.

Market observers feel that while a depreciating rupee could escalate import costs for other sectors, export-oriented sectors like pharma stand to gain from the domestic currency?s near 10% fall over the last three months.

?A strengthening dollar is a big positive for pharma companies as most of their revenues are in dollars. In the FMCG sector, while valuations are expensive, the stocks continue to scale new heights. Broadly, sectors linked with consumer spending are expected to perform well,? said an analyst with a Mumbai-based AMC.

While technology, infrastructure and banking & finance sector funds have underperformed the Sensex in the last three months, only FMCG and pharma-linked schemes have managed to outpace the Bombay Stock Exchange-benchmark index, which posted a near 5% gain during this period.

Get live Share Market updates, Stock Market Quotes, and the latest India News and business news on Financial Express. Download the Financial Express App for the latest finance news.

First published on: 09-07-2013 at 03:35 IST
Market Data
Market Data
Today’s Most Popular Stories ×